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RESEARCH REPORT ON

CONSUMER DURABLES

SUBMITTED TO: Mr. Sandeep Singh Associate professor SMS,Varanasi

SUBMITTED BY: Ashish Kr. Singh Roll No . 11460026 BBA 6th Semester

DECLARATIONS

I hereby declare that report entitled CONSUMER DURABLES submitted by me in partial fulfilment of the requirements for the Bachelor of Business Administration (BBA), is my original work and that it has not previously formed the basis for the award of any other Degree, Diploma, Fellowship or any other titles.

Place: Date: Candidates Signature

ACKNOWLEDGEMENT

At the outset, I take the privilege to convey my sincere gratitude to those whose co-operation; suggestions and support helped me to accomplish the project work successfully. I would like to express my deepest sense of gratitude to respected Mr.Sandeep singh and my faculty guide for their valuable guidance, inspiration and encouragement. Also I would also like to express my special thanks to our program Co-ordinator Mr. Atish Khadse and all the faculty members for their constant help for the completion of the project. Their ever available encouragement and enlightening guidance has been of immense help towards the successful completion of the project. Above all, I would like to express my deep gratitude to my parents for providing me the moral support without which it was impossible to complete the project.

PREFACE

As this Research report is a part of BBA course, it gives a great pleasure for me to get Research report and present the same through analysis and interpretation on Consumer Durables. The Research report was conducted by secondary Research report method in which secondary data recorded by internet.

TABLE OF CONTENTS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

INTRODUCTION CONSUMER DURABLE GOODS INDUSTRY PROFILE ANALYSIS FINDINGS OBJECTIVES RESEARCH METHODOLOGY CONCLUSIONS SUGGESTIONS LIMITATIONS BIBLIOGRAPHY

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 income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their 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, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into Indian market dethroning the Indian

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

Consumer Durable Goods

Understand the meaning and categories of consumer durable goods followed by a short discussion on performance of consumer durable industry in past and its outlook for future. Understand the key challenges that are faced by companies operating in consumer durable industry. Highly durable goods such as refrigerators, cars, or mobile phones usually continue to be useful for three or more years of use, and hence durable goods are typically characterized by long periods between successive purchases. These durable goods are referred to as Consumer Durables and examples of consumer durable goods include cars, household goods (home appliances, consumer electronics, furniture, etc.), sports equipment, and toys. As the second purchase for durable goods lags time difference, generally they are sold on a higher margin. 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 cellphones and kitchen appliances like microwave ovens are also included in this category. The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc.

The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment are as follows. White Goods

Kitchen Appliances Refrigerators Washing Machines Air-conditioners Speakers and Audio Equipment

Kitchen Appliances / Brown Goods Consumer Electronics


Mixers Grinders Microwave Ovens Iron Electric Fans Cooking Range Chimneys

Consumer Electronics

Mobile Phones Televisions MP3 Players DVD Players VCD Players iPad

Performance: In the past 10 years, the global market has witnessed a surge in demand as economies such as Brazil, Mexico, India and China have opened up and begun rapid development. The consumer durables industry has always exhibited impressive growth despite strong competition and constant price cutting. There exists a very strong correlation between demand for durables and income. Leading players in this sector include Sony Corporation, Toshiba Corporation, Whirlpool Corporation and Panasonic Corporation. Developing countries such as India and China have largely been shielded from the backlash of the recession, as consumers continued to buy basic appliances. In fact, China has been ranked the second-biggest market in the world for consumer electronics. Despite the recession, their strong domestic economy and growing high-income population have buoyed demand leading to aggressive market growth. Challenges in Consumer Durable Industry: The challenges faced by Consumer Durable Industry are listed below:

Local industry dynamics Supply-related issues pertaining to distribution and infrastructure Demand issues due to competition from imported goods Lack of well-developed distribution networks Penetrating fastest growing rural areas Electricity availability Road infrastructure Systematic production

Labor availability Increasing choice from both domestically produced and imported goods Superior technology Steady flow of capital Well-acknowledged brands Extensive distribution network Insight in local market conditions- Learn more at www.technofunc.com. Your online source for free professional tutorials.

INDUSTRY PROFILE

The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. Instruments such as cell phones and kitchen appliances like microwave ovens were also included in this category. The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. The industry is represented by major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc. The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment were as follows.

Industry Size, Growth, Trends


The consumer durables market in India was estimated to be around US$ 5 billion in 2007-08. More than 7 million units of consumer durable appliances have been sold in the year 2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per cent share of volumes. CTV, refrigerators and Airconditioners together constitute more than 60 per cent of the sales in terms of the number of units sold. In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool segment has grown by 9 per cent. Companies like LG,

Whirlpool and Samsung have registered double-digit growth in the direct cool refrigerator market. In the case of washing machines, the semi-automatic category with a higher base and fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to 229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32 per cent and that of split ACs by 97 per cent. Since the penetration in the urban areas for these products is already quite high, the markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas. The growth across product categories in different segments is assessed in the following sections.

