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8/11/2019 consumer durables market in india with respect to samsung
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A Study of Consumer Durable Market for Samsung Electronics
SAMSUNG ELECTRN!CS
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INDEX
Sl. No. Contents Page no.
1. Introduction 4
2. Industry Profle 6
3.CompanyProfle 8
4. Product Profle 16
5.Objectie o!"tudy 1#
6. $esearc% &et%odolo'y 2(
i. Primary data
ii. "econdary data
iii. "amplin'
i. "cope o! t%e study
. )imitations o! t%e study
#. *%eoretical +ac,'round o! t%e study 23
8. -ata nalysis 26
/. 0indin's 4(
1(.$ecommendations 41
11. Conclusion 42
12. nneure 43
13. +iblio'rap%y 48
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INTRODUCTION
+e!ore t%e liberaliation o! t%e Indian economy only a !e
companies li,e elinator odrej lyn and 7oltas ere t%e major
players in t%e consumer durables mar,et accountin' !or no less t%an
/( o! t%e mar,et. *%en a!ter t%e liberaliation !orei'n players li,e
) "ony "amsun' 9%irlpool -aeoo and ia came into t%e
picture.
*oday t%ese players control t%e major s%are o! t%e consumer
durables mar,et. Consumer durables mar,et is epected to 'ro at2(:3( in 2(13:2(14. It is 'roin' ery !ast because o! rise in liin'
standards easy access to consumer fnance and ide ran'e o!
c%oice as many !orei'n players ere enterin' in t%e mar,et it% t%e
increase in income leels easy aailability o! fnance increase in
consumer aareness and introduction o! ne models t%e demand
!or consumer durables %as increased si'nifcantly. Products li,e
as%in' mac%ines air conditioners microae oens teleisions
;*7< ere no lon'er considered luury items. =oeer t%ere ere
still ery !e players in cate'ories li,e acuum cleaners and
dis%as%ers Consumer durables sector is c%aracteried by t%e
emer'ence o! &>Cs ec%an'e o?ers discounts and intense
competition. *%e mar,et s%are o! &>Cs in consumer durables sector
is 65. &>C@s major tar'et is t%e 'roin' middle class o! India.
&>Cs o?er superior tec%nolo'y and serice to t%e Consumers
%ereas t%e Indian companies compete on t%e basis o! frm 'rasp o!
t%e local mar,et t%eir ell:ac,noled'ed brands and %old oer ide
distribution netor,. =oeer t%e penetration )eel o! t%e
consumer durables is still lo in India. Indian Consumer durables
mar,et used to be dominated by !e domestic players li,e odrej
7oltas and elinator. +ut post liberaliation many !orei'n companies%ae entered into Indian mar,et det%ronin' t%e Indian players and
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dominatin' Indian mar,et t%e major cate'ories bein' *7
$A0$I$*O$ &IC$O97A O7A> and 9"=I> &C=I>A".
4
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India bein' t%e second lar'est 'roin' economy it% %u'e
consumer class %as resulted in consumer durables as t%e !astest
'roin' industries in India. ) "&"B> t%e to orean companies
%ae been maintainin' t%e lead in t%e mar,et it% ) bein' leader
in almost all t%e cate'ories.
*%e rural mar,et is 'roin' !aster t%an t%e urban mar,et alt%ou'%
t%e penetration leel is muc% loer .*%e *7 se'ment is epected to
t%e lar'est contributin' se'ment to t%e oerall 'rot% o! t%e
industry. *%e risin' income leels double:income !amilies and
consumer aareness ere t%e main 'rot% driers o! t%e industries.
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INDUSTRY PROFILE
*%e Consumer -urables industry consists o! durable 'oods andappliances !or domestic use suc% as teleisions re!ri'erators air
conditioners and as%in':mac%ines. Instruments suc% as cell p%ones
and ,itc%en appliances li,e microae oens ere also included in
t%is cate'ory. *%e sector %as been itnessin' si'nifcant 'rot% in
recent years %elped by seeral driers suc% as t%e emer'in' retail
boom real estate and %ousin' demand 'reater disposable income
and an oerall increase in t%e leel o! auence o! a si'nifcant
section o! t%e population. *%e industry is represented by major
international and local players suc% as +P) 7ideocon 7oltas +lue
"tar Onida ;&I$C Alectronics
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Companies li,e ) 9%irlpool and "amsun' %ae re'istered double:
di'it 'rot% in t%e direct cool re!ri'erator mar,et.
