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Spare Parts Management

To maintain Minimum Stock Level (MSL) of Spare Parts

Submitted By
Alongbar Brahma
14PGP065

Indian Institute of Management Raipur


April-May, 2015

Indian Institute of Management Raipur

Spare Parts Management


To maintain Minimum Stock Level (MSL) of Spare Parts

Submitted By
Alongbar Brahma
14PGP065

Indian Institute of Management Raipur


April-May, 2015

Project Guide
Akash Kumar
Carrier - LC Service

Indian Institute of Management Raipur

Faculty Mentor
Prof. P R Sarma
Professor, IIM Raipur

Certificate of Approval
The following Summer Internship Report titled " To maintain Minimum Stock Level
(MSL) of Spare Parts " is hereby approved as a certified study in management
carried out and presented in a manner satisfactory to warrant its acceptance as a
prerequisite for the award of Post-Graduate Programme in Management for
which it has been submitted. It is understood that by this approval the undersigned
do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the Summer Internship Report only for the
purpose it is submitted.
.
Summer Internship Report Examination Committee for evaluation of Summer
Internship Report
Name:

Signature:

1. Faculty Examiner
2. PGP Summer Internship Co-coordinator

Indian Institute of Management Raipur

Certificate from Summer Internship Guides


This is to certify that Mr Alongbar Brahma, a student of the Post-Graduate
Programme in Management at Indian Institute of Management Raipur, has worked
under our guidance and supervision. This Summer Internship Report has the requisite
standard and to the best of our knowledge no part of it has been reproduced from any
other summer Internship, monograph, report or book.

Prof. P R Sarma
Professor
IIM Raipur
2nd June 2015

Indian Institute of Management Raipur

Mr. Akash Kumar


Project Mentor
Carrier LC Service
U & I Bulding, 1st, 3rd & 4th
Floor, Sector 29, Gurgaon,
Haryana

Abstract
Spare Part Management
We can never ignore the vital contribution of Air Condition sector when we talk of
growth and development of a nation. Today it has become a lifeline for us, in the
absence of which we feel inconvenient. The importance of ACs has gone deep in the
life of people that after three essentials of human being i.e. food, shelter and clothing,
ACs is nowadays found in offices, malls to even houses of low-income group people.
Now talking of India, which is still a developing country, the importance of AC market
can be very well understood.
Indian AC sector has been doing well in the past decade. Its structural and institutional
reforms have provided tremendous growth opportunity to his sector. With a growth rate
of 23%, Indian AC industry is becoming popular among AC companies and they are
looking forward for vast business scope in India.
In this context whenever we talk of AC industry, Carrier as a brand must be taken in to
account. Nowadays there is lot of competition between different Ac companies who in
order to add more customer base to the existing figures comes out with attractive
customer schemes and virtually there is a tug of war between companies to get more
market share. But in this fierce competitive war to get more customer base, it is always
important to provide best fit of services ahead of the competitors.
In this project, we analyze the problems that are being faced by the dealers, the lifeline
that connects Carrier to its customers, as well as try to solve these issues with some
research. The study will help the dealers in what way their operation can be functioned
more efficiently as well as help develop strategies to increase more sales and retain
customers. It will also help the dealers to exactly locate the issue like pre-summer
season where inventories are meant to be kept at a certain level as well as technician
team ready for call.

Indian Institute of Management Raipur

Acknowledgement
I take this opportunity to express my profound gratitude and deep regards to my guide
Mr. Akash Kumar, Carrier LC Service, for his exemplary guidance, monitoring and
constant encouragement throughout the summer Internship. The blessing, help and
guidance given by him time to time shall carry me a long way in the journey of life on
which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to Mr. Sandeep Bhat,
Carrier LC Service, for his cordial support, valuable information and guidance, which
helped me in completing this task through various stages.
I also take this opportunity to express a deep sense of gratitude to Mr. Rajeev Sharma,
Carrier LC Service, for his cordial support, valuable information and guidance, which
helped me in completing this task through various stages.
I also take this opportunity to express a deep sense of gratitude to Prof. P R Sarma,
Professor Operations, IIM Raipur, for his cordial support, valuable information and
guidance, which helped me in completing this task through various stages.
I am obliged to staff members of Carrier India, for the valuable information provided by
them in their respective fields. I am grateful for their cooperation during the period of
my assignment.
Lastly, I thank almighty, my parents and friends for their constant encouragement
without which this assignment would not be possible.

Alongbar Brahma
14PGP065
PGP 2014-16

Indian Institute of Management Raipur

Table of Contents
Abstract

Acknowledgement

1. Introduction

2. Industry Overview
2.1 Air Conditioning
2.2 Trends
2.3 Refrigeration
2.3.1 Frozen Processed Food
2.3.2 Trends
2.3.3 Competitive Landscape
2.3.5 Prospects

10
10
10
13
13
13
14
27

3. Marketing Analysis
3.1 Marketing Strategy

28

4. Research Methodology
4.1 Problem Identification
4.2 Market Players Data
4.3 Analysis
4.4 Sample Design
4.5 Sample Size
4.6 Questionnaire Design
4.7 Sample Questionnaire

31
31
32
35
36
36
36
37

5. Conclusion

43

6. Research Findings
6.1 SWOT Analysis
6.1.1 Strength
6.1.2 Weakness
6.1.3 Opportunity
6.1.4 Threat

45
45
45
45
46
47

7. Recommendations

48

8. Limitations

49

9. References

50

Indian Institute of Management Raipur

List of Figures
Fig No

Description

2.1

Market share of various companies

10

2.2.1

Indian Air Condition Market Size

11

2.2.4

Production level of Air conditioners

12

4.1

Research Methodology Flow Process

31

4.5

Break up Sector

39

4.6

Types of Service

4.7

Spare Parts dealers dont deal in

40

4.8

MSL Strategy Usage

41

4.9

Procurement Mode

41

4.10

Payment Mode

42

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Page No.

39

List of Tables
Table No.

Description

Page No.

1.

Sales of Frozen Processed Food: Volume

15

2.

Sales of Frozen Processed Food: Value

17

3.

Sales of Frozen Processed Food: Volume Growth

18

4.

Sales of Frozen Processed Food: Value Growth

18

5.

Sales of Frozen Processed Food (Fish/Seafood): Value


Breakdown
19

6.

Sales of Frozen Processed Food (Poultry)

19

7.

Sales of Frozen Processed Food (Red Meat)

20

8.

Sales of Frozen Processed Food (Vegetables)

20

9.

Sales of Frozen Processed Food: NBO Company Shares 20

10.

LBN Brand Shares of Frozen Food

21

11.

Distribution of Frozen Processed Food

22

12.

Forecast of Sales of Frozen Processed Food: Volume

23

13.

Forecast of Sales of Frozen Processed Food: Value

24

14.

Forecast of Sales of Frozen Processed Food: Volume


Growth
25

15.

Forecast of Sales of Frozen Processed Food: Value Growth


26

16.

Other Frozen Processed Food

27

17.

Data benchmarking of Slimline AC

32

18.

Data benchmarking of Window AC

33

19.

Data benchmarking of Split AC

34

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1. INTRODUCTION
United Technologies Corporation (UTC) is an American multinational conglomerate
headquartered in the United Technologies Building in Hartford, Connecticut. It
researches, develops, and manufactures high-technology products in numerous areas,
including aircraft engines, helicopters, HVAC, fuel cells, elevators and escalators, fire
and security, building systems, and industrial products, among others. UTC is also a
large military contractor, producing missile systems and military helicopters.
The company in itself has many Subsidiaries handling different sub sector of functions
and operations within the company. The major subsidiaries include:
1.

1) Otis

2.

2) UTC Climate, Controls & Security

3.

3) UTC Aerospace Systems

4.

4) Sikorsky

5.

