Indian Consumer durables market used to be dominated by few domestic players like
Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies
have entered into Indian market dethroning the Indian players and dominating Indian
market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and
WASHING MACHINES.
India being the second largest growing economy with huge consumer class has resulted in
consumer durables as the fastest growing industries in India. LG, SAMSUNG the two
Korean companies have been maintaining the lead in the market with LG being leader in
almost all the categories.
The rural market is growing faster than the urban market, although the penetration level
is much lower .The CTV segment is expected to the largest contributing segment to the
overall growth of the industry. The rising income levels double-income families and
consumer awareness were the main growth drivers of the industries.
A
Project Report On
A Study of Consumer Durable Market For Samsung
Electronics Ltd
INDEX
Sr.no.
Contents
1.
Introduction
2.
Industry Profile
3.
Company Profile
4.
Product Profile
5.
Objective of Study
6.
Research Methodology
1.Primary data
2. Secondary data
3.Sampling
4. Scope of the study
7.
8.
Data Analysis
9.
Findings
10
Recommendations
11
Conclusion
10.
Bibliography
Page no.
INTRODUCTION
Before the liberalization of the Indian economy, only a few companies like Kelvinator,
Godrej, Alwyn, and Voltas were the major players in the consumer durables market,
accounting for no less than 90% of the market. Then, after the liberalization, foreign
players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.
Today, these players control the major share of the consumer durables market. Consumer
durables market is expected to grow at 10-15% in 2009-2010. It is growing very fast
because of rise in living standards, easy access to consumer finance, and wide range of
choice, as many foreign players were entering in the market with the increase in income
levels, easy availability of finance, increase in consumer awareness, and introduction of
new models, the demand for consumer durables has increased significantly. Products like
washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no
longer considered luxury items. However, there were still very few players in categories
like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the
emergence of MNCs, exchange offers, discounts, and intense competition. The market
share of MNCs in consumer durables sector is 65%. MNC's major target is the growing
middle class of India. MNCs offer superior technology to the Consumers whereas the
Indian companies compete on the basis of firm grasp of the local market, their wellacknowledged brands, and hold over wide distribution network. However, the penetration
Level of the consumer durables is still low in India.
Indian Consumer durables market used to be dominated by few domestic players like
Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies
have entered into Indian market dethroning the Indian players and dominating Indian
market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and
WASHING MACHINES.
India being the second largest growing economy with huge consumer class has resulted in
consumer durables as the fastest growing industries in India. LG, SAMSUNG the two
Korean companies have been maintaining the lead in the market with LG being leader in
almost all the categories.
The rural market is growing faster than the urban market, although the penetration level
is much lower .The CTV segment is expected to the largest contributing segment to the
overall growth of the industry. The rising income levels double-income families and
consumer awareness were the main growth drivers of the industries.
Research Methodology
Research methodology is considered as the nerve of the project. Without a proper wellorganized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
used in the preference of the other methods
Research design
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
evolution of successful marketing strategies and programmers. It is an important tool to
study buyers behavior, consumption pattern, brand loyalty, and focus market changes. A
research design specifies the methods and procedures for conducting a particular study.
According to Kerlinger, Research Design is a plan, conceptual structure, and strategy of
investigation conceived as to obtain answers to research questions and to control
variance.
Research design specifies methods and procedures for study. In this study the company
was interested to know the demand of different consumer durable product, about
competitors, and potential for SAMSUNG procedures to be used for the study among
retailers/dealer and. However it was exclusively personal interview.
Data Collection:
This report was prepared after collecting data from the retailers/ dealers and past data was
arranged from the various studies conducted in last few years and various other records of
company.
Primary Data:
These data were collected by personal interview with retailers/ dealer. For this purpose
questionnaires were prepared in such that all necessary data would be collected.
Secondary Data:
Information regarding the project, secondary data was also required. These data were
collected from various past studies and other sources of the company.
SAMPLING METHOD
Random Sampling method
SAMPLE SIZE
100 Dealers
Research tools:
Questionnaires
RESEARCH AREA
HYDERABAD
SECENDRABAD
Scope
1. In term of purchasing power parity (PPP), India is the 4th largest economy in the world
and overtake Japan in the near future become the 3rd largest.
