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Brand Positioning Of Air-Conditions

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ICLES
MOTILAL JHUNJHUNWALA COLLEGE
OF
ATS! SCIENCE! COMMECE
AN"
MANAGEMENT STU"IES
CERTIFICATE
This to certify that
Mr./Ms.______________________________________________
_
Of BMS semester _______ has undertaken &
completed the project work
titled________________________________________________
__
During the academic year __________ under the
guidance of Mr./Ms. ___________________ submitted on
____________ to this college in fulllment of the
curriculum of Bachelor of Management Studies,
University of Mumbai.
This is a bonade project work and the
information presented is true and original to the best
of my knowledge & belief.
roject guide !xternal !xaminer rincipal
".#.$%& examination
#s#ar$% "#sign! O&'#$ti(#! and S$o)#
#s#ar$% "#sign
"he report is an outcome of primary data collection, secondary data collection
and analysis of the information received from these sources. "he primary data collection
was done with the help of interviews with the personnel of '( and )itachi, and
consumers. "he secondary data collected, is from various websites, maga*ines,
newspapers and brochures.
O&'#$ti(#
+ndian ,- market is in its growing stage with many players flooding the market
after the relaxation in the exercise levels and import duties by the government. "he
+ndian ,- market was basically governed by the central ,-s and the room ,- market
picked up only after the relaxation in duties . !arlier people were only interested in
buying unbranded ,-s and no player in the global market thought of +ndia as a big
market and the market had very limited players with -arrier ,ircon ruling the roost for
almost ten years. '( came and revolutioneri*ed the +ndian room ,- market by changing
the way people perceive the utility of an ,- ."hey sold their ,-s by positioning them as
the health air conditioners which along with cooling the air also purifies the air thus
giving cool, healthy and fresh air. "his concept gelled with the +ndian consumer and as a
result '( is the market leader in room ,-s today.
)itachi is also fast gaining the market share after the launch of its 'ogicool range
of air-conditioners this summer and is third in the room ac market behind &amsung.
eople have been buying the ,c because of its smart positioning of perfection backed
with strong humour oriented advertising. "he success of these players has attracted a lot
of other players in the market and suddenly the small room ac market which was worth
some .s./00 crores in 122/ is valued at .s.1300 crores today and continues to grow at
the rate of 40 5 every year.
"his project report aims to research why people are going for branded ,-s in the
room sector and how the focus is shifting from positioning of product to the positioning
of brands. "he report has also tried to trace the importance of positioning of a brand by
comparing the various aspects of brand positioning taking into consideration the
strategies of the two leading players '( and )itachi.

S$o)#

* Cons+,#rs- "he report can be of great help to any prospective buyer of an air
conditioner. "he report will help him to have a look at the various players in the market
and what each one of them has to offer to the consumer. "he consumer can directly refer
to the analysis of the print advertisements that will help him to identify what each brand
has to offer to its consumer. "he consumer can also have a look at the market standings of
each brand with respect to the sales in the current year.
* St+d#nts-"he report can be very useful to the students in understanding the
concept of branding and brand positioning as it provides an insight to these concepts. +t is
important for the students to know the changing trends in the market, as they are the ones
who are going to be part of the industry and will have to apply their knowledge to carve
out a niche for themselves and their companies in the market. "hey can also have a look
at the various aspects that govern this ever-growing industry.
* E-#$+ti(#s . "he report can be of prime importance to the executives working
in the industry. "he report is also based on some inputs provided by the consumers that
will help the personnel to know what people think about their brands and what are their
expectations from this product. !xecutives can learn from the positioning of '( and have
a look at the advertising strategies being followed by the various players in the market.
,lso some suggestions have been offered in lieu of the analysis done in this report. "he
suggestions can be implemented if they gel with the management of the concerned
brands.
E-#$+ti(# s+,,ar/0
"he project is about the +ndian ,ir -onditioning market. +t covers both the
industries vi*. -,- and .,- with respect to the trend in the market, market players,
price of the market, factors influencing the demand etc. "he core focus has been on the
.,- market, which is one the, few sectors growing at a rate of more than 4/5 per year.
"his is so because the market is in the growth stage whereby the penetration level is only
45. ,s a result the room ,- market is getting overcrowded with players from all over
the world with a view to capture the market share of this growing market. eople are
going for the branded products rather than the unbranded ones.
"he project highlights the aspect of branding and the benefits of branding of
products. +t also deals with the positioning strategies being used by various brands to
occupy the perpetual space in the minds of the consumer. "here is an analysis of the
positioning of the various brands with respect to print advertisements. ,lso a comparative
analysis has been done between '( and )itachi, which are the leading players in the
market. +n the concluding part of the project some suggestions have been offered with
respect to certain issues, which will govern the roducts being launched by various
brands in the room ,- market in the near future.
C%a)t#r 1
Introd+$tion
Histor/ Of Air-$ondition#r

+n 1204 &ackett-6ilhelms, a publishing house at $rooklyn, was getting its
printing all messed up. +t was then that 6illis -arrier was called upon to analyse the
problem. )e discovered that owing to fluctuations in heat and humidity paper dimensions
kept changing, resulting in misalignment of coloured inks.
"his was a classic temperature and humidity control problem. -arrier then
invented the world7s first air-conditioning system. -arrier waited till 1208 before
patenting this contraption of his, loosely termed as 9an approach for treating air. +t was
the beginning of bigger thing for carrier. )e later went on to create the biggest air-
conditioning firm which now a days operates globally with name of -arrier ,ircon and
has a market share of over the :0 5 across the world.
"hough now the market is flooded with a lot of players like ;ational, '(,
&amsung, <aikin, $lue &tar, etc. and the technology has increased tenfold, this ,merican
giant %;- = -arrier ,ircon> and 6illiam -arrier will always be in the eyes of the world,
simply because they were the ones who gave the world an industry which is worth
billions over the global market and creates employment for millions of people.
Air-$ondition#r-T%# Prod+$t
,n ,- is primarily classified into three broad segments ? unitary products,
packaged air-conditioners =,-> and ducted splits and central plants. "he unitary
products would include the window ,-s and the mini-splits =without ducts>.
.oom air conditioners operate on electricity or gas and are enclosed in a single
cabinet. "hey blow the conditioned air directly into the room and do not have air ducts
leading to and from them.
6indow air conditioners fit into the lower part of a window and can be moved
from window to window and thus the name, 6indow ,-s
-entral air conditioners use electricity or gas. "hey can supply conditioned air to
a number of rooms or to an entire building from one central source. Fans blow the
conditioned air through air ducts from the air conditioner to the rooms. -entral
conditioners have a number of advantages over other kinds. For example, all the
e@uipment for air conditioning a large area is located in one place. "his reduces the cost
of cleaning and repairing. -entral conditioners can also be *oned i.e. they can supply air
of different temperature to different parts of a building.
"hese ,-s are ideal for rooms with low heat loads. "hey are available in the
capacity range of 0./ ". to A ".. "he room ,- sector caters to residential premises,
offices and small establishments. &plit ,-s are so named because the unit is BsplitB into
two parts. "he compressor and the condenser forming an outdoor unit and the cooling
coil remaining as an indoor unit. &plit units can be with or without ducts. +n ,-s, the
unit is placed in a separate room and the cold air is carried through ducting to the
re@uired areas. +t is suited to those establishments that are not large enough to go in for a
central system. <ucted splits and ,-s cater to segments re@uiring cooling capacity of
less than 1/ ".. "he central air-conditioning segment is more technology
intensive and project oriented. +t caters mainly to institutional clients where capacity
re@uirements are usually /0 ". and upwards.

"he demand for nonducted products grew steadily in the latter half of the
1220s."he demand for mini-spilt ,-s has grown at a higher rate as against window ,-s
mainly because of a lower base. "he demand switch from mid si*ed ducted products,
such as packaged ,-s or ducted splits to mini splits is also one of the larger growth rates
in the latter segment. "he demand for non-ducted products i.e. the window air
conditioners C mini splits come from both households C corporate while the demand for
ducted products comprising of the central plants C packaged air conditioners C ducted
splits come only from corporate.

C%a)t#r 2
Mar3#t St+d/
Ind+str/ Si4#
"he air-conditioning market is one of the few segments that have been growing at
the rate of 40 per cent per annum since the last three-four years. "he total air-
conditioning industry is estimated to be around .s A000 crores with central air-
conditioning including packaged and ducted air-conditioning systems estimated to be
around .s. 1400 crore, and windows and mini split air-conditioners estimated at .s 1300
crores.
E(o5+tion
&ince the early 20s, the structure of the air-conditioning industry has evolved @uite
differently. "ill B33-32 the industry used to be dominated by the unorganised sector with
D0 per cent market share. 6ith excise duty as high as .s 2000-10,000 during those times
the gap was wider. "he participation of the organised sector remained small till the year
122/. "he reduction in excise levels from 110 per cent to A4 per cent and import duties on
components from 13/ per cent to A0 per cent plus -E< has not only expanded the market
but also narrowed the price gap for branded ,-s. "he share of the organised sector is
now 30 per cent
while the unorganised sector constitutes a little over 40 per cent of the market.
.
C+rr#nt s$#nario
rior to 122D, corporates, institutions and government dominated the consumer
segment. "hey did around 3/-20 per cent of the buying. +t was only in the year 122D that
the home segment picked up. +n fact, in the last two years there has been a big spurt in
buying from the home segment, which now constitutes A/ per cent of the market from the
previous 10-1/ per cent. "he institutional segment accounts for 8/ per cent. "he growth
in volumes from the home segment has been to the tune of A0-A/ per cent while the
institutional segment clocked just :-/ per cent volume growth. "he average growth for
the last five years in the residential segment has been around 4: per cent. "he reason for
the same is that the ,- is no longer perceived as a luxury and better distribution network,
large-scale advertising and finance schemes have grown the market.
"he growth in the year 4000 was only 40 per cent, which was mainly driven by
segments such as software services, retailing, healthcare, entertainment, hospitality and
telecom. +n the current year, the ,- industry has recorded a 14 per cent growth in the first
six months of the current year.. "he 6,- growth is expected to be about 40 per cent this
fiscal.

"#,and dri(#rs

In(#ntor/ holding capacity is the key to success as demand for ,-s is seasonal.
In$o,# 5#(#5s
6ith rising levels of disposable income and the attendant change in consumption
patterns, air-conditioners have become a thing of proud possession, especially for the
emerging middle class. "he fastest growing and the most potential segment, namely,
middle class households, is expected to drive demand for ,-s by leaps and bounds
due to growing pollution and more disposable income.
'ow enetration 'evels
"he industry has a major growth potential as the penetration rate is less
than one per cent "he 6,- market in -hina has grown from 1 million to 2 million in
the last decade. "his represents a huge untapped market in +ndia thus signifying a
tremendous growth potential. -omputerisation in business and growth in service
industry will act as key drivers for commercial segment of air-conditioning. "he
present penetration level in +ndia for air-conditioners is a miniscule 1-45. "his figure
compares unfavorably to countries like the F&, =A/5> and &ingapore =A05>. +n
addition, the penetration level is low as compared to other consumer durables --
refrigerators - 115, "EBs - A/5, .adio - :/5 and -ars - 85. "he ;ational -ouncil
for ,pplied !conomic .esearch =;-,!.> conducted survey on G+ndian %arket
<emographicsG has indicated that ,-s, rank lower than even washing machines on
the priority list of purchases. -onsidering that washing machines have achieved a
penetration of only 4 million households, it is unlikely that households will be the
major demand drivers in the near future. "his is especially true in the case of rural
households. Hne reason could be the high maintenance and operational costs
associated with owning an ,-. eople owning a car, usually get a sum as petrol/car
allowance along with their salaries, but their monthly electricity bills are hardly
reimbursed. 6ith rural households, the problem is of fre@uent power cuts and low
voltage. -ompetition also comes from an altogether different product - desert coolers
- widely used in central and northern +ndia. Hne thing is however clear, lower
penetration level is a pointer to the vast potential that lies ahead.+n the future,
earnings will be driven by rising demand for consumer durables in general.
Hnce upon a time, ,-s used to be a luxury but now they are a necessity. Hf
course, this could also be attributed to the reduction in ,- prices and the rising
disposable income of the +ndian middle class. "he hot summer of 4001 has persuaded
people to carry one home to cool themselves off.
"he last few years have seen a spectacular demand for air conditioners rising from
the household sectors.
,s per the ;ational &ample &urvey Hrgani*ation report of GFse of durable goods
by +ndian householdsG, the per capita total expenditure on durable goods increased from
.s114.32 in 123D-33 to .s1:3.04 in 122A-2:. &imilarly, ;-,!. estimates point to the
fact that the number of households with monthly incomes above .s10,000 in metros and
.s/,000 in non-metros is expected to rise from 44.D million in 122/-28 to a huge /D.4
million in 400/-08. "his will mean that firstly, there will be a perceptible shift towards
branded products and secondly, the level of aspiration buying will increase. ,ll this
should be good news for players in the ,- market.
.Pri$#
<emand for room air-conditioners is fairly price sensitive. For demand
from households to spurt, prices have to come down significantly. , study conducted
by +%.$ points to a potential of 0.A/ million units for units priced at .s13,000.
"hough a 0.D/ ". unit is available at these prices, their efficacy under +ndian
conditions is doubtful. +deally, prices should fall by another 40-4/5 bringing a 1./
". ,- on par with a -"E priced at around .s13,000.Hn the other hand, demand for
central ,- systems are broadly price insensitive. "his is so because the number of
players in the segment are limited =due to infrastructure and personnel re@uirements>
and profit margins lower than those in room ,-s.
,vailability Hf Finance
Hne way of making price-sensitive consumers spend is to expand hire-
purchase schemes in the country. )ere +ndia has made substantial strides in the 207s.
Firstly, there has been a marked change in the attitude in favour of taking loans for
purchasing household items. &econdly, the easy availability of consumer finance from
banks and other financial institutions would induce purchases during inflationary
times. -ompanies like -arrier ,ircon, Eoltas, Fedders 'lyod and (odrej-(! have
introduced *ero-interest installment schemes as an option for its customers.
!nvironment
+ndia is a country situated in the tropical *one with the weather being
warm to hot in most parts of the country. 6ith surroundings in most of our urban
centers becoming increasingly polluted and awareness as regards the benefits of
working in a controlled environment on the rise, the demand for ,-s can only grow.
Fse Hf ,lternatives ,nd +ts &ubstitution
!arnings would be affected by the presence of cheaper substitutes like
coolers that would discourage consumers in smaller towns and villages to at-least
postpone purchases, if not avoid them. $ut as the level of income goes up, aspiration
needs will lead to substitution or replacement of coolers with ,-s.
+mpact Hf .eforms
'owering of taxes will make ,-s cross the threshold between necessity and
affordability. Hnce this happens air-conditioning will see geometric growth in
demand. +n the past, the ,- industry was labeled as a luxury industry making it
convenient for the government to extract revenues. "his resulted in the unorgani*ed
sector ruling the roost with a substantial market share in the window ,- segment.
+ndividuals patroni*ed the unorgani*ed players because their prices were lower and
personali*ed after sales services were available. ,s the table below indicates, excise
duty rates were a high 805 for room ,-s even until 122:-2/. -ouple this with the
fact that organi*ed players also paid sales tax, octroi duty etc., their prices turned out
to be largely uncompetitive. "ax implementation is a very big obstacle in the healthy
growth of the consumer durables industry. "he segment is heavily taxed both by the
central and state government. 6hite goods manufacturers feel that the lower level of
duties and higher abatement on %.-based products would push sales and drive
higher growth for the industry. Hn an average the duties are in the level of 40-4/ per
cent but it becomes as high as :0 to :/ per cent in +ndia, which puts +ndian
manufacturers at a disadvantage. .eduction in sales tax and excise duty could
definitely spur demand*

