A PROJECT REPORT

ON

“PANASONIC”

Submitted To:

IK GUJRAL PUNJAB TECHNICAL UNIVERSITY

KAPURTHALA

In partial fulfillment of the requirement award of degree of

Master of Business Administration (MBA)

SUBMITTED BY:- SUBMITTED TO:-

RISHAB MEHRA

DEPARTMENT OF MANAGEMENT

SWAMI SATYANAND COLLEGE OF MANAGEMENT & TECHNOLOGY

AMRITSAR

(2021 Batch)

i
 DECLARATION BY STUDENT

I Lakan Bali hereby declare that the Project titled PANASONIC is an Original piece

of work. It has been submitted in partial fulfillment for the Award of the Bachelor of

Business Administration.

Date:

Place Student signature

ii
 ACKNOWLEDGEMENT

This project has been an honest and dedicated attempt to make the analysis on
marketing material as authentic as it could. And I earnestly hope that it provides
useful and workable information and knowledge to any person reading it.

During this period, I had the pleasure of working closely with accomplished
organization people who shared with me their experience and helped me in
completion of my research.

I express my sincere thanks to my project guides and my institute faculty for guiding
me.

Lastly I am grateful to my parents who have been my mentors and motivators. I am

also thankful to all my batch mate who have been directly or indirectly involved in
successful completion of this project.

iii
 INDEX

Sr.No Contents Page No

1. Introduction 1-3

2. Company Profile 4-9

3. Product Profile 10-15

4. History 16-17

5. Overview Of Consumer Durable Industry 18-21

6. Future Plans Of Panasonic 22-25

7. Future Plans Of Panasonic’s Competitors 26-30

8. Objective 31-33

9. Basic & Network Basic 34-46

10. Conclusion 47-48

11. References 49

iv
 Introduction
The Panasonic Electric Works (PEW) group works actively toward the creation of
new products and new businesses to enhance the quality of life throughout the world.
The Group operates in six business sectors: Lighting Products, Information
Equipment and Wiring Products, Home Appliances, Building Products, Electronic
and Plastic Materials and Automation Control Products. These products are used in
houses, buildings, commercial and public facilities as well as in factories to support
communications, industry and everyday living and working activities. The Group core
business activities focus on creating living spaces that enable people everywhere to
enjoy more convenient, safer and more comfortable lives, with peace of mind, and on
offering eco-friendly solutions that ensure coexistence with the global environment.
In 2018, PEW will celebrate Panasonic‟s 100th anniversary. In preparing for this
momentous occasion, Panasonic aims to become the Number 1 Green Innovation
Company in the Electronics Industry.

The key to our success

Whenever we envision the future in these times of tumultuous change that defines our
operating environment today, Panasonic Electric Works draws its inspiration from the
Basic Management Objective set out by Konosuke Matsushita some 90 years ago.
The Basic Management Objective constitutes the Company‟s management philosophy
as well as spells out our mission. Furthermore, the Seven Principles, which are based
on this management philosophy, serve as action guidelines for the day-to-day
activities of employees

Global Activities

Panasonic Electric Works Co., Ltd. (PEW) traces its roots to the company founded in
1918 by Konosuke Matsushita. He was ahead of his time in recognizing that, by
combining a spirit of innovation with a willingness to talk to customers, it was
possible to create products with impressive user benefits. In 1935, the forerunner of
the PEW group was established to carry on the work of the initial wiring products
business. Sharing the same roots as PEW is Panasonic Corporation, well-known for
its consumer products. Konosuke Matsushita laid the foundation for a company that is

1
now one of the largest in the world. In its 90 years of existence, Panasonic has
developed some 220,000 products, ranging from high-quality lighting and information
systems to consumer goods and household appliances to precision components and
systems for industrial automation

2
Technical Excellence
The Panasonic Group is a global force. With our local facilities and branched around
the world, manufacturing know-how gained from decades of experience and a team of
premium process engineers, our customers can depend on excellent products and
outstanding customer support. The research teams use a global network of Panasonic
research centers and premier research institutions to explore and forge new
technologies. Necessarily, the equipment employed by our research centers is state-of-
the-art. Our goal is to expand the customers‟ future applications. Especially in the
field of applications technology, our customers play a key role during development.
Typical examples are MEMS (Micro Electrical Mechnical Systems), MIPTEC
(Microscopic Integrated Processing) and nano technology all of which accelerate the
micro-miniaturization of devices.
Excellence In Quality And Support
Cost-oriented manufacturing and cooperation with qualified suppliers allow us to
consistently offer quality products that are tailored to customer requirements at
competitive prices. Our customers benefit from high flexibility thanks to local
production and a central warehouse located in Germany. Our state-of-the-art
distribution center gives us a better overview of what we have in stock and how fast
products move, which allows us to eliminate unnecessary stock and keep our costs
down. Logistically, we can ship to customers directly, anywhere in Europe. Customer
satisfaction and trust are at the core of Panasonic Quality First activities. To ensure
top quality products and services, everybody is involved, from top management to
each individual employee. From product quality to management quality, we concern
ourselves with how to respond to a diversity of customer needs and expectations.
Thanks to local management, our customers can count on quick and competent pre-
and after-sales service.

