study on the consumer durables marke

A Project Report On

“A Study of Consumer Durable Market for Samsung Electronics Ltd”

With Special References to Kollam District

Under The Guidance Of

Mr. Santhosh M John

Submitted In

Partial Fulfillment Of

Full time Post Graduate Programme in

Indian School Of Business and Economy in IIPM Cochin

Submitted By

Mr. Shaji Sulaiman

SS / PG 10-12 (ISBE A)

ACKNOWLEDGEMENT

A project is a golden opportunity for learning and self-development. I consider

myself very lucky and honored to have so many wonderful people lead me

through, in completion of this project.

My grateful thanks to Mr. Manzar Ali, Managing Partner who in spite of being

extraordinarily busy with his duties, took time out to hear, guide and keep me on

correct path. I do not know where I would have been without him. A humble

‘Thank you’ Sir. Mr. Rajan, Marketing Executive, monitored my progress and arranged all

facilities to make my project easier. I choose this moment to acknowledge his

contribution grateful.

Prof. Santhosh M John, whose patience I have probably tested to the limit. He was

always so involved in the entire process, shared his knowledge and encouraged

me to think. Thank you, Dear Sir.

Last but not the least there were so many who shared valuable information that

helped in the successful completion of the project

Shaji Sulaiman

2

INDEX

Sl. No. Contents Page no.

1. Introduction 4

2. Industry Profile 6

3. Company Profile 8

4. Product Profile 16

5. Objective of Study 17

6. Research Methodology 20

i. Primary data

ii. Secondary data

iii. Sampling

iv. Scope of the study

v. Limitations of the study

7. Theoretical Background of the study 23

8.

Data Analysis

26

9.

Findings

40

10.

Recommendations

41

11.

Conclusion

42

12.

Annexure

43

13. Bibliography 48

3

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 15-20% in 2010-2012. It is

growing very fast because of rise in living standards, easy access to consumer

finance, and wide range of choice, as many foreign players were entering in the

market with the increase in income levels, easy availability of finance, increase in

consumer awareness, and introduction of new models, the demand for consumer

durables has increased significantly. Products like washing machines, air

conditioners, microwave ovens, televisions (TV) were no longer considered

luxury items. However, there were still very few players in categories like

vacuum cleaners, and dishwashers Consumer durables sector is characterized by

the emergence of MNCs, exchange offers, discounts, and intense competition. The

market share of MNCs in consumer durables sector is 65%. MNC's major target is

the growing middle class of India. MNCs offer superior technology to the

Consumers whereas the Indian companies compete on the basis of firm grasp of

the local market, their well-acknowledged brands, and hold over wide

distribution network. However, the penetration

Level of the consumer durables is still low in India. Indian Consumer durables

market used to be dominated by few domestic players like Godrej, Voltas and

Kelvinator. But post liberalization many foreign companies have entered into

Indian market dethroning the Indian players and dominating Indian market the

major categories being TV, REFRIGRATOR, MICROWAVE OVEN and WASHING

MACHINES.

4

India being the second largest growing economy with huge consumer class has

resulted in consumer durables as the fastest growing industries in India. LG,

SAMSUNG the two Korean companies have been maintaining the lead in the

market with LG being leader in almost all the categories.

The rural market is growing faster than the urban market, although the

penetration level is much lower .The TV segment is expected to the largest

contributing segment to the overall growth of the industry. The rising income

levels double-income families and consumer awareness were the main growth

drivers of the industries.

5

INDUSTRY PROFILE

The Consumer Durables industry consists of durable goods and appliances for

domestic use such as televisions, refrigerators, air conditioners and washing-

machines. Instruments such as cell phones and kitchen appliances like

microwave ovens were also included in this category. The sector has been

witnessing significant growth in recent years, helped by several drivers such as

the emerging retail boom, real estate and housing demand, greater disposable

income and an overall increase in the level of affluence of a significant section of

the population. The industry is represented by major international and local

players such as BPL, Videocon, Voltas, Blue Star, Onida (MIRC Electronics), Titan,

Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments:

Consumer Electronics and Consumer Appliances. Consumer Appliances can be

further categorized into Brown Goods and White Goods. The key product lines

under each segment were as follows.

Industry Size, Growth, Trends

The consumer durables market in India was estimated to be around US$ 8 billion

in 2011-12. More than 7 million units of consumer durable appliances have been

sold in the year 2010-11 with televisions (TV) forming the bulk of the sales with

30 per cent share of volumes. TV, refrigerators and Air-conditioners together

constitute more than 60 per cent of the sales in terms of the number of units sold.