C%a)t#r 6
C#ntra5 AC Mar3#t
C+rr#nt S$#nario
"he -entral ,- =-,-> market has had a rough patch in the last two to three
years. $eing dependent on user industries, it is highly susceptible to industrial growth
cycles. 6ith new industrial activity coming to a grinding halt, demand for turnkey
central ,- projects have dried up in last two years. C#ntra5 AC s#g,#nt is
$ontro55#d &/ &ig )5a/#rs 5i3# B5+# Star t%at %a(# t%# fa$i5iti#s! t#$%no5og/ and
)#rsonn#5 r#7+ir#d to #-#$+t# t+rn3#/ )ro'#$ts*
On# ,a'or iss+# fa$ing t%# air-$ondition#r ind+str/ is t%at of ad%#r#n$#
to #n(iron,#nta5 standards* As )#r t%# 1889 Montr#a5 Proto$o5! ACs s%o+5d not
$ontain o4on#-d#)5#ting ,at#ria5 :it% #ff#$t fro, 2996 -entral ,-. $lue &tar and
Eoltas, who between themselves have a 8A5 market share, dominate the industry.
-arrier ,ircon, which entered this segment in 122:, has a relatively modest 145
market share. -arrier plans to increase its presence in this segment in line with its
global operations where it is the leader with a :05 world market share. $esides
e@uipment manufacturers, there are also players like the transnational !mirates
"rading ,gency =!",>, which sources e@uipment from leading manufacturers,
undertaking only the installation work.
"his industry has traditionally been a high margin area, but of late, margins have
come under pressure due to increased competition. 6ith few orders, manufacturers are
undercutting each other to grab installation contracts."he traditional compressor-chiller
based market faces threat from vapor absorption machines =E,%s>. "hese are finding
favour the world over as a cost-effective and environment friendly alternative. ,lthough
the initial outlay is higher, low operating costs more than make up for it. "hermax is the
dominant player in the domestic E,% market with a 205 market share. (iven the
environment friendliness and cost savings, E,%s could displace chillers altogether in the
long run. For the existing players in the -,- segment, it may not pose much of a
problem as all the major players like -arrier, Eoltas C $lue &tar have access to this
technology from their parent/ part &ervice and maintenance contract income is in fact
emerging as a substantial source of income for the leading players in the country. "his is
especially true of players who have a large installed base of machines. "his revenue
stream can be a buffer against a downtrend in ,- sales. &ome companies have started
subcontracting service function to widen reach.
Uti5it/ As)#$ts Of CACs
1 "o create a cool ambience
4 For the smooth operation of the e@uipment/machinery
A."o preserve and store certain raw material/semi-furnished/finished goods
:."o perform various operations like testing and other manufacturing functions
under controlled temperatures
C#ntra5 AC Mar3#t S%ar#s
Co,)an/ ; s%ar#
$lue star :15
Eoltas 445
-arrier 145
"hermax 085
&uvidha 0/5
Hthers 1:5
Central AC Market FY01
41%
22%
12%
6%
5%
14%
Blue star
Voltas
Carrier
Thermax
Suvidha
Others
B5+# Star
"he .s /10 crore of annual turnover $lue &tar is the market leader in central ,-s.
"he company leads the segment with a current market share of approximately AD per
cent. ,ccording to +t is also a leader in ducted systems or the packaged ,- segment. 6ith
an almost :0 per cent increase in order inflow during F#01, the company has
significantly improved its market share from AA per cent to the current AD per cent.
,round 24 per cent of the companyBs revenues comes from ,-s and commercial
refrigeration e@uipment business. Hf this, almost 3/ per cent of the revenue is contributed
by the central and ducted ,- systems. Hf the remaining, 10 per cent comes from window
,-s and the rest from mini split ,-s. 6hile there is intense competition in the window
and split ,-s, $lue &tar enjoys a competitive advantage of having over D0 per cent of
corporate and commercial customers. $lue star has laumched new turbo rotary remote
ac7s and hi-wall split ac7s .
$lue star manufactures and markets wide range of ,ir- conditioning and
refrigeration
systems and products. "hese includes large central ,ir ?conditioning plants,
packaged
,ir-conditioning systems, split and window ,ir-conditioners. "he company has
business alliances with world ? renowned technology leaders such as #ork international,
F.&.,.I Jolpak, F.&.,.I vest frost, <enmark, and many others, so as to offer superior
products to the customers . its "hane plant manufactures a variety of -F--free products
for central plant ,ir-conditioning and refrigeration . the products for ,ir-conditioning and
refrigeration plant comprise centrifugal water-cooled screw chillers in the range of
1/0-800 tons of refrigeration, reciprocating package chillers and condensing
units.
Carri#r Air$on
"he .s A3/ crore -arrier ,ircon was the market leader in the .,- segment with
a 41 per cent share in window ,-s and A/ per cent share in split ,-s. 6ith the entry of
the various other multinational brands, there has been intense price-cutting, thus taking a
toll on -arrier7s performance for F#00.
)owever, for the first nine months of F#01, net sales at .s A/1 crore improved 41
per cent as compared to the corresponding previous period. ,lso, thanks to efforts at cost
cutting, total expenditure as a percentage of sales has reduced A00 basis points as
compared to F#00. <espite rising working capital re@uirements that has led to a /D per
cent jump in interest at .s A.D1 crore, net profit at .s 18.D8 crore is 3A per cent higher
than that for F#00. "he improved performance is largely due to -arrier7s initiative at
adopting a different pricing strategy. From a distinct shift from marketing ,-s only at the
premium end, -arrier started targeting the lower segments of the market. -onse@uently,
compared to previous price points of .s 4/,000 to .s A4,000, it now caters to a price
range of .s 13,/00 to .s A4,000. +t marketed :1 new variants of window ,-s during
F#01 as against 11 models in F#00. ,lso, while advertising budget has increased 80 per
cent at .s 12 crore for F#01, the number of exclusive dealer outlets have also increased
from :1: to 1,400.
"o compete with players such as ;ational, in early 4001, -arrier launched seven
models of "oshiba .,-s, three models of split ,-s. -arrier envisages growing at 4/ per
cent for F#04 as against the 18 per cent industry growth. <espite fierce competition,
-arrier7s dominant presence in the fast growing window ,- segment bodes well for the
company.
<o5tas
Eoltas continues with its 1/ 5 and 405 share in central ac7s and ducted system
respectively. "he .s 34: crore Eoltas has interests in areas as diversified as engineering
products and projects, chemicals, cooling appliances and refrigerators and office
furniture. "he company slipped into the red in F#2D and F#23, during which, it devised
various initiatives for a turnaround. "his included stripping idle assets and hiving off loss
making subsidiaries. "he efforts bore fruits as Eoltas posted a net profit of .s 14.D2 crore
for F#22. )owever, for F#00, its topline dipped 18 per cent to .s 34: crore. ,s the
company managed growth only in textile machinery, motors C modular ,furniture ,
business . the other divisions such as machine tools , fork lift trucks , air conditions ,
refrigerators ,and room air conditioners showed declining sales both in @uality as well as
value terms .
,lso, the net profit slid by /D per cent to .s /./ crore. ,ccording to the company,
the slowdown in the capital goods sector and engineering businesses are responsible for
the sluggish performance during F#00. )owever, its cooling appliances and refrigerator
businesses have also registered a near 48 per cent fall in F#00. ,lso, its contribution
towards total revenues have reduced from 81 per cent to // per cent in F#00.. "hanks to
innovative product launches and technological advancements, most of its products have
shown a healthy growth during F#01.
From the above table, it can be seen that during F#4000, the company managed
growth only in the textile machinery, hydraulic pumps, motors, and the modular furniture
business. "he other divisions showed declining sales both in @uantity as well as value
terms.
-ompany has shown an overall 8:5 increase in the order book position during
F#01"he company has launched a new system called the H*one +njection &ystem, which
checks the sick building syndrome and prevents the circulation of unhealthy air.
Fnhealthy air could be the cause of bad ventilation, bad air-conditioner, or poor
maintenance of air-conditioners. "he new system is pioneered by Eoltas in collaboration
with a -anadian company called <aks. "he company expects its central ,- segment to
pick up with the growing environmental concern in the coming years.
6hile Eoltas continues with its 44 per cent market in the central ,- and ducted
systems, respectively, its mini split ,-s are also expected to add to the revenues of the
company.
,lso, with the launch of its Eerdant range of ,-s, Eoltas is further expected to
strengthen its room ,- share. )owever, for F#01, 14 per cent of the revenues have come
from the retail segment with the rest coming from institutional sales. For the first nine
months of F#01, Eoltas has registered a seven per cent rise in revenue.
.
C%a)t#r =
oo, AC Mar3#t
"he room ,- segment comprises of window and split ,-s. "he market
has a si*e of .s. A300 crores in +ndia. 6indow ac7s account for about /:5 of the total
market for ac7s with an estimated market si*e of about A0 bn .
"he room air-conditioning segment is characterised by large players like
-arrier ,ircon, '(, &amsung, , ,mtrex-)itachi, etc. '( has been successful in
dethroning -arrier from ;o.1 position in the room ,- segment, followed by &amsung
and )itachi.. . &amsung, for instance, has captured a 1/5 share in room ,-s since it
came here in %ay 1223. '( has wrested a creditable 125 share in less time .
, sales growth of A00 per cent in 4004 over 400A =:0,000 ,-s sold in 400A over the
10,000 in 4004> finds it talking very confidently.
+t started importing in Kanuary 1223 but sensing the opportunities lying
ahead, built a plant near <elhi at ;oida ,others like )itachi, chose to pick up stake in
,mtrex. 6hile some others have gone in for a technical arrangement =for eg. $lue &tar
with #ork, F&,>. %/s. "rane of F&, .
%arket &hare= Hrgani*ed &ector>
.oom ,-s &hare
'( 12
&amsung 1/./
,mtrex )itachi 1/
-arrier 14
;ational 11
Eoltas 3./
Eideocon /.:
$luestar /
(odrej A
Hthers /.D
Room AC's Market
20%
15%
15%
12%
11%
6%
3%
5%
5%
8%
L
Samsu!"
#mtrex
Carrier
$atio!al
Voltas
Video%o!
Bluestar
odre&
Others
"he room ac segment is having a close rat race as compared to the central ac
market. '( has emerged as the leading player with respect to its innovation in offering
superior products . +t changed the definition of ,-s by terming them as health air
systems.
'( has registered a growth of 1105yoy in the year 4000 against an overall
industrial growth of A05. '(7s market share jumped to A05 in 4000 from 125 in 1222.
'( now claims to be in the number 1 position in the .,- segment. '(7s entry is already
taking a toll over established companies like -arrier ,ircon and )itachi.

