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A
Project Report On
“A Study of Consumer Durable Market for Samsung
Electronics Ltd”
Submitted in Partial Fulfillment of
“Degree of Bachelors of Business Administration”
(2010-2011)
Submitted to: Submitted by:
Ms. Nandini Name: Ravish Vishwakarma
Class: BBA
Pupin No.30208000036
Government College of Commerce and Business Administration
1
Sector-42, Chandigarh
Declaration
I hereby declare that this project report titled “The Study of Consumer Durable
Market in SAMSUNG ELECTRONICS LTD. is executed as per the course
requirement for the graduate program in management.
Place:
Date:
2
ACKNOWLEDGEMENT
In this project I have made an honest and dedicated attempt to make the research
material as authentic as it could. And I earnestly hope that it provides useful and
workable information and knowledge to any person reading it.
During this small time frame of two months in which the project reached its
completion, there were a few people whom I would like to make a mention of and
without whose help the project would have never seen the light of the day.
I also thank to my internal guide Ms Nandini for his timely response via e-mail,
which immensely helped in giving the project the initial direction it needed.
I would like to thank my friends who gave me a free hand as far as going about the
project work was concerned.
I dedicate this project to the Dealer’s who were extremely kind and who at times
went out of the way to help me. Without their co-operation it would have perhaps not
been possible to research a few places, which I did, within the stipulated time frame.
Ravish Vishwakarma
BBA
3
2010-2011
Preface
I made this project on SAMSUNG ELECTRONICS LTD. This project was to get an
overview of the Consumer Durable Market. It was a firsthand experience to get exposed
to the professional set-up and face the market, which was really a great experience.
Project period was a learning experience.
When business is involved, an experience counts a lot, experience are an instrument,
which leads towards success.
I take this opportunity to present the project report and sincerely hope that it will be as
much knowledge enhancing to the readers as it was to use during the fieldwork and the
compilation of the report.
4
INDEX
Sr. no. Contents Page no.
1. Introduction
2. Industry Profile
3. Company Profile
4. Product Profile
5. Objective of Study
6. Research Methodology
1.Primary data
2. Secondary data
3. Theoretical Background of the study
4.Sampling
5. Scope of the study
6.Limitations of the study
7. Data Analysis
8. Findings
9. Recommendations
10. Conclusion
11. Bibliography
12. Annexure
5
INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Allwyn, 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 20-25% 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.
6
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.
7
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 is estimated at Rs.300 billion and is expected to
reach Rs.500 billion by 2015. More than 7 million units of consumer durable appliances
have been sold in the year 2009-10 with colour televisions (CTV) forming the bulk of the
sales with the 15.15 million units. CTV, refrigerators and Air-conditioners together
constitute more than 60 per cent of the sales in terms of the number of units sold.
8
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.
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 15.15 million units in 2009-10 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 CTV now account for over 60 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 2009–10 following a sharp decline in prices of these products and
this trend is expected to continue. LCD are perceived as high-end products. LCD market
9
has been estimated at 0.8 million units registering a growth of over 130% during 2009-
2010 over the previous year.
Due to the expansion of DTH and introduction of conditional access system (CAS) in
metros, the set top box (STB) market is growing rapidly
Multimedia mobile phones have been growing at a fast rate from 800,000 units 2008-
2009 to 1.8 million units in 2009-2010
The audio/video player market has seen significant growth rates in the domestic market
as prices have dropped. Indian DVD market was estimated at 6.2 million units in 2009.
Consumer appliances
The consumer appliances market is estimated at US$4.34 billion, with import valued at
US$ 1.22 billion.
Air conditioner (including industrial and office conditioners) constituted 38% of the
consumer appliances market followed by refrigerators at 14%, electric fans at 7.5%,
washing appliances at 7% and sewing machines at 5%.
Most imports are in the finished goods categories such as watches electric, coffee makers,
food grinders and electric heaters etc.
10
COMPANY PROFILE
SAMSUNG – Introduction
Our Vision
Samsung is guided by a singular vision: to lead the digital convergence movement.
We believe that through technology innovation today, we will find the solutions we need
to address the challenges of tomorrow. From technology comes opportunity for
businesses to grow, for citizens in emerging markets to prosper by tapping into the digital
economy, and for people to invent new possibilities.
It’s our aim to develop innovative technologies and efficient processes that create new
markets, enrich people’s lives and continue to make Samsung a trusted market leader
Our Mission
Everything we do at Samsung is guided by our mission: to be the best “digital-
Company”.
11
Samsung grew into a global corporation by facing challenges directly. In the years ahead,
our dedicated people will continue to embrace many challenges and come up with
creative ideas to develop products and services that lead in their markets. Their ingenuity
will continue to chart Samsung’s course as a profitable, responsible global corporation.
12
SAMSUNG HISTORY
1995-Present Pioneering the Digital Age
The digital age has brought revolutionary change – and opportunity – to global business, and
Samsung has responded with advanced technologies, competitive products, and constant
innovation.
At Samsung, we see every challenge as an opportunity and believe we are perfectly
positioned as one of the world's recognized leaders in the digital technology industry.
