CHAPTER-1

INTRODUCTION

1

INTRODUCTION

Satisfaction is the persons feeling of pleasure(or) disappointment resulting from comparing a

product perceived performance (outcome) in relation to his/her expectation. If the performance

fall short of expectation the customer is dissatisfied . If the performance matches the expectation

the customer is satisfied if the performance exceeds the expectation the customer is highly

satisfied ( or) delighted many companies are aiming for high satisfaction because they are much

ready to switch. ]

Buyer’s expectation formed on the basis of past buying experience ,friend and the associate

advice and the marketers and the competitor’s information and promises. If marketers raise

expectations too high , the buyer is likely to be disappointed. Even if the company sets

expectation should match the performances.

A customer is the most important person ever in any company.

A customer never depend on company,but the company depends on him.

A customer is the person who bring company his wants.

A customer is not a interruption of marketers work he is the purpose of it.

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Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej,

Alwyn, and Voltas were the major players in the consumer durables market, accounting for no

less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony,

Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.

Today, these players control the major share of the consumer durables market. Consumer

durables market is expected to grow at 12-18% in 2010-2011. It is growing very fast because of

rise in living standards, easy access to consumer finance, and wide range of choice, as many

foreign players were entering in the market with the increase in income levels, easy availability

of finance, increase in consumer awareness, and introduction of new models, the demand for

consumer durables has increased significantly. Products like washing machines, air conditioners,

microwave ovens, color televisions (C-TV) were no longer considered luxury items. However,

there were still very few players in categories like vacuum cleaners, and dishwashers Consumer

durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and

intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's

major target is the growing middle class of India. MNCs offer superior technology to the

Consumers whereas the Indian companies compete on the basis of firm grasp of the local market,

their well-acknowledged brands, and hold over wide distribution network. However, the

penetration

Level of the consumer durables is still low in India. 

3

Indian Consumer durables market used to be dominated by few domestic players like Godrej,

Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into

Indian market dethroning the Indian players and dominating Indian market the major categories

being CTV, REFRIGRATOR, MICROWAVE OVEN and WASHING MACHINES.

India being the second largest growing economy with huge consumer class has resulted in

consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean

companies have been maintaining the lead in the market with LG being leader in almost all the

categories.

The rural market is growing faster than the urban market, although the penetration level is much

lower .The CTV segment is expected to the largest contributing segment to the overall growth of

the industry. The rising income levels double-income families and consumer awareness were the

main growth drivers of the industries.

4

INDUSTRY PROFILE

The Consumer Durables industry consists of durable goods and appliances for domestic use such

as televisions, refrigerators, air conditioners and washing machines. Instruments such as cell

phones and kitchen appliances like microwave ovens were also included in this category. The

sector has been witnessing significant growth in recent years, helped by several drivers such as

the emerging retail boom, real estate and housing demand, greater disposable income and an

overall increase in the level of affluence of a significant section of the population. The industry is

represented by major international and local players such as BPL, Videocon, Voltas, Blue Star,

MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer

Electronics and Consumer Appliances. Consumer Appliances can be further categorized into

Brown Goods and White Goods. The key product lines under each segment were as follows.

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around US$ 5 billion in 2009-10.

More than 7 million units of consumer durable appliances have been sold in the year 2008-09

with colour televisions (CTV) forming the bulk of the sales with 30 per cent share of volumes.

CTV, refrigerators and Air-conditioners together constitute more than 60 per cent of the sales in

terms of the number of units sold.

In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool

segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have registered

double-digit growth in the direct cool refrigerator market.

5

In the case of washing machines, the semi-automatic category with a higher base and fully-

automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to 229,000

units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32

per cent and that of split ACs by 97 per cent.

Since the penetration in the urban areas for these products is already quite high, the markets for

both C-TV and refrigerators were shifting to the semi-urban and rural areas. The growth across

product categories in different segments is assessed in the following sections.

Consumer Electronics

The CTV production was 25.10 million units in 2010-11 and is expected to grow by at least 25

per cent. At the disaggregated level, conventional CTV volumes have been falling while flat TVs

have grown strongly. Market sources indicate that most CTV majors have phased out

conventional TVs and have been instead focusing more on flat TVs. The flat segment of CTVs

now account for over60 per cent of the total domestic TV production and is likely to be around

65 per cent in 2010-11.High-end products such as liquid crystal display (LCD)and plasma

display CTV grew by 400 per cent and 150 per

Cent respectively in 2010–11 following a sharp decline in prices of these products and this trend

is expected to continue. The audio/video player market has seen significant growth rates in the

domestic market as prices have dropped. This trend is expected to continue through 2010- 2011,

as competition is likely to intensify to scale and capture the mass market.

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CHAPTER-2

COMPANY PROFILE

7

OVERVIEW OF INDUSTRYWhirlpool Corporation is a global manufacturer and marketer of major home appliances. The

company manufactures in 13 countries and markets products in approximately 170 countries

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

Laden and Ignis.

Whirlpool Corporation entered India in the late ‘80’s and today has grown to become one of the

leading manufacturers and marketers of major home appliances in India. 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.

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.

Whirlpool’s 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 Pune. This facility

has set the standards as one of the world’s front runners in environmentally sensitive eco-friendly

manufacturing units.