In the refrigerators market, the frost-free category has grown by 8.3 per cent

while direct cool segment has grown by 9 per cent. Companies like LG, Whirlpool

and Samsung have registered double-digit growth in the direct cool refrigerator

market.

6

In the case of washing machines, the semi-automatic category with a higher base

and fully-automatic categories have grown by 4 per cent to 6,26,000 units and by

8 per cent to 3,19,000 units, respectively. In the air-conditioners segment, the

sales of window ACs have grown by 32 per cent and that of split ACs by 97 per

cent.

Since the penetration in the urban areas for these products is already quite high,

the markets for both TV and refrigerators were shifting to the semi-urban and

rural areas. The growth across product categories in different segments is

assessed in the following sections.

Consumer Electronics

The TV production was 16.02 million units in 2011-12 and is expected to grow

by at least 27 per cent. At the disaggregated level, conventional TV volumes have

been falling while flat TVs have grown strongly. Market sources indicate that

most TV majors have phased out conventional TVs and have been instead

focusing more on flat TVs. The flat segment of TVs now accounts for over 60 per

cent of the total domestic TV production and is likely to be around 70 per cent in

2011-12. High-end products such as liquid crystal display (LCD) and LED TV

grew by 400 per cent and 200 percent respectively.

7

COMPANY PROFILE

SAMSUNG – INTRODUCTION

“Vision 2020”

Samsung Electronics' vision for the new decade is, "Inspire the World, Create

the Future."

This new vision reflects Samsung Electronics’

commitment to inspiring its communities by

leveraging Samsung's three key strengths:

“New Technology,” “Innovative Products,” and “Creative Solutions.” -- And to

promoting new value for Samsung's core networks -- Industry, Partners, and

Employees. Through these efforts, Samsung hopes to contribute to a better world

and a richer experience for all.

“Mission”

Everything done at Samsung is guided by their mission: to be the best “digital-

Company”.

8

Samsung grew into a global corporation by facing challenges directly. In the years

ahead, our dedicated people will continue to embrace many challenges and come

up with creative ideas to develop products and services that lead in their

markets. Their ingenuity will continue to chart Samsung’s course as a profitable,

responsible global corporation.

9

SAMSUNG HISTORY

2011

Received Innovation awards at Consumer Electronics Show (CES 2011) for

37 products

2010

Galaxy S leading android phone

Sales of the Galaxy S topped 10 million units just seven months after its

launch in June 2010

2008

Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung Electronics

Launched OMNIA phone

Completed establishing TV manufactory in Russia Kaluga

Became the official sponsor of 2010 Guangzhou Asian Game

Developed the world's first 2Gb 50 NANO

Samsung takes No. 1 spot in U.S. cell phone market

Opened Global Brand PR Centre ‘Samsung D'light'

No.1 worldwide market share position for TVs achieved for the 9th

quarter in a row

2007

No.1 worldwide market share position for TVs achieved for the seventh

quarter in a row

Developed the world's first 30nm-class 64Gb NAND Flash™ memory

Black Jack bestowed the Best Smart Phone award at CTIA in the U.S.

Attained No.1 worldwide market share position for LCD for the sixth year

in a row

10

2006

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 lowest

level of noises

Launched the worlds' first Blu-Ray Disc Player

Developed 1.72"Super-Reflective LCD Screen

2005

Awarded Samsung as the Best Retailer of the year 2005 in the consumer

Durables category.

Mr. S. H. Oh appointed as the President and Chief Executive Officer of

Samsung South West Asia.

2004

Received the Golden Peacock Special commendation Certificate for

Corporate Social Responsibility.

India made regional headquarters for Samsung Southwest Asia.

Mr. K. S. Kim appointed as the First President and Chief Executive Officer

of Samsung South West Asia.

2003

Inaugurated Samsung's new, High-Tech, advanced Refrigerator facility.

Commencement of production at refrigerator facility in Noida.

Merger of SIEL with SEIIT.

Software technology park set up at Noida

11

2002

Construction commences for 5,000,000 refrigerator plant in Noida

Samsung unveils new technology for Consumer Home Entertainment

(DNIe™)

1996

Foundation Stone laid for CTV Factory at Noida, Uttar Pradesh.

1995

Samsung India Electronics (SIEL) products launched in India.

Certificate for commencement of business received by Samsung

12

GROWING TO BE THE BEST

Since its inception in 1969, Samsung Electronics has grown into a world class IT

Company. Upon its 40th anniversary, the company adopted a new vision of

“Inspire the World, Create the Future” in 2009. Going forward, we will inspire the

world through new technologies, innovative products, and creative solutions

while creating a prosperous future by enhancing stakeholder value.