3
 Company Profile

Panasonic Corporation, headquartered in Osaka, Japan, is a worldwide

leader in the manufacture of electronic products for a wide range of

consumer, business and industrial needs. With a turnover of USD 79

billion, the company ranks 65th in the Fortune 500 list of the largest

global corporations and is ranked 4th in Fortune 500 index for

„Electronics and Electrical Equipments‟ and ranked as a „World Super

50‟ by Forbes. Its operations span 9 countries, with a workforce of about

385,000 spread over 75 companies. Panasonic has built 297

manufacturing facilities across the world, and has an annual spend

exceeding US$5 billion on research and development. The Company

recently acquired Sanyo in a USD 9 billion deal, making it the world‟s

second largest conglomerate in the electronics industry.

The Company provides solutions, not just products, to make everyday

home and business life simpler, convenient and energy efficient, achieved

through innovative technologies. At Panasonic, designers and engineers

constantly endeavor to ensure that each evolution of product is better than

its previous version by following stringent process to develop products

that are more energy efficient, water efficient and long lasting. Under its

global Eco Ideas programme, which includes Eco Ideas for Life styles &

Business – styles, the company develops energy-efficient, state-of-the-art

4
products and encourages customers to live eco-conscious lifestyles with

an aim to reduce CO2 emissions in households and manufacturing units.

Company Vision: To be the No1 Green Innovation Company

worldwide in the Electronics industry by year 2018.

Company Mission: The belief in our basic management objective to devote

ourselves to the progress and development of society

and the well-being of all people around the globe has

been the foundation of the company.

Outline of Panasonic India

Date of Establishment: Panasonic India Pvt. Ltd.(Consumer Sales

Division) was established on 14th July 2006.

Wholly Owned Subsidiary: Panasonic Corporation

Principal Activity Panasonic India Pvt. Ltd.: (Consumer Sales

Division) is a sales, marketing and distribution company for the

Panasonic brand of consumer durable and home appliance products in

India. PI registered office is in Chennai, Tamil Nadu.

5
 India Operations

Panasonic India Pvt. Ltd (PI) operates through following companies:

 Consumer Sales Division (CSD) for making available consumer

electronics appliances from the Panasonic stable.

 System Sales Division (SSD) for making available display, projectors,

telephones, PBX/KTS, fax machines, security and networking products.

 Panasonic Automotive Systems India (PASI) specializes in sales and

support of in-car equipment and systems that provide comfort - such as

multimedia equipment- safety, environmental protection and power

management.

 Panasonic Industrial India (PIIN) for making available compressors,

motors for Air conditioners and Refrigerators, Various types of Battery

for application such as UPS / E-Bike / Windmill / Solar System / and

many other industrial applications, Components for Printed Circuit

Boards (Capacitor, Resistor, Coil, Switches, Sensors, Semiconductors,

and more.), Flat and Plasma Panel for Flat TV and Plasma TV, Heat

Exchanger for BTS relating applications, Welding and SMT equipments

for manufacturing Industry.

 Panasonic Home Appliances India Co. Ltd [PHAI] for manufacture,

import, marketing and sales of kitchen appliances and small domestic

6
 appliances. Product categories include beauty care, personal care and

health care items. PHAI is headquartered in Chennai, Tamil Nadu.

 Panasonic AVC Networks India Ltd [PAVCI] for manufacturer of

CRT TVs and LCDs. PAVCI is based in Noida, UP.

 Panasonic Energy India Co Ltd [PECIN] for manufacture and sales of

dry cell batteries. PECIN is based in Baroda, Gujarat.

 Panasonic Carbon India Co Ltd [PCIN] for manufacture and sales of

carbon rods. PCIN is based in Chennai, Tamil Nadu.

 Anchor Electricals is a group company of Panasonic Corporation in

India

 Sanyo and Panasonic Electric Works has fully amalgamated with

Panasonic Corporation.

Product Categories:

 Digital audio-visuals: Plasma/LCD/LED/3D TVs, DVD players,

cameras & camcorders

 Home appliances: refrigerators, washing machines, air conditioners,

microwave ovens, rice cookers & mixer grinders

 Health & Beauty appliances: handheld massager, water purifier & hair

dryer

 Professional communications: cordless phones & faxes

7
 Business solutions: multi-function copiers & notebook PCs

 Professional audio-visuals: professional cameras & security systems.

 Industrial components: compressors, motors for Air conditioners &

Refrigerators; Batteries for industrial applications; Flat and Plasma

panels; Welding and SMT equipments for manufacturing Industry

 Car equipments: in-car equipment and systems

The Company promotes technology transfer in recognition of the wisdom

of shared expertise and resources in order to enhance product and

machine technology advancement, productivity and quality excellence.

With local participation in its state-of-the-art R&D activities, there is not

only mutual technological progress but it also ensures the highest product

quality under the local operating conditions.

Growth and Achievements

 Panasonic in India registered sales of Rs 2,200 crore in FY 2009, and

was estimated to do a turnover of Rs 3,200 crore in FY 2010.

 Panasonic is investing USD 300 million in India to set up an R&D and

manufacturing facility and on marketing initiatives. Panasonic is

developing, in Haryana, the “Panasonic Techno park”, an R&D and

8
 manufacturing facility for air conditioners, refrigerators and washing

machines.

