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PROJECT REPORT

ON

BRAND PERCEPTION OF REFRIGERATORS WITH

SPECIAL REFERENCE TO LG, SAMSUNG AND

WHIRLPOOL

In partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted to Submitted by

Mrs. Taranjeet Kaur Khushdeep Kaur

Management Faculty University Roll No. 1106264

KHALSA INSTITUTE OF MANAGEMENT AND

TECHNOLOGY FOR WOMEN, CIVIL LINES, LUDHIANA

(2012-2013)


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DECLARATION

I hereby declare that report entitled BRAND PERCEPTION OF

REFRIGERATORSWITH SPECIAL REFERENCE TO LG, SAMSUNG AND

WHIRLPOOLof submitted in partial fulfillment of the requirement for the degree

of Bachelor of Business Administration of Punjab Technical University, Jalandhar

is my original work & has not been submitted for the aware of any other degree at

this university.

Place : Ludhiana Khushdeep Kaur

Date :


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ACKNOWLEDGEMENT

As I write this acknowledgement, I must mention that this is not just a formal

acknowledgement but also a sincere note of thanks and also regard from my side. I feel a

deep sense of gratitude and affection for the Management Faculty and Director Sir, Mr.

Vijay Asdhir, who helped and guided in this project.

I am thankful to Mrs. Taranjeet Kaur Project Guide, whose constant guidance had

given very valuable suggestion in completing my project successfully.

I feel immense pleasure to give the credit of my project work not only to one

individual as this work is integrated effort of all those who concerned with it.

In the end, I dedicate this effort of mine to those persons who are light of my life

my parents who have been behind every successful endeavor in my life.

Khushdeep Kaur


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PREFACE

In our two years degree program of BBA theresprovision for doing summer

training, after 5th semester. The essential purpose of this project is to given an

exposure and detailed outlook to the student of the practical concept, which they

already studied research. For this purpose, I was assigned the project for the

BRAND PERCEPTION OF REFRIGERATORSWITH SPECIAL REFERENCE TO LG,

SAMSUNG AND WHIRLPOOLIt is a matter of great privilege to get training in

Marketing of Whirlpool and their competitor.

The project lasted for a period of six weeks; it was informative, interesting

and inspiring.


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CONTENTS

Sr.

No.TITLE PAGE NO.

1. Introduction 1-56-102. Company Profile: Whirlpool

Introduction Core Competence Mission and Vision Whirlpool In India Values History Board Of Directors Awards and Recognition

6-2511-31

3. Company Profile: LG 26-2832-344. Company Profile: Samsung 29-3135-375. Objectives of the study 32-3338-396. Research Methodology 34-3740-437. Analysis and Interpretation 38-5144-578. Results and Findings 52-5358-599. Conclusions 54-5560-6110. Limitations 56-5762-6311. Suggestions and Recommendations 58-5964-6512. Bibliography 60-6166-6713. Questionnaire 62-6568-71

Formatted:Line spacing: single


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Introduction


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REFRIGERATOR INDUSTRY IN INDIA

Refrigerators have been manufactured in India since 1950s. Till the 1980s, players

like Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Earlier,

the white goods sector was categorized as a luxury goods industry and was subject to

oppressive taxation and licensing. The situation changed after the liberalization of the

Indian economy in the early 1990s. The government removed all restrictions, and now

there is no restriction on foreign investment, and licenses are no longer required.Post-

liberalization, a number of foreign companies entered the market and many domestic

players also diversified into refrigerators. BPL and Videocon, who already had a presence

in the consumer electronics market, leveraged their strengths to enter the durables sector.

In India, refrigerators have the highest inspirational value of all consumer durables,

with the exception of televisions. This accounts for the high growth rate of the refrigerator

market. The refrigerator market has been growing at a rate of about 15% per year, while

the consumer durables industry as a whole has grown at almost 8%.

The size of the refrigerator market is estimated to be 3.5- 4 million units

approximately, valued at Rs 50 billion. The domestic penetration rate of refrigerators is

about 9%. The penetration of refrigerators is considerably higher in urban areas, which

account for 75% of the demand, with rural areas constituting the other 25%.

There are two basic types of refrigerators manufactured in India, Direct-Cooland

Frost-Free. Till the 1990s, only direct cool refrigerators were used in India.

The refrigerator industry is highly competitive which implies a high premium on

quality of the product. Manufacturers of refrigerators have, in general, improved the

quality of the product, especially the reliability of the compressor. In so far as new

technology is concerned the concept of "Frost free" refrigerators has been gaining

popularity. Non-CFC (Non Chlro-fluro-carbons) refrigerators are being manufactured in

the country but because of their high initial cost the demand is sluggish.


