Summer Internship Report of Whirlpool of India Limited

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Whirlpool of India Ltd.

2013

1. EXECUTIVE SUMMARY

Whirlpool, right from its inception in 1911 as first commercial manufacturer of


motorized washers to the current market position of being world's number one
manufacturer and marketer of major home appliances, has always set industry
milestones and benchmarks. The parent company is headquartered at Benton
Harbor, Michigan, USA with a global presence in over 170 countries and
manufacturing operation in 13 countries with 11 major brand names such as
Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Laden and Ignis.

Whirlpool initiated its international expansion in 1958 by entering Brazil.


However, it emerged as truly global leader in the1980's. This encouraging trend
brought the company to India in the late 1980s.

My project ‘Price Mapping, Branding and Sales Promotions’ was started in


Whirlpool India Ltd, with an induction training on 15 th May, 2013, with the
supervision of Mr. S.P Singh along with Mr. Rajveer Singh, Mr. A.P, Mr. Yogesh
Kumar. On that day, we assigned different groups with the work. From the
inception of my on-the-job training as well as the project work, I had gone through
with 4 different stages of my work assigned which are as under stage by stage-

Stage I:- HoReCa Order Approval

Stage II:- Price Mapping

Stage III:- HoReCa Inspection

Stage IV:- HoReCa Activations.

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.

The jackets were to be provided free of cost to the restaurants/bar/pubs clubs.


There was a provision of gifts such as microwave oven if the restaurants agreed to
keep the jackets for 6 months.

Price mapping was the second stage of my internship. The main objective of the

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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.

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2. INTRODUCTION

Today’s business environment demands that every businessman possess a wide


range of knowledge, skills and competencies as well as sound understanding of
management processes and functions. Managers need to be able to make best use
of their time and talents and of other people’s, and to work with and through others
to achieve corporate objectives. They also need to demonstrate a full understanding
of business environment and of their organization’s key resources. Its people,
finance and information amongst these key resources, the people factor is
considered to be the most valuable asset for any organization. These people i.e.
employees of the organization are the internal customers of that organization who
are as important as the external customers.

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.

Satisfaction is the persons feeling of pleasure or disappointment resulting from


comparing a product perceived performance in relation to his/her expectation. If
the performance falls short of expectation the customer is dissatisfied. If the
performance matches the expectation the customer is satisfied. If the performance
exceeds the expectation the customer is highly satisfied or delighted. Many
companies are aiming for high satisfaction level because there are many customers
who switch between one or more brands in order to maximize their satisfaction
level.

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Therefore,

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

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

• A customer is the person who brings company his wants.

• A customer is not an interruption to marketers work; he is the purpose of it.

Consumer durables Industry is growing at a rapid pace. Price Affordability,


Product Awareness and availability have helped the industry players to generate
great business. But doing business in Indian Market is not easy. Continuous
improvement in Product quality and post sales service at affordable price is
common to all Consumer durable manufacturers across Industry. But the company
which would introduce innovative product, with unique technology and provide
convenience by satisfying them with something new would surely attract
customers. Whirlpool Appliances which is one of the largest Home Appliances
brand in the world.

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.

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3. INDUSTRY PROFILE

3.1 CONSUMER DURABLE

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.

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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

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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.

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3.2 HOME APPLIANCES

The 1950s - A decade of change

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.

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1960s - Mass production and disposable appliances

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.

1960s - Design considerations

The aesthetic qualities of domestic appliances became a prime consideration for


consumers in the late 1950s. The appearance of early home appliances bore many
similarities to heavy industrial factory equipment - an attempt by manufacturers to
emphasize the efficiency of their products. Such designs, however, tended to make
appliances look more like hard work than a pleasurable experience.

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Many people also liked to display appliances in their lounge rooms as show pieces
rather than hide them away in the kitchen and laundry.

As a result, manufacturers altered the design of home appliances. Rather than


looking like pieces of industrial machinery, appliances became smoother, shinier
and more stylish and available in a variety of colors.

1970s and 1980s

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.

