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Summer Internship Report of Whirlpool of India Limited
Summer Internship Report of Whirlpool of India Limited
Summer Internship Report of Whirlpool of India Limited
2013
1. EXECUTIVE SUMMARY
In the Stage I, I was assigned to visit hotels, restaurants, bars, pubs and clubs to
visit to seek approval for placing an ice box or jacket which was in shape of
Whirlpool neo-i-chill refrigerator for promotion and awareness of the refrigerator.
Price mapping was the second stage of my internship. The main objective of the
Price Investigation was to know the difference between MRP (Maximum Retail
Price) and MOP (Market Operating Price).
After the territory allocation, I was told about how to take up the price
investigation. The tool or method used for the Price Mapping was Mystery
Shopping. I was given a format of the MTD Report which was to be send after
every two days of field work.
In the Stage III, I was told by my industry mentor to visit the restaurant which he
assigned to me to see whether the jackets are displaying properly or not, and if any
customer ask any queries or any question about that jacket, I had to demonstrate
about the refrigerator which we were promoting through that jacket.
At the last stage of my internship, I was directed to make the deliveries of the
jackets at the locations where I was assigned for HoReCa Approval in the first
stage. After delivering, I had to take some photographs of customer engagement.
There are some certain limitations which I faced during my internship like during
the price investigation some retail electronic stores did not have refrigerators of all
the brands so the comparison was not possible at every store, sales representatives
at some stores were not keen in explaining about some of the brands or were not at
all enthusiastic, sometimes it was difficult to record all the price details and Point
of Sale Merchandises as it was to be done without disclosing our identity, during
the HoReCa Approval sometimes the decision taking authorities at restaurants
were not available so we had to visit the same location again which resulted in loss
of time and resources.
I learned lots of thing from the internship. I learned the art of Mystery Shopping
during the Price Investigation, learned the effect of margins provided by different
brands at a consumer electronics retail outlets, how MRP &MOP is used to lure the
customers, pricing mechanism and strategies of different consumer electronics
brand. I also learned the practical implication of branding and promotion strategy
of home appliances giant like Whirlpool, which will always help me in building of
my career.
2. INTRODUCTION
Earlier business was conducted with a sole objective of earning profits. But now
due to intense competition and changing market trends the focus of the
organizations has shifted to customer satisfaction; satisfaction of both internal and
external customers. External customers can be satisfied by providing them what
they want in a product.
Therefore,
Despite this Whirlpool entered the Indian market with a premium line of products,
which prohibited the brand from building a mass appeal. Although, there are so
many players in the market and there is enough space for players like Whirlpool
seeing the economy grow at around 8-10%. This calls reevaluation of Whirlpool
marketing mix strategies in the market.
3. INDUSTRY PROFILE
Durable goods are those which don’t wear out quickly, yielding utility over time
rather than at once. Examples of consumer durable goods include electronic
equipment, home furnishings and fixtures, photographic equipment, leisure
equipment and kitchen appliances. They can be further classified as either white
goods, such as refrigerators, washing machines and air conditioners or brown
goods such as blenders, cooking ranges and microwaves or consumer electronics
such as televisions and DVD players. Such big-ticket items typically continue to be
serviceable for three years at least and are characterized by long inter-purchase
times.
PERFORMANCE
In the past 10 years, the global market has witnessed a surge in demand as
economies such as Brazil, Mexico, India and China have opened up and begun
rapid development, welcoming globalization with élan. The consumer durables
industry has always exhibited impressive growth despite strong competition and
constant price cutting, and the first contraction since the 2001 dot-com bust has
been due to the global recession. Given the strong correlation between demand for
durables (both new and replacements) and income, the industry naturally suffered
during the 2008-2009 period. However, projections for current year going forward
are very optimistic, as consumers resume spending, and producers launch new
enticing variants to grab new customers. Leading players include Sony
Corporation, Toshiba Corporation, Whirlpool Corporation and Panasonic
Corporation.
Developing countries such as India and China have largely been shielded from the
backlash of the recession, as consumers continued to buy basic appliances. In fact,
China has been ranked the second-biggest market in the world for consumer
electronics. Despite the recession, their strong domestic economy and growing
high-income population have buoyed demand leading to aggressive market growth.
There is growing interest for new age products such as LCD-TVs and DVD
players. Meanwhile, the penetration of the basic, largest dollar items such as ovens,
washing machines and refrigerators is also increasing. India too, has witnessed a
similar phenomenon, with the urban consumer durables market growing at almost
10 %p.a., and the rural durables market growing at 25% p.a. Some high-growth
categories within this segment include mobile phones, TVs and music systems.
