Amit Report

INTRODUCTION
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INTRODUCTION
The consumer durables market is divided into two segments – consumer electronics, also
known as the brown goods (television, digital camera, audio-video systems, computers,
electronic accessories, etc) and consumer appliances or the white goods (air conditioners,
refrigerators, microwave ovens, other household appliances, etc.).
In its initial years, the sector relied greatly on media and advertising for consumer
penetration. Liberalisation of markets in late 1990s saw the entry of global players like
Samsung and Videocon and a shift in focus towards product innovation. Accessibility to
high-end products was, however, low till mid 2000s. Last few years has seen high end and
aspirational products like air conditioners and High Definition TVs gain stronghold in the
market.
The industry size for consumer durables stands at Rs 350 billion (as on March 2012). The
sector rides and relies on the state of the country’s economy. With household incomes in top
20 cities across India expected to grow at 10 percent annually over the next eight years, and
concepts of easy loans, equated monthly instalment (EMI) charges, availability of credit, etc.,
become commonplace, the Indian consumer is likely to spend more on both utility and luxury
consumer goods.
The consumer durables sector is marked by stiff competition between market players to
launch newer models and versions of products, discounts and schemes. The key players in the
consumer durables sector are MNCs like LG, Samsung, Blue Star, Daikin, Hitachi, Sony, etc.
LG and Samsung account for the largest shares of the market, and it is estimated that India’s
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share in their global revenues will double to 12 per cent in FY15 from 6 per cent in FY10 and
similarly from 2.5 per cent to 5 per cent respectively.
Market trends for the future
Estimates provided by Corporate Catalyst India (CCI) indicate that the consumer durables
market is expected to double at 14.8 per cent CAGR to USD12.5 billion in FY15 from
USD6.3 billion in FY10. Further, demand from rural and semi-urban areas is expected to
expand at a CAGR of 25 per cent to USD6.4 billion in FY15 from USD2.1 billion in FY10.
All major companies in this sector have elaborate expansion plans for the near future. Japan’s
Panasonic plans to invest USD208 million by 2014 by setting up manufacturing units and an
advanced R&D centre. Samsung plans to invest USD94 million to expand capacity by 2012.
Market leader LG has outlined around USD292 million for enhancing production capacity
and strengthening its LG brand shop network by 2012.
Factors that will drive growth in this sector
 Increased disposable incomes and greater accessibility to credit is growing the
consumer base, especially in the middle and upper sections of the population.
 Relaxation of tariffs and increased liberalisation amid a favourable FDI environment
is leading to expansion in India, increased investments and greater R&D. Key players
like Whirpool, Hitachi, and Panasonic announced huge investment plans in the year
2011.
Summary
The sector is characterised by strong growth trends in all domains – from rise in affordability
factor of Indian population, increased penetration and exponential growth of rural markets,
policy support in terms of FDI, to large scale investment plans by corporate. The consumer
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durables sector is set for an upward graph with numerous opportunities for those involved in
it.
Key Industry Dynamics
Industry Size: Rs. 350bn
Key Categories: White Goods, Brown goods and Consumer electronics.
Competitive landscape: Dominated by Korean majors like LG and Samsung in most of the
segments
Margin Profile: Low margin, dependant on volumes
Growth opportunities: Lower penetration coupled with increasing disposable income
The Indian Consumer Durables segment can be segmented into three groups:
White goods Brown goods Consumer electronics
· Air conditioners · Microwave Ovens · TVs
· Refrigerators · Cooking Range · Audio and video systems
· Washing Machines · Chimneys · Electronic accessories
· Sewing Machines · Mixers · PCs
· Watches and clocks · Grinders · Mobile phones
· Cleaning equipment · Electronic fans · Digital cameras
· Other domestic appliances · Irons · DVDs
· Camcoders
2. Market Size
Consumer Durables Market Size (2010) Mn units (2011E) Growth (%)
Flat Panel TV 2.8 4.5 61
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Refrigerator 9.0 12.0 33
Washing Machines 5.0 6.0 20
Air Conditioners 3.4 4.4 29
Microwave 1.0 1.5 44
Source: CEAMA, MOSPI, GEPL Capital Research
Market Analysis
The current projection shows that household income of the population in top 20 cities of
India is expected to grow by 10 per cent in the coming years. This is likely to increase the
demand for consumer products as well.
The middle income group section (household with disposable income between 200, 000 to 1,
000,000) which currently constitutes 5 per cent of the population is expected to become 41
per cent by 2025. Rural poverty is expected to decline to 26 per cent by 2025. All these
factors are expected to contribute towards improving the market scenario for consumer
durables.
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MAJOR COMPANIES OF CONSUMER DURABLE MARKET
Samsung India
Samsung India commenced its operations in India in December 1995, today enjoys a sales
turnover of over US$ 1 billion in just a decade of operations in the country. Samsung design
centres are located in London, Los Angeles, San Francisco, Tokyo, Shanghai and Romen.
