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1.

1 INTRODUCTION

Background
Due to the rapid changes in the global market and the increased competition
experienced between firms, “Brand Management” has become more important.
Good brand management brings about clear differentiation between products,
ensures consumer loyalty and preferences and may lead to a greater market share.
Brand
A brand is a name or a symbol - and its associated tangible and emotional
attributes - that is intended to identify the goods or services of one seller in order
to differentiate them from those of competitors. At the heart of a brand are
trademark rights. A brand is the symbolic embodiment of all the information
connected with a product or service. It encompasses the set of expectations
associated with a product or service, which typically arise in the minds of
"people" (consumers, buyers, or other target audiences). A brand typically
includes a name ("brand name"), logo, andother visual elements such as images,
fonts, color schemes, or symbols. In other contexts, the term "brand" may be used
where the legal term trademark is more appropriate.
Branding –
The art of creating and maintaining a brand. Marketers seek to develop or
align the expectations comprising the target audience's brand experience through
branding activities. Branding carries the "promise" to the marketplace that a
product or service has a certain quality or characteristic which make it special or
unique (i.e. differentiated). Whatever the mix of programs, branding techniques
should beconsistent and complementary when well executed.
Brand equity-
Aaker (1991) stated that brand equity can be referred to as “a set of brand assets
and liabilities linked to a brand, its name and symbol that add to or subtract from
the value provided by a product or service to a firm and/or to that firm’s
customers”.
Brand loyalty-
Aaker (1991 p.39) defined Brand loyalty as “the attachment that a customer has to
a brand”. It can also be seen as consumer’s preference to purchase a particular
brand in a product class and this could be as a result of the consumer awareness
about that particular brand.

Benefit of a strong brand


According to Dave Dolak (2003), a strong brand will create the following benefits
amongst others:
• Build name recognition for your product/company.
• Influence the consumer’s buying decision.
• Build trust and emotional attachment to a firm’s product/service.
• Make purchase decision easier. For example in a commodity market where
product and services are indistinguishable, it will enable customers trust
and create a set of belief about your product even without knowing the
uniqueness of your products and characteristics.
• A strong brand increases the consumer’s attitude towards a particular
brand’s product and services and the strength of such attitude is developed
through experience with such brand.
• Consumers experience help to increased perceived qualities, inferred
attributes and eventually leads to brand loyalty which are not easy to
evaluate except before purchase.

SOURCES OF BRAND EQUITY


a) Brand Awareness :
It consists of brand recognition and brand recall performance. Brand recognition
is capability of consumer to identify brand among a variety of brand. And brand
recall is the
capapbility of consumer to collect information about brand from memory when a
product category is given to him.
According to Aaker (1991 p.62), there are three levels of brand awareness:
• Brand recognition: It is the ability of consumers to identify a certain
brand amongst other i.e. “aided recall”. Aided recall is a situation whereby
a person is asked to identify a recognized brand name from a list of brands
from the same product class.
• Brand recall: This is a situation whereby a consumer is expected to name
a brand in a product class. It is also referred to as “unaided recall” as they
are not given any clue from the product class.
• Top of mind: This is referred to as the first brand that a consumer can
recall amongst a given class of product.

Achieving brand awareness -


Aaker (1991) prescribed some of the following factors as ways to achieve brand
awareness:
• Involve a slogan or jingle: a slogan is a visible feature of a brand. There
can be a strong link between a slogan and a brand. The slogan and jingle
are powerful and can be a great change for a brand.
• Be different and memorable: as a result of the similarity between product
and their means of communication, product differentiation is important.

• Symbol exposure: a known symbol will make it easier to recall and


memorize a visible illustration of the brand. A logo that is connected to an
existing brand or a developed brand will play a vital role in developing and
keeping brand awareness.
• Publicity: one of the most important ways to get publicity and create
awareness is through advertisement.
• Event sponsorship: sponsorship of event can also help to create and
maintain awareness.
• Consider brand extension: one way to increase brand recall is to show the
logo or name on the product and make the name popular. Example of this
is coca-cola which is more publicized than the key product.

• Using cue: packaging is one of the most significant cues to a brand due to
the fact that it is what the purchaser sees when purchasing a product. If the
product or brand is not known, the only means of contact to the brand or
product is the package.

b) Brand Image :
It is the impression about the brand before any consumer. It can be either positive
or negative. A positive brand image can be created by marketing programs that
link strong, favourable and unique association to brand in memory. Consumer
beliefs about brand attributes and benefits can be formed in different ways. Brand
attributes are those descriptive features are the personal value and meaning that
consumers attach to the product or service. Brand benefits are the personal value
and meaning that consumers attach to the product or service attributes. These two
factors are the strength of the brand association. Then comes, favourability of
brand association. This is created by convincing consumer that the brand
possesses relevant attributes and benefits that satisfy their needs and wants. lastly,
uniqueness of brand associations. The essence of brand positioning is that the
brand has a sustainable competitive advantage or “unique selling proposition” that
induces consumer to buy a particular brand.

BUILDING A STRONG BRAND- THE FOUR STEPS


The steps are as follows :
1. Ensure identification of the brand with consumers and an association
of the brand in customers mind with a specific product class or
consumer need.
2. Firmly establish the totality of brand meaning in the mind of
consumers by strategically linking a host of tangible and intangible
brand associations with certain properties.
3. Elicit the proper customer responses to this brand identification and
brand meaning.
4. Convert brand response to create an intense, active loyalty relationship
between customers and the brand.
CRITERIA FOR CHOOSING BRAND ELEMENTS
In general, there are six criteria in choosing brand elements
1. Memorability
The brand must have a high level of brand awareness. it must be easily
recognizable and easily recalled by consumer.
2. Meaningfulness
Beside brand awareness, a brand must convey the message in terms of
valuable information It must convey general information about the
nature of product category on one side. On other side, it must provide
information regarding specific attribute and benefit of the brand.
3. Liability
Brand element can be chosen that are rich in visual and verbal imagery
and inherently fun and interesting.
4. Transferability
Up to what extent can the brand element add to the product category
and geographic sense? upto what extent does not element add to brand
equity across geographic boundaries and market segment?
5. Adaptability
The brand should be changed with the change in consumer values and
opinions as well as taste and preferences for example, logos and
characters can be given a new look or a new design to make them
appear more modern and relevant.
6. Protectability
This is last consideration regarding legal and competitive sense. The
brand elements can be legally protected on an international basis. The
brand formally registers them with appropriate legal bodies.

NAMING PROCEDURE
A number of different procedure or systems have been suggested for
naming new products.
1. The first step is to select a brand name for a new product. The brand
selected should have certain objective, ideal meaning and recognize the
role of brand with in the corporate branding hierarchy.
2. The second step is to generate as many names and concepts as
possible. The names and concepts can be explored by company
management and employees, existing and potential consumers, ad
agencies, professional name consultants or specialized computer based
naming companies.
3. The next step is the screening of names on the basis of objectives and
marketing consideration identified in step-1.
4. The fourth step involves the collection of more extensive information
on each of the final 5 to 10 names.
5. Consumer research is conducted to confirm management expectations
regarding memorability and meaningfulness of the names through
consumer testing.
6. Finally, based on all of the information collected from the previous
step, management can choose the name that maximizes the firms
branding and marketing objectives and then formally register the name.

Logos and symbols


Although the brand name typically is the central element of the brand, visual
brand elements often play a critical role in building brand equity, especially in
terms of brand awareness. Logos are defined as a means to indicate origin,
ownership. Or association. There are many types of logos, ranging from corporate
names or trademarks written in a distinctive form. Examples of brands with strong
word mark or trademarks include Coca-Cola, Kit-Kat, where no accompanying
logo separate from the name. Examples of abstract logos include the Mercedes
star, Rolex crown and Olympic rings. The non-word mark logos are often called
as symbols.

Characters
Characters represent a special type of brand symbol. Brand symbol. Brand
characters typically are introduced through advertising and can play a central role
in these and subsequent ad. Campaigns and package designs some brand
characters are animated (e.g., Pillsburys Poppin Fresh Doughboy), where as some
are live-action characters like the Marlboro cowboy.

Slogans
Slogans are short phrases that communicate descriptive or persuasive information
about the brand. Slogans often appear in advertising but can play an important role
on packaging and in other aspects of the marketing program.

Jingles
Jingles are musical messages written around the brand. Professional songwriters
typically compose jingles. They often have enough catchy hooks and choruses to
become almost permanently registered in the minds of listeners. Jingles can be
thought of as extended musical slogans and in that sense can be classified as a
brand element. It can communicate brand benefits and convey product meaning in
a musical way.

Packaging
Packaging involves the activities of designing and producing containers or
wrappers for a product. Early humans covered them selves with leaves and animal
skin. Packaging is used to identify the brand and convey descriptive and
persuasive message to consumers. It facilitates transportation and protection to
product. it can be reused home storage. Today, Packaging has been elevated in its
importance and has now become an integral part of product development and
launch.

Differences in consumers behaviour depends on the type of product the


consumer is buying. Kotler et al (1999) designed a buying behaviour model
which consisted of four different buyer behaviours.

High involvement Low involvement


Significant
Complex buying Variety-seeking
differences between
behaviour behaviour
brands

Few differences Dissonance-reducing Habitual buying


between brands behaviour behaviour

Table 1: four type of buyer’s behaviour, source: Kotler et al (1999) p.251


• Complex buying behaviour is when consumers purchase a high quality
brand and before making the purchase he seeks a lot of information
about it.
• Habitual buying behaviour is when consumers purchase a product out of
habit.
• Variety seeking buying behaviour is when consumers go around
shopping and experiment with a variety of product.
• Dissonance reducing buying behaviour is when a buyer is so highly
involved with buying a product as a result of the fact that it is expensive or
rare.

NEW TRENDS IN MARKETING


The strategy and tactics behind marketing programs have changed dramatically in
recent years as firms have dealt with the enormous shift of the “new economy” in
their external marketing environment. Changes in economic, technological,
political – legal, sociocultural, and competitive environments have compelled
marketers to develop new approaches and philosophies. Kotler identifies five
major forces of this new economy.
1. Digitalization and connectivity through Internet, Intranet and mobile
services.
2. Disintermediation and reintermediation via new middlemen of various
sorts.
3. Customization and customization through tailored products and by
providing customers ingredients to make products themselves.
4. Industry convergence through the blurring of industry boundaries.
5. New customers and company capabilities.

In the face of tighter budgets and the general demand for greater effectiveness
in marketing many marketers are starting to employ more creative and innovative
ways to reach out to their target customers. Many have started marketing
cooperatively in order to share costs among two or more marketers who are trying
to reach the same consumers.

HOW BUSINESS PRACTICES ARE CHANGING


The change in technology and economy are eliciting a new set of beliefs
and practices on the part of business firms.
1. From organizing by product units to organizing by customer segments.
2. From focusing on Profitable transactions to focusing on customer lifetime
value.
3. From focusing on Just the financial scorecard to focusing also on the
marketing scorecard.
4. From focusing on shareholders to focusing on stakeholders.
5. From marketing does the marketing to everyone does the marketing. Every
employee has an impact on the customer and must see the customer as the
source of company’s prosperity.
6. From building brands through advertising to building brands through
performance.
7. From focusing on customer acquisition to focusing on customer retention.
8. From no customer satisfaction measurement to in-depth customer
satisfaction measurements.
9. From over-promise, under-deliver to under promise, over-deliver.