 Panasonic is on track to generate sales revenue of USD 2 billion by 2012

in India.

9
 Panasonic Products

Panasonic has offered a wide range of products and services, including air

conditioners, refrigerators, washing machines, compressors, lighting,

televisions, personal computers, mobile phones, audio equipment,

cameras, broadcasting equipment, projectors, automotive electronics,

aircraft in-flight entertainment systems, semiconductors, lithium batteries,

electrical components, optical devices, bicycles, electronic materials and

photovoltaic modules.[130] Ventilation appliances such as electric fans are

manufactured under KDK and rebranded as Panasonic.

1. R-31 Tube Radio

10
 Description English: Panasonic, Internationale Funkausstellung 2018,
Berlin
Date 2 September 2018, 13:42:34

Source Own work

Author Matti Blume

2. A Panasonic Lumix Camera

Description English: Panasonic Lumix DMC-G85/G80

This photograph was taken with an Olympus E-P5

Date 7 December 2016, 21:45:44

Source Own work

Author Petar Milošević

Permission
(Reusing this file) You can use this picture according to license. For use outside of
Wikipedia I would appreciate it if you let me know by sending e-mail
to petarmslo@gmail.com Thank you in advance.

11
 3. A Panasonic Toughbook Field Computer

Description English: rugged field computer (Panasonic CF-U1) with software

Field-Map[1] for cartography and field data collection.
Français : l'ordinateur de terrain durci (Panasonic CF-U1) avec
logiciel pour la cartographie et la collecte des données Field-Map[2].

Date 09.03.2010

Source Own work

Author Petr Vopenka

12
4. A Panasonic Mobile Phone

Description English:
SoftBank 001P
日本語:
ソフトバンクモバイル 001P

Date 9 April 2012

Source Own work

Author Kansai explorer

13
5. A Display Of Panasonic Televisions

Description Deutsch: IFA 2010, Berlin

Date 4 September 2010

Source Own work

Author Bin im Garten

14
 6. Technics Headphones

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Date/Time

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If the file has been modified from its original state, some details such as the
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accurate as the clock in the camera, and it may be completely wrong.

15
 HISTORY OF PANASONIC

Panasonic was founded in 1918 by Konosuke Matsushita. The

Panasonic brand was created from the elements "pan" meaning "all"

combined with "sonic" meaning "sound", because it was first used for

audio equipment.

The company that was to become Panasonic was started on March 7,

1918, when Konosuke Matsushita moved from his tiny dwelling to a

larger two-story house, and set up Matsushita Electric Housewares

Manufacturing Works. The staff consisted of three people: the 23-year-

old Matsushita, 22-year-old Mumeno and her brother Toshio lue, then

just 15. The Panasonic brand was created by Matsushita in 1955 for the

Americas region because the National brand was already registered by

others.

Matsushita manufactured two new products-an attachment plug and a

two-way socket. They proved popular as they were of higher quality than

other products on the market, and were 30% to 50% cheaper.

"'...(Youth) is a matter of the will, a quality of the imagination, a vigor of

the emotions...Youth means a temperamental predominance of courage

over timidity, for adventure over the love of ease...'

16
"The exercise of creativity and daring brings problems to the surface, but

it also imbues us with the vigor to confront them.

Daring always implies a risk of failure, from which we must be willing to

stand up and try again. Yet even failures can empower us. To do the

pedestrian, the obvious, accomplishes nothing. We will create a bright

future for our company when each employee sits down and asks him or

herself about what he or she should be doing."

Today, Panasonic is a Multi-Million Company, spread throughout the

globe. There would hardly be someone who is not using even a single

product of Panasonic. And, Panasonic India is Panasonic Corporation's

Indian Branch, which is emerging as a National Giant, catering quality

products to the Consumer Market in India.

National Panasonic India Ltd. was established in 1994. It was set up to

provide higher quality Electronic Products supported by service In India.

The Electronic Products from Panasonic can be classified into three

categories comprising a variety of products under them. About 50% of

turnover comes from the Japanese domestic market and of the rest, India

contributes about 4%. In India, Panasonic is among the top 100 Most

Trusted brands listed by The Brand Trust Report.

17
 OVERVIEW OF CONSUMER DURABLE INDUSTRY

Consumer durables are the products whose life expectancy is at least 3

years. These products are hard goods that cannot be used up at once. The

consumer durables sector can be segmented into consumer electronics,

such as

CLASSIFICATION

WHITE GOODS KITCHEN CONSUMER

APPLIANCES/BROWN ELECTRONICS

GOODS

• Refrigerators • Mixers • Mobile phones

• Washing machines • Grinders • Televisions

• Air conditioners • Microwave oven • MP3 players

•Speakers and audio Irons • DVD players

equipment

• Electric fans • VCD players

• Cooking range

• Chimneys

18
Degree of Rivalry

Degree of rivalry denotes the intensity of competition within the industry.

Panasonic, Samsung, LG, Sony are the major competitors in television

industry. Onida and Videocon are other big competitors Although

Panasonic, another major player has managed to hold its own in the midst

of the onslaught from the Korean majors. Other large Indian companies

in the top of the list are Mirc Electronics. While Mirc Electronics is

managing to hold its share by adopting value for money strategy, BPL is

facing tough time, experiencing drastic decline in market share. Sony,

Philips, Akai, Sansui, Aiwa, Toshiba and now Hyundai are the other

foreign brands in the market. The industry is based on numbers game and

companies will have to maintain a fine balance between catering to

lifestyle requirements and meeting the needs of average consumer.

