TITLE

Customer Buying Behavior of Hitachi AC in Indian Market

SUMMER INTERNSHIP REPORT

Submitted toward partial fulfillment
Of
Post Graduate Diploma in Management
Academic Session
2022-24

Submitted by Submitted To
Inzamamul Haqe Prof. KP Kanchana
2022136

Batch 2022-24
Jaipuria School Of Business
Indirapuram, Ghaziabad, Delhi NCR

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 DECLARATION

This is to declare that I, Mr. Inzamamul Haqe Student of PGDM from Jaipuria School of
Business, Indirapuram, Ghaziabad have Completed Summer Training Programme for the
period of 9 weeks with JOHNSON CONTROLS-HITACHI AIR CONDITIONING from 10th
JUNE 2022 - 11th Aug 2022 under the supervision of Mr. Pranav (Sr. Manager HR), Pran Ranjan
Prasad (Team leader and Sales Manager) and Faculty mentor Prof.KP Kanchana.

This research report is my original work and it has not been submitted elsewhere for the award of
any degree/diploma

Student name: Inzamamul Haqe

Roll No :2022136
PGDM Batch: 2022-24

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 CERTIFICATE FROM THE INSTITUTE

This is Certify that Mr. Inzamamul Haqe, student of PGDM from Jaipuria School of Business, Indirapuram,
Ghaziabad has successfully completed Summer Training Programme for a period of 9 Weeks with Hitachi. Under
the supervision of Pranav sir, Pran Ranjan Prasad, and Faculty Mentor Prof. KP Kanchana.

The title of the study is "Customer Buying Behavior of Hitachi Ac in Indian market"

Inzamamul Haqe
Roll no: 2022136
Batch: 2022-24

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 CERTIFICATE FROM THE COMPANY

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 ACKNOWLEDGEMENT

The training program was designed to provide a full learning opportunity throughout the training
program. I would like to express my gratitude to all the people who guided me throughout the
program their direct or indirect help was priceless to me. Without their guidance and support, this
project would not have been completed successfully.

I am highly indebted to Mr. Pranav (Hr. Senior Manager), and Pran Ranjan Prasad (Team
leader & Sales Manager) for taking their valuable time to constantly guide and supervise me
and provide the right direction to complete the project.

I would express my sincere thanks to Prof. KP Kanchana (Jaipuria School of Business, Ghaziabad)
for his constant motivation in guiding me. I think this project would not have been accomplished
effectively if he had not regularly led me through the project. I also pay thanks to all the other faculty
members for helping me through my entire project.

I would like to express my special gratitude to all the industry experts for giving me their valuable
input, time, and attention, which added value to my project.

INZAMAMUL HAQE
ROLL NO - 2022136
PGDM BATCH - 2022-24

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 PREFACE

As a part of the partial fulfillment of the P.G.D.M program at Jaipuria School of Business,
the Ghaziabad Summer Internship training program was undertaken with Johnson Control
Hitachi Air Conditioning.

This project is specially designed to understand the subject matter of the various products
of the company. This project gives us information about consumer behavior and the family
decision-making process of ACS. Through this project, the focus was to know about how
consumer behavior at the time of purchasing of ac’s and based on that they can know what
the customer Actually want.

The main purpose of the training was to have practical experience working in organizations
and to have exposure to the various management practices in the field of sales.

The training has given me on-the-job experience in sales and promotion, and this project
is quite useful for those who want to know about the various practices in sales and
marketing.

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 EXECUTIVE SUMMARY

Johnson Controls–Hitachi Air Conditioning was established on October 1st, 2015 as a

joint venture between Hitachi Appliances, Inc. (now Hitachi Global Life Solutions, Inc.)
and Johnson Controls, Inc. Hitachi Appliances carved out and contributed its air
conditioning business to the Joint Venture. Johnson Controls acquired a 60% stake in the
carved-out business and Hitachi Global Life Solutions, Inc. continues as a 40% shareholder
of this venture. With this joint venture, two rich, 100-year-old cultures and histories have
come together to create one exciting new company, serving our combined customers with
the most diverse product portfolio in the air conditioning industry.

The main roles which I performed in this project are briefly enumerated as follows:

• Increasing Brand visibility.

• Interacting / Managing Customers on the shop floor
• Secondary sales (TGT. vs ach) dealer Coordination.
• Distributing POP material (Catalogues etc.) to customers.
• Maintaining Display stands with all POP materials.
• Collecting information about Competition Activities & Market information.
• Reporting to the senior Trade Marketing Manager.

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 TABLE OF CONTENTS
Page No

Title Page …………………………………………………………………………… 1

Declaration …………………………………………………………………….......... 2
Cirtificate from the Institute ……………………………………………………….... 3
Cirtificate from the Company ………………………………………………………... 4
Acknowledgement …………………………………………………………………... 5
Preface ………………………………………………………………………………. 6
Executive Summary …………………………………………………………………. 7
Chapter 1
Industry Overview …………………………………………………………………. 10-12
Chapter 2
Company Overview …………………………………………………………........... 13-29
Chapter 3
Product list of Hitachi Air conditioning ………………………………………........ 30-41
Chapter 4
Job Descriptions …………………………………………………………………… 42-48
Chapter 5
Customer buying Behaviour of Hitachi ac in Indian market ……………………… 49-53
Chapter 6
Learning Outcomes ……………………………………………………………....... 54-55
Chapter 7
Finding & Recommendation ……………………………………………………… 56-58
Chapter 8
Limitations & Conclusions ………………………………………………………. 59-60
Bibliography and References ……………………………………………………... 61-62

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 CHAPTER 1: INDUSTRY
OVERVIEW

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 INDUSTRY OVERVIEW

The first modern air conditioner was invented in 1902 by Willis Haviland Carrier, a skilled
engineer who began experimenting with the laws of humidity control to solve an
application problem at a printing plant in Brooklyn, NY.
Increased air pollution and rising level temperature and humidity conditions are influencing
the demand for air conditioner products across the globe, especially in urban areas.
According to the National Space Science and Technology Centre (NSSTC), November
2019 is recorded as the warmest than the average period for many regions globally and is
an alarming indicator that necessitates the use of air conditioning products to live a
comfortable life. Hence peoples prefer to use air conditioners than other more luxurious
products. Multiple functions of air conditioners such as air motion control, humidity and
temperature control, moisture control, an customized changing options as required, givers
to the importance of air condition toward consumers. According industry sources, global
demand for air conditioners increased to 110.97 million units as of 2018.

Rapid economic growth helps in increasing the disposable incomes of the population and
increasing housing demand for residential and commercial purposes, and industrial
purposes giving rise to the air conditioner market.

