PROJECT REPORT ON

BRAND PERCEPTION OF REFRIGERATORS WITH SPECIAL REFERENCE TO LG, SAMSUNG AND WHIRLPOOL

In partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS ADMINISTRATION

Submitted to Mrs. Taranjeet Kaur Management Faculty

Submitted by Khushdeep Kaur University Roll No. 1106264

KHALSA INSTITUTE OF MANAGEMENT AND TECHNOLOGY FOR WOMEN, CIVIL LINES, LUDHIANA (2012-2013)

DECLARATION
I hereby declare that report entitled BRAND PERCEPTION OF
REFRIGERATORSWITH SPECIAL REFERENCE TO LG, SAMSUNG AND

WHIRLPOOLof submitted in partial fulfillment of the requirement for the degree

of Bachelor of Business Administration of Punjab Technical University, Jalandhar is my original work & has not been submitted for the aware of any other degree at this university.

Place : Ludhiana Date :

Khushdeep Kaur

ACKNOWLEDGEMENT
As I write this acknowledgement, I must mention that this is not just a formal acknowledgement but also a sincere note of thanks and also regard from my side. I feel a deep sense of gratitude and affection for the Management Faculty and Director Sir, Mr. Vijay Asdhir, who helped and guided in this project. I am thankful to Mrs. Taranjeet Kaur Project Guide, whose constant guidance had given very valuable suggestion in completing my project successfully. I feel immense pleasure to give the credit of my project work not only to one individual as this work is integrated effort of all those who concerned with it. In the end, I dedicate this effort of mine to those persons who are light of my life my parents who have been behind every successful endeavor in my life.

Khushdeep Kaur

PREFACE
In our two years degree program of BBA theres provision for doing summer training, after 5th semester. The essential purpose of this project is to given an exposure and detailed outlook to the student of the practical concept, which they already studied research. For this purpose, I was assigned the project for the
BRAND PERCEPTION OF REFRIGERATORSWITH SPECIAL REFERENCE TO LG, SAMSUNG AND WHIRLPOOL It is a matter of great privilege to get training in

Marketing of Whirlpool and their competitor. The project lasted for a period of six weeks; it was informative, interesting and inspiring.

CONTENTS
Sr. No. 1. 2. TITLE Introduction Company Profile: Whirlpool Introduction Core Competence Mission and Vision Whirlpool In India Values History Board Of Directors Awards and Recognition Company Profile: LG Company Profile: Samsung Objectives of the study Research Methodology Analysis and Interpretation Results and Findings Conclusions Limitations Suggestions and Recommendations Bibliography Questionnaire PAGE NO. 1-56-10 6-2511-31
Formatted: Line spacing: single

3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

26-2832-34 29-3135-37 32-3338-39 34-3740-43 38-5144-57 52-5358-59 54-5560-61 56-5762-63 58-5964-65 60-6166-67 62-6568-71

Introduction

REFRIGERATOR INDUSTRY IN INDIA

Refrigerators have been manufactured in India since 1950s. Till the 1980s, players like Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Earlier, the white goods sector was categorized as a luxury goods industry and was subject to oppressive taxation and licensing. The situation changed after the liberalization of the Indian economy in the early 1990s. The government removed all restrictions, and now there is no restriction on foreign investment, and licenses are no longer required.Postliberalization, a number of foreign companies entered the market and many domestic players also diversified into refrigerators. BPL and Videocon, who already had a presence in the consumer electronics market, leveraged their strengths to enter the durables sector. In India, refrigerators have the highest inspirational value of all consumer durables, with the exception of televisions. This accounts for the high growth rate of the refrigerator market. The refrigerator market has been growing at a rate of about 15% per year, while the consumer durables industry as a whole has grown at almost 8%. The size of the refrigerator market is estimated to be 3.5- 4 million units approximately, valued at Rs 50 billion. The domestic penetration rate of refrigerators is about 9%. The penetration of refrigerators is considerably higher in urban areas, which account for 75% of the demand, with rural areas constituting the other 25%. There are two basic types of refrigerators manufactured in India, Direct-Cool and Frost-Free. Till the 1990s, only direct cool refrigerators were used in India. The refrigerator industry is highly competitive which implies a high premium on quality of the product. Manufacturers of refrigerators have, in general, improved the quality of the product, especially the reliability of the compressor. In so far as new technology is concerned the concept of "Frost free" refrigerators has been gaining popularity. Non-CFC (Non Chlro-fluro-carbons) refrigerators are being manufactured in the country but because of their high initial cost the demand is sluggish.