1990s - Environmentalism and the era of improvement

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

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incredible array of machines that would make cappuccinos, bake bread, churn
homemade ice cream and even blow the leaves off their driveways.

Advances in home appliance technology led to the introduction of different plastics


and other new materials. Thermoplastics increased strength and durability and
other plastics reduced the weight of appliances, which in turn lowered transport
costs. A 'noise-free' dishwasher was released in the early 1990s and manufacturers
developed quieter motors and new, sturdier types of metal and glass.

Environmental impact of home appliances in the 1990s

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.

Throughout the 1990s, concerns were raised about the environmental


consequences of dumping home appliances in landfill. Many appliances, especially
older ones, contained toxic substances like lead, chlorofluorocarbons (CFCs), oil
and grease. These substances could leach into soil and water and have serious
health and environmental effects.

Disused appliances also began to use up valuable landfill areas in densely

Populated regions, where landfill space was fast becoming a scarce resource.

As a result, the use of high energy-consuming appliances and the large-scale


dumping of home appliances in landfill areas became less socially acceptable
towards the end of the 1990s. People were encouraged to think carefully about the

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level of waste they were contributing to landfill and to consider their energy use in
the home when buying and maintaining appliances.

Social impact of home appliances in the 1990s

Time savers or time suckers?

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.

This peculiarity may be explained by the fact that as consumption increased


throughout the decades, the quantity of household chores also increased. Washing
machines, for example, may have reduced the time it took to wash clothes, but the
amount of clothes people owned in the 1990s had dramatically increased. Also,
home appliances may have made Australians more efficient, but the general level
of home cleanliness that was considered acceptable had also risen.

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.

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3.3 REFRIGERATOR

The "Refrigerator Industry in India" examines the evolution of the refrigerator


industry in India over the years. It examines the change in the structure of the
industry after the liberalization of the Indian economy. It also takes a look at the
different types of refrigerators available in India and examines their characteristics.
In addition, the note explores the characteristics of the refrigerator Industry in India
and the major players in the industry. The distribution channels used by the major
players are also discussed in detail. The note ends with a description of the future
of refrigerator industry in India.

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

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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.

The refrigerator industry is highly competitive which implies a high premium on


quality of the product. Manufacturers of refrigerators have, in general, improved
the quality of the product, especially the reliability of the compressor. In so far as
new technology is concerned the concept of "Frost free" refrigerators has been
gaining popularity. Non CFC (Non-Chlro-fluro-carbons) refrigerators are being
manufactured in the country but because of their high initial cost the demand is
sluggish.

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4. COMPANY PROFILE

WHIRLPOOL OF INDIA

Whirlpool, right from its inception in 1911 as first commercial manufacturer of


motorized washers to the current market position of being world's number one
manufacturer and marketer of major home appliances, has always set industry
milestones and benchmarks. The parent company is headquartered at Benton
Harbor, Michigan, USA with a global presence in over 170 countries and
manufacturing operation in 13 countries with 11 major brand names such as
Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Laden and Ignis. The company
boasts of resources and capabilities beyond achievable feat of any other in the
industry.

Whirlpool initiated its international expansion in 1958 by entering Brazil.


However, it emerged as truly global leader in the1980's. This encouraging trend
brought the company to India in the late 1980s.

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

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infrastructure that is witness of Whirlpool's commitment to consumer interests and


advanced technology.
The company's brand and image speaks of its commitment to the homemaker from
every aspect of its functioning. It has derived its functioning principles out of an
undaunted partnership with the homemakers and thus a slogan of "You and
whirlpool, the world's best homemaker" dots its promotional campaigns. The
products are engineered to suit the requirements of 'smart, confident and in-control'
homemaker who knows what she wants. The product range is designed in a way
that it employs unique technology and offers consumer relevant solutions.
In 2009, Whirlpool brand launched several major products in North America.  In
the laundry room, the new Cabrio washer is the answer to our consumers' quest for
high efficiency in a top-load configuration.  This latest innovation joins a plethora
of new color Whirlpool Duet washers and dryers to round out a complete family of
eco-efficient choices for laundry.  The focus on water and energy savings doesn’t
stop in the laundry room.  In the kitchen, Whirlpool brand will introduce a new
ENERGY STAR qualified French door bottom mount refrigerator that features In-
Door-Ice ice dispensing system.  This refrigerator is the ideal complement to
the Resource Saver dishwasher that cleans a full load of dishes using one-third less
water and energy.  And the Steam Clean range that lets you spot clean your oven
interior in just 20 minutes without using harsh chemicals or temperatures.