Samsung in India

Samsung India is the hub for Samsung’s South West Asia Regional operations.

The South West Asia Regional Headquarters looks after the Samsung business in

Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India,

which commenced its operations in India in December 1995, today enjoys a sales

turnover of over US$ 1Bn in just a decade of operations in the country.

13

Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices

located all over the country. The Samsung manufacturing complex housing

manufacturing facilities for Colour Televisions, Colour Monitors,

Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung

‘Made in India’ products like Colour Televisions, Colour Monitors and

Refrigerators were being exported to Middle East, CIS and SAARC countries from

its Noida manufacturing complex. Samsung India currently employs over 1600

employees, with around 18% of its employees working in Research &

Development.

SAMSUNG GLOBAL

The DNA of Digital Innovation Samsung Electronics is a global leader in semiconductors, telecommunications,

digital media and digital convergence technologies with 2004 parent company

sales of US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000

people in over 90 offices in 48 countries, the company has of 5 main business

units: Digital Appliance Business, Digital Media Business, LCD Business,

Semiconductor Business and Telecommunication Network Business. Recognized

as one of the fastest growing global brands, Samsung Electronics Corporation is

the world’s largest producer of Colour Monitors, TVs, Memory Chips and TFT

LCD’s.

14

Customized products for Indian Consumers

Samsung understands the local cultural sensibilities to customize its

products 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 and analyze consumer

response in aspects of product design, including aesthetics, ergonomics

and interface.

Through its research done on consumer preferences in India, Samsung has

concluded that Indian consumers want more sound oriented products.

Thus, the Samsung televisions for India have a higher sound capacity than

their foreign counterparts.

For the semi-automatic segment of Samsung washing machines, Samsung

has introduced 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 additional menu that takes care of the

local Indian wardrobes. They also have a ‘memory re-start’ that takes care

of the frequent power failures in India.

15

PRODUCT PROFILE

16

OBJECTIVES OF THE PROJECT

To find number of brands of consumer durable in Kollam district.

To study brand preference of consumer for consumer durable goods.

To find most important parameter for selection of brand of LCD TV,

Refrigerators, Washing machine, DVD, Microwave oven.

To study profit margin of major brands in consumer durable.

17

Research Methodology:

Research methodology is considered as the nerve of the project. Without a

proper well-organized research plan, it is impossible to complete the project and

reach to any conclusion. The project was based on the survey plan. The main

objective of survey was to collect appropriate data, which work as a base for

drawing conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic

behind the methods used in the context of a research study and it explains why a

particular method has been used in the preference of the other methods

Research design:

Research design is important primarily because of the increased complexity in

the market as well as marketing approaches available to the researchers. In fact,

it is the key to the evolution of successful marketing strategies and programmers.

It is an important tool to study buyer’s behavior, consumption pattern, brand

loyalty, and focus market changes. A research design specifies the methods and

procedures for conducting a particular study. According to Kerlinger, “Research

Design is a plan, conceptual structure, and strategy of investigation conceived as

to obtain answers to research questions and to control variance.

Research design specifies methods and procedures for study. In this study the

company was interested to know the demand of different consumer durable

product, about competitors, and potential for SAMSUNG procedures to be used

for the study among retailers/dealer and. However it was exclusively personal

interview.

18

Data Collection:

This report was prepared after collecting data from the retailers/ dealers and

past data was arranged from the various studies conducted in last few years and

various other records of company.

Primary Data:

These data were collected by personal interview with retailers/ dealer. For this

purpose questionnaires were prepared in such that all necessary data would be

collected.

Secondary Data:

Information regarding the project, secondary data was also required. These data

were collected from various past studies and other sources of the company.

Sampling Method:

Random Sampling method

Sample Size:

50 Dealers

Research tools: Questionnaires

19

RESEARCH AREA Kollam District

Anchal

Ayoor

Bharanikkavu

Chathanoor

Chavara

Kadakkal

Kollam

Karunagappally

Kottarakkara

Kundara

Kunnicode

Paravoor

Punaloor

Shasthamcotta

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 stores in Kollam district.

20

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 selling the SAMSUNG

product.

4. Found out the customer response for SAMSUNG products by asking the owner

of the shop.

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 world and overtake Japan in the near future become the 3rd largest.

2. Indian consumer durable market is expected to reach $500 billion by on

2013

3. India has the youngest population amongst the major countries. There

were lot of people in the different income categories nearly the two third

population is below the age of 35 and nearly 50% is below 25.