PANASONIC:

Introduced its new global branding concept slogan of "PANASONIC

ideas for life", the company is implementing a worldwide brand strategy,

here in India. The new slogan is reflective of Panasonic's aim to redefine

its brand value, which will deliver ideas that are valuable and beneficial

to their customers in their daily life.

19
Mr. Manish Sharma, Director - Marketing, Panasonic India has been

formulating and implementing Panasonic‟s marketing initiatives in India,

to effectively communicate the Panasonic brand values. As a major

initiative in this direction, he has been instrumental in celebrity

associations with Panasonic and endorsement of sporting events. With his

innate understanding of Panasonic and the India market, he has catapulted

the Panasonic brand to make it high on local flavor with a major youth

connect, and a presence across India. An integral part of the strategy has

been plans to introduce Panasonic products in India that match the needs

and aspirations of Indian households and businesses.

Panasonic has been in India for close to 38 years, and is now in the

process of consolidating its operations here. Panasonic India, the Global

Technology leader has introduced its new range of CRT TV sets namely,

21GX20C, 21FX20CGSI and 21FX70C3 packed with exciting features.

Priced between Rs 7790 and Rs 9990, Panasonic‟s new range is aimed to

enhance the wholesome TV viewing experience of the customers by

creating a captivating environment that is best ensured with the rich

features it‟s equipped with.

The new found aggressiveness of Panasonic India marks a sea change in

20
the company‟s attitude where it seems keen to regain its leadership

position in consumer durables and other technology products. During

2001 to 2008 the company saw its sales dipped and it conceded market

share to Samsung, LG and Sony. “It was during these times that globally

there was a major technological shift across product categories and Indian

market was relatively smaller. Globally the company chose to focus on

other developed markets instead,” The company will tweak its products

to meet the specific requirements of Indian consumers. We are exploring

opportunities in the mass segment especially in the tier-II and tier-III

cities. Panasonic has identified three business verticals to drive sales

growth. The first comprises consumer durables with LCD and plasma

televisions, ACs, refrigerators, the second camera and office automation

products while the third would be accessories for audio-visual products.

Besides understanding the strategy adopted by different players, several

other factors industry growth, concentration and balance, corporate

stakes, fixed cost, and product differences need to be analyzed to

determine the extent of rivalry between the existing Players.

21
 FUTURE PLANS OF PANASONIC

 Panasonic India is all set to relaunch Japanese consumer

durable brand Sanyo in the country by April next year. 'We want

to market Sanyo brand in tier II and tier III cities in the country

while Panasonic will penetrate the metro and other big cities,'

Manish Sharma, director (marketing) of Panasonic India revealed

at one of press conference. Panasonic plans to project Sanyo as a

mass market brand in the country. Panasonic had bought the Sanyo

brand for $9 billion. Panasonic would introduce sound system,

LCD, refrigerators and washing machines under Sanyo brand.

 Panasonic aims to generate $2-bn revenue from India

With its South Korean competition including Samsung and LG retaining

their firm grasp over India's consumer electronics market, Japanese major

Panasonic is banking on localized products and significant marketing

spend to make inroads into one of its strategic regions.

By 2012, Panasonic intends to generate sales revenues of about $2 billion

(about Rs 8,900 crore) from India, which will be a substantial jump from

its turnover of Rs 3,200 crore in FY 2010. The consumer durable segment

accounts for 65 percent of Panasonic's turnover in India.

22
"I cannot tell you how much we will spend there," Panasonic Asia Pacific

Managing Director Yorihisa Shiokawa told Business Standard when

asked to specify the company's likely investments in India, "but it is very

much true that Korean manufacturers like Samsung and LG have

developed their business and are much ahead of us."

As part of its plan to gain market share, Panasonic will establish its

largest manufacturing facility in the country in Haryana, which will be

operational by 2012, apart from the recently announced research and

development centre in Gurgaon that will focus on products for the

domestic market. Both facilities will have a combined cost of under $300

million, according to the company's website.

 Panasonic India is also setting up a techno park in Jhajjar,

Haryana, with an investment of Rs 1,000 crore, which

manufactures ACs. The park will be ready by August 2012.

"Panasonic has a 4 per cent market share, but are targeting 15 per

cent market share by the end of 2011. Of the total air-conditioner

market in the country, 75 per cent belongs to split, while the

remaining is window ACs. The company aims to capture 25 per

cent market share in split ACs by 2012,".

23
  Part of the challenge, however, remains with the Indian consumer,

Shiokawa explained, who have specific preferences, unlike those in

other markets. As a result, Panasonic believes that its products will

have to be tweaked to cater to local inclinations.

"For instance, we developed and introduced a new LCD TV and home

theatre system under the name 'Sound for India'. Volume, particularly

bass sound, should be strengthened much more than the standard market.

We were able to successfully develop these products and introduce them

to the market, and we have been accepted," he added. For the same

reasons, Panasonic also developed its Cube air-conditioner, a split unit

available at the cost of a window unit.