Refrigerator business is more mature. If you take the North India, the penetration is higher than that of Televisions. Only in the South is it the other way around. It grew at 8 per cent last year. In the last two years, Samsung and LG have given a lot more attention to the color television business. BPL which did so well with the frost-free when they launched it, have not been very active. So it is more like the business has not had its support. Rural markets contribute around 24 per cent to demand for 8-9 years. This has not gone up or down which means that the rural markets have been growing by and large with the rest of the country. In the refrigerator business, there is a controversy on who is the biggest. Whirlpool says it is the largest, while L.G says it is. It is very difficult to say. But we can assume that they are on a par as brands. In terms of companies, Electrolux is the largest with a few brands added together. Between the three of them they command approximately 70 per cent of the market. Change is not expected. One of the reasons cited for this low level of penetration is the extremely negligible effort by the industry to propagate the utility of the product, industry insiders' state. "The players talk about the technology used by them but they never talk about the usage of the product in today's life," analysts point out. "During the current year, the refrigerator industry has experienced marginal growth. In volume terms, the growth has been to the tune of 8 per cent to 10 per cent, while in value terms it is negligible," market watchers told Business Line. Whirlpool (India) has been constantly innovating and highlighting new USPs (Unique Selling Propositions) for its refrigerators. Starting with the 'Fast Forward Ice' innovation, the company has lately brought in what it claims is the world's first single-door frost-control refrigerator with which it plans to enter the mass segment. Conventionally, Direct-Cool fridges are single door while Frost-Free refrigerators have double doors. According to Arvind Mendiratta, the CEO of Whirlpool (India), the company aims to cater to both the direct cool and frost-free segments. He says that though frost-free 3

technology is superior, in India most people prefer direct cool due to frequent power shortages and eating habits. Hence the new range has been developed combining the benefits of frost-free and direct cool. Whirlpool also introduced the Sixth Sense proprietary technology, which automatically maintains the requisite temperature inside the fridge. The sixth-sense frostcontrol refrigerators provide the benefit of total freedom from defrosting and cleaning water puddles besides being high capacity refrigerators with additional space Whirlpool fridges, he disclosed, are priced at an approximately three per cent premium mainly because of their superior technology. But we do not want to be a niche player. We want to be in the market where volume is adds Mendiratta. Rajiv Karwal, managing director and CEO, Electrolux, feels the market for refrigerators is huge and largely untapped. He is confident that their new external batterypowered fridge will create a huge demand for fridges with power back-ups. Clearly the USP of the product is electricity or the lack of it. This year LG has launched products catering to both ends of the spectrum. While on the one hand it launched an extremely hi-end product aimed at strengthening its digital product portfolio the TV refrigerator called TV Dios and on the other hand it is bringing in a Rs5,000 fridge to cater to the rural markets. According to trade journals, Whirlpool Indiais the leader in the domestic refrigerator industry, with a 26-per cent share. A majority of the company's revenues, about 65 per cent, come from refrigerators Whirlpool is now contemplating a significant shift in its focus areas and is eyeing the huge air-conditioner and microwave market in the country for its future growth and comfortable margins. Whirlpool officials said enhanced competition and significant price erosion due to a steep rise in input prices of commodities, in the refrigeration segment, have put the company's margins under severe pressure.

A recent FICCI report has provided a silver lining of sorts to the dismal industry scenario by pegging the growth of consumer durable goods in the rural markets at around 25 per cent as against 7-10 per cent in urban areas in the last financial year. Companies like LG have already been reaping the fruits of its rural focus. According to the company, 55 per cent of its Rs4,500-crore turnover last year was contributed by the rural and semi-urban markets.