4. The upper-middle and high-income household in urban areas were

expected to grew to 38.2 million in 2012 as against 14.6 million in 2009.

21

OPPORTUNITY

1. In India the penetration level of white goods is lower as compared to other

developing countries.

2. Unexploited rural market.

3. Rapid urbanization.

4. Increase in income level, i.e. increase in purchasing power of consumers.

5. Easy availability of finance.

THREATS

1. Higher import duties on row materials.

2. Cheap imports from Singapore, China and from other Asian countries.

LIMITATION OF STUDY Although I tried my best in preparation of this project, but this study has some

limitation:

1. The period of the project was not sufficient to study all the factors in deep.

2. Visiting various places for the study consumed a lot of time.

3. We cannot say that what the consumer have revealed will be right for each

and every situation because their perception is influenced by many factors.

4. Many consumer and dealers/retailers showed less interest in providing

information and haven’t cooperated.

5. Some of confidential information viz. credit period, schemes, policies and

sales figure were not disclosed by the competitors.

22

THEORETICAL BACKGROUND OF THE STUDY

The scope of market research in the modern global business:

Research methods provide you with the knowledge and skills you need to solve

the problems and meet the challenges of a fast-paced decision-making

environment. Business research courses are recognition that students in

business, not-for-profit, and public organizations – in all functional areas – need

training in the scientific method and its application to decision making. Two

factors stimulate an interest in more scientific decision 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 business

environment. Emerging from a historically economic role, the business

organization has evolved in response to the social and political 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 knowledge demands 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 means there are more variables to consider. The competition is more

vigorous, with many businesses downsizing to make competitive gains. Workers,

shareholders, customers, and the public are better informed and more sensitive

to their self-interest. Government continues to show concern with all aspects of

23

society. Each of these factors demands that managers 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

understanding of scientific methods and a means of incorporating them into

decision making. You will need to know how to identify good research and how

to conduct it. This book addresses these needs.

As the complexity of the business environment has increased, there has been a

commensurate, increase in the number and power of the tools to conduct

research. There is 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. Communication and 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 data and secondary data:

The sources may be classified as either internal (organizational) or external

sources of information.

Internal Sources

Internal sources of organizational data are so varied that it is difficult to provide

generalizations about their use. Accounting and management information

systems create and store much of the internal data. Research and development,

planning and marketing functions 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 just where and how to

look. Sometimes the information may exist in central files (i.e., at headquarters),

in computer database, or in departmental chronological files.

24

In other organizations, a central library keeps all relevant information.

Systematic searches should be made through exploratory interviews with

everyone who handles the information. Often company MIS, PR /

communications, or departmental secretaries can help in pinpointing critical

data sources. Internal data sources may be the only source of information for

many studies.

External Sources

External sources are created outside the organization and are more varied than

internal sources. There are also better defined methods for finding them. This

discussion is restricted to published sources, although other sources of

information may be useful.

Published sources of data can be classified into five categories. The newest and

fastest growing one is computerized database. They are composed of interrelated

data files. The files are sets of records grouped together for storage on some

medium. Access may be through online search or CD-ROM. Online databases are

often specialized and focus on information about a particular field.

Major source of published information consists of diverse materials from special

collections. Within this category there are many reference books, each a

compendium of a range of information. A second group includes university

publications, of which there are master’s theses, doctoral dissertations, and

research records. A third group includes company publications such as financial

reports, company policy statements, and speeches by prominent executives, sales

literature, product specifications, and many others. There are miscellaneous

information sources consisting of the productions of various trade professional

and other associations.

25

Table No.1

DATA ANALYSIS AND INTERPRETATION

Number of company’s product sold by dealers.

Sr. No. PRODUCT NO. OF RESPONDENTS

1 TV 86

2 TV & REFRIGERATOR 67

3 TV & REFRIGERATOR & WASHING MACHINE 56

4 ABOVE ALL 92

TOTAL 301

Source: - Survey

Graph No. 1

100

90

80

70

60

50

40

30

20

10

0

TV TV & REFRIGERATOR TV & REFRIGERATOR

& WASHING MACHINE

ABOVE ALL

INTERPRETATION:

According to survey, 86 dealers were sold only TV, 67 dealers were sold TV and

REFRIGERATOR, 56 dealers were sold TV and REFRIGERATOR, WASHING

MACHINE and 92 dealers were sold all product.