Our commitment to being the world's best has won us the No.1 global market share for
13 of our products, including semiconductors, TFT-LCDs, monitors and CDMA mobile
phones. Looking forward, we're making historic advances in research and development of
our overall semiconductor line, including flash memory and non-memory, custom
13
semiconductors, DRAM and SRAM, as well as producing best-in-class LCDs, mobile
phones, digital appliances, and more.
1995-Present Pioneering the Digital Age
2010
Samsung Electronics Held the 4th Samsung Young Design
Award in Italy
Samsung Electronics Introduced Samsung Galaxy Tab to
U.S. Market
Samsung Mobile Display developed flexible AMOLED
panel with four times clearer WVGA resolution
Samsung Electronics honored with 37 CES 2011
Innovation Awards
Samsung Electronics launched OMNIA 7, the first
Windows Phone 7 smartphone
Samsung announced that it will establish seven social
enterprises over the next three years to support the
underprivileged in Korea
Samsung Electronics began mass producing 20nm-class,
64-gigabit 3-bit NAND flash memory
Samsung Engineering won the Sabah (Malaysia) Oil &
Gas Terminal Project
Cheil Industries established the WPM (World Premier
Materials) flexible display business unit
Samsung Electronics held the WCG 2010 Samsung Euro
Championship at IFA 2010
Samsung Electronics held the “Samsung Mobile Solutions
Forum 2010” in Taiwan
Samsung’s brand value was ranked No. 19 in the world by
Interbrand’s 2010 Best Global Brands
Samsung Electronics’ 3D LED 8000 & 7000 series TVs
were selected as this year’s best TVs by product testing
14
magazines “Which?” in UK and “Test” in Germany
Samsung Electronics won five European EISA Awards
Samsung Electronics introduced Samsung Galaxy Tab to
U.S. market
Samsung Electronics’ TV won “Product of the Year”
Award in Russia two years in a row.
Samsung Electronics qualified foundry industry’s first
32nm low power High-K Metal Gate Logic Process and
Design Ecosystem
Samsung Electronics introduced high-speed 512GB SSD
utilizing new toggle-mode DDR NAND memory
Samsung Electronics captured five 2010 IDEA awards
Samsung Fire and Marine Insurance entered the Chinese
automobile insurance market
Samsung Electronics hosts “Samsung Global Developer’s
Day” for the Bada platform
Samsung announced that it will invest $20 billion in new
projects such as in eco-friendly and health care sectors by
2020
Samsung Life Insurance went public with IPO in Korean
Market
Samsung Electronics launched World’s first 3D home
theater
Samsung Electronics launched WAVE, the first
smartphone based on Bada platform
Samsung Engineering won $1.7 billion petrochemical plant
contract in UAE
Samsung Corning Precision Glass changed company name
to Samsung Corning Precision Materials
Samsung Mobile Display developed the World’s largest
19-inch transparent AMOLED display
15
Samsung Electronics merged with Samsung Digital
Imaging
Samsung Heavy Industries won $500 Million contract for
nine oil tankers
Samsung Electronics announced the industry’s first multi-
chip package (MCP) with PRAM – for use in mobile
handsets
Samsung Electronics’ Android Phone “Moment” for the
U.S won the “Best in Show” award at 2010 CTIA
Samsung Electronics was awarded 2010 Green
Communication Award
Samsung Electronics globally launched the World’s first
“Full HD 3D LED TV”
Samsung Electronics developed industry’s first 30-
nanometer-class DRAM
Samsung Electronics opened its Olympic Rendezvous @
Samsung (OR@S) for the Vancouver 2010 Olympic
Winter Games
Samsung Electronics was ranked No. 1 in market share for
French Door refrigerators in the U.S.
Samsung Electronics committed its sponsorship with the
Singapore 2010 Youth Olympic Games (Singapore 2010)
as a Worldwide Partner
Samsung C&T opened Burj Khalifa, the world's tallest
building
Samsung SDS merged with Samsung Networks
Samsung Electronics began mass producing industry’s first
3D TV panels
2009 Displayed the world’s thinnest TV (6.5mm) at CES
Launched major restructuring of its businesses
16
Cooperates in creating a foundry with Xilinx of the US
Developed the world’s first 40 nanometer DRAM
Announced its “Blue Earth” solar-powered phone
Released its V-line Crystal Rose LCD TV
Samsung is found No. 1 in customer loyalty for 8 years
consecutively by Brand Keys of the USA
Samsung Digital Imaging developed an innovative hybrid
digital camera
Built the world’s largest mobile phone as recorded in the
Guinness Book of World Records
Received a “Quality Management Award” in Malaysia
SADI, Samsung's design school, received the most iF
Concept Design Awards for its entrants
Opened “samsungmobile.com” for its domestic customers
Received an Excellence Award from ENERGY STAR of
the US
Released the world’s thinnest Blu-ray player
Introduced Mobile WiMax into Malaysia
Released the world’s first full HD camcorder with a 64GB
SSD
Sold more than 20 million full touch phones in shortest
time ever
Samsung took up a record high market share in LCD
monitors
Released the world’s first solar -powered mobile phone in
India
Released the “JET,” its new concept full touch screen
phone
Released its 120Hz 3D monitor
Samsung took the No. 1 spot in the global digital sign
17
market for the first time