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Refrigerator business is more mature. If you take the North India, the penetration is

higher than that of Televisions. Only in the South is it the other way around. It grew at 8

per cent last year.

In the last two years, Samsung and LG have given a lot more attention to the color

television business. BPL which did so well with the frost-free when they launched it, have

not been very active. So it is more like the business has not had its support.

Rural markets contribute around 24 per cent to demand for 8-9 years. This has not

gone up or down which means that the rural markets have been growing by and large with

the rest of the country.

In the refrigerator business, there is a controversy on who is the biggest. Whirlpool

says it is the largest, while L.G says it is. It is very difficult to say. But we can assume that

they are on a par as brands. In terms of companies, Electrolux is the largest with a few

brands added together. Between the three of them they command approximately 70 per

cent of the market. Change is not expected.

One of the reasons cited for this low level of penetration is the extremely negligible

effort by the industry to propagate the utility of the product, industry insiders' state. "The

players talk about the technology used by them but they never talk about the usage of the

product in today's life," analysts point out.

"During the current year, the refrigerator industry has experienced marginal

growth. In volume terms, the growth has been to the tune of 8 per cent to 10 per cent,

while in value terms it is negligible," market watchers toldBusiness Line.

Whirlpool (India) has been constantly innovating and highlighting new USPs

(Unique Selling Propositions) for its refrigerators. Starting with the 'Fast Forward Ice'

innovation, the company has lately brought in what it claims is the world's first single-door

frost-control refrigerator with which it plans to enter the mass segment. Conventionally,

Direct-Cool fridges are single door while Frost-Free refrigerators have double doors.

According to Arvind Mendiratta, the CEO of Whirlpool (India), the company

aims to cater to both the direct cool and frost-free segments. He says that though frost-free


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technology is superior, in India most people prefer direct cool due to frequent power

shortages and eating habits. Hence the new range has been developed combining the

benefits of frost-free and direct cool.

Whirlpool also introduced the Sixth Sense proprietary technology, which

automatically maintains the requisite temperature inside the fridge. The sixth-sense frost-

control refrigerators provide the benefit of total freedom from defrosting and cleaning

water puddles besides being high capacity refrigerators with additional space

Whirlpool fridges, he disclosed, are priced at an approximately three per cent

premium mainly because of their superior technology. But we do not want to be a niche

player. We want to be in the market where volume isadds Mendiratta.

Rajiv Karwal, managing director and CEO, Electrolux, feels the market for

refrigerators is huge and largely untapped. He is confident that their new external battery-

powered fridge will create a huge demand for fridges with power back-ups. Clearly the

USP of the product is electricity or the lack of it.

This year LG has launched products catering to both ends of the spectrum. While

on the one hand it launched an extremely hi-end product aimed at strengthening its digital

product portfolio the TV refrigerator called TV Dios and on the other hand it is

bringing in aRs5,000fridge to cater to the rural markets.

According to trade journals, Whirlpool Indiais the leader in the domestic

refrigerator industry, with a 26-per cent share. A majority of the company's revenues,

about 65 per cent, come from refrigerators

Whirlpool is now contemplating a significant shift in its focus areas and is eyeing

the huge air-conditioner and microwave market in the country for its future growth and

comfortable margins. Whirlpool officials said enhanced competition and significant price

erosion due to a steep rise in input prices of commodities, in the refrigeration segment,

have put the company's margins under severe pressure.


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A recent FICCI report has provided a silver lining of sorts to the dismal industry

scenario by pegging the growth of consumer durable goods in the rural markets at around

25 per cent as against 7-10 per cent in urban areas in the last financial year.

Companies like LG have already been reaping the fruits of its rural focus.

According to the company, 55 per cent of its Rs4,500-crore turnover last year was

contributed by the rural and semi-urban markets.


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Company Profile

Whirlpool


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WHIRLPOOL

INTRODUCTION

Whirlpool Corporation is the world's leading manufacturer and marketer of majorhome appliances, with annual sales of more than $19 billion in 2011, 68,000 employees,

and 66 manufacturing and technology research centers around the world. Whirlpool, right

from its inception in 1911 as first commercial manufacturer of motorized washers to the

current market position of being world's number one manufacturer and marketer of major

home appliances, has always set industry milestones and benchmarks.

The parent company is headquartered at Benton Harbor, Michigan, USA with a

global presence in over 170 countries and manufacturing operation in 13 countries with 11

major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and

Ignis. The company boasts of resources and capabilities beyond achievable feat of any

other in the industry.