Samsung India has its headquartered in New Delhi and has a network of 19 Branch Offices
located all over the country. The Samsung manufacturing complex housing manufacturing
facilities for Colour Televisions, Colour Monitors, Refrigerators and Washing Machines is
located at Noida, near Delhi. Samsung ‘Made in India’ products like Colour Televisions,
Colour Monitors and Refrigerators are being exported to Middle East, CIS and SAARC
countries from its Noida manufacturing complex. Samsung India currently employs over
1600 employees, with around 18% of its employees working in Research & Development.
Whirlpool India
Whirlpool was established in 1911 as first commercial manufacturer of motorized washers to
the current market position of being world's number one manufacturer and marketer of major
home appliances. The parent company is headquartered at Benton Harbor, Michigan, USA
with a global presence in over 170 countries and manufacturing operation in 13 countries
with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden
and Ignis. Today, Whirlpool is the most recognized brand in home appliances in India and
holds a market share of over 25 per cent. The company owns three state-of-the-art
manufacturing facilities at Faridabad, Pondicherry and Pune.
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LG India
LG Electronics was established on October 1, 1958 (As a private Company) and in 1959,
LGE started manufacturing radios, operating 77 subsidiaries around the world with over
72,000 employees worldwide it is one of the major giants in the consumer durable domain
worldwide. The company has as many as 27 R & D centers and 5 design centers. Its global
leading products include residential air conditioners, DVD players, CDMA handsets, home
theatre systems and optical storage systems.
Godrej India
Godrej India was established in 1897, the Company was incorporated with limited liability
on March 3, 1932, under the Indian Companies Act, 1913. The Company is one of the largest
privately-held diversified industrial corporations in India. The Company has a network of 38
Company-owned Retail Stores, more than 2,200 Wholesale Dealers, and more than 18,000
Retail Outlets. The Company has Representative Offices in Sharjah (UAE), Nairobi (Kenya),
Colombo (Sri Lanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC).
Sony India
Sony Corporation, Japan, established its India operations in November 1994. In India, Sony
has its distribution network comprising of over 7000 channel partners, 215 Sony World and
Sony Exclusive outlets and 21 direct branch locations. The company also has presence across
the country with 21 company owned and 172 authorized service centres.
Hitachi India
Hitachi India Ltd (HIL) was established in June 1998 and engaged in marketing and sells a
wide range of products ranging from Power and Industrial Systems, Industrial Components &
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Equipment, Air Conditioning & Refrigeration Equipment to International Procurement of
software, materials and components. Some of HIL’s product range includes Semiconductors
and Display Components. It also supports the sale of Plasma TVs, LCD TVs, LCD
Projectors, Smart Boards and DVD Camcorders.
Videocon
Videocon has always been a price player and has an image of a low price brand. This
entails providing more features at a given price vis-à-vis competitors. It has taken
over multinational brands to cater to unserved segments, like Sansui- to flank the
flagship brand Videocon in the low to mid priced segment, essentially to fight against
brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like
Aiwa. Videocon is one of the largest manufacturers of television and its components in
India and thus has advantages of economies of scale and low cost due to
indigenisation. It has the widest distribution network in India with more than 5000
dealers in the major cities. It also has a strong base in the semi-urban and rural
markets. Due to its multi-brand strategy, it has at present multiple brands at the same
price point. This has led to a state of diffused positioning for its brands. It has also led
to a cannibalisation of sales among these brands. The flagship brand Videocon has
lost market share due to the presence of Sansui in the same segment. Because of
reduction in import duties on CPT the cost advantage of Videocon is also on the
decline. Hence it is facing rough weather and also trying to boost exports.
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 analysed to determine the extent of rivalry between the
existing Players.
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OBJECTIVES
OF THE
STUDY
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OBJECTIVES OF THE STUDY
 To study the marketing strategies of Samsung.
 To study the market share of Samsung in electronic market.
 To study the consumer perception for the products of Samsung.
 To study the factor responsible for buying electronic products.
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SCOPE OF THE
STUDY
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SCOPE OF THE STUDY
In today’s globally competitive environment where survival of fittest theory is being
proved true. It has become mandatory to fulfill the needs of the human society because
electronic consumer durables are one of the prime needs of the society. Now a day the life
style of the society is going to the change, and the needs are increasing. Electronic companies
are the important resource to be fulfilling the needs.
To provide the electronic consumer goods, different companies are present in the
