CHAPTER-1

INDUSTRY PROFILE

1.1 HISTORY OF ELECTRICAL INDUSTRY:

Electricity is one of the most necessary items of living. Today we
cannot imagine anything without electricity. It is required to perform
day-today activities. Electricity is useful in lighting, fan, computers,
train etc. It is important and so important are the conductors. The
Conductors are those which allow current to pass through them.
These are the points which regulate the flow of electricity. These are
also called electrical equipments and accessories or electrical
products.
ORIGIN OF ELECTRICAL INDUSTRY:
The starting point of electrical industries is the great invention of
electrical bulb in 1876 by Thomas Alva Edison. This invention made
the world to know the power of electricity, and these helped for the
invention of many other electrical items like fans, lightings, wires and
cables, meters and so on. Electrical industry is one of the most
developed industry and many new inventions are yet in the induction
stage. General Electrical (GE) is the largest manufacturer of
electrical items and Anchor is the largest manufacturer of switches in
the world.
1.2.1 ELECTRICAL INDUSTRY IN INDIA:
First electric industry in India was KIRLOSKAR ELECTRIC
COMPANY PVT.LTD. Electricity is one of the most necessary items
of living. Today we cannot imagine anything without electricity. It is
required to perform day-today activities. Electricity is useful in
lighting, fan, computers, train etc. It is important and so important
are the conductors. The Conductors are those which allow current
to pass through them. These are the points which regulate the flow
2

of electricity. These are also called electrical equipments and

accessories or electrical products. Electrical industry has the history
of more than 50 years in India. In 1950s the distribution of electricity
was confined to a limited area. Only big cities have the power plants
and the level of electrical markets. In 1956 seeing big opportunities
in this market, Finolex group started the wire coil production and
gained market by introducing multi stand cables for house wiring. At
the beginning only single copper wire was used for transmission of
current which was changed in modern stage to leaded copper wire.
Now there are different varieties of wire coils and other materials
available relating to electricity and more than 300 firms and
companies producing wire coils with different names.
When electricity was first introduced in India, the black coloured
tumbler switch with porcelain base dominated the Indian premises.
This was during 1950s and 1960s when electricity was reaching
different parts of the country. There existed a high degree of
dissatisfaction about these switches, as they were hard to operate
and lacked in aesthetics. These tumbler switches were installed on
wooden surface mounting box and wiring was done with the help of
batten strips (Patti).It also offers you the flexibility of adding or
removing functions to adapt to your changing needs. For example,
you could easily replace a 6A with a 16A switch or replace one two
modular socket with two single modular switches.
The latest trend in modular switches is that of a smooth scoreless
appearance. Some companies are even offering a complete range
of wiring solutions that include switches; trucking and VDI (Voice
Data Image) structured cabling system. Gradually the Indian switch
market is upgrading to modular switches.In additions to switches and
wire coils, there are a number of items which helps in the smooth
3

running and efficient usage of electricity and power. The big names
in Indian market if electrical products manufacturer are:Finolex - Specialist in wire and cables.
Havells - energy meters.
MDS - Miniature circuit breakers
Philips - Manufacturer of lighting and luminary items.
Anchor - manufacturer in switches and accessories.
These are serving Indian Electrical Industry for more than four
decades and their markets are enlarged to foreign countries also.

1.2.2 GROWTH OF INDUSTRY IN INDIA:

Indian electrical industry has registered about 30% growth in the
year 2011 from Jan mar. It has registered a growth of 15 percent in
2010-2011 (5.73 percent in 2009-2010). As compared to the same
period for the year 2005-06.
The well conceived APDRP programme and passing of Electricity
Act 2003 have provided a ray of hope to the industry. Almost all
sectors of electrical industry are indicating growth. Product like
meter shows technology shift, as there is more demand for static
meter than conventional electromagnetic meter.
The general buoyancy in the Indian Economy would then create a
demand for electrical products through growth of general industrial
and economic development. From the experiences of the past few
years, it can be confidently said that the Indian industry has faced
the critical challenges well and survived in the most difficult times. In
current favourable market scenario today, the electrical industry can
certainly look forward for growth.
4

1.2.3. GROWTH OF ELECTRICAL INDUSTRY IN A.P :

After the evolution of electrical industry in Andhra Pradesh, the
business of electrical goods has increased at a very fast pace. The
electrical market has developed a lot in the past 15 years. Previously
there were no advertisements and promotion media available. The
only media then available was personal selling. The sales
representative of the company used to go to the firms in cities and
villages and collect the payments and orders. But now with the
advent of modern technology, distribution of electrical goods has
become easier. Today companies invest a fair amount of time and
money on advertisement and thus this promotes the growth of
electrical industry.
Industrial sector registered a growth of 9.6% in the first eight months
of the current year (April-November) 2009-10, against 5.3% in the
corresponding period of last year. Manufacturing sector recorded a
growth of 8.7% in April-November 2009-10, against 4.2% in the
corresponding period of last year. The mining and electricity sector
posted growth rates of 8.3% and 6.1% respectively during (AprilNovember) 2009-10 compared to 3.4% and 2.8% register during the
corresponding period last year.

1.3. PRESENT POSITION OF ELECTRICAL INDUSTRY:

The domestic market in India is itself large, and one must firstly
satisfy this market with products that meet international quality
standards. With increasing globalization, every international player is
now operating in India, providing goods and services complying with
international quality. Once we deliver high quality products and
services within the domestic market, accessing the international
5

market for exports should not pose a serious challenge. The

Electrical/Electronics Industry in India is growing to its full potential in
the coming years and no doubt that India will soon come to be
recognized for quality products and services which in turn, will bring
this industry to a position of true leadership.
Indian electrical industry has grown because of government's thrust
on it and also due to overall economic growth. It has also reached a
stage where the industry has demonstrated its capabilities. The
industry has seen a growth of 20% and should continue at the same
level for the next few years.

1.4. PROBLEMS FACED BY THE ELECTRICAL INDUSTRIES :

Increase in price due to entry of new players in market.
Increase in manufacturing capacity by some original
manufactures.
Profitability and margin of the companies are adversely affected.
Poor distribution network in rural and semi urban areas.
Low awareness of consumer electronics products in rural India.
Increases in access to internet information.
Availability of wide range of choices.
Consumers have become quite smart.
They want the products which are easy to handle.
Good in quality and low price.
They want guarantee for the product they buy.
They want the product which can be used for long years.
They does not end on the sale of the product but continues till the
end of guarantee period.
6

1.5. GOVERNMENT POLICY TOWARDS ELECTRICAL INDUSTRY:

The sentiment of the industry is generally measured in terms of
research intensity, export & import capacity, expertise development,
infrastructure enhancement, and etc. The entire structure of the
industry is determined by the government policies & provisions
which should be conducive & optimal Indian government has
envisioned augmentation in the capacity of power generation would
be 86,500 MW in 12th plan period. A blueprint for investment is
drafted for the distribution & transmission segments with an eye to
domestic electricity plan and the Integrated Energy Policy.
Enforcement of Electricity Act 2003, National Electricity Policy-2005
and proposal of schemes like the APDRP(Accelerated Power
Development and Reform Program) & RGGVY (Rajiv Gandhi
Grameen Vidyutikaran Yojana) are meant for reducing loss that
takes place in transmission and distribution annually owing to
traditional & degraded lines, overloading of the 11 KV systems,
Distribution transformers and low tension lines and understanding
the intricacy of the various factors and its impact on the demand for
electrical equipment. IEEMA (Indian Electrical and Electronics
Manufacturers Association) opted Private company (PWC) Price
water house Coopers for evaluating the power sector development
program and its impact on electrical device & equipment industry.
Government of India offers central support for strengthening and
elevation of transmission and distribution network. 25% of the project
cost is provided as Additional central plan assistance in form of
Grant to the state utilities.

Indian Government keeps on pursuing the policy of self-reliance,

laying emphasis on building up indigenous ability, is also dedicated
to development and utilization of indigenous capabilities. It follows

the strong policy including encouragement of entrepreneurship,

expansion of domestic technology by virtue of significant investment
in R&D, taking in new technology, and scraping the regulatory
system. Government is also liberal to foreign investment and
technology collaboration in order to acquire higher technology,
maximize exports, and expand the production base.
1.6. FUTURE PROSPECT OF ELECTRICAL INDUSTRY:
The domestic market in India is itself large, and one must firstly
satisfy this market with products that meet international quality
standards. With increasing globalization, every international player is
now operating in India, providing goods and services complying with
international quality. Once we deliver high quality products and
services within the domestic market, accessing the international
market for exports should not pose a serious challenge. The
Electrical/Electronics Industry in India is growing to its full potential in
the coming years and no doubt that India will soon come to be
recognized for quality products and services which in turn, will bring
this industry to a position of true leadership. Indian electrical industry
has grown because of Governments thrust on it and also due to
overall economic growth. It has also reached a stage where the
industry has demonstrated its capabilities. The industry has seen a
growth of 20% and should continue at the same level for the next
few years.

1.7.1 MAJOR COMPANIES WITH THE MARKET SHARES:

Finolex

Specialist in wire and cables. It holds

35% of market share.

Honey well

Electric is a leading manufacturer and

Supplier of wiring it holds 81.24% of
market share.

Havells

Energy meters. It holds 61.56% of

market share.

Phillips

Manufacturer of lightning and luminary

items. It holds 93.34 of market share.

Crompton

leader of FANS in India over a

decade. It holds 40.92 of market share.

Anchor

Manufacturer in switches and

accessories. It holds 57% of market
Share.

1.7.2 LEADING ELECTRICAL COMPANIES:

United States, Japan and Korea are the top three electrical and
electronic goods manufacturing country in the world. The United
States of America is the largest producer of electronic product in the
world, contributing a total share of around 21%. Furthermore, it
occupies the largest market share with about 29% in the global
market. The worlds electrical & electronics market size was $1038.8
9

billion in 2006, an increase in 10.6% from last year. The industrial

electronics industry size was $651.3 billion, contributing around
62.7% of the total with regard to electronics parts and components
sector, the total market share was $282.7 billion i.e. 27.2% while
home electronics was 104.7 billion. Sony Corporation, Apple Inc.,

Sharp Corporation, Toshiba Corporation, Matsushita Electric

Industrial co. Ltd., LG Electronics Inc., Royal Philips Electronics N.V,
SANYO Electro co., Ltd. And Samsung Electronics co. Limited are
the key players of electrical and electronic products in the world
market.
1.8 SWOT ANALYSIS OF ELECTRICAL INDUSTRY:
Strengths:
A large area is of farmers who require specific electrical product
For irrigation and agriculture
Continuous growth development and innovation of technology
Core sector electrical industry enjoys monopoly for its market
demand, since there exists no other substitute for electricity.
Seasons effect is not same all over India. Each electrical
product is compensated by other product. For example, fans
and coolers are used summer while heaters are used in winter
Boom in distribution of electricity.
Weakness:
No uniform distribution of electricity in far end villages.
Increase in the cost of metals and raw materials
Consumers dont want to take risk to adopt new technology.
High transportation cost.
10

 Power intensive projects

Most of the industries are located in the areas where raw
material is easily available. So there is no development of
backward areas.

Opportunities:
Large potentials to distribute market within India, all parts to the
country.
Unsaturated demand for infrastructure.
Liberalization, privatization and globalization of many sectors in
the economy.
Boom in the market for electrical products.
Threats:
High input cost might blunt competitive edges.
Uneven demand factor.
China factor for global markets.
Decontrol on the prices of metals.

11

CHAPTER-2
COMPANY PROFILE

12

2.1 CORPORATE PROFILE:

The world is constantly changing. And GOLDMEDAL has kept
pace with this change through innovation and a commitment to
quality. At GOLDMEDAL, Quality is not just a practice but a way of
life.
GOLDMEDAL is a company that has redefined switch manufacturing
in India. We GOLDMEDAL believe in constant innovation and we are
the market leaders in switches and other home electrical
accessories.
Founded in the year 1990, we have always been in the forefront of
innovative home electrical solutions that have exceeded market
requirements and expectations.
Our innovations are the result of a strong R&D team which is further
complimented by an equally dedicated and capable product design
team. Our state-of-the-art manufacturing facilities spread across the
country ensure international quality of each and every product that
carries the GOLDMEDAL logo.
Our excellent sales team works closely with some of the countrys
leading architects, professional installers and also with our
distributors and regular dealers across India. All this is backed by
exceptional customer service and an after sales team that ensures
maximum customer satisfaction.

13

GOLDMEDAL is headquartered in Mumbai, the financial capital of

India.
BELIEF:
At GOLDMEDAL we believe in Quality. This is reflected right from
the way we function as a team, to the end product that reaches our
customers. Being responsible by using the right eco friendly raw
materials, to the precision in our manufacturing processes. This is
the foundation that we have built our entire business ethics upon.

2.2 HISTORY OF GOLDMEDAL:

Enduringly reliable, a combination of style, elegance and
beauty, consistently bench-marked to the most stringent standards,
aesthetically crafted, and yet created with lasting values in mind.
These are a few essential hallmarks that distinguish Gold Medal in
electric field.
FOUNDER: Mr. OTMAL JAIN
Mr. Otmal Jain established an electrical company with the brand
name Gold Medal. It was their visionary zeal that triggered off a
major revolution that transformed an ordinary firm into one of the
leading manufacturer of electrical products.
CHAIRMAN: Mr. JOGRAJ JAIN

14

Mr. Jograj Jain is the Chairman of Gold Medal. Under his leadership,
Gold Medal products were diversified from south base to all over the
country.
DIRECTOR: Mr. PRAVEEN JAIN
MARKETING EXECUTIVES:
Mr. ANIL JAIN
Mr. BHIMCHAND JAIN
GOLDMEDAL is an Indian company leading the international scene
of

the

high

quality

electric

and

electronic

equipment

manufacturers.Founded in 1990 the Company has always been in

the vanguard of innovative solutions in line with the market
requirements and has constantly improved its product range and the
technology of its production units.
The research and development of new solutions, the design and
accurate manufacture of the components, including the assembly
and the efficient sale organization allow the GOLDMEDAL trademark to be offered to Installers, Engineers and Architects, as a
functional and appropriate response to the evolving domestic and
industrial installation requirements.
The close collaboration with professional Installer and Distributors
paves the way of working in any aspect, improving the common
effort to guarantee the best reliability of the product for the complete
satisfaction of the end Customer.

15

The Company headquarters are in Mumbai, in the province of

Maharashtra, where the General Management are located together
with the other departments: Accounting, Sales and Marketing, R&D,
Logistics and Production. Altogether, the employees, & the sales
network include, before and after-sales technical service, all highly
skilled and trained.
2.3 VISION & MISSION :
VISION:
Cables, wires and switches to be the Major Instrument of
strengthening the construction and building activities and making
them available safe to its customer available safe.
MISSION:
Prosperity through technical innovations and Customer orientation
with specific focus on Quality and cost.
GOLD MEDALs mission is to be leading, global, customerfocused, innovative, and low cost provider of its services through
distribution channels of the clients preference in markets where
GOLD MEDAL can create value.
2.4 OBJECTIVES:
GOLDMEDAL switches and accessories are known for its
functionality, elegance and durability. Customer care is their core
philosophy. Dealer satisfaction is also given equal importance.

16

CORPORATE OBJECTIVES:
To increase profitability of the firm.
Achieving co-ordination among various programs in the district to
optimize resource utilization.
To create value for customer with a multi approach.
To lower the cost base further.
To satisfy customer needs by providing
CORPORATE STRATEGY:
1. To increase share in existing marketable surplus.
2. To survive and grow in the emerging competitive environment
there would be more delegation of work across the organization
calling for accountability through well-defined parameters.
3. Marketing

in

the

district

will

be

intensified

for

better

remuneration, privatizing beyond department level.

4. Productivity improvement by corporate restructuring with change
in managerial system to make people more system dependent
rather than individual dependent.
2.5.1 PRODUCT PROFILE OF GOLDMEDAL :
1. Switches:
The switches category is divided into four types.
a). Piano switches or ordinary switches: The piano switches had
operating knobs similar to piano buttons. These switches are
mounted with the help of two screws on the top and bottom.

17

b). Mini modular switches: These switches are with some

adjustments on the surface. Different colour plates can be fitted on
the surface area. There is at least 32 colours in this series of Gold
medal. This series is called gzifa
c). Image series: These are ready to use switches. There is no
need to cut the boards or use xylem sheets. These come in standard
sizes and number which we require.
2. Wire coils:
a). House wiring: House wiring cables are those which are used in
the domestic purposes that are for houses and institutions. The
house wiring consists of Multi-strand cables which consist of wires
with different nomination. There are a number of wires of same
diameter for one size. The category can be classified on the basis of
cross sectional areas of conductor like 1sq.mm, 1.5sq.mm, 2sq.mm,
2.5sqmm and 4sq.mm the conductor is copper.
b). Service wire: The service wire is referred to as the wire which
uses aluminium conductors. These are generally three wires or
seven wires in these coils but the diameter of each wire will be same
for one category and differ from other category.
C). Submersible cable: These cables are used in the submersible
motors. These consist of three wires of copper bunched into one,
covered with polyvinyl carbonate (PVC).

18

3. MCB and DBS:

MCB means miniature circuit breakers; these are helpful to stop the
excess flow of voltage. These are the protectors against overloads
and circuit.
DBs are the distribution boxes into which the MCBs are kept. The
storing capacity will vary according to the requirements.
4. Switch gear and fuse Units:
These are placed to protect against the heavy loads and flow of
currents. These were silver cadium plated contacts, Epoxy based
powder coating confirmed to Is: 4064/1967.
5. Door chimes:
Door chimes or musical bells come under different varieties and
sizes. There are two types of door bells, one type is those which will
work only in present of current called as A/c bells. The other type
works even in the absence of current with the help of batteries called
as A/c and d/c.
6. Auxiliaries:
Auxiliaries are those things or small items which are required along
with the other items. They are metal boxes, transformers, sockets,
lighting & luminaries, pin plug top etc.
7. CFC:
These are lamps used for house purpose. There is a low current
consumption in it.

19

NEW PRODUCTS OF GOLDMEDAL LAUNCH RECENTLY:

G-MAGIC
At GOLDMEDAL we believe in Quality. This is reflected right from
the way we function as a team, to the end product that reaches our
customers. From being responsible by using the right eco friendly
raw materials, to the precision in our manufacturing processes. From
customer satisfaction to providing the right environment for our
employees. This is the foundation that we have built our entire
business ethics upon.
FOUR FIVE
Four Five has been designed for the four walls while appealing to
the five senses. It appeals to our desires, with over 200 different
functions to choose from. It provides a wealth of choice with 5
premium materials, accessories in 3 chromatic finishes and over 110
colour options. Brace yourself to stir up your senses and make a
home that emanates exclusivity and your personal touch. After all,
your home is an extension of no one else but you.
Our products range includes:
GOLDMEDAL Magic... Experience the difference
Euro Switch range... Redefining Standards
Gold Medal range... To enhance residential environment
6 AMP. Cub Switch / Indicator
6 AMP. Capsule Switch / Indicator
6 AMP. Plus Switch / Indicator
6 AMP. Mini Sumo Switch / Indicator
6 AMP. Neo Deluxe Switch / Indicator
6 AMP. Socket
20

Kit-Kat Fuse
6 AMP. Darling Switch / Indicator
6 AMP. Mast Switch / Indicator
6 AMP. Wa-Wah Switch / Indicator
6 AMP Glamour Switch / Indicator
Darling 6 AMP. Soc., T.V. Tel-Jack & Tel. Set
6 AMP. S.S.Combined
16 AMP. Switch
6 & 16 AMP. Socket
Cub & Capsule 3-IN-1
Cub & Capsule 5-IN-1
32 AMP. Delux/Cub D.P.Switch
Darling Kit-Kit
Darling Electronic Dimmer
Darling 16A Switch/6 & 16 Socket with Shutter
Wa-Wah 16 A. Switch/6 & 16 A. Socket
T.V.Antenna Soc., Tel. Set. Tel. Jack & Tel. Converter
Electronic Dimmer
Skirt Lamp Holder
Ceiling Rose, Pendent Holder & Adaptor
3 Pin Plug-Top
Wa-Wah 3-IN-1 & 5-IN-1
Darling 3-IN-1 & 5-IN-1 Shutter
Darling 32 AMP. D.P.
Darling Skirt Lamp Holder
Roter Holder/F.F.Adaptor
3 Pin Plug-Top
2 Pin top, Male Female, Multi-Plug, Iron Connector, Transformer &
Night Lamp
21

16A Surface Pilot Switch, Socket, Round Socket & Top

6 AMP. Sumo Switch / Indicator
6 AMP. Sumo Cap Switch / Indicator
Flex Box
Tube-Light Starter
Bell Push, Buzzer & Ding Dong Bell
Cuckoo Bird & Parrot Chime
6 AMP. Sumo Socket
Sumo Kit-Kat Fuse
16 A. Sumo Switch / 6 & 16A. Uni. Socket
Sumo Elec. Dimmer
Sumo Skirt Lamp Holder
Electronic Musical Bell
Surface Mounting Junction Box
Gold Medal PVC Insulated Cables & Wires... Cables that provide
extra measure of safety. The complete wiring system.
Gold Medal Switch Gears... The perfect power control.
Gold Medal Fuse Units... Connecting safety to electricity.
Gold Medal Change Over Switches... The perfect power control.
2.5.2 PRICING:
ECONOMIST DEFINES "Price as the exchange value of a product
or services always expressed in money." To the buyers price is a
package of expectation and satisfaction. Price is not only the
objective criteria for the consumers for comparing alternative items
and making the final choice.

22

IMPORTANT OF PRICE IN GOLDMEDAL:

THE PRICING OBJECTIVES:
Profit Oriented:
To achieve a target return on investment,
To maximize Profits.
To reduce wastage.
Sales Promotion:
In market shares.
Maintaining market Growth in sales
Growth shares.
2.5.3 PROMOTIONAL ACTIVITES:
Sales promotion

15%

Personal selling

4%

Publicity

16%

Advertising

65%

THE PROMOTION EFFORTS UNDERTAKEN ARE:

Placing billboards on the roadsides and wall paintings.
placing stalls in the exhibition in order to attract customers
Giving gift items like bags, caps, t-shirts, key chains etc to
dealers to encourage them to increase their performance in
distributing the goods. The gifts are also given to consumers to
increase their buying.
Other methods are discounts, cash discounts, schemes and free
samples to customers.
23

 Some more methods like advertising the brand during the

meeting of builders, electricians and contractors are also taken.
2.5.4 PLACE OF GOLDMEDAL PVT LTD
DEFINITION:
A distribution channel consists of the set of people and firms
involved in the transfer title; product moves from producer to ultimate
consumer or business use."
CHANNELS & MODE:
The company's marketing territory at present comprises the state of
Andhra Pradesh, Orissa, Madhya Pradesh, Tamil Nadu, Kerala.
THE DISTRIBUTION CHANNELS ARE::
1. Trade
Small (retail) Dealers.
Company Depot.
Consignment Sales.
2. Non-Trade- Direct consumers
Institutions.
Builders.
Government.
MODES OF DELIVERY:
Delivery from the Plant at Mumbai.
Delivery from the depot Vijayawada.
24

TYPES OF DISTRIBUTION CHANNELS:

1.

Authorized dealer network.

2.

Casual dealers.

3.

Consignment sales.

4.

Builders and Institution.

5.

Suppliers to Government, Department.

2.6 AWARDS AND PRIZES:

Thursday, April 8, 2010
Goldmedal Wins 2nd Prize for Best Stall - Again!
The Goldmedal Stall (No. 84) won the 2nd prize for best stall at the
Inside Outside Mega Show 2010 held in February. The first prize
went to a landscaping company (Stall No. 32) while the third prize
went to Anchor switches.
The Goldmedal Stall saw a record number of visitors - something
that was not a surprise after the response we saw at Elecrama 2010.
What was heartening about this, however, was that while Elecrama
catered to the business class, the visitors at Inside Outside belonged
to a totally different category: interior designers, architects, the
house owner, and other end consumers. While the biggest hit were
the Memorio switches, which almost everyone was keen on having
in their homes, the remote switches and systems got as many
people enquiring about them. Almost everyone wanted to know how
much it would cost to have something like that in their homes/offices
- which showed that given the right price there will be enough takers
for these products. As we had priced these at really affordable rates,
we had a healthy number of orders right at the stall.
This is just the beginning for the Curve range. Goldmedal will be
participating in many more events to exhibit this range of Modular
25

switches and Home Automation Systems. Unfortunately we can't

reveal the dates right here. Keep reading this blog for updates.
GOLDMEDAL

awarded the 2010 Force of Ideas Award for

Strategic.
GOLDMEDAL was awarded 1st in JITO (Jain International Trade
Organisation) 2011
GOLDMEDAL was awarded 3rd prize in ELECTICA 2010.

INTERNATIONAL CERTIFICATIONS:
Our constant care in terms of quality and design has seen us pick up
several national and international accolades.

ISO

9001:2008,

BVQI-London

CE (European

(Bureau

Standards)

Veritas Quality International)

ANAB-USA

(ANSI-ASQ

CSA

National Accreditation Board

(Canadian

like

Standards

American

Standards

National

Institute

and

Association)

American
Society of Quality)
NABCB
Accreditation

(National
Board

Certification Bodies)

for

IEC

60669-

1(International
Electro
Technical
Commission)

26

TUV

Proof

that

(Technischerberwachungs-

GOLDMEDAL

Verein)

sets

the

highest
standards in
design

and

quality.
ISI

(Bureau

of

Indian

Standards)
The great care GOLDMEDAL devotes to manage and control the
business process - from design to production, from administration to
logistics has awarded us the Quality System Certification ISO
9001:2000,
Quality

certification from BVQI-London

International)

, ANAB-USA

(Bureau VERITAS

(ANSI-ASQ

National

Accreditation Board like American National Standards Institute and

American Society of Quality), NABCB (National Accreditation Board
for Certification Bodies). Plus certifications by TUV ( Technischer
berwachungs -Verein),ISI (Bureau of Indian standards),
(European
Association)

CE

standards), CSA (Canadian standards

and IEC 60669-1(International

Electro

Technical

Commission), not only guarantee the quality of our products but also
inspire us to set higher standards of quality through innovation &
advanced R & D activities, assuring optimum consumer satisfaction
with all safety regulations. We consider
it particularly important to guarantee our customers a continuous
standard of qualitative excellence, maintained with rigorous effort
and testified by an official certificate recognized all over the world.

27

GM MODULAR PVT LTD.

"GOLD MEDAL... SYMBOL OF TRUST"
Superior Quality...

One Commitment...

One Name

We at Gold Medal driven by sense of commitment and creativity,

strive to better our product ranges from time to time thereby creating
an unforgettable impression in the minds of those who have used
our products. With a very strong dealership network spanning the
entire country, Gold Medal is within your reach. See our product
range....... you will not settle for anything else.

28

2.7 ORGANISATIONAL STRUCTURE OF GOLDMEDAL

CHAIR MAN

MANAGING DIRECTOR

DIRECTOR

FINANCE

PRODUCTION

HUMAN

MARKETING

DEPARTMENT

DEPARTMENT

RESOURCE

DEPARTMENT

DEPARTMENT

FINANCE

PRODUCTION

HUMAN

MARKETING

MANAGER

MANAGER

RESOURCE

MANAGER

MANAGER

29

CHAPTER-3
RESEARCH
METHODOLOGY

30

3.1 NEED FOR THE STUDY:

Every business organization does promotion in one sense
or the other. Promotion is one area which needs continuous reviews,
appraisal and formation of appropriate strategies, according to the
promotion trends and economic conditions.
The study of promotion mix helps to know how the product
is promoted to sell it. Which way of promotion is effective in
promoting the product. Every business organization need to do
promotion for selling its product.

3.2 OBJECTIVES OF THE STUDY:

The main objective for the study is
1. To have an overview on Goldmedal Pvt ltd
2. To know whether promotional activities are successful in
attracting the customers.
3. To know the cost incurred by the company to sell the
products.
4. To know the effective way of promotion.
5. Understand the major elements of the promotion mix.
6. Understand the role of promotion in the marketing mix

31

3.3 METHODOLOGY:
3.3.1. Sources of data:
A research work is carried out on the management of
Goldmedal. The information is collected through questionnaire. The
research methodology consists of two sources.
They are:
1. Primary data
2. Secondary data
1. PRIMARY DATA:
The primary data was collected by me through direct
contact and interaction with the management of the firm. For this
purpose, I have used Questionnaire as an instrument to collect the
primary data i.e. to know about the impact of all the elements of
promotion mix
2. SECONDARY DATA:
Data which has already collected for some other
purpose and which can be used for are necessity is known as
secondary data. The data collected from the company's records,
business weeklies, magazines, internet etc., is known as secondary
data.
3.3.2. DATA COLLECTION METHODS ADOPTED:
The method of data collection was called STRUCTURED
PERSONAL INTERVIEW. The tool of data collection is
questionnaire.
32

QUESTIONNAIRE:
A series of question were prepared with due consideration
to relevant venture keeping in the mind the respondents time and
efforts. All care was given to see that question was simple, brief and
to the point. The entire questionnaire was designed with multiple
choices for facilitating easy selection of options by respondents.
INTERVIEW:
The other method adopted for collecting data was by
interviewing the managers and marketing members of the company to
know about the impact of promotion & even the different element of
promotion mix.
3.3.3 SAMPLING DETAILS:
Sampling area:
The survey was conducted in Vijayawada city of Andhra Pradesh.
Sampling size:
The research is based on the data received from 20 members (including
4 managers and 16 marketing members).
Sampling unit:
The managers and marketing members of Goldmedal Pvt Ltd in
Vijayawada are taken as a sampling unit
Sampling technique:
The nature of sampling for the study is simple random sampling

33

3.3.4 DATA ANALYSIS METHODS:

The following are the methods used for analysis during the
period of my study:
a. Percentage method
b. Graphical method
a. PERCENTAGE METHOD:
It refer to a special kind of ratio, percentage are used in
making comparison between two or more series of data.
Percentages are used to determine relationship between the series
of data. Finding the relative difference becomes easier through
percentage. It is expressed as:Percentage =

No. of respondent x 100

Total no of respondent

b. GRAPHICAL METHOD:
It refers to the presentation of data in the form of graphs. It
helps in easy understanding and comparison of series of data
3.4 PERIOD OF STUDY:
The study is carried out for a period of 45 days. It
commenced on 21 April 2012 and completed on 6 June 2012.

34

3.5 SCOPE OF THE STUDY:

The scope of study is confined to Vijayawada. The scope of study is
1. To know about the impact of promotion mix elements.
2. To know about the effective way of promotion.
3. To know the problems in promotion of the product.
4. To know which elements of promotion mix plays a vital role.

3.6 LIMITATIONS OF THE STUDY:

1. A period of 45 days is in no way enough to carry out a
proper research and come out with proper results.
2. The area of my study was restricted up to Vijayawada city
only.
3. It has been assumed that whatever response was obtained
from the respondents were true and best to their knowledge.
4. Confidential management by the management is another
limitation.
5. It is very difficult to get assistance from managers during the
project time as they are busy, they do not give much time to
interact.

35

CHAPTER 4
PROMOTION MIX AT
GOLDMEDAL PVT LTD

36

Goldmedal Pvt Ltd mainly depends on the elements

advertisement and sales promotion to promote their product. The
company started its campaign of promotion in urban areas and now
due to its effective promotional campaign it had created good
reputation and goodwill in the market. It is well known in the market
for its uniqueness of switches and accessories. The following are the
elements of promotion mix used by Goldmedal Pvt Ltd.

4.1 Advertising:
Goldmedal mainly depends on advertisement of its
product for its promotion. It believes in giving advertising in the
newspaper during festivals. Brouchers are distributed while
introducing of new product saying about the product. It advertises its
product through in store display which can be seen in the stores of
wholesalers and retailers selling Goldmedal product. The company
even advertise its product banner ads but in small proportion only.

4.2 personal selling:

Goldmedal depends very less on personal selling of its
product for its promotion as it has a very high demand of its product
and doesnt require following personal selling to sell its product. In
the start of its operations in the market the company use to follow
personal selling to make the people aware of the company and its
product through sales representatives and marketing intermediaries.

37

4.3 Sales Promotion:

Goldmedal in the start to create demand of its product in
the market it used sales promotion as a tool to promote the product
to the consumers and marketing intermediaries. The company
strongly believed in promoting its product through trade shows like
Elecrama and JITO, the company showcased its product in those
exhibitions and got a great response from the consumers who came
to watch the exhibition and was appreciated for its work and efforts.
The company also take part in electrical exhibitions and make the
people know more and more about its product. The company even
provide discount coupons in its product to encourage the retailers to
sell the products, it uses coupon system like writing certain about of
money on coupons and when the electrician uses the switches and
other product they collect the coupons and show to retailers and
collect the amount written on the coupons. The company provide
free gifts like caps, bags to its distributors and retailers for selling its
products.

4.4 Public Relations:

The company maintain its public relations with the people
through magazines and reports to the public giving information about
the product, it new launches etc. It even give its new launch
information to the people through television, it conduct seminars,
speeches for its distributors and retailers. The company even target
the electricians and conduct seminar for them making them know
about the product and its uniqueness.
38

The company gets promotion by its corporate image, it has a

very good image in the electrical market and so this image helps the
company for the promotion of its product, even sponsorship helps
the company to promote the company name, the company believes
in sponsorship in college events like Bemus, Magnova etc and in
religion events. So by sponsorship even the company make its
promotion.

39

CHAPTER 4
PROMOTION MIX
AT
GOLDMEDAL PVT LTD

40

1. Which is the best way of advertising the product?

a. Newspaper

b. Television

c. Brochures

d. Banners

Responses

No. of

Percentage of

Respondents
Newspaper
Television
Brouchers
Banners
Total

6
8
2
4
20

respondents
30%
40%
10%
20%
100%

Interpretation:
Among 20 marketing officials, 40% expressed that television is the best
way of advertising the product while 30% expressed that newspaper is the
best way of advertising while 20% of them say banners is best way of
advertising and 10% say brouchers is the best way of advertising.

41

2. Best newspaper to be used for advertising?

a. The Hindu

b. Deccan chronicle

c. Times of India
Responses

No. of

Percentage of

respondents

respondents

The Hindu
Deccan Chronicle
Times of India
Total

7
7
6
20

35%
35%
30%
100%

Interpretation:
Among the marketing officials, 35% says The Hindu and Deccan Chronicle
is the best newspaper which can be used for advertising while 30% says
Times of India is the best newspaper for advertising.

42

3. Do you think famous personality helps in advertising the product

effectively?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

12
8
20

Totals

60%
40%
100%

Interpretation:
Among 20 marketing officials, 60% of officials say that personality helps in
advertising the product and 40% of them no that personality doesnt help in
advertising the product.

43

4. Which way of advertising from internet you prefer?

a. Web banner

b. Pop-ups/Pop-under

c. Official websites
RESPONSES

NO.OF

Percentage of

Web banners
Pop-ups/Pop-under
Official web sites
Totals

RESPONDENTS Respondents
6
5
9
20

30%
25%
45%
100%

Interpretation:
Among 20 marketing officials, 45% of them expressed that official web
sites is best way of advertising in internet, while 30% of them expressed
that Web banners are best of advertising in internet and other 20% said popups/pop under is best for advertising in internet.

5. Which is best way of personal selling the product?

a. Sales presentations

b. Intermediary sales people

44

c. Telemarketing
RESPONSES

NO.OF

Sales presentations
Intermediary sales

RESPONDENTS Respondents
8
40%
7
35%

people
Telemarketing
Totals

Percentage of

5
20

25%
100%

Interpretation:
Among 20 marketing officials, 40% of them say sales presentation is best
for promoting the product, 35% says intermediary people are best for
promoting the product and 25% says that telemarketing is best for
promoting the product.

6. Does personal selling helps in maintaining regular communication with

present customers?
a. Yes

b. No

45

RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

13
7
20

Totals

65%
35%
100%

Interpretation:
Among 20 marketing officials, 65% of them say yes for personal selling
helping in regular communication with present customers while 35% of
them dont agree with it and say no to it.

7. Does personal selling process helps the company to inform the changes
in the product line to the customers?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of
46

RESPONDENTS
Yes
No

Respondents
16
4
20

Totals

80%
20%
100%

Interpretation:
Among 20 marketing officials, 80% of them say yes that personal selling
helps in informing customers about the changes in the product while on the
other hand 20% of them says no to it.

8. Does personal selling helps in removing the doubts from the minds of the
customers?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

47

Yes
No

16
4
20

Totals

80%
20%
100%

Interpretation:
Among 20 marketing officials, 80% of them say yes that personal selling
helps in clearing the doubts of the people about the product, while on the
other hand 20% of them say no to it.

9. Which is the best way of sales promotion of the product?

a. Coupons

b Contests

c Free gifts
RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Coupons

6
48

30%

Contests
Free gifts
Totals

3
11
20

15%
55%
100%

Interpretation:
Among 20 marketing officials, 55% of officials says free gifts is the best
way of sales promotion, 30% of them says coupons are best way of sales
promotion and the other 15% says contests are best way of sales promotion
of the product.

10. Sales promotion should be targeted to?

a. Marketing intermediateries

b. Direct

consumers
c. Both
RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Marketing

9
49

45%

Intermediateries
Direct consumers
Both
Totals

5
6
20

25%
30%
100%

Interpretation:
Among 20 marketing officials, 45% of them says that sales promotion
should be targeted to marketing intermediateries, while 30% says its should
be targeted to both marketing intermediateries and consumers and the other
25% of them says it should be targeted to direct consumers only.

11. What kind of incentives should the company mostly offer to its
distributors n dealers?
a. Free gifts

b. Holiday packages

c. Discounts
RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Free gifts
Holiday packages

6
8
50

30%
40%

Discounts
Totals

6
20

30%
100%

Interpretation:
Among 20 marketing officials, 40% of them say holiday packages should
be mostly offered to distributors and dealers while 30% of them say
discounts and free gifts should be mostly offered to distributors and dealers.

12. Do you think frequently use of sales promotion may have negative
impact on image of the company?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

18
2
20

Totals

51

90%
10%
100%

Interpretation:
Among 20 marketing officials, 90% of them says that frequent use of sales
promotion have negative impact on the image of the company and 10%
says no to it.

13. What will you prefer for promoting your product for public relation?
a. TV

b. Print media

c. Radio
RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Television
Print media
Radio
Totals

6
12
2
20
52

30%
60%
10%
100%

Interpretation:
Among 20 marketing officials, 60% says that print media is best for
maintaining public relation, while 30% says television and the other 10%
says that radio helps more in maintaining public relation.

14. Should there be any separate department established for the purpose of
carrying out publicity?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

12
8
20

Totals

53

60%
40%
100%

Interpretation:
Among 20 marketing officials, 60% of them say that yes there should be a
separate department for carring out publicity and 40% of them no to it.

15. Which is the most expensive way of promotion?

a. Advertising

b. Personal selling

c. Sales promotion
RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Advertising
Personal selling
Sales promotion
Totals

11
5
4
20

54

55%
25%
20%
100%

Interpretation:
Among 20 marketing officials, 55% of them say advertising is the
expensive way of promotion, 25% of them says personal selling is the
expensive way of promotion and 20% says sales promotion is the expensive
way of promotion.

16. What do you think which is the most effective way of promotion?
a. Advertising

b. Personal selling

c. Sales promotion

d. Publicity

RESPONSES

NO.OF

Percentage of

RESPONDENTS

Respondents

Advertising
Personal selling
Sales promotion
Publicity
Totals

8
3
4
5
20

55

40%
15%
20%
25%
100%

Interpretation:
Among 20 marketing officials, 40% of officials say advertising is the most
effective way of promotion, while 25% of them says publicity is most
effective way of promotion, 20% says sales promotion is the effective way
of promotion and other 15% says personal selling is effective way of
promotion.

17. Do you think promotion bring brand name to the company?

a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

16
4
20

Totals

56

80%
20%
100%

Interpretation:
Among 20 marketing officials, 80% says yes promotion bring brand name
to the company on the other hand 20% says no it doesnt.

18. Do you think promotions helps in bringing awareness of the product?

a. Yes

RESPONSES

b. No

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

18
2
20

Totals

57

90%
10%
100%

Interpretation:
Among 20 marketing officials, 90% of officials say that promotion brings
awareness of the product to the people and 10% says no to it.

19. Do promotion bring brand loyalty among the customers?

a. Yes

RESPONSES

b. No

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

14
6
20

Totals
58

70%
30%
100%

Interpretation:
Among 20 marketing officials, 70% of them say yes promotion brings
brand loyalty among the customers while 30% of them say no to it.

20. Should the company provide any promotional schemes to the

distributors for promoting the product?
a. Yes

RESPONSES

b. No

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

14
6
20

Totals

59

70%
30%
100%

Interpretation:
Among 20 marketing officials, 70% of them say yes company should
provide promotional schemes to the distributors for promoting the product
while 30% of them say no for promotional schemes for distributors.

