Internship report

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Internship report

  1. 1. Internship Report On “A Study on Consumer Behaviour with Reference to Whirlpool Refrigerators” for Whirlpool of India Ltd Submitted to Acharya School of Management Hesaraghhata Main Road Bangalore – 560 090 Submitted by Sanjay Kumar Post Graduate Diploma in Management Batch – (2011-2013) (Roll No-ASM1103014) Page | 1
  2. 2. DECLERATION I Sanjay Kumar, a student of Acharya School of Management PGDM (20112013) Batch declare that every part of the project report “Consumer Behaviour of Whirlpool of India Ltd” that I have submitted, is original. I was in regular contact with the nominated guide and contacted several times fir discussing the project. Date of Project Submission - …………………….. Faculty’s comments (Prof. Ravi Kumar) Mr. Sanjay Kumar Page | 2
  3. 3. ACKNOWLEDGEMENT I would like to heartily thanks to Miss. Malini, Department manager of Reliance digital store (J.P Nager 2nd Phase Bangalore) that she allowed me to pursue my internship in her retail store. I also would like to express my heartiest gratitude to my project guide, Mr.Rajveer Chauhan (Internship in-charge of Whirlpool of India Ltd) for guiding me throughout the project. His constant guidance and support enabled me to accomplish the project successfully. My special thanks to extend to all the staffs of Reliance Digital for their valuable guidance, regular encouragement and inspiration and valuable insight s throughout the 45 days of internship. Also I would like to thank my Dy. Director & Dean Prof. UK Ashoke Rao, he gave me opportunity to do summer internship in Whirlpool of India Ltd. Also I would like to thank my internship Guide Prof. Ravi Kumar for guiding to undertake the project and finalizing the report. Page | 3
  4. 4. TABLE OF CONTENT Serial No. 1 Title Page No. Declaration 2 2 Acknowledgement 3 3 Executive Summary 5 4 7 5 Objective & Hypothesis of the Study Industry Profile 6 Company Profile 11 7 Mission & Vision 18 8 Whirlpool Leadership 28 9 Swot Analysis 31 10 Marketing Mix 34 11 Research Methodology 36 12 Types of Research Design 40 13 41 14 Results and Discussions/Findings Major Learning 15 Findings & Conclusions 51 16 Suggestions 52 17 Questionnaire 53 8 50 Page | 4
  5. 5. EXECUTIVE SUMMARY In my summer internship, I have done my project in Whirlpool of India Pvt. Ltd. As I was asked to promotion for newly lunched Whirlpool refrigerator (Neo- Ichill) in one of the popular retail sector “Reliance Digital (J.P Nagar 2 nd Phase, Bangalore)” and the topic I have been provided to do research and make report is “Consumer Behavior and competitive study of different brands Vs Whirlpool in Refrigerator segment. In India, consumer durable sector is rising with the increase income of public. The durables section consists of refrigerator, washing machine, air conditioner, Television, Microwave etc. The segment I had to research was on refrigerator. In India, demand of home appliances increases day by day which in turn increases the competition in refrigerator market as well. Refrigerator industry in India examines the evolution of industry in India over the years. It examines the structural changes in the industry after liberalization of the Indian economy. Few companies like Kelvinator, Godrej, 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, Samsung, Whirlpool, Hitachi, and Panasonic came into the picture. In India, refrigerators have the 2 nd highest aspirational value of all the consumers’ durables with the exception of television. This account for the high growth of the refrigerator market. Refrigerators are presently being manufactured in 2 basic designs, which are referred as direct cool (DC) and frost free refrigerators (FF). The direct cool segment continues to dominant the Indian refrigerator market compared to more expensive frost free models. Page | 5
  6. 6. This research mainly provides the marketing strategy of whirlpool refrigerators and the comparison with its strong competitor in refrigerator segment, LG, Samsung. The report begins with the market overview section that gives an insight into the consumer durable industry, its market size and segments. This is followed by the overview of the domestic refrigerator market in India, which includes the market size and growth, as well as the market share of major players, with a brief description of the penetration level of various consumer durable products. Distinction between various types of refrigerators on the basis of their mechanism and features is also included in this section. Page | 6
  7. 7. Objectives & Hypothesis of the study Objectives  The main objective of the survey was to know Consumer Behavior and competitive study of different brand in refrigerators segment.  To find out which was the earlier brand owned by the people.  To know the satisfaction level.  To know the reason for buying Whirlpool refrigerators.  To examine preference of consumer in selected brands (Whirlpool, LG, and Videocon) of 200 Lts. Refrigerators on the basis of price, Brand Name and Quality.  To study the influence of various factors on the purchase of Refrigerators o Price. o Quality. o Brand Awareness.  To know about the marketing skills use while convincing the customers. Hypothesis The after sales services provided by Whirlpool are far much better than the competitors.  The quality of refrigerators of Whirlpool is better than its competitors.  Promotional activities of Whirlpool are less in number.  In shop displays of Whirlpool’s product is less as compared to its competitor. Page | 7