market. They are adopting different schemes, services, and promotional scheme. In this field,
in my research, I have selected one major company – Samsung.
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LITERATURE
REVIEW
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LITERATURE REVIEW
Adam Braff, Passmore and Simpson (2003) The consumer durables market is divided into
two segments – consumer electronics, also known as the brown goods (television, digital
camera, audio-video systems, computers, electronic accessories, etc) and consumer
appliances or the white goods (air conditioners, refrigerators, microwave ovens, other
household appliances, etc.). In its initial years, the sector relied greatly on media and
advertising for consumer penetration. Liberalisation of markets in late 1990s saw the entry of
global players like Samsung and Videocon and a shift in focus towards product innovation.
Accessibility to high-end products was, however, low till mid 2000s. Last few years has seen
high end and aspirational products like air conditioners and High Definition TVs gain
stronghold in the market. The industry size for consumer durables stands at Rs 350 billion
(as on March 2012). The sector rides and relies on the state of the country’s economy. With
household incomes in top 20 cities across India expected to grow at 10 percent annually over
the next eight years, and concepts of easy loans, equated monthly instalment (EMI) charges,
availability of credit, etc., become commonplace, the Indian consumer is likely to spend more
on both utility and luxury consumer goods. The consumer durables sector is marked by stiff
competition between market players to launch newer models and versions of products,
discounts and schemes. The key players in the consumer durables sector are MNCs like LG,
Samsung, Blue Star, Daikin, Hitachi, Sony, etc. Videocon and Samsung account for the
largest shares of the market, and it is estimated that India’s share in their global revenues will
double to 12 per cent in FY15 from 6 per cent in FY10 and similarly from 2.5 per cent to 5
per cent respectively. Till the 1980s, players like Godrej, Kelvinator, Allwyn and Voltas
controlled almost 90% of the market. Earlier, the white goods sector was categorized as a
luxury goods industry and was subject to oppressive taxation and licensing. The situation
changed after the liberalization of the Indian economy in the early 1990s. The government
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removed all restrictions, and now there is no restriction on foreign investment, and licenses
are no longer required. Post-liberalization, a number of foreign companies entered the market
and many domestic players also diversified into refrigerators. BPL and Videocon who
already had a presence in the consumer electronics market, leveraged their strengths to enter
the durables sector. In India, refrigerators have the highest aspirational value of all consumer
durables, with the exception of televisions. This accounts for the high growth rate of the
refrigerator market. Refrigerators are presently being manufactured in two basic designs
which are referred to as Direct Cool (DC) and Frost Free (FF) refrigerator. The direct cool
segment continues to dominate Indian refrigerator market compared to more expensive frost-
free models. The growth in this segment though marginal, has been driven by factors like
availability of low priced models as due to competitive pricing and a growing middle class.
Manufacturers of refrigerators claim to have improved the quality of the product particularly
the reliability of the Compressor. In so far as new technology is concerned, the concept of
Frost Free refrigerator has been gaining popularity. Capacity-wise also, there is a shift in
Refrigerator Market. Till about two years back, 165 Liters had a larger share and now units
of capacity 185-300 Liters are having increasing market share. Manufacturers are encouraged
to adopt environment friendly technology like usage of non-CFC (non- Chloro-Fluro-
Carbons) refrigerant based air conditioners, Non-CFC refrigerators are manufactured in the
country but because of their high initial cost, the demand is somewhat sluggish.
Dutt and Sundram (2004) The penetration of household refrigerators in India, the fifth
largest consumer durable in terms of penetration, is 13% compared to well over 90% in
Malaysia, Australia, Singapore, Hong Kong and Korea; around 80% in Thailand; close to
40% in Philippines and China and 20% in Vietnam and Indonesia. When you compare the
annual commercial sales of HVAC and refrigeration equipment in the US at US $ 200 per
capita and in China at US $ 3 per capita with a dismal US $ 0.25 per capita in India.
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Refrigerators constitute the second largest product segment within the Indian consumer
durables sector in India, with an estimated annual turnover of Rs 39 bn during FY2005 with
an estimated sale of 4.1m units. According to FICCI Survey April-March 2003-2004
Whirlpool and Godrej are the top two players with market shares of 27 per cent and 20 per
cent respectively. Electrolux Kelvinator and Samsung compete for third and fourth position
with market shares of 16 per cent and 14.5 per cent respectively. Videocon (11 per cent),
Samsung (6), BPL (4), Voltas and Akai are other significant players.
A study by Jeanette Carless on and Salvador Arias (2004) The trend of beating industry
norms started with the fastest ever-nationwide launch by SAMSUNG in a period of 4 and 1/2
months with the commencement of operations in May 1997. SAMSUNG set up a state-of-the