The washer facility is located at Pondicherry and manufactures both fully automatic and semi

automatic washers.  Constant feedback is taken from the consumers resulting in products being

continuously upgrade in features and in styling. 

Products manufactured in the above facilities match Whirlpool’s global standards and are

exported to over 70 countries across the globe.  Whirlpool of India is today India’s largest

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

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PROFILE OF COMPANY

Whirlpool is a swirling body of water usually produced by ocean tides. The vast majority of

whirlpools are not very powerful. More powerful ones are more properly

termed maelstroms. Vortex is the proper term for any whirlpool that has a downdraft.

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 (Whirlpool Corporation) 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.

Whirlpool Corporation (NYSE: WHR) is a Fortune 500 company and a global manufacturer and

marketer of major home appliances,with annual sales of approximately $18 billion, more than

73,000 employees, and more than 70 manufacturing and technology research centers around the

world. After acquiring the Maytag Corporation on March 31, 2006, Whirlpool Corporation

became the largest home appliance maker in the world.

Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it emerged

as truly global leader in the 1980’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

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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.

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.

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.

Whirlpool’s 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 Pune. This facility

has set the standards as one of the world’s front runners in environmentally sensitive eco-friendly

manufacturing units.

The washer facility is located at Pondicherry and manufactures both fully automatic and semi

automatic washers. Constant feedback is taken from the consumers resulting in products being

continuously upgrade in features and in styling.

Products manufactured in the above facilities match Whirlpool’s global standards and are

exported to over 70 countries across the globe. Whirlpool of India is today India’s largest

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

Design Engineering is being developed as a core competency for Whirlpool of India. A step in

the direction has resulted in the setting up of Regional Technology Centres at Pune focussing on

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refrigerators and at Pondicherry for washers. This will provide WOI with a competitive edge in

speedy customisation of products suited to consumer needs.

In the second phase of developing this core competency Whirlpool set up a Global Technology

Centre at Pune in 2002 to provide design support for the global organisation. A design and

development centre for Whirlpool’s global small appliances brand Kitchenaid has also been set

up at 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

Whirlpool India’s products range from Refrigerators, Washing Machines, 100% Dryers, Air

conditioners, Oil Filled Heaters, Microwave Ovens, Purafresh RO Range, to Home UPS

Systems.

Thus, in short the history of the company can be stated as below:

1908: The first Automatic washer was launched to public in late 1908, by 1900 Corporation

which in 1911 was renamed to Upton Machine Company.

1957: The Company was rechristened as ' The Whirlpool Corporation.'

1958: The Company moved out of country for the first time and invested in Brazilian appliance

market through purchase of equity in Multibras S.A.

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

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

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

2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white goods

company.

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2007: Received the 2007 Cause Marketing Golden Halo Award for Business, America's highest

honor for companies and organizations that give back to the community through creative and

effective cause marketing campaigns

2008: Named one of the “2008 World’s Most Ethical Companies” by Ethisphere magazine

2008: Whirlpool OF India” was awarded the NDTV Profit Business & Leadership Award 2008

for “The Best Consumer Durables Company

2009: Whirlpool was voted Product of the Year and received the award for the 'Best Innovative

Product' in the popular refrigerators category. This was based on 40,000 consumers across 36

towns in India voting Whirlpool Frost Free Refrigerators with 6th sense as the Best Innovation in

the Popular Refrigerator Category.

2009: Named one of the “100 Best Corporate Citizens” by Chief Responsibility Officer

(formerly Business Ethics) magazine in 2009 and from 2000-2007

2009: Hewitt ‘Best Employers in India’ 2009 Study

Whirlpool vision

Every Home… Everywhere… with Pride, Passion and Performance

This vision statement reinforces that every home is their domain, every customer and

customer activity is their opportunity. This vision fuels the passion that they have for customers,

pushing towards to provide innovative solutions to uniquely meet their needs.

Pride... in work and each other

Passion... for creating unmatched customer loyalty for their brands

Performance... that excites and rewards global investors with superior returns

Whirlpool mission

Everyone, Passionately Creating Loyal Customers for Life

Whirlpool mission defines the focus and what it does differently to create value. Its a company

of people captivated with creating loyal customers. From every job, across every contact, it

builds unmatched customer loyalty…one customer at a time.

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Whirlpool values:

The company’s values are constant and define the way that all Whirlpool Corporation employees

are expected to behave and conduct business everywhere in the world.

Respect — Trust one another as individuals and value the capabilities and contributions of each

person.

Integrity — It conducts all aspects of business honorably – ever mindful of the longtime

Whirlpool Corporation belief that there is no right way to do a wrong thing.

Diversity and Inclusion — It maintains the broad diversity of Whirlpool people and ideas.

Diversity honors differences, while inclusion allows everyone to contribute. Together, it creates

value.

Teamwork — It recognizes that pride results in working together to unleash everyone’s

potential, achieving exceptional results.

Spirit of Winning — The company promotes a Whirlpool culture that enables individuals and

teams to reach and take pride in extraordinary results and further inspire the "Spirit of Winning"

in everyone.

