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Due to the rapid changes in the global market and the increased competition experienced between firms, “Brand Management” has become more important. Good brand management brings about clear differentiation between products, ensures consumer loyalty and preferences and may lead to a greater market share.
A brand is a name or a symbol - and its associated tangible and emotional attributes - that is intended to identify the goods or services of one seller in order to differentiate them from those of competitors. At the heart of a brand are trademark rights. A brand is the symbolic embodiment of all the information connected with a product or service. It encompasses the set of expectations associated with a product or service, which typically arise in the minds of "people" (consumers, buyers, or other target audiences). A brand typically includes a name ("brand name"), logo, andother visual elements such as images, fonts, color schemes, or symbols. In other contexts, the term "brand" may be used where the legal term trademark is more appropriate.
The art of creating and maintaining a brand. Marketers seek to develop or align the expectations comprising the target audience's brand experience through branding activities. Branding carries the "promise" to the marketplace that a product or service has a certain quality or characteristic which make it special or unique (i.e. differentiated). Whatever the mix of programs, branding techniques should beconsistent and complementary when well executed.
Brand equityAaker (1991) stated that brand equity can be referred to as “a set of brand assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers”.
Brand loyaltyAaker (1991 p.39) defined Brand loyalty as “the attachment that a customer has to a brand”. It can also be seen as consumer’s preference to purchase a particular brand in a product class and this could be as a result of the consumer awareness about that particular brand.
Benefit of a strong brand
According to Dave Dolak (2003), a strong brand will create the following benefits amongst others: • • • • Build name recognition for your product/company. Influence the consumer’s buying decision. Build trust and emotional attachment to a firm’s product/service. Make purchase decision easier. For example in a commodity market where product and services are indistinguishable, it will enable customers trust and create a set of belief about your product even without knowing the uniqueness of your products and characteristics. • A strong brand increases the consumer’s attitude towards a particular brand’s product and services and the strength of such attitude is developed through experience with such brand. • Consumers experience help to increased perceived qualities, inferred attributes and eventually leads to brand loyalty which are not easy to evaluate except before purchase.
SOURCES OF BRAND EQUITY a) Brand Awareness :
It consists of brand recognition and brand recall performance. Brand recognition is capability of consumer to identify brand among a variety of brand. And brand recall is the capapbility of consumer to collect information about brand from memory when a product category is given to him. According to Aaker (1991 p.62), there are three levels of brand awareness:
Brand recognition: It is the ability of consumers to identify a certain brand amongst other i.e. “aided recall”. Aided recall is a situation whereby a person is asked to identify a recognized brand name from a list of brands from the same product class.
Brand recall: This is a situation whereby a consumer is expected to name a brand in a product class. It is also referred to as “unaided recall” as they are not given any clue from the product class.
Top of mind: This is referred to as the first brand that a consumer can recall amongst a given class of product.
Achieving brand awareness Aaker (1991) prescribed some of the following factors as ways to achieve brand awareness: • Involve a slogan or jingle: a slogan is a visible feature of a brand. There can be a strong link between a slogan and a brand. The slogan and jingle are powerful and can be a great change for a brand. • Be different and memorable: as a result of the similarity between product and their means of communication, product differentiation is important. • Symbol exposure: a known symbol will make it easier to recall and memorize a visible illustration of the brand. A logo that is connected to an existing brand or a developed brand will play a vital role in developing and keeping brand awareness. • • • Publicity: one of the most important ways to get publicity and create awareness is through advertisement. Event sponsorship: sponsorship of event can also help to create and maintain awareness. Consider brand extension: one way to increase brand recall is to show the logo or name on the product and make the name popular. Example of this is coca-cola which is more publicized than the key product. • Using cue: packaging is one of the most significant cues to a brand due to the fact that it is what the purchaser sees when purchasing a product. If the
product or brand is not known, the only means of contact to the brand or product is the package.
b) Brand Image :
It is the impression about the brand before any consumer. It can be either positive or negative. A positive brand image can be created by marketing programs that link strong, favourable and unique association to brand in memory. Consumer beliefs about brand attributes and benefits can be formed in different ways. Brand attributes are those descriptive features are the personal value and meaning that consumers attach to the product or service. Brand benefits are the personal value and meaning that consumers attach to the product or service attributes. These two factors are the strength of the brand association. Then comes, favourability of brand association. This is created by convincing consumer that the brand possesses relevant attributes and benefits that satisfy their needs and wants. lastly, uniqueness of brand associations. The essence of brand positioning is that the brand has a sustainable competitive advantage or “unique selling proposition” that induces consumer to buy a particular brand.