Whirlpools international outlook was initiated in 1958 when it entered Brazil,but

it was the 80s that marked the beginning of Whirlpools aggressive strategy to be a

world-wide competitor. India was identified as a growth market in late 80s when

Whirlpool Corporation entered into a joint venture agreement with TVS group to produce

automatic washers at a plant set up in Pondicherry. A modest beginning was made to

establish the Whirlpool brand in India. In 1995 Whirlpool Corporation acquired

Kelvinator of India Limited and entered into the Refrigerator market in India. In late 1995

majority ownership was gained in the TVS joint venture and the two entities were merged

to form Whirlpool of India Limited in 1996. This expanded the company's portfolio in the


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Indian subcontinent to washing machines, refrigerator, microwave ovens and air

conditioners.In the year ending in March '09, the annual turnover of the company for its

Indian enterprise was Rs.1,719 Crores.

Whirlpool has sustained its leadership position within the global appliance industry,

thanks to its innovation led approach and a keen understanding of the customers' needs, a

firm commitment to addressing those requirements through companys superb brands,

products and services. Whirlpool Corporation entered India in the late 80s and today has

grown to become one of the leading manufacturers and marketers of major home

appliances in India.

Whirlpools aggressive business approach delivered the success that consisted of anextensive brand building exercise, fixed cost reduction and restructuring. Whirlpool chose

to position the brand as a Partner to the homemaker and the values weretranslated into

the various elements of the brand identity leading to the well known tagline You &

Whirlpool, The Worlds best homemakers. In fact, Whirlpool is credited with changing

the lexicon from housewife to homemaker in everyday parlance which truly celebrates

the contributions the woman makes to the home.

Targeted at the modern Indian woman who sees home appliances as her ally in

homemaking, Whirlpool believes in providing world-class quality to its consumers. In its

endeavor to maintain international standards of quality and style and match the exacting

standards of the Indian homemaker, Whirlpool has successfully become a Perfect partner

to the demanding homemaker of today who seeks to nurture herself as well as home &

family. Whirlpoolsproducts are stylish, modern and contemporary with elegant looks and

reflect the sense of pride homemakers take in choosing them for their homes.

Whirlpool has the distinction of having ISO certification for all its facilities in

India. The refrigerator facility is located at Faridabad and manufactures a complete range

of direct cool refrigerators. With the infusion of technology, machinery and streamlining

the processes the capacity of this plant was increased from 700,000 to 1,000,000 annually.

Whirlpools commitment to the Indian operation has resulted in the setting up of a

state-of-the-art facility for the manufacture of no-frost refrigerators at Ranjangaon near


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Pune. This facility has set the standards as one of the worlds front runners in

environmentally sensitive eco-friendly manufacturing units.

Products manufactured in the above facilities match Whirlpools global standards

and are exported to over 70 countries across the globe. Whirlpool India is today Indias

largest exporter of home appliance and has been approved as an Export House.

Design Engineering is being developed as a core competency for Whirlpool India.

A step in the direction has resulted in the setting up of Regional Technology Centers at

Pune and Pondicherry. The already strong manufacturing and technology infrastructure

was augmented by the establishment of a Global Consumer Design centre for Asia in New

Delhi in 2005.

The products of Whirlpool are engineered to suit the requirements of 'smart, confident and

in-control' homemaker who knows what she wants. The product range is designed in a way

that it employs unique technology and offers consumer relevant solutions.


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Core Competence


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CORE COMPETENCE

Innovation: Unique and compelling solutions valued by our customers and aligned to our

brands create competitive advantage and differentiated shareholder value.

Operational Excellence (OPEX): A methodology for solving problems & continuous

improvement of products & processes through pursuit, acquisition, and utilization of

knowledge using critical thought and planned experimentation helps us achieve operational

excellence.

Customer Excellence: Excelling the customer expectation from the company, its brands,

products and services are a three-step process. The three steps are: Know a customer, be a

customer, Serve a customer.

Innovation

OperationalExcellence

CustomerExcellence


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Mission And Vision


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Everyone, PassionatelyCreating Loyal Customers forLife

Our mission defines ourfocus and what we dodifferently to create value.We are a company of peoplecaptivated with creatingloyal customers. From every

job, across every contact, wewill build unmatched

customer loyalty onecustomer at a time.

MISSION

Every Home, everywhere,with pride, passion and

performance OUR vision rests on the

pillars of innovation,operational excellence,customer-centric approachand diversified talent. Theseare embedded within ourbusiness goals, strategy,processes and work culture.

VISION


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WHIRLPOOL PROGRESS IN INDIA

Whirlpool, right from its inception in 1911 as first commercial manufacturer of

motorized washers to the current market position of being world's number one

manufacturer and marketer of major home appliances, has always set industry milestones

and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA

with a global presence in over 170 countries and manufacturing operation in 13 countries

with 11 major brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht,

Laden and Ignis. The company boasts of resources and capabilities beyond achievable feat

of any other in the industry.

Whirlpool initiated its international expansion in 1958 by entering Brazil.