The Indian consumer durables industry has witnessed a considerable change in the
past couple of years. Changing lifestyle, higher disposable income coupled with
greater affordability and a surge in advertising has been instrumental in bringing
about a sea change in the consumer behavior pattern. Apart from steady income
gains, consumer financing and hire-purchase schemes have become a major driver
in the consumer durables industry.
CHALLENGES
The biggest threats to the local industry going forward are supply-related issues
pertaining to distribution and infrastructure, as well as demand issues due to
competition from imported goods. The lack of well developed distribution
networks makes it especially challenging to penetrate the fastest growing rural
areas economically. In addition, regular power cuts and poor road linkages make
systematic production, assembly and delivery problematic.
MNCs hold an edge over their Indian counterparts in terms of superior technology
combined with a steady flow of capital, while domestic companies compete on the
basis of their well-acknowledged brands, an extensive distribution network and an
insight in local market conditions. The largest MNCs incorporated in India are
Whirlpool India, LG India, Samsung India and Sony India and homegrown brands
are Videocon, Godrej Industries and IFB.
FUTURE PROSPECTS
Overall, the industry’s future remains robust, and interested applicants will benefit
from a holistic learning experience; Many of the research, sales, marketing and
advertising related roles will necessitate a good on-the-job learning of target
audiences, who may well be a totally new segment, based in never-before visited
Class II and III towns. In addition, those with technical backgrounds will be able to
leverage their knowledge and experience to constantly develop and innovate the
product variants. With more MNCs growing their Indian businesses, there is great
potential to also learn best-in-class systems and management skills.
After years of rationing and shortages, the 1950s were a period of economic
prosperity, high employment and great technological development. Many returned
servicemen got married, established homes and raised families. During this period,
Australians enthusiastically adorned their homes with a dazzling range of new
domestic appliances. Hire-purchase schemes allowed people to take products home
and pay for them in installments.
During the 1950s, the role of women was generally considered to be that of the
'homemaker'. Bright television and magazine advertisements encouraged women to
stay at home and create a domestic haven for their families using the new
appliances on offer. These devices promised to raise standards of living and release
housewives from the shackles of household chores.
Electric stoves, refrigerators, toasters and kettles revolutionized the kitchen, and
vacuum cleaners and washing machines shaved hours off time spent cleaning.
Women could enjoy more leisure time while still creating a clean, comfortable
home for their families. Many women chose to join the paid workforce, changing
the shape of the Australian labor market forever.
Home appliances also came to symbolize the success and modern outlook of their
owners and were often displayed in the lounge room for visitors to admire.
By the end of the 1950s, many small appliances that were at first considered
luxuries, like kettles and electric mixers, were now considered 'must-have' items.
Other appliances, like washing machines and refrigerators, however, were still
expensive and out of reach for many families.
In the late 1950s and early 1960s, developments in manufacturing technology led
to a huge increase in mass production. This included the production of electrical
appliances. Coupled with an increasingly prosperous economy, mass production
meant that most appliances became not just affordable, but essential parts of
everyday life.
Manufacturers, however, realized that they were facing a major problem. If they
continued to design high-quality products that lasted decades, then consumers
would have no reason to keep buying their products. Thus, many manufacturers
began to produce lower-quality appliances that were designed to be thrown out and
replaced rather than repaired. This forced people to continually purchase new
appliances.
In order to sell more products, manufacturers also created more diverse, innovative
products that boasted a variety of features. Irons, for example, now came with
useful improvements like thermostats (a device that regulates temperature) - which
rendered previous models of irons obsolete.
Many people also liked to display appliances in their lounge rooms as show pieces
rather than hide them away in the kitchen and laundry.
By the 1970s, owning a wide range of home appliances was deemed essential for
daily living.
Microwave ovens did not gain widespread popularity in Australia until the early
1980s, although they had been commercially available since the late 1950s.
Microwaves revolutionized food preparation - making it possible to defrost, cook
or reheat food in very little time, and prompting a growth in the consumption of
frozen convenience meals.
Other popular kitchen appliances of the 1980s included food processors and
blenders, which also made cooking quicker and easier.
Many of the home appliances used by Australians in the 1990s were essentially the
Same ones used in the 1950s, albeit with minor improvements and added features.
Some brand new appliances were also available - consumers could choose from an
incredible array of machines that would make cappuccinos, bake bread, churn
homemade ice cream and even blow the leaves off their driveways.
Constant modification meant that home appliances in the 1990s quickly became
outdated. The design of most appliances also made them difficult and expensive to
repair and many devices were often discarded after a short period of time. Large
numbers of old home appliances began to pile up in landfill areas.
Populated regions, where landfill space was fast becoming a scarce resource.
level of waste they were contributing to landfill and to consider their energy use in
the home when buying and maintaining appliances.