BUILDING A STRONG BRAND- THE FOUR STEPS
The steps are as follows : 1. Ensure identification of the brand with consumers and an association of the brand in customers mind with a specific product class or consumer need. 2. Firmly establish the totality of brand meaning in the mind of consumers by strategically linking a host of tangible and intangible brand associations with certain properties. 3. 4. Elicit the proper customer responses to this brand identification and brand meaning. Convert brand response to create an intense, active loyalty relationship between customers and the brand.
CRITERIA FOR CHOOSING BRAND ELEMENTS
In general, there are six criteria in choosing brand elements 1. Memorability The brand must have a high level of brand awareness. it must be easily recognizable and easily recalled by consumer. 2. Meaningfulness Beside brand awareness, a brand must convey the message in terms of valuable information It must convey general information about the nature of product category on one side. On other side, it must provide information regarding specific attribute and benefit of the brand. 3. Liability Brand element can be chosen that are rich in visual and verbal imagery and inherently fun and interesting. 4. Transferability Up to what extent can the brand element add to the product category and geographic sense? upto what extent does not element add to brand equity across geographic boundaries and market segment? 5. Adaptability The brand should be changed with the change in consumer values and opinions as well as taste and preferences for example, logos and characters can be given a new look or a new design to make them appear more modern and relevant. 6. Protectability This is last consideration regarding legal and competitive sense. The brand elements can be legally protected on an international basis. The brand formally registers them with appropriate legal bodies.
A number of different procedure or systems have been suggested for naming new products.
The first step is to select a brand name for a new product. The brand selected should have certain objective, ideal meaning and recognize the role of brand with in the corporate branding hierarchy.
The second step is to generate as many names and concepts as possible. The names and concepts can be explored by company management and employees, existing and potential consumers, ad agencies, professional name consultants or specialized computer based naming companies.
3. 4. 5.
The next step is the screening of names on the basis of objectives and marketing consideration identified in step-1. The fourth step involves the collection of more extensive information on each of the final 5 to 10 names. Consumer research is conducted to confirm management expectations regarding memorability and meaningfulness of the names through consumer testing.
Finally, based on all of the information collected from the previous step, management can choose the name that maximizes the firms branding and marketing objectives and then formally register the name.
Logos and symbols
Although the brand name typically is the central element of the brand, visual brand elements often play a critical role in building brand equity, especially in terms of brand awareness. Logos are defined as a means to indicate origin, ownership. Or association. There are many types of logos, ranging from corporate names or trademarks written in a distinctive form. Examples of brands with strong word mark or trademarks include Coca-Cola, Kit-Kat, where no accompanying logo separate from the name. Examples of abstract logos include the Mercedes star, Rolex crown and Olympic rings. The non-word mark logos are often called as symbols.
Characters represent a special type of brand symbol. Brand symbol. Brand characters typically are introduced through advertising and can play a central role in these and subsequent ad. Campaigns and package designs some brand
characters are animated (e.g., Pillsburys Poppin Fresh Doughboy), where as some are live-action characters like the Marlboro cowboy.
Slogans are short phrases that communicate descriptive or persuasive information about the brand. Slogans often appear in advertising but can play an important role on packaging and in other aspects of the marketing program.
Jingles are musical messages written around the brand. Professional songwriters typically compose jingles. They often have enough catchy hooks and choruses to become almost permanently registered in the minds of listeners. Jingles can be thought of as extended musical slogans and in that sense can be classified as a brand element. It can communicate brand benefits and convey product meaning in a musical way.
Packaging involves the activities of designing and producing containers or wrappers for a product. Early humans covered them selves with leaves and animal skin. Packaging is used to identify the brand and convey descriptive and persuasive message to consumers. It facilitates transportation and protection to product. it can be reused home storage. Today, Packaging has been elevated in its importance and has now become an integral part of product development and launch. Differences in consumers behaviour depends on the type of product the consumer is buying. Kotler et al (1999) designed a buying behaviour model which consisted of four different buyer behaviours.