2. Indian consumer durable market is expected to reach $450 billion by on 2010
3. India has the youngest population amongst the major countries. There were lot of
people in the different income categories nearly the two third population is below the
age of 35 and nearly 50% is below 25.
4. There were 56 million people in middle class, who were earning us$4,400-US$21,800
a year. And there were 6 million rich household in India.
5. The upper-middle and high-income household in urban areas were expected to grew to
38.2 million in 2007 as against 14.6 million in 2000.
OPPORTUNITY
1. In India the penetration level of white goods is lower as
compared to other
developing countries.
2. Unexploited rural market.
3. Rapid urbanization.
4. Increase in income level, i.e. increase in purchasing power of consumers.
5. Easy availability of finance.
Threats
1. Higher import duties on row materials.
2. Cheap imports from Singapore, China and from other Asian countries.
10
LIMITATION OF STUDY
Although I tried my best in preparation of this project, but this study has some limitation:
1.The period of the project was not sufficient to study all the factors in deep.
2.Visiting various places for the study consumed a lot of time.
3.We cannot say that what the consumer have revealed will be right for each and every
situation because their perception is influenced by many factors.
4.Many consumer and dealers/retailers showed less interest in providing information and
havent cooperated.
5.Some of confidential information viz. credit period, schemes, policies and sales figure
were not disclosed by the competitors.
11
12
13
where and how to look. Sometimes the information may exist in central files (i.e., at
headquarters), in computer database, or in departmental chronological files.
In other organizations, a central library keeps all relevant information. Systematic
searches should be made through exploratory interviews with everyone who handles the
information. Often company librarians, MIS. PR/communications, or departmental
secretaries can help in pinpointing critical data sources. Internal data sources may be the
only source of information for many studies.
External Sources
External sources are created outside the organization and are more varied than internal
sources. There are also better defined methods for finding them. This discussion is
restricted to published sources, although other sources of information may be
useful.
Published sources of data can be classified into five categories. The newest and fastest
growing one is computerized database. They are composed of interrelated data files. The
files are sets of records grouped together for storage on some medium. Access may be
through online search or CD-ROM. Online databases are often specialized and focus on
information about a particular field.
Major source of published information consists of diverse materials from special
collections. Within this category there are many reference books, each a compendium of
a range of information. A second group includes university publications, of which there
are masters theses, doctoral dissertations, and research records. A third group includes
company publications such as financial reports, company policy statements, speeches by
prominent executives, sales literature, product specifications, and many others. There are
14
INDUSTRY PROFILE
The Consumer Durables industry consists of durable goods and appliances for domestic
use such as televisions, refrigerators, air conditioners and washing machines. Instruments
such as cell phones and kitchen appliances like microwave ovens were also included in
this category. The sector has been witnessing significant growth in recent years, helped
by several drivers such as the emerging retail boom, real estate and housing demand,
greater disposable income and an overall increase in the level of affluence of a significant
section of the population. The industry is represented by major international and local
players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool,
etc.
The consumer durables industry can be broadly classified into two segments: Consumer
Electronics and Consumer Appliances. Consumer Appliances can be further categorized
into Brown Goods and White Goods. The key product lines under each segment were as
follows.
Industry Size, Growth, Trends
The consumer durables market in India was estimated to be around US$ 5 billion in
2007-08. More than 7 million units of consumer durable appliances have been sold in the
year 2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per
15
cent share of volumes. CTV, refrigerators and Air-conditioners together constitute more
than 60 per cent of the sales in terms of the number of units sold.
In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct
cool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have
registered double-digit growth in the direct cool refrigerator market.
In the case of washing machines, the semi-automatic category with a higher base and
fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to
229,000 units, respectively. In the air-conditioners segment, the sales of window ACs
have grown by 32 per cent and that of split ACs by 97 per cent.
Since the penetration in the urban areas for these products is already quite high, the
markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas.
The growth across product categories in different segments is assessed in the following
sections.