Jorean major &amsung and )itachi are fighting a close battle for the second
place. $oth are relying on strong innovation and marketing to increase their market
shares.
-arrier ,ircon is second in the .,- race with a 415 share in window ,-s. +ts
market share in split ,-s is about A/5. <uring the first 2 months of F#01, net sales
stood at .sA./1bn =up by 415>. "o compete with players it has launched models of
"oshiba.
L
,mtrex )itachi is a joint venture with )itachi Kapan and has a 115 share in the
window ,- segment and 1/5 share in the split ,- segment. ,fter going through some
stagnant period, the company is now ready to take on the competition with its new range
of products. ,fter a successful comeback in F#00, the company slipped into red again
during the first nine months of F#01registering a net loss of .sD.:mn against a gain of
.s8.4mn last year. )owever, the topline has soared by A15 to .s1.8bn during the said
period. "he company7s problem is that of falling operating margins due to rising total
expenditure. ,mtrex has recently launched a new digital range of split Cwindow ,-s
called B'ogicoolB
+ts mini split ,-s registered a 4/5 volume growth to improve its market share
from 40-4/5 in F#01. ,lso with its launch of Eerdant range of ,-s, Eoltas registered a
435 volume growth improving its market share from 115 to 1D5.
G#ogra)%i$a5 "istri&+tion Of ACs
-ities %arket &hare
<elhi 43
%umbai A/
)yderabad 0:
Jolkatta 0:
$anglore 04
-hennai 0D
Hthers 40

Geographical Distribution of ACs
28%
35%
4%
2%
'%
20%
4%
(elhi
)um*ai
+ol,atta
-.dera*ad
Ba!"alore
Che!!ai
Others
"he above figures explain that the sale of ,-s is restricted to metros. "his is so
because the ,-s still have a very low penetration as compared to other durable goods.
"hey are last in the priority list after refrigerators , washing machines, vacuum cleaners,
microwave ovens. ,lso people don7t have that much disposable income to operate and
maintain an ,-. 6ith increasing finance options the scenario is expected to improve but
it will take some time for ac as a product to really come into the reach of a middle class
consumer.
Entr/ of N#: P5a/#rs.
, notable feature of the reform period has been the coming of foreign players
into the +ndian market ,mong the new brands jostling for space with the older players
this summer are: !lectrolux-6hite 6estinghouse and 6hirlpool from the F&, Fujitso
(eneral 'td and <aikin from Kapan and "-' from -hina. ;eedless to say, the entry of a
host of new brands will impact the ,- market in +ndia dominated by players like -arrier
,ircon, '(, &amsung, (odrej, ;ational, $lue &tar, Eoltas etc.
"he reasons why more and more brands are entering the +ndian market is that
the penetration level of ,-s in +ndia is barely 4 per cent and so the market is extremely
attractive. &econdly, the home segment witnessed an almost A0 percent growth in the last
two years compared to the commercial segment. "his is because ,- is no longer
perceived to be a luxury, and better distribution network, finance schemes and large scale
advertising have grown the market.

&mall wonder, <aikin &hriram, the new 30:40 KE between M :./ billion Kapanese
company <aikin and the &iddharth &hriram group company &iel 'td, aims to grab a 13
per cent share of the premium ,- segment. , 0.D/ tonne <aikin ,- costs .s A2,000.
%eanwhile, !lectrolux +ndia has brought in its world - renowned 6hite 6estinghouse
brand of ,- which offer an attractive six year guarantee and hopes to capture
approximately five per cent market share.)aving test-marketed its ,-s last summer,
6hirlpool launched its products earlier this summer. "he new 6hirlpool ,- .ange is
targeted primarily at the house hold segment. "hey are offering a comprehensive range of
3 new world class models and hope to get a 10 per cent market share by 400A."he ,-
market is currently witnessing a proliferation of brands. )owever, a shakeout is imminent
in the next 13-4: months. &econdly, branded players will gain market share at the
expense of the unorganised sector. +f the unorganised versus organised sector marketshare
ratio was 80::0 in 122D-23, it changed to A0:D0 in 4000-4001. "he unorganised sector is
likely to lose another 10 per cent share this year, thanks to the new players coming in the
market.
E(asi(# A$tion B/ Esta&5is%#d P5a/#rs
$rand proliferation will also make life difficult for the branded players. %ost of
them, therefore, are investing heavily in advertising and marketing besides offering a
wider choice of models. . -onsidering that there has virtually been no change in the ,-
prices this year, the market is likely to see a 40 per cent growth. -onsidering that besides
microwaves, this is the only category in consumer durables that is growing at over 40 per
cent, ,- manufacturers are going all out to woo the +ndian consumers.
"he established players are taking the following steps to consolidate their position
in the market.
Sa,s+ng

Jorean major &amsung too has added two new models to its range and hiked its
spends on ,-s by 1/ per cent. +t is also using the +nternet for speedy order and delivery
of spare parts. +t is offering a combination of better services, features and a *ero per cent
finance schemes to garner more market share. "o fortify their position the company plans
to expand their dealer network to 4000 from current 1/00.
LG E5#$troni$s
'( has increased its advertising budget to .s 4/ crores and is planning to invest
over 400 crore in .C< along with increasing its distribution network. +t is working on
incorporating its plasma technology in window ,-s as well. +t would be pumping M 4A0
mn in +ndia by 400/ to expand manufacturing facilities.
Carri#r Air$on
-arrier is launching :0 models this year to regain its leadership. -arrierBs
advertising budget this year is .s 1D crore while the company is expanding the
distribution network for the home segment from ::0 to 1,4/0 retail outlets/
Hita$%i
)itachi is relying on its new range of 'ogicool air conditioners to increase its
market shares backed by strong promotional budget which has been increased from 3
crores last year to 40 crores for the year 4001-04.

C%a)t#r >
Ana5/sis Of oo, AC Mar3#t

Co,)5#-it/ Of oo, AC Mar3#t
"he room ,- market is very complex unlike central ,- market because there are
lot of players which are targeting various consumer segments according to their specific
needs. +n the central ,- market the corporation is spending the money and the reasons
for buying an ,c are altogether different for buying an ,- as compared to that for
personal use. <ecisions are taken by corporate heads in case of central ,-s and the
priority is given to factors such as cooling capacity, after sales service, safety, price etc.
"he brand is not given much importance as far as the motives are being fulfilled. Hn the
other hand a room ,- is purchased for the following reasons
1."o create a cool ambience
4."o provide clean and fresh air
A.&tatus symbol
:."o rovide aesthetics to the room.
"hus the traditional concept of an ,- being a cooling machine is not applicable
any more. "oday a consumer looks into other attributes and is becoming brand conscious
because these attributes are being offered by the branded products only.
Attri&+t#s Aff#$ting S#5#$tion Of A Brand
1. <urability
4. ,fter &ales &ervice
A. Finance Hptions
:. 'ess ower -onsumption
/. "echnology with respect to cooling, clean and fresh air and easy operations
8. &leek looks
D. &uitable rice
3. $rand +mage
"hus it is becoming more and more important for a company to establish its brand
rather the product alone. , consumer today looks to identify with the brand he is going to
own and therefore the players in the market are trying to establish their brands and
position them in such a manner that they are able to relate to the psychology of their
target and potential customer and provide him with a product which would be ideal for
him. +n order to analy*e the complexities in the .oom ,- market it is necessary to
understand certain terms and concepts related to brands , branding and brand positioning.
,lso it is necessary to look understand what are the benefits and re@uirements for
developing these concepts.

C%a)t#r ?
Branding
Con$#)t @ "#finition
$randing is the art and corner stone of marketing. "he ,merican marketing
association defines a brand as: a name, sign, symbol, or design, or a combination of them,
intended to identify the goods and services of one seller or group of sellers and to
differentiate them from those of competitors. "hus a brand identifies the seller or maker.
Fnder trademark law, the seller is granted exclusive rights to the use of the brand name in
perpetuity. $rands differ from other assets such as patents and copyrights, which have
expiration dates.
, brand is a complex symbol that can convey up to six levels of meaning
Attri&+t#s0 a brand brings to mind certain attributes. %ercedes suggests
expensive, well-build, well-engineered, durable, high prestige automobiles.
B#n#fits0 attributes must be translated into functional and emotional benefits. "he
attribute 9durable 9could translate into the function benefit 9+ wont have to buy another
car for several yearsN. "he attribute 9 expensive 9 translate into emotional benefit. 9 the
car makes me feel important and admireN.
<a5+#s0 the brand also says something about producer7s values. %ercedes stands
for her performance, safety, and prestige.
C+5t+r#0 "he brand may represent a certain culture. "he %ercedes represents a
(arman culture: organi*ed, efficient, high @uality.
P#rsona5it/0 the brand can project a certain personality. %ercedes may suggest a
no nonsense boss =person>, or an austere palace =object>.
Us#r0 "he brand suggests the kind of consumers who buys or uses the product.
6e would expect to see a fifty five year old top executive behind the wheel of a
%ercedes, not a twenty-year-old secretary.

"he word GbrandG, when used as a noun, can refer to a company name, a product
name, or a uni@ue identifier such as a logo or trademark. +n a time before fences were
used in ranching to keep oneBs cattle separate from other peopleBs cattle, ranch owners
branded, or marked, their cattle so they could later identify their herd as their own. "he
concept of branding also developed through the practices of craftsmen who wanted to
place a mark or identifier on their work without detracting from the beauty of the piece.
"hese craftsmen used their initials, a symbol, or another uni@ue mark to identify their
work.
;ot too long afterwards, high @uality cattle and art became identifiable in the
consumerBs mind by particular symbols and marks. -onsumers would actually seek out
certain marks because they had associated those marks in their minds with tastier beef,
higher @uality pottery or furniture, sophisticated artwork, and overall better products. +f
the producer differentiated their product as superior in the mind of the consumer, then
that producerBs mark or brand came to represent superiority.
"odayBs modern concept of branding grew out of the consumer packaged goods
industry and the process of branding has come to include much, much more than just
creating a way to identify a product or company. $randing today is used to create
emotional attachment to products and companies. $randing efforts create a feeling of
involvement, a sense of higher @uality, and an aura of intangible @ualities that surround
the brand name, mark, or symbol.

, brand also stands for the immediate image, emotions, or message people
experience when they think of a company or product. , brand represents all the tangible
and intangible @ualities and aspects of a product or service. , brand represents a
collection of feelings and perceptions about @uality, image, lifestyle, and status. +t is
precisely because brands represent intangible @ualities that the term is often hard to
define. +ntangible @ualities, perceptions, and feelings are often hard to grasp and clearly
describe. $rands create a perception in the mind of the customer that there is no other
product or service on the market that is @uite like theirs.. , brand promises to deliver
value upon which consumers and prospective purchasers can rely to be consistent over
long periods of time
Brand Positioning
"he concept of perpetual space forms the theoretical basis for positioning . "he
consumer7s mind is thought of as geometric space and brands are plotted in that space to
represent consumer judgments. "his is done with the help of perpetual maps that helps a
marketer to see which brands are closer to his brand and that helps him to find out his
closest competitors. "he task of the marketer is to mould consumer perceptions so as to
occupy the desired position for his brand. &ome thoughts offered by various authors with
respect to $rand ositioning are as follows:
1>S+&roto S#ng+)ta gives a comprehensive three point definition for positioning.
,ccording to him
a> "he position of a brand is the perception it brings about in the minds of the
target consumer.
b> "his perception reflects the essence of the brand in terms of its funcional and
non-functional benefits in the judgement of that consumer.
c> +t is relative to the perceptions , held by that consumer, of competing brands ,
all of which can be represented as points or positions in his or her perpetual space and
together make up a product class.
4> ,ccording to #i5&st#in ! "a(id K 9 ositioning refers to the place a brand
occupies in the mind in relation to a given product class. "his place was originally a
product related concept concerning market structure ."he concept now refers to the place
that the brand holds in the consumers mind relative to perception and preferencesN.
A> Mi$%a#5 J Ba3#r defines $rand ositioning as 9 the policy used to ensure that
the brand has a distinctive position in the market place , identifiable by the consuming
public. $rand ositioning =has> to ensure the brand a distinct niche in the market N.
:> Mitt#5stadt! C%ar5#s 9ositioning refers to how you want your brand O thought
about7 in connection with competitors in its product category . ositioning needs to be
specific to your brand aimed at specific target audiences
T%# &#n#fits of Branding and Brand Positioning
, well positioned brand influences the buying decision and shapes the ownership
experience.
$randing creates trust and an emotional attachment to a product or company. "his
attachment then causes a brand7s market to make decisions based, at least in part, upon
emotion-- not necessarily just for logical or intellectual reasons.
, strong brand can command a premium price and maximi*e the number of units
that can be sold at that premium.
$randing helps make purchasing decisions easier. +n this way, branding delivers a
very important benefit. +n a commodity market where features and benefits are virtually
indistinguishable, a strong brand will help customers trust it and create a set of
expectations about its products without even knowing the specifics of product features.
$rand positioning help to Gfence offG customers from the competition and protect
market share while building mind share. Hnce a brand has mind share, the customers will
automatically think of the brand first when they think of that particular brand7s product
category.
, brand is something that nobody can take away from anyone. -ompetitors may
be able to copy the products, the patents will someday expire, trade secrets will leak to
the competition, the proprietary manufacturing plant will eventually become obsolete, but
a strong brand will live on and continue to be uni@ue. +n fact, a strong brand name may be
the most valuable asset for any company.
, strong brand can make actual product features virtually insignificant. , solid
branding strategy communicates a strong, consistent message about the value of the
company. , strong brand helps to sell value and the intangibles that surround products.
, strongly positioned brand signals that it want to build customer loyalty, not just
sell product. , strong positioning campaign will also signal that a brand is serious about
marketing and that it intends to be around for a while. , well positioned brand impresses
a firmBs identity upon potential customers, not necessarily to capture an immediate sale
but rather to build a lasting impression of itself and its products.
, brand helps to articulate a companyBs values and explain why they are
competing in your market.
eople do not purchase based upon features and benefits. eople do not make
rational decisions. "hey attach to a brand the same way they attach to each other.
&imilarly, purchase decisions are made the same way, first instinctively and impulsively
and then those decisions are rationali*ed. , strong brand helps mold and shape that
emotional reaction in people, which is a very strong influencer in the purchasing
decisions they make. Hnce they have an emotional attachment to a brand, then they will
justify their purchase decision based upon product features and benefits.
C%a)t#r A
Brand Positioning Of oo, ACs