Significant differences between brands Few
buying Variety-seeking behaviour
differences Dissonance-reducing Habitual behaviour behaviour
Table 1: four type of buyer’s behaviour, source: Kotler et al (1999) p.251 • Complex buying behaviour is when consumers purchase a high quality brand and about it. • • • Habitual buying behaviour is when consumers purchase a product out of habit. Variety seeking buying behaviour is when consumers go around shopping and experiment with a variety of product. Dissonance reducing buying behaviour is when a buyer is so highly involved with buying a product as a result of the fact that it is expensive or rare. NEW TRENDS IN MARKETING The strategy and tactics behind marketing programs have changed dramatically in recent years as firms have dealt with the enormous shift of the “new economy” in their external marketing environment. Changes in economic, technological, political – legal, sociocultural, and competitive environments have compelled marketers to develop new approaches and philosophies. Kotler identifies five major forces of this new economy. 1. 2. 3. 4. Digitalization and connectivity through Internet, Intranet and mobile services. Disintermediation and reintermediation via new middlemen of various sorts. Customization and customization through tailored products and by providing customers ingredients to make products themselves. Industry convergence through the blurring of industry boundaries. before making the purchase he seeks a lot of information
New customers and company capabilities.
In the face of tighter budgets and the general demand for greater effectiveness in marketing many marketers are starting to employ more creative and innovative ways to reach out to their target customers. Many have started marketing cooperatively in order to share costs among two or more marketers who are trying to reach the same consumers. HOW BUSINESS PRACTICES ARE CHANGING The change in technology and economy are eliciting a new set of beliefs and practices on the part of business firms. 1. 2. 3. 4. 5. From organizing by product units to organizing by customer segments. From focusing on Profitable transactions to focusing on customer lifetime value. From focusing on Just the financial scorecard to focusing also on the marketing scorecard. From focusing on shareholders to focusing on stakeholders. From marketing does the marketing to everyone does the marketing. Every employee has an impact on the customer and must see the customer as the source of company’s prosperity. 6. 7. 8. 9. From building brands through advertising to building brands through performance. From focusing on customer acquisition to focusing on customer retention. From no customer satisfaction measurement to in-depth customer satisfaction measurements. From over-promise, under-deliver to under promise, over-deliver.
HOW MARKETING PRACTICES ARE CHANGING E-business describes the use of electronic means and platform to conduct a company’s business. The advent of Internet has greatly increased the ability of companies to conduct their business faster, more accurately, more timely with reduced cost, and with the ability to customize and personalize customer
offerings. E-commerce and E-marketing are new strategies to meet the demand of consumers in new economy. E-commerce is more specific than e-business, it means that in addition to providing information to visitors about the company, its history, philosophy, product and job opportunities, the company or site offeres to facilitate the selling of product and services online. E-purchasing means companies decide to purchase goods, services and information from various online suppliers. E-marketing describes company efforts to inform, communicate, promote and sell its products and services over the internet.
There are four major internet domains through which E-business take place. 1. 2. 3. 4. Business to consumer ( B2C) Business to Business (B2B) Consumer to Consumer (C2C) Consumer to Business (C2B)
SETTING UP WEB SITES A key challenge is designing a site that is attractive on first viewing and interesting enough to encourage repeat visit. animation. 7 Cs as essential elements of effective web site 1. 2. 3. 4. 5. 6. 7. Context-layout and design Content – Text, picture, sound, and video Community – How the site enables user-to-user communication Customization – site’s ability to tailor itself to different users or to allow users to personalize the site. Communication – site to user, user to site communication Connection – degree to site is linked to other site Commerce – capability to enable commercial transactions. Early tet-based web sites have increasingly been replaced by sophisticated sites that provide text, sound and
Strong brand equity has become a very important factor that influences consumer’s perceptions of a brand. Success in brand management arises from understanding and managing brand equity correctly to produce strong attributes that will influence consumers when making their choices. This thesis focuses on the importance of these dimensions (brand awareness, brand loyalty, brand image and perceived quality) of customer-based brand equity on consumer’s perceptions of a brand. This is based on the assumption that all these dimensions of customer based-brand equity will have influence on consumer’s perceptions of brand. However, this thesis aims to find out which among these three dimensions (brand image, brand loyalty and perceived quality) appear to have the least brand equity in both restaurants and to find out if customer based-brand equity differ between the two restaurants with respect to each attribute of brand awareness, brand image, perceived quality and brand loyalty. Brand awareness was treated separately from other dimensions because of the difference in scale. A structured questionnaire was constructed to provide answers to our research question. In this study, one hundred questionnaires were distributed, but only sixty four useable questionnaires were realized. The study surveyed four dimensions of consumer’s based-brand equity namely brand awareness, brand image, perceived quality and brand loyalty. Among the three dimensions, brand loyalty appears to have the least brand equity rating by consumers than the other dimensions. Although, the four dimension appear to have influence on consumer perceptions of brand. Conclusively, the best way to build brand value and stop product and service commoditization is through continuous attempt to build brand equity. Strong brands are established by creating an emotional attachment with customers, seeking differentiation in communication and performing the service. Branding makes clear a restaurant’s reason for existence and inspires its employees to get used to the brand thereby building it for customers.