Sold 500,000 units of its LED TVs in 100 days since its
release
Opened the “visual mobile” era with its third generation
full touch Haptic AMOLED
Released the world’s first infrared video phone
Became the first in the industry to acquire TCO 3.0
certification for its notebook computers
Announced its “Green Management” strategy
Began mass production of the world’s first 40 nanometer
DDR3 DRAM
Released the world’s thinnest watch phone
Developed the world’s lowest power 1GHz mobile CPU
core
Opened Samsung Application Store Seller Site
Attained its most awards ever at IDEA 2009
Released its strategic smart phone, the OmniaⅡ
Samsung's Yuna Haptic sold 500,000 units in record time
Became the first in the industry to sell more than 10
million LCD TVs in the first half of the year
Samsung won the chairmanship of the 3GPP international
standardization association
Sold more than 5 million of its STAR full touch phones in
4 months
Samsung’s Application Store officially opened
Released the “Corby” full touch phone targeted at younger
users
Provided the WorldSkills Calgary 2009 Competition
support
Installed the world’s largest video wall in the US
Released the first large capacity 16kg automatic washing
18
machine in the domestic market
Samsung's “Mondi” WiMax terminal receives “Best
Product” at the 4G Awards
Entered the top 10 list in the world’s top 100 global brands
Samsung was selected as one of the top 10 global
businesses in responding to climate change
Samsung TVs took 50% of the Iranian market
Introduced its R&D master system
Released the “Giorgio Armani” smart phone
Sold more than 5 million LCD panels for notebooks per
month for the first in the industry
Developed a 240Hz 3D LCD panel
Received the 2009 LCD TV Market Leadership Award
Deploys its brand memory card business
Reached the world’s first LTE terminal supply agreement
Developed the world’s thinnest 3mm LED TV panel
Samsung successfully tested WiMax global roaming
Samsung’s LED TV won “TV of the Year” in Britain
Declared its “Creative Company” strategy for the next 100
years
Passed 4 trillion won in operating profits for its 40th year
of foundation
Introduced a “Creative New Employee” hiring system
Developed the world’s first 0.6mm 8 chip package
Sold 10 million STAR phones in six months of its release
Announced its open mobile platform, “bada”
Became the first in the industry to sell more than 4 million
LCD panels for TVs per month
Supported the hosting of the WCG final
Launched a VIP membership program
Sold 50 million full touch screen phones in 2 years
19
Samsung's printing solutions won product of the year in the
US
Announced “bada” its own smart phone platform
Samsung successfully commercialized its 4th generation
LTE terminal
Restructured its organization and appointed Gee-Sung
Choi as its new CEO
Sales of Samsung “Yuna Haptic” phones broke the
threshold of 1 million
Became No. 1 in the US digital TV market for the 4th
consecutive year
2008
Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung Electronics
Launched OMNIA phone Completed establishing TV manufactory in Russia Kaluga Became the official sponsor of 2010 Guangzhou Asian
Game Developed the world's first 2Gb 50 NANO Samsung takes No. 1 spot in U.S. cellphone market Opened Global Brand PR Centre ‘Samsung D'light'
No.1 worldwide market share position for TVs achieved for the 9th quarter in a row
2007
No.1 worldwide market share position for TVs achieved for the seventh quarter in a row
Developed the world's first 30nm-class 64Gb NAND Flash™ memory
BlackJack bestowed the Best Smart Phone award at CTIA in the U.S.
Attained No.1 worldwide market share position for LCD for the sixth year in a row
2006 Developed the world's first real double-sided LCD Developed the worlds' first 50nm 1G DRAM Unveiled 10M pixel camera phone Launched "Stealth Vacuum," a vacuum cleaner with the
20
world's lowest level of noises Launched the worlds' first Blu-Ray Disc Player
Developed 1.72"Super-Reflective LCD ScreenSeptember, 2005 The India Retail Forum has awarded Samsung as the Best Retailer of
the year 2005 in the consumer Durables category. James Damian,
SVP, Best Buy and his team handed over the award to Mr. Ravinder
Zutshi, Dy MD and Samsung India at the India Retail award function
held in Mumbai on 16th September.
February 2005 Mr. S. H. Oh appointed as the President and Chief Executive Officer
of Samsung South West Asia.
November 2004 Samsung received the Golden Peacock Special commendation
Certificate for Corporate Social Responsibility (Private Sector) for
the year 2004 from Mr. Shivraj Patil, Union Home Minister.
February 2004 India made regional headquarters for Samsung Southwest Asia.
February 2004 Mr. K. S. Kim appointed as the First President and Chief Executive
Officer of Samsung South West Asia.
November 2003 Inaugurated Samsung's new, High-Tech, advanced Refrigerator
facility.
August 2003 Commencement of production at refrigerator facility in Noida.
June 2003 Merger of SIEL with SEIIT.Software technology park set up at Noida
December 2002 Construction commences for 5,000,000 refrigerator plant in Noida
October 2002 Samsung unveils new technology for Consumer Home
Entertainment (DNIe™)
June 1996 Foundation Stone laid for CTV Factory at Noida, Uttar Pradesh.