Introd+$tion
ositioning is the pursuit of differential advantage. $rands can create franchises
of loyal consumers only when they are seen to be different in some way which is
persuasive for the target market. "here is no such thing as commodity. ,ll goods and
services are differentiable. Hne of the major contributions of positioning theory of
marketing strategy has been to bring out the concept of distance and dissimilarity
between brands in the Operpetual space7 of the prospect and to uncover the many
opportunities for such perceived differentiation based upon the capabilities of the product
and its antecedents.

Strat#gi#s Of Positioning

, marketing manager has an array of differentiating strategies.. )e has to judge
which of these strategies can help him locate a niche in the market where his brand may
be perceived by his target segment as uni@ue and where it will hold a competitive
advantage. &ome of the positioning strategies used by ,- brands are as follows:
1B Cat#gor/- #5at#d Positioning
"his is an important differentiating strategy that is used when an existing product
category is too crowded to take the same basic product and position it in another
category, provided the attributes of the product can match consumer expectations from
that category. "his is referred to in the jargon as Omacro-positioning7 or inter-set
positioning7. !g. '( decided to position its ,-s as '( )ealth ,ir &ystem ,ir
-onditioners thanks to its lasma technology in split air conditioners ."hey
revolutionari*ed the ,- market by positioning their brand in the health category because
it was an unoccupied platform which had a lot of potential.
4B Positioning B/ Pri$# .C+a5it/
"his is a simple concept but a powerful one in a developing economy like that of
+ndia. "he consumer looks at the products in a category , at different levels of price,
offering different standards of @uality, and decides which price-cum @uality level is most
suitable for a given need. "he consumer in a country like +ndia still is still conscious of
price and doesn7t mind compromising on @uality if there is a significant difference in
price.
!g. ;ational ,-s have been positioned using this strategy. "he tagline itself
defies its positioning- 9IF ITS NATIONAL ! ITS AFFO"ABLEN
AB Positioning B/ Prod+$t Us#r-
"his approach associates a product with a user or a class of users. "his kind of
strategy is used by developing the personality of the brand which is aimed at a class of
users to identify with the personified personality of the brand and find the same
characteristics and values which will strike an emotional chord with the consumer and in
turn make them purchase the brand.
!g. )itachi ,-s 9 For T%os# W%o S##3 P#rf#$tionN Fser <riven ositioning.
:> Positioning Wit% #s)#$t To Us# Or A))5i$ation-
"his strategy is used when a particular brand has an added advantage over other
players in the market and wants to ride high on it.+t is the most logical thing to do
because positioning is all about creating a differential advantage and placing it in the
mind of the consumer.
!g. &amsung ,-s have been doing this by using the tagline 9A& Gar,i
C%oo MantarD
"hey are making such claims because their ,-s have a uni@ue : coil condenser
as compared to the other brands which have 4 coil condensers. "his technology gives
their ,-s an edge both in cooling and in efficiency.

!g: (odrej is doing this by using the tag line Enot%ing $oo5s fast#rD .
"hey are making this claim because their ,-7& are fitted with silent
energy efficient compressor and they have a very high cooling capacity
Co,)on#nts Of Positioning
"he positioning strategies of all the ,- brands in the market are based upon the
four basic components of positioning. "hey are as follows
1. Prod+$t C5ass-, product class or product market can be defined as the set of
products and brands which are perceived as substitutes to satisfy some specific consumer
need. "he term, product category, is also used interchangeably with product class and
product market. , brand cannot decide upon its positioning unless it knows the structure
of the market and positioning of other brands so it can lodge itself accordingly in the
perpetual space of the consumer.

6ith respect to the ,- market the knowledge of the market comprises of the
kinds of brands available namely +ndian, Kapanese, Jorean , their market shares, the
capacity of ,-s ranging from 1 to A tons, the technology being offered and at what
prices. ,lso the players have to consider the unorgani*ed market and the substitutes like
coolers which have a si*eable demand in the northern region of +ndia..
4. Cons+,#r S#g,#ntation- +t is impossible for a brand to think of a positioning
strategy without at the same time considering the segment for which it wants to offer the
benefit and whether that benefit is being offered by any other brand in the market.. "his is
so because all the aspects related to the positioning of the product such as the pricing,
advertising and placement will be done keeping in mind the end consumer.

,-s are basically classified as the whitegoods which have a penetration as low as
4 5 in a country like +ndia. "his is so because +ndia is a developing country where
majority of the population is lower middle class. ,- is targeted at the middle-middle
class and upper classes because of its high purchase price and also high operating cost.
,ccording to the statistics given by $usiness 6orld the middle income level group share
is going to increase by 400/ expanding the ,- market. ,lready there are players such as
;ational, )itachi that appeal to the middle income group because of their pricing which
ranges from 1/,000 to 40,000 . "here are players which target the niche market such as
'(, &amsung , -arrier and )itachi with an average price of about A0,000. "hen there are
players who are between the two markets such as Eoltas, (odrej. +n order to expand their
markets already brands like '(, -arrier , )itachi have started offering various finance
options to their consumers.
A. Cons+,#r P#r$#)tion- +t is a very important component of positioning. $efore
positioning of a particular brand it is very important for the brand to know what does a
consumer think about the product or service which is going to be launched by the brand .
6ith the help of this the customers need or expectations from the product , its ideal
pricing etc.can be found out. ,t the same time brands also try to find out about the other
brands and their image in the minds of the consumer. "his involves an intensively
planned research methodology that helps a manager to plot a graph with respect to the
results received and get an idea about the perpetual spacing of the mind of the consumer.
"his ultimately helps a brand to identify the ideal positioning strategy that will occupy
the desired image in the mind of the customer.

+n the ,- market the general perception about the ,- as a product was that it
was a cooling machine. +n the middle nineties players of the market were basically
fighting on the grounds of technology ,prices offering varied features, designs , exchange
offers to lure the customers with ,merican giant -arrier ,ircon ruling the roost. "hen
came a new breed of air conditioners lead by '( which gave a new dimension to the
industry by introducing health ,ir system air conditioners . $rands like )itachi, &amsung
also came up with new technology and innovative products leaving players like -arrier,
Eoltas, ;ational far behind who had taken the +ndian consumer for granted and never
bothered to bring new products until the entry of Jorean and Kapanese brands. "hese
brands have managed to make people believe that there is more to an air conditioner than
cooling. eople now perceive brands differently and know what to expect from each
brand thanks to their uni@ue positioning. "hey perceive '( as a )ealth focused brand,
&amsung as efficient and high-end technology brand, ;ational as a low-end price brand
and <aikin as a low noise-creating brand. "hus the current breed of ,-s are being
perceived by consumers in a different vein with respect to each ,- thanks to aggressive
and distinct positioning.
P#r)#t+a5 S)a$ing Ma) In T%# Mind Of Cons+,#r

"he concept of perpetual spacing has already been discussed in the report earlier.
+t is the perception that the consumers have regarding the various brands in the market.
"he above map has been designed keeping in mind the response received from the
primary data collection with the help of @uestionnaire filled by the consumers. "he
perpetual space occupied by the brand in the mind of the consumer is basically because
of the experience, advertising, and discussions with friends, relatives. !very brand tries
its best to create the correct image in the mind of the consumer. +n order to succeed in
their motives they spend heavily in advertising and creating the right message that will
give a clear idea to the customer about what they should expect from the concerned
brand. ,s a result there is a trend of developing suitable taglines that try to highlight the
speciali*ed service being provided by the brand.
"he following "aglines are used by the brands in the market to occupy the desired
space in the minds of the consumer. "hey help the consumer to build their perception
about a particular brand:
Brand "agline
)itachi For those who seek perfection
-arrier
<ifferent ;eeds for <ifferent
eople
Eoltas ,che ,chon ko "handa Jar <e
'( urest 6ay to $reathe
$luestar $reathe !asy
&amsung ,b (armi -hu %antar
<aikin +f its ;ational its ,ffordable
6hite6esting)
ouse =!lectrolux>
!njoy the Freshness
Jenstar "he 6ay the 6orld 'ives
(eneral "he !xtreme %achine
(odrej ? ;othing -ools Faster
=. B#n#fits Off#r#d B/ A Brand
"he benefits offered by a brand form the final and the most important of the four
components of positioning. , consumer expects certain benefits from each product and
for reaping those benefits he pays a price which incidentally is the cost of the product
offered by he brand.. 6hen a consumer is going in for a purchase he has only those
benefits in his mind which he feels he wants to reap and is on a look out for a brand
which can provide the desired benefits. +t is very important for a brand to know which are
the ideal benefits a consumer is seeking and make sure that they are able to provide those
to the customer which in turn would grant them an immediate position in the mind of the
customer and would put them on the priority list of the customer amongst all others
because the consumer would be able to identify with it the most as the brand is giving
them what they expect from it.
"oday when a consumer goes to purchase an ,- he is aware of the various
benefits being offered by the brand thanks to aggressive advertising, exhibitions, trade
fairs, web-sites, maga*ines, catalogues, friends, relatives etc. "here were times during
mid-nineties when all an ,- was expected to do was cool the room. ;ow people treat it
as a status symbol and want it to improve the aesthetics of the room, be easy to operate
and improve and maintain health by providing cool, pure and healthy air. "hus a
consumer is willing to purchase only that ,- which is providing these benefits and at a
reasonable price which again has been a major factor in a developing economy like +ndia.
$rands like '(, )itachi and &amsung have been able to provide all the perceived
benefits and that is the reason that they have been able to dethrone ,merican %;- giant
-arrier ,ircon and other +ndian brands such as Eoltas, (odrej, etc. +t is not only
important to make an ,- which can provide the re@uired benefits but is e@ually important
to position it in the right manner so as to reach the desired consumer. '( has been most
successful in this aspect by positioning its health concept to perfection and is now reaping
the benefits by becoming the market leader in the ever-growing room ,- market.
C%a)t#r F
Ana5/sis Of Positioning Strat#gi#s Of BrandsT%ro+g%
Print Ad(#rtis#,#nts