Consumer Electronics
The CTV production was 15.10 million units in 2007-08 and is expected to grow by at least 25 per cent. At the disaggregated level, conventional CTV volumes have been falling while flat TVs have grown strongly. Market sources indicate that most CTV majors have phased out conventional TVs and have been instead focusing more on flat TVs. The flat segment of CTVs now account for over60 per cent of the total domestic TV production and is likely to be around 65 per cent in 2007-08.High-end products such as liquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 per Cent respectively in 200910 following a sharp decline in prices of these products and this trend is expected to continue. The audio/video player market has seen significant growth rates in the domestic market as prices have dropped. This trend is expected to continue through 2009- 2010, as competition is likely to intensify to scale and capture the mass market.

India has an increasingly a fluent middle class population that, on the back of rapid economic growth, has made the countries consumer electronics industry highly dynamic. The industry had been witnessing significant growth in recent year due to several factors such as retails boom, growing disposable income and availability of easy

finance scheme. But still the consumers electronics goods such as Colour T.V. refrigerator, microwave, and washing machine have low penetration in the country., representing vast room for growth . This is attracting many

foreign players in country.


Since the penetration of several products T.V. refrigerators are reaching saturation in the urban areas the markets for this products are shifting to

the semi urban and rural area.

The Indian consumer

durables

industry

has

witnessed

considerable change in the past couple of years. Changing lifestyle,


coupled with greater affordability and a surge in advertising has been

instrumental in bringing about a sea change in the consumer behavior

pattern.
This industry consists of durable goods used for domestic purposes such as televisions, washing machines, refrigerators, microwave ovens, mobile phones etc. The growth in the consumer durables sector has been driven
primarily by factors such as the boom in the real estate & housing industry, higher disposable income, emergence of the retail

industry in a big way coupled with rising affluence levels of a considerable section of the population.

In Indian consumer durables industry, preferences products towards has been higher quite

shift

in

the advance

consumer branded

end, technologically

discernable. This shift can be explained by

narrowing differentials between the prices of branded and unbranded products added with the high quality of after sales service provided by the branded players. . The shift has also been triggered by the availability of foreign branded products in India owing to lower import duties coupled with other liberal measures as introduced by the government.

A major appliance, or domestic appliance, is usually defined as a large machine which accomplishes some routine housekeeping task, which includes purposes such as cooking, or food preservation, whether in a household, institutional, commercial or industrial setting. An appliance is differentiated from a plumbing fixture because it uses an energy input for its operation other than water, generally using electricity or natural gas/propane. An object run by a watermill would also be considered an appliance. The term white goods or whiteware[1] is also used for these items, primarily where British English is spoken, although definitions for the term "white goods" can differ. In the United States, the term white goods more commonly refers to linens rather than appliances.[2] Major appliances have become more technically complex from the control side recently with the introduction of the various Energy Labelling rules across the world. This has meant that the appliances have been forced to become more and more efficient leading to more accurate controllers in order to meet the regulations. Major appliances are differentiated from small appliances because they are large, difficult to move, and generally fixed in place to some extent. They are often considered fixtures and part of real estate and as such they are often supplied to tenants as part of otherwise unfurnished rental properties. Another frequent characteristic of major appliances is that they may have substantial electricity requirements that necessitate special electrical wiring to supply higher current and/or voltage than standard electrical outlets can deliver. This limits where they can be placed in a home.

Brands

A modern front-loading washing machine Major Appliance brands include such companies as Whirlpool, LG, B/S/H/ (Bosch & Siemens), Electrolux, Samsung, Godrej, Frigidaire, Dyson, AEG, Hitachi, Toshiba, Gorenje, Fujitsu, Haier, Midea, GE, Zanussi, Hotpoint, Candy, Mabe Mexico, Inglis, Kenmore Appliances, White Westinghouse, Indesit, Fagor, Beko, Blomberg, Vestel and Fulgor. A smaller number of distributors control groups of these brands

MAJOR PLAYERS OF CONSUMER DURABLES

Type

Public NYSE: WHR S&P 500 Component Household appliances St. Joseph, Michigan (1911) Louis Upton Emory Upton Benton Charter Township, Michigan, United States Worldwide Jeff M. Fettig (Chairman and CEO) Major and Small appliances US$ 18.143 billion (2012)[1] US$ 869 million (2012)[1]

Traded as

Industry Founded

Founder(s)

Headquarters

Area served

Key people

Products

Revenue

Operating income

Profit

US$ 401 million (2012)[1] US$ 15.396 billion (2012)[1] US$ 4.260 billion (2012)[1] 68,000 (2012)[1] www.whirlpoolcorp.com

Total assets

Total equity Employees Website

Whirlpool Corporation is an American multinational manufacturer and marketer of home appliances headquartered in Benton Charter Township, Michigan, United States, near Benton Harbor, Michigan.[2][3] The company is listed in Fortune 500 and has annual revenue of approximately $18.4 billion, more than 70,000 employees, and more than 70 manufacturing and technology research centers around the world. The company markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Gladiator GarageWorks, Inglis, Estate, Brastemp, Bauknecht and Consul. After acquiring the Maytag Corporation on March 31, 2006, the Whirlpool Corporation surpassed Electrolux to become "the largest home appliance maker in the world."[citation needed]