5) Pratt &Whitney
UTC Climate, Controls & Security
UTC Climate, Controls & Security (CCS) as a vertical seeks to provide leading
offerings for heating, ventilation, air conditioning, refrigeration, building controls and
automation, fire and security solutions. Its wide portfolio of products and services
includes Carrier heating, air- conditioning and refrigeration systems and a range of fire
safety and security solutions from leading brands such as Agnice, Carrier Race, Chubb
Alba & Kidde. CCS vertical India has been working in India to expand manufacturing
capabilities, local workforces and local supply chains.
In February 2012, Carrier India and Midea formed a Joint Venture to manufacture and
distribute residential air-conditioning systems. This brings together the complementary
residential segment operations of Carrier and Midea in India, while significantly
expanding manufacturing scale and product portfolio.
The Carrier HVAC, Refrigeration and Transicold factory in Gurgaon produces ducted
split systems, air cooled screw chillers, reciprocating chillers, air handling units, chest
freezers, cold room systems and retail display cases. The factory in Bengaluru primarily
manufactures pressurized gas suppression safety systems.
Recently for Delhi NCR circle, Carrier Electronics faced some downward movement in
sales. Also the company could not understand the actual reason for this situation. The
organization realized that there can be some problem from communication side due to
which the sales are not growing at the pace, they used to for Carrier ACs in NCR
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region.
After carrying out a literature review, various sub-factors of quality have been
highlighted and a suitable scale was developed. This scale was used for the
development of a suitable questionnaire. This questionnaire was developed keeping in
mind various factors and sub- factors that had to be measured to help with the research
conclusions. The questionnaire was kept under the guidance of sales department of
Carrier AC.
.

Air
conditioning
product

Non
ducted
Window
ACs

Mini
Split AC

Ducted

Cassett
e AC

Central
Plants

Package
d AC

Ducted
split

Segmentation

Targeting

Positioning

Mass Segment

Middle income group

Power saving, value for money, Indian family


factor

Premium segment

Upper class All age


groups

High technology, new design

Commercial segment

In malls, offices etc

The key players and their market share in Air Conditioned industry
.

a) Carrier Electronics

b) Blue Star

c) LG

d) Voltas

e) Hitachi
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f) Daikin

Market share of Various Companies

Sales

9.7

26.4

16

Carrier
Other
Voltas
LG

13.5

16.4
18

Blue Star
Daikin

Figure 2.1 Market Share of various ACs companies in Delhi NCR region

2. INDUSTRY OVERVIEW:
2.1 AIR CONDITIONING
India is expected to become the second largest market globally for air conditioners in
2017, behind only China with a 20% volume CAGR over the next five years. This
predicted strong growth is attracting both multinational and local companies seeking to
expand. Thanks to favorable conditions in India, the level of competition
in air conditioners is set to intensify. It is recommended that manufacturers continue to
invest in product development, marketing and distribution in order to continue growing
in this prospective market. In addition, it would also be advisable to fully utilise the cost
advantages in India by localizing production.
2.2 TRENDS:
2.2.1Hot weather in India helps drive the need for air conditioners:

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The director of the India Meteorological Department recently mentioned in The Times
of India that in recent years the average temperature in the city of Bhubaneswar, in early
March has been between 33-35C, although it has risen to 38C in 2013. Due to such
hot temperatures, sales of air conditioners have risen by 23% over the last five months
(January-May 2013), a period that accounts for almost 80% of the industry's annual
volume sales, according to The Economic Times. Meanwhile, according to The Hindu
Business Line, many air conditioner companies have announced double-digit volume
sales growth in India for the first half of 2013, such as LG Corp, Samsung Corp and
Whirlpool Corp.
Air Conditioners Market Size in India, 2007-2012

Figure 2.2.1
2.2.2 Increased disposable incomes and low possession rate make India an
attractive proposition
Consumers in India are purchasing better quality air conditioners, which are highly
energy-efficient. LG stated in The Hindu Business Line that a major share of growth in
2013 is coming from urban areas, where consumers prefer more energy-efficient
products. Moreover, people tend to buy air conditioners not for their bedrooms but for
their living rooms or their childrens bedrooms. This is indicative of the increased
purchasing power of Indian consumers, who are able to afford high-quality products
thanks to increased disposable incomes.
Besides higher disposable incomes, India also has a very low possession rate when it
comes to air conditioners. According to Euromonitor Internationals consumer
appliance data, the possession rate of split
2.2.3 Multinationals look to gain a share of the Indian market
Since the 1990s, many multinationals, including LG Corp, Samsung Corp, Hitachi Ltd
and Haier Group, have entered India to benefit from the cheaper cost of local
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production. Local companies such as Voltas Ltd and Blue Star Ltd also produce locally.
In terms of growth of consumer appliance production over 2007-2012, air conditioners
ranked second only to home laundry appliances. Production increased dramatically in
2010 when Japanese players such as Daikin, Hitachi and Panasonic started
manufacturing air conditioners in India. In October 2012, GD Midea Holding Co Ltd
successfully merged with United Technologies Corp, manufacturer of the Carrier brand,
and plans to invest long term in India to build production plants for both Midea brands
and Carrier air conditioners. The joint venture with Carrier shows the efforts of Midea
to gain a strong foothold in the Indian market. The multinational entered India not only
to gain volume sales but also to benefit from cheaper production.
Production Level of Air Conditioners in India, 2007 -2012

Figure 2.2.2
2.2.4Strong competition in terms of price and product features
Due to the high number of manufacturers present, the competitive environment
in India is unavoidably aggressive. Daikin, a Japanese air conditioner player, currently
offers prices 40% lower than in 2009 due to the relocation of production to India instead
of relying on imports alone. Similarly, Panasonic has launched CUBE air conditioners,
which are made localy, offer stylish designs and low prices. Apart from price
competition, manufacturers are also focusing on new product features to boost
frequency of use. Voltas Ltd has launched All Weather air conditioners, advertising
the fact that its air conditioners can be used throughout the year and not just in the
summer. Voltas air conditioners can be adjusted to become a heater in the winter or a
dehumidifier during the rainy season. Moreover, as competition in the main cities is
very aggressive, many companies such as Haier and Daikin have changed their target
market to instead focus on second-and third-tier cities such Indore, Bhopal, Ujjain,
Bhubaneswar, Jaipur etc.
2.2.5 Competition expected to intensify further
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With strong volume growth predicted for air conditioners in India over 2012-2017,
competition between local and international companies is only set to intensify. It is
expected that manufacturers will produce a range of different models at various price
points. In addition, manufacturers will produce more locally than in the past in order to
benefit from cheaper labor and reduced importation costs. Moreover, further acquisition
activity can be expected as newcomers seek to benefit from the distribution networks of
existing players, as in the case of GD Midea and its joint venture with Carrier. Such
aggressive competition is likely to enable Indian consumers to benefit from improved
product and service quality and more affordable prices.