Innovation:

Whirlpool Corporation firmly believes innovative thinking comes from everyone,

everywhere. Nearly 10 years ago, they launched a worldwide effort to instill innovation as a core

competency throughout the entire organization. Since then, Whirlpool employees worldwide

have participated in and contributed to innovation-related activities resulting in new ideas,

products and services; thus delivering real value to consumers in ways never before seen in

either the company or the home appliance industry.

Focused on embedding innovation as a core competency, Whirlpool Corporation has

made a long-standing investment to build this competency. This investment includes redesigning

business processes, training thousands of employees, building an innovation management system

and changing the culture of the company. 

Innovation attracts consumers to the wide portfolio of brands; Whirlpool Corporation

generated more than $2.5 billion of worldwide revenue from product innovations—well

13

exceeding projected targets for the year—and the robust pipeline of $4.5 billion will allow for

continued growth over time.

Promising entity of the company

Whirlpool Corporation is committed in building products that consumers around the

world can rely upon to meet their daily needs. This commitment to quality begins in the concept

stages and continues throughout the lifetime of the appliance. The result of these efforts is a

sustainable and competitive advantage for the company.

Globally, Whirlpool Corporation manufactures products using principles of lean

manufacturing and operational excellence to ensure continuous improvement of processes and to

produce products that meet the company's high-quality standards.

At Whirlpool, there is a constant focus on seeking out new and unique ways to improve

the function, performance and sustainability of their products.

The ring of promise circling the Whirlpool Corporation logo

The ring around the whirlpool logo clearly shows how the company encompasses with a

promising nature in developing a individual customer loyalty with its services .

Building the Corporate Brand

The Whirlpool corporate brand has a history dating back to 1911. The company has

steadily expanded its product line, revenues, and global footprint for more than five decades,

evident by milestone returns – from $1 billion in 1968, to $2 billion by 1978, to $6 billion by

1989, to the $13 billion reported in 2004. The corporate mission has also remained focused over

14

time, demonstrated by mantras such as “Unmatched customer loyalty – the core of our strategy”

and “Customer passion and lifelong relationships – the focus of our business.”

The corporate brand has also been built on a long history of design innovation, a safe and

diverse employee environment, customer-centered manufacturing, and a spirit of social

responsibility. In fact, the depth of the company’s commitment to multiple social efforts is

evident by a six-year inclusion of Whirlpool on the “100 Best Corporate Citizens” list published

by Business Ethics Magazine. The company boasts an impressive set of accomplishments that

foster these commitments:

The implementation of Operational Excellence, Whirlpool’s custom version of the Six

Sigma program, improves quality while lowering costs and shortening cycle times. This

program helped Whirlpool leverage its global manufacturing experience to save $175

million in manufacturing costs in its first three years of use.

Whirlpool’s commitment to innovation was recognized in 2002 with a National Design

Award for Corporate Achievement from the Smithsonian Institution.

Whirlpool is a six-time winner of the ENERGY STAR Partner of the Year award from

the U.S. Environmental Protection Agency (EPA) and Department of Energy,

demonstrating the company’s commitment to environmental protection.

More than 3,500 Whirlpool employees are involved in a five-year, $25 million

commitment to Habitat for Humanity International. The partnership has provided more

than 65,000 appliances to Habitat homes built in North America. In addition,

Whirlpool has raised over a million dollars to support the fight against breast cancer through the

“Cook for the Cure” program, sponsored by KitchenAid. Over 90 years of history gives

Whirlpool an extremely valuable asset: a corporate brand that communicates innovation,

consumer-driven research and development, and excellence in design and performance. Injecting

these principles into internal and customer-facing business processes enables the company to

invoke a consistent set of emotional responses from consumers including trust, uniqueness, and

most important, loyalty.

15

Product Range

The product range covers a wide variety of products from Refrigerators to Fabicare; from

AirCon to Water Purifiers and also Microwaves to UPS.Following is the product range of

Whirlpool Of India Limited.

Refrigerators

Washing Machines

Dyers

Microwave

Water Purifiers

Strategy execution:

The main strategy of the whirlpool is building strong brands which has a loyal consumer

base. Whirlpool is trying to build trustworthiness of the customer and lead the customer life

easier. Whirlpool mailnly does lot of work contributing in building unmatched levels of loyalty

to their brands through lifelong relationships with the customers.

Whirlpool is committed to create the brand value using various strategies such as

focusing on innovation, cost productivity, product quality and consumer value. Whirlpool

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always had a continous effort to improve its global operating platform to ensure the position of

the best-cost and best-quality appliance manufacturer worldwide. The company is maintaining a

strong supply chain to better deliver products in trading customers and consumers. The benefits

of these actions today through a stronger network, increased efficiencies and timely deliveries.

Now and then, even in the future the whirlpool focus is not simply on producing

products but more on the innovation and customer perception in creating them. Its major focus

is always on maximizing the benefits of their worldwide network of resources, which is

unmatched in the industry. They are creating better, more innovative products that improve

consumers' lives—in and around the home—each and every day. The company is always

committed in being an agile, global consumer products company that creates value through their

brands and innovations. With their compelling and growing brands, fueled with innovation, the

company always attracts and retain loyal customers for life.