May 1996 Launch in South
Home Appliances Launch
December 1995 Samsung India Electronics (SIEL) products launched in India.
August 1995 Certificate for commencement of business received by Samsung
21
GROWING TO BE THE BEST
Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best
Company’ in terms of both the internal workplace environment as well as the external
context in which the Company operates. Samsung aims to grow in India by contributing
to the Indian economy and making the lives of its consumers simpler, easier and richer
through its superior quality products.
“Our aim is to gain technological leadership in the Indian marketplace even as our goal is
to earn the love and respect of more and more of our Indian consumers.” Mr. S.H. Oh ,
President & CEO Samsung South-West Asia Regional Headquarters.
Samsung in India
Samsung India is the hub for Samsung’s South West Asia Regional operations. The
South West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri
Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India, which
22
commenced its operations in India in December 1995, today enjoys a sales turnover of
over US$ 2bn in just a decade and a half of operations in the country.
Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located
all over the country. The Samsung manufacturing complex housing manufacturing
facilities for Colour Televisions, Colour Monitors,
Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made in
India’ products like Colour Televisions, Colour Monitors and Refrigerators were being
exported to Middle East, CIS and SAARC countries from its Noida manufacturing
complex. Samsung India currently employs over 1600 employees, with around 18% of its
employees working in Research & Development.
SAMSUNG GLOBAL
The DNA of Digital Innovation
Samsung Electronics is a global leader in semiconductors, telecommunications, digital
media and digital convergence technologies with 2004 parent company sales of
US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over
90 offices in 48 countries, the company has of 5 main business units: Digital Appliance
Business, Digital Media Business, LCD Business, Semiconductor Business and
Telecommunication Network Business. Recognized as one of the fastest growing global
brands, Samsung Electronics Corporation is the world’s largest producer of Colour
Monitors, Colour TVs, Memory Chips and TFT LCD’s.
23
Customized products for Indian Consumers
Samsung understands the local cultural sensibilities to customize its products according
to the Indian market. It has set up a “usability lab” at the Indian Institute of Technology
in New Delhi to customize Samsung products to meet the specific needs of Indian
consumers. This industry-institute partnership is helping Samsung to study and analyze
consumer response in aspects of product design, including aesthetics, ergonomics and
interface.
Through its research done on consumer preferences in India, Samsung has concluded
that Indian consumers want more sound oriented products. Thus, the Samsung televisions
for India have a higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines, Samsung has
introduced for the first time in India a feature called Super Dry. It is present in three of
Samsung’s semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the local Indian
wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power
failures in India.
24
PRODUCT PROFILE
650 Series Full HD LCD TV
Developed using our unique Crystal Design with a hint of
rose-red color accentuating a traditional piano-black
bezel frame, the 650 Series LCD TV features Auto Motion
Plus 120Hz, an Ultra Clear Panel, DNIe Pro and Wide
Color Enhancer Pro to provide perfect picture quality.
25
Wide Video MP3 Player (YP-P2)
Equipped with Bluetooth and a touch screen interface,
the YP-P2 lets consumers enjoy vivid videos on a 3-inch
wide LCD screen. Samsung’s proprietary DNSe 2.0
technology with EmoTure™ UI enhances the ultimate multimedia experience.
VRT Front Loading Washer
Designed with Vibration Reduction TechnologyTM (VRT),
our washer dramatically reduces barrel vibration—even
at the highest speed. It also reduces energy and water
consumption to the world’s lowest levels. Further, we’ve
enhanced washing performance and eco-friendly performance
with a diamond-shaped embossing drum.
26
6-in-1 Steam Oven
Simple, yet stylish, our 6-in-1 steam oven combines all of
the features of a conventional oven with advanced steam
cooking technology to stimulate healthier eating.
Samsung’s versatile steam cooking solution adds a
steam function to the conventional oven, grill and microwave,
as well as dry heat and fermenting.
Haptic Touch Screen Phones (SC H-W420/W4200)
Built with TouchWiz UI software, our Haptic model promises
a unique user experience, one that touches all of the
senses. The Samsung Haptic features one-touch access,
a widget for creating customized desktops and a G sensor
for automatic horizontal rotation of photos and videos.
27
It is designed for the innovative, ‘on-the-go’ user who
demands cutting-edge multimedia features, including a web browser.
Ultra-messaging BlackJack II (SG H-i617)
Microsoft’s Windows Mobile software-enabled HSDPA
smart phone boasts a bigger screen than the BlackJack
I and includes a jog wheel. The phone also has cuttingedge
features such as a touch screen, Bluetooth, GPS and wireless LAN
OBJECTIVES OF THE PROJECT
To find number of brands of consumer durable in the city.
To study brand preference of consumer for consumer durable goods.
To find most important parameter for selection of brand of Colour television,
Refrigerators, Washing machine, DVD, Microwave oven.
To study profit margin of major brands in consumer durable.
28
Research Methodology
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
29
used in the context of a research study and it explains why a particular method has been
used in the preference of the other methods
Research design
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to
study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A
research design specifies the methods and procedures for conducting a particular study.
According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control
variance.
Research design specifies methods and procedures for study. In this study the company
was interested to know the demand of different consumer durable product, about
competitors, and potential for SAMSUNG procedures to be used for the study among
retailers/dealer and. However it was exclusively personal interview.