In the U.S., Whirlpool has 8 manufacturing facilities:Amana, Iowa; Tulsa, Oklahoma; Cleveland, Tennessee; Ohio: Clyde, Findlay, Greenville, Marion (and Ottawa). Chronology Year Inglis Ltd. changes its name to Whirlpool Canada. Whirlpool continues to 2001 market Inglis appliances to this day. Surpassed $10 billion in annual revenues. 2002 Surpassed $11 billion in annual revenues. 2003 Surpassed $12 billion in annual revenues. 2004 Surpassed $13 billion in annual revenues. Maytag Corporation shareholders voted to accept Whirlpool Corporation's 2005 stock purchase. U.S. Justice Department began a review of the merger. Surpassed $14 billion in annual revenues. Acquired the Maytag, including the Maytag, Jenn-Air, Amana, Jade, Magic Chef, Admiral, Hoover, and Dixie-Narco brands, after Justice 2006 Department approved the merger. Sold Dixie-Narco to Crane Co., and Amana Commercial to AGA. Surpassed $18 billion in annual revenues. Sold Hoover to Techtronic Industries, TTI Floorcare.[4] and Jade 2007 Appliances to Middleby Corporation. Also closed plants in Newton, Iowa; Searcy, Arkansas; and Herrin, Illinois. This resulted in the sudden loss of 4500 jobs in the affected communities.

Surpassed $19 billion in annual revenues. Location closings in La Vergne, Tenn; Reynosa, Mexico; and Oxford, 2008 Miss. Later the announcement of Dishwasher plant in Jackson, TN to close in August 2009 Whirlpool acquired WC Woods from Bankruptcy [5] and to keep Ottawa, 2009 OH plant open; Whirlpool to close Evansville plant;[6] Whirlpool has received $19.3 million in U.S. Department of Energy funding as part of its Smart Grid Investment Grant program [7] Whirlpool announced plans for its 100th Anniversary in 2011 and unveiled its 100th Anniversary logo as well as an updated corporate logo. 2010 The celebrations shall take place in Benton Harbor, Michigan on 11/11/11.[8][9] Also, took over former KarstadtQuelle brand Privileg from Otto Group.[10] Whirlpool announces the closer of the Fort Smith, Arkansas plant. Production of built-in refrigerators will shift to Amana, Iowa. Production 2011 of trash compactors will shift to Ottawa, Ohio. Production of the reduced, declining volumes of side-by-side refrigerators will be accommodated within current excess capacity in Ramos Arizpe, Mexico where employment levels will remain flat to negative.[11] Whirlpool opens a new manufacturing plant in Cleveland, TN replacing a 123-year-old facility. The $200 million dollar project added about 130 2012 jobs to an already established workforce of 1,500. The 1 million square foot facility manufactures premium cooking appliances for Whirlpool's portfolio of brands. The project also includes a distribution center

Corporate Logo (used since 1995) Type Traded as Industry Founded Founder(s) Public KRX: 003550 Conglomerate January 5, 1947 Koo In-Hwoi

Headquarters Seoul, South Korea Area served Worldwide Koo Bon-Moo (Chairman & CEO) Key people Yu Sig Kang (Vice Chairman & Co-CEO) Juno Cho, (EVP, COO, & Director) Electronics, chemicals, Products telecommunications, engineering, information technology, power generation Revenue US$143 Billion (2012)[1]

Employees

220,000 (2012)[1] LG Electronics LG Display

Subsidiaries

LG Telecom LG Chem LG Life Sciences LG Solar Energy

Website

www.lgcorp.com

This article contains Korean text. Without proper rendering support, you may see question marks, boxes, or other symbols instead of Hangul and hanja.

Stake ownership structures(As of 2012)

LG Twin Towers

An LG microwave oven

LG's ad campaigns have sometimes utilized celebrities such as South Korean pop girl group Girls' Generation for their products, such as this for the LG Cookie cell phone in 2010.

LG Side-By-Side Refrigerator (KF-P8903 HLP). LG Corporation (Korean: LG ) is a South Korean multinational conglomerate corporation. It is the fourth-largest company of its kind in South Korea, following Samsung Group, Hyundai Motors Group and SK group. Its headquarters are situated in the LG Twin Towers building in Yeouido-dong, Yeongdeungpo-gu, Seoul.[2] LG makes electronics, chemicals, and telecom products and operates subsidiaries such as LG Electronics, Zenith, LG Display, LG Telecom and LG Chem in over 80 countries. History LG Corp. founder Koo In-Hwoi established Lak-Hui Chemical Industrial Corp. in 1947.[3] In 1952, Lak-Hui (pronounced "Lucky", currently LG Chem) became the first Korean company to enter the plastic industry. As the company expanded its plastic business, it established GoldStar Co. Ltd. (currently LG Electronics Inc.) in 1958. Both companies Lucky and GoldStar merged and formed Lucky-Goldstar.