,dvertising is one of the most important modes which companies use to position
their brands. 6ith the help of advertisements the consumers can be induced to buy the
brand by making them aware of the benefits of buying their brand over other brands. 'ike
all other markets ,c market is no different and here also the advertising is heavy but
seasonal. "he peak period of ,-s is %arch to %ay followed by a lull of about three
months before the sales pick up again in the month of &eptember but that too for a couple
of months because then winter strikes most of the country. ,lso most of the players prefer
rint media as compared to ,udio-Eisual media due to cost factor as the demand is not
much. ,lso consumers like to know in detail about the features , prices, finance options
which can be expressed explicitly only in the print media. "here are some big players like
'(, )itachi, -arrier which advertise fre@uently on ".E during the season but otherwise
print media is the preferred medium. "aking these reasons into consideration the analysis
is based on the print adds for the months of %arch, ,pril and %ay.
1B Sa,s+ng 0 &amsung has been mainly focussing on the product feature
advertising. "hey have tried to create a distinct image in the minds of the customer as a
power saving ,- with high efficiency and generator of pure and healthy air. "abu is
endorsing the brand.
2B Hita$%i : "he advertisements stress on the features of microprocessor. "he
adds differ from talking about the self-adjustment of ,- to room temperature or its
function of automatically switching on with the right temperature as keyed in earlier or its
power saving feature. ,ll this thanks to its microprocessor. &ome advertisements also talk
about the 0 percent interest finance schemes.
6B <#rdant fro, <o5tas: "he ads have been stressing on features like pure and
healthy air, temperature adjustment, electricity savings. "hey also have icons to give
details regarding the features. $ut unlike &amsung they don7t have any celebrity
promoting their products. "he focus is on the model Eerdant which they have placed as
the future high tech air conditioners. &ome of the ads also focus on their cooling system
that suggests that the room will be cooled thoroughly irrespective of its placement.
=B Godr#' Int#55i- "here has been only one ad talking about its ability to get
programmed to consume the units of electricity as desired by the consumer. +t is this
feature that separates it from the other ,-s but the advertising with respect to this is very
mild.
Godr#' S,art$oo5: "his add covered all the models Pwith photographs Q being
offered by (odrej and the various features such as energy saver, sleep mode, rotary
compressor etc. "he punch line in this ad talks about taking the woollen clothes out
which suggests that ,- might just be too cool for a person to be comfortable . "he
function of an air conditioner is not all about creating a cold environment but to condition
the air in the environment and make it most suitable and comfortable for the person
sitting in the room. "he ad might just give a wrong idea to any prospective customer.
>B G#n#ra5 0 "hey have also advertised just once in the last one month. "hey have
been trying to lure the customers by calling their ,- as the most powerful ,- with
respect to their cooling capacity and cooling speed. "he ad is not effective as it does not
give any idea to the customer about the product features or other details such as price,
models etc.
?B G#nstar0 "here have been just 4 advertisements in the last couple of months.
"he first one spoke about the price while the second one was also revolving around price
with the concept of exchange offer. "hus they are trying to lure the customers by offering
them price parity with respect to other ,-s. Hne of their punch lines says Bring in the
winter which is trying to project that the ,-s are all about cooling. +n one particular ad
they have compared their features and price with other brands and showed their
superiority over them.
AB Nationa50 "heir advertisements have been focusing on the 0 percent interest
finance scheme. "hey are also advertising the competition which guarantees the return of
money spent to buy their ,- in case of the slogan of the buyer is worthy enough which
he has to fill in the form while purchasing the ,-.
FB F#dd#rs L5o/d : "heir advertisements are also price oriented. "hey are trying
to persuade the consumers by printing the prices in bold and using punch lines such as
ACs for 19500.
8B W%it# W#sting%o+s# fro, E5#$tro5+-: "hey have been focusing on their
triple filtration process which results in pure and fresh air. ,lso the advertisements stress
that the ,-s can withstand voltage fluctuations thanks to its )<!! compressor.
19B LG- "he advertisements have been mainly focusing on the concept of pure
and healthy air thanks to its plasma technology. "hey have been effectively using their
catch line- Pamper your lungs. "here have advertisements regarding their :
th
anniversary
offering free gifts on purchase of '( ,-s. &ometimes the advertisements have focused
on low noise creation. "hey have advertised the most in the months of ,pril-%ay as
compared to other brands.
11B Carri#r: "hey are the market leaders in the ,- market today. "heir
advertising differs from product oriented where by they talk about the efficiency, low
noise creation, pure air etc to price oriented where by they offer various interest free
finance schemes.
12B "ai3in: "hey have been targeting the customers with their catch line ?
complete silence. "hey have promoted their ,-s as no noise polluting ,-s. "hey have
not been speaking about other product features or price. "he customer doesn7t get a fair
idea about the product from their advertisements. "he ads boast of it being the ;H. 1 ,-
of K,,;.
16B B5+#star0 "hey have also advertised heavily in the months of %arch and
,pril. "heir advertisements have been focusing on the product features and prices. "he
features promoted are same as other ,-s namely pure and healthy air, sleep mode, power
saving compressor etc. they have used models in some ads to add value to the ads. .
Stri3ing Points Wit% #s)#$t To Ad(#rtis#,#nts
1.F#at+r#s: ,lmost all the brands have been talking about features that are
common to each other except for the features advertised by (odrej intelli of their power
controller. has launched its new range of !H; air conditioners with a revolutionary
technology in split air conditioners for the first time in +ndia.
"hese air conditioners are built with (odrej7s advanced i-&ence "echnology, which
ensures that the temperature around you is exactly what you wish to have in the room or
hall.
2*Warrant/0 ;ot everyone has been talking about the warranty period. $ut there are a
selected few like Jenstar, Fedders 'loyd, Eoltas, '( which are offering a A-/ year
warranty on the compressor.
6* Aft#r Sa5# S#r(i$#: !very brand has given the list of their dealers and service
centres. $ut Fedders 'loyd have also focussed on their 4: hour service call stressing on
their dedication towards the consumer satisfaction. Eoltas have also mentioned about
their customer care service that places these two brands as customer friendly in the minds
of the customer.
=*I$ons0 "he icons are basically used by the brands to give an insight to the
consumer about the other features of the product other than F& of the product. %ost of
the brands are effectively using the icons but for (odrej, Feddders 'loyd, ;ational,
-arrrier , ,mtrex )itachi, <aikin, $lue&tar. "hese brands have been focusing only on
their strengths and are not talking about features that are common to all.
>*Finan$# O)tions: %any brands offer easy finance options so as to make the
product available even to people who cannot afford to buy the ,- buy paying the amount
at a stretch. "his way the companies are able to target and tap a wider market. $rands like
;ational, -arrier, &amsung, '( are offering 0 percent interest finance option to
consumers making it easier for the consumers to buy their product. ,lso Eoltas and
)itachi have different finance schemes to attract the consumers towards their product.
C%a)t#r 8
COMPAITI<E BAN" POSITIONING Of
LG !GO"EJ @ Hita$%i
, well-positioned brand is that which has been able to identify with the pulse of
the customers by being accepted by them. +f one goes by statistics then '( is the market
leader in room ,- segment followed by &amsung and )itachi. "hey are the ones who
have been able to change the face of the +ndian market by displacing -arrier ,ircon who
has been ruling the roost for last ten odd years. 'ogically to compare the positioning
strategies of two brands '( and &amsung could have been chosen but then there are
reasons for choosing )itachi over &amsung. $oth '( and &amsung originate from Jorea
with each owning a 1005 subsidiary in +ndia while )itachi is a Kapanese brand having a
joint venture with ,mtrex . $oth of them have a strong presence in +ndia with respect to
other durables where as )itachi is not strong in other durable markets. ,lso )itachi has
been @uiet innovative and aggressive in its positioning along with '( where as &amsung
has kept a low profile with respect to it positioning. ,lso )itachi is expected to garner
more share in the coming period because of its new range of 'ogicool ,-s which have
already become very popular and are expected to )itachi in the second place ahead of
&amsung. ,ll these make )itachi a better proposition for comparison with '( which has
revolutionari*ed the market with their positioning.
"he analysis is based on the information obtained with the help of dealer survey,
consumer survey and interviews with the personnel of '( and )itachi.
,nalysis is done on the basis of some aspects that form the basis of positioning.
1> Cor)orat# Ba$3gro+nd
AB LG - +t is a Jorean company which is a major player in the consumer
electronic segment as well as the durable goods segment all over the globe. "heir
products all over the world have been positioned on the health platform. "hey have their
plant located at ;oida near <elhi.+t is that category which has found an instant rapport
with the consumers all over the world. +t is a universally accepted fact that )ealth is
6ealth and everyone has become over-cautious with the issue of health in this era where
deadly diseases like ,+<&, -ancer, ,sthma, $ronchitis etc. are spreading like a forest on
fire. eople have become fitness conscious and believe in prevention rather than cure.
)ealth was one category that was left unoccupied by the major players in the entire
appliances category as all the major brands were running after technology and innovation
because they thought that a consumer wanted comfort and technology. '( reali*ed that
innovation is important but today7s consumer is e@ually bothered about the environment,
society and most of all personal health because it is the most basic factor of any
individual7s life. "hus it decided to position its brand in the health category and the
results have been overwhelming. "his is because all global players have been fighting a
technological battle where as '( has gone ahead and created a new category called
where they have been using innovations to create comfortable as well as healthy lives for
people. "hus they have created a corporate image of a brand, which will create a better
and healthy tomorrow for the consumer.
BB GO"EJ GE0 is the joint venture between (H<.!K and (! appliances,
which is subsidiary of F& (eneral !lectric -orporation. "he joint venture is of :0:80 i.e.
:05 of e@uity investment is by (odrej and 805 by (! ,ppliances.

(odrej (! started its ,- business five years ago in 1222. "heir market share is
very low i.e. only A5. "hey manufacture their ,-7s at BA""I in .ajasthan. ,t present
their turnover is A4 crores.
CB A,tr#--Hita$%i : +t is a joint venture between )itachi 'td, and the Kapan a
'albhai (roup, ,mtrex )itachi ,ppliances 'td. centered in ,hmedabad with its
manufacturing facilities based at Jadi and &ilvassa. "he annual capacity of the company
is around 0.1 million per annum.

,hmedabad based ,mtrex ,ppliances C )itachi, 'td., head@uartered in "okyo
Kapan announced a new strategic alliance for the +ndian .oom ,ir-conditioning
market.way back in 1223. * Kapanese giant )itachi entered into a strategic alliance with
,- manufacturer ,mtrex in a bid to strengthen its presence in the +ndian market. )itachi
and 'albhai group are e@ual shareholders in ,mtrex )itachi ,ppliances holding A/.4 per
cent each and balance held by the public ."he alliance has range of ,-s which includes
0.D/ "r to 4 "r of window ,-s, 1 "r to : "r of split ,-s, decorative split ,-s such as
Ruadra and "ower, concealed split units, ductable ,-s, packaged ,-s and recently-
introduced 'ogicool range of ,-s which the company claims saves up to A:5 power.