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In t%e case o! as%in' mac%ines t%e semi:automatic cate'ory it% a
%i'%er base and !ully:automatic cate'ories %ae 'ron by 4 per cent
to 626((( units and by 8 per cent to 31/((( units respectiely. In
t%e air:conditioners se'ment t%e sales o! indo Cs %ae 'ron by
32 per cent and t%at o! split Cs by /# per cent.
"ince t%e penetration in t%e urban areas !or t%ese products is
already Fuite %i'% t%e mar,ets !or bot% *7 and re!ri'erators ere
s%i!tin' to t%e semi:urban and rural areas. *%e 'rot% across product
cate'ories in di?erent se'ments is assessed in t%e !olloin'
sections.
Consu$er Ele%troni%s
*%e *7 production as 16.(2 million units in 2(12:13 and is
epected to 'ro by at least 2# per cent. t t%e disa''re'ated leel
conentional *7 olumes %ae been !allin' %ile Gat *7s %ae 'ron
stron'ly. &ar,et sources indicate t%at most *7 majors %ae p%ased
out conentional *7s and %ae been instead !ocusin' more on Gat
*7s. *%e Gat se'ment o! *7s no accounts !or oer 6( per cent o!
t%e total domestic *7 production and is li,ely to be around #( per
cent in 2(13:14. =i'%:end products suc% as liFuid crystal display
;)C-< and )A- *7 're by 4(( per cent and 2(( percent
respectiely.
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CO&P'NY PROFILE
S'&SUN! ( INTRODUCTION
)*ision +,+,-
"amsun' Alectronics@ ision !or t%e ne decade is HInsire t#e
/orld Createt#e Future.H
*%is ne ision reGects "amsun'
Alectronics commitment to inspirin'
its communities by leera'in'
"amsun'@s t%ree ,ey stren't%sD
J>e *ec%nolo'yK JInnoatie ProductsK and JCreatie "olutions.K
:: nd to promotin' ne alue !or "amsun'@s core netor,s ::
Industry Partners and Amployees. *%rou'% t%ese e?orts "amsun'%opes to contribute to a better orld and a ric%er eperience !or all.
)&ission-
Aeryt%in' done at "amsun' is 'uided by t%eir missionD to be t%e
best Jdi'ital:CompanyK.
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"amsun' 're into a 'lobal corporation by !acin' c%allen'es directly.
In t%e years a%ead our dedicated people ill continue to embrace
many c%allen'es and come up it% creatie ideas to deelop
products and serices t%at lead in t%eir mar,ets. *%eir in'enuity ill
continue to c%art "amsun's course as a proftable responsible
'lobal corporation.
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S'&SUN! 0ISTORY
+,12
"amsun' Alectronics launc%ed alay "4 in t%e oreanmar,et and 'lobal mar,ets
"amsun' Alectronics be'an mass producin' t%e orlds frst2( nanometre 4b ultra %i'%:speed mobile -$&
"amsun' Alectronics uneiled alay "4 in t%e B" "amsun' +ioepis entered into t%e deelopment and
mar,etin' partners%ip it% &erc, o! t%e B" "amsun' recorded t%e accumulated 'lobal s%ipment olume
o! (.1 billion units it% alay " smart p%one series
+,11
$eceied Innoation aards at Consumer Alectronics "%o
;CA" 2(11< !or 3# products
+,1,
alay " leadin' android p%one
"ales o! t%e alay " topped 1( million units just seenmont%s a!ter its launc% in Lune 2(1(
+,,3 >o.1 orldide mar,et s%are position !or *7s ac%ieed !or
t%e seent% Fuarter in a ro
-eeloped t%e orld@s frst 3(nm:class 64b >>-
0las%M memory
+lac, Lac, bestoed t%e +est "mart P%one aard at C*Iin t%e B.".
ttained >o.1 orldide mar,et s%are position !or )C- !or
t%e sit% year in a ro
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+,,4
-eeloped t%e orld@s frst real double:sided )C-
-eeloped t%e orlds@ frst 5(nm 1 -$&
Bneiled 1(& piel camera p%one
)aunc%ed H"tealt% 7acuumH a acuum cleaner it% t%e
orld@s loest leel o! noises
)aunc%ed t%e orlds@ frst +lu:$ay -isc Player
-eeloped 1.#2H"uper:$eGectie )C- "creen
+,,5
arded "amsun' as t%e +est $etailer o! t%e year 2((5 in
t%e consumer -urables cate'ory.