17

GLOBAL SCENARIO OF WHIRLPOOL

COUNTRY KEY STATS BRANDS LOCATIONS

NORTH

AMERICA -No. 1 position in the

industry

-$7.9 billion of sales

-$810 million of

operating profit

-Approximately 31,000

employees

United States

KitchenAid,

Whirlpool,

Roper by Whirlpool

Corporation, Estate,

Gladiator

Canada

Inglis,Whirlpool,

KitchenAid

Mexico Whirlpool,

Acros,

Supermatic, Crolls

Headquarters:

Benton Harbor, MI

Manufacturing

Locations:

United States

Laverne, TN;

Findlay, OH;

Marion, OH;

Greenville, OH;

Clyde, OH;

Benton Harbor, MI;

Evansville, IN; Fort

Smith, AR; Tulsa,

OK; Oxford, MS

Canada

Montmagny, QC

Mexico Monterrey

EUROPE

- No. 3 position in Western

and

Central Europe

_ $2.7 billion in 2003 sales

_ $124 million in 2003

operating profit

_ Approximately 14,000

employees

Whirlpool,

Bauknecht,

Ignis, Polar, Laden in

France, KIC in South

Africa

Operations

Center: Comerio,

Italy

Manufacturing

Locations:

France Amiens

Germany

Neunkirchen,

Schorndorf

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Italy Naples, Siena,

Cassinetta, Trento

Poland Wroclaw

Slovakia Poprad

South Africa

Isithebe

Sweden Norrköping

ASIA Leader among Western

companies, with No. 1

market

position in India

_ $416 million in 2003

sales

_ $7 million in 2003

operating profit

_ Approximately 5,000

employees

Whirlpool

Headquarters:

Hong Kong, PRC

Manufacturing

Locations:

India Faridabad,

Pune, Pondicherry

China Shanghai,

Shunde

Whirlpool

19

CHAPTER-3

CONCEPT

20

Provides all the crucial information on Whirlpool Corporation required for business and

competitor intelligence needs

- Contains a study of the major internal and external factors affecting Whirlpool Corporation in

the form of a SWOT analysis as well as a breakdown and examination of leading product

revenue streams of Whirlpool Corporation

-Data is supplemented with details on Whirlpool Corporation history, key executives, business

description, locations and subsidiaries as well as a list of products and services and the latest

available statement from Whirlpool Corporation

Reasons to Purchase

- Support sales activities by understanding your customers’ businesses better

- Qualify prospective partners and suppliers

- Keep fully up to date on your competitors’ business structure, strategy and prospects

- Obtain the most up to date company information available

CONSUMER BUYING

BEHAVIOUR

The main aim of marketing is meeting and satisfy target. Customers need and wants buyer

behavior refers to the peoples or organization conduct activities and together with the impact of

various influences on them towards making decision on purchase of product and service in a

market. The field of consumer behavior studies how individuals, groups and organization select,

buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and desires

understanding consumer behavior and knowing customer are never simple.The wealth of

products and service produced in a country make our economy strong. The behaviour of human

being during the purchase is being termed as “Buyer Behaviour”. Customer says one thing but do

another. They may not be in touch with their deeper motivations. They are responding to

Influences that change their mind at the last minute. A buyer takes a decision whether save or

spend the money.

21

Getting accurate responses from the respondents due to their inherent problems were

difficult. They were partial, and refused to cooperate.

Since we did not had the privilege to work on a large scale, so many finding and

recommendations may not be as much in tune with their ground realities as may be

considered desirable.

Last but not the least, the time constraint faced in the project might have affected the

comprehensiveness of its findings.

MARKET-LEADER STRATEGIES

Market leadership is not simple for a firm. Other firms continually challenge its strength or try to

take advantage of its weakness. The leader firm might become weaker against new entrants and

rival firms. The leader can use one or a combination of three strategies.

1. Expand the total market strategy

The market –leader firms can normally gain the maximum when the total market

expands. The focus of the total market depends on where the product is in its life cycle.

2. Defending market share strategy

When the leader tries to expand the total market size, it must also continuously defend its

current business against enemy attacks. The leader firm must keep its cost down, and its

prices must be consistent with the value that consumer see in the product.

(a)Position defense

This strategy involves pouring maximum firm’s resources into its current successful brands.

To overcome a position defence an attacker therefore typically adopts an indirect approach

rather than the hear-on attack that the defender expects.

(b)Flanking defence

22

This strategy both guards the market position of leading brands and develops some flank

market niches to serve as defensive corner either to protect a weak front or to establish an

invasion base for counterattack, if necessary.

(c)Pre-emptive defence

This defence strategy maneuver involves the launching of an offence against an enemy

before it starts an offence. E.g. TITAN launched more brands called Insignia.

(d)Counter-offensive defence

This is to identifying a weakness in an attacker and aggressively going after that market

niche so as cause the competitor to pull back its efforts to defend its own territory. The

attacker has to deploy resources to this territory for defence.

(e)Mobile defence

This involves the leader broadening and expanding its territories into new market areas by

diversifying. The leader takes innovations works in both these direction. Diversification into

related areas is used in mobile defence.

(f)Contraction defence

This strategy involves retrenching into areas of strength and if often used in later stages of a

product life cycle or when the firms has been under considerable attack. Example HLL.