However, it emerged as truly global leader in the1980's. This encouraging trend brought

the company to India in the late 1980s. It forayed into the market under a joint venture

with TVS group and established the first Whirlpool manufacturing facility in Pondicherry.

Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry

into Indian refrigerator market as well. The same year also saw acquisition of major share

in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to

create Indian home appliance leader of the future, Whirlpool India. This expanded the

company's portfolio in the Indian subcontinent to washing machines, refrigerator,

microwave ovens and air conditioners.

Today, Whirlpool is the most recognized brand in home appliances in India and

holds a market share of over 25%. The company owns three state-of-the-art manufacturing

facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features

an infrastructure that is witness of Whirlpool's commitment to consumer interests and

advanced technology.

In the year ending in March '06, the annual turnover of the company for its Indian

enterprise was Rs.1,375 Crores. According to IMRB surveys Whirlpool enjoys the status

of the single largest refrigerator and second largest washing machine brand in India.


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The company's brand and image speaks of its commitment to the homemaker from

every aspect of its functioning. It has derived its functioning principles out of an undaunted

partnership with the homemakers and thus a slogan of You and whirlpool, the world's best

homemaker dots its promotional campaigns. The products are engineered to suit the

requirements of smart, confident and in-control' homemaker who knows what she wants.

The product range is designed in a way that it employs unique technology and offers

consumer relevant solutions


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Values

Formatted:Normal, Pattern: Clear

Formatted:Font: Bold


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diversity and inclusion motivates every individual to excel, stimulating passion and the

free expression of ideas.

Teamwork

Working together brings pride and frees up the potential of every individual. Through

collaboration and the confrontation of ideas, great results can be achieved.

Spirit of Winning

The awareness of being a leader generates pride and motivation to face the new challenges

of the market. Our goal is to be recognized and respected as one of the world's best

companies to work for.


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History


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1911 : Louis Upton founded the Upton Machine Company in this year to produce

motor-driven wringer washers.

1916 : First order of washers was sold to Sears, Roebuck & Co.

1929 : Upton Machine Company merged with Nineteen Hundred Washer

Company of NewYork.

1948 : First 'Whirlpool' brand automatic washer with dual distribution was

introduced. It included two product lines one each was distributed through

Sears and Nineteen Hundred.

1958 : The company moved out of country for the first time and invested in

Brazilian appliance market through purchase of equity in Multiparas, S.A

1968 : The Elisha Gray II Research & Engineering Center was completed in

BentonHarbor. In the same year the company's revenues crossed the

legendary $1 Billion mark for the first time.

1978 : Within a decade company doubled its feat of $1 Billion mark and reached

the $2 billion revenue level.

1987 : Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS

Whirlpool Ltd.

1989 : This was a historic year since the revenues catapulted to heights of over $6

Billion mark. Also, the joint venture with N.V.Philips of Netherlands called

Whirlpool Europe B.V. was formed to manufacture and market appliances

in Europe.

1990 : Company established joint venture with Matsushita Electric Company of

Japan to produce vacuum cleaners for the North American market.

1991 : The Company introduced and committed globally to its Worldwide

Excellence System, which is a TQM program dedicated to exceedingcustomer expectations. The vision to globalize 'Whirlpool Corp. was

realized in the same year.


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1993 : First time Whirlpool became the No.1 stand-alone brand in UK, Ireland,

Netherlands and Belgium

1995 : Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The

DC manufacturing facility of Kelvinator India was also acquired.

1996 : Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged

together to form Whirlpool of India Ltd.

1998 : This year gave birth to a new company vision that says, "Every Home

Everywhere with Pride, Passion & Performance."

1999 : Whirlpool of India crossed the milestone of 1 million sales of appliances.

2002 : The 'Whirlpool Strategic Architecture' was launched as a framework to

achieve the vision. The revenues of Whirlpool Corp. soared to $10.5

Billion.

2004 : Whirlpool India registered profit & sold 1.2 million appliances. It also

achieved the No.1 position in DC & FA.

2005 : The Aircon range was successfully launched and the Whirlpool of India

acquired 6% market share.

2006 : A new mission statement of "Everybody creating loyal customers for life"

was adopted.

2007 : Whirlpool Corporation acquires Maytag and become the Worlds largest

white goods company.


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BOARDOFDIRECTORSAND

COMMITTEES


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ChairmanandCEO:

Jeff M. Fettig

ExecutiveCommittee:

Marc Bitzer Esther Berrozpe Galindo David Szczupak Larry Venturelli David A. Binkley Joao C. Brega Kirsten Hewitt Michael A. Todman

BoardofDirectors(India)

Arvind Uppal (Chairman & Managing Director) Mr. Vikas Singhal(Executive Director) Anil Berera Mr. Sanjiv Verma S.J. Scarff Anand Bhatia


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AWARDSANDRECOGNITION


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Awards and Recognition:

2012

1. ICWAI....National Award for Excellence in Cost Management - Silver2. Trophy for Export Excellence in EPO Service for outstanding export performance.3. Whirlpool ACE Washing Machine received the Silver Medal in the prestigious

international Edison Awards for being the best new product in the Lifestyle and Social

Impact category.