2.3 REFRIGERATION:
2.3.1 FROZEN PROCESSED FOOD IN INDIA
2.3.2 Trends
The demand for frozen processed food is driven by convenience, a need for quick and
tasty snacks, hygiene combined with increasing urbanization, changes in lifestyle and
the emergence of the shopping center culture. Impulse purchase also plays a key role in
consumers purchase decisions. Also, consumers are price-sensitive, lack brand loyalty,
look for novelty and new flavors and respond to in-store product promotions. Given its
cost, consistency, quality and variety advantages, more and more consumers are
converting from buying fresh food to buying frozen food to satisfy their growing needs.
The urban population, which is hygiene and health-conscious, is increasingly shifting
from live chicken to value-added chicken.
The growth projected for 2014 is faster when compared with 2013. The expected rise in
growth is attributed to an increase in availability of frozen processed food and a wider
product variety. These factors are contributing to the momentum of the category and
attracting a wider base of consumers who are looking for convenient ways of preparing
meals.
Frozen processed fish/seafood will register the fastest value growth rate in 2014. Its
availability is increasing across India and particularly in urban India, where it is
considered one of the safest non-vegetarian food types to consume.
The average unit price is expected to rise by 3% in 2014. This projection is directly
linked to the infrastructural overheads incurred in cold storage and supply. It includes
increased electricity, fuel prices and high food inflation affecting raw material
procurement in India.
Al Kabeer Exports Pvt Ltd and Darshan Foods Pvt Ltd will hold a combined retail value
share of 82% in frozen processed red meat in 2014. Sausages, Seekh kabab mutton,
hamburgers, samosas, spring rolls and hotdogs will be the most prominent frozen
processed red meat offerings from both these players in 2014. In general, sausages, with
an expected value share of 38%, will be the most popular type of frozen processed red
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meat during 2014. Seekh kabab mutton and hamburgers with projected value shares of
20% and 15%, respectively, will be the second and third most popular types of frozen
processed red meat during 2014.
Venky's India Ltd, Al Kabeer Exports Pvt. Ltd, Darshan Foods Pvt. Ltd and Godrej
Agrovet Ltd with an anticipated combined retail value share of 72% will be the leading
manufacturers in frozen processed poultry in 2014. Seekh kababs chicken, sausages,
chicken nuggets, breaded chicken cutlets, chicken tikkas, breaded chicken burger and
seasoned chicken drumsticks were the most prominent offerings from these
manufacturers in 2014. In general, seekh kababs chicken, chicken nuggets and sausages
will be the most widely available and popular types of frozen processed poultry, and
command value shares of 16% each, in 2014.
Safal by Mother Dairy Fruit & Vegetable Pvt. Ltd will be the leading brand in frozen
processed vegetables with a retail value share of 59% in 2014. The Safal frozen
processed vegetable range in 2014 consists of garden peas, vegetable mix and baby
corn. The other leading frozen brands in the country, such as Ever Fresh, Al Kabeer and
Yummiez, also only have garden peas, vegetable mix and baby corn in their frozen
vegetables portfolios in 2014. As a result, garden peas and vegetable mix will be the
most widely available frozen processed vegetable products in the country towards the
end of the review period.
The penetration of refrigerators will increase in 2014 as compared with 2013. However,
refrigeration facilities are mainly available within modern grocery retailers, which
currently is the leading channel for frozen processed food. But for this category, which
is highly affected by infrastructure requirements such as warehousing, the integration of
strong cold supply chains is yet to be developed in India. The low penetration of
refrigeration across rural India affects sales negatively. The lack of infrastructural
facilities such as cold storage resources and logistics is another reason why frozen
processed food is being hindered.

2.3.3 COMPETITIVE LANDSCAPE


Mother Dairy Fruit & Vegetable will lead in 2014 with an anticipated retail value share
of 23%. The companys Safal brand is well established across modern retailing
channels, and increasing its penetration across smaller cities in India has also helped the
company to be the leader in frozen processed food.
Mother Dairy Fruit & Vegetable will increase its value share by one percentage point in
frozen processed food in 2014. The fact it has trusted brands and the highest brand
recall value in North India and South India has helped the company to gain value share
in frozen processed food.

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McCain Foods India Pvt. Ltd has been working closely with third party cold supply
chain operators to produce better cold storage systems, maintain warehouses and
provide superior cold transport to counter food wastage. The companys efficiently
designed infrastructure synced with value chain and IT is expected to improve its
product availability across India. The company has also strengthened its product
portfolio with varied potato products, such as aloo tikki and vegi nuggets, along with
non-potato-based products, such as idli sambar combo. McCain products are widely
available in most modern supermarkets and hypermarkets as well as traditional stores in
smaller cities of India.
The categorys manufacturers have long-term agreements with suppliers and own farms
to overcome the problems of commodities in frozen processed food.
Domestic companies lead the category over their international counterparts, as the
former are more aware and responsive to local consumer tastes and native dishes. The
well-established domestic manufacturers are diversifying their products to cater to
growing consumer demand in urban India.
During 2014, McCain Foods India included a new variant in its range of French fries
McCain Masala Fries. These fries are extra-crispy and coated with special Indian-style
seasoning comprising red chili, garlic powder, onion powder, fenugreek, black pepper
and white pepper. The new addition is an effort to focus on existing customers as well
as attract new ones.
McCain Foods India is the only manufacturer engaging in heavy promotional activities
and its focus is more on strengthening its distribution system for the greater availability
and visibility of its brands. McCain Foods India has its representatives deployed at
prospective retail points for on the spot tasting of its products and making consumers
aware of its brands. The company is also engaged in on-air advertisements for its
products, engaging Indian actress Karisma Kapoor.
As of 2014, there have been no significant innovations in packaging.
There is a limited number of frozen processed food manufacturers currently present in
the country. Furthermore there is little price differential among the leading brands,
resulting in intense competition. Most of the brands available are priced at almost the
same level and there is no differential between premium and mass brands. The
penetration of private label products within frozen processed food is currently low with
only a few retailers offering their own frozen processed vegetables in their stores.
2.3.4 CATEGORY DATA

Recent Tabular Figures


Table 1 Sales of Frozen Processed Food by Category: Volume 2009-2014

tonnes

2009

2010

2011

Indian Institute of Management Raipur

2012

2013

2014

17

tonnes
Frozen
Bakery
Frozen
Desserts
Frozen
Meat
Substitut
es
Frozen
Noodles
Frozen
Pizza
Frozen
Processe
d
Fish/Seaf
ood
Frozen
Processe
d
Potatoes
NonOven
Frozen
Potatoes
Oven
Baked
Potato
Chips
Other
Oven
Baked
Potato
Products
Frozen
Processe
d Poultry
Frozen

2009

2010

2011

2012

2013

2014

1,041. 1,264. 1,528. 1,855. 2,246.


946.47 06
24
83
51
61

1,143. 1,273. 1,527. 1,862. 2,276. 2,784.


30
17
92
57
38
18

1,143. 1,273. 1,527. 1,862. 2,276. 2,784.


30
17
92
57
38
18

2,105. 2,304. 2,759. 3,335. 4,026. 4,832.


66
44
58
68
61
98
620.82 670.00 809.00 977.53 1,174. 1,401.

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tonnes
Processe
d
Red
Meat
Frozen
Processe
d
Vegetabl
es
Frozen
Ready
Meals
Frozen
Soup
Other
Frozen
Processe
d Food
Frozen
Processe
d Food

2009

2010

2011

2012

2013

2014

73

88

8,445. 9,219. 10,923 13,147 15,806 19,093


97
62
.00
.00
.10
.92
1,274. 1,438. 1,610. 1,875. 2,236. 2,688.
10
24
35
03
30
92
-

14,536 15,946 18,894 22,726 27,375 33,048


.33
.53
.10
.63
.64
.50

Table 2 Sales of Frozen Processed Food by Category: Value 2009-2014

INR million 2009


Frozen
Bakery
Frozen
Desserts
Frozen
Meat
Substitute
s
Frozen
Noodles
Frozen

2010

2011

2012

2013

2014

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INR million
Pizza
Frozen
Processed
Fish/Seafo
od
Frozen
Processed
Potatoes
NonOven
Frozen
Potatoes
Oven
Baked
Potato
Chips
Other
Oven
Baked
Potato
Products
Frozen
Processed
Poultry
Frozen
Processed
Red Meat
Frozen
Processed
Vegetable
s
Frozen
Ready
Meals
Frozen
Soup
Other
Frozen

2009

2010

2011

2012

2013

2014

378.8
4

430.9
2

527.3
0

653.5
5

809.1
6

1,012.
77

126.4
1

150.4
8

183.8
4

227.7
8

285.4
5

355.40

126.4
1

150.4
8

183.8
4

227.7
8

285.4
5

355.40

464.6
2

537.2
8

650.9
1

797.3
0

984.0
1

1,214.
37

177.1
8

203.2
8

249.3
1

309.7
1

385.8
4

478.71

870.5
3

1,056. 1,272. 1,506. 1,855. 2,292.