HOW MARKETING PRACTICES ARE CHANGING


E-business describes the use of electronic means and platform to conduct
a company’s business. The advent of Internet has greatly increased the ability of
companies to conduct their business faster, more accurately, more timely with
reduced cost, and with the ability to customize and personalize customer
offerings. E-commerce and E-marketing are new strategies to meet the demand
of consumers in new economy.
E-commerce is more specific than e-business, it means that in addition to
providing information to visitors about the company, its history, philosophy,
product and job opportunities, the company or site offeres to facilitate the selling
of product and services online.
E-purchasing means companies decide to purchase goods, services and
information from various online suppliers.
E-marketing describes company efforts to inform, communicate, promote
and sell its products and services over the internet.

There are four major internet domains through which E-business take
place.
1. Business to consumer ( B2C)
2. Business to Business (B2B)
3. Consumer to Consumer (C2C)
4. Consumer to Business (C2B)

SETTING UP WEB SITES


A key challenge is designing a site that is attractive on first viewing and
interesting enough to encourage repeat visit. Early tet-based web sites have
increasingly been replaced by sophisticated sites that provide text, sound and
animation.

7 Cs as essential elements of effective web site


1. Context-layout and design
2. Content – Text, picture, sound, and video
3. Community – How the site enables user-to-user communication
4. Customization – site’s ability to tailor itself to different users or to
allow users to personalize the site.
5. Communication – site to user, user to site communication
6. Connection – degree to site is linked to other site
7. Commerce – capability to enable commercial transactions.
Strong brand equity has become a very important factor that influences
consumer’s perceptions of a brand. Success in brand management arises from
understanding and managing brand equity correctly to produce strong attributes
that will influence consumers when making their choices.

This thesis focuses on the importance of these dimensions (brand awareness,


brand loyalty, brand image and perceived quality) of customer-based brand equity
on consumer’s perceptions of a brand. This is based on the assumption that all
these dimensions of customer based-brand equity will have influence on
consumer’s perceptions of brand. However, this thesis aims to find out which
among these three dimensions (brand image, brand loyalty and perceived quality)
appear to have the least brand equity in both restaurants and to find out if
customer based-brand equity differ between the two restaurants with respect to
each attribute of brand awareness, brand image, perceived quality and brand
loyalty. Brand awareness was treated separately from other dimensions because of
the difference in scale.

A structured questionnaire was constructed to provide answers to our research


question. In this study, one hundred questionnaires were distributed, but only sixty
four useable questionnaires were realized. The study surveyed four dimensions of
consumer’s based-brand equity namely brand awareness, brand image, perceived
quality and brand loyalty. Among the three dimensions, brand loyalty appears to
have the least brand equity rating by consumers than the other dimensions.
Although, the four dimension appear to have influence on consumer perceptions
of brand.

Conclusively, the best way to build brand value and stop product and service
commoditization is through continuous attempt to build brand equity. Strong
brands are established by creating an emotional attachment with customers,
seeking differentiation in communication and performing the service. Branding
makes clear a restaurant’s reason for existence and inspires its employees to get
used to the brand thereby building it for customers.
The Keller Model

A major contribution to branding theory was that made by Kevin Keller (1993;
2001; 2003)with his introduction of the concept of customer-based brand equity
and the brand hierarchy(as graphically portrayed in Figure 1) (Keller, 2003).

Figure 1: Keller’s Customer-Based Brand Equity Pyramid

Resonance 4. Relationship
What about you and me?

Judgments Feelings 3.Response


What about you?

Performance Imagery 2. Meaning


What are you?

Salience 1.Identify
Who are you?

Two brand building blocks make up this step - ‘performance’ and ‘imagery’.
1. Identity
Who are you?
2. Meaning
What are you?
3. Response
What about you?
4. Relationships
What about you and me?
The next step is ‘brand response’ whereby the proper customer responses to the
brand identification and meaning are elicited (Keller, 2003). This step is achieved
with the ‘judgments’ and ‘feelings’ building blocks, and answers the question -
What about you?
‘Brand relationships’ constitutes the final step in the CBBE pyramid where brand
response is converted to an intense, active loyalty relationship between customers
and the brand (Keller,2001). Addressing the customer question of - What about
you and me? - the final brandbuildingblock and the pinnacle of the pyramid is
‘resonance’. Keller’s conceptual framework provides guidance in building,
measuring and managing brand
equity. While Keller claims that the model can be applied in a B2B context and a
consumer environment (Keller, 2003), it does not appear to have been tested for
industrial brands. The similarities and differences between business and consumer
markets have long been debated with organizational buyers found to differ in
many ways (Hutt and Speh , 1998; Kotler , 2000;Mudambi, 2002; Thompson,
Knox and Mitchell, 1997/1998; Wilson and Woodside, 2001),suggesting that the
application of such a model in a B2B setting will pose challenges .In answer to
Keller’s call for additional research to refine the framework and suggest
implications for marketing strategy (Keller, 1993), this exploratory study aims to
identify difficulties in applying the CBBE model in a B2B context - that of
electronic tracking systems for waste management.
An Empirical Test Application of Keller’s Model for Brands of
Electronic Tracking Systems for Waste Management
To address legislation requirements for Australian local authorities to monitor the
generation , transportation and disposal of wastes, new companies have emerged
with electronic means of waste tracking. Two competitors operate in this space,
with different technologies: a bar code docket system, brand A, and a system
using the Global Positioning System (GPS), brand B .The market for electronic
tracking systems for waste management is an interesting one for investigation.
The use of brands for high-technology products has been minimal until recently,
with the marketing of such products representing a challenging field (Zajas and
Crowley, 1995). The potential for waste tracking systems however will encourage
the entrance of competitors, thus increasing the importance of branding. Already
there are indications that branding is critical in this market as potential customers
learn to differentiate between the technologies and their manufacturers.
FACTORS AFFECTING CONSUMER BEHAVIOUR

There are many factors which can affect consumer behaviour. These factors can
be divided in to two parts:

a) Psychological Factors

b) Environment Factors

a) Psychological Factors

There are different factors lies with in the consumer which affects
consumer behaviour is know as psychological factors. These
Psychological factors are:

I. Perception

II. Personality

III. Motivation

IV. Learning

V. Attitude

b) Environment Factors

Factors lie in outside environment and affect consumer behaviour are


known as environment factors. Environment factors are:

I. Culture

II. Sub-Culture

III. Social Class

IV. Reference Group

V. Family

VI. Social Group


1.2 SIGNIFICANCE OF THE PROJECT

Each and every study has some significance. The significance of my study is to
find out the awareness of LG ,Samsung and preferences of the various customers
regarding the various types of flexibility ,availability etc. In today’s scenario there
are various Service providers available in the market which is providing different
functions and charges different prices each having its distinct features. Now a
day’s the customer have various options so they have to choose the best option
available in the market. This study also helps in finding out the customer
preferences regarding reliability, flexibility etc. This study also helps in knowing
the various pricing and advertisement strategies of the various service providers.
1.3 OBJECTIVES OF THE STUDY

 To provide the better services to both potential and current customers.


 To know how important the attributes of electronic product are for the
consumer other than the branded electronic product.
 To create a sound strategy that enhance the brand image in the market.
 To educate the customer utility of all branded e-product and normal
product.
 To find out whether people were really aware of life products
1.4 HYPOTHESIS

Hypothesis is considered as the principle instrument in research. It enables to


make profitability statement about population parameters. It can be defined as a
proposition or set of propositions set forth as an explanation for the occurrence
Of some specified group of phenomena either asserted merely as a provisional
conjecture to guide some investigation or accepted as highly probable in the light
of established facts:
The hypotheses involved in the study are;
1. The influencers play and important role while making the purchase
decision.
2. Most of the respondents prefer branded electronic product than other
product.
3. Prices do not play a significant role in influencing the buying selection.
4. There is only 9% respondents shift among different brands.
1.5 RESEARCH METHODOLOGY
Research Methodology is a way to solve the problem scientifically and
systematically. It includes not only the Research Methods but also the comparison
of the logic behind the method we use in the context of our research study and
explain why we are using a particular method and why not others. The research
methodology provided a systematic and planned approach to the research project
and involves tags and elements that are consistent with each other.
 Formulation of research problem:
First of all the researcher must decide the general area of interest of a
subject matter he would like to inquire into define the problem and then
rephrasing the same into meaningful terms from an analytical point of
view.
 Extensive Literature Survey:
Once the problem is formulated, a brief summary of it should be written
down. It is compulsory for a research worker writing a synopsis of the
topic and submit it to the necessary committee at the juncture the
researcher should undertake extensive literature survey connected with the
problem.

RESEARCH DESIGN

Constructing research design:Research design contains the over all


framework with in the research have to be conduct. Research design –
Descriptive

(1) Data Sources

a) Primary Sources

b) Secondary Sources

(2) Research Approaches

a) Survey

b) Observation
c) Unstructured Interview

(3) Research Instruments

a) Questionnaire

(4) Sampling Plan

a) Sampling Size

b) Sampling Techniques

(5) Contact Method

a) personal

(1) Sources of Data Collection:

 Primary source:

Marketing personnel and HR personnel of concerned locations were


approached to obtain the information. It is collected by Questionnaire and
Personal Interviews at Hub’s and Outlets Bahadurgarh, Hisar

 Secondary source:

Internet, Articles from various newspapers and magazines., Company


brochures, literature and pamphlets. Research Methodology is a way to
systematically solve the problems.

(2)Research Approaches

a) Survey: Survey is an effective way of gathering information for


any kind of research. During the information, same respondents
were fully cooperative and some were indifferent.

b) Observation: Observation is done by only observing the


respondent behavior.In this research observation is done along with
the survey.

c) Unstructured Interview: Unstructured Interview also takes place


during the survey with many of the respondents.
(3) RESEARCH INSTRUMENT
Structured Instrument

QUESTIONNAIRE
A questionnaire consists of a number of questions printed in a definite order on a
form or a set of forms. . A specimen of the same has been placed in the project
report. 30 copies of the questionnaire were circulated among different groups of
people including under graduate, graduate, post graduate etc. Due to large strength
of people, the respondents were selected on the sample basis..

MAIN ASPECTS OF QUESTIONNAIRE


a) Structured questionnaire
b) Clear and smooth moving sequence of questions
c) Simple & easy language
d) Relevant questions
All the personal details were kept confidential. At attempt was made to include
only those questionnaires which were complete in all respects. The questionnaire
was of structured type. It contained all closed ended type questions so that all
classes of the employee find it convenient to spare sometime for filling up these.

(4) SAMPLING PLAN

 Sampling—Convenience Sampling to collect data

 Sample size – 60 people

 Sample kind – Customer & Distributor’s, Employees.

SAMPLING UNIT
The elementary units or the cluster of such units may from the basis of sampling
process. In this case each customer is our sampling unit.

TECHNIQUES OF SAMPLING
Convenience sampling was the technique adopted for sampling.