2011

1. #14 Best Employers in India 2011....Aon Hewitt2. # 9 Top Companies for Leaders Asia Pacific 2011...Fortune Aon Hewitt3. Best Employers in Asia Pacific 2011....Fortune Aon Hewitt4. Readers Digest Trusted Brand Gold Award (2010-2011) for Refrigerators and Washing

Machines

5. Whirlpool Pondicherry Washer Facility Gold Award in Economic Times Frost & SullivanManufacturing Excellence Award - 2011

6. CEAMA Appliance Man of the Year for Arvind Uppal.

2010

1. Product of the Year 2010 1-2-3 Washing Machine....best innovative product in theWashing Machine Category

2. Readers Digest Trusted Brand Gold Award (2009-2010) for Refrigerators and WashingMachines

3.

#1 India's Best Company for Leadership Development by Great Place to Work4. #15 India's Best Companies to Work for by Great Place to Work5. Best Consumer Durables Company...Dun & Bradstreet Corporate Awards 2010.


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COMPETITORPROFILE

LG


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LG

Established in 1958, LG Electronics, Inc. (LG) is a global leader and

technology innovator in consumer electronics, home appliances and mobile

communications, employing more than 82,000 people working in over 110

operations including 81 subsidiaries around the world.

Comprising four business units - Mobile Communications, Digital

Appliance, Digital Display and Digital Media with 2006 global sales of USD

38.5 billion - LG is the world's leading producer of CDMA/GSM handsets,

air conditioners, front-loading washing machine, optical storage products,

DVD players, flat panel TVs and home theater systems.

BRAND IDENTITY

LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic

logo are a great representation of what they stand for.

Global, Tomorrow, Energy, Humanity and Technology are the pillars that this

corporation is founded on; with the capital letters L and G positioned inside a circle to

center our ideals above all else, humanity. The symbol mark stands for their resolve to

establish a lasting relationship with, and to achieve the highest satisfaction for their

customers.

The letters "L" and "G" in a circle symbolize the world, future, youth, humanity, and

technology. Their philosophy is based on Humanity. Also, it represents LG's efforts to

keep close relationships with their customers around the world. The symbol mark

consists of two elements: the LG logo in LG Grey and the stylized image of a human

face in the unique LG Red color. Red, the main color, represents the friendliness, and
http://www.lge.com/index.jhtmlhttp://www.lge.com/index.jhtml


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also gives a strong impression of LG's commitment to deliver the best. Therefore, the

shape or the color of this symbol mark must never be changed.

The LG logo is the fundamental visual expression used to identify LG. It expresses the

quality and sophistication that is the hallmark of LG products. It is simple, modern and

distinctive. Consistent and proper usage of the logo is absolutely essential. The logo is

symbolic of our steadfast reputation for excellence; therefore, any variation of the logo

diminishes the visual identity of LG Electronics and its products.


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COMPETITORPROFILE

Samsung


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SAMSUNG

Samsung India is a 100 per cent owned subsidiary of Samsung Electronics Co.,

Ltd. (SEC) in India. Samsung Electronics Co., Ltd. is a global leader in semiconductor,

telecommunication, digital media and digital convergence technologies with 2007 parent

company sales of US$63.4 billion and net income of US$8.5 billion. Employing

approximately 138,000 people in 124 offices in 56 countries, the company consists of five

main business units: Digital Media Business, LCD Business, Semiconductor Business,

Telecommunication Network Business and Digital Appliance Business. Recognized as one

of the fastest growing global brands, Samsung Electronics is a leading producer of digital

TVs, memory chips, mobile phones and TFT-LCDs

The Samsung Philosophy

Samsung follows a simple business philosophy: to devote their talent and technology to

creating superior products and services that contribute to a better global society.

Every day Samsung people bring this philosophy to life. Our leaders search for the

brightest talent from around the world and give them the resources they need to be the best

at what they do. The result is that all of our productsfrom memory chips that help

businesses store vital knowledge to mobile phones that connect people across continents

have the power to enrich lives. And thats what makinga better global society all is about..
http://www.samsung.com/in/index.htmhttp://www.samsung.com/in/index.htm


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Values

Excellence

Everything we do at Samsung is driven by an unyielding passion for excellenceand an

unfaltering commitment to develop the best products and services on the market.

Integrity

Operating in an ethical way is the foundation of our business. Everything we do is guided

by a moral compass that ensures fairness, respect for all stakeholders and complete

transparency.