 Panasonic is aiming for a billion - dollar revenue from its India

operations by 2012 and is looking to foray into the automobile

sector. The company is in the process of negotiating with leading

car makers in the country to sell its product to them, which it plans

to launch in the second quarter of 2011.

 While innovation and localization are important, the

electronics maker will also look at increasing its brand

awareness and presence."On one hand, product-wise, we are

24
 trying to develop proper products (suited) to the Indian market. But

we also have to make the products known to the consumer. We

need to invest in mass media advertisement. Therefore, this year,

we will invest around $40 million in advertising for the Indian

market," said Shiokawa.

 The company has also tied up with All India Football

Federation to promote its products. “Panasonic has been a strong

supporter and endorser of football in Thailand and is delighted to

extend this association in India with the sport,” Panasonic India

CEO Daizo Ito said.

25
 FUTURE PLANS OF PANASONIC’S COMPETITORS

The consumer durables sector has witnessed a tremendous growth in

recent times. Be it flat screen televisions or air conditioners (AC), timing

is not a constraint anymore. Though white good majors are known to

push their varied offerings in ACs during the summer months, some

companies are setting a new trend by launching new ACs in winters.

Powers saving devices are also in vogue this winter season. Companies

say timing or season is no longer a constraint for introducing new

products and hence consumer durable firms heat up market with

new AC launches.

Hitachi Home and Life Solutions (India) Pvt Ltd is keen to push the

envelope. The firm, which launched its 'Summer' brand of five-star rated

window ACs in Mumbai on Monday, is looking to capture 10 per cent of

the market share. The Bureau of Energy Efficiency (BEE) rates the power

saving potential of an electronic device and grants it star ratings. The

rating is on a scale of one to five. The higher the rating, the higher the

energy saving.

"Our 10 per cent market share target, in terms of sales volume, will

translate into 12 per cent in value terms in the next financial year," said

26
Motoo Morimoto, managing director (MD), Hitachi Home and Life

Solutions (India) Explaining the timing of their product launch, Morimoto

said, "India is a growing market. To get a large share, we have to lay

down our road map till 2015.''

Godrej Appliances, which has cornered over 7 per cent market share in

the AC segment, is looking to build on it this year. "The AC market in

India has been growing at a compound annual growth rate (CAGR) of 29

per cent. This year, the industry is expected to grow by 30-40 per cent

given the increase in disposable income," said Kamal Nandi, vice

president, sales and marketing, Godrej Appliances. "We at Godrej are

targeting 100 per cent growth with our recently launched range of 46 AC

models,'' Nandi added. Manish Sharma, director of marketing at

Panasonic India Pvt Ltd, said the company has witnessed a huge demand

for their power saving products. "We believe very soon all the customers

will switch to using inverter technology models, as it is efficient and

results in power saving.

Not to be outdone, Hitachi, too, has decided to adopt an aggressive

marketing plank. ``We offer 25 models of split ACs and 10 models of

window ACs. We also have plans to expand in either segment,'' said

Gurmeet Singh, vice president and head of sales and business planning,

27
Hitachi in one of the press release. "We will reach 317 towns by February

2011, from the 236 towns as on June 2010. In order to reach more

customers, we are also expanding our Kaze AC range for the mass

market," he said.

WHAT I LEARN DURING TRAINING

With the expansion of the Internet, the value of information safety

has been on the rise. There is no standard definition of intrusion detection

as such. Usually, intrusion detection is recognized as the discovery of

network behaviors that abuse or put in danger network security. Intrusion

detection can be treated as a pattern recognition problem which

distinguishes between network attacks and normal network behaviors or

further distinguishes between different categories of attacks.

Any set of events that try to compromise on the accessibility, reliability

or privacy of resources is called as interruption. An intruder is a person or

collection of persons who initiates the events during the interruption.

Also, the intruder can be from within the system, that is, someone with

the permission to use the computer with normal user privileges, or

someone who uses a hole in some operating system to escalate their

privilege level, or it can be from outside the system that is someone on

another network or perhaps even in another country who exploits a

28
vulnerability, weakness in an unprotected network service on the

computer to gain unauthorized entry and control.

An intrusion recognition system is in fact a security layer used to notice

continuing interfering activities in information systems. Conventionally,

intrusion discovery heavily depends on widespread knowledge of safety

experts, in particular, on their knowledge with the processor system that

is to be sheltered. To diminish this dependency, a variety of mechanism

learning techniques and data mining techniques has been deployed for

intrusion discovery. Most often working of IDS is in dynamically altering

surroundings, which results in constant tuning of the intrusion finding

model, so as to maintain enough presentation. The physical alteration

process necessary by current systems depends on the system operators in

functioning out the tuning answer and by integrating it into the discovery

model. Moreover Network intrusion detection aims at separating the

attacks on the Internet from normal use of the Internet. It is a very

important and essential piece of the information safety system. Due to the

diversity in network behaviors and the rapid development of attack

fashions, it is of prime importance to develop fast machine-learning-

based intrusion detection algorithms with low false-alarm rates and high

detection rates and.

29

1
Platform choice

Java Swing :

Swing is a toolkit fr Java. It is part of Sun Microsystems‟ Java

Foundation Classes (JFC) an API for a graphical user interface (GUI).