When launched in the 1950s, home appliances were hailed as the key to relieving
women from hours spent on household tasks. By the 1990s, the responsibility of
performing most household chores still primarily fell on women, but research
found that domestic appliances may not have actually saved women a great deal of
time at all.
In the 1940s, Australians spent around six hours per day purchasing and preparing
food. By the 1970s, this had dropped to two hours. By the end of the 1990s, many
Australians ate a large proportion of take-away or supermarket convenience meals,
and spent just 30 minutes in the kitchen each day.
3.3 REFRIGERATOR
Till the 1980s, players like Godrej, Kelvinator and Voltas controlled almost 90%
of the market. Earlier, the white goods sector was categorized as a luxury goods
industry and was subject to oppressive taxation and licensing. The situation
changed after the liberalization of the Indian economy in the early 1990s. The
government removed all restrictions, and now there is no restriction on foreign
investment, and licenses are no longer required. Post-liberalization, a number of
foreign companies entered the market and many domestic players also diversified
into refrigerators. BPL and Videocon, who already had a presence in the consumer
electronics market, leveraged their strengths to enter the durables sector.
In India, refrigerators have the highest aspiration value of all consumer durables,
with the exception of televisions. This accounts for the high growth rate of the
refrigerator market. The refrigerator market has been growing at a rate of about
15% per year, while the consumer durables industry as a whole has grown at
almost 8%. The size of the refrigerator market is estimated to be 3.5- 4 million
units approximately, valued at Rs 50 billion. The domestic penetration rate of
refrigerators is about 9%. The penetration of refrigerators is considerably higher in
urban areas, which account for 75% of the demand, with rural areas constituting
the other 25%. The electrical industry covers a wide range of products which
includes white goods i.e. refrigerators, washing machines, air-conditioners,
microwave ovens, washing machines, etc. The existing production capacity is
sufficient to meet the domestic demand as well as exports. The industry has been
de-licensed.
Household electrical appliances are now widely used in the country and two
technical aspects specific to these products are safety and quality. Steps have also
been initiated to ensure adequate testing facilities and availability of quality raw
materials and components to the manufacturers to help them in conforming to the
specified quality standards. Greater consumer awareness about the quality and
safety of these goods is also expected. For safe disposal of lead acid batteries a
notification under environment protection act has also been issued.
4. COMPANY PROFILE
WHIRLPOOL OF INDIA
Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry
into Indian refrigerator market as well. The same year also saw acquisition of
major share in TVS joint venture and later in 1996, Kelvinator and TVS
acquisitions were merged to create Indian home appliance leader of the future,
Whirlpool India. This expanded the company's portfolio in the Indian subcontinent
to washing machines, refrigerator, microwave ovens and air conditioners. The
company owns three state-of-the-art manufacturing facilities at Faridabad,
Pondicherry and Pune. Each of these manufacturing set-ups features an
4.1 HISTORY
Year 1911
Louis Upton founded the Upton Machine in this year to produce motor-driven
wringer washers.
Year 1916
Year 1929
Year 1946
First 'Whirlpool' brand automatic washer with dual distribution was introduced. It
included two product lines one each was distributed through Sears and Nineteen
Hundred.
Year 1957
Year 1958
The Company moved out of country for the first time and invested in Brazilian
appliance market through purchase of equity in Multi bras S.A.
Year 1968
The Elisha Gray II Research & Engineering Center was completed in Benton
Harbor. In the same year the company's revenues crossed the legendary $1 Billion
mark for the first time.
Year 1978
Within a decade company doubled its feat of $1 Billion mark and reached
the$2billion revenue level.
Year 1986
Year 1987
Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS Whirlpool
Ltd.
Year 1989
This was a historic year since the revenues catapulted to heights of over
$6Billion mark. Also, the joint venture with N.V Philips of Netherlands called
Whirlpool Europe B.V. was formed to manufacture and market appliances in
Europe.
Year 1991
Year 1993
Year 1996
Year 1998
This year gave birth to a new company vision that says, "Every Home everywhere
with Pride, Passion & Performance.
Year 1999
Year 2002
Year 2001
Whirlpool India registered profit & sold 1.2 million appliances. It also achieved the
No.1 position in DC & FA.
Year 2002
The Air con range was successfully launched and the Whirlpool of India acquired
6% market share.
Year 2003
Year 2006
Whirlpool Corporation acquires Maytag and become the World’s largest white
goods company.
Year 2007
Received the 2007 Cause Marketing Golden Halo Award for Business, America's
highest honor for companies and organizations that give back to the community
through creative and effective marketing campaigns
Year 2008
Named one of the “2008 World’s Most Ethical Companies” by Ethisphere
magazine
Year 2008
Whirlpool OF India” was awarded the NDTV Profit Business & Leadership Award
2008 for “The Best Consumer Durables Company
Year 2009
Whirlpool was voted Product of the Year and received the award for the 'Best
Innovative Product' in the popular refrigerators category. This was based on 40,000
consumers across 36 towns in India voting Whirlpool Frost Free Refrigerators with
6th sense as the Best Innovation in the Popular Refrigerator Category.