  8. 8. INDUSTRY PROFILE Indian Refrigerator Market: A whooping increase of around 45-50% in the consumer durables market in India has seen the upsurge of many companies entering into this sector. With liberalization fever in the air for last 7-8 years and the penetration of refrigerators nearly 10% of the organized sector activities, the refrigerator market is expected to grow at 20% per annum by the year 2002. Also 20.7% of all households will own a refrigerator in the next three years against to current 10%. As of now, the entire durables industry in India is in a state of flues. The full impact of liberalization on the market is yet to be felt. The Rs. 1200 crore refrigerators market in particular has been very interesting. The No. 1 position of Kelvinator has been lost out to Godrej in the recent times. Godrej in collaboration with the global leader GE has launched frost-free refrigerator. Samsung, Daewoo has already started building up a base in the market. Not for hind are the economical Videocon & Stylish BPL, who too have starting attracting the niche segments. Thus, with the foray of MNC’s & the existing brands’ redesigning their marketing strategies, the competition in the industry has ready heated up. How the market will respond to the launch of a large no. of world- class brands in quick succession & the dramatic increase in the level of marketing activities that it would entail, is major question for which there are no reliable answers. The changes in the offing, affect the entire range of durables at the same time & therefore, the priorities across a basket of durables will come into play. Page | 8
  9. 9. Whirlpool’s presence in India can be traced back to the year 1989, when it established a joint venture with the TVS group to enter the Indian market. In 1995 Whirlpool took another step forward and the merger with Kelvinator of India heralded its entry in the refrigeration business. In 1996 Whirlpool of India, (WOI), came into being with the merger of washer and refrigerator businesses. The tremendous potential of the India market can be gauged from the fact that in this country there is a growing middle class whose consumption and living standards today are comparable to those of western economies in the 1960s. This places India on the threshold of phenomenal economic growth. Whirlpool is trying to capture the market for its recent product range that is for the Air-conditioners and Microwave ovens. This will help a lot in making customers brand loyal as well as eating a lion’s share in the market. RETAIL INDUSTRY Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer and the emergence of organized retail formats have transformed the face of Retailing in India. With the sign of reemergence of economic growth in India, consumer buying in retail sector is being projected as a key opportunity area. As a consequence, Indian corporate houses are refocusing its strategic perspective in retail marketing with the idea to use resources optimally in order to create core competence and gain competitive advantage. The paper theme is to analyze finer strategic perspective for the retail sector in India and suggest measures so that the corporate strategists could incorporate Page | 9
  10. 10. The same both qualitatively and quantitatively. Based upon the qualitative judgment, a retail unit may be given an overall understanding about the expected performance that can further be corroborated by quantitative analysis. Retail trade has emerged as one of the largest industry contributing to employment generation, revenue generation, increased turn over and many more. Organized retailing is showing signs of enormous creativity. It. has emerged as one of the most dynamic and fast paced industries with several players entering the market. As a matter of fact retailing in India is gradually edge its way towards becoming the next boom industry. This paper provides detailed information about the growth of retailing industry in India. It examines the growing awareness and brand consciousness among people across different socioeconomic classes in India and how the urban and semi-urban retail markets are witnessing significant growth. The paper includes growth of retail sector in India, strategies, strength and opportunities of retail stores, retail format in India, recent trends, and opportunities and challenges. This paper concludes with the likely impact of the entry of global players into the Indian retailing industry. It also highlights the challenges faced by the industry in near future. Major players in home appliance segments:       Whirlpool Samsung LG Godrej Hitachi Panasonic Page | 10
  11. 11. Company profile Whirlpool 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 sting 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. Page | 11