art manufacturing facility at Greater Noida, near Delhi, in 1998, with an investment of Rs 500
Crores. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners
and Microwave Ovens. During the year 2001, SAMSUNG also commenced the home
production for its eco-friendly Refrigerators and established its assembly line for its PC
Monitors at its Greater Noida manufacturing unit. The beginning of 2003 saw the roll out of
the first locally manufactured Direct Cool Refrigerator from the plant at Greater Noida. In
2004, LGEIL also up its second Greenfield manufacturing unit in Pune, Maharashtra that
commences operations in October this year. Covering over 50 acres, the facility manufactures
Color Televisions, Air Conditioners, Refrigerators, Washing Machines Microwave Ovens
Color Monitors and GSM phones. The Greater Noida manufacturing unit line has been
designed with the latest technologies at par with international standards at Korea and is one
of the most Eco-friendly units amongst all SAMSUNG manufacturing plants in the world.
SAMSUNG has been able to craft out in eight years, a premium brand positioning in the
Indian market and is today the most preferred brand in the segment. Various studies have
shown that the consumer is well informed on the health awareness front. SAMSUNG was
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one of the first companies who recognized the emerging change in consumer needs and
decided to differentiate their products on the basis of technology which appealed to the
consumer on the basis of health benefits.
T.V. Ramachandran (2005) Its vision was to become a 'Health Partner' for its consumers
worldwide and therefore formulated its corporate philosophy to make peoples' lives better,
convenient and healthier. The CTV range offered by SAMSUNG has 'Golden Eye'
technology, which senses the light levels in the room and adjusts the picture to make it more
comfortable for the eyes. The entire range of SAMSUNG air-conditioners have 'Health Air
System', which not just cools, but keeps pollution out. Similarly, microwave ovens have the
'Health Wave System', refrigerators have the 'PN System', which preserve the nutrition in
food and washing machines have 'Fabricare System', which takes the health factor down to
ones clothes. All the products offered by the company have unique technologies, developed
by its R&D departments that give consumers a healthier environment to live-in. The year
2001 witnessed SAMSUNG becoming the fastest growing company in the consumer
electronics, home appliances and computer peripherals industry. The company had till the
month of October 2001 achieved a cumulative turnover of Rs 5000 Crores in India since its
inception in 1997, making it the fastest ever Rs 5000 Crores clocked by any company in the
Indian consumer electronics and home appliances industry. Having achieved this milestone,
SAMSUNG achieved another benchmark with the first ever sales of One lakh ACs (Windows
and Splits) in a calendar year.In Colour Televisions having set the sales target of one million
units of Color Televisions for 2002, SAMSUNG has already achieved the one million mark
in the month ahead of its target. In 2003, SAMSUNG has emerged as the leader in Colour
Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators
and Microwaves Ovens. In the year 2004, LGEIL achieved unprecedented sales efficiency
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both in Direct Cool and Frost Free segment and sold more than 1 million units of refrigerators
outperforming industry expectations.
Rajan Bharti Mittal (2005) SAMSUNG Electronics India is the fastest growing company in
the consumer electronics, home appliances and computer peripherals industry today.
SAMSUNG Electronics is continually providing superior technology products & value for
money to more than 50 lakh households in India. The company has achieved a turnover of Rs
6500 crore in 2004 and aims to touch a turnover of 10 Billion US Dollars by 2010 and
commands an enviable position in the GSM mobile phone market. It has already started
manufacturing of GSM phones in its plant at Pune. SAMSUNG India has also been taking on
a slew of initiatives as a part of Corporate Social Responsibility. SAMSUNGEIL is proud to
have adopted about 24 villages around our Greater Noida facility. SAMSUNG extends Free
Medical Care, which comprises of free check ups and a free distribution of medicines on a
daily basis. LGEIL is also generating self-employment opportunities for the people in the
form of tailoring, knitting etc. in addition to all this, SAMSUNG also sends veterinary
doctors regularly to these villages. Besides all this, SAMSUNG India is one of the very few
companies in the country that has an internal Energy, Environment, Safety and Health
Department. This function caters to activities like Energy Conservation, Environmental
Issues, Work Place Fire and Safety as well as Occupational Health for the benefit of the
employees.
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ASEAN India Synergy Sectors (2005) Samsung India aims to be the ‘Best Company’ in
India by the Year 2006. ‘Best Company’ in terms of both the internal workplace environment
as well as the external context in which the Company operates. Samsung aims to grow in
India by contributing to the Indian economy and making the lives of its consumers simpler,
easier and richer through its superior quality products. Samsung considers 'After Sales
Service' as a key differentiator for Samsung products. In order to deliver prompt and easily
accessible service, Samsung India has set up a widespread network of company owned as