Swing was developed to give a more sophisticated set of GUI

components than the Abstract Window Toolkit (AWT). Swing gives a

native look and feel which emulates the look and feel of several

platforms.

Using Swings we will develop the user interface of our intrusion

detection system which will show all the functionalities of the system

such as create rule, prediction and tuning.

The most important advantage of java swings is the cross-platform

support, which allows developers to build applications that execute on

Windows, Mac and Linux. Swings in addition also provides a very rich

set of components and features that can very easily satisfy the

requirements of many types of different applications, such as

development tools, administration consoles, and business applications.

30
 Objective

Protection of any system forms an important aspect of any computing

system. Protection encompasses the accessibility, reliability and privacy

of the resources gave by a computing system. Three aspects of network

systems create these systems more susceptible to attack than as compared

to self-sufficient machines-

• Networks typically provide more number of resources than

independent machines

• Network systems are normally configured to facilitate resource

sharing

• Global protection policies that can be applied to all of the machines

in a network are rare.

As discussed earlier in order to reduce the dependency of security

experts, found in traditional systems there was a lot of research efforts

invested in different research projects which led to the rise of different

data mining and machine learning methods that could be easily

incorporated in different intrusion detection systems.

Audit data analysis and mining was one such technique that combined the

logic of mining association rules and classification in order to identify

and detect intrusion from the network traffic. Whereas ISA (Information
31
system assurance laboratory) utilized the technique based on statistics

along with chi-square and exponentially weighted moving averages for

statistical analysis of audit data.

Information security on the Internet consist the following:

1) Protection: The information system is automatically protected to avoid

security violations that are called intrusions.

2) Detection: Security violations are detected as soon as they occur.

3) Reaction: Reactions, such as pursuit of hackers or automatic alarm are

performed when the system is intruded upon.

4) Recovery: The information system automatically repairs the damages

caused by an intrusion.

Intrusion detection forms a crucial part of information security. Only if

intrusions are correctly detected can the subsequent reaction and recovery

be successfully implemented.
3

Intrusion detection system is based on the fact that an intrusion will be

detected by a change in the „normal‟ patterns of resources. Intrusion

detection is a methodology by which any undesirable or abnormal activity

can be detected. An intrusion discovery scheme is a monitoring system

which reports the entire gives alert to the system machinist whenever it

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infers from its discovery model. Intrusion discovery System (IDS) is

software, hardware or mixture of both, that is help to notice intruder

movement. IDS may have dissimilar capacities depending upon how

stylish and complex the mechanisms are. IDS appliances that are a

mixture of software and hardware are obtainable from lot of organization.

An IDS may possibly apply anomaly based techniques, signatures, or

together. Alerts are any kind of user announcement for an intruder action.

When IDS detects an intruder, it informs the security supervisor about

this by means of alerts. These alerts may be in the form of logging to a

console, pop-up windows, sending e-mail and so on. It is an

unrelenting active attempt in discovering or detecting the presence of

intrusive activities. As Intrusion discovery (ID) relates to computers and

network communications it encompasses a far broader range. All

processes recommended by it, to which are used in discovering or

detecting illegal uses of network or computer devices. This is achieved by

the use of purposely deliberate software with a lone reason of detecting

abnormal or irregular movement. Depending ahead the network topology,

we can place intrusion discovery systems at one or more locations. It also

depends upon the type of intrusion behavior we want to notice: interior,

exterior or both. For instance, if we wish to detect only exterior intrusion

behavior, and we have only single router linking to the Internet

33
 Basic

One of the approaches of developing a network safety is to describe

network behavior structure that point out offensive use of the network

and also look for the occurrence of those patterns. While such an

approach may be accomplished of detecting different types of known

intrusive actions, it would allow new or undocumented types of attacks to

go invisible. As a result, this leads to a system which monitors and learns

normal network behavior and then detects deviations from the normal

network behavior.

Fig 1:

Basic architecture of IDS

3.1.1 Data Sampling:

The first step in collecting data is to find exactly what type of data

should be collected. Because of the objective of this project is going

towards intrusion detection at the network level, a natural choice for data

34
transmission is the network transmission packet. The network gives two

types of information to study: transport information and user information,

but for this only transport information is selected. Transport data

information contains a structured pair of source and destination. It also

consists of some type of checksum on which the integrity of a packet is

determined. Transport information is added to the packet as a part of the

network transmission protocol. Transport information which cannot be

made deceptive by fraudulent user is called as unbiased data. The user

information contains information that is going to be transformed from one

machine to another. This can be easily modified by fraudulent user and

hence we call it as biased data. The next stair in collecting data is to

design a device for monitoring network packets. Since finding an

intrusion is not reliant on any particular method used to check packets,

any method that‟s capable of obtaining a suitable data example is

acceptable. The last step in collecting is to process it in such a way that it

is distorted into a format which is satisfactory to the classifier system.

3.1.2 Data Preprocessing:

There are some values which are important to classifier. These are as

given:

 Packet size value,

 timestamp value,
35
5
  Ethernet source-destination ordered pair.

There are 2 reasons for preprocessing data:

1) In the case of packet sizes and source and destination address, the

raw data can be compacted without loss of relevant information.

This results in data which is easier to manipulate for classifier

system. Also, this data requires less disk storage space.