  12. 12. Whirlpool of India Ltd is a leading manufacturer of home appliances. The company is primarily engaged in manufacturing and trading of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens and small appliances and caters to both domestic and international markets. They also provide services in the area of product development, information technology, accounting and procurement services to Whirlpool Corporation, USA and other group companies. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing setups features an infrastructure that is witness of Whirlpool's commitment to consumer interests and advanced technology. The company exports their product to Russia and East European countries and exports small appliances to the USA under the Kitchen Aid brand. Whirlpool of India Ltd was incorporated in the year 1960 as Kelvinator of India Ltd. The company was formed in collaboration with Kelvinator International Corporation, USA for the manufacture of refrigerators compressors and allied products. In the year 1974, they established a factory for the manufacture of electrical grade stampings in collaboration with Thermal Refrigeration Ltd, UK. In the year 1975, the company established a modern tool room for the manufacture of tools dies jigs and fixtures. In the year 1976, they established a factory for the manufacture of electromechanical cash registers in collaboration with Gross Cash Registers Ltd, UK. Aravalli Svachalit Vahan Ltd, a sick unit at Alwar merged with the company with effect from May 26, 1982. In the year 1985, the company entered into a collaboration agreement with White Consolidated Industries Inc, USA for the manufacture of washing machines. In the year 1986, they introduced a 300litre 2-door refrigerator for the lower and middle class consumers. In addition, they introduced a single speed (VIP-1) and 3-speed kick-start (VIP-3) along with two new models of cash registers. In the year 1993, the company entered Page | 12
  13. 13. into a tie-up with Whirlpool Corporation USA whereby Whirlpool contracted to purchase from White Consolidated Industries Inc, USA. Also, Expo Machinery Ltd, a wholly owned subsidiary merged with the company. In November 1995, the Whirlpool brand was launched along with a new 310-litre refrigerator. In the year 1996, Whirlpool Washing Machines Ltd merged with the Kelvinator India Ltd and the company changed their name from Kelvinator of India Ltd to Whirlpool of India Ltd. The Pondicherry washer unit introduced a re-styled version of a fully Automatic Washing machine and a 3.5 Kg Twin-tub machine under the Whirlpool brand. In the year 1997, the company signed a MoU with Intrinsic Automation System Pvt. Ltd. for the hiving off their electronic cash register division. They launched a venture consumer finance company in association with Apple Industries. In the year 1998, the company launched range of state of the art non-CFC frost-free refrigerators. In September 1998, Whirlpool Financial India Pvt. Ltd. another group company of whirlpool Corporation and a wholly owned subsidiary of Whirlpool Financial Mauritius Ltd merged with the company. In the year 2000, the company expanded their product range by launching Air conditioners and Microwave Ovens for the first time. In the year 2001, they launched an indigenously developed Coffee Grinder, Bag Dryer and Voltage Stabilizer. In the year 2002, they launched Magic Cool series of Air conditioners, both Windows and Split type. During the year 2003-04, the company won a major order for Manufacturing and Export of Portable Home Appliances for the US market under the prestigious 'Kitchen Aid' brand. The company converted a part of the Pondicherry facility into an Export Oriented Unit to maximize the benefits and promote further exports. In December 2003, they launched a new range of Fully Automatic Washing Machines. In May 2004, the company launched new refrigerators in the 'ice magic frost-free range'. They entered into a distribution tie up with Faber India Page | 13
  14. 14. during the year. In April 2005, the company launched 'Genius' a direct cool refrigerator of 180 litters and premium range of window air-conditioners, namely 'Magic Cool'. They also launched new Iceberg refrigerators during the year. During the year 2005-06, the company opened four new call centers in B class towns & non-metro cities to facilitate easy consumer access. In addition, as a part of the process innovation initiative, 'Hotlines' were installed in key trade partners? Locations to provide direct link to the call centers and service partners. During the year 2006-07, the company launched two new refrigerators, Whirlpool Delight in low capacity Frost Free and Fusion in high capacity Direct Cool. In April 2006, the company launched a Washing Machine - Splash, which is Fully Automatic Top Load. In September 2006, they launched Sparkle and Verve in the Semi-Automatic Washing Machine segment and Sensation Classic in Fully Automatic Front Load. In addition, they launched a Microwave (Jet Chef) during the year. During the year 2007-08, the company introduced Whirlpool Microwave Ovens with sixth sense technology. They also launched Power Inverters during the year. In July 2007, the company introduced a stylish and highly featured range of Built-In appliances, imported from Whirlpool Europe. In January 2008, they introduced Whirlpool Purifies, a range of Water Purifiers throughout the country. The company was also awarded the NDTV Profit Business and Leadership Award 2008 for 'The Best Consumer Durables Company' as an industry leader. In April-May 2008, the entire range in Direct Cool was refreshed with the re-launch of Genius and Fusion brands. In October 2008, the Direct Cool range was augmented with the launch of Fusion 180-litre, the first product in the entry level to have a frost control feature. In January 2009, they launched a completely new range of fully automatic top load and front load washing machines, including the high capacity models, under White Page | 14
  15. 15. Magic and Professional brands. The semi-automatic ranges were also augmented with a 'plastic cabinet' washing machines. Now in 2012 this company launched one new Fridge that is called Neo iChill (Neo Series of Whirlpool). Thus, in short 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 Page | 15