4.1 HISTORY

Year 1911
Louis Upton founded the Upton Machine in this year to produce motor-driven
wringer washers.

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Year 1916

First order of washers was sold to Sears, Roebuck & Co.

Year 1929

Upton Machine Company merged with Nineteen Hundred Washer Company


of New York.

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

The Company was rechristened as ' The Whirlpool Corporation.'

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.

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Year 1986

The 'Kitchen Aid' division of Hobart Corporation was purchased.

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

The Company introduced and committed globally to its Worldwide Excellence


System, which is a TQM program dedicated to exceeding customer expectations.
The vision to globalize 'Whirlpool Corp' was realized in the same year.

Year 1993

First time Whirlpool became the No.1 stand-alone brand in UK,


Ireland, Netherlands and Belgium.

Year 1995Whirlpool Corp. acquired majority of stake in the TVS Whirlpool


Ltd. The DC manufacturing facility of Kelvinator India was also acquired.

Year 1996

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Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to


form Whirlpool of India Ltd.

Year 1998

This year gave birth to a new company vision that says, "Every Home everywhere
with Pride, Passion & Performance.

Year 1999

Whirlpool of India crossed the milestone of 1 million sales of appliances

Year 2002

The ' Whirlpool Strategic Architecture ' was launched as a framework to achieve


the vision. The revenues of Whirlpool Corp. soared to $10.5 Billion.

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

A new mission statement of "Everybody creating loyal customers for life" was


adopted.

Year 2006

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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

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investment Whirlpool Corporation has made anywhere in the world— which


“reinforces our commitment to the competitiveness of U.S. manufacturing.”
Whirlpool Corporation opens the World of Whirlpool, a new product experience
center in Chicago, Illinois.
Whirlpool Corporation opens its first stand-alone appliance store outside its
Shunde, China, microwave plant. Since Whirlpool Foundation’s founding in 1951,
organizations and programs have benefited from more than $128 million in grants.
Maytag brand commits $4.5 million to commend Boys & Girls Clubs that exhibit
exemplary performance. Through a new partnership between Maytag and Boys &
Girls Clubs of America, the chosen clubs will receive up to $150,000 to continue
their great work and positive impact on youth, their families and the community.
Seven inaugural Maytag Dependable Club award recipients are selected from
around the world, including one club located on a military installation in Germany.
Whirlpool Corporation debuts the $500 million Harbor Shores development, a
social and economic development project aimed to promote Benton Harbor and St.
Joseph, Michigan. Project features Jack Nicklaus Signature golf course, which will
host the 2012 and 2014 Senior Professional Golf Association Championships.
Whirlpool Europe Region changes its name to EMEA—Whirlpool Europe, Middle
East and Africa—to be more reflective of the business.
Year 2011
Whirlpool Corporation celebrates its 100th anniversary.

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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

Creating happier homes

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.

Whirlpool aspires to continuously contribute to this source of happiness, the home,


by delivering more than expected performance through its product and services,
performance that delivers not just convenience but qualitatively a better experience
to improve quality of life.

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Thus the brand vision is to create better homes, better lives & a better world – a
world we all want to live in.

4.3 VISION AND MISSION

Vision

Every Home, everywhere, with pride, passion and performance

Our vision rests on the pillars of innovation, operational excellence, customer-


centric approach and diversified talent. These are embedded within our business
goals, strategy, processes and work culture.

Mission

Everyone, Passionately Creating Loyal Customers for Life

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

Great results can be achieved through relationships built on trust, encouraging


diversity and making the most of every individual's potential and contribution.
Work is only one of the elements of a fulfilling and rewarding life.