Named one of the “100 Best Corporate Citizens” by Chief Responsibility Officer
(formerly Business Ethics) magazine in 2009 and from 2000-2007.
Hewitt ‘Best Employers in India’ 2009 Study.
Year 2010
Whirlpool Corporation announces plans to invest $85 million to build a centralized
Headquarter riverfront office campus and renovate other facilities in Benton
Harbor, Michigan. Company remains true to its century old Midwestern roots.
Whirlpool Corporation announces a $120 million investment in building a new
LEED-certified manufacturing facility in Cleveland, Tennessee—the single largest
4.2 BRAND
The Brand
Whirlpool, the World's no. 1 home appliance company, has a heritage of 100 years,
a rich international experience and millions of happy consumers. The company has
built an ecosystem which is not just large, but all pervasive.
This enormous success comes from an enduring brand vision and belief system
that drives the company all over the world.
The Whirlpool Brand is the epitome of this vision and brand belief. It is the
symbolic representative of the spirit that drives us, that resonates with our
consumers and which inspires us to be consistent with what we do best.
The foundation of this vision and belief lies in the in-depth understanding of the
deepest needs of the consumer. And this necessitates an evolution of the brand
vision and belief with the constantly evolving consumer.
Brand Vision
Whirlpool believes that happier homes are the foundation to a better world. The
quality of life at home makes it a pool of energy that acts as a springboard to all
good things in life.
Thus the brand vision is to create better homes, better lives & a better world – a
world we all want to live in.
Vision
Mission
Our mission defines our focus and what we do differently to create value. We are a
company of people captivated with creating loyal customers. From every job,
across every contact, we will build unmatched customer loyalty … one customer at
a time.
4.4 VALUES
Respect
Integrity
Diversity creates value. Multiple diverse points of view are the soul of innovation
and the basis for Whirlpool Corporation's success in Europe. A culture that can
embrace and value diversity and inclusion motivates every individual to excel,
stimulating passion and the free expression of ideas.
Teamwork
Working together brings pride and frees up the potential of every individual.
Through collaboration and the confrontation of ideas, great results can be achieved.
Spirit of Winning
The awareness of being a leader generates pride and motivation to face the new
challenges of the market. Our goal is to be recognized and respected as one of the
world's best companies to work for.
4.5 STRATEGIES
Their focus now, and in the future, is on more than just creating great products.
They’re focused on maximizing the benefits of their worldwide network of
The main strategy of the whirlpool is building strong brands which have a loyal
consumer base. Whirlpool is trying to build trustworthiness of the customer and
lead the customer life easier. Whirlpool mainly does lot of work contributing in
building unmatched levels of loyalty to their brands through lifelong relationships
with the customers.
Now and then, even in the future the whirlpool focus is not simply on producing
products but more on the innovation and customer perception in creating them. Its
major focus is always on maximizing the benefits of their worldwide network of
resources, which is unmatched in the industry. They are creating better, more
innovative products that improve consumers' lives—in and around the home—each
and every day. The company is always committed in being an agile, global
consumer products company that creates value through their brands and
innovations. With their compelling and growing brands, fueled with innovation,
the company always attracts and retains loyal customers for life.
4.6 INNOVATIONS
Year 2012
1. ICWAI....National Award for Excellence in Cost Management - Silver
2. Trophy for Export Excellence in EPO Service for outstanding export
performance.
3. Whirlpool ACE Washing Machine received the Silver Medal in the
prestigious international Edison Awards for being the best new product in the
Lifestyle and Social Impact category.
Year 2011
1. 14 Best Employers in India 2011....Aon Hewitt
2. 9 Top Companies for Leaders Asia Pacific 2011...Fortune Aon Hewitt
3. Best Employers in Asia Pacific 2011....Fortune Aon Hewitt
4. Readers Digest Trusted Brand Gold Award (2010-2011) for Refrigerators
and Washing Machines
5. Whirlpool Pondicherry Washer Facility Gold Award in Economic Times
Frost & Sullivan Manufacturing Excellence Award - 2011
6. CEAMA Appliance Man of the Year for Arvind Uppal
Year 2010
1. Product of the Year 2010 1-2-3 Washing Machine....best innovative product
in the Washing Machine Category
2. Readers Digest Trusted Brand Gold Award (2009-2010) for Refrigerators
and Washing Machines
Year 2009
1. Top 20 Best Companies to Work for in India 2009............Mercer
2. Top 25 Best Employers in India 2009............Hewitt
3. Frost & Sullivan 2009 Business Development Strategy Leadership Award
for Residential Point-of-Use Water Treatment Systems in India
4. CII All India Six Sigma Competition, 2009 Runner Up
5. Indo American Corporate Excellence Award for 'the Best US Company in
India'...2009
6. Product of the Year 2009 Frost Free Refrigerators with Sixth Sense....best
innovative product in Refrigerator Category
7. ICWAI....National Award for Excellence in Cost Management- Bronze
Year 2008
1. NDTV Profit Business and Leadership Award 2008 for "the best Consumer
Durables Company".