&r. ". =. O% appointed as t%e President and C%ie!
Aecutie ONcer o! "amsun' "out% 9est sia.
+,,6
$eceied t%e olden Peacoc, "pecial commendation
Certifcate !or Corporate "ocial $esponsibility.
India made re'ional %eadFuarters !or "amsun' "out%estsia.
&r. . ". im appointed as t%e 0irst President and C%ie!
Aecutie ONcer o! "amsun' "out% 9est sia.
+,,2 Inau'urated "amsun'@s ne =i'%:*ec% adanced
$e!ri'erator !acility.
Commencement o! production at re!ri'erator !acility in>oida.
&er'er o! "IA) it% "AII*.
"o!tare tec%nolo'y par, set up at >oida
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+,,+
Construction commences !or 5(((((( re!ri'erator plantin >oida
"amsun' uneils ne tec%nolo'y !or Consumer =ome
Antertainment ;->IeMoida manu!acturin' comple.
"amsun' India currently employs oer 16(( employees it% around
18 o! its employees or,in' in $esearc% -eelopment.
S'&SUN! !LO8'L
T#e DN' o9 Digital Inno:ation
"amsun' Alectronics is a 'lobal leader in semiconductors
telecommunications di'ital media and di'ital coner'ence
tec%nolo'ies it% 2((4 parent company sales o! B"E55.2+n and net
income o! B"E1(.3+n. Amployin' appro. 113((( people in oer /(
oNces in 48 countries t%e company %as o! 5 main business unitsD
-i'ital ppliance +usiness -i'ital &edia +usiness )C- +usiness
"emiconductor +usiness and *elecommunication >etor, +usiness.
$eco'nied as one o! t%e !astest 'roin' 'lobal brands "amsun'Alectronics Corporation is t%e orlds lar'est producer o! Colour
&onitors *7s &emory C%ips and *0*
)C-s.
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Custo$ized rodu%ts 9or Indian Consu$ers
"amsun' understands t%e local cultural sensibilities to
customie its products accordin' to t%e Indian mar,et. It %as
set up a Jusability labK at t%e Indian Institute o! *ec%nolo'y in
>e -el%i to customie "amsun' products to meet t%e specifc
needs o! Indian consumers. *%is industry:institute partners%ip
is %elpin' "amsun' to study and analye consumer response in
aspects o! product desi'n includin' aest%etics er'onomics
and inter!ace.
*%rou'% its researc% done on consumer pre!erences in India
"amsun' %as concluded t%at Indian consumers ant more
sound oriented products. *%us t%e "amsun' teleisions !or
India %ae a %i'%er sound capacity t%an t%eir !orei'n
counterparts.
0or t%e semi:automatic se'ment o! "amsun' as%in'
mac%ines "amsun' %as introduced !or t%e frst time in India a
!eature called "uper -ry. It is present in t%ree o! "amsun's
semi automatic models and dries t%e clot%es better t%an t%e
rest.
"amsun' as%in' mac%ines %ae an additional menu t%at
ta,es care o! t%e local Indian ardrobes. *%ey also %ae a
memory re:start t%at ta,es care o! t%e !reFuent poer !ailures
in India.
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PRODUCTPROFILE
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O8;ECTI*ES OF T0E PRO;ECT
*o fnd number o! brands o! consumer durable in Arna,ulamdistrict.
*o study brand pre!erence o! consumer !or consumer durable'oods.
*o fnd most important parameter !or selection o! brand o! )C-
*7 $e!ri'erators 9as%in' mac%ine -7- &icroae oen.
*o study proft mar'in o! major brands in consumer durable.
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Resear%# &et#odology procedures to be used !or t%e study amon'
retailersQdealer and. =oeer it as eclusiely personal interie.
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Data Colle%tion&C=I>A
INTERPRET'TION is on
3rd
it% 18.
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&ost i$ortant ara$eter 9or $ore sale o9 T*
Ta?le No.6
Sr. No.