  16. 16.  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 World’s largest white goods company.  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: Whirlpool OF India” was awarded the NDTV Profit Business & Leadership Award 2008 for “The Best Consumer Durables Company Page | 16
  17. 17.  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. Page | 17
  18. 18. Mission Everyone, Passionately Creating Loyal Customers for Life. Whirlpool mission defines the focus and what it does differently to create value. It’s 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. 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. Page | 18
  19. 19. 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 honourably – ever mindful of the long-time 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 honours 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. Page | 19
  20. 20. 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 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 an individual customer loyalty with its services. Page | 20
  21. 21. 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 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.” Product Range The product range covers a wide variety of products from Refrigerators to Fabri care; from Air Con 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 Page | 21
  22. 22. Product range refrigerators: MODEL NAME FEATURES MODEL MODEL LOOK CAPACITY & MRP . Makes ice faster than any other ICEMAGIC – 190L Dlx: Rs.10350 fridge 210L Dlx: DIRECT COOL . Multi- Rs.11425 purpose chiller 190L Elite: Rs.11025 . External control for 215L Elite: easy Rs.12050 defrosting 260L Elite: . Rs.13500 Contemporary international look Page | 22
  23. 23. 220L Dlx: . Makes ice super quick ICEMAGIC – . Quick Rs.14100 220L Elite: Rs.15225 cooling 250L Dlx: system Rs.15900 . Digital 250L Elite: convenience Rs.16800 . Auto power 285L Elite: save Rs.18700 . Door open 350L Elite: alarm Rs.27000 . Quick serve FROST FREE 380L Elite: Rs.32000 420L Elite: Rs.35500 . India’s largest single door fridge 310L . Spacious FLEXIGERATOR interiors – DIRECT COOL . No CFC Flexigerator: Rs.1427516850 Page | 23
  24. 24. . Flexible design to adjust your changing needs . Stores 8 large bottles in the door MASTERPIECE – DIRECT COOL . Special utility bin 170L Masterpiece: Rs.822510700 . Unique 7 year protection plan . Stores 8 large bottles in the door 170L CORONA ELITEDIRECT COOL . Special utility bin . Unique 7 Corona: Rs.890011250 years protection plan Page | 24
  25. 25. Neo I chill Spacious with gel pack and deep freeze 340l to 450l Rs 27500 to 40000 technology. Strategy Execution The main strategy of the whirlpool is building strong brands, which has loyal consumer base. Whirlpool is trying to build trustworthiness of the customer and lead the customer life easier. Whirlpool mainly 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 always had a continuous 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 can be seen 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. Page | 25
  26. 26. 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, fuelled with innovation, the company always attracts and retains loyal customers for life. Segmentation The Refrigerator industry for Whirlpool can be segmented on the basis of social class and income group (demographic segmentation). Whirlpool has done the market segmentation as given below. Segment Category Sub-brand` Characteristic Low income Economy 170L Looking for Masterpiece, low price rural class 170L Corona Middle income bracket of semi Standard Ice magic Direct cool Value for urban Page | 26
  27. 27. 190L & 210L consumer Upper middle Premium money Ice magic income bracket Direct cool of urban (190L– consumer 260L), High quality IcemagicFrost free (220L-250L) & Flexigerator Upper class Super premium 285L- 420L Unique urban ice magic- attribute, sophisticated frost free image. Page | 27
  28. 28. WHIRLPOOL LEADERSHIP Jeff M. Fettig became Whirlpool Corporation's chairman and chief executive officer, effective July 2004. He served as president and chief operating officer and was first elected to the Whirlpool board of directors in June 1999. Fettig joined Whirlpool in 1981 as an operations associate. He held a number of managerial positions in Operations, Sales, Planning and Product Development before being promoted to vice president, Marketing, Kitchen Aid Appliance Group in July 1989. In October 1990, he was named vice president, marketing, for the Philips Whirlpool Appliance Group of Whirlpool Europe B.V., the company's European subsidiary, and he was named vice president, Group Marketing and Sales, North American Appliance Group, in October 1992. In 1994 he was named an executive vice president of Whirlpool and president, Whirlpool Europe and Asia. Fettig also serves on the Board of Directors of The Dow Chemical Company. A native of Tipton, Indiana, USA. Fettig holds a bachelor's degree in finance and a Master of Business Administration from Indiana University. Mr.RajJain, the Managing Director of Whirlpool of India Limited joined Whirlpool in 1996 and has held various senior management positions within the company. Prior to his current elevation Page | 28