well as Authorized Service Centers to service its consumers. The Samsung Service Plazas, as
the Company owned Service Centers are called, are a first in the industry. To satisfy the
needs of its Home Appliance consumers, Samsung has set up state-of-the-art Home
Appliance Service Centers in 19 cities that are equipped with latest testing and measuring
equipments for servicing only Home Appliance products. Speed, Smile, Sure’ is the motto for
Samsung Service, as the Company seeks to satisfy more and more of its consumers with
prompt and accurate service. The company adheres to a turnaround time of 24 hours within
the city where the Samsung Service Centre is located. A Service Helpline number 30308282
gives access to Samsung Service throughout the country. Samsung India organizes a Free
Service Camp on an All India basis, every year, for proactively reaching out to consumers
and servicing their Samsung products.
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COMPANY
PROFILE
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COMPANY PROFILE
COMPANY PROFILE
Samsung Group
Type Public (KRX: 005930, KRX: 005935)
Founded 1938
Founder(s) Lee Byung-chul
Seocho Samsung Town in Seoul,
Headquarters
South Korea
Lee Kun-hee: Former Chairman and
CEO
Key people
Lee Soo-bin: Acting president, CEO
of Samsung Life Insurance[1]
Industry Conglomerate
Revenue ▲ $174.2 billion
Net income ▲ $13.9 billion
Total assets ▲ $302.9 billion
Employees 263,000
Samsung Electronics,
Samsung Heavy Industries,
Subsidiaries
Samsung Engineering &
Construction, etc.
Website www.samsung.com
The Samsung Group is the world's largest conglomerate. It is South Korea's largest chaebol
and composed of numerous international businesses, all united under the Samsung brand,
including Samsung Electronics, the world's largest electronics company,Samsung Heavy
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Industries, one of the world's largest shipbuilders and Samsung Engineering & Construction,
a major global construction company. These three multinationals form the core of Samsung
Group and reflect its name - the meaning of the Korean word Samsung is "tristar" or "three
stars".
The Samsung brand is the best known South Korean brand in the world and in 2005,
Samsung overtook Japanese rival Sony as the world's leading consumer electronics brand and
became part of the top twenty global brands overall. It is also the leader in many domestic
industries, such as the financial, chemical, retail and entertainment industries.
Lee Byung-Chull founded Samsung in 1938. It started as a small trading company with forty
employees, located in Seoul. The company did fairly well until the Communist invasion in
1950 which caused great damage to his inventories. He was forced to leave and start over in
Suwon in 1951. In just a year, the company’s assets had grown twentyfold. In 1953, Lee
created a sugar refinery—the South Korea’s first manufacturing facility after the Korean
War. “The company prospered under Lee’s philosophy of making Samsung the leader in each
industry he entered” (Samsung Electronics). The company started moving into service
businesses such as insurance, securities, and department store. In the early 1970s, Lee
borrowed money from foreign companies to begin the mass communication industry by
launching a radio and television station (Samsung Electronics).
South Korean President Park Chung-hee’s regime during the 1960s and 1970s, helped
Samsung Electronics and many other Korean firms. Park put great importance in increasing
economic growth and development, and assisted large, profitable companies, protecting them
from competition and aiding financially as well. His government banned several exterior
companies selling consumer electronics in South Korea. “To make up for a lack of
technological expertise in South Korea, the South Korean government effectively required
foreign telecommunications equipment manufacturers to hand over advanced semiconductor
technology in return for access to the Korean market” (Samsung Electronics). This
enormously helped Samsung to manufacture the first Korean dynamic random access
memory chips.
Samsung Group later formed several electronics-related divisions, such as Samsung Electron
Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung
Semiconductor & Telecommunications Co., and grouped them together under Samsung
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Electronics Co., Ltd. in 1980s. Its first product was a black-and-white television set
(Samsung Electronics).
In the late 1980s and early 1990s, Samsung Electronics invested heavily in research and
development, constructing the company as a leader in the global electronics industry. “By the
1980s Samsung was manufacturing, shipping, and selling a wide range of appliances and
electronic products throughout the world” (Samsung Electronics). In 1982, it built a
television assembly plant in Portugal; in 1984, it built a $25 million plant in New York; and
in 1987, it built another $25 million facility in England (Samsung Electronics).
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Research in a common parlance refers to a search for knowledge. One can also define
research as a scientific and systematic search for pertinent information on a specific topic.
Research is an art of scientific investigation. Research is an academic activity and as such the
term should be used in a technical sense. the term research refers to systematic method
consist of enunciating the problem ,formulating a hypothesis, collecting the data, analysis the
facts and reaching certain conclusion either in a form of solution towards the concerned