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Integrity

Working in a correct, responsible way is important. There is no right way of doing


the wrong thing. Maintaining the highest possible standards of personal,
professional and legal conduct, whilst treating the others with the utmost respect, is
of fundamental importance.

Diversity and Inclusion

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.

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4.5 STRATEGIES

What truly distinguishes Whirlpool Corporation is our commitment to building


strong brands and a loyal consumer base. Around the globe, their customers trust
Whirlpool to make their lives easier. Everything they do contributes to building
unmatched levels of loyalty to their brands through lifelong relationships with their
customers.

They are committed to their brand value-creation strategy — focusing on


innovation, cost productivity, product quality and consumer value. They continue
to improve their global operating platform to ensure they are the best-cost and best-
quality appliance manufacturer worldwide. Their supply chain has been
transformed to better deliver products to trade customers and consumers. And we
are seeing the benefits of these actions today through a stronger network, increased
efficiencies and timely deliveries.

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

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resources, which is unmatched in the industry. They’re creating better, more


innovative products that improve consumers' lives — in and around the home —
each and every day. And they’re committed to being an agile, global consumer
products company that creates value through their brands and innovations. They
know that their compelling and growing brands, fueled with innovation, attract and
retain loyal customers for life.

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.

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4.6 INNOVATIONS

Whirlpool Corporation firmly believes innovative thinking comes from everyone,


everywhere. Nearly 10 years ago, we launched a worldwide effort to instill
innovation as a core competency throughout the entire organization. Since then,
Whirlpool employees worldwide have participated in and contributed to
innovation-related activities resulting in new ideas, products and services; thus
delivering real value to consumers in ways never before seen in either the company
or the home appliance industry.

Focused on embedding innovation as a core competency, Whirlpool Corporation


has made a long-standing investment to build this competency. This investment
includes redesigning business processes, training thousands of employees, building
an innovation management system and changing the culture of the company.

Innovation attracts consumers to our wide portfolio of brands; however it also


offers a sustainable competitive advantage. In 2007, Whirlpool Corporation
generated more than $2.5 billion of worldwide revenue from product innovations
—well exceeding projected targets for the year.

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4.7 AWARDS AND RECOGNITION

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

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3. 1 India's Best Company for Leadership Development by Great Place to


Work
4. 15 India's Best Companies to Work for by Great Place to Work
5. Best Consumer Durables Company...Dun & Bradstreet Corporate Awards
2010

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

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1. NDTV Profit Business and Leadership Award 2008 for "the best Consumer
Durables Company".

5. GLOBAL SCENARIO OF WHIRLPOOL


COUNTRY KEY STATS BRANDS LOCATIONS

NORTH  No. 1 position in Headquarters: Benton


AMERICA the industry United States Harbor, MI
 $7.9 billion of sales KitchenAid, Manufacturing
 $810 million of Whirlpool, Locations:
operating profit Roper by Whirlpool United States Laverne,
 Approximately Corporation, Estate, TN;
31,000 employees Gladiator Findlay, OH; Marion,
Canada OH;
Inglis,Whirlpool, Greenville, OH; Clyde,
KitchenAid OH;
Mexico Whirlpool, Benton Harbor, MI;
Acros, Evansville, IN; Fort
Supermatic, Crolls Smith, AR; Tulsa, OK;
Oxford, MS
Canada Montmagny,

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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

6. MARKETING MIX OF WHIRLPOOL INDIA LTD.

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

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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

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future products will be designed as an environmental friendly product in


accordance to customer expectations.

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

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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.