2B Branding
AB LG : 6hen a product is being launched into the market it is very important to
brand it in the most uni@ue and different manner as compared to the products of the other
companies. 6hen '( decided to launch its air -conditioners in +ndia in 1223 it decided to
follow the corporate branding strategy because it had already established its brand in the
home appliance segment as a trustworthy and popular brand. ,lso all the other players in
the home appliance segment were also following the corporate branding strategy. "his is
so because consumers tend to compare the @uality standards and performance of the
various appliances and start forming an opinion and trust about the brand as a whole with
respect to the various products offered by the brand. '( had created an image with
respect to their early home appliance range that they knew would help them in gaining
the market share of air conditioners because the consumers would be immediately able to
identify with the brand. "hus '( decided to stick to the corporate branding because when
a consumer would go in for a purchase they will definitely carry the image of innovation ,
technology and great after sales service offered by the brand with respect to the other
products which in turn will instigate them to have faith in the ,-s of the brand and
influence their buying decision.
BB Godr#' GE appliances follows dual branding strategy relying on both (odrej
and (! brands . there are no products carrying (odrej (! label . (odrej brand has
strength in refrigerators , washing machines , ,ir-conditioners and cooking range
segments I (! added more strength through imported ranges of refrigerators , washing
machines and , dehumidifiers . (odrej (!7s strength is in customer care and after sales
service .
CBA,tr#--Hita$%i : +t follows the dual branding strategy wherein )itachi brand
appeals to individual buyers and ,mtrex provides good value proposition to the across-
the-table buyers like (overnment, -orporates C -ommercials. "hus the two brands have
their own value proposition for different segments. .etail consumers, household
purchases have certainly shown an inclination towards %;- brands. "herefore, ,),'
will not be marketing ,mtrex brand anymore through retail outlets. )owever, bulk
buyers and institutional air-conditioning business where prices are negotiated, ,mtrex
will continue to offer its range of products. "he company will now focus on building the
)itachi brand name and so have already increased their promotional budget from 3 crores
to 40 crores this year. "he recently launched 'ogicool range collection is being promoted
under )itachi brand name only. $ehind the name )itachi stands a long and proud
tradition of bringing together the most innovative, technically advanced products to
customers."he name G)itachiG literally means GsunriseG, reflecting the founding
philosophy of contributing to people and society through technology. "his vision has
helped )itachi become one of the worldBs largest corporations. ,),' introduced its
)itachi brand this February and adopted the dual brand strategy, offering the )itachi and
,mtrex brands at different price points. 6hile ,mtrex is for the masses carrying a price
tag ranging from .s 4/,000- 43,000, )itachi is aimed at the premium segment costing
between .s A8,000 - :0,000.
6B Brand Postioning0
AB Cat#gor/ #5at#d Positioning- '( analysed all the positioning strategies like
$enefit -related positioning, ositioning by usage occasion and time, rice-Ruality
positioning and -ategory related positioning strategies being used by the various players
in the market and finally decided to use the category -related positioning. "he @uestion
was to enter the technological category which was already overcrowded with other
players like &amsung, )itachi , -arrier or to create an all together new category which
would help to create a distinct position in the mind of the consumer. '( had been
positioning its brand in the health category across all the appliances throughout the globe
and they decided to do the same with air-conditioners in +ndia. "hey took the first step by
branding them as '( )ealth ,ir &ystem ,ir conditioners which itself created a distinct
place for their brand in the market because people had never come across this concept of
an air conditioner acting as a health air system. ,-s are priced at upper middle class with
the average income per month exceeding .s. :0,000 -onsumers had come across brands
talking about efficient ,-s, programmable ,-s , stylish ,-s but no brand anytime
during its positioning spoke about pure and healthy air until '( established their health
positioning strategy. +ts a different story that after the success of '( everyone has
suddenly discovered the hidden technology of their ,-s or redesigned their ,-s to
provide cool and healthy air. "he baseline of the brand says 9 "he purest 6ay "o
$reatheN which suggests that they have tried to tap the most basic and important facet of
human life and that is respiration. ure and clean environment is what an individual
craves for in today7s polluting times thanks to the rapid industriali*ation and
development. ,fter a hectic day7s work a person wants to relax and wants a soothing
ambience and that is what '( air conditioners provide cool, clean and healthy air. "he
success of their air conditioners lies in the fact that people are becoming more and more
health conscious and when the issue is that of clean and pure environment they don7t
want to take the chances because breathing is the crux of human life and no one is going
to compromise on this aspect provided they have the resources.
BB )ositioning a$$ording to +s#: ositioning with respect to use : the people now
a days need things that can get the work done very fast because they have very less time
in their stressful and bussy life . so godrej has used the tagline E not%ing $oo5s fast#rD
which can attract such kind of people. )ome segment is their target market . so if we look
at it from one angle then it has a better scope because if people come tired from their job
they have to wait after putting on ther ,- so that it should give cool air .this creates
frustrations for them as they have to wait. &o the people will be attracted towards godrej
as it is the fastest cooling ,- people don7t have to wait for it . this is the reason people go
in for buying godrej .moreover the people owing this ,- feel proud in telling other
people who are having other ,- that 9my ,- is faster than yours 9. "hus the brand is
giving psychological satisfaction to the people .
CB Us#r "ri(#n Positioning- )itachi has a devised a very catchy and focused tagline
for the brand 9 For "hose 6ho &eek erfectionN which clearly classifies their positioning
as user driven. ,-s are priced at upper middle class with the average income per month
exceeding .s. :0,000. ,s their advertising campaign suggests they are targeting that
segment of consumers which are very particular about each and every thing they do be it
their work or the appliance they own. "hus if you look at it from one angle the
positioning seems to very limited in its scope because there are not many people who
have this kind of an attitude. $ut the other angle will suggest that the positioning is smart
because human nature is such that it craves to associate itself with the best in the business
and perfection is that trait which every individual would like to flaunt. ,nyway owning
an ,- itself is a status symbol and owning an ,- that personifies itself as perfectionist
only adds value to the already hyped status of the owner. "hus the brand is playing with
the human psychology with respect to its positioning and has been largely successful in
their efforts.
Ad(#rtising@ P+&5i$it/
+t is very important for a brand to know its target market, the buying behaviour
and the pattern of consumer so that it can effectively formulate its advertising strategy to
position its brand. "he peak sales period in the room ,- market is from %arch to may
followed by a lull in the market and then sales pick up again in the month of Hctober.
AB LG- '(7s advertising account is handled by ,merican %;- 'owe 'intas. "he
annual advertising budget is around 2A crores for the year 4001-04. . '( has advertised
aggressively both in the print media as well as audio-visual media such as newspapers,
maga*ines, and ".E etc.during the months of %arch to may. "he advertising has mainly
been mainly a mix of brand and product positioning. "he initial ads showcased the story
of a senior citi*en who wishes to go for a walk but is unable to do so because of rains and
then he is suggested by his daughter to take a walk in the house itself as the '( ,-
would make sure that the air is fresh and healthy, with respect to its plasma filter
technology. "he ad ends with the person walking on the exercising machine with a smile
on the face.
LG-H#a5t% and Ha))in#ss in #(#r/ &r#at%.
+t advertisement features a small girl standing on feet of her father and father is
catching her hands and walking.
"he other advertisement is father after playing with his child takes him in his
palms and starts walking because the child is tired. "his shows the good health of the
father as he breath fresh air of '( ,ir-conditioner.
+ts another advertisement featured that a father beats his son with a pillow before
going to sleep and then -hilds mother and sister starts beating the father rescuing the
child. "his shows their health and happiness
"hen there was another &wit*erland 9"o )ai .ight +dharN popular advertisement
where in a man is shown going to &wit*erland where by he just moves from one room to
another one fitted with '( lasma air conditioner, stating that thanks to the cool, pure
and healthy air pumped by '( &wit*erland7s ambience is created right in his bedroom.
"hey have now started advertising about the technology aspects of lasma filters with
respect to the many (oalkeepers commercial and a lot of print ads. ,nother one of their
popular ads has been that of positioning their $rand as a tool to respire on land just as an
oxygen cylinder is re@uired to breathe under water. "hus they have captured the health
category with respect to the concept of cool, clean and healthy air with smart and
innovate adverisements. "heir advertisements also talk about their service that is perhaps
the best in the business and the 05 finance options available for the consumers. "hey
have also been using corporate advertising where by they advertise all the products under
the '( brand. "his is generally done during their anniversaries or festive seasons or slack
periods to offer gifts, discounts etc.depending upon the need of the situation. "hey use
banners and billboards very selectively, mostly during festive seasons and off seasons to
promote sales and reduce the expenditure on advertising but at the same time be in the
eyes of the customer. "hey always try to be in the news by participating in exhibitions,
fairs , sponsorships etc. "hey have already been declared the ;0.1 $rand in the room ac
segment where they have displaced the ,merican %;- giant -arrier ,ircon that was
ruling the roost for the last ten years. +t has targeted mainly to the higher income group or
the double income families of the society.
BB Godr#'s advertising account is handled by ")H%&H; ,&&H-+,"!& . the
annual advertising budget is 85 of the turnover i.e. 4.18 crores .
+ts advertisement features that all the family members were sitting for having
lunch . the members included grand father , grand mother , father , mother , and two
childrens . the childrens feel very cold because of godrej ,- and they go and sit on the
laps of their grand parents .
+ts second advertisement shows that all the family members are sitting on
different beds for watching television but as the godrej ,c gets on after few minutes the
family members start to shiver and come and sit on one bed by sticking each other.
+ts third advertisement shows that corporate people had came to attend the
meeting but they go and sit by sticking each other on two-three chairs and leave other
chairs empty.
CB A,tr#- Hita$%i: "he advertisements of )itachi are targeted at &!- , and ,1
males above A/ years of age and car owners. "he advertising is being handled by
Hrchard, %umbai. "he brand has a catchy tagline, OFor those who seek perfection.
)itachi7s advertising handled by Hrchard $ was aimed at developing the personality of
the brand, first with the help of humour driven ".E adds and then strong product oriented
print adds showcasing the benefits offered by the new 'ogicool range of ,-s . &eeing the
competition in the market hotting up )itachi has increased their advertising and
promotion expenditure to .s 40 crore in 4001 from .s.3 crore in 4000. "he initial adds
showcased the perfectionist nature of the bald man with respect to every work being done
by him. "he latter "E adds focused on the features and functions of ,-s thanks to the
'ogicool processor where by the bald man is shown programming the temperature of the
room that he wants on his arrival in the evening. 6hen he returns in the evening he first
checks the temperature from the keyhole and then enters once he is satisfied with the
necessary ambience. "hey have advertised heavily in the months of %arch, ,pril and
%ay talking about the benefits offered by their 'ogicool range of ,-s. "he humorous
adds have worked well for the brand because the brand awareness and recall is high. "he
negative aspect has been that though people remember the adds, the message and the
positioning of the new 'ogicool range and the benefits offered have somewhat not
penetrate the minds of the customer on the basis of which the brand is planning to expand
its market. "he reason can be that people are not exactly thrilled by the benefits being
offered and they prefer other brands like '( and &amsung which have a better image in
terms of the benefits being offered as they have established their technology and
innovation in other white goods as compared to )itachi which doesn7t have a strong
foothold in the other white goods market. "hey are also trying to publici*e their ,-s by
distributing free ,-s through the popular programme 9Jhul Ka &im &imN. "he ,-s are
given to the winners of the show. "his has been a nice way of promoting the brand in the
off seasons. "hey have effectively used the in show mode of publicity which is fast
gaining momentum. ,lready major %;-s like -oke, )yundai have been endorsing their
products through shows, serials and movies. ,nother interesting event with Ket ,irways
had been organi*ed by the company in %arch, where in )itachi ,-s were given to one
full planeload as well as to the best hostess on the flight, subject to fulfillment of
conditions laid down. "hus "he company has been using innovative and aggressive
modes to publici*e their brand.
>B Brand P#rsona5it/

$rand personality is created by brands to give a human character to the brands.
"his is done because now days in the age of technology and innovation each brand is
becoming a commodity and a personality of a brand helps it to distinguish itself in the
overcrowded market. !ach brand develops certain values and characteristics that strike an
emotional chord with the varied range of consumers. "his strategy helps to retain more
customers who sometimes go for a brand because they see their likes, dislikes and
behavior in the brand. ,dvertising agencies play an important role in developing the
personality of the brand. "hey create campaigns that are able to make the consumers
believe that the brand will has the same characteristics if they look at them from a
personified point of view.
AB LG - 'owe 'intas has tried effectively to create the personality of the brand on
the basis of its underlined positioning of health. "he brand has not relied much on the
personality aspect unlike )itachi or -arrier. "his is because the base health positioning
has been so strong that they never bothered to develop this aspect of this brand. +f the
advertisements of the brand are noticed they have not taken any particular model or actor
to promote the brand as &amsung has "abu endorsing the products for the brand or the
bald man creating the personified image of perfection for the brand. '( has been using
different people to promote the brand and they have not relied much on this concept but
still the personality of the brand can be best described with the words healthy and
caretaker because a person can rest assured that '( will make sure that the air in the
vicinty is fresh, pure and healthy.
BB Hita$%i -)itachi $rand has a tagline 9 For "hose who &eek erfectionN which
itself underlines the personality of the brand. "hey have tried to personify their brand
with the help of their effective advertising campaign created by Hrchard $. "he series of
adds shown on ".E first developed the personality of the brand with the help of the bald
middle-aged male model who was shown to be seeking perfection in each and every work
he did. (radually the adds shifted to the script which showed the man using a )itachi ,-
because it gives him all the benefits which he seeks like having the desired room
temperature when he returns from office in the evening thanks to the new 'ogicool range
of ,-s from )itachi.. +t is the only brand that has used the concept of brand personality
so effectively. "he adds with their humourous concept have managed to create the
personality of the brand. +f only they could have managed to rope in ,amir Jhan it
probably could have done wonders to the personality of the brand because he has such a
strong perfectionist image in the minds of the people that probably they wouldn7t have
had to build the personality of the brand through initial adds as they had to in the case of
the current brand endorser. ,lso the sales would have got further boost as compared to
current sales that have put them in the third place in the room ,- segment behind '( and
&amsung.
Brand I,ag#
AB LG ? +t has got the image of being the best brand in the market. -onsumers
believe that it is the only brand that can do justice to the concept of cool, clean and
healthy air thanks to the lasma filter technology. +t also has the image of being the most
customer friendly brand with special emphasis being paid on the after sales service. ,t
'( they have a system of )appy -alls where by the consumer who has bought a '( ,-
gets a call from their -.% department congratulating them on their purchase and
in@uiring about the performance of the ,-. "hus strong product concept along with
innovative positioning and able public relations has established '( as the most reliable
brand in the ,- market.
BBGO"EJ0 +t has got the image of growing and developing brand . according to
")H%&H; ,&&H-+,"!& product is more important as compared to its positioning . it
has the image of being the fastest cooling ,- and so people are attracted towards it.
CB Hita$%i 0 )itachi is fast developing an image of the most innovative and
technology driven brand. +ts features are making the life more and more comfortable for
the users. +t is very user -friendly in spite of high-end technology. eople who have
purchased the brand speak highly about its silent operations. +t works at a noise level of
:4 decibels where as the average for the industry is around /4 decibels .+ts after sales
service is not good and is one area where it needs to improve upon.

AB T#$%no5og/
"echnology is that aspect of ,-s, which is getting standardi*ed in the +ndian
market. "he market is full of foreign brands from Kapan, Fnited &tates of ,merica, Jorea
that are big players in the major part of the world. ,ll of them are spending a lot on
research and development to provide the same functions and features as the other brands
are providing so as to compete on an e@ual platform. '( has been able to differentiate its
technology with respect to ',&%, technology in their split ,-s that have the most
systematic and reliable technology to generate pure and healthy air. "hey have been able
to carve out a niche for themselves in the room ac market becoming the no1 player in the
market thanks to their focused attitude and strategy towards providing health air
conditioners. ,ll other brands have now started offering pure air benefits by incorporating
filters etc. as part of their technology.
AB LG H#a5t% Air S/st#, Windo: ACs
1> Fni@ue ,nti- $acteria Filter
+t removes all dust from the air in the room. +t inhibits bacteria proliferation and
prevents other disease causing germs from entering the room.
4> 'ouvre Fins and (rooved copper "ubing
!ach louvre fin has small heat radiating pores that boost heat exchange
effectiveness and improve cooling efficiency. 6hile the grooved copper tubing ensures
maximum exposure of the inner tube surface to the refrigerant, thus enhancing heat
transfer.
A> )ydrophilic -oating
"hanks to the hydrophilic coated aluminium fins, the angle of contact between
water droplets = that form due to condensation of atmospheric moisture>and the fin is less
than 30 degrees as in the case for uncoated aluminium. "his minimises air resistance and
ensures optimal cooling performance.
:> :-6ay ,ir <eflection &ystem and ,uto &wing
,djustable Front louvres help to direct air flow both hori*ontally and vertically,
while the air circulation vents swing constantly from side to side, directing cool air to
every corner of the room.
/> "ropical .otary -ompressor
"he new "ropical .otary -ompressor not only offers more cooling during the
peak of summer, it also resists voltage fluctuation. "hereby considerably reducing power
consumption and providing more comfortable surrounding, which leads to higher
efficiency and performance.
8> .eversible Hpen ,ir (rille C Hne "ouch ,ir Filter
"his arrangement reali*es easy ejection of air filter from the unit regardless of
installation place.
1B LG H#a5t% Air S/st#, S)5it Air $ondition#rs
1B Air P+rif/ing Fi5t#r
"he filtering sytem utili*es two filters. "he !lectrostatic Filter removes the
finest dust particles and even tobacco,smoke and pollen."he <e -odouri*ing filter
removes unpleasant odours, especially those caused by airbone fungi
a> ,nti- Fungus Filter
+t prevents the breeding of germs such as bacteria and mould which are
harmful to the human respiratory tract.
b> !lectrostatic and <e-odourising Filter
+t removes minute dust particles by electric dust collection method and
effectivelty eliminates odours by the appliction of a high efficiency <e-odour*ing Filter.
c> ,nti-$acteria Filter
"his function is for @uick cooling.+n this mode , strong and cool.air is
blown at high speeds for A0 minutes until the temperature reaches 13 degrees celsius.
:> ,ir Flow &ystem
"hese air conditioners utili*e a stremlined air fan and a uni@ue design
which create smooth air flow from the air conditonerso that it operates under the lowest
noise level."he cross fan , stabili*er and rear guide which cause noise have been
redesigned by hydraulic engineering. "he number of revolutions have been decreased
while incresing the amount of wind. 6ith the best structure gor the air path, the amount
of friction has been decreased which has helped to reduce the noise level drastically.
/> Frost -proof !vaporator ipe
"he outdoor fan motor stops when the indoor coil temperature falls
below A degree celsius and restarts after the coil temperature rises above 8 degree celsius
after 20 seconds. +t prevents damage to the compressor by ensuring that the refrigerant
does not free*e.
8> ,uto Hperation
+t sets the temperature , swithches the fan speed, swings the vertical air
direction louvres up and down by a single selecton auto operation mode. ,ll in
accordance with fu**y logic, dependingg on the current temperature.
D> &leep %ode ,uto -ontrol
, touch of the sleep mode button automatically programs the air conditioner
to turn off, controls the indoor fan speed and adjusts the setting temperature. "hus it
ensures a more comfortable sleep.
3> ,uto .estart Function
6hen the power comes back after a sudden failure , the air conditioner
restarts automatically in the same operation condition as before the power cut
.
2> : 6ay ,uto &wing
"his function blows air simultaneously in four directions, distributing cool
air evenly across the room.
10> 6ith the use of a newly designed compressor , humidity is eliminated to
create a comfortable atmosphere without over-cooling the room. "hus, avoiding any
abrupt, unhealthy drop or increase in body temperature.
11> !fficient !nergy Ftili*ation
"he advanced grooved copper tubing and S -louvre fins maximise heat
exchange efficiency. "hus helps to reduce power consumption and thus reduces the bills.
14> 4 6ay ,uto &wing
)ot or cold air gets evenly distributed throughout the room as the auto
swing function blows the air in two directions.
1A> -hild 'ock Function
"he function prevents children or others from tampering with the control
buttons on the unit."he buttons on the indoor display panel can be locked. "he unit can
then be controlled by the remote.
1:> D hour Hn/Hff "imer
"his function allows a person to set the timer from 1 hour to a maximum of D
hours. "he ,- comes with a fully operational remote control..
2B LG P5as,a S)5iit Air Codition#rs
"he lasma ,ir urifying &ystem within the air conditioner removes
microscopic contaminants and dust to eliminate offensive odours and prevent allergic
reactions. +t can also be used as an air -purifying unit when the air-cooling function is off.
W%at is P5as,aH
+t is the :th energy created by high voltage electricity =8,/00 volts>.+t is pulse
energy which changes dust particles with positive=T> electrodes and cultivates the photo
and radical power to brake odour molecules."he air passes through the following channel
. olluted ,ir--lasma +oni*er--ase-%esh-<ust -ollector--over--lean ,ir . lasma
technology is the only and the most important superiority in these ,-s above the simple
'( split air conditoners. ,ll the other features are common amongst the two classes of
,-s including the fully operational remote control.

'( has been successful in creating a new category in the air conditioning
market and that is health. "hey have been able to redifine the scope of air conditioning
thanks to their technology which gives and creates pure air as no other ,c iin the maket
can. ,t the same time they have able to provide other features which give all the benefits
which are common amongst all the ,-s and are expected from an air conditioner. "his
combination of health and cooling has done wonders to them and has placed them at the
top of the market.


GO"EJ WIN"OW AI . CON"ITIONES
+t7s 6indow ac7s are having rotary compressor and have voltage range of
400-4/0 .it consumes 1A00 watts of power and have synthetic filter.

S+)#r si5#nt $o,)r#ssor0
(odrej ,ir--onditioner has a highly efficient .otary -ompressor
which helps to add to comfort level by keeping noise levels to itBs bare minimum.
"igita5 T#,)#rat+r# "is)5a/0
"he <igital "emperature <isplay allows people to set and view the
desired ambient temperature. &o they can constantly monitor the cooling best suited to
their needs.
M#,or/ Ba$3 +) 0
"his feature ensures that even after a power cut, ,ir--onditioner
returns back to its original setting. &o people donBt need to reset it.
"#%+,idifi#r0
(ives people that crisp hill-station cooling by removing excess moisture.
12 Ho+r-On-Off- Ti,#r 0
,llows people to turn H; or turn HFF the ,ir--onditioner at any time
preset by them. &o no hassles of constantly keeping track of the functioning of the ,ir-
-onditioner.
6 Wa/ Air S:ing0
"he (odrej ,ir--onditioner comes with a A way ,ir &wing which
ensures @uick and uniform cooling.
F+55/ F+n$tiona5 #,ot# Contro50
-onvenience of controlling all the functions of peoples ,ir -onditioner
at their fingertips.
GO"EJ SPLIT AI CON"ITIONES:
+t has the voltage range of 123-48: and consumes 1300 watts of power.
Anti Ba$t#ria Fi5t#r0
(odrej ,ir--onditioner comes with a uni@ue ,nti-$acteria Filter
that helps eliminate germs and bacteria from the air thereby giving people healthy air to
breathe.
"igita5 T#,)#rat+r# "is)5a/0
"he <igital "emperature <isplay on the remote handset allows
people to view the set temperature.
"#%+,idifi#r0
(ives you that crisp hill-station cooling by removing excess moisture.
2= Ho+r-On-Off- Ti,#r 0
,llows you to turn H; or turn HFF the ,ir--onditioner at any time
preset by you. &o no hassles of constantly keeping track of the functioning of the ,ir-
-onditioner.
S5##) Mod#0
"he set temperature changes automatically and increases by 4
o
-
after 4 hours ensuring you get a comfortable nightBs sleep and also maximum energy
efficiency.
S+)#r Si5#nt Co,)r#ssor0
(odrej ,ir--onditioner has a highly efficient .otary -ompressor
which helps to add to your comfort level by keeping noise levels to itBs bare minimum
Hita$%i Logi$oo5 Windo: ACs
Logi$oo5 - "he 'ogicool microprocessor controls for unmatched efficiency.
#,o$on-, full function remote that is extremely user friendly.
Hne "ouch +ntellikey -"he ,c is free from complicated knobs for operating
convenience.
Gai,in Mod#-+t adjusts temperature to the body of the person in the night. "his
helps to save power upto A:5.
S,art S#nsor-+t senses the temperature around the person and not around the ,-
grille.
Po:#r Sa(#r Mod#-+t helps to save power upto 4/5.
A+to #t+rn-+n the unlikely event of the power turning off, the 'ogicool
controller memorises the last settings to restart, on restoration of power.
"ia5og+# Windo:-+t displays the selected mode perfectly for the convenience.
"#ta$%a&5# Gri55s-"his arrangement helps to clean the ac and place them back
easily.
Hita$%i Logi$oo5 S)5it Air-$ondition#rs
1> 'ogicool - "his helps to set the temperature re@uired for a later period. +t varies
fan speed automatically.
4> .emocon - +t has got a full function remote which makes the operation easy.
A> &leep Function - "his helps to adjust the temperature to a person7s body
temperature through the night."hus it also helps to save the power upto A:5.
:> Filter -lean +ndicator - +t gives intimation for filter cleaning.
/> .eal "ime -lock - +t displays the time.
8> Hn/Hff "imer. - +t helps to programme the on and off se@uence electronically as
per the re@uirements.
D> ,uto <ry - "his removes excess humidit, to make the room more comfortable.
3> <ialogue 6indow - +t displays the selected mode forthe convenience o the user.
2> ower &aver mode - +t helps to save power upto 4/5.
10> 6onder Flap - +t ensures uniform distribution of air.
11> owerful %ode - +t accelerates cooling for @uick pulldown of heat.
14> ;ew ,ge Filament Filter - +t cleans pollen and dust. +t provides better indoor
air @uality.
1A> ,uto &wing - +t ensures optimum distribution of air flow in the room.
1:> Joukin Filter - +t is an anti bacteria filter which helps to purify the air.

)itachi 'ogicool air-conditioners are also doing very well in the market. "hey
have helped the brand to increase its market share from 145 to 1/5 in the room ,-
segment. "heir use of technology is mainly restricted to make the operations easy and
convenient. "hey have not been able to provide any other path breaking service in
comparison to '(. "he features offer only those benefits that are present in the other
brands also thus reducing the scope for individuality. 6hatever features are different
from other ,-s can also not act as the F& because they are not value driven and only
add glamour to the product

C%a)t#r 19
S+gg#stions
.
"he following suggestions have been offered to the brands in the
market regarding certain aspects that a consumer would look forward to from the brands
in the +ndian ,- industry. "he suggestions are being offered taking into consideration the
analysis of the results of the consumer survey.

1> En(iron,#nt Fri#nd5/ Prod+$ts: ,ll the brands that are currently operating in
the market have launched the products that use -F-s in their compressors. "he emissions
from -F-s are responsible for depletion of the H*one layer. H*one layer is responsible
for protecting the earth from the harmful ultraviolet rays of the sun ,lready o*one layer
has been depleted somewhat over the ,ntarctica region which has lead to people
suffering from diseases like &kin -ancer and -ataract .+n the western market due to the
monetary protocol which calls for using of environment friendly goods brands like '(,
-arrier and &amsung have already started using )F-s in their ,-s which do not harm
the environment in any manner. +n the new millennium the brands will have to be careful
about the technology being offered in the +ndian market. "his is so because the +ndian
consumer and the environmentalists won7t tolerate the products that offer technology that
is responsible for degradation of the environment in which they live.

4> T#$%no5og/- "echnology is one aspect that changes very fast in today7s world.
,lmost all the players in the global market have been spending millions in research and
development to provide something extra than the other players in the market. '( has
been largely successful in creating the technology which all the brands in the market
envy. "hey have been able to incorporate the lasma technology in their split air
conditioners that have redefined the image of air conditioners. "his has also been the
reason for their success in +ndia. "he +ndian customer would now expect more from the
brands. "he players will have to launch their newer models very soon. "hey should soon
launch the air-conditioners that can be operated with the help of $lue booth technology
vi*.. ,-s that can be run through -s or telephones etc ."he players should also try to
incorporate some better technology for purification in the window ,- just like lasma is
being used for the split air conditioner. "hey should come out with smaller compressors
that will increase the efficiency of the air conditioners. (odrej has already introduced an
,- which can be programmed to consume only those many units of electricity as is
desired by the consumer. "his kind of technology would be really of great help because it
will reduce the operating cost considerably which in turn would boost the sales. %any
people don7t buy ,- because of the high operating cost and this feature would induce
them to by the ,-. "hey should also come up with in built stabili*ers that will make sure
that the ,-s are not getting damaged in case of severe voltage fluctuations.
AB Pri$ing- rice is going to be an important factor in the success of the air
conditioning as an industry as +ndian customer is very price sensitive. "he +ndian
government has done their job by reducing the taxation on this industry for its
development and growth. +ts now up to the players to control the prices and expand their
market share. "he players will have to increase the penetration level of ,-s by offering
discounts, 05 finance schemes and other sales promotion schemes. ,lready some players
have started offering finance schemes to push their sales. Hnce the penetration is
increased it will help players to reduce their prices as they will be able to still earn their
profits by selling more no of units as opposed to selling few ,-s at reduced prices "his
will help them to have economies of scale.