  29. 29. Mr. Raj was the Executive Director and was responsible for marketing, sales, consumer services and logistics. He has also held the position of Vice President? Sales and before which he headed the setting up of Whirlpools Frost Business in India with an investment of over $80mn. Prior to joining Whirlpool he had a stint of 16 yrs. with Unilever in India and overseas in various assignments in Marketing, Sales and Project Management. He also worked with Unilever in UK for a period of 3 years as a part of marketing launch team on Pan European basis. OTHERS MEMBER INCLUDES: Board of Directors o Arvind Uppal (Chairman & Managing Director) o Anil Berera o Mr. Sanjiv Verma o S.J. Scarff o Anand Bhatia o Mr. Vikas Singhal Audit Committee o Anand Bhatia, Chairman o S.J. Scarff o Anil Berera Page | 29
  30. 30. Directors Remuneration Committee o Anand Bhatia, Chairman o S.J. Scarff o Sanjiv Verma o Investors Grievance Committee o Anand Bhatia, Chairman o Arvind Uppal o Mr. Anil Berera o Share Transfer Committee o Mr. Anil Berera o Mr. Ravi Sabharwal o Mr. Vinay Kumar Page | 30
  31. 31. SWOT ANALYSIS STRENGHTS:     Large experience executive team Market leader Large market share Big brand name Global operating platform  Best trade position WEAKNESS:  After product service  Lack of strategy  Reducing market share OPPOURTUNITIES:     To arrange capital Provide attractive schemes Growing Asian market Launching new products  Refrigerator category growing at a larger rate THREATS:  Samsung, LG and other are the competitors  Reducing market share  Increase raw material cost  Distributors getting angry and leaving the network RECOMMENDATIONS:  Motivate distribution channels  Needs more aggressive and competitive promotions  Healthy environment between top executives  Launch sideways doors refrigerators Page | 31
  32. 32. SCOPE In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in the world and is expected to overtake Japan in the near future to become the 3rd largest. Indian consumer goods market is expected to reach $400 billion by 2010. India has the youngest population amongst. The major countries. There are a lot of young people in India in different income categories. Nearly two- thirds of its population is below the age of 35, and nearly 50 % is below 25. There are 56million people in middle class, who are earning US$ 4,400- US$ 21,800 a year. And there are 6million rich households in India. The upper-middle and high-income households in urban areas are expected to grow to 38.2 million in 2007 as against 14.6 million in 2000.Rural sector offers huge scope for consumer durables industry, as it accounts for 70% of the Indian population. Rural areas have the penetration level of only 2% and 0.5% for refrigerators and washing machines respectively. The urban market and the rural market are growing at the annual rates of 7%10%and 25% respectively. The rural market is growing faster than the urban market. The urban market has now largely become a product replacement market. The bottom line is that Indian market is changing rapidly and is showing unprecedented business opportunity. Page | 32
  33. 33. TARGETING Whirlpool of India has intelligently targeted level, middle and upper class income groups, as this is the group looking for better products and willing to pay a little premium for international quality products. Whirlpool believed that with rising income and increasing westernization, it could upgrade the refrigerator market and consumers could be willing to pay a few rupees more for a quality product. Whirlpool realized that 85% of the Refrigerator market comprised and reliability played a major role in their purchasing decision. Positioning In the refrigerator market, which is heavily cluttered both in terms of brand varieties and corresponding messages, it is very difficult to differentiate and position a product as mundane in the mind of consumers to show him to become a loyal user. Whirlpool of India positioned itself as a company of global structure, but one, which listened carefully to its local customer. For instance, it showed an engineer of foreign origin. Explaining how the compressor was modified to stand up to high voltage fluctuations based on feedback from Indian housewives. Page | 33
  34. 34. MARKETING MIX Product Product is anything that can be offered to a market for attention, acquisition, and use of consumption that might satisfy a need of want. The product can be look at five levels. The core product is the essential service that the buyer is buying. In this case it is the cooling effect. The Generic product is a refrigerator the expected product is a set of attributer that the buyer expected to get. In this case efficiency of cooling and chilling is important. Augmented product is that what is provided by the seller beyond the expected product attributer lie those attributes that seek to distinguish the products from other in its category, Whirlpool refrigerator is put across as a complete refrigerator for Indian condition. It provides long life HTC compressor which is specially designed to fight voltage fluctuations. Potential Product refers a set of possible new features that might eventually be added to the product being offered. Refrigerators as a product does not offer much and cope beyond changes in design and materials but whirlpool refrigerator provide lot of unique feature Page | 34