3. Expanding the market share strategy

Market leader can improve their profitability through increasing their market shares. Market

leaders are successfully at expanding their market shares like HLL, Procter and gamble etc.

MARKET –CHALLENGER STRATEGIES:

23

Defining the strategic objective. A market challenger must first define its strategic objective

which is usually defined as an increase in market share. In essence, the challenger can choose

to attack on any one of the types of firms:

It can attack the market leader. This is a high risk but potentially high pay-off strategy that

makes sense if the leader is not serving the market well.

It can attack firms of its own size that are not doing the job and are underfinanced.

It can attack small local and regional firms that are not doing the job and are underfinanced.

1. Frontal attack

2. Flank attack

3. Encirclement attack

4. Bypass attack

5. Guerilla attack

MARKET –FOLLOWER STRATEGIES:

A market –follower must be careful about how closely it follows a leader and challengers.

Too close an attack could result in a strong counter –offensive by the leader. The three useful

broad strategies are:

1. Following closely

2. Following at a distance

3. Following selectively

MARKET NICHERS’ STRATEGIES:

Successfully market-niches own their success to using one of these strategies to gain solid

market presence. Market niches must develop specific tactics to implement their strategic

choice to enable them to become market specialist. The nicer can play a role of specialist in

the following ways:

24

CHAPTER-4

RESEARCH

METHODOLOGY

25

OBJECTIVES OF THE STUDY

To assess the customer satisfaction level

Proper understanding and analysis of the WHIRLPOOL INDIA LTD.

To study the brand image of WHIRLPOOL INDIA LTD.

Proper understanding of promotional tools prevailing in the company.

To suggest the ways to promote WHIRLPOOL INDIA LTD.

To know strength, weakness, opportunities and threat of WHIRLPOOL INDIA LTD.

The objectives of study is to gain knowledge about the marketing mix offered by the company

The study focus Whirlpool and it’s competitors

The study reflects the various marketing strategies adopted by Whirlpool.

LIMITATIONS OF THE STUDY

The following are the limitations of the study:

The sample size was small and hence the results can have a degree of variation.

The response of the employees in giving information was lukewarm.

Organization’s resistance to share the internal information.

Questionnaire is subjected to errors.

LIMITATIONS

1) Time constraint- the duration of training was short, due to which it was difficult to collect

data.

2) Another constraint has been geographical area, which

is confined only to BHEL Power Sector.

3) Normally employees hesitate to disclose the

information.

26

4) Individual biasness is their among employees.

2.1 Significance of study

This study has an overview of Whirlpool Company or organization.

This study gain knowledge about the company.

This study focuses on overall industry.

This study focuses on Whirlpool and its competitors.

This study gives information about the competitors in the industry.

27

METHODOLOGY

RESEARCH PROCESS:

1) DEFINE RESEARCH PROBLEM:

The formulation of a general topic into specific research problem constitutes the 1st step in

research process. Essentially two steps are involved in formulating the

Research problem that is understands the problem theoretically and rephrasing the same into

meaningful terms from an analytical point of view.

2) EXTENSIVE LITERATURE SURVEY:

Once the problem is formulated a brief summary of it shift’s the return down. It is

compulsory for a research worker for writing a thesis for a PhD degree to write a synopsis

{brief summary} of a topic and submit it to the necessity committee at this research board for

approval at this researcher should undertake the extensive literature survey, i.e.: reviewing

concepts & theories and reviewing previous research findings.

3) FORMULATE HYPOTHESIS:

Hypothesis is tentive assumptions made in order to draw out a test it’s logical or empirical

consequences. Hypothesis should be very specific & limited for a peace of research in hand

because it has to be tested. Hypothesis provides a guide for researching which are limited to

the area of research and to keep him on the right track.

4) DESIGN RESERCH:

Research design is a conceptual structure with in which research would be conducted.

Research design involves the following consideration:-

a) Means of obtaining the information.

b) Availability & skill of the researcher & his staff.

c) Explanation of the way in which selected means of obtaining information will be

organized.

d) Time availability for research.

e) The cost factor relating to research.

28

5) COLLECTING DATA:

There are certain ways of collecting the appropriate data which differ considerately in

context of money, time, cost, & other resource at the disposal of the researcher. Data can be

collected through primary resources & secondary sources Primary sources include data

collection through surveys, Questionnaire, interview and observation. Secondary data can be

collected through book, magazines, journals, business reports or internet. The researcher

should select one of these methods of collecting data taking into considerations the nature of

the investigation, objectives and scope of research.

In form of primary data I have used questionnaire and in form of secondary data I have

taken data from multiple sources.

6) ANALYSIS OF DATA:

The analysis of data requires a member of closely related operation such as establishment of

faculties, application of these facilities to draw a data, to coding, tabulation and there drawing

statistical inferences. The unwieldy data is classified data into sum purposely and usable

categories.

7) INTERPRETATION & REPORT’S:

The process of interpretation explains the finding’s on the basis of some theories. The process of

interpretation quite often trigger of new practices in which in return may lead to further

researcher.