58
50
08
27
16

262.4
4

304.1
3

349.2
2

420.9
3

523.8
7

652.28

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INR million 2009 2010 2011 2012 2013 2014


Processed
Food
Frozen
Processed 2,280. 2,682. 3,233. 3,915. 4,843. 6,005.
Food
02
66
08
36
60
69
Table 3 Sales of Frozen Processed Food by Category: % Volume Growth
2009-2014

% volume growth
Frozen Bakery
Frozen Desserts
Frozen Meat Substitutes
Frozen Noodles
Frozen Pizza
Frozen
Processed
Fish/Seafood
Frozen
Processed
Potatoes
Non-Oven
Frozen
Potatoes
- Oven Baked Potato
Chips
- Other Oven Baked Potato
Products
Frozen Processed Poultry
Frozen
Processed
Red
Meat
Frozen
Processed
Vegetables
Frozen Ready Meals
Frozen Soup
Other Frozen Processed
Food
Frozen Processed Food

2013/ 2009-14
14
CAGR

2009/14
Total

21.08 18.87

137.37

22.31 19.48

143.52

22.31 19.48

143.52

20.03 18.08

129.52

19.34 17.69

125.81

20.80 17.72
20.24 16.11
-

126.07
111.04
-

20.72 17.85

127.35

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Table 4 Sales of Frozen Processed Food by Category: % Value Growth 20092014

% current value growth


Frozen Bakery
Frozen Desserts
Frozen Meat Substitutes
Frozen Noodles
Frozen Pizza
Frozen
Processed
Fish/Seafood
Frozen
Processed
Potatoes
Non-Oven
Frozen
Potatoes
- Oven Baked Potato
Chips
- Other Oven Baked Potato
Products
Frozen Processed Poultry
Frozen
Processed
Red
Meat
Frozen
Processed
Vegetables
Frozen Ready Meals
Frozen Soup
Other Frozen Processed
Food
Frozen Processed Food
Table 5 Sales of Frozen
Breakdown 2009-2014

2013/ 2009-14
14
CAGR

2009/14
Total

25.16 21.73

167.33

24.51 22.97

181.15

24.51 22.97

181.15

23.41 21.19

161.37

24.07 21.99

170.18

23.55 21.36
24.51 19.97
-

163.31
148.55
-

23.99 21.37

163.40

Processed Fish/Seafood by

Indian Institute of Management Raipur

Type: % Value

22

% retail value rsp

2009 2010 2011 2012 2013 2014

25.5
Breaded Fish Fillets 0
Breaded Fish Rolls 5.00
Breaded Prawns
4.50
32.0
Fish Fingers
0
Fish
Processed
Nuggets
9.00
Fish
Processed
Steaks
6.50
Minced Fish Meat
Keema
9.00
Others
8.50
100.
Total
00

25.5
0
5.00
4.50
32.5
0
9.00

26.0
0
4.50
5.00
32.5
0
10.0
0

26.5
0
4.00
5.50
33.0
0
11.0
0

27.0
0
3.50
6.00
33.5
0
11.5
0

27.0
0
3.50
6.00
33.5
0
12.0
0

6.50

6.00

5.50

5.00

4.50

8.50
8.50
100.
00

8.00
8.00
100.
00

7.50
7.00
100.
00

7.00
6.50
100.
00

7.00
6.50
100.
00

Table 6 Sales of Frozen Processed Poultry by Type: % Value Breakdown


2009-2014

% retail value rsp


Breaded
Chicken
Burger
Breaded
Chicken
Cutlets
Chicken Momos
Chicken Nuggets
Chicken Sticks
Chicken Tikkas

2009 2010 2011 2012 2013 2014

9.50
18.0
0
2.50
10.0
0
4.50
9.50
15.5
0

Sausages
Seasoned Chicken
Drumsticks
8.00
Seekh
Kababs 16.5

9.50
18.0
0
2.00
12.0
0
4.50
10.0
0
16.0
0

10.0
0
17.0
0
2.00
14.0
0
4.00
10.0
0
16.5
0

10.5
0
16.0
0
1.50
15.0
0
5.00
11.0
0
16.0
0

11.0
0
15.0
0
1.00
15.5
0
6.00
11.5
0
15.5
0

11.0
0
14.7
0
1.00
15.6
0
6.00
11.5
0
15.5
0

8.00
16.0

8.00
15.0

7.50
15.5

7.00
16.0

7.00
16.2

Indian Institute of Management Raipur

23

% retail value rsp


Chicken
Others

2009
0
6.00
100.
00

Total

2010
0
4.00
100.
00

2011
0
3.50
100.
00

2012
0
2.00
100.
00

2013
0
1.50
100.
00

2014
0
1.50
100.
00

Table 7 Sales of Frozen Processed Red Meat by Type: % Value Breakdown


2009-2014

% retail value rsp 2009 2010 2011 2012 2013 2014


Hamburgers
Salami
Sausages
Seekh
Kabab
Mutton
Others
Total

17.00 17.00 15.50 15.00 14.50 14.50


5.00 5.00 7.00 8.00 9.00 9.00
44.00 44.00 42.00 40.00 39.00 38.00
18.00
16.00
100.0
0

17.50
16.50
100.0
0

17.00
18.50
100.0
0

19.00
18.00
100.0
0

20.00
17.50
100.0
0

20.00
18.50
100.0
0

Table 8 Sales of Frozen Processed Vegetables by Type: % Value Breakdown


2009-2014

% retail
rsp

value

Baby Corn
Cauliflower
Florets
Garden Peas
Vegetable Mix
Others
Total

2009 2010 2011 2012 2013 2014


4.00

5.00

6.00

6.50

7.00

7.00

2.50
75.00
9.00
9.50
100.0
0

2.50
74.00
10.00
8.50
100.0
0

2.50
72.00
11.00
8.50
100.0
0

2.50
71.00
12.00
8.00
100.0
0

3.00
69.00
14.00
7.00
100.0
0

3.00
68.00
15.00
7.00
100.0
0

Table 9 NBO Company Shares of Frozen Processed Food: % Value 2010-2014

% retail value rsp


Mother

Dairy

2010 2011 2012 2013 2014


Fruit

& 20.1

Indian Institute of Management Raipur

20.3

20.8

21.5

22.6
24

% retail value rsp


Vegetable Pvt Ltd
Al Kabeer Exports Pvt Ltd
Innovative Foods Ltd
Venky's India Ltd
Temptation Foods Ltd
Darshan Foods Pvt Ltd
Godrej Agrovet Ltd
McCain
Foods India Pvt
Ltd
Triveni Fisheries Pvt Ltd
Suguna Poultry Products
Ltd
Kohinoor Foods Ltd
Attari Enterprises
Chambal
Fertilisers
&
Chemicals Ltd
Amalgam
Foods
&
Beverages Ltd
Others
Total

2010
6
14.8
4
8.52
9.10
8.07
4.84
1.94

2011
3
14.9
4
8.41
8.66
7.68
4.95
2.64

2012
2
15.3
6
8.46
8.49
7.36
5.08
3.31

2013
6
15.4
8
8.35
8.15
6.78
5.20
4.25

2014
1
15.8
8
8.38
7.89
6.35
5.45
4.94

4.00
2.19

4.12
2.03

4.29
1.91

4.40
1.79

4.51
1.74

0.20
0.11
0.18

0.29
0.20
0.14

0.35
0.30
0.10

0.39
0.27
0.08

0.42
0.26
0.07

25.8
5
100.
00

25.6
0
100.
00

24.1
6
100.
00

23.3
0
100.
00

21.5
2
100.
00

Table 10 LBN Brand Shares of Frozen Processed Food: % Value 2011-2014

%
retail
value rsp
Company

Safal
Al Kabeer
Sumeru

Mother Dairy Fruit


& Vegetable Pvt
Ltd
Al Kabeer Exports
Pvt Ltd
Innovative
Foods
Ltd

Indian Institute of Management Raipur

2011 2012 2013 2014

20.3
3
14.9
4

20.8
2
15.3
6

21.5
6
15.4
8

22.6
1
15.8
8

8.41

8.46

8.35

8.38

25

%
retail
value rsp
Company
Venky's
Venky's India Ltd
Temptation Foods
Ever Fresh
Ltd
Darshan Foods Pvt
Meatzza
Ltd
McCain
McCain
Foods India Pvt Ltd
Godrej
Godrej Agrovet Ltd
Yummiez
Godrej Agrovet Ltd
Triveni
Sealed
In Triveni
Fisheries
Freshness
Pvt Ltd
Suguna
Suguna
Poultry
Home Bites Products Ltd
Kohinoor
Heat & Eat Kohinoor Foods Ltd
Orison
Attari Enterprises
Amalgam Foods &
Sumeru
Beverages Ltd
Chambal Fertilisers
Ever Fresh
& Chemicals Ltd
Others