  35. 35. to make it potential product like. Adjustable door trims, fully flexible door shelves, clean back or external condenser, Fold-back shelf etc. Creation of Product The whirlpool range of refrigerator are designed and manufactured with utmost care, to ensure to give trouble free performance for years. The whirlpool provides more flexibility than any other refrigerator and provides complete freedom to create space as per need. Price Whirlpool has followed a pricing strategy so as to appeal to the mass-market buyers. Whirlpool believed that with rising incomes and increasing westernization. It could upgrade the refrigerator market and consumers will be willing to pay a little more for a quality product. Hence prices are kept 3% more than the nearest competitor, Godrej, refrigerator i.e. the premium for a quality product. Place Whirlpool firmly believes in taking its values and philosophy into its supply chain. The company’s commitment extends to encompass its extensive network of distributors and dealers who are looked upon as partners in growth, and an integral part of the whirlpool family The products are transferred from factory to carrying and forwarding agents (C& FAs). The C& FAs dispatch the goods to direct dealers or distributors who further supply the retailer. Page | 35
  36. 36. Research Methodology Research:Research in common refers to a search for knowledge. Research can also be defined as a specific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced leaner’s Dictionary of current English lays down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge”. Marketing research is the systematic design, collection, Analysis and reporting of data and findings relevant to a specific marketing situation or problem”. Research Methodology:Research Methodology may be understood as the science of study how research is done significantly and scientifically. The objective of this section is to describe the research procedure and methods that have been adopted for the achievement if the project objectives. The research methodology adopted for the study, which is intended to examine the consumer Behaviour in selected brand (Whirlpool, LG, and Videocon) of 200 Lts Refrigerators on the basis of price, Brand Name, Quality & after sales services in the Region of J.P Nagar 2nd Phase (Bangalore).  Nature of Research – Quantitative & Qualitative  Data collection – Primary data & Secondary data  Sample size – 100 customers of Refrigerator at Reliance Digital, J.P Nagar Bangalore  Sampling Area - Reliance Digital, J.P Nagar Bangalore. Page | 36
  37. 37. Data Collection:Data collection includes the type of data & the source of data that I used while doing a project. The data is collected from both Primary data and secondary data sources. Primary Data:- Primary data is the data which is new. I use the primary source to collect the primary data. Primary source include personal meeting/Interviewing methods. As primary sources of data I have filled the Questionnaires from different customers who were using different brands of Refrigerators of 200 Lts (Whirlpool, LG, and Videocon). Under my research following are the ways through which I derived the primary data:  Interview to the dealers.  Interview to the customers.  Telephonic interview. Questionnaire:A Questionnaire is prepared to examine the Behaviour in selected brand (Whirlpool, LG, and Videocon) of 200 Litters Refrigerators. The language of Questionnaires should be so simple and Easy so that everyone can answer easily. These questions have helped me to study the Behaviour of consumers. Secondary Data:The data which is already in existence is known as secondary data. Secondary sources include websites, Brochures of the respective companies, various papers and magazines published from time to time. Page | 37
  38. 38. Under my research secondary data were as follows:  Internet.  Monthly Magazines.  Whirlpool official website.  Whirlpool journals.  Customer Database provided by whirlpool. Research design A plan for collecting and utilizing data so that desired information can be obtained with sufficient precision or so that a hypothesis can be tested properly. This is research design. It could be also said as a framework or plan for a study that guides the collection and analysis of the data. Sampling Design:It includes size of sample & technique that I used for selecting the different items from the sample. A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique that the researcher adopts in selecting items for the sample. It should be ensured in the sampling process itself that the sample selected is representative of the population. Sample size:By sample size we mean that the number of people to be selected from the population to make a sample. A sample size should be sufficient enough that can serve our purpose. It should have Efficiency, Flexibility, and Reliability. My sample size is of 100 people of JP NAGAR (Reliance Digital) those are using the refrigerator. Sample Unit:Sample unit is individual customer of JP Nagar (Bangalore) whose Preference has to be examined. Page | 38
  39. 39. Sample technique: This is the type of technique that one uses to select the items for the sample. The sampling method that I have used is JUDGEMENTAL SAMPLING. Which is a type of NON PROBABILISTIC SAMPLING? ANALYTICAL TOOL:The tool that I have applied on my research report is Multidimensional scaling & Correlation analysis. Correlation Analysis: Correlation analysis refers to the techniques used in measuring the relationship between the variables. According to Simpson and Kafka “correlation analysis deals with the association between two or more variables”. It helps in determining the degree of relationship between two or more variables but it does not tell us anything about cause and effect relationship. Types: - Correlation is classified in several different ways. Three of the most important ways are  Positive or negative  Simple partial or multiple  Linear or non-linear There are two types of variables  Static- Consumer preference  Dynamic- Brand Name, Price, Quality, after sales Services. Page | 39