GoldStar produced South Korea's first radio. Many consumer electronics were sold under the brand name GoldStar, while some other household products (not available outside South Korea) were sold under the brand name of Lucky. The Lucky brand was famous for hygiene products such as soaps and HiTi laundry detergents, but the brand was mostly associated with its Lucky and Perioe toothpaste. Even today, LG continues to manufacture some of these products for the South Korean market, such as laundry detergent. In 1995, to compete better in the Western market, the Lucky-Goldstar Corporation was renamed "LG", (the abbreviation of "Lucky-Goldstar"). The company also associates the letters LG with the company's tagline "Life's Good", which is actually a backronym. Since 2009, LG has owned the domain name LG.com. In 1996 LG formed a joint venture with IBM; it was later terminated.[4] On 1 April 2000, LG Chemical was split into three separate companies, namely LGCI, LG Chem, and LG Household & Health Care. Later, in July 2007, LG Chem merged with LG Petrochemical.[5] Since 2001, LG has two joint ventures with Royal Philips Electronics: LG Philips Display and LG Philips LCD, but Philips sold off its shares in late 2008.[6] In 2005, LG entered into a joint venture with Nortel Networks, creating LG-Nortel Co. Ltd. On November 30th 2012, comScore released a report of the October 2012 U.S. Mobile Subscriber Market Share that found LG lost its place as second in the U.S mobile market share to Apple Inc. [7] On 20 January 2013, Counterpoint Research announced that LG has overtaken Apple to become second largest smartphone manufacturer in the US. [8]

LG has owned the LG Twins baseball club in Seoul, South Korea, since 1989. The company logo of LG features the letters L and G, presented in the form of a smiling human face. Associated companies

GS Group LS Group LIG Group

Type

Publicly traded Aktiebolag OMX: ELUX B Grey Market: ELUXF Household appliances 1919

Traded as

Industry Founded

Headquarters Stockholm, Sweden Area served Worldwide Marcus Wallenberg Key people (Chairman), Keith McLoughlin (President and CEO) Products Revenue Operating income Profit Major and Small appliances SEK 101.60 billion (2011)

SEK 3.017 billion (2011)

SEK 2.64 billion (2011) SEK 76.384 billion (end 2011) SEK 20.644 billion (end

Total assets

Total equity

2011)[1] Employees Website 52,916 (average, 2011) www.electrolux.com

AB Electrolux (commonly known as Electrolux) is a Swedish multinational household and professional appliances manufacturer headquartered in Stockholm, Sweden. It is the world's second-largest household appliance maker by revenues (after Whirlpool). Electrolux products sell under a variety of brand names including its own and are primarily major appliances and vacuum cleaners intended for consumer use. The company also makes appliances for professional use. Electrolux has a primary listing on the Stockholm Stock Exchange and is a constituent of the OMX Stockholm 30 index.

History The origins of Electrolux date back to a 1918 cooperative agreement between sales company Svenska Elektron AB and kerosene lamp maker Lux AB. Sales company to major manufacturer In 1919 a Svenska Elektron AB subsidiary, Elektromekaniska AB, became Elektrolux. (the spelling was changed to Electrolux in 1957.)[9] It initially sold Lux-branded vacuum cleaners in several European countries. By 1925 the company had added absorption refrigerators to its product line and other appliances soon followed: washing machines in 1951, dishwashers in 1959, and food service equipment in 1962, etc.

Mergers and acquisitions The company has often and regularly expanded through mergers and acquisitions. While Electrolux had bought several companies before the 1960s, that decade saw the beginnings of a new wave of M&A activity. The company bought ElektroHelios, Norwegian Elektra, Danish Atlas, Finnish Slev, and Flymo, et al., in the nine years from 1960 to 1969.[13] This style of growth continued through the 1990s, seeing Electrolux purchase scores[14] of companies including, for a time, Husqvarna.[14][15] Hans Straberg Hans Straberg, a President and later Chairman of the Board, led the strategic core of an increasingly decentralised Electroluxand was instrumental to its rapid growth. Restructuring While attempts to cut costs, centralise administration, and wring out economies of scale from Electrolux's operations were made in the 1960s and 1970s[13][14] with the focus so firmly on growth,[14] further company-wide restructuring efforts only began in the late 1990s.[16]

A public company Electrolux made an initial public offering on the London Stock Exchange in 1928 (it was delisted in 2010)[17] and another on the Stockholm Stock Exchange in 1930.[11][18] Currently its shares trade on the NASDAQ OMX Nordic Market and over-thecounter, too.[19] Electrolux is an OMX Nordic 40 constituent stock. 2000 to present In North America the Electrolux name was long used by vacuum cleaner manufacturer Aerus LLC, originally established to sell Swedish Electrolux products. In 2000, Aerus transferred trademark rights back to the Electrolux Group. Aerus stopped using the Electrolux brand in 2004.[20] Before 2000 Electrolux-made vacuums carried the Eureka brand name, and while Electrolux continued to make Eureka-branded vacuums after it regained the right to use its own brand, it also began selling Electrolux-branded vacuums, too. Electrolux USA customer service maintains a database of Electrolux-made vacuums and provides a link to Aerus in case an Electrolux-branded vacuum cleaner was made by Aerus.[21] Keith McLoughlin took over as President and CEO on January 1, 2011, and became the company's first non-Swedish chief executive. In August 2011, Electrolux acquires from Sigdo Koppers the Chilean appliance manufacturer CTI, one of Latin America's largest producers and owner of the brands Fensa, Gafa, Mademsa and Somela.[22] Electrolux moved its North American headquarters from Augusta, GA to Charlotte, North Carolina, announcing it in December 2009