Company Profile
Whirlpool

WHIRLPOOL

INTRODUCTION Whirlpool Corporation is the world's leading manufacturer and marketer of major home appliances, with annual sales of more than $19 billion in 2011, 68,000 employees, and 66 manufacturing and technology research centers around the world. 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. Whirlpools international outlook was initiated in 1958 when it entered Brazil, but it was the 80s that marked the beginning of Whirlpools aggres sive strategy to be a world-wide competitor. India was identified as a growth market in late 80s 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. This expanded the company's portfolio in the 7

Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners.In the year ending in March '09, the annual turnover of the company for its Indian enterprise was Rs.1,719 Crores. 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 companys superb brands, products and services. Whirlpool Corporation entered India in the late 80s and today has grown to become one of the leading manufacturers and marketers of major home appliances in India. Whirlpools 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 Worlds 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 endeavor 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. Whirlpools products are stylish, modern and contemporary with elegant looks and reflect the sense of pride homemakers take in choosing them for their homes. 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. Whirlpools 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 8

Pune. This facility has set the standards as one of the worlds front runners in environmentally sensitive eco-friendly manufacturing units. Products manufactured in the above facilities match Whirlpools global standards and are exported to over 70 countries across the globe. Whirlpool India is today Indias largest exporter of home appliance and has been approved as an Export House. Design Engineering is being developed as a core competency for Whirlpool India. A step in the direction has resulted in the setting up of Regional Technology Centers at Pune and 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. The products of Whirlpool 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.

Core Competence

CORE COMPETENCE

Innovation

Customer Excellence

Operational Excellence

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.

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Mission And Vision

MISSION

Everyone, Passionately Creating Loyal Customers for Life Our mission defines our focus and what we do differently to create value. We are a company of people captivated with creating loyal customers. From every job, across every contact, we will build unmatched customer loyalty one customer at a time.

VISION

Every Home, everywhere, with pride, passion and performance OUR vision 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.

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WHIRLPOOL PROGRESS IN 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, Kitchen Aid, 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 '06, the annual turnover of the company for its Indian enterprise was Rs.1,375 Crores. According to IMRB surveys Whirlpool enjoys the status of the single largest refrigerator and second largest washing machine brand in India.

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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

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Formatted: Normal, Pattern: Clear

Formatted: Font: Bold

Values

RESPECT

SPIRIT OF WINNING

INTEGRITY

VALUES

TEAMWORK

DIVERSITY

Respect
Great results can be achieved through relationships built on trust, encouraging diversity and making the most of every individual's potential and contribution. Work is only one of the elements of a fulfilling and rewarding life.

Integrity
Working in a correct, responsible way is important. There is no right way of doing the wrong thing. Maintaining the highest possible standards of personal, professional and legal conduct, whilst treating the others with the utmost respect, is of fundamental importance.

Diversity
Diversity creates value. Multiple diverse points of view is the soul of innovation and the basis for Whirlpool Corporation's success in Europe. A culture that can embrace and value

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diversity and inclusion motivates every individual to excel, stimulating passion and the free expression of ideas.

Teamwork
Working together brings pride and frees up the potential of every individual. Through collaboration and the confrontation of ideas, great results can be achieved.

Spirit of Winning
The awareness of being a leader generates pride and motivation to face the new challenges of the market. Our goal is to be recognized and respected as one of the world's best companies to work for.

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History

1911

Louis Upton founded the Upton Machine Company in this year to produce motor-driven wringer washers.

1916 1929

: :

First order of washers was sold to Sears, Roebuck & Co. Upton Machine Company merged with Nineteen Hundred Washer Company of NewYork.

1948

First 'Whirlpool' brand automatic washer with dual distribution was introduced. It included two product lines one each was distributed through Sears and Nineteen Hundred.

1958

The company moved out of country for the first time and invested in Brazilian appliance market through purchase of equity in Multiparas, S.A

1968

The Elisha Gray II Research & Engineering Center was completed in BentonHarbor. In the same year the company's revenues crossed the legendary $1 Billion mark for the first time.

1978

Within a decade company doubled its feat of $1 Billion mark and reached the $2 billion revenue level.

1987

Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS Whirlpool Ltd.