ANALYSIS OF INFORMATION
The information was analysed with the help of pie-charts to reach at conclusion.
For that editing, tabulation and interpretation of data was done.
 Editing
It involves a careful scrutiny of the completed questionnaires. It is the
process of examining the collected raw data to detect errors and omissions
to correct these when possible.
 Tabulation
It involves arranging the data in concise and logical order. It involves
summarizing raw data and displaying the same in compact form.
 Interpretation
It involves drawing the ultimate inferences and reaching to the
conclusions.
1.6 STRUCTURE OF THE STUDY

It is very important for a researcher to make the structure before starting a


research, as it determines the boundaries with in which researcher has to work. As
the study is related to electronic product so, the structure of the study revolves
around the branded electronic products who offer facilities. features in this
sequence:-

 To study the perception and awareness of customers towards services.


 Studying benefits and shortcomings of all facilities.
 Collecting primary data through Questionnaire and secondary data through
the websites, journals, magazines etc.
 To analysis the data through Analytical tools such as pie charts and bar
diagrams.
 To find out the customer preferences regarding facilities and the impact of
the branded electronic product in the end user.
2.1 REVIEW OF LITERATURE
Since the development of brand equity in 1980’s, there have been rapid
developments in the subject. This is due to the fact that branding has been
recognized as an important factor for the success of a firm especially in a very
competitive business environment.

In the literatures, different definitions of brand equity have been proposed.


According to Park and Srinivasan (1994), brand equity has no acceptable
definition. Farquhar (1989) defined brand equity as the value which the brand
adds to the product. Similar definitions were provided by researchers such as
Aaker 1991, Keller 1993, Leuthesser 1998, Yoo and Donthun 2001.

Keller (1993 p.8) sees brand equity as “the differential effect of a brand
knowledge on consumer response to the marketing of a brand”. This is based on
the assumption that the power of a brand lies on what have been learned, heard,
seen and felt by the customer about the brand over time. Aaker (1991,p.15)
provided the most precise definition of brand equity, he defined brand equity “as a
set of brand assets and liabilities linked to a brand, its name and symbol, that add
to or subtract from the value provided by a product or service to a firm and/or to
that firm’s customers”.

Simon and Sullivian (1993) used the word “incremental utility” to refer to brand
equity. Park and Srinivasan (1994) refer to brand equity as the distinction
between the overall brand preference and the multi attribute preference depending
on the objectively measured attribute level.

Agarwal and Rao (1996)

also refer to brand equity as the total quality and choice intention. From the above
it is clear that brand equity is viewed in different ways by different researchers.In
other word, brand equity can be said to be any asset or liability connected to a
brand name that adds or subtract value to a product.The definition of brand equity
can be widely classified into three perspectives i.e. it could be based on financial
perspective which stress the value of a brand to a firm, customer perspective
which sees brand equity as the value of a brand to consumers and a combination
of the two. Our present study will focus on consumers based perception.
Consumer based brand equity can be divided into consumer perception i.e. (brand
awareness, perceived quality, brand association) and consumers behaviours (brand
loyalty and willingness to pay a high

Despite the large number of alternative proposed in the literature, no single


measure is ideal. There is no concession on the strengths or weakness of each.
Simon and Sullivan (1993) claim that the best method for measuring brand
equity depends on the objective market based data which give room for
comparison overtime and across firm. According to them, using preferences and
consumers attitude is wrong as a result of their individual subjectivity. Farquhar
1989 and Criminis (1992) stated that some marketers also concluded that while
brands do add values to various components, it is the consumers who first
determine brand equity.
Schmitt (1999) said that a brand should not just be an identifier, he went further
to say that a good image and name is insufficient; delivered experience is also
important. Schmitt (1999) recommended two ways to branding:

• The brand has to be viewed as an identifier where the logo, slogan, names
forms a particular image and awareness for the consumer.
• The brand has to be viewed as an experience provider where the logo,
slogan, names, event and contacts by consumer provides consumers
affective, sensory, lifestyle and create relation with the brand.

Conceptualization of consumer based- brand equity


Different conceptualisations of brand equity have been measured by various
researchers. Aaker (1991) view brand equity as a multidimensional concept
which is made up of perceived qualities, brand loyalty, brand awareness, brand
association and other propriety assets. According to him, Brand loyalty has to do
with the level of devotion a consumer has to a brand. Brand awareness has to do
with the ability of a potential buyer to identify a brand among a product category.
Perceived quality deals with the consumer’s perception of the brands total quality
or superiority. Brand association is anything that is connected in a consumer’s
memory of a brand. The other proprietary brand asset has to do with patents and
trademarks.

A similar conceptualization was proposed by Keller (1993). According to Keller


(1993), consumer based brand equity consist of two dimensions, brand knowledge
and brand awareness. Cob-walgren et al (1995) based their study on customer
based perceptual measure of brand equity. Their study adopted three of Aaker
(1991) perceptual component of brand equity i.e. brand awareness, brand
association and perceived quality. They tested whether brand equity has an affect
on

• Brand perception,

• Intention

• Attitude

Low and lamb Jr (2000) and Prasad and Dev (2000) also adopted four of
Aaker (1991) component i.e.

• Brand awareness

• Perceived quality

• Brand loyalty

• Brand association.

Therefore, for the purpose of our study, customer based brand equity will be based
on Aaker (1991 1996) conceptualization i.e. brand awareness, brand loyalty,
perceived quality and brand association. Brand association here is referred to as
brand image i.e. the set of associations that are connected to the brand which are
easily retained in customer’s memory.

Aaker (1991 2002) classified loyalty as follows:

• Non- customer: these are people who buy the brands of competitors.

• Price switcher: these are the once that are sensitive to price.
• Passive loyal: these once are purchase brand/product as a result of habit
rather that reason.

• Fence sitters: are those that are indifferent between several brands.

• Committed: are those who are honestly loyal to the brand.

Attitude toward the Web Site and Brand Choice

Analogous to the well-accepted definition of attitude toward the Ad (Aad), a


"predisposition to respond in a favorable or unfavorable manner to a particular
advertising stimulus during a particular exposure situation" (MacKenzie, Lutz, &
Belch, 1986, p. 130), Chen and Wells (1999, p. 28) defined attitude toward the
Web site (Ast) as a "predisposition to respond favorably or unfavorably to Web
content in natural exposure situations." Their examination of differences among
Web sites that scored high, medium and low on the measurement of Ast found that
a high Ast score could be from many different underlying perceptual dimensions
such as entertainment, informativeness, and organization.

A review of the literature reveals that research studies examining this relatively
new construct, Ast, have focused on the role of Web sites as an advertising
medium (Bruner & Kumar, 2000; Poh & Adam, 2002; Stevenson, Bruner, &
Kumar, 2000). In an effort to test whether the relationship between Aad, brand
attitude and purchase intent holds even in an online context, these studies
examined the association of Ast with Aad from the site, attention to the ad, brand
attitude and purchase intent. Although more rigorous testing is needed to
understand the relationships among these constructs on the Web, past research
suggests that, if a Web site is well-liked, some visitors to the Web site may be
more receptive to the Web site's contents, including its advertisements (Poh &
Adam, 2002).

The primary research issue in this study centers on how attitude toward the Web
site influences brand choice. Even though judgment (constructing an overall
evaluation of an alternative) and choice (choosing one alternative from a set) have
not always been clearly distinguished, there are sufficient processing differences
between judgment and choice that call for caution in accepting Ast - judgment
(e.g., attitudes and intentions) results as indicative of the Ast - choice.

With these possible processing differences between judgment and choice, it is


likely that consumers could choose without completely processing all brand
information or forming overall evaluations (Biehal et al. 1992). That is, they may
make choices without differentiating between brands on the basis of brand attitude
or even without ever forming an overall brand attitude.

These possible differences between judgment and choice may have important
implications for understanding the role of Ast in brand choice. That is, used as a
cue in differentiating between brands, Ast may have a direct (separate from the
effect of brand attitude on brand choice) effect on brand choice. Moreover, this
direct, separate, effect of Ast on brand choice may be expected to increase in the
online shopping environment. Shoppers appear to be attracted to the Web because
of the ease with which they can find products with detailed information and the
variety of choices offered (Ward & Lee, 1999).

While very few research studies have examined the effects of response mode in
the context of marketing research, existing research regarding Aad may provide
some indication on what to expect. In general, most research focusing on the role
of Aad in determining ad outcomes has dealt with how Aad affects brand cognition,
brand attitude, and purchase intention (e.g., Burke & Edell, 1989; MacKenzie,
Lutz, & Belch, 1986; Miniard, Bhatla, & Rose, 1990). That is, most of the
research interest in Aad as an indicator of advertising effectiveness has focused on
how Aad affects consumer judgment, rather than consumer choice.

Attitude toward (5-point scale anchored by "Definitely Disagree" and "Definitely


the Web site Agree")
(Chen & Wells,
1. This Web site makes it easy for me to build a relationship with this
1999)
company.
2. I would like to visit this Web site again in the future.
3. I am satisfied with the service provided by this Web site.
4. I feel comfortable in surfing this Web site.
5. I feel surfing this Web site is a good way to spend my time.
6. This site is for a brand that I am familiar with.
7. I've visited this Web site before.
8. Compared with other Web sites, I would rate this one as (5-point
scale anchored by "One of the worst" and "One of the best")

Relationship between attitude toward the brand and consumer


confidence

Relationship between attitude toward the brand and consumer confidence

Event study procedure

Event study methodology measures the stock price reaction to an unanticipated


announcement of an event. Event studies are used to test that the market
incorporates this new information efficiently and to examine the impact of the
event on the wealth of the firm's stock holders (Binder, 1998). The premise
underlying the methodology is the efficient market hypothesis. . Abnormal returns
occur when the market perceives that the firm's announcement or "event" will
have a positive (or negative) impact on the firm's future cash flows, resulting in
immediate stock price increases (decreases). The mathematical calculations
required to implement an event study are articulated comprehensively in
numerous publications (see Kritzman, 1994; MacKinlay, 1997; McWilliams
and Siegel, 1997; Srinivasan and Bharadwaj, 2004). Consequently, only a
summary of the five key steps are included here. Three pieces of information are
required to undertake an event study--the names of :

• Stock-listed firms
• The event dates in relation to the announcement of interest
• The relevant stock prices.

Step 1: Identification of the event of interest

An appropriate event is one that is likely to have a financial impact on the firm, is
unanticipated by the market and provides new information to the market
(McWilliams and Siegel, 1997). In marketing studies, events might include the
recall of a faulty product, the initial introduction of environmentally friendly
products, or the announcement of a firm's intention to sponsor the Olympic
Games. Each event has the potential to have an impact on a firm's daily stock
price. The second issue concerns what specific dates to examine for stock price
changes. If a product is recalled suddenly, the window of interest is likely to be
very short, such as the day of the recall announcement and the day following. In
addition, identifying the exact date of the announcement's release to the public can
be complicated. For example, investors might be privy to advance information,
announcements might be made over a weekend when the stock exchange is
closed, or announcements may be deliberately leaked to the press. The standard
approach is to examine the days either side of the official announcement date.
Some researchers (e.g. Clark, Cornwell, and Pruitt, 2002) verify the release date
by searching computerized newsprint databases such as Lexis-Nexis or Factiva for
the very first public announcement of the information.

Step 2: Definition of the event criteria

Event studies often examine variables such as firm size, industry type, and
investment amount. Again, these require a sound theoretical rationale for their
inclusion in the study. If the focus, for example, is on new drugs issued by the
pharmaceutical industry, the focus of attention is likely to be solely on the
pharmaceutical industry. If the scope is broader, for example corporate
sponsorship of the Olympic Games, a cross-section of firms and industries is more
likely to be examined.

Step 3: Calculation of normal and abnormal returns

To measure the impact of an event on shareholder value, the difference between a


firm's normal everyday returns and the abnormal returns experienced around the
event date are calculated. This figure is achieved by computing the daily (or
cumulative) abnormal returns accrued during the event window minus the
expected normal returns as if no such event had occurred. Two main approaches
to model the normal returns are used: the constant mean return model, and the
market model (see MacKinlay, 1997; McWilliams and Siegel, 1997; Srinivasan
and Bharadwaj, 2004). The constant mean return model is based on the notion that
the mean return of a given stock is constant over time. The market model assumes
a linear relationship between the return of the overall market portfolio and the
individual stock's return. Calculation of the market portfolio is often based on a
leading broad-based stock index such as Standard and Poor's (S&P) 500 index, the
CRSP value-weighted index, or the CRSP equal-weighted index (Srinivasan and
Bharadwaj, 2004).

Step 4: Estimation of the normal performance model

While the event window used to calculate the abnormal returns focuses on the
days when information related to the event is most likely to be released, the
estimation window used to calculate the normal performance model, on the other
hand, focuses on "normal" trading days, generally a period well in advance of
information about the event being released. Typically, estimation windows are
quite large (around 250-600 days stock market trading days) and are separated
from the event window by a significant number of days (45-90).
Step 5: Statistical calculations and hypothesis testing

Having determined the parameters for estimating the normal performance model,
the abnormal returns are calculated and tested for significance. To explore the data
further, abnormal returns can be aggregated over time for an individual stock and
also across firms and over time (see Srinivasan and Bharadwaj, 2004). Findings
are presented as mean abnormal returns and mean cumulative abnormal returns
expressed in percentages and direction of change (positive or negative). Where
abnormal returns are particularly dramatic, the dollar impact or net present value
may be calculated to illustrate the practical significance of the findings (e.g. Pruitt
et al., 2004). Test statistics in event studies are quite sensitive to outliers. The
impact of any one firm's returns on the sample statistic can be magnified
particularly when the study is based on a small sample of events.
3.1 INDUSTRY PROFILE OF ELECTRONIC AREA

SAMSUNG
Occupational Employment Statistics
Occupational Employment and Wages, May 2007 49-2097
Electronic Home Entertainment Equipment Installers and
Repairers Repair, adjust, or install audio or television
receivers, stereo systems, camcorders, video systems
National estimates for this occupation
Industry profile for this occupation
State profile for this occupation
Metropolitan area profile for this occupation
Industries with the highest published employment and wages for this occupation
are provided. For a list of all industries with employment in this occupation, see
the Create Customized Tables function.

Industries with the highest levels of employment in this occupation:

Hourly Annual mean


Industry Employment
mean wage wage
Electronics and Appliance Stores 13,610 $15.71 $32,680
Electronic and Precision Equipment
6,680 $15.58 $32,400
Repair and Maintenance
Cable and Other Program Distribution 5,390 $15.53 $32,310
Building Equipment Contractors 5,300 $16.78 $34,900
Electrical and Electronic Goods
960 $18.74 $38,970
Merchant Wholesalers
Top paying industries for this occupation:

Hourly Annual
Industry Employment
mean wage mean wage
Local Government (OES designation) 90 $22.61 $47,030
Satellite Telecommunications 270 $20.28 $42,180
State Government (OES designation) 70 $19.50 $40,550
Wholesale Electronic Markets and
(8) $19.17 $39,870
Agents and Brokers
Wireless Telecommunications Carriers
(8) $19.15 $39,830
(except Satellite)

Wages estimate
(1) Estimates for detailed occupations do not sum to the totals because the totals
include occupations not shown separately. Estimates do not include self-employed
workers.

(2) Annual wages have been calculated by multiplying the hourly mean wage by a
"year-round, full-time" hours figure of 2,080 hours; for those occupations where
there is not an hourly mean wage published, the annual wage has been directly
calculated from the reported survey data.

(3) The relative standard error (RSE) is a measure of the reliability of a survey
statistic. The smaller the relative standard error, the more precise the estimate.

(4) Estimate not released.


PROFILE OF SAMSUNG
Company Profile From its inception as a small export
business in Taegu, Korea, SAMSUNG
has grown to become one of the world's
leading electronics companies,
specializing in digital appliances and
Samsung India Electronics Ltd
media, semiconductors, memory, and
system integration. Today SAMSUNG's
Samsung India is the hub for
innovative and top quality products and
Samsung’s South West Asia Regional
processes are world recognized. This
operations. The South West Asia
timeline captures the major milestones in
Regional Headquarters looks after the
SAMSUNG's history, showing how the
Samsung business in Nepal, Sri Lanka,
company expanded its product lines and
Bangladesh, Maldives and Bhutan
reach, grew its revenue and market
besides India. Samsung India which
share, and has followed its mission of
commenced its operations in India in
making life better for consumers around
December 1995, today enjoys a sales
the world.
turnover of over US$ 1Bn in just a
decade of operations in the country.
2000-Present Pioneering the Digital Age

Headquartered in NewThe
Delhi, Samsung
digital age has brought revolutionary change – and opportunity – to global
India has a networkbusiness,
of 19 Branch
and SAMSUNG has responded with advanced techno-logies,
Offices located all over the country.
competitive products, and constant innovation.
The Samsung manufacturing complex At SAMSUNG, we see every challenge
housing manufacturing facilities for as an opportunity and believe we are
Colour Televisions, Colour Monitors, perfectly positioned as one of the world's
Refrigerators and Washing Machines is recognized leaders in the digital
located at Noida, near Delhi. Samsung technology industry.
‘Made in India’ products like Colour
Televisions, Colour Monitors and Our commitment to being the world's
Refrigerators are being exported to best has won us the No.1 global market
Middle East, CIS and SAARC share for 13 of our products, including
countries from its Noida manufacturing semiconductors, TFT-LCDs, monitors
complex. Samsung India currently and CDMA mobile phones. Looking
employs over 1600 employees, with forward, we're making historic advances
around 18% of its employees working
in Research & Development.
in research and development of our overall semiconductor line, including flash
memory and non-memory, custom semiconductors, DRAM and SRAM, as well as
producing best-in-class LCDs, mobile phones, digital appliances, and more.

2000-Present Pioneering the Digital Age


• Samsung takes No. 1 spot in U.S. cellphone market

2008
• No.1 worldwide market share position for TVs achieved for the 9th
quarter in a row
• No.1 worldwide market share position for TVs achieved for the
seventh quarter in a row
• BlackJack bestowed the Best Smart Phone award at CTIA in the U.S.
2007

• Attained No.1 worldwide market share position for LCD for the sixth
year in a row
• Developed the world's first real double-sided LCD
• Developed the worlds' first 50nm 1G DRAM
• Unveiled 10M pixel camera phone
• Launched "Stealth Vacuum," a vacuum cleaner with the world's
2006
lowest level of noises
• Launched the worlds' first Blu-Ray Disc Player

• Developed 1.72"Super-Reflective LCD Screen


• Developed the largest Flexible LCD Panel
• Ranked 27th in "the World's Most Admired Company" of Fortune

2005
• Released the world's first 7 mega pixel camera phone
• Developed the world's first OLED for 40" TV

• Developed the first-ever speech recognition phone


2004 • Produced the first wrinkle-free steam washer
• Sold more than 20 million cellular phones in the U.S
• Ranked top in mobile phone sales in Russia
• Released new PDP TV featuring the highest contrast ratio in the
world
• Developed a 3rd Generation Optical Blu-Ray Disc Recorder

• Released 46" LCD TV for the first time in the world


• SAMSUNG brand value ranked 25th in the world by Interbrand
• Ranked 5th on the "Most Admired Electronics Company" list
2003 released by the Fortune Magazine

• Released the first HD DVD combo


• Development of the 54"TFT-LCD, the largest digital TV monitor in
the world
• Launches PDP-TV, the slimmest in the world
2002 • Launch of color mobile phones in which the new concept UFB-LCD
is introduced

• Launched new high-definition TFT-LCD color cellular phone


• Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek
• Unveils 16 Chord Progression Melody Phone
• Begins Mass Production of 512Mb Flash Memory Device
2001
• Unveils Industry's First Ultra-Slim Handset

• Develops World's first 40 inch TFT-LCD


• Unveils TFT-LCD with Record-breaking Definition
• Launches PDA phone
• SAMSUNG Olympic Games Phone selected as the official mobile
phone of the Sydney 2000 Olympic Games
2000 • TV Phone and Watch Phone Make Guinness Book of World Records
• Unveils the Worlds Fastest Graphics Memory Chip
• SAMSUNG Electronics and Yahoo! Form Strategic Alliance

Further Reading:

• "A Giant with Wings?" Business Korea, December 1994, pp. 21--23.
• Jameson, Sam, "Samsung Isn't Content to Be a Mere Giant," Los Angeles
Times, July 5, 1990, Sec. D, p. 1.
• Nakarmi, Laxmi, with Kevin Kelly and Larry Armstrong, "Look Out,
World--Samsung Is Coming," Business Week, July 10, 1995, pp. 52--53.
• Ota, Alan K., "Samsung Expands Overseas in Drive to Transform Itself,"
Oregonian, July 2, 1995, Sec. F, p. 9.
• "Samsung Chairman Lee Kun-Hee: A Modern Day Fortuneteller?"
Business Korea, August 1993, pp. 18—19
• . "Samsung Group: Lee Kun-Hee's First Five Years," Business Korea,
December 1992, p. 37.
• "Samsung: Steering a New Course," Business Korea, February 1992, p.
26.
• Selwyn, Michael, and Erwin Shrader, "Samsung Takes On the Giant,"
Asian Business, October 1990, pp. 28--34.
• Sohn, Jie-Ae, "Samsung Group Embracing Breathtaking Changes,"
Business Korea, August 1993, pp. 15—18
• . Steers, Richard M., with Yoo Keun Shin and Gerardo R. Ungson, The
Chaebol, New York: Harper & Row, 1989.
• Tanzer, Andrew, "Samsung of South Korea Marches to Its Own
Drummer," Forbes, May 16, 1988, pp. 84--89.
LG
1947-1959
Birth and establishment of a new era for chemical and electronic industries
LG Group founder In Hwoi,Koo set LG history in motion with the establishment
of the Lak Hui Chemical Industrial Corp. in 1947. During those formative years,
the company emphasized the principle of creating harmony among people. The
employees believed that mutual trust and responsibility were crucial to
accomplishing business objectives.
In 1952, Lak Hui (currently LG Chem) became the first Korean company to enter
the plastics industry. As the company expanded its plastics business, it established
Goldstar Co., Ltd., (currently LG Electronics Inc.) in 1958. In 1959, Goldstar
produced Korea's first radio, opening a new era for the nation's electronics
industry. In the early 1950s, LG had already established the foundation for its two
major sectors-the chemical and electronics businesses-thereby leading the
development of Korea's industries.
History/Corp. Milestone
1958 : GoldStar (today’s LG Electronics) established
1959: Korea’s first radio produced
1962 : Radio exported to the US and Hong Kong as Korea’s first
1965 : Korea’s first refrigerator produced
1966 : Korea’s first black & white TV produced
1968 : Korea’s first air conditioner produced
1969: Korea’s first washing machine produced
1974: GoldStar Communications went public
1977 : Color TV produced
1978 : Exports surpassed US$100 million, a first for Korea’s electronics industry
1980:First EU sales subsidiary in Germany (LGEWG) established
1982:Color TV plant established in the US in Huntsville, Alabama
1984: Sales surpassed 1 trillion Won
1986:European-standard VCR plant established in Germany
1989 :Sales subsidiary and a joint production subsidiary established in Thailand
1990:Ireland-based design technology center established
1993 : With the establishment of Huizhou subsidiary in China(LGEHZ),
marketing in China took full swing
1995:Company name changed to LG Electronics and US-based Zenith acquired
1997 : 40-inch Plasma TV and the world’s first IC set for DTVs developed India
production subsidiary (LGEIL) established
1998: World’s first 60-inch Plasma TV developed
1999 : LG.Philips LCD established
2000: LG Information & Communications merged The world’s first Internet-
enabled refrigerator launched Global sales of refrigerators reached the number one
position
2001: Asynchronous IMT-2000 equipment commercialized The world’s first
Internetenabled washing machine, air conditioner, and microwave oven launched
LG.Philips Displays, a joint venture with Philips established
2002 : Under the LG Holding Company system, the Company spun off to LG
Electronics (LGE)& LG Electronics Investment (LGEI) The first home network
system commercialized in the global market.
2003 : World’s first synchronous-asynchronous IMT-2000 mobile phone
developed The world’s first 76-inch Plasma TV developed CDMA mobile
handsets took the largest share in the US and world CDMA market Launched the
world’s first Super Multi DVD Rewriter
2004
EVSB, the next-generation DTV transmission technology, chosen to be the
US/Canada DTV transmission standard by the US ATSC All-in-one LG 55-inch
LCD TV, the world’s first and largest among LCD
TVs, commercialized The world’s largest and first 71-inch Plasma TV
commercialized The world’s first terrestrial DMB phone developed Developed
Wireless Speaker Home Cinema System.
2005
The world’s first DMB notebook commercialized The world’s slimmest TV
commercialized The world’s largest 102-inch Plasma TV developed LG and
Nortel Networks agreed to establish a joint venture for telecommunication
network equipment Satellite-based DMB phone commercialized The largest share
seized in the global CDMA market.
2006
Launched the LG Shine, the second handset in the Black Label Series Globally
launched the steam washing machine and interactive TV refrigerator Developed
the world's first 100-inch LCD TV Launched the world's largest Full HD 102-inch
Plasma TV (1080p) Developed the world's first dual-format high-definition Disc
Player& Drive.
2007
Launches the industry's first dual-format, high-definition disc player and drive
Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4G-
Enabled technologies with 3G LTE Won contract for GSMA's 3G campaign.
2008
Introduces new global brand identity: "Stylish design and smart technology, in
products that fit our consumer's lives."
VIDEOCON

Today the group operates through 4 key sectors:

Consumer Electronics, Home Appliances & Compressor manufacturing in


India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in


many of our consumer products like Colour Televisions, Washing Machines, Air
Conditioners, Refrigerators, Microwave ovens and many other home appliances,
selling them through a Multi-Brand strategy with the largest sales and service
network in India. Refrigerator manufacturing is further supported by our inhouse
compressor manufacturing technology in Bangalore.

Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Colour
Picture tube manufacturers in the world operating in Italy, Poland and China,
continuing to lead through new innovative technologies like slim CPT, extra slim
CPT and High Definition 16:9 format CPT.
Colour Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high
level of experience and technical expertise operating through Poland and India.
Videocon will leverage on this synergy after the Thomson acquisition to internally
source glass for its CPT manufacturing increasing efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest
operating costs in the world producing 50,000 barrels of oil per day. The group
has ambitious plans for expansion in this sector globally.

Vision & Mission

Videocon’s mission: a reflection of continuity and change


Videocon’s mission expression has been crafted to envelope both extant and
emerging realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing
and inspired thinking about the future.”
A breakdown of the statement above reveals a ‘means and end’ approach, where
the end is articulated at the beginning with the means linked to it.
“To delight and deliver beyond expectation…”: the end
This segment not only underlines the importance of the ultimate goal - customer
satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate
processes and principals, which have contributed to building a robust, dependable
Videocon value chain (‘deliver’). As a result of its focus on developing loyal
customers and reliable associates, Videocon is able to exceed expectations.
“…through ingenious strategy…”: the means
In the cutthroat world of today, it is only by taking recourse to advance planning
and strategy that a business can hope to survive. Although textbook strategy has
its uses, reproducing it in verbatim for the real world would be foolish because of
the absence of textbook conditions. Thus, there is a need for a bounded rationality,
a spontaneity and improvisation that is flexible enough for scenarios both
imaginable and unimaginable. Videocon’s ingenious manoeuvres are actually
flexi-strategy that abstracts from shifting ground conditions and decides game-
plans, or sometimes changes the rules of the game.
“…intrepid entrepreneurship…”: the means
An enterprise with the odds stacked against it makes great business sense. This is
because higher the obstacles, lower the number of players likely to be active in
that field - thus, fetching extraordinary returns. The only requirement is a bold and
confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a
bold and intrepid endeavour that arises from immense faith on the surefooted
competence of the company’s in-house managerial talent.
“…improved technology…”: the means
Technology is no more a premium input; it has become the bare minimum in
recent years. Rapid advances have only fuelled this phenomenon. Videocon is
extremely vigilant in shunting out dated technology and replacing it with the best-
in-class offers of the times.
“…innovative products…”: the means
Product development, innovation and customisation are the tools Videocon uses to
stay ahead of the competition. This is because a continuous stream of innovative
products excites the market and enhances brand recall. A strategy that Videocon
banks on a lot, especially on the domestic front.
“…insightful marketing…”: the means
The market share battle scene has long shifted from technology and processes to
the psyche of the customer. This means that those with deeper insights into the
elusive mind of the buyer are likely to dominate. Videocon is reinforcing
marketing strengths to read better the pulse of the market and help create products
that map perfectly into customer preferences.
“…inspired thinking about the future.”: the means
The future is unpredictable, but not doing anything about it is fraught with grave
risk. Videocon extrapolates future trends on the basis of current changes in
technology and preferences as well as sheer gut feel. Fine-tuned business instincts
are worth their weight in gold, lots of it. The company has perfected its practice
almost into an art form with some calculated gambles like oil and gas proving to
be absolute money-spinners.
Values & Philosophy

Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his
education in Ahmednagar and Pune. He was a successful sugarcane and cotton
cultivator. As a next logical step to vertical integration, he boldly took upon an
entrepreneurial venture by importing machinery from Europe to set up the
Gangapur Sakhar Karkhana (Sugar Mill) in 1955. Those were the times when the
village did not even have electricity. Thus was unleashed an Industrial Revolution.

The die was cast. Over the years, Nandlalji's path-breaking attitude found
expression in a myriad ways, earning him the well-deserved reputation of the
pioneer of industrial activity in Marathwada India.

In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep
into business. Through a technical tie up with Toshiba Corporation of Japan, he
launched India's first world-class color Television: Videocon. Today, Videocon is
household name across the nation- India's No. 1 brand of Consumer Electronics &
Home Appliances, trusted by over 50 million people to improve their quality of
life.

The Late Shri. Nandlal Madhavlal Dhoot


Founder, The Videocon Group
( 26 February 1932 - 26 April 1993 )
A man of Ideas. A man of Substance.
A man of Vision.
CEO

K. R. KIM
Vice Chairman and CEO
Videocon Industries Limited

K R Kim was appointed as Vice Chairman and CEO, Videocon Industries Limited
in 2008. Since then, he has led the company to expand its operations throughout
the country in the Domestic and Global operations of the consumer durables and
infotainment division.

A veteran in the consumer goods industries and the former MD of LG electronics,


K.R Kim, a Law graduate from Seoul National University has been associated for
over 30 years with LG Electronics before joining Videocon. During his tenure he
served at esteemed positions of President and that of a Managing Director.

K.R Kim’s proficient leadership skills, task driven approach and matchless degree
of excellence and discipline has conspicuously carved his identity worldwide.
Moreover, he has been the proud recipient of the ‘Super Achiever’ award from
CETMA (Consumer Electronics and TV Manufacturers Association) for his role
in advancing maturity of India’s Electronics and Durable goods market. He has
also been awarded for Excellence in Corporate Leadership and Entrepreneurial
Spirit established by CNBC – TV 18- by our Honorable Prime Minister Mr.
Manmohan Singh.

.
Research & Development

The company gives utmost importance to the R & D activities, which are carried
out, at in-house R & D center. The company carries on new innovations in product
development, cost reduction, quality improvement, process implementations,
process controls.
1) Specific areas in which R & D is carried out by the company

During the year, the company has carried out Research and Development in
the following areas.

1. Home theaters - High-end models and HTIB M odels.


2. Larger Screen Television i.e. 32 inch and 38inch.
3. True Flat Televisions.
4. Plasma Televisions.
5. Cosmetic design and new out look to the TVs.
6. Manufacturing of components for CTV, Refrigerators and Air
conditioners.
7. Efforts to reduce power consumption of all its final products.
2) Benefits derived as a result of the above R& D.

The company has derived the following benefits as a result of the Research
and Development:

1. Development of new design in product and launch of various new models.


2. Able to compete with the foreign players in the Indian Markets by cost
reductions and offering innovation features and to maintain market
leadership in Television under Videocon umbrella.
3. Increase in Productivity.
4. Reduction in power consumption of some of the products.

3) Future Plans of action

In the coming days company is aiming to achieve development in the


following areas through Research & Development:

1. Manufacturing of components for consumer Electronics Products.


2. Multimedia TV.
3. Plasma Televisions.
4. Launching of New Brands & Sub-brands under Videocon umbrella.
5. Composite Home Entertainment system with internet adaptability.
6. To work on better features, better quality & improved reliability with
reduced/low prices.

Your company always attempts to use the latest and advanced technology in
production process. Keeping pace with the technological developments, the
company keeps on adding sophisticated equipment’s with focus on automation to
minimize manual intervention in the manufacturing process thereby ensuring
quality of the final products.
ONIDA

Company History

To think of the future, you need to think of your past.

It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr.
Vijay Mansukhani started a company called Onida with just a goal of
manufacturing television sets and going beyond convention. By the end of that
year, we started assembling television sets at our factory in Andheri, Mumbai.
With the passage of time, superior products and the combination of a distinctive
voice, a cutting-edge advertising strategy, and purposeful marketing ensured that
Onida became a household name.

Then we asked some more questions:

1. Is there an inherent consumer need that is not being met by the current
products in the market?
2. Is there anything we can significantly add, upon entering the category?
3. Is there something that the other product players have overlooked, which
we can address?

Some of the innovations that surprised the world.


After having established a reputation for being an intelligent and pioneering
innovator in the application of technologies: we were the first to launch the
Webcruiser TV, the world’s first built-in Internet TV which offers the benefits of
a personal computer and a TV, and that too, equipped with a a modem, printer
port and a cordless keyboard with it; the first to launch the ultimate in Flat TV
technology with Onida Black with a high picture clarity with DVMC which
ensures uniform scanning at the centre and corners of the TV screen.
Again, the Onida Twister was the first TV that turned to face the viewer; we were
the first to introduce SRS technology for surround sound in Audioport. In 1999,
we were the first to introduce the pure flat TV in the country. The Candy was the
first instance of any brand providing a multi-coloured cabinet option to its
customers.
It still wasn’t enough.
The common perception was that we were a focused TV manufacturer. But then
with a knack for spotting a gap in the market, we realised that there were
undiscovered needs and wants in other categories of consumer durables as well.
So we recognized latent synergies which enabled us to provide customers with a
wider range of products under the ONIDA brand.
Washing Machines:
In 2003-04 we launched the washing machine with Hydrofall technology which
addressed the need of having a more powerful cleaning system. Then we realised
that people still used their hands for cleaning so we launched the Triomatic
technology which gives the perfect hand wash. Then we realised that people still
keep bending to wash clothes so we launched a washing machine with a higher
and wider vent so you don’t have to bend.
Air conditioners:
With the soaring summer heat, we saw a need for an AC with powerful cooling.
And in addition due to the raising electricity consumption, the need for energy
efficiency as well. Hence, the thought of an ultra slim powerful AC with unique
APM cooling technology that cools even at 48oc and is the most energy efficient
in the country which constantly keeps your electricity bills in check.
DVDs:
With today’s technology boom, there’s a need for a single multimedia interface as
most people now download movies, music and click pictures through mobiles.
Hence the need for USB and card reader. We also saw that most DVDs are rented
hence are scratched. Which is why, we developed a DVD player with USB and
Card Reader which also play scratched discs effortlessly.
Microwave Ovens:
We saw that people used Microwave primarily to heat food and not to cook. We
also noticed that it’s difficult to cook food in a microwave. Especially Indian food.
So to make cooking simpler we introduced 123 Indian autocook menus. So all you
need to make Indian dishes is a finger. We later gave it a sleek, black look with a
mirror finish so that it looks stunning too.
LCDs:
What began as a TV became the window to the future. With the advent of
television’s increasing popularity, there were many players with a wide foray of
our models. To make matters interesting, there were several foreign players with
technology that seemed futuristic and with a sleek look. However we mainly
focused on picture clarity. So instead of just aping what the offering was, we
asked ourselves, ‘Why not give a complete audio / video experience at home as
well?’ And the result was obvious: Our CTV had up to 3500 Watts of sound. This
was our first milestone which others followed. However, this held true twenty
years later as well. LCD technology came in, in a bigger way. Onida once again
took the onus to remind everyone, that sound is equally important to complete the
viewing experience. So we made our Xaria with more than twice the sound output
of other LCDs in the market.
Then later on, we got onto its drawing board a pseudo home theatre with a 5.1
amplifier system and 1000-watt PMPO speakers, thereby putting a theatre’s soul
inside a TVs body.
We took the future by its horns and went on to make India’s first fully developed
indigenised Xaria LCD with more than twice the sound output of other LCDs in
the market.
Mobiles:
With the cellphone market already heavily penetrated, there was a need for a
mobile that could stand apart. So what we sought to do was make every single
Onida Mobile do so much more than what an ordinary cellphone does. So the
moment you turn it on, you would realise that it’s fully-loaded. So many features.
So many things. And so easy. But all these features are there in it for a reason. All
of them to help you do better, enjoy better, listen better, work better or simply talk
better.

Vision and Mission


The core of the thought.

Our Vision
To build a brand around substance. To communicate simple truths that customers
understand. To become a leader in our chosen field and become a globally
recognized, prestigious company through synergistic businesses investment,
differentiation through innovation, passion through empowerment, cost through
economies of scale and world class systems and procedures that bring in a sense
of delight to our stakeholders.

Our Mission
To benefit society at large through Innovation, Quality, Productivity, Human
Development and Growth, and to generate sustained surpluses, always striving for
excellence, within the framework of law and in nothing but the truth in which we
base our every action

Corporate Philosophy
To think about you, we first think about everything.

Commitment to society/nation
We respect the society and the environment to which we belong and will
contribute to its progress and welfare.

Passion for quality


Strive to create products with substance that are the best in class. Never
compromise on quality. Give our customer better value-for-money, always.

Fairness
We stand for truth, fairness and justice in all our business and individual dealing -
without this spirit, no man can win respect no matter how capable he may be.

People - our greatest assets


We value good people. It is our responsibility to create actively and constantly an
environment that supports them to grow and flourish.

Harmony and co-operation


Alone we are weak. Together we are strong. Work together as a family in mutual
trust and responsibility.

Courtesy and Humility


Respect the right of others. Be cordial, modest and humble. Praise and encourage
freely.
Strive for continuous improvement ( KAIZEN )
Seek and find in every action a way to do things better, always better.

Growth
Growth is vital. Increasingly seek out ways and means to constantly move
forward.

Innovation
Progress by adjusting to ever-changing environment around us. As the world
moves forward, we must keep-in-step.

Gratitude
Always repay the kindness of our customers, associates, community, nation and
friends worldwide with gratitude.

Milestone

1981 : MIRC Electronics Pvt. Ltd. was established

1982 : CTV production started at Nand Bhavan, Mumbai

1983 : Technical collaboration with JVC, Japan for CTV

1985 : Established in-house R&D wing

1986 : Production expanded and moved to a new factory at Kalina

1987 : Moved to our own factory building "ONIDA HOUSE" : Iwai, Speaker
plant commences its operation

1990 : Tuner plant commences operation

1991 : Akasaka, PCB plant commences its operation : New CTV manufacturing
plant at Vasai commences operations

1992 : Crossed 1 million CTV sales

1994 : Moved to a fully automated Plant of 600K CTV per year at Wada
1994 : Moved to a fully automated Plant of 600K CTV per year at Wada

1995 : ISO 9001 certification obtained from BVQI

1998 : Award for excellence in electronics by ministry of IT

1999 : First in India to develop Internet enabled CTV

2000 : Launched the KY Thunder, Profile Series

2001 : AV Max award for best CTV


: Launched Onida Black, flat CTV range
: Multimedia projectors launched
: Commenced project to expand CTV capacity to 1 million

2002 : Completed plant expansion project to increase capacity from 600K CTVs
to 1.2 million CTV's per year.
: Launched 'KY Theatre' with circle surround sound, the first complete Home
Theatre package
: Launch of 'Igo'- the economy brand
: Launched VCD player

2003 : Launched world's first LCD remote 'i-Control'


: Launched Air-conditioners
: Launched Rear Projection TV, Plasma TV & DVD Players
: Launched Fully Automatic front loading Washing Machines
: A MIRC product is getting sold every 27 seconds
: Operations started in Russia

2004 : Launch of the 'Oxygen Series' CTV


: Crossed Sale of 250,000 CTV's in October month
: Launch of Microwave Owens
: Mr.Gulu Mirchandani, CMD awarded 'Man of Electronics for the year' by
CETMA

2004- 05 : Achieved 1.20 million CTV sales


2005 : Launch of 'POISON' range of CTV's

Management
Meet the thinkers.

Mr. Gulu Mirchandani (Chairman & Managing Director)


Mr. Vijay Mansukhani (Managing Director)
Mr. G. Sundar (Chief Executive Officer)
Mr. Satrajit Ray (Chief Financial Officer)
Mr. Vikas Shirodkar (Chief People Officer)
Mr. C. R Talati (Vice President - Operations)
Mr. Sriram Krishnamurthy (Vice President - Marketing, Sales &
Service)

Manufacturing Plant

Onida's principal assembly operations are conducted in a state-of-the-art plant at


Wada, 80 kms from Mumbai. The plant in Delhi caters to the production
requirements for the Northern region. Our network of 33 branch offices, 208
Customer Relation Center's and 41 depots across India ensuring that Onida
products are available on retail shelves.

At Onida, we recognize that we can strengthen our competitive edge if we


produce as much as possible from a given capacity at the lowest possible cost. We
reduced the time it takes for a single color television to be produced from 20
seconds to 12 seconds and increased the capacity from 0.5 million to 1.2 million
sets during the year under review.

In 2002-03, using the existing infrastructure, a decisive step forward was taken by
entering into the manufacture of washing machines and air conditioners at the
Wada factory.

Quality Assurance

Thinking of your smiles. Thinking of quality,

Quality for us isn’t just a norm; it’s a way of life. We realised that we have to
accept and increase our levels of quality at every single stage even before the
product is designed, even after the product is sold; only then do we believe that
it’s been worthwhile. So we treat quality as relentless pursuit for perfection, by
being a stickler towards non-conformism and raising the bar. Finally only after
there’s a smile of satisfaction that appears on your face, there’s one on ours as
well.

To give attention to you, we give attention to every detail.

Before we start work on our quality, we look at what is it that others are lacking.
We then disassemble the unit and work backwards, trying to figure out how we
can make it better. Because we believe that the quality of any product is a result of
good product design, good raw material and components and world-class
production process. Any new product designed by Onida R&D goes through a set
of stringent quality test. But it’s not just products but also their performance and at
the same time adhering to tests and checks globally as well as locally.

To name a few, we do the following tests: Dry Heat Test at 55oC. Cold Test at
-10oC. Humidity Test at 95% Relative Humidity. 1000 hours at 40oC. Bump,
vibration and drop tests. Voltage tests.

We even ensure high standards of quality on all critical components like tuners,
PCBs and loudspeakers are produced in house or procured from group companies.
All vendors have to ensure that above the industry norms, they also meet the
Onida Standard. No products get despatched without the QA clearance.

Quality. All the way.

Our quality standards don’t just end when the products leave the shop floor but
continue even after the product is sold. All customer complaints are handled by a
team of service personnel stationed all over India. In fact, there is a weekly
interaction between Service, Marketing, R&D, Engineering and Quality to address
all Field related quality issues. And what’s more, we have one of the lowest Field
Failure Rate in the Consumer Electronics and Appliance segment in India.

On our pursuit of excellence in quality, we have travelled from Quality


Circle, Total Quality Management to Six Sigma Methodology. Non-conformance
that used to be measured in percentages previously are currently measured in Parts
Per Million (PPM). Apart from ISO 9001 QMS certification, we are also certified
for ISO 14001, Environmental Management System.

So as you can see for us quality isn’t just a department but rooted in every single
thing that we do.

Research & Development

Researching your minds.

We believe that before we redefine technology, we should relook the way the
department that researches technology.

For only with a strong backing can your dreams, your desires take a solid shape
with a stunning design. We believe that Research and Development isn’t about
technology but a lot neanderthal than that: it’s about experience. For there’s no
use of complicated and microbial technology working for you, if it’s not simple
or easy to use; for there’s no use of superb design, if the quality inside isn’t as
promising. And that’s what our R&D department attempts to do every single day.
Make it just a little bit better.
Experience our thoughts.

Our R&D department doesn’t just work towards giving you a better and more
useful product. That’s just the tip of the iceberg.
It attempts to add experience and value to the consumers at every stage of the
product. For instance, when it comes to television, it isn’t just about better picture
or better sound but also about the remote that you use. Even when it comes to
washing machines, it isn’t just about better or cleaning washing but about how do
you put your clothes in. We do the same thing for every single of our products. So
that when you use an Onida product, satisfaction comes automatically.

A little research. A lot of thoughts.

Here’s a few example what our R&D unearthed across all categories:

KY Thunder Case Study

“A small change that was heard across the country.”


The background:

The competition in televisions was fierce. But while people upgraded from Black
and White sets to colour to stunning picture clarity, no one focused on giving the
complete audio/video experience.

The task:

The simple reason why it was so because there was no more room for fitting
speakers on the TV. So instead of putting everything inside, the R&D team simply
fitted the sound behind the screen thereby giving a superb surround sound effect.
The result:

The rest obviously is history. It caught on faster than wildfire, everybody wanted
to lay their hands on one, including the competition. The competition had to get
technicians from abroad to understand what went through it and by the time they
could copy the same, the market was already won. So much so that the brand
name became synonymous with the category itself.

DVD Case Study “Everything begins with a scratch. Even the best.”
The background:

The market was filled with VCD players with DVD soon catching up to them. So
instead of studying the DVD player, we looked at the DVD. What we observed
was that people preferred to rent movies from video libraries to play them. And as
a result, these discs had scratches and were used often.

The task:

We realised that the current discs fail to the challenge and then gave them a
powerful laser that could read between scratched layers and reads beneath the
layers of data.

The result:

The sheer advantage that we had was being the first mover. We gave consumers
the freedom from scratched discs. The technology was a watershed turn for
ONIDA DVDs, as it resulted in 16% market share and placed us as No. 1. Since
then we have been considered as one of the market leaders, innovators and a
technology company continuously excelling in research and technology.

Washing Machine Case Study “Why bend over backwards to get a good
wash.”
The background:

There were more than enough washing machines to give you a better wash. So
how do you ensure that you get the cleanest and most powerful wash possible in
the easiest manner?

The task:

We set forth by making a front-loader with a wider and higher front opening
which ensured that you get the best possible wash without you having to bend.
Microwave Case Study “Push-button-cook.”

The background:

We saw that consumers used microwaves primarily to heat food and not to cook.
We also noticed that it’s very cumbersome to cook food in a microwave.
Especially Indian food at that. So we had change the way people looked at
microwaves.

The task:

In order to make cooking simpler we introduced 123 Indian autocook menus. So


all you need to make Indian dishes is a finger to cook any form of Indian dishes
you preferred. We then later gave it a sleek, black look with a mirror finish so that
it looks stunning as well.

Exports
Thinking globally.

Onida with its Sales & Marketing office in Dubai reported a 215 percent export
growth in two years, setting the base for an increased robust international presence.
The shipments to the Gulf contribute almost 65 percent of Onida's export revenue
while shipments to the fast growing East African market (Uganda, Tanzania,
Kenya and Ethiopia) and the SAARC countries accounted for 16 percent of export
revenues.

Home Theatres and DVD players have been introduced in these markets to
strengthen the Onida brand presence. These products have customised models with
local language user interfaces in line with its geographies of focus. Onida models
are now available with Arabic, Persian and Russian OSD (menu).
Onida products have been favored by hypermarkets like Lu Lu Centres,
Carrefours, Geants and Dasmans in GCC countries.

In addition to the Gulf countries ONIDA has now a sizeable presence in Russia,
Ukraine and neighbouring CIS countries. ONIDA has already crossed 1,00,000
mark in CTV exports to Russia in a span of just 2 years and plans to grow in these
markets at a much faster pace.

Apart from Television Exports to Russia, Onida also exports DVD Players and
high end LCD Televisions.

Our Export Plans

Onida plans to expand its international presence by:


Developing a production facility in the CIS countries/North Africa.
Launching Home Theatre Systems, Microwave Ovens, Vacuum Cleaners and
Washing machines in the Other than GCC in the near future.
Launching the "Onida" range in Nigeria, Yemen and Iran/ IRAQ and SAARC
countries as well.
WHIRLPOOL

Innovation: Unique and compelling solutions valued by our customers and


aligned to our brands create competitive advantage and differentiated shareholder
value.

Operational Excellence (OPEX): A methodology for solving problems &


continuous improvement of products & processes through pursuit, acquisition, and
utilization of knowledge using critical thought and planned experimentation helps
us achieve operational excellence.

Customer Excellence: Excelling the customer expectation from the company, its
brands, products and services are a three-step process. The three steps are: Know a
customer, Be a customer, Serve a customer.

Knowing a customer helps us know who our customers are, how to treat them,
how we add value, and what the drivers of brand loyalty are. This information is
gathered from the customer's data base history. This way we are better able to
customize products for them and recommend the right product to solve problems.
Being a customer is important to share customer knowledge and insights, drive
actions based on customer insights, be passionate about our brands and customer
loyalty and provide a positive voice for our brands. We show empathy for
customers and seek to resolve their problems by creating consistent customer
touch-points, with our endeavor always being to provide unique solutions for the
customer.

Whirlpool is transforming into a completely customer-centered company where


the customer lies in the core of every of our functions. This focus has arrived as
direct consequence of our core competency of customer excellence. It allows us to
build Customer Loyalty. The transformation is made up of five elements:

Market leadership through customer loyalty


Innovation
Diversity with inclusion and core competencies
Passion for customer excellence
Operational excellence

The elements of the transformation hold the promise of making Whirlpool a


growing company and thereby increasing value for our shareholders. The five
elements are the basis for describing our strategy internally and guide the
development of our plans and initiatives.

Whirlpool has swiftly moved from being a World Class Manufacturer to a World
Class Marketer using the brand-building framework. We are dedicated to creating
unique branded solutions that build customer loyalty and achieve brand
excellence.

Vision & Mission

Our pervasive vision, “Every Home, everywhere, with pride, passion and
performance”, rests on the pillars of innovation, operational excellence, customer-
centric approach and diversified talent. These are embedded within our business
goals, strategy, processes and work culture.

Be it our products that are the result of innovation and operational excellence to
meet every need of our consumers or the people behind these products that come
from a wide spectrum of backgrounds, everything we do features a distinct
Whirlpool way

Whirlpool India

Whirlpool, right from its inception 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, has always set industry
milestones and benchmarks. 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. The company
boasts of resources and capabilities beyond achievable feat of any other in the
industry.
Whirlpool initiated its international expansion in 1958 by entering Brazil.
However, it emerged as truly global leader in the1980's. This encouraging trend
brought the company to India in the late 1980s. It forayed into the market under a
joint venture with TVS group and established the first Whirlpool manufacturing
facility in Pondicherry.

Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry
into Indian refrigerator market as well. The same year also saw acquisition of
major share in TVS joint venture and later in 1996, Kelvinator and TVS
acquisitions were merged to create Indian home appliance leader of the future,
Whirlpool India. This expanded the company's portfolio in the Indian
subcontinent to washing machines, refrigerator, microwave ovens and air
conditioners.

Today, Whirlpool is the most recognized brand in home appliances in India and
holds a market share of over 25%. The company owns three state-of-the-art
manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these
manufacturing set-ups features an infrastructure that is witness of Whirlpool's
commitment to consumer interests and advanced technology.

In the year ending in March '09, the annual turnover of the company for its Indian
enterprise was Rs.1,719 Crores.

The company's brand and image speaks of its commitment to the homemaker
from every aspect of its functioning. It has derived its functioning principles out of
an undaunted partnership with the homemakers and thus a slogan of “You and
whirlpool, the world's best homemaker” dots its promotional campaigns. The
products are engineered to suit the requirements of ‘smart, confident and in-
control' homemaker who knows what she wants. The product range is designed in
a way that it employs unique technology and offers consumer relevant solutions

Media Room

WHIRLPOOL INDIA: YOUR MAGIC IN HOMEMAKING


Whirlpool Corporation is a global manufacturer and marketer of major home
appliances, with annual sales of more than $19 billion (for year 2005), 80,000
employees and nearly 60 manufacturing and technology centers around the globe.
Whirlpool of India’s net sales for the period April 2005 -March 2006 stood at Rs.
1274 crores with an operating profit of Rs. 14.57 crores. Company witnessed a
growth of 25% (Approx.) in net sales over the same period last year. The company
manufactures in 13 countries and markets products in approximately 170 countries
under 11 major brand names such as Whirlpool, Maytag KitchenAid, Roper,
Estate, Bauknecht, Laden and Ignis.

Whirlpool has sustained its leadership position within the global appliance
industry, thanks to its innovation led approach and a keen understanding of the
customers' needs, a firm commitment to addressing those requirements through
company’s superb brands, products and services. Whirlpool Corporation entered
India in the late ‘80’s and today has grown to become one of the leading
manufacturers and marketers of major home appliances in India.

Whirlpool’s international outlook was initiated in 1958 when it entered Brazil, but
it was the ‘80’s that marked the beginning of Whirlpool’s aggressive strategy to
be a world-wide competitor. India was identified as a growth market in late ‘80’s
when Whirlpool Corporation entered into a joint venture agreement with TVS
group to produce automatic washers at a plant set up in Pondicherry. A modest
beginning was made to establish the Whirlpool brand in India. In 1995 Whirlpool
Corporation acquired Kelvinator of India Limited and entered into the
Refrigerator market in India. In late 1995 majority ownership was gained in the
TVS joint venture and the two entities were merged to form Whirlpool of India
Limited in 1996.

Whirlpool’s aggressive business approach delivered the success that consisted of


an extensive brand building exercise, fixed cost reduction and restructuring.
Whirlpool chose to position the brand as a “Partner to the homemaker” and the
values were translated into the various elements of the brand identity leading to
the well known tagline “You & Whirlpool, The World’s best homemakers.” In
fact, Whirlpool is credited with changing the lexicon from “housewife” to
“homemaker” in everyday parlance which truly celebrates the contributions the
woman makes to the home.

Targeted at the modern Indian woman who sees home appliances as her ally in
homemaking, Whirlpool believes in providing world-class quality to its
consumers. In its endeavour to maintain international standards of quality and
style and match the exacting standards of the Indian homemaker, Whirlpool has
successfully become a ‘Perfect partner to the demanding homemaker’ of today
who seeks to nurture herself as well as home & family. Whirlpool’s products are
stylish, modern and contemporary with elegant looks and reflect the sense of pride
homemakers take in choosing them for their homes.

Keeping this focus in mind, Whirlpool of India engaged a real life celebrity couple
Ajay & Kajol to endorse the brand who symbolise the values that brand stands for.
They both are two

strong individuals, very different yet complementing each other. Their


relationship represents what the Whirlpool brand has always epitomised in its
advertising through the years- A relationship based on equality, love and romance.

Whirlpool has the distinction of having ISO certification for all its facilities in
India. The refrigerator facility is located at Faridabad and manufactures a
complete range of direct cool refrigerators. With the infusion of technology,
machinery and streamlining the processes the capacity of this plant was increased
from 700,000 to 1,000,000 annually.

Whirlpool’s commitment to the Indian operation has resulted in the setting up of a


state-of-the-art facility for the manufacture of no frost refrigerators at Ranjangaon
near Pune. This facility has set the standards as one of the world’s front runners in
environmentally sensitive eco-friendly manufacturing units.

The washer facility is located at Pondicherry and manufactures both fully


automatic and semi automatic washers. Constant feedback is taken from the
consumers resulting in products being continuously upgrade in features and in
styling.
Products manufactured in the above facilities match Whirlpool’s global standards
and are exported to over 70 countries across the globe. Whirlpool of India is
today India’s largest exporter of home appliance and has been approved as an
Export House.

Design Engineering is being developed as a core competency for Whirlpool of


India. A step in the direction has resulted in the setting up of Regional
Technology Centres at Pune focussing on refrigerators and at Pondicherry for
washers. This will provide WOI with a competitive edge in speedy customisation
of products suited to consumer needs.

In the second phase of developing this core competency Whirlpool set up a Global
Technology Centre at Pune in 2002 to provide design support for the global
organisation. A design and development centre for Whirlpool’s global small
appliances brand Kitchenaid has also been set up at Pondicherry. The already
strong manufacturing and technology infrastructure was augmented by the
establishment of a Global Consumer Design centre for Asia in New Delhi in 2005.
4.1ANALYSIS AND INTERPRETATION OF DATA

Due to competition and several market opportunities available to the customers,


he is quite selective while choosing a product that provides more satisfaction to
them.
Keeping in view the objectives of the study and the data collected through
questionnaire following analysis has been made:
1. The data has been collected from different age group, different income
level and on the basis of education level.
2. The survey was based on the performance of the consumers.
3. Different type of branded electronic products was also considered.
4. Awareness of branded electronic products was also surveyed.
The response of the respondents either noted down on the questionnaire by me or
by respondent itself noted down his response in my presence. So that respondents
expression are noticed down by me and if any correction required in his response
is done by me. Hence that data collection by me is more reliable and authentic.
Criteria 1 Person aware about brand equity, their response as follows:

Analysis:

Options % of Respondent
Yes 97%
No 3%

Aware about brand equity

3%

Yes
No

97%

Interpretation:
It is observe that 97% respondents aware about brand equity
Criteria 2: Persons perceive about brand equity, their response as fallows:
Analysis:

Options % of Respondent
Marketing tool 26%
Advertising tool 46%
Communication tool 28%

You perceive about brand equity

0.5
0.45
0.4
0.35
0.3 Series3
0.25 Series2
46%
0.2 Series1
0.15 26% 28%
0.1
0.05
0 0 0 0
1 2 3 4 5 6

Interpretation:
It is observed that 46% respondent perceive through Advertising tool , 28%
respondent perceive through Communication tool , 26%respondent perceive
through Marketing tool.
Criteria 3 : Have you purchase any product from the Internet:
Analysis:

Yes 30%
No 70%

80%

70%

60%

50%

40% Series1

30%

20%

10%

0%
yes no

Interpretation:
Criteria 4:When respondents were asked which brand of electronic product
they consider as best , they responded in the following manner:
Analysis:

Options % of Respondent
LG 32%
Onida 3%
Videocon 24%
Whirlpool 12%
Samsung 28%
Any other 1%

More popular brand according to you

Other
1%
Samsung LG
28% 32%

Whirlpool Onida
12% Videocon3%
24%

Interpretation: From the survey it is observed that:


1) 32% of people use only LG
2) 3% use Onida
3) 24% use Videocon
4) 12% use Whirlpool
5) 28% use Samsung
Total number of respondent uses branded electronic
=32+3+24+12+28
=99

Criteria 5 :At present ,which brand do you prefer ?, they responded in the
following manner:

Analysis:

Options % of Respondent
LG 32%
Onida 1%
Videocon 18%
Whirlpool 18%
Samsung 28%
Any other 3%

That brand you prefer

3%

32% LG
28%
Onida
Videocon
Whirlpool

1% Samsung
Any other
18% 18%

Interpretation: From the survey it is observed that:


6) 32% of people use only LG
7) 1% use Onida
8) 18% use Videocon
9) 18% use Whirlpool
10) 28% use Samsung
Total number of respondent uses branded electronic
=32+1+18+18+28
=97
Criteria 6: Reason for using this branded electronic product.
Analysis:
Options % of Respondent
Avaibility 16%
Flexibility 15%
Reliability 52%
Memorability 14%
Any other 3%

Reason you are using this brand

60%

50%

40%

30%

20%

10%

0%
Avaibility Flexibility Reliability Memorability Other

Interpretation:
Majority of the consumer using the particular reason is Reliability.
Criteria 7: Decision influencers to buy a electronic product.
Analysis:
Options % of Respondent
Friend 3%
Advertising 54%

Availability 23%
Family 20%

particular brand influenced by

0.6

0.5

0.4
Series2
0.3
54% Series1
0.2

0.1 23% 20%

0 3%
0 0 0 0
1 2 3 4 5

Interpretation:
About 51% of respondents get information about branded electronic product from
Advertising
Criteria 8: Respondent experience with market.
Analysis:
Options % of Respondent
Reasonable satisfactory 51%
Very Satisfactory 46%
Unsatisfactory 3%
Very Unsatisfactory 0%

Experience with market

9 0%

0
7 3%

0
Series2
5 46%
Series1
0
3
51%
1 0
0 0.1 0.2 0.3 0.4 0.5 0.6

Interpretation:
51% respondent are reasonable satisfactory,46% are very satisfactory
Criteria 9: What factor influence your choice of brand.
Analysis:
Price 40%
Place 35%
Quality Performance 15%
Any other 10%

Price
Place
Quality Performance
Any other

Interpretation:

This graph show that 40% customers are influence by the price of the brand
whereas 35% are place and 15% are influence by any other factors.
Criteria 10: Time for using the particular brand.
Analysis:

Last one year 40%


Last six month 20%
Always 15%
Recently 25%

45%

40%

35%

30%

25% Series1

20% Series2

15%

10%

5%

0%
Last one year Last six month Alw ays Recently

Interpretation:
Majority of the consumer using the particular brand is from last one year
Criteria11: When respondents were asked if your favourite brand is not
available then would you shift to other brand ,their response follows:
Analysis:

Options % of Respondent
Yes 41%
No 59%

Shift to some other brand

70%
60%

50%
40%
Series1
30% 59%
20%41%

10%
0%
Yes No

Interpretation:
It is observed that 59% respondents would not shift to some other brand
Criteria 12: If no then respondent do it.

Analysis:

Options % of Respondent
You will wait or use any 39%
other products
Wait for availability 42%
Use any other than 19%
products

Then you do it

100%

80%

60%
39% 42% 19%
40%

20%

0% 0 0 0
1 2 3 4 5 6

Series1 Series2 Series3


Interpretation:
42% wait for availability, 39% use any other brand
Criteria 13: Recall any advertisement related to branded electronic product.

Analysis:

Options % of Respondent
Yes 86%
No 14%

Recall any advertisment

14%

Yes
No

86%

Interpretation:
It is observed that 86% respondents could recall any advertisement related to
branded electronic product.
Criteria 14:Confident level on the fair dealing with supplier .
Analysis:
Options % of Respondent
Somewhat confident 48%
Very confident 38%
Somewhat doubtful 14%
Very doubtful 0%

Confident level on the fair dealing

70%
0
14%
0
5 0
38% Series2
Series1
3 0
48%

1 0
0 0.1 0.2 0.3 0.4 0.5

Interpretation:
48% respondents are confident, 14% somewhat doubtful
Criteria 15 :Advertising of branded electronic product should contain:
Analysis:
a) Genuine 20%
b) Its price 25%
c) Eye catching picture 27%
d) Recommendation of a well known personality 16%
e) Any other 12%

Preferences Rank no.


Genuine 3
Its price 2
Eye catching picture 1

Recommendation of a 4
well known personality
Any other 5
Indicate your preference

12%
20% genuine
0
its price
16% eye catching picture

recommendationof
25% dation of a
any other
27%

Interpretation:
It is observed that eye catching picture have an important role in advertising
of branded electronic product.

Criteria 16: Does sources of brand equity e- area help in continuous


improvement of your product and services.
Analysis:

Yes 50%
No 35%
Can’t say 15%
15%

Yes
50% No
Can’t say

35%

Interpretation:
Criteria 17: branded electronic product are over priced or not in comparison
to normal product.
Analysis:

Options % of Respondent
Yes 71%
No 29%

0.8

0.6

0.4

0.2

0
Yes No
Series1
Series2 71% 29%

Interpretation:
71% respondents think branded electronic products are over priced in
comparison to normal products
Criteria 18: Will u prefer properly.
Analysis:
E- product 35%
Normal product 65%

E- product
Normal product

Interpretation:
Criteria 19: Mode of payment by the computer.
Analysis:
DD/Cheque 40%
Cash Delivery 35%
Credit Card 15%
Others 10%

45%

40%

35%

30%

25%
Series1
20%

15%

10%

5%

0%
DD/Cheque Cash Delivery Credit Card Others

Interpretation:
5.1 FINDINGS

1. Most of the people aware about brand equity.


2. LG and Samsung brand of electronic product is more popular.
3. Most of the people prefer LG and Samsung brand.
4. Reliability is the most popular reason for using this brand.
5. Consumer is reasonable satisfactory with brand experience with
market.
6. 86% people recall any advertisement related to branded electronic
product.
7. From the last year people are using this particular product.
8. Eye catching picture is people indicate preference.
9. Quality is the most popular attribute of electronic product.
6.1 CONCLUSION

1) It is found that most of consumer prefer LG and Samsung


2) Most of consumer prefers electronic product of high price
3) Advertising effect the purchase of a particular brand of products
4) Eye catching is no. 1 rank to advertise an branded electronic
products.
5) Attributes other than branded electronic products property of Brand
name, quality, relative price, awareness are the main parameters influencing
purchasing decision.
6) It is found that in this product category, no single brand enjoys a
monopoly or a significant of brand loyalty.

This is an exploratory study using a small sample with the intent to determine how
well the pure Keller brand equity model will fit in a B2B context. The advantage
of this study is that it investigates a real brand with real potential B2B buyers ,
however there is a risk that the results may represent context-specific factors that
are not representative of all industrial markets. Nevertheless, some interesting
insights and challenges have been identified in applying Keller’s CBBE model in
an organizational environment .It is suggested that an adaptation of the model is
necessary for industrial marketers to effectively use it in building, measuring and
managing brand equity.
6.2 SUGGESTION AND RECOMMENDATIONS

To increase the sales figures of LG, Samsung, it is necessary to understand the

consumer’s attitude and perception and therefore some suggestion and

recommendation are given below:

1. People should perceive about brand equity in all of the above.


2. That brand you prefer they should be reliable, flexible, available .
3. Your decision to buy a particular brand that should be fair.
4. LG, Samsung should use the promotional activities to enhance the
satisfaction level of End users
5. LG, Samsung service provider should use the CRM programs for better
customer relationship.
6. Some people are not aware of LG, Samsung services, so information
technology and tools are used to aware the people.
7. First of all the LG, Samsung service providers should understand the
consumer’s attitude and market demand through surveys and questionnaire.
6.3 LIMITATIONS OF THE STUDY

The following are the various limitations of the study:-

1. Some respondents don’t perceive about brand equity through marketing


tool ,advertising tool
2. A sample of 60 respondents is too less to generalize the results for the
whole population. Thus the results do not have much practical application
value.
3. There was shortage of time and money
4. I have to face criticism about availability by some of the respondents
5. Some person don’t respond about brand