Type Industry Founded Founder(s)

Chaebol Conglomerate 1938 Lee Byung-chul Samsung Town, Seoul, South Korea Worldwide Lee Kun-hee

Headquarters

Area served

Key people

(Chairman of Samsung Electronics) Apparel, chemicals, consumer electronics, electronic components, medical

Products

equipment, precision instruments, semiconductors, ships, telecommunications equipment

Services

Advertising, construction, entertainment, financial

services, hospitality, information and communications technology services, medical services, retail US$ 247.5 billion (FY 2011)[1] US$ 18.3 billion(FY 2011)[1] US$ 384.3 billion (FY 2011)[1] US$ 159.6 billion (FY 2011)[1] 369,000 (FY 2011)[1] Samsung Electronics Samsung Life Insurance Subsidiaries Samsung Heavy Industries Samsung C&T Samsung SDS Samsung Techwin etc. Website Samsung.com

Revenue

Net income

Total assets

Total equity

Employees

This article contains Korean text. Without proper rendering support, you

may see question marks, boxes, or other symbols instead of Hangul and hanja.

Samsung Group (Hangul: ; Hanja: ; Korean pronunciation: s m s up ) is a South Korean multinational conglomerate

company headquartered in Samsung Town, Seoul. It comprises numerous subsidiaries and affiliated businesses, most of them united under the Samsung brand, and is the largest South Korean chaebol. Samsung was founded by Lee Byung-chull in 1938 as a trading company. Over the next three decades the group diversified into areas including food processing, textiles, insurance, securities and retail. Samsung entered the electronics industry in the late 1960s and the construction and shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987, Samsung was separated into four business groups Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since the 1990s Samsung has increasingly globalised its activities, and electronics, particularly mobile phones and semiconductors, has become its most important source of income. Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest information technology company measured by 2012 revenues),[2] Samsung Heavy Industries (the world's second-largest shipbuilder measured by 2010 revenues),[3] and Samsung Engineering and Samsung C&T (respectively the world's 15th- and 63nd-largest construction companies).[4] Other notable subsidiaries include Samsung Life Insurance (the world's 14th-largest life insurance company),[5] Samsung Everland (operator of Everland Resort, the oldest theme park in South Korea),[6] Samsung Techwin (an aerospace,

surveillance and defence company) and Cheil Worldwide (the world's 16thlargest advertising agency measured by 2011 revenues).[7][8] Samsung has a powerful influence on South Korea's economic development, politics, media and culture, and has been a major driving force behind the "Miracle on the Han River".[9][10] Its affiliate companies produce around a fifth of South Korea's total exports.[11] Samsung's revenue was equal to 17% of the South Korea's $1082 billion GDP. Name According to the founder of Samsung Group, the meaning of the Korean hanja word Samsung () is "tristar" or "three stars". The word "three" represents something "big, numerous and powerful"; the "stars" mean eternity.[13] History 1938 to 1970

The headquarters of Samsung Sanghoes in Daegu in the late 1930s In 1938, Lee Byung-chull (19101987) of a large landowning family in the Uiryeong county came to the nearby Daegu city and founded Samsung Sanghoe a small trading company with forty employees located in Su-dong (now Ingyodong). It dealt in groceries produced in and around the city and produced its

own noodles. The company prospered and Lee moved its head office to Seoul in 1947. When the Korean War broke out, however, he was forced to leave Seoul and started a sugar refinery in Busan named Cheil Jedang. After the war, in 1954, Lee founded Cheil Mojik and built the plant in Chimsan-dong, Daegu. It was the largest woollen mill ever in the country and the company took on the aspect of a major company. Samsung diversified into many areas and Lee sought to help establish Samsung as an industry leader in a wide range of enterprises, moving into businesses such as insurance, securities, and retail. Lee placed great importance on industrialization, and focused his economic development strategy on a handful of large domestic conglomerates, protecting them from competition and assisting them financially.[15] In the late 1960s, Samsung Group entered into the electronics industry. It formed several electronics-related divisions, such as Samsung Electronics Devices Co., Samsung Electro-Mechanics Co., Samsung Corning Co., and Samsung Semiconductor & Telecommunications Co., and made the facility in Suwon. Its first product was a black-and-white television set.

Type Industry Founded

Private Conglomerate 1897[1] Ardeshir Godrej Pirojsha Godrej

Founder(s)

Headquarters Mumbai, Maharashtra, India Area served Worldwide Adi Godrej (Chairman), Key people Jamshyd Godrej, Nadir Godrej Real estate, FMCG, industrial Products engineering, Appliances, Furniture, Security, Agri care, and others 21600 crore (US$4.0 billion)(2013) [2] 26,000 (2013) GCPL, Godrej Infotech Ltd, Godrej Industries Ltd, Godrej