problem or in certain generalization for some theoretical formulation. The system of
collecting data for research projects is known as research methodology. Research
Methodology represents the design of the research work.
Data sources : Primary and Secondary.
Data approaches : Questionnaire.
Sample size : 50
Sample procedure : Convenience sampling.
Area of survey : Moradabad
Data analysis method : Pie chart
Sampling design:
I. Sample Unit:
Sample unit of Project report are Customers of electronics products
II. Sample size:
The sample size of the report is 50 in numbers.
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Data collection method:
Primary data:
The primary data are those which are collected afresh and for the first time, and thus
happened to be original in character. There are several methods of collecting primary data
particularly in surveys.
For the study: Questionnaire method is used for collecting the data while conducting the
research.
Secondary data:
The secondary data are those which have already been collected by someone and which have
already been passed through the statistical process. Secondary data may either be published
data or un- published data.
For the study: Internet is used for collecting the data while conducting the research.
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ANALYSIS OF DATA
AND FINDINGS
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ANALYSIS OF DATA AND FINDINGS
Q1. Do you use electronic products?
No. of Respondents
a) Yes 50
b) No 0
INTERPRATATION
This chart shows that out of 50 respondents, all respondents said they use electronic products.
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Q2. Which company product do you use?
No. of Respondents
a) Samsung 25
b) Videocon 5
c) LG 8
d) Godrej 5
e) Other 7
INTERPRATATION
This chart shows that out 50 respondents, 50% use Samsung, 10% use Videocon, 16% use
LG, 10% use Godrej, 14% use other company products
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Q3. If Samsung which product do you use?
No. of Respondents
a) Air Conditioner 10
b) TV / LCD / LED 12
c) Mobiles 16
d) Kitchen Appliances 12
e) Other 0
INTERPRATATION
This chart shows that out 50 respondents, 20% respondents said Air Conditioner, 24%
respondents said TV / LCD / LED, 32% respondents said Mobiles, 24% respondents said
Kitchen Appliances of Samsung they use.
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Q4. How do you know about Samsung products i.e. Samsung Advertising.
No. of Respondents
a) T.V. 10
b) Newspaper 12
c) Magazine 8
d) Online 7
e) Outdoor 8
f) Leaflets 5
INTERPRATATION
This chart shows that out 50 respondents, 20% respondents said TV, 24% said Newspaper,
16% said Magazine, 14% Online, 16% outdoor, 10% Leaflets.
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Q5. Rate your satisfaction level towards range of products of Samsung?
Agree Neutral Disagree
Air Conditioner 10 34 6
TV / LCD / LED 8 26 16
Mobiles 14 28 8
Kitchen Appliances 10 30 10
INTERPRATATION
This chart shows that out 50 respondents, 20% respondents said agree for Air Conditioner,
68% respondents said neutral for Air Conditioner, 12% respondents said disagree for Air
Conditioner, and 16% respondents said agree for TV / LCD / LED, 52% respondents said
neutral for TV / LCD / LED, 32% respondents said disagree for TV / LCD / LED and 28%
respondents said agree for Mobiles, 56% respondents said neutral for Mobiles, 16%
respondents said disagree for Mobiles and 20% respondents said agree for Kitchen
Appliances, 60% respondents said neutral fro Kitchen Appliances, 20% respondents said
disagree for Kitchen Appliances for range of products.
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Q6. Rate your satisfaction level towards availability of Samsung products?
TV / LCD / LED 8 32 10
Mobiles 12 24 14
INTERPRATATION
Appliances, 60% respondents said neutral for Kitchen Appliances, 20% respondents said
disagree for Kitchen Appliances with availability.
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Q7. Rate your satisfaction level towards Durability of Samsung products?
TV / LCD / LED 4 30 16
Mobiles 8 32 10
INTERPRATATION
68% respondents said neutral for Air Conditioner and 20% respondents said disagree for Air
Conditioner, 8% respondents said agree for TV / LCD / LED, 60% respondents said neutral
for TV / LCD / LED, 32% respondents said disagree for TV / LCD / LED and 16%
disagree for Kitchen Appliances with durability
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Q8. Rate your satisfaction level towards after sale services/customer support of
Samsung products?
TV / LCD / LED 20 30 10
Mobiles 12 32 6
INTERPRATATION
disagree for Kitchen Appliances with sale service and customer support
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Q9. Rate your satisfaction level towards prices of Samsung products?
TV / LCD / LED 8 26 16
Mobiles 14 28 8
INTERPRATATION
disagree for Kitchen Appliances with prices.
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Q10. Rate your satisfaction level towards schemes and offers provided by Samsung on
its products on various occasions?
TV / LCD / LED 8 32 10
Mobiles 12 24 14
INTERPRATATION
disagree for Kitchen Appliances with schemes and offers
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Q11. Rate your overall satisfaction level towards products of Samsung?
TV / LCD / LED 4 30 16
Mobiles 8 32 10
INTERPRATATION
disagree for Kitchen Appliances with overall satisfaction.
39 | P a g e
FINDINGS
 All respondents said they use electronic products.
 50% use Samsung, 10% use Videocon, 16% use LG, 10% use Godrej, 14% use
other company products
 20% respondents said Air Conditioner, 24% respondents said TV / LCD / LED,