PRELIMINARY PAGES

MAIN TEXT

END MATTERS

I) The Preliminary pages:-

We include topic’s title’s, data, acknowledgement, list of tables, list of the content, list of

graphs & charts if any given in the report.

29

II) The main text:-

It includes the interaction, summary of findings, main reports and the conclusion.

III) The end matters:-

It includes appendices, bibliography and index in case of published reports

Data can be classified under the two main categories, depending upon the sources used for the

collection purposes. i.e., ‘Primary data’ and ‘Secondary data’. The validity and accuracy of final

judgment is most crucial and depends heavily upon how well the data is gathered in the first

place. The methodology adopted for data gathering also affects the conclusions drawn there

form.

Primary data:

Primary data are those data, which are collected by the investigator himself for the purpose of a

specific enquiry or study. Such data are original in character and generated by surveys conducted

by individuals or research institutions. Thus we can say that the data that is being collected for

the first time is called primary data.

Methods that can be used for collection of primary data are as follows:

Direct personal observation: under this method, the investigator presents himself

personally before the informant and obtains first hand information. This method provides

greater degree of accuracy.

Telephone survey: under this method the investigator, instead of presenting himself

before the informants, contacts them on telephone and collects information them.

Indirect personal interview: under this method, instead of directly approaching the

informants, the investigator interviews several third persons who are directly or indirectly

concerned with the subject matter of the enquiry and who are in possession of the

requisite information. This method is highly suitable where the direct personal

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investigation is not practicable either because the informants are unwilling or reluctant to

supply the information or where the information desired is complex or the study in hand

is extensive.

Information received through local agents: under this method, the information is not

collected formally by the investigator, but local agents, commonly know as

correspondents, and are appointed for the different parts of the area under the

investigation. They apply their own judgment as to the best method of obtaining

information.

Mailed questionnaire method: under this method, the investigator prepares a

questionnaire containing a number of questions pertaining to the field of enquiry. These

questionnaires are sent by post to the informants together with a polite covering letter

explaining in detail, the aims and objectives of collecting the information, and requesting

the respondents to cooperate by furnishing the correct replies and returning the

questionnaire duly filled in. the success of this method depends upon the proper drafting

of the questionnaire and cooperation of the respondents.

Questionnaire sent through enumerators: under this method, instead of sending the

questionnaire through post, the investigator appoints agents know as enumerators, who

go to the respondents personally with the questionnaire, ask them the questions given

therein, and record their replies

Secondary data:

When a person uses data, which has already been collected by someone else, then such data is

know as secondary data. Secondary data should be used with extra caution since someone else

has collected it for his/her use. Before using such data the investigator must be satisfied with

regard to the reliability, accuracy, adequacy and suitability of the data to he given problem under

investigation.

Methods that can be used for collection of secondary data are as follows:

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Published sources: there are a number of national organizations and international

agencies, which collect and publish statistical data relating to business, trade, labor, price,

consumption, production, etc. these publications of the various organizations are useful

sources of secondary data.

Unpublished sources: the records maintained by private firms or business house who

may not like to release their data to any outside agency are know as unpublished sources

of collection of secondary data.

Both ‘Primary data collection methods’ and ‘Secondary data collection methods’ have various

advantages as well as limitations. Thus it would be prudent to use both these methods to one’s

advantage.

Both Primary and Secondary data have been used in the thesis. More of secondary data has been

used.

Sampling:

Sampling refers to the procedure by which some members of a given population are selected as

representatives of the entire population.

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SWOT ANALYSIS

SWOT Analysis is a general technique which can find suitable applications across diverse

management function and activities but it is particular appropriate to the early stage of strategy

and marketing plan

SWOT involves generation and recording of strengths, weaknesses, opportunities and threats

concerning a task, individual, department or organization, it is customary to take account of

internal resources and capabilities (strengths & weakness) and factors external to the

organization (opportunities & threats).

SWOT Analysis is an effective way of identifying your strengths and weaknesses and of

examining the opportunities and threat.

What makes it particularly powerful is that with a little thought, it can help you uncover

opportunities that you are well placed to take advantage of. And by understanding your

weaknesses, you can manage and eliminate threats that would otherwise catch you unawares.

More than this, buy looking at yourself and your competitors using the SWOT framework, you

can start to craft a strategy that helps you compete successfully in your market.

The Whirlpool Corporation - SWOT Analysis company profile is the essential source for top-

level company data and information. Whirlpool Corporation - SWOT Analysis examines the

company’s key business structure and operations, history and products, and provides summary

analysis of its key revenue lines and strategy.

Whirlpool Corporation (Whirlpool) manufactures and markets a full line of major appliances and

related products, primarily for home use. The company operates in North America, Europe, Latin

America and Asia. It is headquartered in Benton Harbor, Michigan and employs about 67,000

people. The company recorded revenues of $17,099 million during financial year ended

December 2009 (FY2009), a decrease of 9.6% as compared with FY2008. The reason for

decrease in revenues was primarily due to lower appliance industry demand. The operating profit

of the company was $688 million during FY2009, an increase of 25.3% over FY2008. The net

profit was $328 million in FY2009, a decrease of 21.5% as compared with FY2008.

33

CHAPTER-5DATA ANALYSIS

&INTERPRETATION

34

QUESTIONNAIRE

Q1. Have you purchased any consumer durable during Exhibitions?