MAJOR PLAYERS
The global air conditioner market includes key players such as O General, Haier, Hitachi,
Blue star, LG, Daikin, Samsung, Mitsubishi, and Voltas.

The air conditioner market can be segmented by type, application, technology,

components, distribution channel, and geography. By type, the air conditioner market can
be segmented into room AC, ducted AC, ductless AC, centralized AC, and others. Room

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Ac segment is expected to hold the major share in the global air conditioner market.
Windows air conditioner is the most widely used air conditioner for single rooms and is
the leading segment of the air conditioner market. Increasing the requirements of
households to install a single refrigeration system increases the demand for room air
conditioners.

AIR CONDITIONING MARKET SEGMENT

SEGMENTATION

Attribute Details

By type ▪ Room Ac-Window, Split

▪ Ducted Ac- Ceiling Concealed, Rooftop Packaged
▪ Ductless Ac- Cassette, Floor Standing, Ceiling Suspended
▪ Centralized Ac- Condensing Unit, Chillers, and Others

By application ▪ Residential
▪ Commercial offices and retail
▪ Industrial

By technology ▪ Manual
▪ Automatic

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 By distribution ▪ Online retail
▪ Retail shop
channel
▪ Direct sales
▪ Distribution sales

North America

Europe
By geography
Asia pacific

South America

Africa and the middle east

INDIAN MARKET

India’s air conditioner market is expected to reach USD6,054.96 million by 2027F,

growing at a CAGR of 6.08% during the forecast period. Indiana’s air conditioner market
is mainly driven by increasing demand from the industrial sector, rising GDP, growing per
capita income, the surge in sales through e-commerce, etc.

Company Profiles

Voltas Limited, Daikin Airconditioning India Pvt. Ltd., LG Electronics India Pvt. Ltd.,
Blue Star Limited, Johnson Controls-Hitachi Air Conditioning India Limited, Panasonic
India Private Limited, Samsung India Electronics Private Limited, Haier Appliances India
Pvt. Ltd, Havells India Pvt. Ltd, Carrier Midea India Private Limited, and others are among
the major market players in the air conditioner industry that led the market growth of the
Indian air conditioner market.

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 CHAPTE 2: COMPANY
OVERVIEW

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 COMPANY OVERVIEW

1. History

Hitachi was founded in 1910 by electrical engineer Namihei Odaira (1874–1951)

in Ibaraki Prefecture. The company's first product was Japan's first 4-kilowatt
(5 hp) induction motor, initially developed for use in copper mining.

The company began as an in-house venture of Fusanosuke Kuhara's mining company

in Hitachi, Ibaraki. Odaira moved headquarters to Tokyo in 1918. Odaira coined the
company's toponymic name by superimposing two kanji characters: hi meaning "sun"
and tachi meaning "rise".

From 2006 to 2010, Hitachi lost US$12.5 billion, the largest corporate loss in Japanese
history. This prompted Hitachi to restructure and sell several divisions and businesses, a
process that is expected to end in 2021.

In March 2011, Hitachi agreed to sell its hard disk drive subsidiary, HGST, to Western
Digital for a combination of cash and shares worth US$4.3 billion. Due to concerns of a
duopoly of WD and Seagate Technology by the EU Commission and the Federal Trade
Commission, Hitachi's 3.5" HDD division was sold to Toshiba. The transaction was
completed in March 2012.

In January 2012, Hitachi announced it would stop producing televisions in Japan. In

September 2012, Hitachi announced that it had invented a long-term data solution out
of quartz glass that was capable of preserving information for millions of years

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In November 2020, it announced that Hitachi Metals and Hitachi Construction Machinery,
both being some of the last remaining listed subsidiaries, will likely be detached from the
group according to the restructuring plan. In December, Hitachi sold a 60% stake in its
overseas home appliance business to Turkish Arcelik for US$300 million.

2. Hitachi In India
Hitachi started its business in India in the 1930s. With over 25 business bases and over
10,000 employees in India presently, Hitachi Group in India is expanding through using
its expertise in 'the Social Innovative Business.

Hitachi India Pvt. Ltd. (HIL) markets and sells a wide range of products/services ranging
from Information & Telecommunications Systems, Digital Solutions & Services,
Infrastructure Systems, Industrial Systems like Water, Oil & Gas supply and management
to Transportation and Urban Development Systems. Together with further localization,
Hitachi aims to contribute to developing a sustainable society in India as well as
contributing to the country's economic growth.

In India, its headquarters in Mumbai and it has two more offices in Delhi and Bengaluru.

Name Designation

Ashok Balwani Independent Director

Gurmeet Singh Chairman & Managing Director

Indira Parikh Independent Director

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Mukesh Patel Independent Director

Parag Dave Co. Secretary & Compl. Officer

Rishi Mehta Chief Financial Officer

Shinichi Iizuka Director

Yoshikazu Ishihara Director

3. Company Profile
Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of Hitachi Appliance Inc.,
Japan, is a listed company on BSE & NSE exchanges. Since its inception, HHLI has
focused on developing and supplying high-quality products and technology that contribute
to the overall prosperity of society. HHLI manufactures various kinds of products,
including Room Air conditioners, Commercial Air-conditioners, and Chillers and, trading
VRF Systems, Rooftops, and Refrigerators.

Headquartered in Ahmadabad, Gujarat, the company's manufacturing facility at Kadi,

Gujarat, is among the ten Hitachi air conditioner facilities worldwide. With a total installed
capacity of 230,000 units (in a single shift) a year HHLI is amongst the top air-conditioning
companies in India. It has a strong nationwide distribution consisting of 5 regional offices,
21 branch offices, and over 200 exclusive sales and service dealers and over 1,500 sales

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points 33company-owned service Centers (HCS,) and 600 other service points including
multi brand S&S and franchisees. HHLI has a company-owned and operated 224x7
customer care Centre. At Hitachi, we believe in simplifying life, which is why, we
constantly innovate, bring in excellent technology, and newer concepts, and incorporate
advanced features in our products to make life comfortable.

The word "inspire" has as its etymology, the Latin preposition in and the Latin verb
“spirare”, meaning, "to breathe." As well as meaning "to breathe in," and "to encourage,"
it also has various meanings associated with the life itself, such as "to uplift the spirit" and
"to invigorate."

Nothing was put after the word "Next" to inspire our stakeholders and all those that read
our Corporate Statement to imaginatively fill in the blank that follows with a word like
"Era," "Society," "Idea," "Product," "System" or "Solution."
Having others share in the composition of our Statement is one of its primary aims.