Co-prosperity

A business cannot be successful unless it creates prosperity and opportunity for others.

Samsung is dedicated to being a socially and environmentally responsible corporate citizen

in every community where we operate around the globe.


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Objectives Of Study


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OBJECTIVESBrand Perception of Refrigerators and strategies to improve it, with special

reference to LG, SAMSUNG and WHIRLPOOL.

1. To analyze the overall perception regarding brand of refrigerators.2. To find out the consumers perception towards LG, SAMSUNG and

WHIRLPOOL.

3. To recommend strategies to improve customer perception.4. To understand the customer needs and requirements regarding refrigerators.5. To analyze factors affecting customer perception.


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Research Methodology


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I will be taking DESCRIPTIVE because my research includes knowing the

perception of customers towards Refrigerator, I will be working on to know how people

respond to Refrigerator or their perception.

SAMPLING DESIGN

a) Sampling unit: It consists of general public.b) Sampling size: The overall sample involved consisted of 100 individuals. It was

fixed before hand and every effort was made to cover the given number of

individuals with available time for the collection of data for this project.

c) Contact method: The respondents were personally interviewed.d) Analysis method: The data was tabulated and frequency distribution was

developed. The percentages are computed for different variables.

TOOLS

In the research tools are used as graphical presentation.

SIZE OF SAMPLE

The overall sample involved consisted of 100 individuals. It was fixed beforehand

and every effort was made to cover the given number of individuals with available time for

the collection of data for this project.

DATA COLLECTION

Research project is affected very much by data collection method. Reliability of the

collected data depends a lot on the method of data collection.

The data is collected through:

Primary Data

Secondary Data


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Primary Data

For the purpose of collecting primary data, the survey method was used and where

this study is mainly based on the primary data. Structured formats were administrated to

get firsthand information, from the consumers who are associated with the Internet Service

Providers.

Secondary Data:

Websites Magazines Brochures


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DATAANALYSISAND

INTERPRETATION


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Table 1:Number of consumers having a refrigerator

Response Number of consumers

Yes 100

No 0

INTERPRETATION

Percentage of respondents who are having a refrigerator is 100%. This highlights

that refrigerator is the most common and essential appliance nowadays.

100%

0.00%

Consumers having Refrigerator

Yes

No


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Table 2:BRAND OWNERS

Brand Name Number of Owners

LG 35

SAMSUNG 27

WHIRLPOOL 23

OTHER 15

INTERPRETATION

Percentage of respondents who have LG refrigerators is around 35%,Whirlpool

comes second with 23%, Samsung comes third with 27% and 15% respondents are having

other brand then these three.

0

5

10

15

20

25

30

35

LG SAMSUNG WHIRLPOOL OTHER

35%

27%

23%

15%

Brand Owner


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Table 3:Brand Loyalty

Period of using current Brand Number of Respondents

Less than 1 Year 14

1-4 Years 26

More than 4 Years 60

INTERPRETATION

Level of brand locality is very high as the above result highlights 60% respondents

are using their current brand of refrigerator for more than 4 years and only 14%

respondents are using for less than 1 year.

14%

26%

60%

0%

Brand Loyalty

Less than 1 Year

1-4 Years

More than 4 Years


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Table 4:Size Preference of Refrigerators

INTERPRETATION

The above result highlights that most of the respondents own a refrigerator of 300

liter size. As the 71% respondents have said that they have refrigerator of 300 liter

capacity. Only 18% respondents are having refrigerator of 165 liter. So now customer

perception is positive for 300 liter refrigerator and they do not want very small or large

refrigerator.

0

10

20

30

40

50

60

70

80

Less than 165 liter 165 liter 300 liter More than 300 liter

6%

18%

71%

5%

Size Prefernce

Size Number of Owners

Less than 165 liter 6

165 liter 18

300 liter 71

More than 300 liter 5


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Table 5:Perception about Refrigerator in the Mind of Respondents

Meaning to Respondents Number of Respondents

Requirement 75

Status symbol 8

Long term expenditure 15

Short term expenditure 2

INTERPRETATION

The above results show that most of the respondents considered refrigerator as a

requirement rather than status symbol, long term expenditure or short term expenditure.

75% respondents considered refrigerator as a requirement in this survey.

0

10

20

30

40

50

60

70

80

Requirement Status symbol Long term

expenditure

Short term

expenditure

75%

8%

15%

2%


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44

Table 6:Most Attractive Factor or Factors in Refrigerators as per Consumers.

Factor/Factors Number of Respondents

Functionality 54

Color 4

Brand Name 35

Any Other 1

Functionality and Color 2

Functionality and Brand Name 4

INTERPRETATION

Functioning is the most important feature for the consumers in the refrigerators. As

54% respondents have selected as most attractive feature in the refrigerators. Brand name

comes second with 35% respondents selection.