QC
Mexico Monterrey
EUROPE No. 3 position in Operations Center:
Western and Whirlpool, Comerio, Italy
Central Europe Bauknecht, Manufacturing
Approximately Ignis, Polar, Laden Locations:
14,000 employees in France Amiens
France, KIC in Germany Neunkirchen,
South Schorndorf
Africa Italy Naples, Siena,
Cassinetta, Trento
Poland Wroclaw
Slovakia Poprad
South Africa Isithebe
Sweden Norrköping
ASIA Leader among Headquarters: Hong
Western Whirlpool Kong, PRC
companies, with Manufacturing
No. 1 market Locations:
position in India India Faridabad, Pune,
Approximately Pondicherry
5,000 employees China Shanghai,
Shunde
Whirlpool
In India, refrigerators and other home appliances were long known before the
1990s; but whirlpools products stand out for innovative approaches to specific
Indian contexts, and for a focus on customer relevant technology. One of its
earliest product-innovations specifically addressed the sizeable segment of
customers who bought smaller sized refrigerators. Whirlpool realized that a
customer who bought a small capacity refrigerator would probably require greater
flexibility and options in storage. Therefore, it introduced the Flexigerator, a
refrigerator with adjustable and drop-down shelves that gave unprecedented space
options to customers. Again, Whirlpool realized that Indians have a propensity to
store much larger amounts of water than most other cultures. Therefore, Whirlpool
introduced shelves that could take 1.5 litre bottles, on specially strengthened doors.
Subsequently, Whirlpool introduced its Ice magic refrigerators which made ice
faster than other brands. In washer products, Whirlpool was again the first to come
out with a Combimatic ± a single tub semi-automatic washing machine that did
away with the hassle of shifting clothes from one tub to another. Whirlpool has a
wide product portfolio ranging from air-conditioners to microwaves. Whirlpool’s
future products will be designed as an environmental friendly product in
accordance to customer expectations.
PRODUCT:
In India, refrigerators and other home appliances were long known before the
1990s; but Whirlpool’ s products stand out for innovative approaches to specific
Indian contexts, and for a focus on customer relevant technology. One of its
earliest product-innovations specifically addressed the sizeable segment of
customers who bought smaller sized refrigerators. Whirlpool realized that a
customer who bought a small capacity refrigerator would probably require greater
flexibility and options in storage. Therefore, it introduced the Flexigerator, a
refrigerator with adjustable and drop-down shelves that gave unprecedented space
options to customers. Again, Whirlpool realized that Indians have a propensity to
store much larger amounts of water than most other cultures. Therefore, Whirlpool
introduced shelves that could take 1.5 liter bottles, on specially strengthened doors.
Subsequently, Whirlpool introduced its Ice magic refrigerators which made ice
faster than other brands. In washer products, Whirlpool was again the first to come
out with a Combimatic ± as single tub semi-automatic washing machine that did
away with the hassle of shifting clothes from one tub to another. Whirlpool has a
wide product portfolio ranging from air-conditioners to micro waves. Whirlpool’s
PROMOTION:
Whirlpool's promotion strategy has introduced unique values in the home
appliance market. As recently as the early 1990s, most consumer durables were
promoted just as desirable accessories, and the purchase decision crystallized
through the male breadwinner in the Indian family. Whirlpool’s promotions broke
new ground with reference to each of these longstanding premises in the Indian
consumer market. Whirlpool created its marketing position around the tagline,
“You and Whirlpool - the world’s best homemakers”. Based upon this premise,
Whirlpool’s promotions encouraged and helped women to consciously identify
themselves as the real home makers in the family. This strategy also took
Whirlpool to the core of every home, as envisaged in the mindset of customers,
thereby enabling instant connection with the brand. In the process of establishing
such an emotional connects with the customer. Whirlpool’s strategy of reaching
out to its customers in unique ways was followed even in media .It changed the
media trend for consumer durables advertising in India, which hitherto was heavily
skewed towards print. Whirlpool was the first home appliances brand to orient its
promotions towards television advertising.