2) In the part of time stamp information, the basic second count

provided is greater than before so as to comprise relative

information of day of week and hour of day. This allows for the

structure of network performance which is depends on human

temporal patterns.

3.1.3 Classifier system:

The classifier scheme is a similar, law based, message passing system.

All rules are of the type action form. This action form is receipt of the

messages and the action is the sending of messages when the rule is

satisfied. All messages hold a tag specifying their source and an extra

information field.

36
Fig 2: A classifier system consists of four parts:

1) An input interface

In this case an input interface is a message that contains

information taken from a 4-tuple describing an individual packet

information.
6
2) The classifiers

The classifiers are the rules which describe the behavior in which

the system operates and creates messages.

3) The list of message

The message list is a directory of all messages yet to be measured

by the classifier policy. The messages possibly will from fulfilled

rules or from input interface.

37
 4) The output interface

An output interface is message signifying whether recent network

performance is supposed to be regular or irregular.

Consider a simple example of how classifier system works. Suppose that

transmission of packets, each of size 100, were being considered as an

indicator of normal network behavior and anybody interested in the

number of packets of size 100 over a one second period needs to evaluate

5, 50 and 150 as possible threshold of abnormality.

Then there are three classifier rules:

1) Rule 1 would examine all mails from the input interface. It would now

use the size and time values in those messages to maintain a count of

packets of size 100 over a sliding time window of one second. After

giving out an input message it will set on the message list a message

of its own with the simplified count for the final second.

2) Rule 2 observes all messages set on the message list by Rule1. In case

the present count of packets of size 100 above the last second exceeds

5 then Rule 2 in turn puts message on the list of message notifying

that its threshold has been crossed.

3) Rule 3 and 4 reads all mails having from Rule1 and if the current

count exceeds their particular threshold of 50 and 150 they too put

messages on the list of message.

38
The productivity interface attends to all messages from Rule2,3,4.when

any of those rules have excited and put a message on the list

demonstrating that its threshold has been exceeded, then the output

interface will inform the surroundings that the rule is predicting the

occurrence of abnormal behavior.

3.1.4 Types of IDS:

Intrusion discovery systems can be broken down up into 3 major

categories:

1. Host-based Systems: is a system in which an IDS examines data

that comes straight from individual systems, or computers (hosts),

it is host-based. Examples of data sources include event logs for

and applications (Web servers, database products, etc).

2. Network-based Systems: When IDS observes data as it moves 7

crossways the network, such as TCP/IP traffic, it is called as

network based.

3. Hybrid Systems: A hybrid scheme is just an IDS that has features

of both network based scheme and host based scheme.

3.2 System Overview

Since the introduction of the Internet, intrusion attempts on Network

Systems have increased to a great extent. With increase in security

39
measures, there have been clever attacks by much more sophisticated

attackers. Because of this Network Intrusion Detection Systems (NIDS)

have become increasingly necessary in today‟s scenario. In the current

scenario if you have internet, then firewall as well as network intrusion

detection system is essential.

There is already a number of "ready to run" i.e. software option

available which try to provide some measure of network security. An

intrusion in computer networking terms is defined as someone (hacker,

cracker) trying to bypass security protocols and infiltrate a network

system. The impulse behind this could be something as small as misusing

e-mail for spam, stealing confidential data, or any number of things for

which a system administrator could be held responsible. Evidences have

shown that these attacks are becoming more intelligent, subversive and

harmful. It has become certain that anyone accountable for a network

with an Internet presence is now a potential target, and intrusion detection

systems are quickly becoming an essential necessity.

3.2.1 Beginning

A USAF paper available in Oct 1972 written via James P. Anderson

explained the fact that the USAF had "become ever more aware of

computer security problems. This difficulty was felt practically in every

part of USAF workings and administration". During that period of time,

40
USAF had to perform the daunting tasks of providing shared used of their

computer systems, which consisted of various levels of classifications in

a need to know environment with a user base containing various levels of

security clearance.

Thirty years ago, this created a serious problem that still exists with

us today. The problem is: How to safely protect separate classification

domains on the same network without any compromise in security? The

first task was to find and define the threats that existed. Before designing

IDS, it was necessary to understand and comprehend the types of threats

and attacks that could be mounted against computers systems and how to

recognize them in an audit data. In fact, it was possibly referring to the

necessity of a risk evaluation plan to understand the threat (what the risks

are or vulnerabilities, what the attacks might be or the means of

penetrations) thus subsequent with the creation of a security policy to

protect the systems in place. Among 1984 and 1986, Dorothy Denning

and Peter Neumann examined and designed the first model of real-time

IDS. This trial product was named the Intrusion discovery Expert scheme

(IDES). This IDES was originally a rule-based specialist system skilled to

detect known cruel movement. This same system has been developed and

improved to form what is identified today as the Next Generation

Intrusion discovery Expert scheme (NIDES).The report published by

James P. Anderson and the work on the IDES was the start of much of the

41
research on IDS throughout the 1980s and 1990s.An intrusion detection

system (IDS) is a system designed to systematically detect host attacks on

a network. These systems provide a secondary, passive level of security

by providing the administrator with critical information about intrusion

attempts. Datagram‟s are simply the packet bundles of information that

computer systems use to communicate with each other over the network.