32% respondents said Mobiles, 24% respondents said Kitchen Appliances of
Samsung they use.
 20% respondents said TV, 24% said Newspaper, 16% said Magazine, 14%
Online, 16% outdoor, 10% Leaflets.
 20% respondents said agree for Air Conditioner, 68% respondents said neutral
for Air Conditioner, 12% respondents said disagree for Air Conditioner, and
16% respondents said agree for TV / LCD / LED, 52% respondents said neutral
for TV / LCD / LED, 32% respondents said disagree for TV / LCD / LED and
28% respondents said agree for Mobiles, 56% respondents said neutral for
Mobiles, 16% respondents said disagree for Mobiles and 20% respondents said
agree for Kitchen Appliances, 60% respondents said neutral fro Kitchen
Appliances, 20% respondents said disagree for Kitchen Appliances for range of
products.
40 | P a g e
agree for Kitchen Appliances, 60% respondents said neutral for Kitchen
Appliances, 20% respondents said disagree for Kitchen Appliances with
availability.
for Air Conditioner and 20% respondents said disagree for Air Conditioner, 8%
respondents said agree for TV / LCD / LED, 60% respondents said neutral for
TV / LCD / LED, 32% respondents said disagree for TV / LCD / LED and 16%
respondents said agree for Mobiles, 64% respondents said neutral for Mobiles,
20% respondents said disagree for Mobiles and 20% respondents said agree for
Kitchen Appliances, 56% respondents said neutral fro Kitchen Appliances, 24%
respondents said disagree for Kitchen Appliances with durability
for Air Conditioner and 48% respondents said disagree for Air Conditioner,
Appliances, 16% respondents said disagree for Kitchen Appliances with sale
service and customer support
41 | P a g e
Appliances, 20% respondents said disagree for Kitchen Appliances with prices.
Appliances, 20% respondents said disagree for Kitchen Appliances with
schemes and offers
for Air Conditioner and 20% respondents said disagree for Air Conditioner, 8%
respondents said agree for TV / LCD / LED, 60% respondents said neutral for
TV / LCD / LED, 32% respondents said disagree for TV / LCD / LED and 16%
respondents said agree for Mobiles, 64% respondents said neutral for Mobiles,
20% respondents said disagree for Mobiles and 20% respondents said agree for
Kitchen Appliances, 56% respondents said neutral fro Kitchen Appliances, 24%
respondents said disagree for Kitchen Appliances with overall satisfaction.
42 | P a g e
CONCLUSION
43 | P a g e
CONCLUSION
The market for consumer durables has expanded over the years. The household income of
Indian houses has experienced significant improvement in the past decades and as a result the
demand for durables has also risen.
The market has recently experienced around 30 per cent growth rate in demand for
electronics and home appliances. Categories like Flat panel TVs, Microwave ovens, Air
Conditioners and Refrigerators are likely to post strong growth. Urban growth is likely to be
driven by new technology/innovative products, lifestyle products and replacement demand
such as LED TVs, Laptops, Split ACs, etc. Rural markets are likely to outpace growth in the
urban markets led by increasing penetration across categories such as Refrigerators and
Washing machines.
In this project report I tried to find out the customer satisfaction towards Samsung. I tried to
find the position of the Samsung and view of the customer. If we see the market share of the
company then Samsung has the largest market share. Mostly customer prefers Samsung
because it has variety of products and it offers a wide range than Videocon.
Its product quality is also very good and most of the customers are satisfied with its quality
and price. In short we can conclude that Samsung has very good market share and customers
are satisfied with the products of Samsung
44 | P a g e
SUGGESTIONS &
RECOMMENDATIONS
45 | P a g e
SUGGESTIONS & RECOMMENDATIONS
 More advertisement should be done by Samsung through hoardings, commercial add
on T.V. to increase awareness among its customers.
 Samsung should identify the threats and challenges prevailing in the market and
according to that they should form strategy to be more unique.
 Most of the dealers do not have full range of products so Samsung should arrange all
the products to all its dealers
46 | P a g e
LIMITATIONS
47 | P a g e
LIMITATIONS
Although the study was carried out with extreme enthusiasm and careful planning there are
several limitations, which handicapped the research viz,
1. Time Constraints: The time stipulated for the project to be completed is less and thus
there are chances that some information might have been left out, however due care is taken
to include all the relevant information needed.
2. Sample size: Due to time constraints the sample size was relatively small and would
definitely have been more representative if I had collected information from more
respondents.
3. Accuracy: It is difficult to know if all the respondents gave accurate information; some
respondents tend to give misleading information.
4. Availability: It was difficult to find respondents as they were busy in their schedule, and
collection of data was very difficult
48 | P a g e
BIBLIOGRAPHY
49 | P a g e
BIBLIOGRAPHY
Books:
 Kothari C.R., Research Methodology- Methods and techniques, new age international
publishers, 2007, 2nd edition, pp. 26, 95, 111.
 Malhotra, Naresh K., Marketing Research, An Applied Orientation, Fourth Edition,
Pearson Prentice Hall, 2005, Part II, pp. 71-340.
Websites:
 www.samsungindia.com
50 | P a g e
ANNEXURE
51 | P a g e
QUESTIONNAIRE
Dear respondent,
I am the student of IFTM university conducting a Project report on “Mareting