4. List Of Top 10 AC Brand in India 2023

Company Price
O-General 2.0-ton 5-star inv. split 69000
Hitachi 1.5 ton 3-star inv. Split 37500
Voltas 1.5-ton 3-star inv. Split 35000

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 LG 1.5-ton 5-star inv. Split 46500
Daikin 0.8-ton 3-star fixed split 25000
Blue-star 1.2 ton 3-star inv. Split 30000
Haier 1.5-ton 5-star inv. Split 34500
Samsung 1.5 ton 3-star inv. Split 45500
Panasonic 1.5 ton 4-star inv. Split 42500
Lloyd 1.2 1.2-ton 5-star inv. Split 38000

5. Introduction Of Air Conditioner

Air conditioning is the conditioning of air within a defined space, usually a residence or a
place of business. Conditioning usually involves heating or cooling, humidifying, or
dehumidifying, and filtering or cleaning the air. In a central air conditioner, the system
cools and dehumidifies the defined space. Heating is accomplished by an add-on to the
system (such as an electric heat strip) or by a separate unit, such as a furnace.

There are four basic air conditioner types: window units, through-the-wall units, portable
units, and completely house/central air units. Window units come in models made for
double-hung windows, sliding windows, and casement windows. Through-the-wall and
central air units require professional installation. Portable units are not typically as
effective as window air conditioners and are best used only in situations where fitting into
a window is not an option.

Window air conditioners are very simple appliances. They operate on the same principles
as a refrigerator,

Cooling: All residential window air conditioners have a cooling system made up of four
primary components, a compressor, an evaporator, a metering device, and a condenser. Air
conditioner cooling systems are better understood if you think of them as devices that
remove warmth from the air rather than cooling the air.

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Blower fan: When the unit is running, the circulating fan and compressor are running
simultaneously. The fan motor has two fan blades attached to it on either end. The fan blade
on the inside part of the unit continually draws room air over the cold evaporator coils. The
fan blade on the outside part of the unit continually draws fresh outside air over the
condenser warm condenser coils evaporator coils are cold, they cause moisture in the room
to collect on them, much like a cup of ice water on a warm, humid day. When the amount
of number increases, it begins to drip down off the coils into the bottom pan of the air
conditioner.

Thermostat Control: The thermostat on a window air conditioner works by sensing the
air temperature entering the air conditioner. As the air, entering the unit reaches the set
temperature it will cause the compressor to turn off. The blower may continue to run
depending on the selection chosen on the control panel. Digital thermostats work on a
similar principle but display a more precise temperature.

Selector switches: The air conditioner selector switches allow the user to choose the fan
speed. The compressor always runs at the same speed regardless of the settings. If low cool
is, choose, for example, the fan runs at a slower speed but the compressor still offers the
same cooling capacity

Central air conditioners: are split systems: an outdoor unit (the condenser unit) and an
indoor unit (the air handler). The function of an air conditioner is to transport heat from
one station to another. The vehicle your system uses to carry his isle called all figurant,
commonly referred to as Freon. The compressor in outdoor unit changes the refrigerant (or
"Freon") into a high-temperature, high-pressure gas. As that gas flows through the outdoor
coil, it loses heat and condenses into a high-temperature, high-pressure liquid. This liquid
refrigerant travels through copper tubing into the evaporator coil. There the refrigerant
expands. Its sudden expansion turns the refrigerant into a low-temperature, low-pressure
gas. This gas then absorbs heat from the air circulating in the ductwork. The cooled air is
then distributed back through your house or place of business. Meanwhile, the heat
absorbed by the refrigerant is carried back outside through copper tubing and released into
the outside air.

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Consumers’ profile: Air conditioners

The room air conditioners can be divided into two categories

1. Window air conditioners

2. Split air conditioners

Consumers for room air conditioners can be divided as

A. Household consumers: If any segment of the consumer durables industry has seen
rapid growth in India in the last decade, it is the room air conditioners industry. With
growing incomes and higher standards of living, the demand for air conditioners has been
rising n household segment. The consumer profiles wardly mobile urban population living
in metropolitans and cities. The household market accounts for 60 % of the window A.C.
market and 40% of the split A.C. market.

B. Industry Consumers: The

government sector has been a major
buyer of air conditioners in past but
demand for from the household
sector is also increasing. A
sustained GDP growth, increased
government spending and industrial
activity, cheap consumer credit, etc.
are driving the demand for AC products in the industrial sector.

6. Analysis Of Air Conditioner Industry

AC industry is operating in an environment, which has changed a lot during the last few
years. Industry operates in a dynamic and complex environment. Complex, because there
are numerous factors affecting the business-like government budgetary policies-
friendlessness of operation and product part, changing lifestyles of consumers,

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demographics, etc. On the other hand, it is dynamic because due to rapid changes in the
technological front and aspects related to the environment is changing.
Political Environment:

➢ Liberalization of the economy in the nineties saw the several number of foreign
players
➢ A fair amount of political stability.
➢ Consensus on target of higher growth of the economy.

➢ Political consensus on economic reforms.

Economic Environment:

➢ Abatement from the retail price for levy of excise duty on air conditioners lowered
from 12.5% to 14.5% under T, and the tax rate on air conditioners is 28%
➢ An increase in excise-only raw materials like steel from 12% to 16% will adversely
affect air conditioner manufacturers.
➢ With the lowering of duties on newer product categories, air conditioners are
positioned as retail products. Earlier with a retail price of nearly 40,000, it stood no
chance against say a CTV costing Rs15, 000.
➢ The industry has been seasonal in nature with four months (March to June)
generally accounting for 60-65% of total annual sales.

Social Environment:

➢ Rising disposable income and reduced prices are slowly making ACs a necessary
utility as opposed to being viewed as a luxury item.
➢ Increased spending on lifestyle-related products and the increasing SOHO segment
are increasing the demand for it.
➢ Increasing concern for the environment and health consciousness will make people
buy more eco-friendly products.

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Technological Environment:

Product technology: The key component of air conditioners, compressors (30% of the cost)
is of two types i.e., reciprocating and rotary. Rotary compress accounting for 66% of the
total market Split ACs are major users of rotary compressors now dominate the Indian Ac
market.
The rotary compressor has the advantage of being energy efficient, less noisy and abuse-
proof India has two manufacturers, Tecumseh India and Kirloskar Copeland for
reciprocating compressors.

Rotary compressors are presently imported from China, Malaysia, Japan, and Thailand.
Window ACs range from 0.6T to2 TT. They are ideal for small spaces like individual
rooms in an office or residence. Split Air Conditioners have good aesthetic features and are
indispensable in rooms without windows.

Process technology: The industry intrinsically is highly capital intensive and has a massive
appetite for capital cost as well as working capital while a normal 0.1-0.15 Million
assembly plant costs 500 million (without compressor line), working capital cycle is 90
days. With high operating costs (around 800-1000), technology especially power savings
is a key advantage and market differentiator.