REASONS FOR MORE
SALES
NO. OF
RESPONDENTS
PERCENTAG
E
1 Price 28 28
2 Ruality 3( 3(
3 "erice 1# 1#
4 dertisement 15 15
5 "c%emes 1( 1(
*O*) 1(( 1(("ourceD : "urey
!ra# No.6
NO. OF RESPONDENTS
Price Ruality "ericedertisement
"c%emes
1(
15
1#
28
3(
INTERPRET'TION 18 18
3 9=I$)POO) 16 16
4 7I-AOCO> 13 13
5 "O>T 11 11
6 O-$AL / /
# P=I)IP" # #
8 A>"*$ 5 5
*O*) 1(( 1(("ourceD :"urey
!ra# No.12
0ig# Prota?le 8rand25
2(
15
1(
5
(
) "&B> 9=I$)POO) 7I-AOCO> "O>T O-$AL P=I)IP"
A>"*$
INTERPRET'TION 15
4 -7A$*I"&A>* * $B$) $A 13
5 I&P$O7A RB)I*T 1(6 $AB)$ "C=A&A" /
*O*) 1((
"ourceD :"urey
!ra# No.16
35
3(
25
2(
15
1(
5
(
0"* >- $A-BCAP$ICA" I>C$A"A
-7A$*I"&A>* I&P$O7A $AB)$
$AB)$ -A)A$* $B$)$A RB)I*T "C=A&A"
0*A$")A" &$I>
"A$7ICA
INTERPRET'TION !or increase t%e
sales.
!ter t%at Prices o! t%e product s%ould be economic. -ealer &ar'in
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s%ould increase !or motiation o! dealers.
39
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FINDIN!
9e came to ,no %ile isitin' t%e s%op most o! t%e dealers sold
entire consumer durable product includin' *7 $e!ri'erator 9as%in'
&ac%ine -7- &icroae oen.
9e ,no t%at durin' t%e surey in consumer durable industry in
Arna,ulam district ) is leadin' in 9as%in' &ac%ine $e!ri'erator.
"tudy s%os t%at Fuality is most important parameter !or more sales
o! teleision and only t%en price is considered by consumers.
"tudy s%os t%at Fuality o! t%e product is most important
parameter !or $e!ri'erator only t%en price is considered by
consumers.
9%ile isitin' t%e s%op e came to ,no t%at Fuality is most
important parameter %ic% is a?ect on more sales o! 9as%in'
&ac%ine.
ccordin' to "urey P%ilips is most popular brand !or -7-
"amsun' is t%e popular brand !or *eleision.
9e came to ,no t%at %ile isitin' t%e s%op enstar is most
pre!erable brand !or &icroae oen because o! t%eir Fuality.
9%ile isitin' t%e s%op e ,no t%at ) is 'ies %i'% proft mar'in
as compare to ot%er competitors.
9%ile isitin' t%e s%op dealers su''ested t%at a!ter sales serice is
most important !actor %ic% contributes toards t%e sales o!
Consumer durables.
ll t%e dealers ere not satisfed it% t%e proft mar'in.
"&"B> product is costly as compare to ) and 7I-AOCO>.
&aimum rural area is coered by 7I-AOCO> because o! t%eir lo
price products.
9e came to ,no %ile isitin' t%e s%ops t%at t%ere as bi' problem
o! a!ter sales serice.
&any dealers ere !acin' t%e problem o! a!ter sale serice because
t%ere is no !ollo up calls !rom "&"B>.
-emo calls also not done properly.
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) and 7ideocon is t%e main competitor o! "&"B>.
dertisin' o! "&"B> *7 is more e?ectie as compared to t%ecompetitors.
"ales promotion sc%eme ere suNcient.
SU!!ESTIONS RECO&END'TION
Company s%ould improe t%e a!ter sales serice o! products as it is
t%e main !actor !or t%e sales o! consumer products.
I! t%e "&"B> )td. reduces t%eir product price li,e ) and
7I-AOCO> t%en "&"B> ill ta,e oer t%e ) in all cate'ories.
Company s%ould distribute 'i!t items !or ma,in' brand popularamon' people.
Company s%ould introduce lo price and lo poer consumption
$e!ri'erator !or acFuirin' t%e middle income 'roup.
-ealer desire more adertisement to be done t%rou'% local
nespaper and cable *7 ads. *o ma,e consumers aare about t%e
product.
Prompt o! serice in time.
dertisements o! t%e companys products s%ould !ocus on Fuality
rat%er t%an price.
Company s%ould tar'et upper middle class or premium classcustomers.
Company s%ould introduce lo cost products to satis!y t%e needs o!
lo or middle class.
-emo calls as ell as !ollo up =elp Company to maintain customer
relations%ip and %ence t%e company s%ould !ocus on t%ese aspects.