:> Warrant/ And Aft#r Sa5#s S#r(i$#- 6hen a consumer is buying a braded
product he expects certain benefits that he won7t get from an unbranded one. 6arranty
and after sales service are part of those benefits. Hnce a person invests a reasonably big
amount in the purchase of an ,- he wants to rest assured about the @uality and the
service. 6arranty is important because in case of power fluctuations compressors can get
tampered and if they need to be replaced the consumer doesn7t have to spend the money
in case the product comes under the warranty period. "here is more chance of such a
thing happening in a country like +ndia because of fre@uent power cuts, especially in the
north. "hus a consumer feels safe in case of a decent warranty period. +n +ndia mostly all
brands offer warranty is for one year with special warranty being provided on the
compressors for three years because of obvious reasons. ,fter sales service is also going
to be a very important feature because the technologies are going to become common and
it will be left o the people of the company to create a better image in the minds of the
customer through their able public relations and after sales service. ,t '( they have a 9
happy callN system through which they call the consumers who have purchased an '(
product and in@uire them about the performance of the ,-. "his is a suitable example for
good public relations. "he consumer won7t be willing to buy a product that is not backed
by strong after sales service. +f the ,- breaks down in the middle of the night the
consumer would expect it to be repaired immediately. '( has been giving special training
to its technicians to handle the consumer complaints effectively. "his explains why '(
has got the image of being the most customer friendly brand. "he other brands have a lot
of ground to cover in order to enter the good books of the +ndian consumer.
/> On5in# S#55ing - "his is again going to be a key issue in the air conditioning
market in the near future. +t will not be important because all the sales will be through the
net but will be important because it show the attitude and professionalism of the brand
towards the consumer. )ardly /5 of the sales are being carried through '(7s website,
lge*buy.com but consumers respect them for this. "his is so because a consumer can go
and have a look at the range of products and their prices sitting at home thanks to '(7s
site. +t gives him a fair idea about the product he is going to buy or wants to buy. '( has
got another website lgservie.com which gives the consumer an opportunity to place its
complaints in front of the company. "his shows that they care for their customers and
want to give hem what they want rather than milking their own money. Hther brands will
have to learn from '( and create their existence on net and make people aware about
their service. "his will have to be done through strong marketing.
8> So$ia5 #s)onsi&i5it/- !very industry works within the sphere of the society
and air conditioning industry is no different. +t is therefore important for the players in
this industry to follow certain rules and fulfill certain obligations towards society. "oday7s
era is the societal era where each and every individual wants to create a healthy place to
live in. -onsumers also appreciate those industries that contribute to the welfare of the
society by acting as a socially responsible company. "he various companies will have to
take care of these aspects by playing their role to the hilt towards the various components
of the society. "he companies will have to follow the environmental norms of non-
pollution and make sure that they are using environment friendly components in their
products. "hey will have to fulfill the consumer satisfaction by providing @uality goods
and at affordable prices. 6orkers will have to be given both monetary and non-monetary
benefits. "he companies will have to make sure that they are not indulging in any
malpractices and paying their taxes regularly to the government. 'astly they should be
contributing towards the development of +ndia by participating in or sponsoring literacy
programs. greenery mission, ,+<& welfare programs , population control program .etc..
+f they are able to create the right image of a socially responsible company in the minds
of the consumer then it would greatly help them to make permanent impressions in the
+ndian ,- market.
D> #tai5ing- "he +ndian consumer is very difficult to please. )e wants to be very
sure about everything before he goes in for a purchase ."he problem with the ,- brands
has been that they have not been able to expand and control their retail network. "he
brands will have to expand their network and make sure that the ,-s are being treated as
other durables. 6hen the consumers can have a look at the "Es, .efrigerators, washing
machines then why can7t they have a look at the ,- they would like to purchase. ,
consumer would like to see and feel the ,- on which he would be spending A0,000 .s.
)e would like to see the looks and the designing of the product. "he consumers want to
visit a nice and a clean showroom., and have a look at the displayed durables. "he brands
will have to make these things understand to their retailers to push the sales. !ven if the
retailer doesn7t have the space for the full product display he can always fit a board with
just the grilles, which is what a customer wants to see. "his will help the customers to
take decisions as they will be able to see and feel the product, and this one aspect might
just influence their decisions.

C%a)t#r 11
Con$5+sion

+n the new millennium it will be very important for a marketer to
understand the psychology of the +ndian customer with respect to certain aspects that
have been discussed in the suggestions offered. +ndian .oom ,- market had been in its
introduction stage for @uiet a while thanks to players like -arrier, Eoltas, ;ational etc.
which dominated the +ndian market "he products which were launched in the market
were not according to the global standards. Hne reason for this could be the low
penetration level of 45 and the other can be the price factor. +ndia being a developing
country probably wouldn7t have been able to afford the high end technology. "he market
entered the growth stage with the entry of players like '(, &amsung and )itachi who
brought new technology with them that resulted in the downfall of players like -arrier
and Eoltas who were giving outdated technology to the +ndian consumer. ;ow these
players have again started launching newer models to regain the lost ground. "he
perception of ,- as a product is also changing in the minds of the consumer. !arlier it
was perceived as a luxury good which was targeted only at the upper end of the society.
"oday it is being looked at as a good which is in the reach of the middle class consumer
also, thanks to the finance schemes being offered by the various brands in the market.
!arlier it was just looked at as a cooling machine while today people buy an ,- to
improve their health, give them status and to improve the aesthetics of the room. "hey
also expect their ,- to be user-friendly "he +ndian consumer is going to get more
demanding in the coming millennium "he $rand that will be able to understand the
consumer behaviour with respect to their likes, dislikes and re@uirements and use it
accordingly in their positioning strategy will take the biggest slice of the market in the
coming millennium. ,s for now it seems '( is in the best position to do so but the future
can never be predicted and it is better to wait and watch as to what will happen in the
prospective million dollar +ndian .oom ,- segment.
ACGNOWLE"GEMENT
+ would like to take this opportunity to thank all the people without whose
support, this project report wouldn7t have been possible. First of all, + would like to thank
our rincipal "r* S*N* SHETTI .+ would also like to thank M*ABHIJIT BAGA"E,
!xecutive &ales and %arketing, '( ,ir--onditioners !M* SANJAI PAULGA
,!xecutive &ales and %arketing ,)itachi ,ir--onditioners and M*HIMANSHU JAIN
(% instititutional sale , (H<.!K for providing insight about the brand positioning
strategies of the respective brands.

+ would surely like to thank the one person who has remained as the guiding force
and was there for me as a pillar of strength in my times of difficulty of formulating the
project. %y roject (uide Mr* AGESH IA"A< is the person to whom + shall be ever
indebted to.
'astly, + would always be thankful to all my friends, colleagues and family
members whose constructive criticism and unconditional help went long a way in the due
course of this project.
%!)F' KH&)+
"#$%&
Bi&5iogra)%/
Maga4in#s
, C %
$usiness 6orld
$usiness +ndia
$usiness "oday
N#:s)a)#rs
"H+
!conomic "imes
Financial !xpress
Cata5ogs @ Bro$%+r#s of '( , (H<.!K, )itachi.
W#& sit#s
www.indiainfoline.com
www.lge.com
www.igindia.com
www.hitachiaircon.com
www.business-standard.com
www.catalogs.indiamart.com
www.indiatimes.com
www.godrej .com
#f#r#n$# Boo3s0
Mar3#ting Manag#,#nt- hilip Jotler
Brand Positioning Strat#gi#s for $o,)#titi(# Ad(antag# ? &ubroto &engupta
Cr#ating Po:#rf+5 Brands ?'eslie de -hernatony and %alcom ).$. %cdonald
Ann#-+r#
Ruestionnaire For !xecutive

Ruestionnaire For -onsumers
C+#stionnair# For E-#$+ti(#
1. 6hy do you think people have started purchasing branded ,-sU
4. 6hy do you think it is important to position the brand today and not the
productU
A. 6hat is the positioning strategy of your brandU
:. 6hich ,d ,gency is having your accountU
/. 6hat is your promotional budgetU
8. 6hat are your modes for positioning other than advertisingU
D. 6hat is the message you are trying to give through your advertisementsU
3. )ow is the response for online selling and how do you see it in the futureU
2. 6ho do you think is your closest competitorU
10. 6hat is the peak season for the sale of ,-s U
11. 6hat are the aspects that a consumer looks into before going in for a
purchaseU
14. 6hat is your target marketU
1A. 6hich region is your biggest marketU
1:. )ow do you plan to sustain your leadership the coming years as the market
has had an influx of new playersU
C+#stionnair# For Cons+,#rs
1. <o you have an ,-, if #es, which one and whyU
V Fnbranded V $randed
+f branded which oneU
V '( V )itachi V &amsung V Eoltas V -arrier ,ircon V $lue &tar V (odrej
+f ;o, which one would you like to purchase and whyU
V Fnbranded V $randed
+f branded which oneU
V '( V )itachi V &amsung V Eoltas V -arrier ,ircon V $lue &tar V (odrej
4. 6hat do you think is the advantage of buying a branded ,-U
V Ruality V &tatus V ,fter &ales &ervice V 'ooks V Finance Hptions
A. ,ccording to you what are the aspects you considered or will consider in the
purchase of a branded ,-U
V "echnology V Fser convenience V rice V %arket &tanding V .unning -ost
:. 6hich of the ,-s you think is the best with respect to the price and
performanceU
V '( V )itachi V &amsung V Eoltas V -arrier ,ircon V $lue &tar V (odrej

/. )ow many brands are you aware of, out of the following brandsU
V '( V &amsung V )itachi V -arrier ,ircon V $lue &tar V ;ational
V <aikin V (odrej V Eoltas V Fedders 'loyd V Jenstar
V 6hite 6estinghouse =!lectrolux> V ,ll
8. ,re you aware which of the following is most easily available through retailers
V '( V &amsung V )itachi V -arrier ,ircon V $lue &tar V ;ational
V <aikin V (odrej V Eoltas V Fedders 'loyd V Jenstar
V 6hite 6estinghouse =!lectrolux> V ,ll
D. <o you think ,-s should also be sold like other durables and made available
for the consumers to see and feel the product:
V #es V ;o
3. ,re you aware of the current leader in the room ,- marketU
2. 6hose advertising do you prefer the most:
V '( V )itachi V &amsung V Eoltas V -arrier ,ircon V ;ational V (odrej
10. )ow do you perceive the utility aspect of an ,-U
V ;ecessity V 'uxury
11. 6hat would you like to buyU
V 6indow ,- V &plit ,-
14. ,re you aware of any brand offering finance options for the purchase of their
productU
1A. 6hat is the ideal price you are willing to pay for a 1./ "on window ,-U
V 44-4/ thousand V 4/-43 thousand V 43-A1 thousand
1/. 6hat aspects do you think will govern the ,- market in the current
%illenniumU
V rice V "echnology V !co-Friendly roducts V ,fter &ales &ervice
V %aintenance ,nd .unning -ost
Ind#-
-hapter ;o. "opic age ;o.
1 +ntroduction
1.1 )istory Hf ,ir--onditioner
1.4 ,ir--onditioner-"he roduct
4 %arket &tudy
4.1 +ndustry si*e
4.4 !volution
4.A -urrent scenario
4.: <emand <rivers
A -entral ,- %arket
A.1 -urrent scenario
A.4 Ftility Hf -,-s
A.A %arket &hares
A.: %ajor layers
: .oom ,- %arket
:.1 -urrent &cenario
:.4 %arket &hares
:.A (eographical <istribution Hf &ales
:.: !ntry Hf ;ew layers
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From: )imanshu Kain WhjainXgodrej.comY
"o: GBmehul joshiBG WsonalZmohiteXhotmail.comY
-c: GBrakeshyadav1102Xrediffmail.comBG Wrakeshyadav1102Xrediffmail.comY
&ubject: .!: .!(,.<+;( -!."+F+-,"!
CETIFIE" MAIL
GO"EJ
-orporate ersonal C ,dministration <eptI lant 11,irojshahnagar,Eikhroli,%umbai-
:000D2
"his is to confirm and certify that %r. %ehul joshi had visited my office to collect
information on ,- industry and to clarify his @ueries on the same. "he information
provided by him is true and reliable. + am also happy to say that he has a good grasping
knowledge and had taken keen interest in learning about various aspects of marketing.
.egards
)imanshu Kain
(%- +nstitutional &ales
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