26

No. of company’s product sold from dealer’s shop

Table No. 2

Sr. NO. NO. OF COMPANIES PRODUCT NO. OF RESPONDENTS

1 FIVE 33

2 FOUR 24

3 THREE 9

4 TWO 34

TOTAL 100

Source: - Survey

Graph No. 2

120

NO. OF RESPONDENTS

100

80

60

40

20

0

FIVE FOUR THREE TWO TOTAL

INTERPRETATION:

According to survey, 33 dealers were sold 5 brands, 34 dealers were sold only 2

brands from their shops.

27

Major brand of TV’s sold by dealers.

Table No.3

Sr. NO. BRAND NO. OF RESPONDENTS PERCENTAGE

1 SAMSUNG 39 39

2 LG 23 23

3 VIDEOCON 18 18

4 SANSUI 11 11

5 ONIDA 9 9

TOTAL 100 100

Source: - Survey

Graph No. : - 3

Major Barnd of Televisions

SAMSUNG LG VIDEOCON SANSUI ONIDA

9% 11%

39%

18%

23%

INTERPRETATION:

According to dealers, in Kollam district SAMSUNG is leading in TV with 39%,

after that LG is 2nd with 23% and then VIDEOCON is on 3rd with 18%.

28

Most important parameter for more sale of TV

Table No.4

Sr. No. REASONS FOR MORE SALES NO. OF RESPONDENTS PERCENTAGE

1 Price 28 28

2 Quality 30 30

3 Service 17 17

4 Advertisement 15 15

5 Schemes 10 10

TOTAL 100 100

Graph No.4

Source: - Survey

NO. OF RESPONDENTS

Price Quality Service Advertisement Schemes

15%

17%

10%

28% 30%

INTERPRETATION:

According to dealers, Price is most important parameter for more sale of TV and

then Quality, Services, Advertisement and Schemes.

29

Major brand of Refrigerator’s sold by dealers

Table No. 5

Sr. No. BRAND NO. OF RESPONDENTS PERCENTAGE

1 LG 22 22

2 VIDEOCON 13 13

3 SAMSUNG 9 9

4 GODREJ 12 12

5 WHIRLPOOL 19 19

6 KELVINATOR 16 16

7 KENSTAR 9 9

TOTAL 100 100

Source: - Survey

Graph No. 5

Major Brand of Refrigerators

16%

19%

9%

12%

22%

9%

13%

LG

VIDEOCON

SAMSUNG

GODREJ

WHIRLPOOL

KELVINATOR

KENSTAR

INTERPRETATION:

According to dealers, LG is also leading in the Refrigerator market in Kollam

district with 22%. After that Whirlpool and Kelvinator is following them.

30

Most important parameter for more sale of Refrigerator

Table No.6

Sr. No. REASONS FOR MORE SALES NO. OF RESPONDENTS PERCENTAGE

1 Price 27 27

2 Quality 32 32

3 Service 19 19


5 Schemes 9 9

TOTAL 100 100

Source: -Survey

Graph No. : - 6

19%

9%

13%

32%

27%

Price

Quality

Service

Advertisement

Schemes

INTERPRETATION-

According to dealers, most important parameter for more sale of Refrigerator is

Quality and then Price, Services, Advertisement and Schemes.

31

Major brand of Washing Machine’s sold by dealers.

Table No.7


1 LG 18 18

2 VIDEOCON 11 11

3 SAMSUNG 15 15

4 IFB 7 7

5 WHIRLPOOL 21 21

6 GODREJ 9 9

7 KELVINATOR 10 10

8 KENSTAR 9 9

TOTAL 100 100

Graph No. : -7

Source: - Survey

Major Brand of Washing Machine

LG VIDEOCON SAMSUNG IFB WHIRLPOOL GODREJ KELVINATOR KENSTAR

9%

10% 18%

9% 11%

21% 15%

7%

INTERPRETATION:

According to dealers, LG is leading in Washing Machine market with 18%, after

that VIDEOCON and SAMSUNG is leading in Kollam district.

32

Most important parameter for more sale of Washing Machine

Table No.8

Sr. NO. REASONS FOR MORE SALES NO. OF RESPONDENTS PERCENTAGE

1

2

3

4

5

Price 26 26

Quality 32 32

Service 24 24

Advertisement 10 10

Schemes 8 8

TOTAL 100 100

Source: - Survey

Graph No.8

1 Price 2 Quality 3 Service 4 Advertisement 5 Schemes

8% 10% 26%

24%

32%

INTERPRETATION:

According to dealers, the most important factor which affects the sales of

washing machine is QUALITY, and then prices and services is considered by the

customers.

33

Major brand of DVD’s sold by dealers

Table No.9

Sr. NO. BRAND NO. OF RESPONDENTS PERCENTAGE

1 LG 11 11

2 VIDEOCON 13 13

3 SAMSUNG 10 10

4 ONIDA 15 15

5 PHILIPS 22 22

6 SANSUI 12 12

7 SONY 8 8

8 INTEX 9 9

TOTAL 100 100

Source: -Survey

Graph No. : - 9

INTERPRETATION:

According to dealers, PHILIPS is the most popular brand in DVD market with

22%, after that ONIDA with 15% and VIDEOCON with 13% on 3rd position.

34

Most important parameter for more sales of DVD

Table No.10


1 Price 21 21

2 Quality 42 42

3 Service 17 17

4 Advertisement 8 8

5 Schemes 12 12

TOTAL 100 100

Source: - Survey

Graph No. 10

NO. OF RESPONDENTS


12% 8%

21%

17%

42%

INTERPRETATION:

According to dealers, Quality is major factor in respect of more sale of DVD, and

then Services and prices were to be considered.

35

Major Brand of Microwave Oven’s sold by dealers

Table No.11


1 LG 18 18

2 VIDEOCON 13 13

3 SAMSUNG 15 15

4 KENSTAR 21 21

5 GODREJ 9 9

6 PHILIPS 8 8

7 BAJAJ 9 9

8 SONY 7 7

TOTAL 100 100

Source: - Survey

Graph No. 11

INTERPRETATION:

According to dealers, KENSTAR is very popular brand for microwave oven.

KENSTAR is making a huge business as compare to other competitors after that

LG and then SAMSUNG. According to dealers, microwave oven does not have that

much demand as compare to other consumer durable product.

36

Reason for more sales of Microwave Oven

Table No.12


1 Price 21 21

2 Quality 36 36

3 Service 14 14


5 Schemes 12 12

TOTAL 100 100

Source: - Survey

Graph No. 12

NO. OF RESPONDENTS


17%

12% 21%

14%

36%

INTERPRETATION:

The most important factor of more sales of microwave oven is QUALITY of the

product. Quality is mostly affected on sales of microwave oven.

37

High Profit margin brands

Table No.13

Sr. No. BRANDS NO. OF RESPONDENTS PERCENTAGE

1 LG 21 21

2 SAMAUNG 18 18

3 WHIRLPOOL 16 16

4 VIDEOCON 13 13

5 SONY 11 11

6 GODREJ 9 9

7 PHILIPS 7 7

8 KENSTAR 5 5

TOTAL 100 100

Source: - Survey

Graph No.13

High Profitable Brand

25

20

15

10

5

0

LG SAMAUNG WHIRLPOOL VIDEOCON SONY GODREJ PHILIPS KENSTAR

INTERPRETATION:

According to dealers, in Indian consumer durable industry LG is leading company

because of their low pricing policy and the better quality of product. SAMSUNG is

on 2nd position, if SAMSUNG will change their pricing policy like LG and

VIDEOCON then SAMSUNG should be on 1st position.

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Suggestion from dealers for SAMSUNG to increase the business

Table N o.14

Sr. No. SUGGESTION NO. OF RESPONDENTS

1 FAST AND REGULAR AFTER SALES SERVICE 31

2 REDUCE PRICES 21

3 INCREASE DEALER MARGIN 15

4 ADVERTISMENT AT RURAL AREA 13

5 IMPROVE QUALITY 10

6 REGULAR SCHEMES 9

TOTAL 100

Source: - Survey

Graph No.14

35

30

25

20

15

10

5

0

FAST AND REGULAR

AFTER SALES SERVICE

REDUCE PRICES INCREASE

DEALER MARGIN

ADVERTISMENT AT RURAL AREA

IMPROVE QUALITY

REGULAR SCHEMES

INTERPRETATION:

According to suggestion of dealers, AFTER SALES SERVICE is most important

factor which is helping to the SAMSUNG for increase the sales.

After that Prices of the product should be economic. Dealer Margin should

increase for motivation of dealers.

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FINDING

We came to know while visiting the shop most of the dealers sold entire

consumer durable product including TV, Refrigerator, Washing Machine, DVD,

Microwave oven.

We know that during the survey in consumer durable industry in Kollam district

LG is leading in Washing Machine & Refrigerator.

Study shows that quality is most important parameter for more sale of television

and then price is considered by consumers.

Study shows that quality of the product is most important parameter for

Refrigerator then price is considered by consumers.

While visiting the shop we came to know that quality is most important

parameter which is affect on more sales of Washing Machine.

According to Survey, Philips is most popular brand for DVD & Samsung is the

popular brand for Television.

We came to know that while visiting the shop, Kenstar is most preferable brand

for Microwave oven because of their quality.

While visiting the shop we know that LG is gives high profit margin as compare

to other competitors.

While visiting the shop dealers suggested that after sales service is most

important factor which contributes towards the sales of Consumer durables.

All the dealers were not satisfied with the profit margin.

SAMSUNG product is costly as compare to LG and VIDEOCON.

Maximum rural area is covered by the VIDEOCON because of their low price

products.

We came to know while visiting the shops that there was big problem of after

sales service.

Many dealers were facing the problem of after sale service because there is no

follow up calls from SAMSUNG.

Demo calls also not done properly.

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LG and Videocon is the main competitor of SAMSUNG.

Advertising of SAMSUNG TV is more effective as compared to the competitors.

Sales promotion scheme were sufficient.

SUGGESTIONS & RECOMANDETION

Company should improve the after sales service of products as it is the main

factor for the sales of consumer products.

If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON then

SAMSUNG will take over the LG in all categories.

Company should distribute gift items 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 cable

TV ads. To make consumers aware about the product.

Prompt of service in time.

Advertisements of the company’s products should focus on quality rather than

price.

Company should target upper middle class or premium class customers.

Company should introduce low cost products to satisfy the needs of low or

middle class.

Demo calls as well as follow up Help Company to maintain customer relationship

and 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.

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CONCLUSION

With respect to the above study and the findings thereby, the company has

definitely entrenched into the urban market.

With few more concerted efforts, the said organization needs to enter the rural

market in order to completely establish itself all over.

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A). QUESTIONNAIRE:

ANNEXURE

Study of Consumer Durable Market for SAMSUNG Electronics Ltd. With

Special reference To Kollam district. Name of shop:

Address:

Contact no:

1) Which is consumer durable product you sold from your shop?

□ TV □ Refrigerator □ Washing Machine

□ DVD □ Microwave

2) How many no. of company’s product you sold from your shop?

□ One

□ Two

□ Three

□ Four

□ Five

□ Six

3) Which is major brand of Television you sold from your shop?

□ SAMSUNG □ LG □ VIDEOCON □ ONIDA □ SANSUI

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4) What is the important parameter for more sales of Television brand?

□ Price □ Quality □ Services □ Advertisement □ Schemes

5) Which is major brand of Refrigerator you sold from your shop?

□ GODREJ □ WHIRLPOOL □ KENSTAR □ LG

□ SAMSUNG □ VIDEOCON □ KELVINATOR

6) What is the important parameter for more sales of Refrigerator brand?


7) Which is major brand of Washing Machine you sold from your shop?

□ IFB □ WHIRLPOOL □ KENSTAR □ LG

□ SAMSUNG □ VIDEOCON □ KELVINATOR □ GODREJ

8) What is the important parameter for more sales of Washing Machine

brand?


9) Which is major brand of DVD you sold from your shop?

□ SAMSUNG □ LG □ VIDEOCON □ ONIDA

□ SANSUI □ PHILIPS □ INTEX □SONY

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10) What is the important parameter for more sales of DVD brand?


11) Which is major brand of Microwave you sold from your shop?

□SAMSUNG □ LG □ VIDEOCON □ KENSTAR

□ GODREJ □ PHILIPS □ BAJAJ □SONY

12) What is the important parameter for more sales of Microwave

brand?


13) Which company’s product you give high profit margin?

□ SAMSUNG □ LG □ VIDEOCON □ SONY

□ WHIRLPOOL □ GODREJ □ PHILIPS □ KENSTAR

14) What are your suggestions for SAMSUNG to increase the sales?

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B). LIST OF DEALERS:

Sl.No. Dealers Shop Contact Person Contact No

1 AB TRADE LINKS OSTIN BEN 0474 2747953

2 ALLIANCE HOME APPLIANCES Y.A JALEEL 0476 2081178

3 AMBILY ENTERPRISES THULASIDHARAN 0476 2851016

4 AMBILY ENTERPRISES PRASANNAN 0476 3090567,

5 AMR APPLIANCES RASHEED 0475 2350425

6 ANAND ELECTRONICS ANAND 0476 2832101

7 ANAND RADIOS RAVEENDRAN 0474 2710214

8 ANCY ELECTRONICS ABDULRASHEED 0476 2831714

9 ANJU ELECTRONICS VISWAN 0475-2465097

10 ANJUS HOME APPLIANCES KRISHNAN 0476 285267

11 ANU AGENCIES BAHULEYAN 0474 2424607

12 ARCHANA TRADERS KRISHNAKUMAR 0476 2620742

13 AUDIOTRACK SUDARSANAN 0474 2522130

14 BEELINE HOME APPLIANCES SHAJAHAN 0474 2591288

15 CHERIYANS P T CHERIYAN 0475 2272274

16 CHIRAYIL AGENCIES MUHAMMED ANWAR 0474 2537555

17 CHIRAYIL ENTERPRISES A. AMANULLA 0474 2573266

18 CHOICE AGENCIES MUJEEB.M 0475 2323867

19 DARSANA TRADERS D.V SATHEESAN 0476 2627823

20 ELECTRO VISION HOME APPLIANCES JAYAN 0474 2524324

21 ELITE HOME APPLIANCES THANGAL KUNJU 0476 2621272

22 GALAXY HOME APPLIANCES RAHIM 0474 2573724

23 GEMINI TRADERS SUNNY JAMES 0476 2620536

24 GRAND MASTER RAGHU.G 0476 2622345

25 GRIHASREE HOME APPLIANCES CO-BA-OM-KUTTAN 0475 2226212

26 GRIHLAKSHMI HOME APPLIANCES CO-OP- BANK ( REJI) 0474 2423424

27 HOME PLAZA HOME APPLIANCES PRASNNAN 0475 2328965

28 JACOB&COMPANY TONY JACOB 0474 2452327

29 KAIRALI HOME APPLIANCES MANIKUTTAN 0474 2466631

30 KALEEKAL HOME APPLIANCES RATHEESH 0474 3250236

31 KALLUMKAL BROTHERS ROY K PAPPACHAN 0475 2274288

32 KAYPEES BABUKUTTAN 0475 2223302

33 KIRAN HOME APPLIANCES LUCOSE 0474 2530780

34 K N K AGENCIES MATHEW 0476 2345678

35 K P ELECTRONICS KUMAR 0475 2318328

36 KUMAR HOME APPLIANCES P S PRAMOD 0474 3091777,

37 LAVANYA PARAKKADAVU SUDHEESH KUMAR 0476 2862659

38 MARUTHI ELECTRONICS K GEORGE 0474-2415411

39 MAS ENTERPRISES& ELECTRONICS M.A SATHAR 0474 2576905

40 MAXCEL AGENCIES GOPLAKRISHNAN 0474-2745755

41 MERLION HOME APPLIANCES SHIJU 9447056401

42 OMANA ELECTRONICS JAYAKUMAR 0474 2456177

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43 P.J ELECTRONICS& HOME APPLIANCES C.PUSHPARAJ 0475 2293164

44 PRASANNA HOME APPLIANCES MADHUSOODHANAN 0474 2482205

45 QUILON RADIOS VIJAYAKANTHAN 0474 2740494

46 RESHMI HOME APPLIANCES RAVEENDRAN 0476 2896491

47 S&A HOME APPLIANCES AJITH 0476 2858200

48 SAKTHI AGENCIES NJANESWARAN 0475 2354830

49 SPECTRUM RAMACHANDRAN 0474 2530405

50 SREESAI AGENCIES DIVAKARAN 0475 2250153

51 SREEVINAYAKA HOME APPLIANCES SANTHOSH 0474 2418967

52 SULTHANIA ELECTRONICS A.FAKRUDEEN BAVA 0474 2422251

53 SUPREME HOME APPLIANCE SANTHOSH 0476 2620282

54 SUSHARA HOME APPLIANCES SURESH 0474 2419085

55 SUSHARA HOME APPLIANCES SAJITH 9387904243

56 THACHIRAYATTHU HOME APPLIANCES MUHEMMED SALIN 0476 2686483

57 THARANGINI HOME APPLIANCE NIZAM 0476 3954069

58 THARATTU HOME APPLIANCES REJI 04734 283677

59 VIGNESH ENTERPRISES RAJAN 9846413447

60 VIKAS HOME APPLIANCES SURESH 0475 2322089

61 VK ENTERPRISES RAJASEKHARAN 9895603030

62 ZODIAC HOME APPLIANCES ANOOP.V 0474 2423206

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BIBLOGRAPHY

http://www.samsung.com/in/aboutsamsung/index.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html

http://www.samsung.com/in/consumer/index.html

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http://www.samsung.com/in/aboutsamsung/index.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html

http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html

http://www.samsung.com/in/consumer/index.html

study on the consumer durables marke

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