  40. 40. TYPES OF RESEARCH DESIGN Exploratory Research Designed to generate basic knowledge, clarify relevant issues uncover variables associated with a problem, uncover information needs, and/or define alternatives for addressing research objectives. A very flexible, open-ended process. Descriptive Research Designed to provide further insight into the research problem by describing the variables of interest. Can be used for profiling, defining, segmentation, estimating, predicting, and examining associative relationships. Casual Research Designed to provide information on potential cause-and-effect relationships. Most practical in marketing to talk about associations or impact of one variable on another. This research, which was of ‘Competitive Analysis of Companies, competing whirlpool’, was totally of exploratory in nature. Page | 40
  41. 41. Results and Discussions/Findings Q1. Which Brand of Refrigerator do you have? No. of Respondents 100 Whirlpool 46 Videocon 7% LG 38 Videocon 7 Others 9 Others 9% Whirlpool 46% LG 38% Interpretation: From my survey, I have found that LG was having major market share in items share in terms of Refrigerator as comparison to other brands. There were 46% of the people those were having LG Refrigerators. Page | 41
  42. 42. Q2. How did you come to know about your brand /model of Refrigerator? No. of Respondents 100 Newspaper 38 Magazines 16 Others 19% Through Friends 27% Through Friends 27 Others 19 Newspaper 38% Magazines 16% Interpretation: From my survey, I have found that Newspapers played a major role in making aware to the customers about the refrigerator. The next major role is played by the friends. However, only 16% 0f customers said that they came to know about the product through magazines. Page | 42
  43. 43. Q3. Which factor influence you more in your Buying Decision? No. of Respondents 100 Brand image 25 price 40 Quality 24 After Sales Service 11 40 30 20 40 25 24 10 11 0 Brand image price Quality After Sales Service Series1 Interpretation: In factors that were responsible for choosing a particular product was found to be Price, Brand name & Quality. There were 40% of the people those said that price has influenced them more while buying. Page | 43
  44. 44. Q4. Who influenced you more in your buying decision? No. of Respondents 100 Self 15 21% Friends & Relatives 26 Family Members 38 Others 21 15% Self 26% 38% Friends & Relatives Family Members Others Interpretation: From my survey, it is very much clear that there is a major role of Family in the buying decision of the people. The next major role is played by the Friends. Page | 44
  45. 45. Q5. Awareness about Refrigerator brand available in market. No. of Respondents 100 Fully Aware 31 Unaware 41% Less Aware 28 Unaware 41 Fully Aware 31% Less Aware 28% INTERPRETATION: from my survey, it is very much clear that there were majority of the people those were not aware of the different refrigerator brands available in the market. There were 40% of the people those were not aware. Page | 45
  46. 46. Q6. What did you perceive first while buying a Refrigerator? No. of Respondents 100 Brand Image 21 Price 35 Quality 28 After Sales Service 7 Style & Looks 9 40 30 20 10 0 Series1 Brand Image Price Quality Series1 After Sales Service Style & Looks Interpretation: The factor that were responsible for choosing a particular brand of refrigerator was found to be price, Brand Name & Quality. There were 36% of the people those said that price has influenced them more while buying a Refrigerator. Page | 46
  47. 47. Q7. Are you satisfied with its overall performance? No. of Respondents 100 Fully Satisfied 12 Satisfied 43 Undecided 26 Less Satisfied 13 Poor 6 45 40 35 30 25 Series1 20 15 10 5 0 Fully Satisfied Satisfied Undecided Less Satisfied Poor INTERPRETATION: on asking that whether the customers were satisfied with the overall performance of the refrigerator, only about 13% reported that they were less satisfied whereas about 43% said they are satisfied with the performance of the refrigerator. Page | 47
  48. 48. Q8. According to you which company gives the most beneficial schemes to the Customers? No. of Respondents 100 Whirlpool 31 LG 38 Others 17% Videocon 14 Others 17 Whirlpool 31% Videocon 14% LG 38% INTERPRETATION: on asking that which company provides the most beneficial schemes to the customer, only about 17% of the people were in the favour of other companies. 38% of the people were in the favour of LG. Page | 48
  49. 49. Q9. If any of other brands of Refrigerator offers you any attractive scheme, will you go for that brand? No. of Respondents 100 Yes 37 NO 63 37% Yes 63% INTERPRETATION: NO it is clearly seen that if a company offers more attractive schemes then only 37% will go for that brand & 63% of the people will not go for that brand. Page | 49
  50. 50. Major learning My Stint with the company has been a learning process; not only about different brands and companies manufacturing refrigerators but also relationship between locations based demographics, lifestyle and habits of consumers. There are many companies engaged in manufacturing, production and sale of refrigerators. In view of my interaction with the customers and the dealers, I have come to know about the marketing, sales and promotion strategies of Whirlpool and also its competitors mainly Samsung and LG. Observations are as follows:  Whirlpool, Samsung and LG are the leading brands in refrigerators whereas LG giving the neck-to-neck competition to Whirlpool.  I have come to learn various strategies both the leading refrigerators follow to increase their sales.  I have also come to know about what skills require to sale the product in the market and also the customer expectations from the product and brand as well.  I have come to know about Consumer Behavior and competitive study of different brand in Refrigerator segment of Whirlpool of India Ltd. Page | 50