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7. Growth Opportunities
India’s air conditioner market is expected to reach USD6,054.96 million by 2027F,
growing at a CAGR of 6.08% during the forecast period. The Indian air conditioner market
is mainly driven by increasing demand from the industrial sector, rising GDP, growing per
capita income, the surge in sales through e-commerce, etc. Due to the strengthening of the
increasing household sector, the rising construction of new housing societies, and the
establishment of SMEs, residential air conditioners dominate the AC market share across
all segments. Furthermore, an increase in the number of construction projects across metro
and tier-2 cities will drive up demand for air conditioners in the coming years.

In terms of market segmentation by residential type, split ACs held the largest share of the
room air conditioner market in terms of revenue and volume share in 2021, owing to
changing consumer preferences toward adopting energy-efficient products and their rising
adoption in residential and SME segments.

The market's expected growth can be attributed to the strong growth from the residential
sector, which is the primary end-user of air conditioners. Due to improved livelihoods
among Indian consumers, air conditioners are highly demanded in the residential industry.
In addition, the rising commercial sector, another major end-user of air conditioners, has
seen strong growth in the last decade.

During the COVID-19 pandemic, the production and manufacturing of air conditioners
were affected. As a result of the lockdown, both demand and supply in the air-conditioners
market declined significantly with the halt in production activity, negatively impacting
market growth for a short period.
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Smaller Cities Drive the Market Growth

Increasing demand from small cities, particularly those with a population of fewer than one
million people, contributes to a significant share of air conditioner sales in India. Air
conditioners are in high demand in Patna, Lucknow, Kanpur, Indore, Mangalore, and
Visakhapatnam.

Daikin and Voltas, two central air conditioning companies, have begun to invest in these
cities. Furthermore, LG and Voltas may see increased sales of air conditioners in tier II and
III cities in the coming years.

Rising Standards of Livelihoods are Fueling the Market Growth

With the growing income level, India's improving living standards and increasing variety
of offers and discounts influence the demand for air conditioners within the Indian market.
To cater to the national need, companies such as Daikin, Panasonic, Hitachi, Voltas, Blue
Star, Havells, and Syska are among the companies that have applied to manufacture key
air conditioner components.

Furthermore, companies are also offering their products on equated monthly installments
(EMI) to make them more affordable for customers of all income levels. Such factors are
expected to influence the increase in air conditioner sales in India.

Increasing Innovations in Air Conditioner Market Growth

Furthermore, due to the highly competitive market environment, manufacturers are

working to provide features such as seamless Wi-Fi connectivity and inverter-based air
conditioners, which are expected to drive growth in the Indian air conditioners market in
the coming years.

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8. Swot Analysis of Hitachi Brand

Strengths in The SWOT Analysis Of Hitachi

Strengths are defined as what each

business does best in its gamut of
operations which can give it an upper
hand over its competitors. The following
are the strengths of Hitachi:

Core Values: Hitachi is deeply committed to a strong value system that is incorporated
into all their activities right and that everyone right from their leaders to employees are
expected to follow. These core values include sincerity, fairness, commitment to ethe
environment and society, respect for human rights and transparency, and ethics of conduct.

Presence in diverse areas: Hitachi Group has a strong presence in various areas of
operations in such a way that each of their business complements and supplements the
others. Their major focal areas include IT, power, industrial and social infrastructure,
electronics, healthcare, consumer durables, defense systems, finance, and automotive
systems.

Commitment to environment and society: Hitachi has always displayed high levels of
commitment to both environment and society. It is amongst the 113 brands to be part of
the CDP’s Climate A-list and has always made compliant products. They also have a lot
of social welfare programs catering to underprivileged groups in South East Asia in areas
like education, health, and women empowerment.

Strong relationships with stakeholders: Hitachi have always been focused on

maintaining strong and sustainable relationships stakeholders. The company tries to
maintain a balance between their stakeholders and create maximum value for each of them.

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Global network: The Hitachi Group has been focused on building a global network of
partners and distributors. They have a pan-global presence through offices in various parts
of the Americthe as, the Middle East, Asia, Ocean the ia, the UK, and Europe.

Weaknesses in The Swot Analysis of Hitachi

❖ Large size of The Industry

❖ Lack of the impetus of the Revolution
❖ Lack of the skilled Employees

Weaknesses are used to refer to areas where the business or the brand needs improvement.
Some of the key weaknesses of Hitachi are:

Over-dependence on external suppliers: Hitachi gets all their raw materials from
various suppliers who are spread across various parts of the globe. Coordinating amongst
various suppliers and managing the fluctuations in the currency rates is challenging for the
business.

Long-term contracts: In areas like construction and power the company enters into
long-term contracts with vendors and customers. It becomes immensely challenging for
the company to factor in the changes from environmental fluctuations.

An imbalance between supply and demand: In the consumer durables segment,

there is a huge mismatch between supply and demand. The demand is currently more than
supply and there is an oversupply of products this can in the long run adversely affect your
business.

Excessive overseas growth: The company has been involved in large-scale

expansion to all parts of the globe and it is getting increasingly difficult to contain the
increased scope of operations and scaling up is becoming challenging.

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Opportunities in The SWOT Analysis of Hitachi

Opportunities refer to those avenues in the environment that surrounds the business on
which it can capitalize to increase its returns. Some of the opportunities include:

➢ Innovation
➢ Online market
➢ Emerging Market
➢ Benefits in Further maintaining costs To Provide better Margin

Increased scope in information technology: The IT market is expected to reach

300 billion USD by 2020 with a cumulative growth rate of 9.9 percent per annum. India
promises to be a lucrative market for IT and ITES in the next decade with a predicted
growth rate of 7.2 percent.

Growth in infrastructure needs: In emerging economies, there is an increased

scope for social infrastructure and many of these projects are funded by the government.
Companies like Hitachi should be focusing on building ties with governments of emerging
economies.

Threats in The SWOT Analysis of Hitachi

Threats are those factors in the environment that can be detrimental to the growth of the
business. Some of the threats include:

Competition: The main competitors of Voltas are LG, Samsung, Whirlpool, IFB,
Carrier, Panasonic etc.,
Economic trends: There have been consistent issues in economies across the world.
Economies like Europe, Japan and US are facing economic turbulence and this is likely to
affect the company which has its main operations here.

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 Johnson controls-Hitachi Air Conditioning

The Johnson Controls-Hitachi Air Conditioning India Company (formerly known as

Hitachi Home and Life Solutions (India) Limited) was incorporated on December 07, 19,84
as 'Acquest Air Conditioning Systems Private Limited'. It was converted into a deemed
public limited company in June 1989. The company is engaged in the business of
manufacturing, selling, and trading Hitachi's brand of air conditioners, refrigerators,
chillers, and VRF (variable refrigerant flow) systems. A manufacturing facility for air
conditioners has been set up at Kadi (North Gujarat). It provides a diversified range of
customized and innovative air conditioning products. The company possesses a wide
distribution network with 5 regional offices and 23 branch offices covering more than
10,000 sales points and more than 1500 service points.