Others

Total

Total

2011 2012 2013 2014


8.66 8.49 8.15 7.89
7.68

7.36

6.78

6.35

4.95

5.08

5.20

5.45

4.12
1.35
1.29

4.29
1.72
1.59

4.40
2.39
1.85

4.51
2.76
2.18

2.03

1.91

1.79

1.74

0.29

0.35

0.39

0.42

0.20
0.14

0.30
0.10

0.27
0.08

0.26
0.07

25.6
0
100.
00

24.1
6
100.
00

23.3
0
100.
00

21.5
2
100.
00

Table 11 Distribution of Frozen Processed Food by Format: % Value 20092014

% retail value rsp

2009 2010 2011 2012 2013 2014

Store-Based
Retailing

100.
00

100.
00

Indian Institute of Management Raipur

100.
00

99.9
0

99.9
0

99.8
5
26

% retail value rsp

2009
100.
- Grocery Retailers 00
-- Modern Grocery 80.0
Retailers
0
--Convenience
Stores
1.00
--- Discounters
--Forecourt
Retailers
41.5
--- Hypermarkets
3
37.4
--- Supermarkets
7
-Traditional 20.0
Grocery Retailers
0
--Food/drink/tobacco
specialists
--Independent 20.0
Small Grocers
0
--- Other Grocery
Retailers
Non-Grocery
Retailers
-Health
and
Beauty Retailers
-- Mixed Retailers
-Other
NonGrocery Retailers
Non-Store
Retailing
- Vending
- Homeshopping
- Internet Retailing - Direct Selling
Total
100.

2010
100.
00
80.5
0

2011
100.
00
80.5
0

2012
99.9
0
81.4
0

2013
99.9
0
81.4
0

2014
99.8
5
81.3
5

1.00
-

1.00
-

1.00
-

1.00
-

1.00
-

44.5
1
34.9
9
19.5
0

46.3
5
33.1
5
19.5
0

47.4
0
33.0
0
18.5
0

47.4
0
33.0
0
18.5
0

47.8
5
32.5
0
18.5
0

19.5
0

19.5
0

18.5
0

18.5
0

18.5
0

100.

100.

0.10
0.10
100.

0.10
0.10
100.

0.15
0.15
100.

Indian Institute of Management Raipur

27

% retail value rsp

2009 2010 2011 2012 2013 2014


00
00
00
00
00
00

Table 12 Forecast Sales of Frozen Processed Food by Category: Volume


2014-2019

tonnes
Frozen
Bakery
Frozen
Desserts
Frozen
Meat
Substitut
es
Frozen
Noodles
Frozen
Pizza
Frozen
Processe
d
Fish/Seaf
ood
Frozen
Processe
d
Potatoes
NonOven
Frozen
Potatoes
Oven
Baked
Potato
Chips
Other
Oven
Baked

2014

2015

2016

2017

2018

2019

2,246. 2,694. 3,209. 3,765. 4,366. 4,915.


61
04
96
53
77
06

2,784. 3,374. 4,068. 4,832. 5,676. 6,462.


18
57
65
19
55
93

2,784. 3,374. 4,068. 4,832. 5,676. 6,462.


18
57
65
19
55
93

Indian Institute of Management Raipur

28

tonnes
Potato
Products
Frozen
Processe
d Poultry
Frozen
Processe
d
Red
Meat
Frozen
Processe
d
Vegetabl
es
Frozen
Ready
Meals
Frozen
Soup
Other
Frozen
Processe
d Food
Frozen
Processe
d Food

2014

2015

2016

2017

2018

2019

4,832. 5,759. 6,843. 7,990. 9,221. 10,375


98
94
55
73
59
.83

1,401. 1,668. 1,985. 2,323. 2,691. 3,026.


88
51
79
17
83
46

19,093 22,994 27,667 32,726 38,319 43,299


.92
.21
.42
.81
.59
.10
2,688. 3,189. 3,750. 4,374. 5,057. 5,797.
92
22
88
14
46
21
-

33,048 39,680 47,526 56,012 65,333 73,876


.50
.49
.26
.57
.77
.59

Table 13 Forecast Sales of Frozen Processed Food by Category: Value 20142019

INR million 2014


Frozen
Bakery
Frozen
Desserts
Frozen
Meat
Substitute

2015

2016

2017

2018

2019

Indian Institute of Management Raipur

29

INR million
s
Frozen
Noodles
Frozen
Pizza
Frozen
Processed
Fish/Seafo
od
Frozen
Processed
Potatoes
NonOven
Frozen
Potatoes
Oven
Baked
Potato
Chips
Other
Oven
Baked
Potato
Products
Frozen
Processed
Poultry
Frozen
Processed
Red Meat
Frozen
Processed
Vegetable
s
Frozen
Ready
Meals

2014

2015

2016

2017

2018

2019

1,012. 1,161. 1,323. 1,486. 1,648. 1,768.2


77
78
14
13
13
1
355.4
0

405.4
8

462.3
8

525.5
6

593.7
3

660.31

355.4
0

405.4
8

462.3
8

525.5
6

593.7
3

660.31

1,214. 1,373. 1,550. 1,728. 1,910. 2,059.2


37
61
51
66
47
2
478.7
1

545.1
6

620.4
7

694.9
4

770.4
3

829.30

2,292. 2,580. 2,891. 3,214. 3,553. 3,853.9


16
00
54
38
26
8
652.2
8

741.2
5

837.9
0

Indian Institute of Management Raipur

929.9
8

1,025. 1,095.0
89
2
30

INR million
Frozen
Soup
Other
Frozen
Processed
Food
Frozen
Processed
Food

2014

2015

2016

2017

2018

2019

6,005. 6,807. 7,685. 8,579. 9,501. 10,266.


69
28
95
64
91
04

Table 14 Forecast Sales of Frozen Processed Food by Category: % Volume


Growth 2014-2019

% volume growth
Frozen Bakery
Frozen Desserts
Frozen Meat Substitutes
Frozen Noodles
Frozen Pizza
Frozen
Processed
Fish/Seafood
Frozen
Processed
Potatoes
Non-Oven
Frozen
Potatoes
- Oven Baked Potato
Chips
- Other Oven Baked Potato
Products
Frozen Processed Poultry
Frozen
Processed
Red
Meat
Frozen
Processed

2014/ 2014-19
15
CAGR

2014/19
Total

12.56 16.95

118.78

13.85 18.34

132.13

13.85 18.34

132.13

12.52 16.51

114.69

12.43 16.64
12.99 17.79

115.89
126.77

Indian Institute of Management Raipur

31

% volume growth
Vegetables
Frozen Ready Meals
Frozen Soup
Other Frozen Processed
Food
Frozen Processed Food