Revenue

Employees Subsidiaries

Properties, Godrej Agrovet Website www.godrej.com

Godrej Group is an Indian conglomerate headquartered in Mumbai, Maharashtra, India. It was founded by Ardeshir Godrej and Pirojsha Godrej in 1897, Lalbaug, Mumbai. It operates in diverse sectors such as real estate, consumer products, industrial engineering, appliances, furniture, security and agricultural products,to name a few. It's turnover is in excess of 3.3 billion dollars. Background Godrej Group is one of the largest conglomerates based in Mumbai, India, involved in various industries that include appliances, precision equipment, machine tools, furniture, healthcare, interior solutions, office equipment, foodprocessing, security, materials handling and industrial storage solutions, construction and information technology. Its products include Locks, access control systems, security systems and safes, typewriters and word processors, rocket launchers, refrigerators and furniture, outsourcing serble oils and chemical, mosquito repellents, car perfumes, chicken and agri-products, material handling equipment like FORKLIFT trucks, stackers, tyre handlers, sweeping machines, access equipment etc. The Group is headed by Adi Godrej and Jamshyd Godrej. Traditionally, Vikhroli, a suburb to the Northeast of Mumbai has been Godrej's manufacturing base, but increasingly the group have moved significant production facilities away from Mumbai. The Godrej group also owns vast land in Vikhroli, occupying 3500 acres (14 km2) of land on both sides of the Vikhroli section of the LBS marg. That makes the Godrej group the biggest private land

owner in Mumbai by far[citation needed]. Such vast land can, in theory, be used to create at least 1,500 acres (6.1 km2) of residential floor space, which, at very modest rates (Rs.10000/sq ft), can be sold for USD 16 billion. Thus, the Godrej group is sitting on an invisible cashpile that is an envy of other Indian conglomerates[citation needed]. Timeline 1897 - Godrej is established in 1897

1902 - Godrej makes its first Indian Safe 1918 - Godrej Soaps Limited incorporated 1961- Godrej Started Manufacturing Forklift Trucks in India 1971- Godrej Agrovet Limited began as an Animal Feeds division of Godrej Soaps

1974 - Veg oils division in Wadala, Mumbai acquired 1990 - Godrej Properties Limited, another subsidiary, established 1991 - Foods business started 19ted incorporated 1994 - Transelektra Domestic Products acquired 1995 - Transelektra forged a strategic alliance with Sara Lee USA 1999 - Transelektra renamed Godrej Sara Lee Limited and incorporated Godrej Infotech Ltd.

2001 - Godrej Consumer Products was formed as a result of the demerger of Godrej Soaps Limited. Godrej Soaps renamed Godrej Industries Limited

2002 - Godrej Tea Limited set up 2003 - Entered the BPO solutions and services space with Godrej Global Solutions Limited

2004 - Godrej HiCare Limited set up to provide a Safe Healthy Environment to customers by providing professional pest management services

2006 - Foods business was merged with Godrej Tea and Godrej Tea renamed Godrej Beverages & Foods Limited

2007 - Godrej Beverages & Foods Limited formed a JV with The Hershey Company of North America and the company was renamed Godrej Hershey Foods & Beverages Limited

2008 - Godrej relaunched itself with new colourful logo and a fresh identity music 2010 - Godrej launched GoJiyo a free, browser based 3D virtual world[4] 2011 - Godrej & Boyce shuts down its typewriter manufacturing plant, the last in the world

THE KEY GROWTH DRIVERS FOR INDIAN CONSUMER DURABLES INDUSTRY ARE

Rise in disposable income: The demand for consumer electronics has been rising with the increase in disposable income coupled with more and more consumers falling under the double income families. The growing Indian middle class is an attraction for companies who are out there to woo them.

Availability of newer variants of a product: Consumers are spoilt for choice when it comes to choosing products. Newer variants of a product will help a company in getting the attention of consumers who look for innovation in products.

Product pricing: The consumer durables industry is highly

price

sensitive, making price the determining factor in increasing volumes, at least for lower range consumers. For middle and upper range consumers, it is the brand name, technology and product features that are important.

Availability of financing schemes: Availability of credit and the structure of the loan determine the affordability of the product. Sale of a particular product is determined by the cost of credit as much as the flexibility of the scheme.

Rise in the share of organised retail: Rise in organised retail will set the growth pace of the Indian consumer durables industry. According to a working paper released by the Indian Council for Research on International Economic Relations (ICRIER), organised retail which constituted a mere four percent of the retail sector in FY07 is likely to grow at 45-50% per annum and quadruple its share in the total retail pie 16% by 2011-2012. The share will grow with bigger players entering the market.

Innovative advertising and brand promotion: Sales promotion measures such as discounts, free gifts and exchange offers help a company in distinguishing itself from others.

Festive season sales: Demand for colour TVs usually pick up during the festive seasons. As a result most companies come out with offers during this period to cash in on the festive mood. This period will continue to be the growth driver for consumer durable companies.

Major hurdles and challenges plaguing the Indian consumer durables sector:

Threat from new entrants, especially global companies: The

domestic consumer durables sector faces threat from newer companies, especially from global ones who have technologically

advanced products to offer.

Rivalry and competition: Presence of a large number of players in the domestic consumer durables industry leads to competition and rivalry among companies. Threat from rivalry and competition poses a threat to domestic companies.

Potential markets remaining yet untapped: A large segment of the

domestic market, mostly the rural market is yet to be tapped. Tapping this yet untapped and unorganised market is a major challenge for the Indian consumer durables sector.