PRICE:
Whirlpool India Ltd. has changed its strategy from being a premium-player to
amass-player. Whirlpool has been concentrating on becoming a brand for the
mass-market and hence has introduced its products in all price categories. In order
to increase their profit, they try to reduce their cost. Some of their actions are they
closed several plants and streamlined organization in several group. Knowing the
market well, structuring the elasticity and keeping an eye on competitors by
whirlpool has implemented a customer-centric strategy that focuses on making
sure their products are appropriate for the Indian consumers. Different versions of
their products are priced differently, but not according to differences in their costs.
Whirlpool’s bigger success has been in the full in the fully automatic segment.
PLACE:
Whirlpool aims at globalization to obtain more market share in home appliance
industry by expanding globally. In Asia, where considerable perceived profit is
locate. Asia is a promising market with great potentiality, where the population is
huge while the labor is cheap compared with Europe and North America.
Whirlpool put more efforts on its major markets (Europe, North America) to
ensure its market position and profit, meanwhile, the investment in new market to
support the globalization strategy should be undertaken cautiously and strategically
according to the economy and resource condition and related cultural issues. Asia,
Europe, Latin America and North America are the most profitable market
for where Whirlpool is operating. Whirlpool India is also one of the largest
exporters of home appliances from India. Godrej have three World class factories
manufacturing a wide range of Refrigerators and Washing Machines .Their
appliances are exported all over the globe from Australia & New Zealand in the
East right up to Central America and the Caribbean islands in the West. Apart from
World Class factories, Whirlpool has also set up its Global Product Development
Centers in India where hundreds of engineers and technicians are working round
the clock, developing product designs for the entire Whirlpool world.
Whirlpool Product
Mix
8. WHIRLPOOL REFRIGERATORS
DOUBLE DOORS
SINGLE DOORS
MULTI DOORS
9. PROJECT UNDERTAKEN
HoReCa is a business term which refers to a sector of the food service industry, to
establishments which prepare and serve food and beverages. The term is a
concatenation of the words Hotel/Restaurant/Café (or Hotel/Restaurant/Caterer, or
Hotel/Restaurant/Canteen).
This term is used predominantly in the Netherlands where it is thought to have
originated.
The HORECA channel in Spain is very fragmented, with more than 330,000 total
points of sales. Likewise, a tendency toward professionalization and concentration
of the sector through organized chains has also been seen. The majority of
manufacturers distinguish between the “organized” HORECA channel and the
“non-organized” channel. The first is the one established, for example, with some
hotel chains, restaurant chains and with the restaurant industry that supplies, for
example, the hospital market, penitentiaries, schools, work canteens, airline
catering, etc. The second type, the “non-organized” HORECA channel, is the one
that supplies small bars and restaurants, some hotels, etc.
This is the first stage of my internship at Whirlpool India Ltd. I was assigned to
visit hotels, restaurants, bars, pubs and clubs i.e. HoReCa Channel. The purpose of
visit was to seek approval for placing an ice box or jacket which was in shape of
Whirlpool neo-i-chill refrigerator for promotion and awareness of the refrigerator.
Figure: Whirlpool neo-i-chill cooling jacket (actual) conceived by Lowe Lintas for
promotion and awareness of the customers.
Parameters for selecting the Hotels, Restaurants, Bars, Pubs & Clubs
The restaurants must not be part of a chain like Mc Donald’s, KFC etc.
The restaurants must not be a part of any 5 star Hotels.
No. of tables must be between 25- 30.
No of seats must be between 90- 100.
Average footfall should be around 200 per day and not on weekends.
The restaurant must not cater to middle class or lower class customers.
No of Restaurants
10
Approved
Disapproved
Awated
18
The task price mapping was the second stage of my internship. The main objective
of the price investigation was to know the difference between MRP (Maximum
Retail Price) and MOP (Market Operating Price).
All the interns who were assigned the task of Price Mapping were divided into
four groups and each group was allocated a territory for their price investigation. I
was allocated EAST DELHI for the same.
After the territory allocation, I was told about how to take up the price
investigation. The tool or method used for the Price Mapping was Mystery
Shopping. I was given a format of the MTD Report which was to be send after
every two days of field work.
Mystery shopping was standard practice by the early 1940s as a way to measure
employee integrity. Tools used for mystery shopping assessments range from
simple questionnaires to complete audio and video recordings. Mystery shopping
can be used in any industry, with the most common venues being retail stores,
hotels, movie theaters, restaurants, fast food chains, banks, gas stations, car
dealerships, apartments, health clubs and health care facilities. Since 2010, mystery
shopping has become abundant in the medical tourism industry, with healthcare
providers and medical facilities using the tool to assess and improve the customer
service experience.