2014/ 2014-19
15
CAGR

2014/19
Total

14.63 16.61
-

115.60
-

13.08 17.45

123.54

Table 15 Forecast Sales of Frozen Processed Food by Category: % Value


Growth 2014-2019

%
constant
growth

value 2014/20 2014-19


15
CAGR

Frozen Bakery
Frozen Desserts
Frozen Meat Substitutes
Frozen Noodles
Frozen Pizza
Frozen
Processed
Fish/Seafood
Frozen
Processed
Potatoes
Non-Oven
Frozen
Potatoes
- Oven Baked Potato
Chips
- Other Oven Baked
Potato Products
Frozen
Processed
Poultry
Frozen Processed Red
Meat
Frozen
Processed
Vegetables
Frozen Ready Meals
Frozen Soup

2014/19
TOTAL

7.29

11.79

74.59

11.21

13.19

85.79

11.21

13.19

85.79

7.79

11.14

69.57

7.64

11.62

73.24

8.46
6.74
-

10.95
10.92
-

68.14
67.88
-

Indian Institute of Management Raipur

32

%
constant
value
growth
Other Frozen Processed
Food
Frozen Processed Food

2014/20 2014-19
15
CAGR

2014/19
TOTAL

8.04

70.94

11.32

Summary 1 Other Frozen Processed Food: Product Types

Product type
Samosas
Cutlets
Patties
Spring rolls
Nuggets
Pizza

2.3.5 PROSPECTS
The increasing presence of frozen processed food across modern retailing channels and
more manufacturers providing the necessary infrastructure to store frozen processed
food will help the category to grow during the forecast period.
The forecast period growth rates will rise as more consumers are expected to favor
frozen processed food for its convenience, especially the fact that it can provide quick
meals. Furthermore, widening distribution via supermarkets and hypermarkets
across India will increase sales of frozen processed food.
Non-oven frozen potatoes with a value CAGR of 13% at constant 2014 prices is
expected to be the fastest-growing category within frozen processed food over the
forecast period. McCain Foods India with a dominant value share of 71% projected for
this category in 2014, has been using third party GPS trucks to ensure delivery from
plant to retailers. Trucks enabled with sophisticated temperature-control technology
maintain the required temperature for frozen products and GPS ensures trucks are on
track across the country, thus making sure the products are delivered on time in the right
condition to its customers, which in turn will help the non-oven frozen potatoes
category to grow during the forecast period. The increasing popularity of using nonoven frozen potatoes in various family gatherings will also help the growth of the
category during the forecast period.
The average unit price will decrease during the forecast period. The increasing amount
of storage space and the rising number of warehouses across India will be one reason
Indian Institute of Management Raipur

33

for this. The increasing competition among domestic manufacturers and private label
will also help in reducing the unit prices of established brands.
Well-established manufacturers like McCain Foods India and Godrej Agrovet Ltd and
many more will invest in freezers for independent small grocers in 2014-2019. It is
expected that more companies will follow suit to increase their value shares.

3. Marketing Analysis
Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging
products and services of value with others or otherwise it is the process of
planning and executing the conception, pricing, promotion and distribution
of ideas, goods, services to create exchanges that satisfy individual and
organizational goals.
3.1Marketingstrategy

Marketing strategy is a set of objectives, policies and rules that leads the
company's marketing efforts. It is the marketing approach to accomplish the
bread objective of the marketing approach to accomplish the bread objective
of the marketing plan.
The various process of marketing strategy is given below.
Selecting largest market segmentation
Positioning
Product
Price
Place
Promotion
Research & development
Marketing research
1.Marketsegmentationandselectingtargetmarket

Carrier has smartly created their market segment on the basis of the
Indian Institute of Management Raipur

34

Cost sensitivity within consumers. Carrier has segmented their


consumers as
Cost saving conscious
Cost saving plus appearance conscious
Affordability with ease

2.Positioning

Carrier has positioned themselves as a low on cost air conditioners with


all the features of a good air conditioner.
3.Product

Carrier offers a range of ACs in the market which includes:


Split AC
Window AC
Cassette AC
Slim Line AC
Water cool screw chillers
Air cool screw chillers
Packaged AC
Ducted AC

4.Price

Considering the customer segmentation and market positioning, Carrier


has kept its product prices competitive and lucrative for the economy
minded consumers. The company does operate in the higher segments
but it ensures Price as their winning factors, since they cannot compete
over other value addition which is possible for other costlier brands

Indian Institute of Management Raipur

35

5.Place

Carrier has ensured its product presence at almost all tiers of cities
throughout the country through local dealers, exclusive showrooms,
malls, electrical and electronic superstores etc.Since last year, the
company has also started coming up with special retail franchisee
where all the Carrier products are installed in working conditions so
that the consumers can check and feel the features of the product at the
store. The location of such innovative stores is made such that it caters
to majority of theareas within its radius. Carrier has even developed its
own 24 hours dedicated customer care representatives to take all types
of complaints, feedbacks and suggestions from customers.
6. Promotion

Carrier advertisement strategy clearly depicts their customer


segmentation and positioning within market. The advertisement is
meant to emotionally bridge the gap within its consumers who feel that
AC runs on electricity bill to electricity saving AC. The promotions
done through magazines are smartly placed and designed to attract
different income level customers who prefer AC with good exterior
look and low on energy bill.

7. Research&Development

Carrier uses the state of the art technology in its entire product range.
With the solid back up of Voltas and dependable UTC label, Carrier AC
continuously develops its product to match with all the compliance and
customer requirement. Also Carrier AC is also working in joint venture
with Toshiba to innovate new technology.

Indian Institute of Management Raipur

36

4.ResearchMethodology:
The research methodology that has been followed is shown in figure below.

Step 1. Problem or
opportunity
Identification

Step 6.Data
collection

Step 6.Data
analysis

Step 2. Formal
Research proposal
after studying the
dimensions to the
problem

Step 5.
Questionnaire
Designing

Step 7. Conclusions
&
Recommendations

Step 3. Project
Planning &
Scheduling

Step 4.
Benchmarking of
Problem

4.1 Problem Identification


The problem was observed recently by Carrier Air conditioning (Delhi NCR)
when it discovered that there are unused inventory of spare parts for
servicing as well as shortage of them in their warehouse. Due to the extreme
weather situations in Delhi it has become tough and challenging for them to
maintain their appropriate inventory level as it is always uncertain what
demand could be arising. So to overcome the inventory cost that was always
involved as well as to make sure that there is no shortage of inventory, when
servicing is required, a Minimum Stock Level (MSL) and recommendations
were expected. Hence they passed on the entire responsibility to find out
what problem the dealers are facing when attempting to maintain such level.

Indian Institute of Management Raipur

37

4.2 Data Analysis:


Slim line AC
S.N
o

Features

Carrier

LG

Blue Star

Daikin

Voltas

Model

40GKX048RB
51MSG048RSA

LT-C488MLFO

CS48SA

FHC48NUV1

Venture
4551122
4511139

Nominial
Cooling
Capacity

(Btu/Hr)

47,000

48,000

48,000

48,000

48,000

KW

13.77

14.07

14.07

14.07

14.07

Power Input

Watt

4,750

4,600

5,100.00

5,490

4,800

COP

W/W

2.9

3.06

2.76

2.56

2.93

Noise Level
(db)

Hi/Mid/Low

53.2/47.2/43.
3

43/40/37

52/48/45

36

44.2/42.8/41.5

Panel
Dimensions

(W x H x D)

960 x 30 x
960

NA

950x50x950

950 x 40 x
950

950x55x950

Outdoor
Unit
Dimensions

(W x H x D)

905 x 820 x
325

906 x 1135 x
406

960x960x38
0

900 x 1345 x
320

1075x966x35
4

241182500

417493860

350208000

387360000

367611300

CDU
Volume

Index

100

173

173

161

152

Weight IDU

Kgs.

40

25.6

32

28

30

Weight ODU

Kgs.