1989

This was a historic year since the revenues catapulted to heights of over $6 Billion mark. Also, the joint venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe.

1990

Company established joint venture with Matsushita Electric Company of Japan to produce vacuum cleaners for the North American market.

1991

The Company introduced and committed globally to its Worldwide Excellence System, which is a TQM program dedicated to exceeding customer expectations. The vision to globalize 'Whirlpool Corp. was realized in the same year. 20

1993

First time Whirlpool became the No.1 stand-alone brand in UK, Ireland, Netherlands and Belgium

1995

Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC manufacturing facility of Kelvinator India was also acquired.

1996

Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to form Whirlpool of India Ltd.

1998

This year gave birth to a new company vision that says, "Every Home Everywhere with Pride, Passion & Performance."

1999 2002

: :

Whirlpool of India crossed the milestone of 1 million sales of appliances. The 'Whirlpool Strategic Architecture' was launched as a framework to achieve the vision. The revenues of Whirlpool Corp. soared to $10.5 Billion.

2004

Whirlpool India registered profit & sold 1.2 million appliances. It also achieved the No.1 position in DC & FA.

2005

The Aircon range was successfully launched and the Whirlpool of India acquired 6% market share.

2006

A new mission statement of "Everybody creating loyal customers for life" was adopted.

2007

Whirlpool Corporation acquires Maytag and become the Worlds largest white goods company.

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BOARD OF DIRECTORS AND COMMITTEES

Chairman and CEO:

Jeff M. Fettig

Executive Committee:
Marc Bitzer Esther Berrozpe Galindo David Szczupak Larry Venturelli David A. Binkley Joao C. Brega Kirsten Hewitt Michael A. Todman

Board of Directors (India)

Arvind Uppal (Chairman & Managing Director) Mr. Vikas Singhal(Executive Director) Anil Berera Mr. Sanjiv Verma S.J. Scarff Anand Bhatia

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AWARDS AND RECOGNITION

Awards and Recognition: 2012

1. ICWAI....National Award for Excellence in Cost Management - Silver 2. Trophy for Export Excellence in EPO Service for outstanding export performance. 3. Whirlpool ACE Washing Machine received the Silver Medal in the prestigious international Edison Awards for being the best new product in the Lifestyle and Social Impact category.

2011
1. #14 Best Employers in India 2011....Aon Hewitt 2. # 9 Top Companies for Leaders Asia Pacific 2011...Fortune Aon Hewitt 3. Best Employers in Asia Pacific 2011....Fortune Aon Hewitt 4. Readers Digest Trusted Brand Gold Award (2010-2011) for Refrigerators and Washing Machines 5. Whirlpool Pondicherry Washer Facility Gold Award in Economic Times Frost & Sullivan Manufacturing Excellence Award - 2011 6. CEAMA Appliance Man of the Year for Arvind Uppal.

2010
1. Product of the Year 2010 1-2-3 Washing Machine....best innovative product in the Washing Machine Category 2. Readers Digest Trusted Brand Gold Award (2009-2010) for Refrigerators and Washing Machines 3. #1 India's Best Company for Leadership Development by Great Place to Work 4. #15 India's Best Companies to Work for by Great Place to Work 5. Best Consumer Durables Company...Dun & Bradstreet Corporate Awards 2010. 25

COMPETITOR PROFILE
LG

LG

Established in 1958, LG Electronics, Inc. (LG) is a global leader and technology innovator in consumer electronics, home appliances and mobile communications, employing more than 82,000 people working in over 110 operations including 81 subsidiaries around the world. Comprising four business units - Mobile Communications, Digital Appliance, Digital Display and Digital Media with 2006 global sales of USD 38.5 billion - LG is the world's leading producer of CDMA/GSM handsets, air conditioners, front-loading washing machine, optical storage products, DVD players, flat panel TVs and home theater systems.