Data Collection:
This report was prepared after collecting data from the retailers/ dealers and past data was
arranged from the various studies conducted in last few years and various other records of
company.
Primary Data:
30
These data were collected by personal interview with retailers/ dealer. For this purpose
questionnaires were prepared in such that all necessary data would be collected.
Secondary Data:
Information regarding the project, secondary data was also required. These data were
collected from various past studies and other sources of the company.
Theoretical Background of the study
Scope of market research in view of modern global business.
Research methods provide you with the knowledge and skills you need to solve
the problems and meet the challenges of a fast-paced decision-making environment.
Business research courses are recognition that students in business, not-for-profit, and
public organizations – in all functional areas – need training in the scientific method and
its application to decision making. Two factors stimulate an interest in more scientific
decision making: (1) the manager’s increased need for more and better information and
(2) the availability of improved techniques and tools to meet this need.
During the last two decades, we have witnessed dramatic changes in the business
environment. Emerging from a historically economic role, the business organization has
evolved in response to the social and political mandates of national public policy,
explosive technology growth, and continuing innovations in global communications.
These changes have created new knowledge needs for the manager. Other knowledge
demands have arisen from problems with mergers, trade policies, protected markets,
technology transfers, and macroeconomic savings – investment issues.
31
The trend toward complexity has increased the risks associated with business decisions,
making it more important to have a sound information base. Increased complexity means
there are more variables to consider. The competition is more vigorous, with much
business downsizing to make competitive gains. Workers, shareholders, customers, and
the public are better informed and more sensitive to their self-interest. Government
continues to show concern with all aspects of society. Each of these factors demands that
managers have more and better information upon which to base decisions.
To do well in such an environment, you will need to be equipped with an understanding
of scientific methods and a means of incorporating them into decision making. You will
need to know how to identify good research and how to conduct it. This book addresses
these needs.
As the complexity of the business environment has increased, there has been a
commensurate, increase in the number and power of the tools to conduct research. There
is vastly more knowledge in all fields of management. We have begun to build better
theories. The computer has given us a quantum leap in the ability to deal with problems.
New techniques of quantitative analysis take advantage of this power. Communication
and measurement techniques have also been enhanced. These trends reinforce each other
and are having a massive impact on business management.
Sources of collection of primary and secondary data for market research.
The sources may be classified as either internal (organizational) or external sources of
information.
Internal Sources
32
Internal sources of organizational data are so varied that it is difficult to provide
generalizations about their use. Accounting and management information systems create
and store much of the internal data. Research and development, planning, and marketing
functions also contribute. Examples are departmental reports, production summaries,
financial and accounting reports, and marketing and sales studies. The collection methods
used are unique to the specific situation, and collection success depends on knowing just
where and how to look. Sometimes the information may exist in central files (i.e., at
headquarters), in computer database, or in departmental chronological files.
In other organizations, a central library keeps all relevant information. Systematic
searches should be made through exploratory interviews with everyone who handles the
information. Often company librarians, MIS. PR/communications, or departmental
secretaries can help in pinpointing critical data sources. Internal data sources may be the
only source of information for many studies.
External Sources
External sources are created outside the organization and are more varied than internal
sources. There are also better defined methods for finding them. This discussion is
restricted to published sources, although other sources of information may be useful.
Published sources of data can be classified into five categories. The newest and fastest
growing one is computerized database. They are composed of interrelated data files. The
files are sets of records grouped together for storage on some medium. Access may be
through online search or CD-ROM. Online databases are often specialized and focus on
information about a particular field.
33
Major source of published information consists of diverse materials from special
collections. Within this category there are many reference books, each a compendium of
a range of information. A second group includes university publications, of which there
are master’s theses, doctoral dissertations, and research records. A third group includes
company publications such as financial reports, company policy statements and speeches
by prominent executives, sales literature, product specifications, and many others. There
are miscellaneous information sources consisting of the productions of various trade,
professional and other associations. These organizations often publish statistical
compilation, research report, and proceeding of meeting.
SAMPLING METHOD
Random Sampling method
SAMPLE SIZE
100 Dealers were selected for the study.
Research tools:
Questionnaires were used to collect the information.
RESEARCH AREA
Chandigarh and Punjab
Punjab
Mohali
Ropar
34
Kharar
Ludhiana
Patiyala
Chandigarh
Scope of the study
This project gives us great exposure to the consumer durable market because it includes
product knowledge and field survey job in which we visited the consumer durable stores.
While visiting the shops we
35
1. Calculated the display share of the SAMSUNG product in shop.
2. Collected the data of actual monthly sale of the SAMSUNG product in few shop.
3 Found out the problems that the dealer were facing while selling the SAMSUNG
product.
4. Found out the customer response for SAMSUNG products by asking the owner of the
shop.
5. Checked whether demo calls were attended or not.
Scope
1. In term of purchasing power parity (PPP), India is the 4th largest economy in the world
and overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach Rs 500 billion by on 2015.
3. India has the youngest population amongst the major countries. There were lot of
people in the different income categories nearly the two third population is below the age
of 35 and nearly 50% is below 25.