"&"B> ltd. s%ould concentrate on a!ter sales serice.
"&"B> ltd. s%ould try to trap t%e rural mar,et.
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CONCLUSION
9it% respect to t%e aboe study and t%e fndin's t%ereby t%e
company %as defnitely entrenc%ed into t%e urban mar,et.
9it% !e more concerted e?orts t%e said or'aniation needs to
enter t%e rural mar,et in order to completely establis% itsel! all
oer.
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'NNEXURE
'G. HUESTIONN'IRE $ ) $ 7I-AOCO> $ O>I- $ ">"BI
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6G /#at is t#e i$ortant ara$eter 9or $ore sales o9Tele:ision ?rand
$ Price $ Ruality $ "erices $ dertisement $ "c%emes
5G /#i%# is $aBor ?rand o9 Re9rigerator you sell 9ro$ yours#o
$ O-$AL $ 9=I$)POO) $ A>"*$$
)$
"&"B> $ 7I-AOCO> $ A)7I>*O$
4G /#at is t#e i$ortant ara$eter 9or $ore sales o9Re9rigerator ?rand
$ Price $ Ruality $ "erices $ dertisement $ "c%emes
3G /#i%# is $aBor ?rand o9 /as#ing &a%#ine you sell 9ro$ your
s#o
$ I0+ $ 9=I$)POO) $ A>"*$ $ )
$ "&"B> $ 7I-AOCO> $ A)7I>*O$$
O-$AL
8< /#at is t#e i$ortant ara$eter 9or $ore sales o9 /as#ing
&a%#ine ?rand
$ Price $ Ruality $ "erices $ dertisement $ "c%emes
7G /#i%# is $aBor ?rand o9 D*D you sell 9ro$ your s#o
$ "&"B> $ ) $ 7I-AOCO>$
O>I-
$ ">"BI $ P=I)IP" $ I>*AU $"O>T
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1,G /#at is t#e i$ortant ara$eter 9or $ore sales o9D*D ?rand
$ Price $ Ruality $ "erices $ dertisement $ "c%emes
11G /#i%# is $aBor ?rand o9 &i%ro"a:e you sell 9ro$ yours#o
$"&"B> $ ) $ 7I-AOCO>$
A>"*$
$ O-$AL $ P=I)IP" $ +LL $"O>T
1+G /#at is t#e i$ortant ara$eter 9or $ore sales o9
&i%ro"a:e ?rand
$ Price $ Ruality $ "erices $ dertisement $ "c%emes
12G /#i%# %o$anyAs rodu%t you gi:e #ig# rot $argin
$ "&"B> $ ) $ 7I-AOCO> $ "O>T
$ 9=I$)POO) $ O-$AL $ P=I)IP"$
A>"*$
16G /#at are your suggestions 9or S'&SUN! to in%reaset#e sales
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8G. LIST OF DE'LERS" O"*I> +A> (4#4 2#4#/53
2 ))I>CA =O&A PP)I>CA" T. L)AA) (4#6 2(811#8
3 &+I)T A>*A$P$I"A" *=B)"I-=$> (4#6 2851(16
4 &+I)T A>*A$P$I"A" P$">>>(4#6
3(/(56#
5 &$ PP)I>CA" $"=AA- (4#5 235(425
6 >>- A)AC*$O>IC" >>- (4#6 28321(1
7 >>- $-IO" $7AA>-$> (4#4 2#1(214
8 >CT A)AC*$O>IC" +-B)$"=AA- (4#6 2831#14
9 >LB A)AC*$O>IC" 7I"9> (4#5:2465(/#
10 >LB" =O&A PP)I>CA" $I"=>> (4#6 28526#
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52 "B)*=>I A)AC*$O>IC" .0$B-AA> +7 (4#4 2422251
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54 "B"=$ =O&A PP)I>CA" "B$A"= (4#4 241/(85
55 "B"=$ =O&A PP)I>CA" "LI*= /38#/(4243
56 *=C=I$T**=B =O&A PP)I>CA" &B=A&&A- ")I> (4#6 2686483
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58 *=$**B =O&A PP)I>CA" $ALI (4#34 2836##
59 7I>A"= A>*A$P$I"A" $L> /84641344#
60 7I" =O&A PP)I>CA" "B$A"= (4#5 2322(8/
61 7 A>*A$P$I"A" $L"A=$> /8/56(3(3(
62 VO-IC =O&A PP)I>CA" >OOP.7 (4#4 24232(6
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