21. Do you think image of the company helps in promotion of your

product?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

18
2
20

Totals

60

90%
10%
100%

Interpretation:
Among 20 marketing officials, 90% of officials say yes image of the
company helps in promoting the product and 10% of officials say no
company image doesnt help in promoting the product.

22. Is sponsorship helpful in promoting your company product?

a. Yes

RESPONSES

b. No

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

15
5
20

Totals

61

75%
25%
100%

Interpretation:
Among 20 marketing officials, 75% of them say yes sponsorship helps in
promotion of the product while on the other hand 25% of them say no
sponsorship doesnt help in any promotion of the product.

23. Do you think promotion of the product increase the sales of the
product?
a. Yes
RESPONSES

b. No
NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

20
0
20

Totals

62

100%
0%
100%

Interpretation:
All the 20 marketing officials i.e. 100% agree that promotion helps in
increasing the sales of the product.

24. Do you think labelling helps in promoting the product?

a. Yes

RESPONSES

b. No

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

15
5
20

Totals

63

75%
25%
100%

Interpretation:
Among 20 marketing officials, 75% of them says yes labelling helps in
promotion of the product while the other 25% says no it doesnt help in
promoting the product.

25. Do you think attending trade fairs helps in promoting the

companys product?
a. Yes

RESPONSES

b. No

NO.OF

Percentage of

RESPONDENTS

Respondents

Yes
No

12
8
20

Totals

64

60%
40%
100%

Interpretation:
Among 20 marketing officials, 60% agree that attending trade fairs helps in
promoting the product and 40% of them say no to it.

CHAPTER 6
65

FINDINGS
&
SUGGESTIONS

SUGGESTIONS

1. BEST WAY OF ADVERTISING THE PRODUCT :

It was found that television have great influence on consumer as it
seems to be the best way of advertising product than newspaper, broucher
and banner.
2. BEST NEWSPAPER FOR ADVERTISING :

66

It was found that both The Hindu and Deccan chronicle have equal
influence on advertisement through newspaper than Times of India
newspaper.
3. PERSONALITY IN ADVERTISING THE PRODUCT :
It was found that personality in advertising the product has great
influence on consumer to attract towards the product.
4. BEST WAY OF ADVERTISING FROM INTERNET:
It has been observed that company adopt mostly official web site
rather than web site as it has a great influence on consumer than pop
ups/pop under and web banner.
5. BEST WAY OF PERSONAL SELLING:
It was found that sales presentation is best way of selling the
product next to that is intermediary sales people which also influence on
consumers and next to it is telemarketing.

6. REGULAR COMMUNICATION WITH THE HELP OF

PERSONAL SELLING :
It was found that personal selling have influence in maintaining
regular communication with present consumers.
7. PERSONAL SELLING HELPS IN INFLUENCING THE
CHANGES IN THE PRODUCT:

67

It was observed that personal selling process have great influence

on the company to inform the changes in the product line to the
consumers.
8. PERSONAL SELLING HELPS IN CLEARING DOUBTS
ABOUT THE PRODUCT:
It was observed that personal selling process help to remove the
doubts from the mind of the consumers relating the company product and
services.
9. BEST WAY OF SALES PROMOTION OF THE PRODUCT:
It was observed that free gifts have great influence in sales
promotion than coupons and contest offer.
10. SALES PROMOTION:
It is observed that sales promotion is mostly targeted to marketing
intermediaries than direct consumers.
11. INCENTIVES FOR DISTRIBUTORS AND DEALERS:
It is observed that company mostly offer holiday packages to its
distributors and dealers than free gifts and discounts.

12. FREQUENT USE OF SALES PROMOTION AND ITS

NEGATIVE IMPACT:
It has been observed that company agree that frequently use of
sales promotion have a negative impact on company image.
13. MAINTAINING PUBLIC RELATION:

68

It has been observed that mostly use print media for promoting
product for public relation rather television and radio.
14. SEPARATE DEPARTMENT FOR CARRING OUT
PUBLIC RELATION:
It has been observed that majority say that there should be separate
department for publicity, some say no because they feel that why to
keep separate department for publicity as it can be made by
promotional strategies.
15. EXPENSIVE WAY OF PROMOTION:
It is observed that advertising is most expensive for promotion
rather than personal selling and sales promotion.
16. EFFECTIVE WAY OF PROMOTION:
It is observed that advertising is the most effective way of
promotion than personal selling, sales promotion and publicity.
17. PROMTION BRINGS BRAND NAME TO THE
COMPANY:
It is observed that most of the managers says promotion bring
brand name to company. While some says it doesnt effect on company

brand name, as quality of good provided by company bring brand name

of company not by promotion.

18. PROMOTION BRING AWARENESS ABOUT THE

PRODUCT:

69

It is observed that promotion helps in bringing awareness of the

product but some respondent says no as they think it all depend on
consumer how much they are interested to know about the product.
19. PROMOTION BRINGS LOYALTY TO THE
CONSUMERS:
It is observed that promotion bring loyalty in consumers but some
managers say no because they feel that loyalty depend on it services
and product not on promotion.
20. PROMOTIONAL SCHEME FOR PROMOTING THE
PRODUCT:
It has been observed that mostly company provide promotional
schemes to the distributors for promoting the product.
21. IMAGE OF THE COMPANY IN PROMOTING THE
PRODUCT:
It is observed that image of the company helps in promotion of the
product and some say it doesnt effect as they feel promotion is not
influenced by company name and it all depend on promotion policy.

22. SPONSORSHIP HELPS IN PROMOTION:

It is observed that sponsorship helps in promoting company and
some of them says no as they state that sponsorship always doesnt help
in promoting companys product.

70

23. PROMOTION HELPS IN INCREASING THE SALES OF

THE PRODUCT:
It is observed that promotion of the product increases the sales of
the company as the consumer gets to know about the companys
product and services.
24. LABELLING HELPS IN PROMOTING THE PRODUCT:
It is observed that labelling helps in promoting of the product as
the consumer find the labelling
25. ATTENDING FAIR TRADE HELPS IN PROMOTION OF
THE PRODUCT:

SUGGESTIONS

1. BEST WAY OF ADVERTISING THE PRODUCT :

71

72