Market operative price, which has presented itself as a riposte to MRP, especially
in the consumer durables sector, has its own disquieting fallouts, says S.
Murlidharan.
TIME was when maximum retail price (MRP) was taken to be too sacrosanct to be
tinkered or trifled with. Wait! Don't get wrong ideas. It wasn't as if the trade was a
model of sweet reason and shared the margin allowed to it with its customers. On
the contrary, MRP was taken to be a license to charge the price that was the
maximum permissible. Even the literate customers, blithely reconciled themselves
to paying the MRP as if it was a holy writ whereas they would have been perfectly
justified in haggling with the retailers to drive down the price.
It was against this backdrop that the Monopolies and Restrictive Trade Practices
Act, 1969, provided for measures evidently in consumer interest. Section 33(f)
thereof deems as a restrictive trade practice any agreement to sell goods on
condition that the prices to be charged on resale by the purchaser shall be the prices
stipulated by the seller unless it is clearly stated that prices lower than those prices
New Delhi Institute of Management Page 48
Whirlpool of India Ltd. 2013
may be charged.'' The industry and traders have been contending that MRP itself
means the maximum retail price and therefore there is no need to spell out
something which is very obvious.
The market, it is said, corrects even those distortions which law itself cannot. The
recalcitrance of the trade to fall in line with the dictates of the Supreme Court
verdict has been met with reprisal by the market forces. MOP (market operative
price) h as presented itself as a riposte to MRP. This has happened in the category
of consumer durables more than with anything else. The consumer durables sector
is witnessing fierce competition of the dog-eat-dog variety. Dealers are, small
wonder, constrained to offering discounts on their own, which implies sacrifice of
some out of the maximum permissible margin. In other words, instead of being
pigheaded, a dealer who is sensible prefers to push his wares at a price which is at
once optimal to him and to t he customer.
This climb down from MRP to MOP, though seemingly in consumer interest, has a
dangerous portent though. Under the MOP regime, it is a war of wits between the
retailer and his customer. A savvier customer is bound to thumb his nose at his
brethren not gif ted with the same haggling power. This is bound to create
heartburn in the market and sow seeds of suspicion in the minds of customers,
which would hardly be conducive to a good customer-retailer interface. Be that as
it may.
The more disquieting fallout of this development is the retaliatory strike by the
manufacturers, as reported in the financial press: a few manufacturers of durables
have refused to supply their wares to dealers who defy MRP, hitherto taken as the
equivalent of minimum retail price. The MRTP Act not only frowns upon `resale
price maintenance', but also does not countenance refusal to supply on the ground
that the dealer had the gumption to defy the diktat of the manufacturer as to the
resale price.
Section 40(1), in fact, categorically states that no one shall refuse to supply goods
to another because he has sold the goods or is likely to sell the goods emanating
from the supplier at less than the prescribed price, except when it is apprehended
that the buyer is using the supplier's product as a loss leader, that is, as a lure to
attract his potential customers to his shop and foist on him wares not belonging to
the supplier that are either slow moving or not selling at all.
In this connection, it is a trifle curious to find Section 39, which renders as void
any clause in the agreement down the supply line, insisting on resale price
maintenance, making a thaw in favor of those who do so in order to honor the
terms and conditions set by the licensor or the assignor of a patent or trademark in
relation to the goods supplied in the face of Section 40, which deals with refusal to
supply on the grounds of the refusal of the dealer to obey the diktat of the supplier
as to resale price maintenance, brooking no such exception.
If a supplier can insist upon resale price maintenance lest his rights and obligations
under patents/trademarks, licensed/assigned or granted to him, are affected, as a
corollary, he should also be vested with the concomitant right of refusal to supply t
o a renegade trader. It may be noted that resale price maintenance and refusal to
supply are terms which are linked to each other like Siamese twins. An exception
carved out in favor of one should ensure for the other as well.
It would be strange should the manufacturers of durables are hauled over coals for
refusing to supply even as they are exonerated from the charge of resale price
maintenance assuming the practice of resale price maintenance is to sustain the
terms of any intellectual property rights in this regard.
New Delhi Institute of Management Page 50
Whirlpool of India Ltd. 2013
20490
20000 20100 19900 20000 19800
19800 19800
19000 18900
18600
18000 17800 18100
17000
Average difference in MRP & MOP for whirlpool refrigerators is Rs. 1158
2 MOP
2050020100
2 20100 19800
19500
1
18600 18900 18900
18500
1 18000
17400
1
Mayur Vihar
New Delhi Institute of Management Page 52
Whirlpool of India Ltd. 2013
24700
25000 23900
MRP
Price in Rupees
22000
22500 MOP
20500 20600 20800 20500
21500
19900 19500 20500
19500 19900
20500
20000 19700 19800
18900
15000
10000
Average difference in MRP & MOP for whirlpool refrigerators is Rs. 844
MOP
2 19800
18900
1 18900 18900
18400 18900 18750
18500
1 17900
1750017200
17000
1 17000
Karkardooma
MRP
25000 24800 MOP
Price in Rs.