BRAND IDENTITY
LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic logo are a great representation of what they stand for. Global, Tomorrow, Energy, Humanity and Technology are the pillars that this corporation is founded on; with the capital letters L and G positioned inside a circle to center our ideals above all else, humanity. The symbol mark stands for their resolve to establish a lasting relationship with, and to achieve the highest satisfaction for their customers. The letters "L" and "G" in a circle symbolize the world, future, youth, humanity, and technology. Their philosophy is based on Humanity. Also, it represents LG's efforts to keep close relationships with their customers around the world. The symbol mark consists of two elements: the LG logo in LG Grey and the stylized image of a human face in the unique LG Red color. Red, the main color, represents the friendliness, and

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also gives a strong impression of LG's commitment to deliver the best. Therefore, the shape or the color of this symbol mark must never be changed. The LG logo is the fundamental visual expression used to identify LG. It expresses the quality and sophistication that is the hallmark of LG products. It is simple, modern and distinctive. Consistent and proper usage of the logo is absolutely essential. The logo is symbolic of our steadfast reputation for excellence; therefore, any variation of the logo diminishes the visual identity of LG Electronics and its products.

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COMPETITOR PROFILE
Samsung

SAMSUNG

Samsung India is a 100 per cent owned subsidiary of Samsung Electronics Co., Ltd. (SEC) in India. Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2007 parent company sales of US$63.4 billion and net income of US$8.5 billion. Employing approximately 138,000 people in 124 offices in 56 countries, the company consists of five main business units: Digital Media Business, LCD Business, Semiconductor Business, Telecommunication Network Business and Digital Appliance Business. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones and TFT-LCDs

The Samsung Philosophy

Samsung follows a simple business philosophy: to devote their talent and technology to creating superior products and services that contribute to a better global society. Every day Samsung people bring this philosophy to life. Our leaders search for the brightest talent from around the world and give them the resources they need to be the best at what they do. The result is that all of our productsfrom memory chips that help businesses store vital knowledge to mobile phones that connect people across continents have the power to enrich lives. And thats what making a better global society all is about..

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Values
Excellence Everything we do at Samsung is driven by an unyielding passion for excellenceand an unfaltering commitment to develop the best products and services on the market.

Integrity Operating in an ethical way is the foundation of our business. Everything we do is guided by a moral compass that ensures fairness, respect for all stakeholders and complete transparency.

Co-prosperity A business cannot be successful unless it creates prosperity and opportunity for others. Samsung is dedicated to being a socially and environmentally responsible corporate citizen in every community where we operate around the globe.

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Objectives Of Study

OBJECTIVES
Brand Perception of Refrigerators and strategies to improve it, with special reference to LG, SAMSUNG and WHIRLPOOL. 1. To analyze the overall perception regarding brand of refrigerators. 2. To find out the consumers perception towards LG, SAMSUNG and WHIRLPOOL. 3. To recommend strategies to improve customer perception. 4. To understand the customer needs and requirements regarding refrigerators. 5. To analyze factors affecting customer perception.

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Research Methodology

RESEARCH METHODOLOGY
The research methodology that I undertook for the purposes of this study is enumerated below TYPES OF RESEARCH Data collection format i.e. the questionnaire was designed and pilot tested. After necessary modifications, the final format was designed and data was collected. RESEARCH DESIGN Descriptive Descriptive studies are well- structured, they tend to be rigid and its approach cannot be changed every now and then. Descriptive studies can be divided into two broad categories: a) b) Cross- sectional Longitudinal

Descriptive studies are undertaken in many circumstances: 1. When the researcher is interested in knowing the characteristics of certain groups such as age, educational level, occupation or income. 2. When the researcher is interested in knowing the proportion of people in a given population who have behaved in a particular manner, making projections of certain thing 3. Or when he wants to determine the relationship between two or more variables. The objective of this kind of a study is to answer the who, what, when, andhow of the subject under consideration.

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I will be taking DESCRIPTIVE because my research includes knowing the perception of customers towards Refrigerator, I will be working on to know how people respond to Refrigerator or their perception.