INTERPRETATION

66% of Customers have not purchased any consumer durable from exhibition and Only 34%

people have purchased. It shows that consumers are coming in the exhibition for knowledge of

product and also they want to know that weather there is actual price difference in exhibition and

shop or not.

35

Q.2While purchasing consumer durable which parameter influences you?

INTERPRETATION

.16% of customer gives importance to price. So it shows that Indian consumers are very price

sensitive. They give more importance to price over the brand whereas 20% give importance to

brand. So price and Brand matter a lots for the costumers. And they are also want best brand in

best price and durability18% because Service is also a big factor for the customer they are less

interested in the durability.

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Q3. From where you prefer buying consumer durables

INTERPRETATION

A majority of customers prefer to buy from showrooms. Very less proposition of customers buys

from Exhibitions 11% customers are prefer to by from the showrooms because the showrooms

are more convenient to customers they also think that these shops give more discounts. People

are less interested to buy from the exhibition they only visit the exhibition for price quotation of

the product and the comparison of the product.

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Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following

reasons.

INTERPRETATION

Customers buy from showrooms because of the service and convenience.

There are two main factors.

1.Customers are preferred to buy from the showroom because of they think that these convenient

store may provide good after sell service.

2. Customer also thinks that there is more chance to bargain and they can get more discounts in

these showrooms and Price also a factor that attract the customer in these showrooms.

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Q.5. How frequently you change your consumer durables?

INTERPRETATION

Customers prefer to change consumer durables within 3-5 years as 18% customers do not change

their consumer durable within 10 year. It represent that Indian consumer prefer to change their

consumer durable frequently.

39

Q.6.Do you prefer any financing scheme to purchase consumer durables?

INTERPRETATION

Majority of customers usual prefer financial scheme as a result 72% of the consumer prefer to

have financial scheme whereas 28% of the consumers says no

40

Q-8 Are you aware of warranty period of the products?

INTERPRETATION

58% of the consumer agrees to the fact that they are aware of the product warranty period where

as 42% of the consumers says that they are not aware of the warranty period of the products.

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Q-9 Do you know which product parts are under warranty?

INTERPRETATION

56% of the consumers feels that they have knowledge that which products parts are under

warranty whereas 44% says that they don’t have knowledge.

42

Q-10 whether you are satisfied with after sales service of whirlpool?

INTERPRETATION

64% of the consumers says that service man come as prompt as said by them whereas 30% says

no and 6% consumers can’t say about this.

43

CHAPTER-6

FINDINGS

&

SUGGESTIONS

44

FINDINGS

• 20 % of the customers responded that their overall experience to accessibility and responses

through Telephone is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of

the customer. Final 20 % is not so satisfied so they said that the service is fair

• 20 % of the customers responded that their overall experience to accessibility and responses

through E-mail is Excellent. Next 20 % says it is very good. Good being awarded by 40 % of the

customer. Final 20 % is not so satisfied so they said that the service is fair

• 19 % of the customers responded that their overall experience to ability to help resolve issue or

need is Excellent. Next 21 % says it is very good. Good being awarded by 28 % of the customer.

24 % is somewhat satisfied so they said that the service is fair. 9 % is not satisfied with the

service.

• 21 % of the customers responded that their overall experience with DHL

clearance department is Excellent. Next 19 % says it is very good. Good being

awarded by 18 % of the customer. 38% is somewhat satisfied so they said that

the service is fair. 5 % is not satisfied with the service.

• 11 % of the customers responded that their overall experience with DHL clearance department

is Excellent. Next 31 % says it is very good. Good being awarded by 50 % of the customer. 5 %

is somewhat satisfied so they said that the service is fair. 3 % is not satisfied with the service.

• 19 % of the customers responded they are Extremely Satisfied with the service. Next 25 % they

are satisfied. Neutral is 22 % of the customer. 23 % is somewhat satisfied so they said that the

service is fair. 3 % is not satisfied with the service.

• 64 % of the customer responded in favour of recommending DHL Express to others. On the

other hand 36 % of the people say No to recommend DHL Express to others.

45

• 69 % of the customer responded in favour that loyalty towards DHL Express has grown

stronger. On the other hand 31 % of the people say No that loyalty towards DHL Express has not

grown stronger.

• 51 % of the customer responded in favour that DHL Express Values people & Relationships

ahead of Short-term goals. On the other hand 49 % of the people say No that DHL Express do

not Values people & Relationships ahead of Short-term goals.

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SUGGESTIONS

1. Whirlpool needs to increase the number of BTL (below the line) activities to

generate common awareness and visibility at grassroots level, because it can be

understood from the figures of their competitors BTL activities that Whirlpool BTL

activities is not up to the that mark in comparison to other competitors.

2. In Delhi market dealers don’t want to put direct push effort on brands that’s why

unlike other cities market where if a dealer deals in LG they prefer not to deals with

its direct competitor Samsung, but in Gujarat every dealer is having collection of

brands, they want to be ready for everything like whatever customer demands they

can easily find out in their store. Currently Whirlpool is available with most of the

major dealers in Delhi, Whirlpool needs to focus on those dealers also where it will

not face direct competition with LG and Samsung , a small and dedicated brand

dealer will work not only for margins but they also can see the future opportunities in

form of Whirlpool.

