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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

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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.

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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

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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.

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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.

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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.

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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

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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.

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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”.

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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:

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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.

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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

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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


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


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


1 LG 22 222 VIDEOCON 13 133 SAMSUNG 9 94 GODREJ 12 12

42

5 WHIRLPOOL 19 196 KELVINATOR 16 167 KENSTAR 9 9


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


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


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


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


NO. OF RESPONDENTS

PERCENTAGE


45


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


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


NO. OF RESPONDENTS

PERCENTAGE


47


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


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


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


NO. OF RESPONDENTS

PERCENTAGE

1 Price 21 212 Quality 36 36

49

3 Service 14 144 Advertisement 17 175 Schemes 12 12


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


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


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


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

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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

http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html

http://www.samsung.com/in/aboutsamsung/index.html

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?

_________________________________________________________________

__________________________________________________________________

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