Typically an IDS is not intended to block or actively counter attacks, but

some newer systems have an active capacity for dealing with threats.

Indeed, a very knowledgeable human being should be watching and

making value judgments on the 'alerts' that the IDS has presented him or

her with. While firewalls can be thought of as a border or security

perimeter, IDS should detect whether that border has been reached .Under

no circumstances does an IDS guarantee security, but with proper

policies, authentication, and access control, some measure of security can

be attained.

3.2.2 Types of IDS

3.2.2.1 Host-Based

Host-based approaches detect intrusions utilizing audit data that are

collected from the target host machine.

42
As the information given by the review data can be tremendously

inclusive and complicated, host based approaches can acquire high

discovery rates and low false alarm rates.

However, there are disadvantages for host-based approaches, which

include the following:

1) Host-based approaches cannot easily prevent attacks: when an

intrusion is detected, the attack has partially occurred.

2) Audit data may be altered by attackers, influencing the reliability of

review data.

The data from a solo host is used to notice symbols of interruption as the

packets Enters or exits the host. Host-based systems are becoming more

and more popular due to their effectiveness at handling insider misuse. 9

This is mostly due to the IDS assembly data (log files) from each

dangerous machine within the network, while network based systems can

only analyses the data that passes by a exacting network node.

Host based scheme stand out at stopping the following:

 Data Access/Modification: The makeup of mission critical data is

different for every organization, but includes things like the Web

site, customer or member databases, proposal information, and

personnel records. By observance an eye on the access of this data

43
 and taking note of changes, host based IDS‟s are superior at

significant when something altered that should not have.

 Abuse of Privilege: This is probably one of the most serious

problems in most organizations, and an area where host-based

IDS‟s excel. By observing track of changes to permissions, the host

based scheme can inform safety personnel when the doors are

swinging too large. In adding up, most host based scheme allow

safety admin to get a rapid view of the privileges that survive

across their organization, and can ensure that people like past

employees are detached from all systems.

44
Network-Based

Network-based approaches detect intrusions using the IP package

information collected by the network hardware such as switches and

routers. Such information is not so plentiful as the review data of the

objective host machine. Nevertheless, there are advantages for network

based approaches, which include the following:

1) Network-based approaches can detect the so-called “distributed”

intrusions over the whole network and thus lighten the burden on each

individual host machine for detecting intrusions.

2) Network-based approaches can defend the machine against attack, as

detection occurs before the data arrive at the machine.

The information from a network is scrutinized next to a database and it

flags those who look doubtful. Review data from one or more than a one

hosts may be used as well to detect symbols of intrusions. Network based

systems focus on observing the network packets, by sniffing them, which

means that they proof traffic as it goes by. Some IDS's of this type can be

installed in more than one location, which is usually referred to as a 10

Distributed IDS. Network-based IDS's tend to be less expensive than their

host based cousins, as they typically only need to be installed near the

entry/exit point of the network.

45
Network-based systems do extremely well at stranger attacks, and focus

on catching people before they are authenticated. Areas where they will

be good at comprise stopping the following:

 DOS & Packet Manipulation: A denial of service (DOS) attack is

when someone sends an overload of network packets to a single

resource, causing it to either crash or become so slow as to be

unresponsive. A more advanced version is the Distributed Denial

of Service attack, in which multiple computers all attack the

resource simultaneously. Many network attacks involve sending

network packets that are of incorrect size or configuration, which

often causes the targeted resource to crash. Network-based IDS‟s,

because they can process huge amounts of network traffic and sit in

an optimal location, are excellent for blocking such attacks.

However, note that they can also be a prime target for these

attacks.

 Unauthorized Use: This is the most common attack type that

people think of when they hear about IT security. Network-based

IDS‟s are ideal for tracking unauthorized access, meaning intruders

that are attempting to login to a machine without the proper

credentials, compromise a machine to create a jump-off point, and

those that are looking to grab passwords or data.

46
 CONCLUSION

Excellent product quality: This refers to the product ability to satisfy

consumers or customers need, both functionally and emotionally. This is

the most important factor if a brand is to be a winning brand. Users are

getting smarter in their choice and will not make purchase decision if they

don‟t trust in the quality of the product presented to them.

Comprehensive and thorough communication: Hitting the right

communication channel and effectively delivering the message to

potential buyers contributes to the success of a brand. Even for a good

product, if no one knows about it, talks about it or discuss about it, then

the chance of failure for that product is really high. Considering the case

of iPhone for example although there has been a lot of negative feedback

about the product recently, however, every time a new version of iPhone

is launched, the world holds it breath and eagerly waits to see the great

invention of Apple. This is achieving through mastery in communication.

Despite that, the product must be strong, reliable and good all by itself in

order for consumers to test out and trust what being said in the

communication channel.

With that being said, to be on top, PANASONICmust perform two

critical tasks: design a great product and build up a communication plan

47
for it. Design of the product would come straight from the need or

expectation of the market. Consumers no longer want to buy what

marketers sell to them; instead they want to buy things to solve their

need. Therefore PANASONICmust base on the need in the market to

come up with an idea or solution those consumers or customers would

buy. Next would be to build up a strategy, marketing strategy,

communication strategy, and so on. At the heart of all those activities is

the brand positioning.

48
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