77

92

85

92

88

Compressor

Scroll

Scroll

Scroll

Scroll

Scroll

Remote Control

LCDRemote

LCDwireless

LCDRemote

NA

LCDCordless

1306/1165/106
0

1120/941/76
4

1164

840x288x840

840x285x84
0

840X288X84
0

Air flow
rate (CFM)
IDU
11 Dimension
s
Weight
12
pannel
10

High/Mid/Lo
w

WxHxD
Kgs

974
825x298x825
5

Indian Institute of Management Raipur

NA

840x300x840
6

38

Figure 4.2: Data benchmarking of Slimline AC


2.0TWindow
Features

Carrier

LG

Bluestar

Daikin

Voltas

Model

40GKX024RB
51MSG24RRA

LTC246PLFO

SCR-241YD

FHC21

Venture
4550070
4511114

S.No

(Btu/Hr)
1

Nominial
Cooling
Capacity

23,000

24,000

24,000

21,000

24,000

KW

6.74

7.03

7.03

6.15

7.03

TR

1.92

1.75

2,407

2,400

2,500

2,450

2,600

2.8

2.93

2.81

2.51

2.71

Power Input

Watt

COP

W/W

Noise Level
(db)

High/Mid/Low

49.5/45.5/41.9

34/32/30

42/41/39

35/30

42/40.5/39

Panel
Dimensions

(WxHxD)

720x30x720

NA

950x55x950

950x40x950

950x55x950

Outdoor
Unit
Dimensions

(WxHxD)

904x692x325

800x555x260

850x540x310

800x685x300

932x660x340

CDU
Volume

Index

100

57

70

81

103

Weight IDU

Kgs.

18

20

24

24

24

Weight ODU

Kgs.

44

46

47

61

56

Compressor

Rotary

Rotary

Rotary

Rotary

Rotary

Remote Control

LCDWireless

LCDWireless

LCDRemote

NA

LCDcordless

530/695/740

720/596/483

840x204x840

840x230x840

840x230x840

840x230x840

10

Air flow rate


(CFM)

High/Mid/Low

11

IDU
Dimensions

WxHxD

12

Weight
pannel

Kgs

500
575x298x575
2.5

NA

670

Figure 4.3: Data benchmarking of Window AC

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2.0T Split
AC
Features

Carrier

LG

Bluestar

Daikin

Voltas

Model

40GKX036RB
51MSG036RSA

LTC368NLFO

SCR-361SE

FHC36NUV1

Venture
4551121
4511138

S.No

Nominial
Cooling
Capacity

(Btu/Hr)

36,000

35,200

36,000

36,100

36,000

KW

10.55

10.32

10.55

10.58

10.55

Power Input

Watt

3,600

3,600

3,650.00

4,040

4,348

COP

W/W

2.93

2.87

2.89

2.62

2.43

Noise Level
(db)

Hi/Mid/Low

46.2/42.2/39.4

38/35/33

44/43/41

42/36

44/42.5/41

Panel
Dimensions

(WxHxD)

960x30x960

NA

950x55x950

950x40x950

950x55x950

Outdoor
Unit
Dimensions

(WxHxD)

905x690x325

870x655x320

1020x655x416

900x1170x320

1075x966x354

202946250

182352000

277929600

336960000

367611300

CDU
Volume

Index

100

90

137

166

181

Weight IDU

Kgs.

38

23.3

30

28

30

Weight ODU

Kgs.

72

60

73

69

85

Compressor

Scroll

Scroll

Scroll

Scroll

Scroll

Remote Control

LCD Wirelss

LCD Wireless

LCD Remote

NA

LCD cordless

988/812/742

905/769/662

840x246x840

840x300x840

10

Air flow
rate (CFM)

High/Mid/Low

11

IDU
Dimensions

WxHxD

12

Weight
pannel

Kgs

741
825x298x825
5

NA

1164
840x288x840
5

840x300x840
5

Figure 4.4: Data benchmarking of Split AC

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4.3 Analysis:

Except for Carrier 2.0 ton Split AC, all the models have very low COP,
which will result in more power consumption.

Also the dimensions of the carrier AC are large compared to that of


competitors.

Carrier Cassette AC have fixed fan speed due to which air flow rate
could not be controlled. Also cassette AC are 2 way air controlled.
Carrier AC does not have $ way air controlled cassette AC.

Panel dimensions are also large which requires more space for
installation.

The compressor used is scerw type which is similar to that of


competitors. But Blue Star is coming up with some models that have
scroll compressors.

Refrigerant used is R22 in most of the models. But Hitachi and LG use
R410 in some Cassette AC models which result in more cooling and
less refrigerant quantity is needed.

Carrier does not use inverter technology in any of its light commercial
products.

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4.4 Sample Design


The research method taken into consideration
Taking into consideration of below profile the research has been carried out:
The dealers of Carrier AC in Delhi region.
The schedules for dealers were being made and changes were made as suggested by
Carrier service manager.

4.5 Sample Size


A total of 7 dealers Delhi were interviewed and responses were filled in a schedule.

Dealers:
Sample size: 7
Qualifying sample size: 7
Sample frame: Delhi
Sampling Method: Convenience Based Sampling
Constraints: Time, number of respondents
Sampling error:
Non-response- 0
Response- 26
Survey:Dealers Schedule

4.6 Questionnaire Design


The Questionnaire was made only for dealers of Carrier under Delhi region.
Dealers Schedule: A total of 15 questions were added in the questionnaire.
The questions are in the open-ended format and that there are no certain
answers to questions. This kind of Questionnaire will not only help us in
knowing the service operations of the dealers but all will help in knowing
their experience and the recommendations they may unknowingly provide.

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4.7 Sample Questionnaire


Name of the Dealer:
Store Manager:
Location:
1. What do you specialize in?
a. Sales b. Services c. Others

2. What kind of services do you provide?

3. Do you repair or replace spare parts that are defective?

4. Do you provide PM to your customers?

5. Do you offer AMC or Warranty?

6. Do you keep inventory?

7. Which spare part you dont deal in or stock?

8. Do you have any specific technique to maintain MSL?

9. What do you do when your spare parts are not available?


a. Raise Claim b. Procure from market or other dealers

10. How much time do you take in raising claim?

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11. How much time do Carrier take in reverting the claim?

12. How much time do you take in reverting call to your customers?

13. How much time do you take in resolving the issue?


a. Without spare part
b. With spare part
c. When spare part not available

14. What mode of payments do you provide to the customers?

15. How much time do you take in receiving the payments?

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Response Analysis
What do you specialize in?
A. a. Sales b. Service c. other

Break Up (%)

28.6

Sales and Service


Only Service
3rd Qtr

71.4

Figure 4.5

What type of service do you provide?

Services (%)

Repairing

9
32

Replacement
Installment
Customization

23

Cleaning
32

Figure 4.6

Do you repair or replace spare parts that are defective?


= Yes, all the dealers repair as well as replace the defective materials that are covered
under warranty and AMC. In case of the expiry, the dealers charge the amount that cost

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them while providing the service. They also offer the option to provide AMC if the
customer is willing to obtain services in future

Do you provide PM to your customers?


= Yes all the dealers provide PM. Surbhi aircon offers to provide PM when Carrier does
not allocate them to any service.

Do you provide AMC and warranty to your customers?


= Yes, all dealers

Do you keep inventory?


= Yes

Which spare part you dont deal in?

Parts dealer dont deal (%)


Condenser coil
outdoor indoor unit
9
9

toshiba products

18

erv inverters
9

18
9
18

cooling coil
plastic parts
grill
swing motors

Figure 4.7

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Do you have any specific technique to maintain MSL?

MSL Strategy (%)

14.28

14.28
Yes
No
Not required
71.44

Figure 4.8

What do you do when your spare parts are not available?

Choice of Procurement (%)

Raise Claim
43

43

Procure from Market


Both simultaneously

14

Figure 4.9
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What mode of payment options do you provide to the


customers?

