Facsimile Machines; Larsen & Toubro Limited, Madras

Abstract

This project was undertaken for Larsen & Toubro Limited who had entered the facsimile market in September 1992. Last year, following a reduction in import duty, many companies had started dealing in facsimile machines and its demand had been growing steadily. The objective of this market research project was to estimate the demand and to study other characteristics of the market like customer profile, buyer behavior, factors affecting demand, market segments and competitors. An advertisement study, a literature survey and a dealer’s survey were conducted to achieve the above objectives. The findings suggested that the market was in a fast growth stage and an almost f00 percent increase in demand was expected next year. Along with this it was found that a further reduction in prices and increase in telephone lines would increase the above demand. While purchasing facsimile machines, price again was considered the most important factor. But it was expected in the coming years that customers would slowly realize the importance of after sales service. In future therefore the service commitment of the companies would become a deciding factor during purchases. Based on the above findings it has been recommended that reducing prices by Rs 3000/- and increasing the effectiveness of the distribution network would certainly help Larsen & Toubro to achieve a greater share in this facsimile market.