17000
Average difference in MRP & MOP for Whirlpool refrigerators is Rs. 820
23600 23500
23000 MRP
22800
21700 MOP
Price in Rs.
21500 21200
21000
19900 20400
19700 20000
19599
19000 18950 18900 18700 18900
18350 18500
17990 17900
17000 16900
15990
15000
The product training was focused on how to explain about the refrigerator
precisely (in 2 to 3 lines).
The task price mapping was the second stage of my internship. The main
objective of the price investigation was to know the difference between
MRP (Maximum Retail Price) and MOP (Market Operating Price).
All the interns who were assigned the task of Price Mapping were divided
into four groups and each group was allocated a territory for their price
investigation. I was allocated EAST DELHI for the same.
After the territory allocation, I was told about how to take up the price
investigation. The tool or method used for the Price Mapping was Mystery
Shopping. I was given a format of the MTD Report which was to be send
after every two days of field work.
The main purpose behind placing those neo-i-chill jackets or tent cards was
to create awareness among the masses about the neo-i-chill refrigerator.
Our job was to be at our assigned location for three hours (06:00 pm – 09:00
pm) and attend customer queries about the jackets.
My location was 69 Asian Cusion, Sec. 52, Gurgaon, Haryana.
We were given product training by brand manager of Whirlpool at its head
office in Gurgaon.
The product training was focused on how to explain about the refrigerator
precisely (in 2 to 3 lines).
There were few constraints to be listed down which I faced in this period:
New Delhi Institute of Management Page 59
Whirlpool of India Ltd. 2013
During the price investigation some retail electronic stores did not have
refrigerators of all the brands so the comparison was not possible at every
store.
Sales representatives at some stores were not keen in explaining about some
of the brands or were not at all enthusiastic.
Sometimes it was difficult to record all the price details and Point of Sale
Merchandises as it was to be done without disclosing our identity.
During the HoReCa Approval sometimes the decision taking authorities at
restaurants were not available so we had to visit the same location again
which resulted in loss of time and resources.
In the beginning we were not provided with the samples so we had to use the
color printout showing the use of those jackets and sometimes it got difficult
to convey what the product actually was.
In some of the places we were asked show the samples the only approval
could be made.
We found it difficult to find restaurants/bars/pubs/cubs according to the
criteria i.e. minimum of 25-30 tables and average footfall of 200-300.
Also after the delivery was made some restaurants were not willing to place
the jackets on their tables because of the quality of the jackets.
We were not allowed to enter during the weekends for inspection because of
the heavy footfall.
Some of the restaurant owners were asking for the gifts in advance and we
had to make them understand.
12. MAJOR LEARNINGS
13.RECOMMENDATIONS
Whirlpool should always launch some promotional scheme for its products
as in case of neo-i-chill. This would attract customers and hence would
increase sale.
In this type of branding and promotion through HoReCa channel it should be
insured that after the activation, the restaurant owners are properly following
the guidelines.
Whirlpool should have some models with 5 star energy rating as compared
to its competitors.
Providing better profit margins and incentives to retailers so that the
salesmen could behave more enthusiastically about Whirlpool products
During the HoReCa activation I found that it would have been better if some
paper work was done for gifts to be provided.
Whirlpool should mainly focus on displaying its products at Croma,
Reliance Digital, E-Zone etc. as well as unorganized retail outlets as there
seems to be an increase in popularity of modern trade among the customers.
.
14. BIBLIOGRAPHY
http://www.slideshare.net/arunspeaker/human-resource-training-
development
http://www.skwirk.com.au/p-c_s-14_u-189_t-505_c-
1863/nsw/history/australia-s-social-and-cultural-history-in-the-post-war-
period/the-impact-of-changing-technology-on-everyday-life/home-
appliances
http://profit.ndtv.com/stock/whirlpool-of-india-ltd_whirlpool/reports-
auditor-report
http://askguru.net/t-a-market-survey-on-consumer-usage-and-satisfaction-
regarding-whirlpool-refrigerator
http://www.whirlpoolcorp.com/about/history.aspx
http://in.reuters.com/finance/stocks/companyProfile?symbol=WHIR.BO
http://www.whirlpoolcorp.com/brands/whirlpool.aspx
http://www.scribd.com/doc/60190979/Whilpool-Ppt
http://www.scribd.com/doc/36171959/whirlpool-Project-Report
http://www.scribd.com/doc/27947503/whirlpool-vision-statement
ANNEXURE