It currently manufactures room air-conditioners consisting of window split and multi-split

air-conditioners under technical collaboration with Hitachi Japan and markets them.

Headquarters- Japan
No of Employees- 3,68,247
Milestones

1984– The company was incorporated as Acquest Air conditioning Systems.

1991– The company launched its first side throw Air Conditioner (AC).
1992– The company launched the first Hi Wall Mounted Split AC.
1996– The company introduced the first ceiling-mounted split AC.
1997– It launched its first home AC brand – Nidra.
1999– The company launched the 'Hitachi' brand of air-conditioners in India.
2001– Hitachi conducted first-ever mass marketing of ACs with remote microprocessor-
controlled intelligence – Logicool.
2003– The company changed its name to Hitachi Home and Life Solutions India.
2004– It introduced small split ACs in the world by using Lambda technology and named
this Hitachi Atom.

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It introduced the most powerful and silent window AC using Twin Turbo Technology and
named it Quadricool.
2005– Hitachi launched Quadri cool –– a window AC that used twin motor technology.
For a cleaner and healthier environment, Hitachi launched UV Fresh technology in Atom.
The company launched Atom + One technology in split ACs that would cool two rooms
with one unit.
The company also launched Atom XL – A small cooling solution for large areas.
It introduced Hitachi refrigerators in India.
The company launched fully automatic washing machines in India.

2010
Launched I–TEC, India's First Inverter air-conditioner which is made in India & designed
for 520 C with Hitachi's patented PAM technology
Launched a Fully loaded Kaze range of air conditioners for the mass premium segment.
Started manufacturing of water-cooled chiller of 40 HP – 120 HP capacities in India.
Introduced Company Owned and Company Operated Service Centers – Hitachi Customer
Satisfaction (HCS).

2011
Launched–Clean, India's First air conditioner with an Automatic filter.
cleaning technology by which it cleans its filter automatically
Launched Summer, India’s First 5-star rated Window air conditioner.

2012
Introduced India's First star rated Cassette air conditioner.
Introduced 5-star rated summer TM window air conditioner with twin motor technology.
Introduced Inverter technology in refrigerators.

2013
Launched–Clean Inverter AC and–Clean Hot & Cold Inverter AC.
Launched India's First French Door Bottom Freezer Refrigerator.

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 CHAPTER 3: PRODUCT
LIST OF HITACHI AIR-
CONDITIONING.

30 | P a g e
 Product List of Hitachi Air-Conditioning
Split Ac’s

1. Kiyora

Capacity- 1.0 TR, 1.5TR, 1.8TR, 2.0TR.

Star Rating – 4 stars and 5 stars

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Ambiance light: Know your ambiance

This is the first brand that

launched the ambiance light,
which helps to know your
ambiance of your indoors.
Know your ambience be it
cool (16 ̊C to 23 ̊C),
comfortable (24 ̊C to 27 ̊C),
or warm (28 ̊C to 32 ̊C) -
with Hitachi's first-ever
Ambience light.

Air-Cloud Home: Wi-Fi-enabled AC

An inbuilt Wi-Fi in your ac
lets you remotely monitor
and control your AC with a
single app through a
smartphone, digital device,
or voice assistant. Now,
you can communicate with
your ac with a voice
command from Google
Home, Amazon Echo, or a smartphone assistant.

Available in Kiyora models:

Kiyora 5200WX
Kiyora 4200WX

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 Air Technology
iFresh: Frost Wash Technology
The dust which is collected on the indoor coil affects the air conditioner’s performance in
the long run. At times, water drip forms a bad odor Hitachi iFresh, with frost wash
technology help to make a frost in the indoor coil, the dust gets attached into and on based
on at it automatically melts
itself and with this the dust
came out.

Available in Kiyora
models:
Kiyora 5200FX
Kiyora 4200FX

iClean+: Auto Filter Cleaning Technology

Auto clean dry
technology cleans the
filter automatically for
you and comes with
stainless steel filters
that does not let the dust
settle on it easily. The
aauto-cleanbrush cleans
sweeps the dust away.

Available in Kiyora
models:
Kiyora 5400X
Kiyora 4400X

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Kiyora 5300X
Kiyora 4300X

Odor-free air: Auto Coil Dry Technology

In auto coil dry

technology, the indoor
fan keeps running for
some time on standby
mode whenever the ac is
turned off by remote.
This dries up the
evaporator coil and
prevents dust, keeping
the unit dry and clean.

Silent air: Wave Blade Design Technology

Hitachi uses wave blade

design technology to reduce
the noise and also provide a
blower size of 115 mm which
is 10% extra from every
blade.

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Surround Air: Wide Angle Movement
Feel the Surround air
experience delivered by
our Big Flow Deflector's far-
reaching and uniform cooling
in every part of the room.
While conventional AC units
fail to cool the area directly
beneath the AC unit, Big Flow
Deflector's vertical air
deflection ensures that not only
the farthest corner of the room but also the area directly beneath the AC unit gets equal air
volume. Thus, minimizing the hot pockets in the room and cooling every corner of the
room.

Expandable Inverter Air Conditioner

Hitachi's 5 Star machine comes with unique expandable technology that expands its
cooling capacity in adverse temperature conditions, it cuts down humidity levels inside the
room, and achieves set temperature faster. This is an automatic smart technology where it
senses the inside and outside ambient temperature continuously with help of Penta sensors
and increases or decreases its cooling capacity according to the requirement every time.

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iSee: Intelligent Image Sensor Technology

To provide directed cooling and

comfort, intelligent image sensor
technology counts the number of
individuals in the room and locates
where they are located. The sensor
automatically turns off the AC
when a person is not present,
minimizing energy waste.

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iSense: Activity Sensor Technology

I Sense with its Activity Sensor helps

you to get a sound sleep after a long
day. The infrared Sensor regulates the
room temperature according to a
person's active body movements. In
case there are no active movements,
the AC increases the room
temperature by 1°C per hour for 2
hours.

2. Shizen

Features:
• Ambience light (Shizen 3200ws, 3100s)
• Air cloud home (Shizen 3200ws)
• Air technology

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 1. I Fresh (Shizen 3200Fs)
2. I Clean (Shizen 3300s)
3. Odour-freeree air (Shizen 3300s, 3200ws, 3100s)
4. Silent air (Shizen 3300s, 3200ws, 3100s)
5. Surround air (Shizen 3300s, 3200ws, 3100s)
6. I Sense (Shizen 3300s)

Other features:
100% Cooling Capacity at 43°C
Penta Sensor
Super Slit Fins
100% Inner Groover Copper Tube
Tropical Design
Stabilizer Free Operation

3. Logicool

Features:
• Expandable (Logicool 5100x, 4100x)
• Odour-free air (Logicool 5100x, 3100s)

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 • Silent air (Logicool 5100x, 4100x, 3100s)
• Surround air
(Logicool 5100x,
4100x, 3100s)
• Penta sensor
(Logicool 5100x,
4100x, 3100s)
• Stepless compressor
control (Logicool
5100x, 4100x, 3100s)
• 100% Inner Grooved
Copper (Logicool 5100x, 4100x, 3100s).

Window Ac’s
1. Summer Key Features:
• Split In a Box with Twin Motor Technology

• Twin Air Flow for Uniform

Cooling

• Best Class Cooling Capacity

(1.5 TR)

Other Features:
• Auto Climate Technology

• On/Off Timer (With Advanced

Start-Up)

• Digi lock

• Auto Filter Clean Indicator

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• Super Cool Function

• 100% Copper

• Tropical Compressor

• 43 Quality Tests

2. New Kaze Plus

Key Features:
• On / Off Timer with Advanced Start-Up

• Power Index

• Dry Mode

• Powerful Mode

• Auto Restart

Other Features:
• 100% Inner Grooved Copper Tube

• Tropical Design

• Superfine Mesh Filter

• Auto Power Save Mode

• LCD Remote with Backlight

• Auto Fan Speed

In this model there are 3 types of Ac’s:

1) 1 ton
2) 1.5 ton
3) 2 ton

There is not any difference in the features only the difference is of tons.

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 3. Shizuka

Key Features:
• Filter Clean Indicator

• Stabilizer Free Operation

• Penta sensor technology

• Stepless compressor Control

• Expandable Inverter Air Conditioners

Other Features:
• 100% Inner Grooved Copper Tube

• Tropical Design

• Superfine Mesh Filter

• Auto Power Save Mode

• LCD Remote with Backlight

• Auto Fan Speed

So, there are 3 types of models available in window AC’s, different models with
different specifications and different pricing in window ac the installation charge is 550
Rupees and provides 1-year service along with 5 years of compressor warranty.

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 CHAPTER 4: JOB
DESCRIPTIONS

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 JOB DESCRIPTION

Job Requirement of Sales Person

In home appliances, sales person performs face-to-face sales and customer service at a
retail store. She/he is responsible to provide each new and returning customer with all
information needed to make an educated purchasing decision. An air conditioner sales
professional usually reports to the store manager of that store. As a technical promoter, the
person should have a sound knowledge about the technologies that has been use in the air
conditioner. Therefore, as a student promoter who has a zeal for latest technologies in air
conditioner and refrigerator segment, we are supposed to have a clear-cut knowledge about
the technologies that has been use by the Hitachi's differentiators.

Job Duties and Tasks

1) Demonstrate and explain products, methods, or services in order to persuade

customers to purchase products or utilize services.
2) Increase the brand visibility of the product.
3) Managing customers at floors.
4) Identify interested and qualified customers in order to provide them with additional
information.
5) Practice demonstrations to ensure that they will run smoothly.
6) Prepare and alter presentation contents to target specific audiences.
7) To be capable in Story-Telling and to identify key differences of
competitor's claim.
8) Provide product samples, coupons, informational brochures, and other incentives
to persuade people to buy products.
9) Record and report demonstration-related information such as the number of
questions asked by the audience.
10) Sell products being promote, and keep records of sales.

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 11) Set up and arrange displays and demonstration areas to attract the attention of
prospective customers.
12) Work as part of a team of demonstrators to accommodate large crowds.
13) Suggest specific product purchases to meet customers' needs.
14) Instruct customers in alteration of products.
15) Learn about competitors' products and consumers' interests and concerns in order
to answer questions and provide more complete information.
16) Recommend product or service improvements to employers.
17) Fully be aware of Target and track weekly achievement Vs. Target in both Unit and
Amount.
18) Work with customers to present them the benefits and competitive advantage of
products.

Job Activities

1) Performing for or Working Directly with the Public -- Performing for people or
dealing directly with the public. This includes the Retail Sailing Solutions:
➢ Build Relationship
➢ Connect
➢ Explore
➢ Create Experience
➢ Close
2) Selling or Influencing Others Convincing others to buy merchandise/goods or to
otherwise change their minds or actions.
3) Communicate with Persons outside Organization -- Communicating with people
outside the organization, representing the organization to customers, the public, and
other external sources. This information can be exchange in person, in writing, or
by telephone or email.
4) Establishing and Maintaining Interpersonal Relationships -- Developing
constructive and cooperative working relationships with others, and maintaining
them over time.

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 5) Interpreting the Meaning of Information for Others Translating or explaining what
information means and how it can be uses.
6) Organizing, Planning, and Prioritizing Work Developing specific goals and plans
to prioritize, organize, and accomplish your work.
7) Handling and Moving Objects - Using hands and arms in handling, installing,
positioning, and moving materials, and manipulating things.

Job Skills

1) Speaking -- Talking to others to convey information effectively.

2) Persuasion - Persuading others to changes their minds or behavior.
3) Active Listening -- Giving full attention to what other people are saying, taking
time to understand the points being made, asking questions as appropriate, and not
interrupting at inappropriate times.
4) Social Perceptiveness - Being aware of others' reaction and understand why they
react as they do.
5) Instructive -- Teaching others how to do something.
6) Critical Thinking - - Using logic and reasoning to identify the strengths and
weaknesses of alternative solutions, conclusions or approaches to problems.
7) Active Learning -- Understanding the implications of new information for both
current and future problem-solving and decision-making.
8) Learning Strategies -- Selecting and using training and instructional method and
procedure appropriate for the situation when learning or teaching new things.
9) Complex Problem Solving-- Identifying complex problems and review relates
information to develop and evaluate options and implement solutions.
10) Service Orientation -- Actively looking for ways to helps customers.

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Job Abilities

❖ Speech Clarity - The ability to speak clear, so others can understand you.
❖ Oral Expression -- The ability to communicate information and ideas in speaking
so others will understand.
❖ Oral Comprehension -- The ability to listen to and understand information and
ideas presented through spoken words and sentences.

Job Knowledge, Experience, Education

1) Sales and Marketing -- Knowledge of principles and methods for showing,

promoting, and selling products or services. This includes marketing strategy and
tactics, product demonstration, sales techniques, and sales control systems
2) English Language -- Knowledge of the structure and content of the English
language including the meaning and spelling of words, rules of composition, and
grammar. Knowledge of the National language "Hind"& other regional languages
can also be helpful for promotion and selling of the product.
3) Education and Training -- Knowledge of principles and methods for curriculum and
training design, teaching and instruction for individuals and groups, and the
measurement of training effects.
4) Communication and Media-- Knowledge of media production, communication, and
Dissemination techniques and methods. This includes alternative ways to inform
and entertain via written, oral, and visual media.

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 JOB DESCRIPTION AT HITACHI

Pre-SIP Induction: Before going to the job, the student promoters were given training
for 1 days regarding the specifications of each and all air conditioners and refrigerators of
Hitachi. The trainer was an experienced trainer from Hitachi India Pvt. Ltd. who also made
us to perform role-plays to have a better understanding of the roles & responsibilities of a
promoter in a retail outlet.

Weekly report: After joining to the Hitachi, I assigned at a store Vijay Sales in Dilshad
Garden, East Delhi. So, I must share my weekly progress report to my mentor each week
which is mentioned below:

Week 1: On the job in very first week, my head promoter helped me to understand more
about the Hitachi products. He also taught me to how to give a demo to a customer. So,
from the first day of learning, I started interacting with and product briefing the customers.
I connected approx. 20 customers from which I was able to know about the customers’
requirements and their concerns.

Week 2: On my second week of internship, I can able to connect to the customer and I
can able to explain about the product to the customer. And, I give all information about the
Ac to the customer and when the customer convinces the I handover to my senior sells man
to close the deal.

Week 3: In the 3rdweek, I changed the showroom as my sales manager ordered me. I
was shift from “Elektrokraft Bistupur,” to “Elektrokraft Sakhchi” and in this week I sale
out 3 Ac. It was again a new learning for me. My responsibilities in Elektrokraft were more

47 | P a g e
than previous ones. Here, I took care of installation, customers complain and stocks. I sold
few products of the brand I am representative of. I was able to elaborate about the product
to the customers and close the deal.

Week 4: In 4thweek again sales was not good. However, in that week I sold few products
of the brand I am representative of. I was able to elaborate about the product to the
customers and close the deal.

Week 5: I helped the customers with their queries about the product issues and after sales
support. I dealt with more customers as the weekend approached, the footfall is higher than
the weekdays and sold 7 Ac in fifth week.

Week 6: I have sold few products of the Hitachi brand. I helped the customers related to
the after-sales. Found some gaps in my learning related to end-to-end sales deal. Started
working on those gaps.

Week 7: The sales again gradually started moving down due to climate change. I checked
the inventory of the products and ensured the products to be available.

Week 8: I checked the inventory of the products and ensured the products to be available.
I have updated the weekly sales record in the Hitachi portal. I sold some Ac in this week.

Week 9: As this was the last week of my summer internship program, I started preparing
my report based on my experienced and potential learning from the entire 9 weeks.

48 | P a g e
 CHAPTER 5:
CUSTOMER BUYING
BEHAVIOR of HITACHI
AC IN INDIAN MARKET

49 | P a g e
CUSTOMER BUYING BEHAVIOR OF HITACHI AC IN
INDIAN MARKET
Perception towards buying AC in Indian Market
 Penetration of ACs in India is still low. Only about 13% of Indian households have
an AC, and this number is expected to increase to 69% by 2040. This is due to
several factors, including the high cost of ACs, the perception that ACs are a luxury
item, and the lack of awareness of the benefits of ACs.
 Indian consumers are increasingly viewing ACs as a necessity rather than a
luxury. This is due to the rising temperatures in India, the increasing awareness of
the health benefits of ACs, and the growing popularity of online shopping, which
makes it easier for consumers to compare prices and find affordable ACs.
 Indian consumers are looking for energy-efficient ACs. They are aware of the high
running cost of ACs and are willing to pay more for an energy-efficient AC that
will save them money in the long run.
 Indian consumers are also looking for smart ACs. These are ACs that can be
controlled remotely using a smartphone or tablet. This is a growing trend, as
consumers want the convenience of being able to control their ACs from anywhere.

Here are some other factors that are shaping the perception of ACs in the Indian market:
 The increasing urbanization of India is leading to more people living in smaller
spaces, which makes ACs more appealing.
 The rising disposable income of Indians is making them more willing to spend
money on comfort items like ACs.
 The government is also promoting the use of ACs to improve energy efficiency and
reduce greenhouse gas emissions.

Overall, the perception of ACs in the Indian market is positive and is expected to continue
to grow in the coming years. As the demand for ACs increases, manufacturers are likely to
introduce more innovative and energy-efficient models to meet the needs of Indian
consumers.

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Background and Introduction

Hitachi India's air conditioning division is rapidly expanding in the Indian market and must
keep a keen eye on customer buying behaviour to maintain a competitive edge. The better
insights Hitachi has on customer behaviour, the better it can position its products. A solid
understanding of customer behaviour will provide essential insights to shape the sales and
marketing strategy of Hitachi in India.

Market Analysis of Hitachi AC

Features vs Price: Hitachi ACs are known for their features, for instance, inverter
compressors, energy efficiency, and good build quality. The pricing is a bit higher. But
with customer loyalty, Hitachi still stands a chance to capture the premium segment buyers.

Technology Trends: The airs conditioning industry is moving towards greener

appliances and using less refrigerant. Hitachi should focus on greener technology products
to protect the environment. One of the key trends in the AC market is the shift towards
inverter compressors. Inverter compressors are more energy-efficient than traditional
compressors, which can save consumers money on their electricity bills. Hitachi ACs are
all equipped with inverter compressors.

Another trend is the increasing demand for smart ACs. Smart ACs can be controlled
remotely using a smartphone app, which gives consumers more control over their comfort.
Hitachi offers several smart AC models in India.

Competition: Hitachi faces competition from several other brands in the Indian AC
market, including Voltas, Daikin, and LG. These brands offer a wide range of ACs at a
lower price and with the same features. Hitachi has to offer some unique features to
differentiate themselves in the market.

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Analysis of Customer Buying Behaviour of Hitachi AC in Indian market

Brand Recall: Hitachi being a well-known brand has an advantage in the market. Many
Indian buyers are willing to pay more for a brand like Hitachi that has long-lasting quality
and service.

Hitachi has a strong brand recall in India. The company is known for its quality products
and its long history in the country. According to a recent survey, Hitachi is the second most
recalled AC brand in India, after Voltas.

Advertising: Since Indian consumers are very value conscious, Hitachi AC must be
marketed in a way that its benefits and features are communicated aptly. Focusing on the
product features such as durability, efficient cooling, and affordability can help drive the
consumer's purchase decision.

Hitachi's advertising in India has been less effective than that of some of its competitors.
The company's ads are often seen as being too generic and not very engaging. Hitachi needs
to develop more creative and effective advertising campaigns that resonate with Indian
consumers.