Threat from substitute products/services: The domestic consumer

durables industry is plagued by threats from substitute products. Easy accessibility to theatres/multiplexes, especially in urban areas has

turned off the viewership from TV to a large extent. With the advent of a horde of FM radio stations, radio sets have now substituted TVs.

Customer

power

with

respect

to

availability

of

choice:

The

availability of a wide product line on account of most products being homogeneous, poses a threat for companies operating in the consumer durables sector. Customers have the choice of both domestically produced and imported goods, with similar features.

The industrial sector grew in moderation during FY08 at 8.5% on the back of a comp r tively higher growth of 11 5% during the previous fisc l The countrys real GDP grew by 9% during FY08; a tad lower than 9.6% in the previous fiscal. The consumer durables segment witnessed a fall in production particularly for items where consumer preferences have shifted towards newer products. Shifting in the consumption pattern coupled with rising input costs of steel, iron ore etc. may further affect the production levels of these goods. On the supply side newer variants of consumer durables on the

back of technological advancements have flooded the market, whereas on the demand side it is the prospering middle class and consumerism which have led to changing demand patterns.

Consumer durables: Industry size, growth and trends:

During FY 12, volume share of consumer durables was as follows

The consumer durable market in India was estimated to be around US $ 4.5 billion in 2006 07. More than 700 million units have been sold in the year 0607. Colour T.V. forming the bulk of the sales with 30% share of volume.

CTV, refrigerator and Air conditioner together constitute more than 60 % of the sales in terms of the number of units sold.

The CTV production was 15.10 million units in 06-07 and is expected to grow by at least 25 % . At the disaggregated level conventional CTV volumes have been falling while fl t TVs h ve grown strongly The fl t segment of the

CTV now accounts for more than 60% of the total domestic TV production. High end products such as Liquid crystal display ( LCD), and plasma display TV grew by 400 % and 150 % respectively in 06-07 with sharp decline in the price of these products.

CONSUMER DURABLES MARKET The consumer durables market is divided into two segments consumer electronics, also known as the brown goods (television, digital camera, audiovideo systems, computers, electronic accessories, etc) and consumer appliances or the white goods (air conditioners, refrigerators, microwave ovens, other household appliances, etc.). In its initial years, the sector relied greatly on media and advertising for consumer penetration. Liberalisation of markets in late 1990s saw the entry of global players like Samsung and LG and a shift in focus towards product innovation. Accessibility to high-end products was, however, low till mid 2000s. Last few years has seen high end and aspirational products like air conditioners and High Definition TVs gain stronghold in the market. The industry size for consumer durables stands at Rs 350 billion (as on March 2012) The sector rides nd relies on the st te of the countrys economy With household incomes in top 20 cities across India expected to grow at 10 percent annually over the next eight years, and concepts of easy loans, equated monthly instalment (EMI) charges, availability of credit, etc., become commonplace, the Indian consumer is likely to spend more on both utility and luxury consumer goods. The consumer durables sector is marked by stiff competition between market players to launch newer models and versions of products, discounts and chemes. The key players in the consumer durables sector are MNCs like LG, Samsung, Blue Star, Daikin, Hitachi, Sony, etc. LG and Samsung account for the l rgest sh res of the m rket, nd it is estim ted th t Indi s sh re in their global revenues will double to 12 per cent in FY15 from 6 per cent in FY10 and similarly from 2.5 per cent to 5 per cent respectively.

MARKET TRENDS FOR THE FUTURE Estimates provided by Corporate Catalyst India (CCI) indicate that the consumer durables market is expected to double at 14.8 per cent CAGR to USD12.5 billion in FY15 from USD6.3 billion in FY10. Further, demand from rural and semi-urban areas is expected to expand at a CAGR of 25 per cent to USD6.4 billion in FY15 from USD2.1 billion in FY10. All major companies in this sector have elaborate expansion plans for the near future J p ns P n sonic pl ns to invest USD208 million by 2014 by setting u p manufacturing units and an advanced R&D centre. Samsung plans to invest USD94 million to expand capacity by 2012. Market leader LG has outlined around USD292 million for enhancing production capacity and strengthening its LG brand shop network by 2012.

FACTORS THAT WILL DRIVE GROWTH IN THIS SECTOR

Increased disposable incomes and greater accessibility to credit is growing the consumer base, especially in the middle and upper sections of the population.

Relaxation of tariffs and increased liberalisation amid a favourable FDI environment is leading to expansion in India, increased investments and greater R&D. Key players like Whirpool, Hitachi, and Panasonic announced huge investment plans in the year 2011.