0

10

20

30

40

50

60

Features


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Table 7:Brand Preference Level among Respondents

Brand Name Number of Respondents Ranked a Brand Number 1

LG 40%

SAMSUNG 20%

WHIRLPOOL 40%

INTERPRETATION

The survey shows that LG and Whirlpool are strong competitors and they are the

market leaders in the region. LG is ranked number one brand of refrigerator by 40%

respondents and 39% respondents ranked Whirlpool as number one brand of refrigerator.

40%

20%

40%

0%

Brand Preference Level

LG

SAMSUNG

WHIRLPOOL


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Table 8: Factors Influencing the Buying Decision of Respondents/Consumers.

Factors Number of Respondents

Advertisement 10

Personal Sources 25

Discounts/offers 2

Price 61

Customer Care Services 2

INTERPRETATION

Price is the most important factor which influences the buying decision of

consumers as 61% respondents ranked price as number one factor. Second major factor is

personal sources (friends and relatives).

Advertisement

10%

Personal Sources

26%

Discounts/offers

2%

Price

62%

Factors Influencing Decision


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Table 9:Satisfaction Level of the current brand

Satisfaction Level Number of Respondents

Highly Satisfied 31

Satisfied 50

Neutral 11

Dissatisfied 3

Highly Dissatisfied 3

INTERPRETATION

This result shows that respondents or consumers are having high degree of

satisfaction level. As 50% respondents are satisfied with their current brand of refrigerator

and 31% respondents are highly satisfied. Only 3% respondents are dissatisfied with their

current brand of refrigerator

33%

53%

11%3%

Satisfaction Level

Highly Satisfied

Satisfied

Neutral

Dissatisfied


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Table 10:Most Important Feature or Features at the time of Purchaseofrefrigerators as

per the Respondents.

Features Number of Respondents

Space 22

Cooling Level 28

Freezer 3

Easy Maintainability 33

Combination of two or more features 14

INTERPRETATION

In the survey of 100 respondents, it is found that Easy maintainability is the feature

which matters most to the consumers at the time of purchase of refrigerator. 33%

respondents have considered easy maintainability as most important feature. And 28%

have considered cooling level as most important element at the time of purchase of

refrigerator.

22%

28%

3%

33%

14%

0

5

10

15

20

25

30

35

Space Cooling Level Freezer Easy

Maintainability

Combination of

two or more

features

Features


54/70

49

Table 11:Source of Information for Consumers Regarding Refrigerators.

Source of Information Number of Respondents

Newspapers 6

Magazines 8

T.V 49

Trade Fairs 24

Any Other 13

INTERPRETATION

T.V is the major source of information regarding refrigerators as 49% respondents

have select T.V as the source of information. Second major source is Trade fairs with 24%

respondents believe.

0

5

10

15

20

25

30

35

40

45

50

Newspapers Magazines T.V Trade Fairs

6%8%

49%

24%

Source Of Information


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Table 12:Advertisement Effectiveness

BRAND NAME Number of Respondents

LG Ads most effective 32

SAMSUNG most effective 26

WHIRLPOOL most effective 42

INTERPRETATION

The above result shows that 42% respondents ranked advertisement of whirlpool as

most effective. So whirlpool is having highest degree of advertisement effectiveness. LG

comes second on advertisement effectiveness and Samsung comes at third position.

32%

26%

42%

0%

Advertising Effectivness

LG Ads most effective

SAMSUNG most effective

WHIRLPOOL most effective


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Table 13: Degree of changing Brand of Refrigerator by Consumers

Decision Number of Respondents

Yes 37

No 63

INTERPRETATION

Only 37% consumers would shift their brand of refrigerator, if given an

opportunity.

And 63% consumers would stick to their current brand of refrigerator. So it shows

that consumers are brand loyal and also having high degree of satisfaction level.

Yes

37%

No

63%

0%0%

Change In Brand


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RESULTSANDFINDINGS


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In India most people prefer direct cool due to frequent power shortages and eatinghabits.

LG Electronics India and Samsung Electronics are the leaders in the frost-freesegment in the market and are growing the fastest in the category.

Price is the most important factor which influences the buying decision ofcustomers regarding refrigerators.

Brand loyalty is very high among the customers of refrigerators as 102 respondentsout of 200 are using their current brand of refrigerator for more than 4 years

Refrigerators are considered as requirement by most of the respondents

The Indian refrigerator market is very small and accounts for sales of around 3.5million units per year.

Satisfaction level is very high among the customers of refrigerators as around 103respondents are satisfied and 63 respondents are highly satisfied with their brand of

refrigerator

Despite a reduction in the customs and excise duty, from about 14 per cent in 1998to 8 per cent in 2003, levied on the refrigerators segment most companies are still

making losses.