SAMPLING DESIGN a) Sampling unit: It consists of general public. b) Sampling size: The overall sample involved consisted of 100 individuals. It was fixed before hand and every effort was made to cover the given number of individuals with available time for the collection of data for this project. c) Contact method: The respondents were personally interviewed. d) Analysis method: The data was tabulated and frequency distribution was developed. The percentages are computed for different variables. TOOLS In the research tools are used as graphical presentation. SIZE OF SAMPLE The overall sample involved consisted of 100 individuals. It was fixed beforehand and every effort was made to cover the given number of individuals with available time for the collection of data for this project. DATA COLLECTION Research project is affected very much by data collection method. Reliability of the collected data depends a lot on the method of data collection. The data is collected through: Primary Data Secondary Data

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Primary Data For the purpose of collecting primary data, the survey method was used and where this study is mainly based on the primary data. Structured formats were administrated to get firsthand information, from the consumers who are associated with the Internet Service Providers. Secondary Data: Websites Magazines Brochures

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DATA ANALYSIS AND INTERPRETATION

Table 1:Number of consumers having a refrigerator Response Yes No Number of consumers 100 0

Consumers having Refrigerator

0.00%

Yes

100%

No

INTERPRETATION Percentage of respondents who are having a refrigerator is 100%. This highlights that refrigerator is the most common and essential appliance nowadays.

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Table 2:BRAND OWNERS Brand Name LG SAMSUNG WHIRLPOOL OTHER Number of Owners 35 27 23 15

35% 35 30 25 20 15 10 5 0 LG SAMSUNG WHIRLPOOL OTHER 27% 23% 15%

Brand Owner
INTERPRETATION Percentage of respondents who have LG refrigerators is around 35%,Whirlpool comes second with 23%, Samsung comes third with 27% and 15% respondents are having other brand then these three.

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Table 3:Brand Loyalty Period of using current Brand Less than 1 Year 1-4 Years More than 4 Years Number of Respondents 14 26 60

0%

14%

26% 60%

Less than 1 Year 1-4 Years More than 4 Years

Brand Loyalty

INTERPRETATION Level of brand locality is very high as the above result highlights 60% respondents are using their current brand of refrigerator for more than 4 years and only 14% respondents are using for less than 1 year.

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Table 4:Size Preference of Refrigerators Size Less than 165 liter 165 liter 300 liter More than 300 liter Number of Owners 6 18 71 5

Size Prefernce
80 70 60 50 40 30 20 10 0 Less than 165 liter 165 liter 300 liter More than 300 liter 6% 18% 5% 71%

INTERPRETATION The above result highlights that most of the respondents own a refrigerator of 300 liter size. As the 71% respondents have said that they have refrigerator of 300 liter capacity. Only 18% respondents are having refrigerator of 165 liter. So now customer perception is positive for 300 liter refrigerator and they do not want very small or large refrigerator.

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Table 5:Perception about Refrigerator in the Mind of Meaning to Respondents Requirement Status symbol Long term expenditure Short term expenditure

Respondents

Number of Respondents 75 8 15 2

80 70 60 50 40 30 20 10 0

75%

15% 8% 2% Requirement Status symbol Long term expenditure Short term expenditure

INTERPRETATION The above results show that most of the respondents considered refrigerator as a requirement rather than status symbol, long term expenditure or short term expenditure. 75% respondents considered refrigerator as a requirement in this survey.

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Table 6:Most Attractive Factor or Factors in Refrigerators as per Consumers. Factor/Factors Functionality Color Brand Name Any Other Functionality and Color Functionality and Brand Name Number of Respondents 54 4 35 1 2 4

Features
60 50 40 30 20 10 0

INTERPRETATION Functioning is the most important feature for the consumers in the refrigerators. As 54% respondents have selected as most attractive feature in the refrigerators. Brand name comes second with 35% respondents selection.

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Table 7:Brand Preference Level among Respondents Brand Name LG SAMSUNG WHIRLPOOL Number of Respondents Ranked a Brand Number 1 40% 20% 40%

Brand Preference Level

0%

40%

40% LG SAMSUNG WHIRLPOOL 20%

INTERPRETATION The survey shows that LG and Whirlpool are strong competitors and they are the market leaders in the region. LG is ranked number one brand of refrigerator by 40% respondents and 39% respondents ranked Whirlpool as number one brand of refrigerator.