strategies of Samsung electronics home appliances. Kindly spare few minutes to fill up this
questionnaire. Any information provided by you will be used for academic purpose only.
RESPONDENT PROFILE
 Name of the respondent :................................................................................................

 Residential/ office address :............................................................................................
........................................................................................................................................
........................................................................................................................................
 Contact no. :..................................................................................................................
 Age group of the respondent : 18-25 ( ) 25-35 ( ) 35-45 ( ) 45 or More( )
 Education/ qualification: .............................................................................................
 Occupation :.................................................................................................................
 Designation :................................................................................................................
Q1. Do you use electronic products?

a. Yes
b. No
Q2. Which company product do you use?

a. Samsung
b. Videocon
c. LG
d. Others
Q3. If Samsung which product do you use?

a. Air conditioner
b. TV/LCD/LED
c. Kitchen Appliances
d. Mobile
e. Others
Q4. How do you know about Samsung products i.e. Samsung Advertising.
a) T.V.
b) Newspaper
c) Magazine
d) Online
e) Outdoor
f) Leaflets
52 | P a g e
Q5. Rate your satisfaction level towards range of products of Samsung?
Satisfied Neutral Dissatisfied
Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
Q6. Rate your satisfaction level towards availability of Samsung products?

Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
Q7. Rate your satisfaction level towards Durability of Samsung products?

Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
Q8. Rate your satisfaction level towards after sale services/customer support of Samsung
products?
Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
53 | P a g e
Q9. Rate your satisfaction level towards prices of Samsung products?
Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
Q10. Rate your satisfaction level towards schemes and offers provided by Samsung on
its products on various occasions?
Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
Q11. Rate your overall satisfaction level towards products of Samsung?
Air conditioner
TV/LCD/LED
Kitchen Appliances
Mobiles
Signature of the respondent

Thank You for your valuable time
54 | P a g e

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INTRODUCTION

refrigerators, microwave ovens, other household appliances, etc.).

similarly from 2.5 per cent to 5 per cent respectively.

Market trends for the future

and strengthening its LG brand shop network by 2012.

Factors that will drive growth in this sector

 Increased disposable incomes and greater accessibility to credit is growing the

 Relaxation of tariffs and increased liberalisation amid a favourable FDI environment

Key Industry Dynamics

Industry Size: Rs. 350bn

Key Categories: White Goods, Brown goods and Consumer electronics.

Margin Profile: Low margin, dependant on volumes

Growth opportunities: Lower penetration coupled with increasing disposable income

White goods Brown goods Consumer electronics

· Air conditioners · Microwave Ovens · TVs

· Refrigerators · Cooking Range · Audio and video systems

· Washing Machines · Chimneys · Electronic accessories

· Sewing Machines · Mixers · PCs

· Watches and clocks · Grinders · Mobile phones

· Cleaning equipment · Electronic fans · Digital cameras

· Other domestic appliances · Irons · DVDs

Consumer Durables Market Size (2010) Mn units (2011E) Growth (%)

Flat Panel TV 2.8 4.5 61

Washing Machines 5.0 6.0 20

Air Conditioners 3.4 4.4 29

Microwave 1.0 1.5 44

Source: CEAMA, MOSPI, GEPL Capital Research

demand for consumer products as well.

Whirlpool was established in 1911 as first commercial manufacturer of motorized washers to

manufacturing facilities at Faridabad, Pondicherry and Pune.

theatre systems and optical storage systems.

privately-held diversified industrial corporations in India. The Company has a network of 38

Colombo (Sri Lanka), Riyadh (Saudi Arabia) and Guangzhou (China-PRC).

Projectors, Smart Boards and DVD Camcorders.

differences need to be analysed to determine the extent of rivalry between the

 To study the marketing strategies of Samsung.

 To study the market share of Samsung in electronic market.

 To study the consumer perception for the products of Samsung.

 To study the factor responsible for buying electronic products.

In today’s globally competitive environment where survival of fittest theory is being

are the important resource to be fulfilling the needs.

in my research, I have selected one major company – Samsung.

camera, audio-video systems, computers, electronic accessories, etc) and consumer

to adopt environment friendly technology like usage of non-CFC (non- Chloro-Fluro-

an estimated sale of 4.1m units. According to FICCI Survey April-March 2003-2004

Crores. This facility manufactured Colour Televisions, Washing Machines, Air-Conditioners

Color Televisions, Air Conditioners, Refrigerators, Washing Machines Microwave Ovens

consumer on the basis of health benefits.

Televisions, Semi Automatic Washing Machines, Air Conditioners, Frost-Free Refrigerators

outperforming industry expectations.

a slew of initiatives as a part of Corporate Social Responsibility. SAMSUNGEIL is proud to

Department. This function caters to activities like Energy Conservation, Environmental

and servicing their Samsung products.

problem or in certain generalization for some theoretical formulation. The system of

collecting data for research projects is known as research methodology. Research

Methodology represents the design of the research work.

Data sources : Primary and Secondary.

Data approaches : Questionnaire.

Sample procedure : Convenience sampling.

Area of survey : Moradabad

Data analysis method : Pie chart

Sample unit of Project report are Customers of electronics products

II. Sample size: