INTRODUCTION Before the liberalization of the Indian economy, only a few companies like Kelvinator,Godrej, Alwyn, and Voltas were the major players in the consumer durables market,accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast  because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in incomelevels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products likewashing machines, air conditioners, microwave ovens, color televisions (C-TV) were nolonger considered luxury items. However, there were still very few players in categorieslike vacuum cleaners, and dishwashers Consumer durables sector is characterized by theemergence of MNCs, exchange offers, discounts, and intense competition. The marketshare of MNCs in consumer durables sector is 65%. MNC's major target is the growingmiddle class of India. MNCs offer superior technology to the Consumers whereas theIndian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetrationLevel of the consumer durables is still low in India.Indian Consumer durables market used to be dominated by few domestic players likeGodrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies

 

have entered into Indian market dethroning the Indian players and dominating Indianmarket the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN andWASHING MACHINES.India being the second largest growing economy with huge consumer class has resulted inconsumer durables as the fastest growing industries in India. LG, SAMSUNG the twoKorean companies have been maintaining the lead in the market with LG being leader inalmost all the categories.The rural market is growing faster than the urban market, although the penetration levelis much lower .The CTV segment is expected to the largest contributing segment to theoverall growth of the industry. The rising income levels double-income families andconsumer awareness were the main growth drivers of the industries.

industry profile:

The Consumer Durables industry consists of durable goods and appliances for domesticuse such as televisions, refrigerators, air conditioners and washing machines. Instrumentssuch as cell phones and kitchen appliances like microwave ovens were also included inthis category. The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand,greater disposable income and an overall increase in the level of affluence of a significantsection of the population. The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool,etc.The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorizedinto Brown Goods and White Goods. The key product lines under each segment were asfollows.Industry Size, Growth, TrendsThe consumer durables market in India was est imated to be around US$ 5 bil l ion in2007-08. More than 7 million units of consumer durable appliances have been sold in theyear 2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per cent share of volumes. CTV, refrigerators and Air-conditioners together constitute morethan 60 per cent of the sales in terms of the number of units sold.In the refrigerators market, the frost-free category has grown by 8.3 per cent while directcool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung haveregistered double-digit growth in the direct cool refrigerator market. 

In the case of washing machines, the semi-automatic category with a higher base andfully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to229,000 units, respectively. In the air-conditioners segment, the sales of window ACshave grown by 32 per cent and that of split ACs by 97 per cent.Since the penetrat ion in the urban areas for these products is already quite high, themarkets for both C-TV and refrigerators were shifting to the semi-urban and rural areas.The growth across product categories in different segments is assessed in the followingsections.Consumer ElectronicsThe CTV production was 15.10 million units in 2007-08 and is expected to grow by atleast 25 per cent . At the disaggregated level , conventional CTV volumes have beenfall ing while f lat TVs have grown strongly. Market sources indicate that most CTVmajors have phased out conventional TVs and have been instead focusing more on flatTVs. The flat segment of CTVs now account for over60 per cent of the total domestic TV production and is likely to be around 65 per cent in 2007-08.High-end products such asliquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 per Cent respectively in 2009–10 following a sharp decline in prices of these products andthis trend is expected to continue. The audio/video player market has seen significantgrowth rates in the domestic market as prices have dropped. This trend is expected tocontinue through 2009- 2010, as competition is likely to intensify to scale and capture themass market. 

Company profile

Our VisionSamsung is guided by a singular vision: to lead the digital convergence movement.We believe that through technology innovation today, we will find the solutions we needt o   a d d r e s s   t h e   c h a l l e n g e s   o f   t o m o r r o w .   F r o m  t e c h n o l o g y   c o m e s   o p p o r t u n i t y   f o r    businesses to grow, for citizens in emerging markets to prosper by tapping into the digitaleconomy, and for people to invent new possibilities.It’s our aim to develop innovative technologies and efficient processes that create newmarkets, enrich people’s lives and continue to make Samsung a trusted market leader Our MissionE v e r y t h i n g   w e   d o   a t   S a m s u n g   i s   g u i d e d   b y   o u r m i s s i o n :   t o   b e   t h e   b e s t   “ d i g i t a l - Company”. 11Samsung grew into a global corporation by facing challenges directly. In the years ahead,our dedicated people wi l l continue to embrace many chal lenges and come up with creative ideas to develop products and services that lead in their markets. Their ingenuitywill continue to chart Samsung’s course as a profitable, responsible global corporation.GROWING TO BE THE BEST Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best Company’in terms of both the internal workplace environment as well as the external context inwhich the Company operates. Samsung aims to grow in India by contributing to theIndian economy and making the lives of its consumers simpler, easier and richer throughits superior quality products.“Our aim is to gain technological leadership in the Indian marketplace even as our goal isto earn the love and respect of more and more of our Indian consumers.” Mr. S.H. Oh,President & CEO Samsung South-West Asia Regional Headquarters.

Samsung in IndiaSamsung India is the hub for Samsung’s South West Asia Regional operations. The SouthWest Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka,Bangladesh, Maldives and Bhutan besides India. Samsung India, which commenced itsoperations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. 

Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices locatedall  over   the country.  The Samsung manufacturing complex housing manufacturingfacilities for Colour Televisions, Colour Monitors,Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made inIndia’ products like Colour Televisions, Colour Monitors and Refrigerators were beingexported to Middle East ,  CIS and SAARC countries  from its Noida manufacturingcomplex. Samsung India currently employs over 1600 employees, with around 18% of itsemployees working in Research & Development.SAMSUNG GLOBALThe DNA of Digital InnovationSamsung Electronics is a global leader in semiconductors, telecommunications, digitalm e d i a   a n d   d i g i t a l   c o n v e r g e n c e   t e c h n o l o g i e s   w i t h  2 0 0 4   p a r e n t   c o m p a n y   s a l e s   o f   US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over 90offices in 48 countries, the company has of 5 main business units: Digital ApplianceB u s i n e s s ,   D i g i t a l   M e d i a   B u s i n e s s ,   L C D  B u s i n e s s ,   S e m i c o n d u c t o r   B u s i n e s s   a n d Telecommunication Network Business. Recognized as one of the fastest growing global brands, Samsung Electronics Corporation is the world’s largest pro ducer of Colour Monitors, Colour TVs, Memory Chips and TFT LCD’s.

Customized products for Indian ConsumersS a m s u n g   u n d e r s t a n d s   t h e   l o c a l   c u l t u r a l   s e n s i b i l i t i e s  t o   c u s t o m i z e   i t s   p r o d u c t s according to the Indian market. It has set up a “usability lab” at the Indian Institute of  Technology in New Delhi to customize Samsung products to meet the specific needs of Indian consumers. This industry-institute partnership is helping Samsung to study andanalyze consumer response in aspects of product design, including aesthetics, ergonomicsand interface.Through its research done on consumer preferences in India, Samsung has concludedthat Indian consumers want more sound oriented products. Thus, the Samsung televisionsfor India have a higher sound capacity than their foreign counterparts.For  the semi-automatic  segment  of  Samsung washing machines,  Samsung hasintroduced for the first time in India a feature called Super Dry. It is present in three of Samsung’s semi automatic models and dries the clothes better than the rest.Samsung washing machines have an addit ional menu that takes care of the localIndian wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power failures in India. 

PRODUCT PROFILE650 Series Full HD LC D TVDeveloped using our unique Crystal Design with a hint of rose-red color accentuating a traditional piano-black  bezel frame, the 650 Series LCD TV features Auto MotionPlus 120Hz, an Ultra Clear Panel, DNIe Pro and WideColor Enhancer Pro to provide perfect picture quality.Wide Video MP3 Player (YP-P2)Equipped with Bluetooth and a touch screen interface,the YP-P2 lets consumers enjoy vivid videos on a 3-inchwide LCD screen. Samsung’s proprietary DNSe 2.0technology with EmoTure™ UI enhances the ultimate multimedia experience. 

VRT Front Loading Washer Designed with Vibration Reduction TechnologyTM (VRT),our washer dramatically reduces barrel vibration—evenat the highest speed. It also reduces energy and water consumption to the world’s lowest levels. Further, we’veenhanced washing performance and eco-friendly performancewith a diamond-shaped embossing drum.6-in-1 Steam OvenSimple, yet stylish, our 6-in-1 steam oven combines all of the features of a conventional oven with advanced steamcooking technology to stimulate healthier eating.Samsung’s versatile steam cooking solution adds asteam function to the conventional oven, grill and microwave,as well as dry heat and fermenting. 

Haptic Touch Screen Phones (SC H-W420/W4200)Built with TouchWiz UI software, our Haptic model promisesa unique user experience, one that touches all of thesenses. The Samsung Haptic features one-touch access,a widget for creating customized desktops and a G sensor for automatic horizontal rotation of photos and videos.It is designed for the innovative, ‘on-the-go’ user whodemands cutting-edge multimedia features, including a web browser. Ultra-messaging BlackJack II (SG H-i617)Microsoft’s Windows Mobile software-enabled HSDPAsmart phone boasts a bigger

screen than the BlackJack I and includes a jog wheel. The phone also has cuttingedgefeatures such as a touch screen, Bluetooth, GPS and wireless LAN 

OBJECTIVES OF THE PROJECT•To find number of brands of consumer durable in Nashik district.•To study brand preference of consumer for consumer durable goods..•To find most important parameter for selection of brand of Colour television,Refrigerators, Washing machine, DVD, Microwave oven.•

To study profit margin of major brands in consumer durable. Research MethodologyResearch methodology is considered as the nerve of the project. Without a proper well-organized research plan,   i t   is   impossible   to complete   the project  and reach to anyconclusion. The project was based on the survey plan. The main objective of survey wasto collect appropriate data, which work as a base for drawing conclusion and gettingresult.Therefore, research methodology is the way to systematically solve the research problem.Research methodology not only talks of the methods but also logic behind the methodsused in the context of a research study and it explains why a particular method has beenused in the preference of the other methodsResearch design Research design is important primarily because of the increased complexity in the marketas well as marketing approaches available

to the researchers. In fact, it is the key to theevolution of successful marketing strategies and programmers. It is an important tool tostudy buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. Aresearch design specifies the methods and procedures for conducting a particular study.According to Kerlinger, “Research Design is a plan, conceptual structure, and strategy of investigation  conceived as  to obtain answers   to research questions  and to controlvariance.Research design specifies methods and procedures for study. In this study the companywas interested  to know the demand of  different  consumer durable product,  aboutcompetitors, and potential for SAMSUNG procedures to be used for the study amongretailers/dealer and. However it was exclusively personal interview.Data Collection:This report was prepared after collecting data from the retailers/ dealers and past data wasarranged from the various studies conducted in last few years and various other records of company.Primary Data:These data were collected by personal interview with retailers/ dealer. For this purposequestionnaires were prepared in such that all necessary data would be collected.Secondary Data:Information regarding the project, secondary data was also required. These data werecollected from various past studies and other sources of the company.SAMPLING METHODRandom Sampling methodSAMPLE SIZE100 DealersResearch tools:

Questionnaires RESEARCH AREANASHIK DISTRICT-• Nashik cityCBSPanchavatiCidco Nashik RoadDindori RoadCanada Corner Gangapur RoadMG RoadDeolali camp•Malegaon•Kalvan•Satana•Chandwad•

Deola 

Taharabad• Nampur •Lakhmapur •Wani•Yeola•Lasalgaon•Pimplegaon Baswant•Ojhar •Manmad•Dindori 

Scope of the study

This project gives us great exposure to the consumer durable market because it includes product knowledge and field survey job in which we visited the consumer durable storesin Nashik district.While visiting the shops we 1. Calculated the display share of the SAMSUNG product in shop.2. Collected the data of actual monthly sale of the SAMSUNG product in few shop.3 Found out the problems that the dealer were facing while sel l ing the SAMSUNG product.4. Found out the customer response for SAMSUNG products by asking the owner of theshop.5. Checked whether demo calls were attended or not

Scope

1. In term of purchasing power parity (PPP), India is the 4th largest economy in the worldand overtake Japan in the near future become the 3rd largest.2. Indian consumer durable market is expected to reach $450 billion by on 20103. India has the youngest population amongst the major countries. There were lot of    people in the different income categories nearly the two third population is below theage of 35 and nearly 50% is below 25.4. There were 56 million people in middle class, who were earning us$4,400-US$21,800a year. And there were 6 million rich household in India.5. The upper-middle and high-income household in urban areas were expected to grew to38.2 million in 2007 as against 14.6 million in 2000.OPPORTUNITY 1.   In India  the penetrat ion level  of  white  goods  is   lower as  compared to other  developing countries.2. Unexploited rural market.3. Rapid urbanization. 4. Increase in income level, i.e. increase in purchasing power of consumers.5. Easy availability of finance.

Threats 1.Higher import duties on row materials . 2.Cheap imports from Singapore, China and from other Asian countries.LIMITATION OF STUDYAlthough I tried my best in preparation of this project, but this study has some limitation:1.The period of the project was not sufficient to study all the factors in deep.2.Visiting various places for the study consumed a lot of time.3.We cannot say that what the consumer have revealed will be right for each and everysituation because their perception is influenced by many factors.4.Many consumer and dealers/retailers showed less interest in providing information andhaven’t cooperated.5.Some of confidential information viz. credit period, schemes, policies and sales figurewere not disclosed by the

competitors. Theoretical Background of the studyScope of market research in view of modern global business.Research methods provide you with the knowledge and skills you need to solvethe problems and meet the challenges of a fast-paced decision-making environment.Business research courses are a recognition that students in business, not-for-profit, and public organizations – in all functional areas – need training in the scientific method andits application to decision making. Two factors stimulate an interest in more scientificdecision making: (1)  the manager’s increased need for more and better information and(2) the availability of improved techniques and tools to meet this need.During the  last   two decades,  we have witnessed dramatic  changes  in  the businessenvironment. Emerging from a historically economic role, the business organization hasevolved in response  to  the social  and poli t ical  mandates  

of national  public  policy,explosive technology growth, and continuing innovations in global communications.These changes have created new knowledge needs for the manager. Other knowledgedemands have arisen from problems with mergers, trade policies, protected markets,technology transfers, and macroeconomic savings – investment issues.The trend toward complexity has increased the risks associated with business decisions,making it more important to have a sound information base. Increased complexity meansthere are more variables to consider. The competi t ion is more vigorous, with many business downsizing to make competitive gains. Workers, shareholders, customers, andthe public are better informed and more sensit ive to their self- interest . Government continues to show concern with all aspects of society. Each of these factors demands thatmanagers have more and better information upon which to base decisions.To do well in such an environment, you will need to be equipped with an understandingof scientific methods and a means of incorporating them into decision making. You willneed to know how to identify good research and how to conduct it. This book addressesthese needs.A s   t h e   c o m p l e x i t y   o f   t h e   b u s i n e s s   e n v i r o n m e n t  h a s   i n c r e a s e d ,   t h e r e   h a s   b e e n   a commensurate, increase in the number and power of the tools to conduct research. Thereis vastly more knowledge in all fields of management. We have begun to build better theories. The computer has given us a quantum leap in the ability to deal with problems. New techniques of quantitative analysis take advantage of this power. Communicationand measurement techniques have also been enhanced. These trends reinforce each other and are having a massive impact on business management.

sources of collection of primary and secondary data for market research.ta sources may be classified as either internal (organizational) or external sources of information.Internal SourcesInternal  sources  of  organizational  data are  so varied that   i t   is  diff icult to  providegeneralizations about their use. Accounting and management information systems createand store much of the internal data. Research and development, planning, and marketingfunctions also contribute. Examples are departmental reports, production summaries,financial and accounting reports, and marketing and sales studies. The collection methods used are unique to the specific situation, and collection success depends on knowing justwhere and how to look. Sometimes the information may exist in central files (i.e., atheadquarters), in computer database, or in departmental chronological files.In other  organizations,  a  central   l ibrary keeps al l  relevant   information.  Systematicsearches should be made through exploratory interviews with everyone who handles theinformation.  Often company l ibrarians,  MIS.  PR/communications,  or  departmentalsecretaries can help in pinpointing critical data sources. Internal data sources may be theonly source of information for many studies.

External SourcesExternal sources are created outside the organization and are more varied than internalsources. There are also better defined methods for f inding them. This discussion isrestricted to published sources, although other sources of information may be useful.Published sources of data can be classified into five categories. The newest and fastestgrowing one is computerized database. They are composed of interrelated data files. Thefiles are sets

of records grouped together for storage on some medium. Access may bethrough online search or CD-ROM. Online databases are often specialized and focus oninformation about a particular field.Major  source of  published information consists  of  diverse  materials  from specialcollections. Within this category there are many reference books, each a compendium of a range of information. A second group includes university publications, of which thereare master’s theses, doctoral dissertations, and research records. A third group includescompany publications such as financial reports, company policy statements, speeches by prominent executives, sales literature, product specifications, and many others. There are miscel laneous information sources consist ing of the product ions of var ious trade, professional and other associat ions. These organizat ions often publ ish stat ist icalcompilation, research report, and proceeding of meeting.

Data analysis and interpretation

Table No.1 Number of company’s product sold by dealers.

FINDING1. We came to know while visiting the shop most of the dealers sold entire consumer durable product including C-TV, Refrigerator, Washing Machine, DVD, Microwave oven.2. We know that during the survey in consumer durable industry in Nashik district andrural  area of  nashik distr ict  LG is   leading in Colour  television,  Washing Machine,Refrigerator.3. Study shows that quality is most important parameter for more sale of colour televisionand then price is considered by consumers.4. Study shows that quality of the product is most important parameter for Refrigerator then price is considered by consumers.5. While visiting the shop we came to know that quality is most important parameter which is affect on more sales of Washing Machine.6. According to Survey, Philips is most popular brand for DVD.7. We came to know that while visiting the shop, Kenstar is most preferable brand for Microwave oven because of their quality.8. While visiting the shop we know that LG is gives high profit margin as compare toother competitors.9. While visiting the shop dealers suggested that after sales service is most importantfactor which contributes towards the sales of Consumer durables.10. All the dealers were not satisfied with the profit margin.11. SAMSUNG product is costly as compare to LG and VIDEOCON.12. Maximum rural area is covered by the VIDEOCON because of their low price products. 13. We came to know while visiting the shops that there was big problem of after salesservice.14. Many dealers were facing the problem of after sale service because there is no followup calls from SAMSUNG.s15. Demo calls also not done properly.16. LG and Videocon is the main competitor of SAMSUNG.17. Advertising of SAMSUNG CTV is

more effective as compare to the competitors.18. Sales promotion scheme were sufficient.

SUGGESTIONS &RECOMANDETION•Company should improve the after sales service of products as i t is the mainfactor for the sales of consumer products.•If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON thenSAMSUNG will take over the LG in all categories.•Company should distribute free key chain, calendar, t-shirts for

making brand popular among people. •

Company should introduce low price and low power consumption Refrigerator for acquiring the middle income group.•Dealer desire more advertisement to be done through local newspaper and cableTV ads. To make consumers aware about the product.•Prompt of service in time.•Advertisements of the company’s products should focus on quality rather then price.•Company should target upper middle class or premium class customers.•Company should introduce low cost products to satisfy the needs of low or middleclass.•

Demo calls as well as follow up Help Company to maintain customer relationshipand hence the company should focus on these aspects.•SAMSUNG ltd. should concentrate on after sales service.•SAMSUNG ltd. should try to trap the rural market.•SAMSUNG ltd. Establish the service center as per taluka place. 

Conclusion

•With respect   to  the above study and the f indings  thereby,   the company hasdefinitely entrenched into the urban market.•With few more concerted efforts, the said organization needs to enter the ruralmarket in order to completely establish itself all over. 

ANNEXURE