4. There were 56 million people in middle class, who were earning us$4,400-US$21,800
a year. And there were 6 million rich household in India.
36
5. The upper-middle and high-income household in urban areas were expected to grew to
38.2 million in 2007 as against 14.6 million in 2000.
OPPORTUNITY
1. In India the penetration level of white goods is lower as compared to other developing
countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power of consumers.
5. Easy availability of finance.
Threats
1. Higher import duties on raw materials.
2. Cheap imports from Singapore, China and from other Asian countries.
37
LIMITATION OF STUDY
Although I tried my best in preparation of this project, but this study has some limitation:
1.The period of the project was not sufficient to study all the factors in deep.
2.Visiting various places for the study consumed a lot of time.
3.We cannot say that what the consumer have revealed will be right for each and every
situation because their perception is influenced by many factors.
4.Many consumer and dealers/retailers showed less interest in providing information and
haven’t cooperated.
5.Some of confidential information viz. credit period, schemes, policies and sales figure
were not disclosed by the competitors.
Data Analysis and Interpretation
Table No.1 Number of company’s product sold by dealers.
Sr. No. PRODUCT NO. OF RESPONDENTS1 C-TV 862 C-TV &
REFRIGERATOR 67
38
3 C-TV & REFRIGERATOR &
WASHING MACHINE 564 ABOVE ALL 92
TOTAL 301 Source:- Survey
Graph No. 1
INTERPRETATION:-
According to survey, 86 dealers were sold only C-TV, 67 dealers were sold C-TV and
REFRIGERATOR, 56 dealers were sold C-TV and REFRIGERATOR, WASHING
MACHINE and 92 dealers were sold all product.
Table no. 2 shows no. of company’s product sold from dealer’s shop.
Sr. NO. NO. OF COMPANIES PRODUCT
NO. OF RESPONDENTS
1 FIVE 332 FOUR 243 THREE 94 TWO 34
39
TOTAL 100 Source:- Survey
Graph No. 2
INTERPRETATION-
According to survey, 33 dealers were sold 5 brands, 34 dealers were sold only 2 brands
from their shops.
Table No.3 Shows Major brand of C-TV sold by dealers.
Sr. NO.BRAND
NO. OF RESPONDENTS PERCENTAGE
1 LG 39 392 VIDEOCON 23 23
40
3 SAMSUNG 18 184 SANSUI 11 115 ONIDA 9 9
TOTAL 100 100 Source:- Survey
GraphNo.:-3
INTERPRETATION-
According to dealers, in Chandigarh & Punjab LG is leading in
C-TV with 39%, after that VIDEOCON is 2nd with 23% and then SAMSUNG is on 3rd
with 18%.
Table No.4 Most important parameter for more sale of C-TV
Sr. NO. REASONS FOR MORE SALES
NO. OF RESPONDENTS
PERCENTAGE
1 Price 28 282 Quality 30 30
41
3 Service 17 174 Advertisement 15 155 Schemes 10 10
TOTAL 100 100 Source:- Survey
Graph No.4
INTERPRETATION-
According to dealers, Price is most important parameter for more sale of C-TV
and then Quality, Services, Advertisement and Schemes.
Table No. 5 shows the major brands of REFRIGERATOR sold by dealers.
Sr. NOBRAND
NO. OF RESPONDENTS PERCENTAGE
1 LG 22 222 VIDEOCON 13 133 SAMSUNG 9 94 GODREJ 12 12
42
5 WHIRLPOOL 19 196 KELVINATOR 16 167 KENSTAR 9 9
TOTAL 100 100 Source:- Survey
Graph No. 5
INTERPRETATION-
According to dealers, LG also leading in the REFRIGERATOR market with 22%,
After that Whirlpool and Kelvinator is following them.
Table No.6 shows most important parameter for more sale of REFRIGERATOR
Sr. NO. REASONS FOR MORE SALES
NO. OF RESPONDENTS
PERCENTAGE
1 Price 27 272 Quality 32 323 Service 19 194 Advertisement 13 135 Schemes 9 9
43
TOTAL 100 100 Source:-Survey
Graph No. :- 6
INTERPRETATION-
According to dealers, most important parameter for more sale of Refrigerator
is Quality and then Price, Services, Advertisement and Schemes.
Table no.7 shows Major brands of Washing Machine sold by dealers.
Sr. NO.BRAND
NO. OF RESPONDENTS PERCENTAGE
1 LG 18 182 VIDEOCON 11 113 SAMSUNG 15 154 IFB 7 75 WHIRLPOOL 21 21
44
6 GODREJ 9 97 KELVINATOR 10 108 KENSTAR 9 9
TOTAL 100 100 Source:- Survey
Graph No. :-7
MAJOR BRAND OF WASHING MACHINE
18%
11%
15%7%
21%
9%
10%9%
LG
VIDEOCON
SAMSUNG
IFB
WHIRLPOOL
GODREJ
KELVINATOR
KENSTAR
INTERPRETATION-
According to dealers, LG is leading in Washing Machine market with 18%, after that
VIDEOCON and SAMSUNG is leading.
Table No.8 shows most important parameter for more sale of Washing Machine
Sr. NO. REASONS FOR MORE SALES
NO. OF RESPONDENTS
PERCENTAGE
1 Price 26 262 Quality 32 323 Service 24 244 Advertisement 10 105 Schemes 8 8
45
TOTAL 100 100 Source:- Survey
Graph No.8
INTERPRETATION-
According to dealers, the most important factor which affects the sales of washing
machine is QUALITY, and then prices and services is considered by the customers.
Table No.9 shows Major brands of DVD sold by dealers.
Sr. NO.BRAND
NO. OF RESPONDENTS PERCENTAGE
1 LG 11 112 VIDEOCON 13 133 SAMSUNG 10 104 ONIDA 15 155 PHILIPS 22 22
46
6 SANSUI 12 127 SONY 8 88 INTEX 9 9
TOTAL 100 100 Source:-Survey
Graph No. :- 9
MAJOR BRAND OF DVD
1113
10
15
22
12
8 9
0
5
10
15
20
25
BRANDS
NO
. O
F R
ES
PO
ND
EN
TS
NO. OF RESPONDENTS
INTERPRETATION-
According to dealers, PHILIPS is the most popular brand in DVD market with 22%, after
that ONIDA with 15% and VIDEOCON with 13% on 3rd position.
Table No.10 shows most important parameter for more sales of DVD
Sr. NO. REASONS FOR MORE SALES
NO. OF RESPONDENTS
PERCENTAGE
1 Price 21 212 Quality 42 423 Service 17 174 Advertisement 8 85 Schemes 12 12
47
TOTAL 100 100 Source:- Survey
Graph No. 10
INTERPRETATION-
According to dealers, Quality is major factor in respect of more sale of DVD, and then
Services and prices were to be considered.
Table No.11shows Major Brand of MICROWAVE OVEN sold by dealers.
Sr. NO.BRAND
NO. OF RESPONDENTS PERCENTAGE
1 LG 18 182 VIDEOCON 13 133 SAMSUNG 15 154 KENSTAR 21 215 GODREJ 9 9
48
6 PHILIPS 8 87 BAJAJ 9 98 SONY 7 7
TOTAL 100 100 Source:- Survey
Graph No. 11
NO. OF RESPONDENTS
18
1315
21
9 8 97
0
5
10
15
20
25
NO. OF RESPONDENTS
INTERPRETATION-
According to dealers, KENSTAR is very popular brand for microwave oven. KENSTAR
is making a huge business as compare to other competitors after that LG and then
SAMSUNG. According to dealers, microwave oven does not have that much demand as
compare to other consumer durable product.
Table No.12 shows Reason for more sales of MICROWAVE OVEN
Sr. NO. REASONS FOR MORE SALES
NO. OF RESPONDENTS
PERCENTAGE
1 Price 21 212 Quality 36 36
49
3 Service 14 144 Advertisement 17 175 Schemes 12 12
TOTAL 100 100 Source:- Survey
Graph No. 12
INTERPRETATION-
The most important factor of more sales of microwave oven is QUALITY of the product.
Quality is mostly affected on sales of microwave oven.
Table NO.13 shows High Profit margin brands
Sr. No.BRANDS
NO. OF RESPONDENTS PERCENTAGE
1 LG 21 212 SAMAUNG 18 183 WHIRLPOOL 16 164 VIDEOCON 13 135 SONY 11 11
50
6 GODREJ 9 97 PHILIPS 7 78 KENSTAR 5 5
TOTAL 100 100 Source:- Survey
Graph No.13
HIGH PROFITABLE BRAND
0
5
10
15
20
25
BRANDS
NO
. O
F R
ES
PO
ND
EN
TS
NO. OF RESPONDENTS
INTERPRETATION-
According to dealers, in Indian consumer durable industry
LG is leading company because of their low pricing policy and the better quality of
product.
SAMSUNG is on 2nd position, if SAMSUNG will change their pricing policy like LG and
VIDEOCON then SAMSUNG should be on 1st position.
Table No.14 shows Suggestion from dealers for SAMSUNG to increase the business
Sr. No. SUGGESTION NO. OF RESPONDENTS1 FAST AND REGULAR
AFTER SALES SERVICE 312 REDUCE PRICES 213 INCREASE DEALER 15
51
MARGIN4 ADVERTISMENT AT
RURAL AREA 135 IMPROVE QUALITY 106 REGULAR SCHEMES 9
TOTAL 100 Source:- Survey
Graph No.14
0
5
10
15
20
25
30
35
SU
GG
ES
TIO
N
FA
ST
AN
DR
EG
UL
AR
AF
TE
R S
AL
ES
SE
RV
ICE
RE
DU
CE
PR
ICE
S
INC
RE
AS
ED
EA
LE
RM
AR
GIN
AD
VE
RT
ISM
EN
TA
T R
UR
AL
AR
EA
IMP
RO
VE
QU
AL
ITY
RE
GU
LA
RS
CH
EM
ES
AN
DL
UC
KY
DR
AW
NO. 1 2 3 4 5 6
Series1
Series2
Series3
Series4
Series5
Series6
Series7
INTERPRETATION-
According to suggestion of dealers, AFTER SALES SERVICE is most important factor
which is helping to the SAMSUNG for increase the sales.