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Table 8: Factors Influencing the Buying Decision of Respondents/Consumers. Factors Advertisement Personal Sources Discounts/offers Price Customer Care Services Number of Respondents 10 25 2 61 2

Factors Influencing Decision

Advertisement 10%

Personal Sources 26% Price 62%

Discounts/offers 2%

INTERPRETATION Price is the most important factor which influences the buying decision of consumers as 61% respondents ranked price as number one factor. Second major factor is personal sources (friends and relatives).

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Table 9:Satisfaction Level of the current brand Satisfaction Level Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Number of Respondents 31 50 11 3 3

Satisfaction Level
3% 33% Highly Satisfied Satisfied Neutral Dissatisfied 53%

11%

INTERPRETATION This result shows that respondents or consumers are having high degree of satisfaction level. As 50% respondents are satisfied with their current brand of refrigerator and 31% respondents are highly satisfied. Only 3% respondents are dissatisfied with their current brand of refrigerator

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Table 10:Most Important Feature or Features at the time of Purchaseofrefrigerators as per the Respondents. Features Space Cooling Level Freezer Easy Maintainability Combination of two or more features Number of Respondents 22 28 3 33 14

Features
35 30 25 20 15 10 5 0 Space Cooling Level Freezer Easy Maintainability Combination of two or more features 3% 14% 22% 28% 33%

INTERPRETATION

In the survey of 100 respondents, it is found that Easy maintainability is the feature which matters most to the consumers at the time of purchase of refrigerator. 33% respondents have considered easy maintainability as most important feature. And 28% have considered cooling level as most important element at the time of purchase of refrigerator.

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Table 11:Source of Information for Consumers Regarding Refrigerators. Source of Information Newspapers Magazines T.V Trade Fairs Any Other Number of Respondents 6 8 49 24 13

Source Of Information
49% 50 45 40 35 30 25 20 15 10 5 0 Newspapers Magazines T.V Trade Fairs 6% 8% 24%

INTERPRETATION T.V is the major source of information regarding refrigerators as 49% respondents have select T.V as the source of information. Second major source is Trade fairs with 24% respondents believe.

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Table 12:Advertisement Effectiveness BRAND NAME LG Ads most effective SAMSUNG most effective WHIRLPOOL most effective Number of Respondents 32 26 42

Advertising Effectivness
0% 32% 42% LG Ads most effective SAMSUNG most effective WHIRLPOOL most effective

26%

INTERPRETATION The above result shows that 42% respondents ranked advertisement of whirlpool as most effective. So whirlpool is having highest degree of advertisement effectiveness. LG comes second on advertisement effectiveness and Samsung comes at third position.

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Table 13: Degree of changing Brand of Refrigerator by Consumers Decision Yes No Number of Respondents 37 63

Change In Brand
0% 0% Yes 37%

No 63%

INTERPRETATION Only 37% consumers would shift their brand of refrigerator, if given an opportunity. And 63% consumers would stick to their current brand of refrigerator. So it shows that consumers are brand loyal and also having high degree of satisfaction level.

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RESULTS AND FINDINGS

 In India most people prefer direct cool due to frequent power shortages and eating habits. LG Electronics India and Samsung Electronics are the leaders in the frost-free segment in the market and are growing the fastest in the category. Price is the most important factor which influences the buying decision of customers regarding refrigerators. Brand loyalty is very high among the customers of refrigerators as 102 respondents out of 200 are using their current brand of refrigerator for more than 4 years Refrigerators are considered as requirement by most of the respondents The Indian refrigerator market is very small and accounts for sales of around 3.5 million units per year. Satisfaction level is very high among the customers of refrigerators as around 103 respondents are satisfied and 63 respondents are highly satisfied with their brand of refrigerator Despite a reduction in the customs and excise duty, from about 14 per cent in 1998 to 8 per cent in 2003, levied on the refrigerators segment most companies are still making losses. In India, direct cool refrigerators are estimated to account for 85 per cent of the total fridge market. LG is truly a market leader vis--vis competitors Have higher market share around 30% as compared to competitors.

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CONCLUSION

CONCLUSIONS
We expect the present growth of refrigerators industry to continue during the rest of the fiscal year. With the globalization and liberalization, foreign players are entering in the Indian refrigerator industry. Going forward, the consolidation of regional players is likely to continue. Launch of Door Cooling, PentaFresh Technology and other innovations will increase the size and growth of the industry but with declines in profits and surpluses, which could put pressure on margins. In such a competitive scenario, Exchange offers, new innovative product introductions, cutthroat pricing, easy financing, the refrigerator makers in the country are using just about every trick in the book to push their products. LG is already way ahead in terms of infrastructure, market share and a very satisfied customer base on the other hand Samsung needs to improve upon its market share before it is too late. Whirlpool is having enough market share and best advertisement and sales promotional activities

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LIMITATIONS OF STUDY

LIMITATIONS OF THE STUDY Some respondents are not interested to interact with us. Sales of refrigerators are around 3.5 million units per year so the sample size was too small to reach to a definite conclusion and it cannot represent whole universe. Survey is done in Ludhiana which is urban area so rural areas gets ignored in this survey.

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SUGGESTIONS AND RECOMMENDATION

SUGGESTIONS & RECOMMENDATIONS Samsung should improve its advertisement policies and should indulge itself with events. Samsung is not considered as a premium brand use of celebrity and change in positioning strategy can help Samsung enhance its image as a premium brand. Samsung and LG are required to focus more towards innovation and creativity strategies. To increase the market share both Samsung and Whirlpool should take functioning and easy. Maintainability as most important features of refrigerators. All three players should improve their branding strategies. The major focus in branding should be on functioning and performance of refrigerator as customers look for high degree of performance first rather than brand name in refrigerators. Pricing strategies should be different for urban and rural customers. Price is the most important factor which influence the buying decision of customers

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BIBLIOGRAPHY

BIBLIOGRAPHY http://www.thehindubusinessline.com/businessline/iw/2000/06/18/stories/0518e2 http://www.thehindubusinessline.com/2003/12/14/stories/2003121401150200.htm http://www.domainb.com/marketing/general/2004/20040702_cool_machines.html www.icmr.icfai.org/casestudies/catalogue/Business%20Reports/BREP017.htm http://dipp.nic.in/industry/cons_dur.htm

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QUESTIONNAIRE

QUESTIONNAIRE Name : ____________________________________ Sex : __________ 1. Do you own a refrigerator? a) 2. Yes b) No

If yes then name the brand? a) c) d) LG Whirlpool b) Samsung

Other Please specify.

3.

For how long you have been using your current brand of refrigerator? a) b) c) Less than 1 years 1-4 years More than 4 years

4.

What is the capacity of your refrigerator? a) b) c) d) Less than 165 165 liter 300 liter More than 300

5.

What does refrigerator means to you? a) b) c) d) Requirement Status Symbol Long term expenditure Short term expenditure

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6.

Which factor/factors attract you more towards the a) b) c) d) Functionality Color

refrigerator?

Specify Brand name. Any other,Please specify.

7. Rank the following brands of refrigerators on the scale of1-3, 1 shows highest rank for liking and 3 shows lowest rank for liking. a) b) c) 8. LG Samsung Whirlpool

Rate the following factors which influence your buying decision regarding

refrigerators on the scale of 1-5, 1 is for most important factor and 5 is for least important factor. a)Advertisement b)Personal sources c)Discounts/offers d)Price e) Customer Care Services

9.

Rate your own brand of refrigerator on the Satisfaction level.

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

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10. At the time of purchase of refrigerator which of the matters to you most? a) b) c) d) e) 11. Space Cooling Level Freezer Easy Maintainability Any other Please specify

following feature or features

information with regard to 1-3, on the basis of

At the time of purchase what was the source of refrigerators? a) b) c) d) e) Newspapers Magazines T.V Trade Fairs Any Other Please specify

12.

Rank the following brands of refrigerators on the scale of advertisement effectiveness? 1 shows highest ranking and 3 shows lowest ranking. a) b) c) LG Samsung Whirlpool

13.

If given an opportunity would you like to shift your brand of refrigerator? a) Yes b) No

14.

If yes then which brand will you prefer? a) c) d) LG Whirlpool b) Samsung

Any other Please specify

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