Consumer Electronics
The CTV production was 15.10 million units in 2007-08 and is expected to grow by at
least 25 per cent. At the disaggregated level, conventional CTV volumes have been
falling while flat TVs have grown strongly. Market sources indicate that most CTV
majors have phased out conventional TVs and have been instead focusing more on flat
TVs. The flat segment of CTVs now account for over60 per cent of the total domestic TV
16
17
COMPANY PROFILE
SAMSUNG Introduction
Our Vision
Samsung is guided by a singular vision: to lead the digital convergence movement.
We believe that through technology innovation today, we will find the solutions we need
to address the challenges of tomorrow. From technology comes opportunity for
businesses to grow, for citizens in emerging markets to prosper by tapping into the digital
economy, and for people to invent new possibilities.
Its our aim to develop innovative technologies and efficient processes that create new
markets, enrich peoples lives and continue to make Samsung a trusted market leader
Our Mission
18
Samsung grew into a global corporation by facing challenges directly. In the years ahead,
our dedicated people will continue to embrace many challenges and come up with
creative ideas to develop products and services that lead in their markets. Their ingenuity
will continue to chart Samsungs course as a profitable, responsible global corporation.
19
SAMSUNG HISTORY
2008
2007
the U.S.
2006
September, 2005
November 2004
February 2004
the year 2004 from Mr. Shivraj Patil, Union Home Minister.
India made regional headquarters for Samsung Southwest Asia.
February 2004
November 2003
August 2003
facility.
Commencement of production at refrigerator facility in Noida.
June 2003
December 2002
October 2002
June 1996
May 1996
Launch in South
21
August 1995
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.
Our aim is to gain technological leadership in the Indian marketplace even as our goal is
to earn the love and respect of more and more of our Indian consumers. Mr. S.H. Oh,
President & CEO Samsung South-West Asia Regional Headquarters.
Samsung in India
Samsung India is the hub for Samsungs South West Asia Regional operations. The South
West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka,
Bangladesh, Maldives and Bhutan besides India. Samsung India, which commenced its
operations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in
just a decade of operations in the country.
22
Headquartered in New Delhi, Samsung India 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 were 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.
SAMSUNG GLOBAL
The DNA of Digital Innovation
Samsung Electronics is a global leader in semiconductors, telecommunications, digital
media and digital convergence technologies with 2004 parent company sales of
US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over 90
offices in 48 countries, the company has of 5 main business units: Digital Appliance
Business, Digital Media Business, LCD Business, Semiconductor Business and
Telecommunication Network Business. Recognized as one of the fastest growing global
brands, Samsung Electronics Corporation is the worlds largest pro ducer of Colour
Monitors, Colour TVs, Memory Chips and TFT LCDs.
23
24
PRODUCT PROFILE
25
27
Table No.1
Sr. No.
1
2
3
4
NO. OF RESPONDENTS
86
67
56
92
301
Source:- Survey
Graph No. 1
28
INTERPRETATION:According to survey, 86 dealers were sold only C-TV, 67 dealers were sold C-TV and
REFRIGERATOR, 56 dealers were sold C-TV and REFRIGERATOR, WASHING
MACHINE and 92 dealers were sold all product.
Table no. 2 shows no. of companys product sold from dealers shop.
Sr. NO.
1
2
3
4
NO. OF COMPANIES
PRODUCT
FIVE
FOUR
THREE
TWO
TOTAL
Graph No. 2
29
NO. OF RESPONDENTS
33
24
9
34
100
Source:- Survey
INTERPRETATIONAccording to survey, 33 dealers were sold 5 brands, 34 dealers were sold only 2 brands
from their shops.
NO. OF
RESPONDENTS
39
23
18
11
9
100
BRAND
LG
VIDEOCON
SAMSUNG
SANSUI
ONIDA
TOTAL
30
PERCENTAGE
39
23
18
11
9
100
Source:- Survey
Graph No. :- 3
Table No.4
Sr. NO.
1
2
3
4
5
NO. OF
RESPONDENTS
28
30
17
15
10
100
31
PERCENTAGE
28
30
17
15
10
100
Source:- Survey
Graph No.4
INTERPRETATIONAccording to dealers, Price is most important parameter for more sale of C-TV
and then Quality, Services, Advertisement and Schemes.