CONSUMER DURABLE COMPANIES IN INDIA ACORDING TO THEIR ALPHABET


A

Aplab Ltd B Bajaj Electricals LimitedBalkrishna Industries Ltd.Bombay Burmah Trdg. Corpn. Ltd.BPL Ltd. C Calcom Vision Ltd F Fedders Lloyd Corporation Ltd.Forbes & Company Ltd. G Gandhimathi Appliances LtdGillette India LimitedGorani Industries Ltd. H Haier Appliances (India) Private LimitedHavells India LtdHawkins Cookers Ltd I IFB Industries LtdInd-Agiv Commerce LtdIntegrated Technologies Ltd J

J C T Electronics LimitedJaipan Industries LtdJHS Svendgaard Laboratories LtdJyothy Laboratories Ltd K Kanchan International LtdKhaitan Electricals Ltd. L Lloyd Electric & Engineering LtdLT Foods Ltd M MIRC Electronics Ltd.Monica Electronics LtdMVL Industries Ltd P Panasonic A V C Networks India Company LtdPanasonic Home Appliances India Company LtdPolar Industries Ltd.Polygenta Technologies Ltd R Rexnord Electronics & Controls LtdRuttonsha International Rectifier Ltd S Salora International LtdSamtel Color LimitedShah Foods LtdSharp India LtdSiemens LimitedSinger India LtdSintex Industries Ltd.Sujana Universal Inds. LtdSunrise Soaps & Chemicals LtdSymphony Comfort Systems Ltd T Tasty Bite Eatables LtdTrend Electronics LtdTTK Prestige Ltd U

Usha International LtdUsher Agro Ltd V Value Industries LtdVideocon Industries LtdVoltamp Transformers LtdVoltas Limited W Whirlpool Of India Ltd.Willard India Ltd. # 3M India Limited

OBJECTIVES OF THE PROJECT

To study about the number of brands of consumer durable in India.

To study brand preference of for consumer durable goods..

To study about the most important parameter for selection of brand of Colour television, Refrigerators, Washing machine, DVD, Microwave oven.

To study the profit margin of major brands in consumer durable.

RESEARCH METHODOLOGY
The information required for the study was collected in the form of Secondary data. The present research is of descriptive type. The information was gathered from Media and Secondary based data.

RESEARCH DESIGN

A research design is the arrangement of conditions for the collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure.

In fact, the research design is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection, measurement and analysis of data.

Research design facilitates smooth sailing of various research operations, thereby making research as efficient as possible yielding maximum with minimal expenditure of effort, time and money.

Research design stands for advance planning of methods to be adopted for collecting the relevant data and the techniques to be used in there analysis, keeping in view the objective of the research and the availability of staff, time and money.

NATURE OF STUDY: -

DESCRIPTIVE

TARGET GROUP:-

Universe
The present research is of descriptive and exploratory type.

Descriptive studies are those which are concerned with describing the characteristics of a particular individual, or of a group. Studies concerned with specific predictions, with narration of facts and characteristics concerning individual, group or situations are all examples of descriptive studies.

In descriptive studies, researcher is able to define clearly, what he wants to measure and able to find adequate methods for measuring it with clear-cut definition of popul tion

The information required for the study is collected in form of secondary data.

Collection of secondary data

Secondary data are those which have been collected by someone else and which have been passed through statistical process.

Secondary data required for the study was collected from various websites, magazines, brochures, pamphlets and newspapers.

ANALYSIS

GRAPPH FOR RISE OF PRISES OF CONSUMER DURABLE GOODS IN INDIA

FINDING 1. We came to know while visiting the shop most of the dealers sold entire consumer durable product including C-TV, Refrigerator, Washing Machine, DVD, Microwave oven. 2. Consumer durable industry in India and rural area of LG is leading in Colour television, Washing Machine, Refrigerator. 3. Study shows that quality is most important parameter for more sale of colour television and then price is considered. 4. Study shows that quality of the product is most important parameter for Consumer Durable then price is considered. 5. Profit margin are .not satisfactory. 6. Demo calls also not done properly. 7. Sales promotion scheme are sufficient.

SUGGESTIONS &RECOMANDETION

Company should improve the after sales service of products as it is the main factor for the sales of consumer products. 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 cable TV ads. To make consumers aware about the product. Prompt of service in time. Advertisements of the comp nys products should focus on qu lity r ther 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 middle class. Demo calls as well as follow up Help Company to maintain customer relationship and hence the company should focus on these aspects.

Limitation

As the universe is too large and to take opinion is very difficult. Exact data is not given on net. Due to shortage of time, response of countable sites and magzines are taken. These information is totally correct and appropriate as it's purely made and based on secondary data.

CONCLUSION

The sector is characterised by strong growth trends in all domains from rise in affordability factor of Indian population, increased penetration and exponential growth of rural markets, policy support in terms of FDI, to large scale investment plans by corporate. The consumer durables sector is set for an upward graph with numerous opportunities for those involved in it. 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.

BIBLIOGRAPHY

1 Rural Marketing Text & Cases - U.C. Mathur, Excel Books 2 Rural Development in India Vasant Desai 3 Rural Marketing,-: D Pradhana 4. Marketing management-philip kotler News paper 1. The Times of India 2. The Economic Time 3. Business Standard 4. Business Line Magazine 1. Business Today 2. Business Worlds 3. Business Standard 4. Marketing Research(ICFAI) 5. Marketing Mastermind (ICFAI) 6. Business India (December 2005)

WEBSITES
1. www.thehindubusinessline.com 2. www.lgindia.com 3. http://www.samsung.com/in/aboutsamsung/index.html 4. http://www.godrej.com/in 5. wikipedia.org/wiki/Major_appliance