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7. PRODUCT MIX OF WHIRLPOOL

Whirlpool Product
Mix

Refrigerator Washing Microwave AC’s &


Machine UPS’s

Direct cool Semi Solo Split AC’s


Automatic
Frost Control Window
Grill
Fully AC’s
Frost Free
Automatic Convection Sin Wave
Fusion 24 (top load) Platinum
Premium Magic Cook
Fully Sin Wave
Professional Automatic 22C HUPS
480 litres. (front load) Silver Series
Jet Chef
White Magic
800H

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8. WHIRLPOOL REFRIGERATORS

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DOUBLE DOORS

NEO 465 CLUB IMPERIA(450 L) NEO 495 CLUB IMPERIA(480 L)

MASTERMIND 235 DELUXE 3S(220 L)

NEO IC305 FCGB5(292L)

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SINGLE DOORS

245 GEN PREMIER 5QG(230 L) 245 FUSION AUTO 5FEG(230 L)

230 I-MAGIC 5DG(215 L) 205 I-MAGIC 5G(190 L)

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MULTI DOORS

FP 343D PROTTON DLX(330 L) FP 483D PROTTON DELUXE(440L)

FP 263D PROTTON DLX(240 L) FP 283D PROTTON ELT(260 L)

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9. PROJECT UNDERTAKEN

My project ‘ Price Mapping, Branding and Sales Promotions’ was started at


Whirlpool India Ltd, with an induction training on 15 th May, 2013, with the
supervision of Mr. S.P Singh along with Mr. Rajveer Singh, Mr. A.P, Mr. Yogesh
Kumar. On that day, we assigned different groups with the work. From the
inception of my on-the-job training as well as the project work, I had gone through
with 4 different stages of my work assigned which are as under stage by stage-

STAGE DATE DESCRIPTION

I 15th May - 5th June HoReCa Order Approval

II 7th June – 24th June Price Mapping

III 25nd June – 12th July HoReCa Inspection

IV 14th July - 20th July HoReCa Activation

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STAGE I : HoReCa ORDER APPROVAL


(15th May - 5th June)

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.

The jackets were to be provided free of cost to the restaurants/bar/pubs clubs.


There was a provision of gifts such as microwave oven if the restaurants agreed to
keep the jackets for 6 months.

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Figure: Whirlpool neo-i-chill cooling jacket (actual) conceived by Lowe Lintas for
promotion and awareness of the customers.

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The use of the jacket is shown below:

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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.

Area Assigned: East Delhi

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Details of the Stage I : HoReCa Order Approval

 List of restaurants/bars/pubs/clubs were created for the area assigned.


 Visit was made taking in consideration the appropriate timings so that we
were entertained by the owners
 I was given a printout showing the use of whirlpool neo-i-chill jacket or tent
cards
 I was supposed to convince the restaurants owners to keep the whirlpool
neo-i-chill jacket on their tables and bar counters so that it is in customers’
view

No of Restaurants

10

Approved
Disapproved
Awated
18

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STAGE II : PRICE MAPPING

(7th June – 24th June)

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.

Method used: Mystery Shopping

Mystery shopping or a mystery consumer is a tool used externally by market


research companies, watchdog organizations, or internally by companies
themselves to measure quality of service, or compliance with regulation, or to
gather specific information about products and services. The mystery consumer's
specific identity and purpose is generally not known by the establishment being
evaluated. Mystery shoppers perform specific tasks such as purchasing a product,
asking questions, registering complaints or behaving in a certain way, and then
provide detailed reports or feedback about their experiences.

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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.

MRP and MOP

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
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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

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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.
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Area Assigned: East Delhi

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Difference between MRP and MOP in different areas

Laxmi Nagar and Preet Vihar

MRP & MOP difference for whirlpool refrigerators in


Laxmi Nagar and Preet Vihar
23000
22625
22000
21500 21500 21500 MRP
21000 20800
20500 20550
20800 20800 MOP
Price in Rs.

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

MRP & MOP difference for LG refrigerators in Laxmi


Nagar
2 and Preet Vihar
23600 23460 23600
2 23100
22850
22500
2
21650
MRP
Price in Rs.