BRAND
LG
VIDEOCON
SAMSUNG
GODREJ
WHIRLPOOL
KELVINATOR
NO. OF
RESPONDENTS
22
13
9
12
19
16
32
PERCENTAGE
22
13
9
12
19
16
KENSTAR
TOTAL
9
100
9
100
Source:- Survey
Graph No. 5
NO. OF
RESPONDENTS
27
32
19
13
9
100
33
PERCENTAGE
27
32
19
13
9
100
Source:-Survey
Graph No. :- 6
BRAND
LG
VIDEOCON
SAMSUNG
IFB
WHIRLPOOL
GODREJ
KELVINATOR
NO. OF
RESPONDENTS
18
11
15
7
21
9
10
34
PERCENTAGE
18
11
15
7
21
9
10
KENSTAR
TOTAL
9
100
9
100
Source:- Survey
INTERPRETATIONAccording to dealers, LG is leading in Washing Machine market with 18%, after that
VIDEOCON and SAMSUNG is leading in HYDERABAD.
Table No.8 shows most important parameter for more sale of Washing Machine
Sr. NO.
1
2
3
4
5
REASONS FOR
MORE SALES
Price
Quality
Service
Advertisement
Schemes
TOTAL
NO. OF
RESPONDENTS
26
32
24
10
8
100
35
PERCENTAGE
26
32
24
10
8
100
Source:- Survey
Graph No.8
INTERPRETATIONAccording to dealers, the most important factor which affects the sales of washing
machine is QUALITY, and then prices and services is considered by the customers.
BRAND
LG
VIDEOCON
SAMSUNG
ONIDA
PHILIPS
SANSUI
SONY
INTEX
NO. OF
RESPONDENTS
11
13
10
15
22
12
8
9
36
PERCENTAGE
11
13
10
15
22
12
8
9
TOTAL
100
100
Source:-Survey
Graph No. :- 9
INTERPRETATIONAccording to dealers, PHILIPS is the most popular brand in DVD market with 22%, after
that ONIDA with 15% and VIDEOCON with 13% on 3rd position.
Table No.10 shows most important parameter for more sales of DVD
Sr. NO.
1
2
3
4
5
REASONS FOR
MORE SALES
Price
Quality
Service
Advertisement
Schemes
TOTAL
NO. OF
RESPONDENTS
21
42
17
8
12
100
37
PERCENTAGE
21
42
17
8
12
100
Source:- Survey
Graph No. 10
INTERPRETATIONAccording to dealers, Quality is major factor in respect of more sale of DVD, and then
Services and prices were to be considered.
BRAND
LG
VIDEOCON
SAMSUNG
KENSTAR
GODREJ
PHILIPS
BAJAJ
SONY
NO. OF
RESPONDENTS
18
13
15
21
9
8
9
7
38
PERCENTAGE
18
13
15
21
9
8
9
7
TOTAL
100
100
Source:- Survey
Graph No. 11
INTERPRETATIONAccording to dealers, KENSTAR is very popular brand for microwave oven. KENSTAR
is making a huge business as compare to other competitors after that LG and then
SAMSUNG. According to dealers, microwave oven does not have that much demand as
compare to other consumer durable product.
Table No.12 shows Reason for more sales of MICROWAVE OVEN
Sr. NO.
1
2
3
4
5
REASONS FOR
MORE SALES
Price
Quality
Service
Advertisement
Schemes
TOTAL
NO. OF
RESPONDENTS
21
36
14
17
12
100
39
PERCENTAGE
21
36
14
17
12
100
Source:- Survey
Graph No. 12
INTERPRETATIONThe most important factor of more sales of microwave oven is QUALITY of the product.
Quality is mostly affected on sales of microwave oven.
BRANDS
LG
SAMAUNG
WHIRLPOOL
VIDEOCON
SONY
GODREJ
PHILIPS
KENSTAR
NO. OF
RESPONDENTS
21
18
16
13
11
9
7
5
40
PERCENTAGE
21
18
16
13
11
9
7
5
TOTAL
100
100
Source:- Survey
Graph No.13
Sr. No.