In India, direct cool refrigerators are estimated to account for 85 per cent of thetotal fridge market.

LG is truly a market leader vis--vis competitors Have higher market share around30% as compared to competitors.


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CONCLUSION


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CONCLUSIONS

We expect the present growth of refrigerators industry to continue during the rest of

the fiscal year. With the globalization and liberalization, foreign players are entering in the

Indian refrigerator industry. Going forward, the consolidation of regional players is likely

to continue. Launch of Door Cooling, PentaFresh Technology and other innovations will

increase the size and growth of the industry but with declines in profits and surpluses,

which could put pressure on margins. In such a competitive scenario, Exchange offers, new

innovative product introductions, cutthroat pricing, easy financing, the refrigerator makers

in the country are using just about every trick in the book to push their products.

LG is already way ahead in terms of infrastructure, market share and a very satisfied

customer base on the other hand Samsung needs to improve upon its market share before it

is too late. Whirlpool is having enough market share and best advertisement and sales

promotional activities


61/70

LIMITATIONSOFSTUDY


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LIMITATIONS OF THE STUDY

Some respondents are not interested to interact with us. Sales of refrigerators are around 3.5 million units per year so the sample size was

too small to reach to a definite conclusion and it cannot represent whole universe.

Survey is done in Ludhiana which is urban area so rural areas gets ignored in thissurvey.


63/70

SUGGESTIONSAND

RECOMMENDATION


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SUGGESTIONS & RECOMMENDATIONS

Samsung should improve its advertisement policies and should indulge itself withevents.

Samsung is not considered as a premium brand use of celebrity and change inpositioning strategy can help Samsung enhance its image as a premium brand.

Samsung and LG are required to focus more towards innovation and creativitystrategies.

To increase the market share both Samsung and Whirlpool should take functioningand easy. Maintainability as most important features of refrigerators.

All three players should improve their branding strategies. The major focus inbranding should be on functioning and performance of refrigerator as customers

look for high degree of performance first rather than brand name in refrigerators.

Pricing strategies should be different for urban and rural customers. Price is themost important factor which influence the buying decision of customers


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BIBLIOGRAPHY


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BIBLIOGRAPHY

http://www.thehindubusinessline.com/businessline/iw/2000/06/18/stories/0518e2

http://www.thehindubusinessline.com/2003/12/14/stories/2003121401150200.htm

http://www.domainb.com/marketing/general/2004/20040702_cool_machines.html

www.icmr.icfai.org/casestudies/catalogue/Business%20Reports/BREP017.htm

http://dipp.nic.in/industry/cons_dur.htm


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QUESTIONNAIRE


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QUESTIONNAIRE

Name : ____________________________________ Sex : __________

1. Do you own a refrigerator?

a) Yes b) No

2. If yes then name the brand?

a) LG b) Samsung

c) Whirlpool

d) Other Please specify.

3. For how long you have been using your current brand of refrigerator?

a) Less than 1 years

b) 1-4 years

c) More than 4 years

4. What is the capacity of your refrigerator?

a) Less than 165

b) 165 liter

c) 300 liter

d) More than 300

5. What does refrigerator means to you?

a) Requirement

b) Status Symbol

c) Long term expenditure

d) Short term expenditure


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6. Which factor/factors attract you more towards the refrigerator?

a) Functionality

b) Color

c) Specify Brand name.

d) Any other,Please specify.

7. Rank the following brands of refrigerators on the scale of1-3, 1 shows highest rank for

liking and 3 shows lowest rank for liking.

a) LG

b) Samsung

c) Whirlpool

8. Rate the following factors which influence your buying decision regarding

refrigerators on the scale of 1-5, 1 is for most important factor and 5 is for least important

factor.

a)Advertisement

b)Personal sources

c)Discounts/offers

d)Price

e) Customer Care Services

9. Rate your own brand of refrigerator on the Satisfaction level.

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied


70/70

10. At the time of purchase of refrigerator which of the following feature or features

matters to you most?

a) Space

b) Cooling Level

c) Freezer

d) Easy Maintainability

e) Any other Please specify

11. At the time of purchase what was the source of information with regard torefrigerators?

a) Newspapers

b) Magazines

c) T.V

d) Trade Fairs

e) Any Other Please specify

12. Rank the following brands of refrigerators on the scale of 1-3, on the basis of

advertisement effectiveness?

1 shows highest ranking and 3 shows lowest ranking.

a) LG

b) Samsung

c) Whirlpool

13. If given an opportunity would you like to shift your brand of refrigerator?

a) Yes b) No

14. If yes then which brand will you prefer?

a) LG b) Samsung

c) Whirlpool

d) Any other Please specify

khush project1

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