2 MOP
2050020100
2 20100 19800
19500
1
18600 18900 18900
18500
1 18000
17400
1

Average difference in MRP & MOP for LG refrigerators is Rs. 615

Mayur Vihar
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MRP & MOP Difference in Whirlpool refrigerators in


Mayur Vihar
30000

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

MRP & MOP Difference in LG refrigerators in Mayur


Vihar2
23500
2
22700
2
21650 21500
2 20900 MRP
Price in Rs

MOP
2 19800
18900
1 18900 18900
18400 18900 18750
18500
1 17900
1750017200
17000
1 17000

Average difference in MRP & MOP for LG refrigerators is Rs. 667

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Karkardooma

MRP & MOP difference for Whirlpool refrigerators in


Patparganj and Karkardooma
29000
28000
27900
27000

MRP
25000 24800 MOP
Price in Rs.

23000 22700 22900


22000 22500
21750
21000 20800 20200
20600 20500
19900 19600 19900
19000 19290
18590

17000

Average difference in MRP & MOP for Whirlpool refrigerators is Rs. 820

MRP & MOP differences for LG in Patpargang and


Karkardooma
27000
25500
25000 25200

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

Average difference in MRP & MOP for LG refrigerators is Rs.738

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STAGE III: HoReCa INSPECTION

(25th June – 12th July)

 On 25th of June I was assigned a restaurant / bar /pub/ lounge/ club.


 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.

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 The product training was focused on how to explain about the refrigerator
precisely (in 2 to 3 lines).

STAGE IV: HoReCa ACTIVATION

(14th July – 20th July)

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 After 19 days inspection at our respective location I was given task of


delivering the neo-i-chill jackets or tent cards at the locations which were
approved by us in East Delhi in Stage I.
 As the orders were approved almost one month ago I requested my industry
mentor that we should re-confirm the approved orders once again so that
there is no confusion at the time of delivering the jackets.
 On 18th July, 2013 we were provided with a Mahindra Scorpio with driver
by the company for making the deliveries.
 We were directed to deliver the jackets and take photos of the location.
 After the delivery of jackets was made at 7 locations we were directed to
take photos of their activation and interaction with the customers.

10. DETAILS OF WORK DONE

STAGE I : HoReCa ORDER APPROVAL (15th May - 5th June)


 List of restaurants/bars/pubs/clubs were created for the area assigned.

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 Visit was made taking in consideration the appropriate timings so that we


were entertained by the owners
 I was given a printout showing the use of whirlpool neo-i-chill jacket or tent
cards
 I was supposed to convince the restaurants owners to keep the whirlpool
neo-i-chill jacket on their tables and bar counters so that it is in customers’
view.

STAGE II : PRICE MAPPING (7th June – 24th June)

 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.

STAGE III: HoReCa INSPECTION (25th June – 12th July)

 On 25th of June I was assigned a restaurant / bar /pub/ lounge/ club.

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 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).

STAGE IV: HoReCa ACTIVATION (14th July – 20th July)

 After 19 days inspection at our respective location I was given task of


delivering the neo-i-chill jackets or tent cards at the locations which were
approved by us in East Delhi in Stage I.
 As the orders were approved almost one month ago I requested my industry
mentor that we should re-confirm the approved orders once again so that
there is no confusion at the time of delivering the jackets.
 On 18th July, 2013 we were provided with a Mahindra Scorpio with driver
by the company for making the deliveries.
 We were directed to deliver the jackets and take photos of the location.
 After the delivery of jackets was made at 7 locations we were directed to
take photos of their activation and interaction with the customers.

11. LIMITATIONS/CONSTRAINTS FACED

There were few constraints to be listed down which I faced in this period:
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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

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 Art of Mystery Shopping during the Price Investigation.


 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.
 Understanding of the East Delhi market of consumer electronics.
 Practical implication of branding and promotion strategy of home appliances
giant like Whirlpool.
 How to approach, communicate and finalize a deal.
 Details of the HoReCa channel of East Delhi.
 How to interact with customers and attend to their queries.
 I was give almost full responsibility for execution of the project from its
beginning to end so it taught me how to deal with intricacies of a project like
this.

13.RECOMMENDATIONS

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Whirlpool of India Ltd. 2013

 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.
.

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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

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ANNEXURE

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