After that PRICES OF THE PRODUCT should be economic. DEALER MARGIN
should increase for motivation of dealers.
FINDINGS
52
1. We came to know while visiting the shop most of the dealers sold entire consumer
durable product including C-TV, Refrigerator, Washing Machine, DVD, Microwave
oven.
2. We know that during the survey in consumer durable industry LG is leading in Colour
television, Washing Machine, Refrigerator.
3. Study shows that quality is most important parameter for more sale of colour television
and then price is considered by consumers.
4. Study shows that quality of the product is most important parameter for Refrigerator
then price is considered by consumers.
5. While visiting the shop we came to know that quality is most important parameter
which is affect on more sales of Washing Machine.
6. According to Survey, Philips is most popular brand for DVD.
7. We came to know that while visiting the shop, Kenstar is most preferable brand for
Microwave oven because of their quality.
8. While visiting the shop we know that LG gives high profit margin as compare to other
competitors.
9. While visiting the shop dealers suggested that after sales service is most important
factor which contributes towards the sales of Consumer durables.
10. All the dealers were not satisfied with the profit margin.
53
11. SAMSUNG product is costly as compare to LG and VIDEOCON.
12. Maximum rural area is covered by the VIDEOCON because of their low price
products.
13. We came to know while visiting the shops that there was big problem of after sales
service.
14. Many dealers were facing the problem of after sale service because there is no follow
up calls from SAMSUNG.
15. Demo calls also not done properly by the Samsung.
16. LG and Videocon is the main competitor of SAMSUNG.
17. Advertising of SAMSUNG CTV is more effective as compare to the competitors.
18. Sales promotion scheme were sufficient.
SUGGESTIONS & RECOMANDETION
Company should improve the after sales service of products as it is the main
factor for the sales of consumer products.
54
If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON then
SAMSUNG will take over the LG in all categories.
Company should distribute free key chain, calendar, t-shirts for making brand
popular among people.
Company should introduce low price and low power consumption Refrigerator for
acquiring the middle income group.
Dealer desire more advertisement to be done through local newspaper and cable
TV ads. To make consumers aware about the product.
Prompt of service in time.
Advertisements of the company’s products should focus on quality rather then
price.
Company should target upper middle class or premium class customers.
Company should introduce low cost products to satisfy the needs of low or middle
class.
Demo calls as well as follow up Help Company to maintain customer relationship
and hence the company should focus on these aspects.
SAMSUNG ltd. should concentrate on after sales service and should try to
establish more srevice centres.
SAMSUNG ltd. should try to trap the rural market.
55
Conclusion
With respect to the above study and the findings thereby, the company has
definitely entrenched into the urban market.
With few more concerted efforts, the said organization needs to enter the rural
market in order to completely establish itself all over.
Bibliography
56
1- www.google.com2- http://www.samsung.com/in/aboutsamsung/index.html 3- http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html 4- http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html 5- http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html 6- http://www.samsung.com/in/consumer/index.html
57
ANNEXURE
Questionnaire
Study of Consumer Durable Market for SAMSUNG Electronics Ltd.
Name of shop:
Address:
Contact no.:
1) Which is consumer durable product you sold from your shop? □C-TV □Refrigerator □Washing Machine
□DVD □Microwave
2) How many no. of company’s product you sold from your shop? □ONE_______________________________________________
□TWO_______________________________________________□THREE_____________________________________________□FOUR______________________________________________□FIVE_______________________________________________□SIX________________________________________________
3) Which is major brand of Colour-Television you sold from your shop? □SAMSUNG □LG □ Videocon □ Onida □ Sansui
4) What is the important parameter for more sales of Colour-Television brand?□Price □ Quality □ Services □ Advertisement □ Schemes
5) Which is major brand of Refrigerator you sold from your shop?□ Godrej □ Whirlpool □ Kenstar □ LG
□ SAMSUNG □ Videocon □ Kelvinator
6) What is the important parameter for more sales of Refrigerator brand? □ Price □ Quality □ Services □ Advertisement □Schemes
7) Which is major brand of Washing Machine you sold from your shop? □ IFB □ Whirlpool □ Kenstar □ LG □ SAMSUNG □ Videocon □ Kelvinator □ Godrej
58
8) What is the important parameter for more sales of Washing Machine brand?□ Price □ Quality □ Services □ Advertisement □ Schemes
9) Which is major brand of DVD you sold from your shop?□SAMSUNG □ LG □ Videocon □ Onida
□ Sansui □ Philips □ Intex □SONY
10) What is the important parameter for more sales of DVD brand?□ Price □ Quality □ Services □ Advertisement □ Schemes
11) Which is major brand of Microwave you sold from your shop? □SAMSUNG □ LG □ Videocon □ Kenstar □ Godrej □ Philips □ Bajaj □SONY
12) What is the important parameter for more sales of Microwave brand?□Price □ Quality □ Services □ Advertisement
□ Schemes
13) Which company’s product you give high profit margin?□SAMSUNG □LG □VIDEOCON □SONY
□WHIRLPOOL □GODREJ □PHILIPS □KENSTAR
14) What are your suggestions for SAMSUNG to increase the sales?
_________________________________________________________________
__________________________________________________________________
59
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