1
2
3
4
SUGGESTION
FAST AND REGULAR
AFTER SALES SERVICE
REDUCE PRICES
INCREASE DEALER
MARGIN
ADVERTISMENT AT
RURAL AREA
41
NO. OF RESPONDENTS
31
21
15
13
5
6
IMPROVE QUALITY
REGULAR SCHEMES
TOTAL
10
9
100
Source:- Survey
Graph No.14
FINDING
1. We came to know while visiting the shop most of the dealers sold entire consumer
durable product including C-TV, Refrigerator, Washing Machine, DVD, Microwave oven.
42
2. We know that during the survey in consumer durable industry in HYDERABAD and
rural area of HYDERABAD LG is leading in Colour television, Washing Machine,
Refrigerator.
3. Study shows that quality is most important parameter for more sale of colour television
and then price is considered by consumers.
4. Study shows that quality of the product is most important parameter for Refrigerator
then price is considered by consumers.
5. While visiting the shop we came to know that quality is most important parameter
which is affect on more sales of Washing Machine.
6. According to Survey, Philips is most popular brand for DVD.
7. We came to know that while visiting the shop, Kenstar is most preferable brand for
Microwave oven because of their quality.
8. While visiting the shop we know that LG is gives high profit margin as compare to
other competitors.
9. While visiting the shop dealers suggested that after sales service is most important
factor which contributes towards the sales of Consumer durables.
10. All the dealers were not satisfied with the profit margin.
11. SAMSUNG product is costly as compare to LG and VIDEOCON.
43
12. Maximum rural area is covered by the VIDEOCON because of their low price
products.
13. We came to know while visiting the shops that there was big problem of after sales
service.
14. Many dealers were facing the problem of after sale service because there is no follow
up calls from SAMSUNG.s
15. Demo calls also not done properly.
SUGGESTIONS &RECOMANDETION
Company should improve the after sales service of products as it is the main
factor for the sales of consumer products.
If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON then
SAMSUNG will take over the LG in all categories.
44
Company should introduce low price and low power consumption Refrigerator for
acquiring the middle income group.
Dealer desire more advertisement to be done through local newspaper and cable
TV ads. To make consumers aware about the product.
Company should introduce low cost products to satisfy the needs of low or middle
class.
45
Conclusion
With respect to the above study and the findings thereby, the company has
definitely entrenched into the urban market.
With few more concerted efforts, the said organization needs to enter the rural
market in order to completely establish itself all over.
46
ANNEXURE
A. Questionnaire
LG
47
7) Which is major brand of Washing Machine you sold from your shop?
IFB
Whirlpool
Kenstar
LG
SAMSUNG
Videocon
Kelvinator
Godrej
8) What is the important parameter for more sales of Washing Machine brand?
Price
Quality
Services
Advertisement
Schemes
9) Which is major brand of DVD you sold from your shop?
SAMSUNG
LG
Videocon
Sansui
Philips
Intex
Onida
SONY
10) What is the important parameter for more sales of DVD brand?
Price
Quality
Services
Advertisement
Schemes
11) Which is major brand of Microwave you sold from your shop?
SAMSUNG
LG
Videocon
Kenstar
Godrej
Philips
Bajaj
SONY
12) What is the important parameter for more sales of Microwave brand?
Price
Quality
Services
Advertisement
Schemes
13) Which companys product you give high profit margin?
SAMSUNG
LG
VIDEOCON
WHIRLPOOL
GODREJ
PHILIPS
SONY
KENSTAR
14) What are your suggestions for SAMSUNG to increase the sales?
_________________________________________________________________
48
LIST OF DEALERS:arunTechnoServices
Adress:107SRIRamakrishnaTowers,BehindChermas,
Ameerpet,Hyderabad-500016
Phone: 6604830
JDElectronics
Adress:ShivamRoad,Hyderabad500044
Phone: 67112882
SriSAITejaCentre&Appliances
Adress:1-40SrikanthReddyComplex,NH7MainRoad,
Kompally,Hyderabad500014
EzoneExperienceElectronics
Adress:301 To 310, City
Hyderabad 500034
Centre
Mall,
Road
No
11,
Banjara
Hills,
BellElectronics
Adress:7-2-614,GhasmandiXRoads,RPRoad,
Hyderabad 500003
B). Bibliography
12345-
http://www.samsung.com/in/aboustsamsung/index.html
http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html
http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html
http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html
http://www.samsung.com/in/consumer/index.html
49
50