Social Media: Making use of platforms such as Instagram and Facebook helps improve
visibility and reach of Hitachi AC among the younger audience. This can also help improve
brand image and recall. Hitachi's advertising in India has been less effective than that of
some of its competitors. The company's ads are often seen as being too generic and not
very engaging. Hitachi needs to develop more creative and effective advertising campaigns
that resonate with Indian consumers.

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Key findings of Customer Buying Behaviour in the Indian market

Customers seek Energy Efficiency: Indian customers are more likely to choose
energy-efficient appliances over other features. Indian consumers are becoming
increasingly aware of the importance of energy efficiency. This is due to rising electricity
costs and concerns about climate change. As a result, customers are more likely to consider
energy efficiency when purchasing an AC.

Brand Recalls: Brand perception is a major factor in customer buying behaviour in the
Indian market. Hitachi is perceived as a reliable and trustworthy brand among Indian
consumers. Brand recall is still important to Indian consumers, even in the digital age.
Consumers are more likely to purchase products from brands that they are familiar with
and trust.

Market Analysis: Conducting a market analysis to understand the customer needs,

preference, and competition helps in shaping the product and marketing strategy of Hitachi
ACs better. The Indian AC market is growing rapidly, due to increasing urbanization and
rising incomes. The market is also becoming more competitive, with several new brands
entering the market.

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 CHAPTER 6: Learning
Outcomes

54 | P a g e
 LEAERNING OUTCOMS

❖ On-the-job training helped me to know about the air conditioners industry and in
particular Hitachi Company. Hitachi is one of the top brands in India. This industry
truly inspired me to work upon this project.
❖ On-the-job training helped me to improve upon my inter-personal skills and has
really boosted up my confidence level to speak to the unknown customers and even
to a higher authority people from the society.
❖ How to handle stock and customer’s calls is also the major learning from the
project.
❖ How to handle more than four or five customers at a time and to answer their query
at the same time taught me a lot regarding how to handle customers efficiently.
❖ Details of the product: This training gives me enough understanding regarding the
specifications of each and every product, which helped me a lot in comparing
Hitachi with other brand whenever asked by any of the customer.
❖ During my summer internship, it gives me many chances to learn various thinks
regarding consumer behaviour in retail outlets while selling an AC or Refrigerators.
❖ Summer internship gave me the opportunity to relate all my theoretical learning to
the practical aspects which was indeed great and fruitful.

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 CHAPTER 7:
RECOMMENDATION
& FINDING

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 RECOMMENDATIONS & FINDING

FINDINGS

After interacting with customers, it can be analyzed that though Hitachi has improved in
certain areas, like top of the mind recall, distribution network and brand awareness still a
lot of work needs to be done.

❖ The major findings that emerged from the analysis were that Hitachi ranked second
in brand preference in case of air conditioners but ranks lower in after sales service,
ordering and sales team visit.
❖ Most of the customers who prefer Hitachi, they are mostly are premium customers.
❖ Customers prefer Hitachi as a brand because Hitachi gives some adding features
compare to its competitors.
❖ In Home appliances, industry service is the most important thing, because most of
the customers look for after sales services.
❖ Retailers as well as customer were also not satisfied with the sales force visit of
Hitachi.
❖ After Sales Service of Hitachi is rate as poor by most of the customers.
❖ Indian consumers are becoming increasingly aware of the importance of energy
efficiency when purchasing an AC.
❖ The Indian AC market is growing rapidly, but it is also becoming more competitive.
❖ Brand recall is still important to Indian consumers, even in the digital age.

57 | P a g e
RECOMMENDATIONS

❖ Supply side can be improved by keeping a proper capacity cushion especially in

March to June since 60-65% of sales occur in this period. Company needs to make
sure that there is no dearth of supply, which will also help organization to shred its
laid-back image.
❖ Attractive displays should be place at the retail outlets to create a distinction with
other brands. This will help Hitachi build strong brand equity at store level.
❖ The number of retail counters should be increase substantially to increase Hitachi’s
penetration.
❖ Company can organize a retailer meet regularly, which will increase their
interaction with company officials.
❖ The frequency of sales team, which visits to the outlets, should be increase
substantially so that things can be sort out on the spot.
❖ Proper margins and incentives should be giving, so that intermediaries can facilitate
long term relations.
❖ Make Service/ franchisee networks stronger.
❖ Company should launch some lower price range product, which can be affordable
by all.
❖ Hitachi should run more effective advertising campaigns and engage with
consumers on social media to maintain its strong brand recall.
❖ Hitachi should focus on developing strong relationships with its channel partners
to reach more consumers and increase its market share.
❖ Hitachi should identify its target market and develop products and marketing
campaigns that appeal to these consumers.
❖ Hitachi should highlight the energy efficiency of its ACs in its marketing
campaigns and offer discounts and promotions on its energy-efficient models.

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 CHAPTER 8:
LIMITATIONS &
CONCLUSIONS

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 LIMITATIONS &CONCLUSIONS

LIMITATIONS
❖ Duration of two months was not enough for an in-depth study of issues.
❖ Biases might have crept up on the part of the customers while giving answers.
❖ Absolute sanctity of data can be a cause of concern as many retailers did not ponder
much over giving points, ranks etc.
❖ The sample size for customers was small due to time constraint.
❖ The analysis, findings and results are limited to Delhi market only that might not
have reflected true picture of entire Indian market.

CONCLUSION
Based on above findings you can conclude that Hitachi has improved itself in brand
awareness among retailers and customers but it is yet to surpass Voltas in that respect.
Also, sales team visits, ordering and after sales are areas of concern that can cause great
loss to the company in future. Hitachi also need to redesign its marketing strategies and
improve its pricing strategy for dealers in order to make a success in India. If Hitachi
improves the services & incentive scheme for dealers, then there are good chances of a
grand success, as the Indian air conditioner market is growing very fast. Finally, we can
conclude that the success (or Sales) of Hitachi AC is dependent on after sales service &
incentives provided to dealers as they are the ones who push your brand. Indian customers
will not buy it just because it is their brand; but they expect value for money and
satisfaction.

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 BIBLIOGRAPHY
AND REFERENCES

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 BIBLIOGRAPHY AND REFERENCES

Reports:
Report on the Indian Air Conditioner Market, 2023, Market Research Future, 2023.
Customer Buying Behaviour of Hitachi AC in Indian Market, IIM Ahmedabad,
2022.

A Study on the Brand Recall of Hitachi AC in India, IMT Ghaziabad, 2021.

Newspapers:
Economic Times
The financial express

Websites:
https://www.wikipedia.org/
https://www.afaqs.com/
https://www.indiabudget.gov.in/budget2012-2013/budget.asp
https://www.equitymaster.com/
https://www.hitachi.com/
https://www.jci-hitachi.com/
https://www.screener.in/

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