  51. 51. FINDINGS AND CONCLUSION Findings  The promotional activities done by Whirlpool are medium  The in shop displays of Whirlpool products are very good in number as compared to its competitors.  As survey stated the Whirlpool customer never switches over to any other company’s product.  Whirlpool is not lagging behind of its competitors in Indian consumer durables market.  Whirlpool, being a no.1 company is liked by people. Conclusion  After being a part of Whirlpool (India) Pvt. Ltd. For two months as summer trainee, I came to following conclusions  Whirlpool being placed as 1st best consumer durable company globally as well as in the Indian consumer durables market.  The biggest positive point of Whirlpool is their innovativeness in the products and it is highly liked by Indian public.  Whirlpool products are liked by large numbers of customers who are brand loyal. Page | 51
  52. 52. Suggestions On the basis of the survey conducted by me, following suggestions are to be considered:  The companies should work on promotional efforts to increase the awareness of the consumers.  The Company should contact personally to send the their representatives customers to avoid to any communication problems.  The Company should give more Attention to all the segments.  The companies should come up with some attractive schemes to attract more & more customers.  Proper advertisement should be given in order to remind the customers about their schemes and other benefits.  People generally consider price While purchasing a refrigerator to company should emphasize on competitive prices.  Promotional activities should be increased and should be more efficient. Page | 52
  53. 53. Questionnaire Consumer Behaviour in selected brands (Whirlpool, Videocon, and LG etc.) of 200 litters refrigerators on the basis of Price, Brand name, Quality & After sales Services”. Name: - _____________________ Gender: - ______ Place: - _____________________ Age: - Occupation: - __________________ Income: - ______ ______ 1. Do you have Refrigerator? o Yes -------o No -------2. Which brand of Refrigerator do you have? o Whirlpool ------o LG --------------o Videocon ------o Others ----------3. What is the price of your Refrigerator? ---------------------------------------------4. How long do you own this Refrigerator? o Less than six month ----------o Six month ---------------------o One year ---------------------o Two year --------------------o More than 2 years --------- Page | 53
  54. 54. 5. How did you come to know about your brand/Model of Refrigerator? o Newspaper -----------o Magazines -----------o Through Friends -----o Others ----------------6. Which factor influence you’re more in your buying decision? o Brand Image ----------o Price ---------------------o Quality ------------------o After Sales Service -----7. Who influenced you more in your buying decision? o Self ---------------------------o Friends/Relatives -----------o Family Members ------------o Others ------------------------8. Awareness about Refrigerator brand available in the market— o Fully aware ---------o Less aware ---------o Unaware ---------- 9. What did you perceive first while buying a Refrigerator? o Brand Image -------------o Price -----------------------o Quality --------------------o After sales service ------o Style & Looks ------------ Page | 54
  55. 55. 10. Are you satisfied with its overall performance? o Fully Satisfied -----------o Satisfied ------------------o Undecided ---------------o Less Satisfied -----------o Poor ----------------------- 11. According to you which company gives the most beneficial schemes to the customers? o Whirlpool --------------o LG ----------------------o Videocon --------------o Others ------------------- 12.What are your views about brand image of following brands of Refrigerator? Very good Good Average Bad Worst Whirlpool LG Videocon Others 13.What are your views about Price of following brands of Refrigerator? Very good High Average Low Very Low Whirlpool LG Videocon Others Page | 55
  56. 56. 14.What are your views about Quality of following brands of Refrigerator? Very good Good Average Bad Worst Whirlpool LG Videocon Others 15.If any of other brands of Refrigerator offers you any attractive scheme, will you go for that brand? o Yes -------o No --------- 16.Suggestion/Problems, if any ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Customer’s Signature Researcher’s Signature ----------------------------- ----Sanjay Kumar-------- Page | 56
  57. 57. References 1. http://www.whirlpoolindia.com/media.aspx? Id=25 2. http://www.whirlpool.com/Kitchen-1/Kitchen_Refrigeration-2/102110022/ 3.http://www.4psbusinessandmarketing.com/26032009/storyd.asp? Sid=2661&pageno=2 4.http://www.moneycontrol.com/news_html_files/news_attachment/2010/Whirl pool.pdf 5. http://www.whirlpool.com/in/consumer/home-appliances/refrigerator 6. Whirlpool brochure Thank You Sanjay Kumar Acharya School of Management Bangalore Page | 57
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