3. Good thing about Whirlpool is that they got somehow success in positioning

themselves as a quality brand the customer survey and the dealer’s survey tells the

story about it. People perceived Whirlpool as a good product quality brand. If this can

be associated with better pricing also there will be immense possibilities for

Whirlpool. Need to create a value for money brand image which can give good

product quality at affordable prices.

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4. Whirlpool needs to build strong dealer relation in order to provide better “place”

strategies for the brand. Whirlpool lacks in company support factors and most of the

existing dealers in the dealer survey said that. Like most of the companies are having

their regular company dealers meet to get together with their dealers, Whirlpool lacks

needs to do this in order to regain dealer support

5. Service arrangements need to be strengthen, still people thinks that because the

company is having foreign origin and it is new too, if they will purchase any product

they will face service problem in future. Customers in rural areas are not aware of the

service call center facilities and don’t know how do it, company is not having the

service centers also there in those area , customers passes the complaints to dealers,

and dealers to distributors, and finally distributors has to log this complaints to the

call center, which creates overburden for them.

6. Any one accepts that as a fully fledged brand, Whirlpool can only compete with the

Korean giants LG and Samsung. Product lines and variants in the refrigerators should

be increased to give wider option to choose from to the customer because the

Whirlpool refrigerators could be proved as a benchmark product for Whirlpool

because of its unique differentiation with others.

7. Most of the products are simple in looks, in refrigerators segment even the logo on

refrigerators are not attractive as compare to others.

8. Whirlpool should adopt aggressive marketing strategies to cut down competition and

visibility at market place.

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9. Appropriate product knowledge should be given by the company to dealers and to

dealers to create awareness towards quality.

10. Products should be more attractive refrigerators looks very simple and ordinary

especially direct cool refrigerators Entry level Refrigerators can do better because of

price and capacities.

11. Whirlpool has good presence in the market but one thing is also evident that Whirlpool

is present in major counters with LG and Samsung, Whirlpool also need to focus on

those dealers were it will not face direct competition with LG and Samsung.

Competitive strategy should be like this where first Whirlpool should wipe out smaller

brands compare to LG and Samsung because this brand also have market share larger

than Whirlpool, and Whirlpool is not in competition of LG and Samsung it should

target on brands like Godrej , TCL first, so it can compete the bigger brand later on.

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CONCLUSION

50

CONCLUSION:

Nearly five years ago, Whirlpool Corporation set out on a course to reach the homes and hearts

of customers around the globe. By listening intensely to their customers, understanding their

needs and desires, and creating innovative solutions that meet and exceed those needs,

Whirlpool’s organizations worldwide are building unmatched levels of customer loyalty to the

brands.

“ Its about innovation, eco efficiency and the consumer”

The driving and the major elements the company considers are the

Innovation

Eco friendly in nature

Consumer

In this present world and in this emerging scenarios of business whirlpool has

exactly aimed on the aspects which it has to be.

“Through increased speed to market and international project

teams, we’re changing the way we do business.”

Time being the major concern for any person in the world the company has attained a beautiful

place in establishing a standard of producing products and placing products delivering them on

time when needed

“I make quality products that help people express their personal styles”

Personal belonging toward s anything is a major aspect for a human being in driving towards it

interest in attaining it.so whirlpool has got its uniqueness in producing products according to

lifestyles of individuals.

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BIBLIOGRAPHY

52

BIBLIOGRAPHY

References:

1.Marketing research, G.C.Beri, Third Edition, Tata

McGrawHill Publishing Company Limited, New

Delhi, 2000

2.)Marketing management, Philip Kotler, Twelth

(Millennium) edition, Prentice-Hall of India

Private Limited, New Delhi, 2003

1. http://www.whirlpoolcorp.com

2. whirlpool annual report 2008.pdf

3.Implementing global marketing strategy.pdf

Whirlpool Corporation

4. Building a House of Brands: Whirlpool Corporation’s

Blueprint for Success.pdf

5. http://en.wikipedia.org/wiki/Whirlpool_Corporation

53

ANNEXURE

54

Q1. Have you purchased any consumer durable during Exhibitions?

(A) Y (B) N

Q.2While purchasing consumer durable which parameter influences you?

(A)BRAND (B)DURABILITY (C)PRICE (D)PRODUCT FEATURE (E) SERVICE

Q3. From where you prefer buying consumer durables

(A) COMPANY SHOPEE (B) SHOWROOM (C) EXHIBITION

Q.4.You prefer to buy from the same as you have mentioned in Q.3 because of following

reasons.

(A) QUALITY (B) ORIGINALITY (C) PRICE

Q.5. How frequently you change your consumer durables?

(A) 2YEAR (B) 3 YEARS (C) 4 YEARS (D) 5YEARS)

Q.6.Do you prefer any financing scheme to purchase consumer durables?

(A) YES (B) NO

Q-8 Are you aware of warranty period of the products?

(A) YES (B) NO

Q-9 Do you know which product parts are under warranty?

(A) YES (B) NO

Q-10 Does the service man come as prompt as said to you?

(A) YES (B) NO

55