Payment Mode (%)

11

11

Cash
Cheque
Both
33

Other

44

Figure 4.10

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5. Conclusions:
Based on the responses recorded from the dealers, we can arrive at certain
conclusions and as well we can provide recommendations at the point where
improvements can be done. Following are the points where analysis is done
after the responses were compiled.
1. Inventory:
It is evident that Amba Motors has all the necessary spare
parts and they strictly dont stock inventories like Condenser
Coil, outdoor and indoor units. However, if at times when
there is a requirement of such parts, there are chances of
delay in providing service to their customers. Hence, if
possible they can stock a limited amount of such spare parts
at the time of emergencies.
Similar is the case with Fair Air Engineers who dont stock
Toshiba and ERV inverters, because they dont deal in such
products. So, we can decide their strategys feasibility by
looking at their past complaint details where such spare part
requirements were desired. If the past data shows minimum
no of such requirements, then stocking such product would
be totally meaningless when they are already not dealing in
such product.
Since Maple can afford to stock all the spare parts in their
inventory, it would not be an easy task to try and shake up
the stability. Consequences can be risky for them which no
one can make up for.
Bablani also dont stock some spare parts like cooling coil,
condenser coil and plastic parts. However, if we see at the
operations of Bablani we see that they distribute Carrier and
Midea products to the retails. Also Bablani are specializing in
service field where demands for such spare parts can arise
anytime. So it wouldnt hamper their inventory level when
they experiment by keeping such stocks.

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Surbhi Aircon (FOCO) actually doesnt stock inventories of


any spare part. It is their system that has been designed in
such different manner from that of other dealers. However, if
we again see at the previous complaint calls and check
which spare part had the most frequent requirement, Surbhi
Aircon can afford to stock those parts. In this manner it
would not hamper both the inventory costs and service
operation Surbhi provides.
Desire Aircon has all the spare parts in their inventory and
can afford to provide service without any delay if the
necessary spare part is available with them.
Technocare again doesnt deal in Plastic parts, Grill and
Swing Motors because it is their strategy not to stock such
spare parts. However, at the time of need they procure it
from other dealers or market and get the job finished.
2. PM, AMC, Warranty:
It is evident from the responses that all the dealers provide
PM, AMC and warranty to all their customers. Since, the
operation is already smooth and working efficiently, it would
be unnecessary to add something new to it. However, such
services can be customized by providing customers with
different new options like 24*7 service, payment modes, and
free checkups.
3. Types of Service:
More than 70% of the dealers among the surveyed deal only
in service and the rest deal both in service as well as sales.
4. Reverting time to customers:
Less than 30% of the dealers surveyed revert their call to
their customers in less than one hour. If in such competitive
service dependent business, these bottlenecks are not
overcome, then there is a sharp chance to lose customers to
their competitors. So, it is suggested that the other dealers
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reduce their revert call period to a minimum amount so that


quick response can be provided to the customers.
5. Resolving Issues:
Almost all the dealers have the target to meet the deadline
at most in 3 days. Since, it is not a bad strategy but the
feasible solution to it to set the deadline to 2 days saving
one day for situations where it is practically not possible.
This objective can be attained by employing more number of
highly trained manpower as well as being equipping the
inventory with the most frequently demanded spare parts.
6. Mode of Payment and Total time:
The mode of payment is mostly through cheques, but they
can receive payments through cash also when the service
provided is of minimum size. It is also important to reduce
the time of payment from the customers. This can be
possible when they provide service through packs where
certain services would be available on payment in certain
amount of time.

6. Research Findings:
6.1 SWOT Analysis of Carrier Delhi:
Strengths

Strong brand Image retained among existing dealers.

Carrier being an international player also has very positive feelings in


the mind of dealers as a fair company in comparison to other Indian
players.

Perceived as second largest service provider (in commercial segment)


in the entire region.

Has wide range of products that caters to needs of various customers.

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Weakness

Carriers sales team keep on changing on a very frequent basis. The


dealers find it difficult to synchronize with varying procedures
followed by different dealers.

Positioning of Carrier in AC market is a challenge for dealers. They


can clearly demarcate one segment, which focuses heavily on lower
prices yet not so good cooling capacity. On the other hand, there are
other players, which have very effective cooling however they are very
expensive. Carrier lies somewhere in between, with no clear
demarcation.

Profit margin for dealers is less compared with those of competitors.

According to dealers, the website of Carrier is not so user friendly and


they find it difficult to distinguish between commercial products and
residential products.

Unable to target green conscious customers

Opportunities

Opportunity to influence growing Indian middle class in influencing


their decisions with regard to products offered by Carrier through
comparatively lower prices.

Advent of Internet provides an excellent opportunity to reach to a large


base of customers and cut costs.

Since Carrier is considered to be best in after sales service, it can create


buzz about its after sales service and do its brand positioning as HP did
in laptops.

Confederation of Indian Industry (CII) has urged government to reduce


special excise duty (SED) on ACs.

Climate is becoming hotter day by day, so demand for AC is rising

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rapidly.

Automotive sector is also spreading at rapid speed. So Carrier can also


provide ACs to car manufacturers like Ford, etc

There is very vast unexploited rural market.

Since there are growing concerns about the environment, Carrier can
focus on lot of Green sales.

Threats

The increasing presence of multinationals in India for manufacturing


be it LG, Hitachi, Blue Star, Voltas, thus providing an HIGH threat to
compete in the market.

Likely to face fierce competition from domestic companies as they


have well acknowledged brands, an extensive distribution network and
better insights about local market conditions

Instances of false green claims can erode brand value and customer
trust.

Price wars with close competitors can disrupt growth in price sensitive
region.

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8. Recommendations

More investment in R&D needs to be done in order to improve quality


with innovative design

Should improve its visibility by reaching out to more


MBOs.

Catalogue should be made attractive. It would help sales team to pitch


in sales.

Website should be updated and made more user friendly. Commercial


products and residential products should be listed under different
headings.

Cost reduction and high quality service are not the only
criteria.

More promotion of the brand should be done

Since more customers look on internet for information,


Carrier should improve its visibility online.

Carrier air conditioning should do its brand positioning


as best after sales service provider.

In coming years more banks are coming in to the market. Also existing
banks are expanding. So Carrier air conditioning should try to target
these banks and increase market share.

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Due to domestic rivalry Carrier has to reduce cost

Need highly focused marketing strategies to provide the target


segments with compelling customer value proposition

Trust relationship with customers should be improved

Company need to offer low cost service trials to early adopters of AC


technologies who maintain opinion leadership within their social
communities

Carrier should provide more profit margins to its dealers

More range of Eco Green products should be introduced and Green


Sellingshould be done

7. Limitations

The sample used for our dealers operation analysis is very small and
does not represent the whole market.

The analysis is done by trainee students and cannot be taken as final


report.

Not willing to share information with just anybody and everybody

Biased information

Suspicion

Duration of my project

Convincing people that it is just a study and nothing else.

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References
Cebi, F. and Bayraktar, D. (2003). An Integrated Approach for
Supplier Selection, LogisticsInformationManagement,16(6),395400.

http://www.solutionsmarketing.com.au/index.php?
option=com_content&view=article&id=60:casestudy-1-retailsales-decline&catid=44:case-studies&Itemid=67

http://areas.kenanflagler.unc.edu/Marketing/FacultyStaff/zeithaml
/Selected%20Publications/Consumer%20Perceptions%20of
%20Price,%20Quality,%20and%20Value%20A%20Means- End
%20Model%20and%20Snthesis%20of%20Evidence.pdf

http://www.pointlogic.com/?
gclid=CJGVmLGn1LcCFStU4god_RQAcA

http://www.carrierindia.ac.in

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http://articles.economictimes.indiatimes.com/keyword/air-conditioning

Zeithaml, Vallarie A. (1998). Consumer Perceptions of Price,


Quality and Value: A Means-End Model and Systhesis of
Evidence. JournalofMarketing.52, 2-22.

Marketing Insights from A to Z: 80 Concepts Every Manager


Needs to Know by Philip Kotler (Hardcover Mar 3, 2003)

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