The Keller Model
A major contribution to branding theory was that made by Kevin Keller (1993; 2001; 2003)with his introduction of the concept of customer-based brand equity and the brand hierarchy(as graphically portrayed in Figure 1) (Keller, 2003). Figure 1: Keller’s Customer-Based Brand Equity Pyramid Resonance 4. Relationship What about you and me? Judgments Feelings 3.Response What about you?
2. Meaning What are you?
1.Identify Who are you?
Two brand building blocks make up this step - ‘performance’ and ‘imagery’. 1. Identity Who are you? 2. Meaning What are you? 3. Response What about you? 4. Relationships What about you and me? The next step is ‘brand response’ whereby the proper customer responses to the brand identification and meaning are elicited (Keller, 2003). This step is achieved with the ‘judgments’ and ‘feelings’ building blocks, and answers the question What about you?
‘Brand relationships’ constitutes the final step in the CBBE pyramid where brand response is converted to an intense, active loyalty relationship between customers and the brand (Keller,2001). Addressing the customer question of - What about you and me? - the final brandbuildingblock and the pinnacle of the pyramid is ‘resonance’. Keller’s conceptual framework provides guidance in building, measuring and managing brand equity. While Keller claims that the model can be applied in a B2B context and a consumer environment (Keller, 2003), it does not appear to have been tested for industrial brands. The similarities and differences between business and consumer markets have long been debated with organizational buyers found to differ in many ways (Hutt and Speh , 1998; Kotler , 2000;Mudambi, 2002; Thompson, Knox and Mitchell, 1997/1998; Wilson and Woodside, 2001),suggesting that the application of such a model in a B2B setting will pose challenges .In answer to Keller’s call for additional research to refine the framework and suggest implications for marketing strategy (Keller, 1993), this exploratory study aims to identify difficulties in applying the CBBE model in a B2B context - that of electronic tracking systems for waste management.
An Empirical Test Application of Keller’s Model for Brands of Electronic Tracking Systems for Waste Management
To address legislation requirements for Australian local authorities to monitor the generation , transportation and disposal of wastes, new companies have emerged with electronic means of waste tracking. Two competitors operate in this space, with different technologies: a bar code docket system, brand A, and a system using the Global Positioning System (GPS), brand B .The market for electronic tracking systems for waste management is an interesting one for investigation. The use of brands for high-technology products has been minimal until recently, with the marketing of such products representing a challenging field (Zajas and Crowley, 1995). The potential for waste tracking systems however will encourage the entrance of competitors, thus increasing the importance of branding. Already there are indications that branding is critical in this market as potential customers learn to differentiate between the technologies and their manufacturers.
FACTORS AFFECTING CONSUMER BEHAVIOUR
There are many factors which can affect consumer behaviour. These factors can be divided in to two parts: a) Psychological Factors b) Environment Factors a) Psychological Factors There are different factors lies with in the consumer which affects consumer behaviour is know as psychological factors. These Psychological factors are: I. Perception II. Personality III. Motivation IV. Learning V. Attitude b) Environment Factors Factors lie in outside environment and affect consumer behaviour are known as environment factors. Environment factors are: I. Culture II. Sub-Culture III. Social Class IV. Reference Group V. Family VI. Social Group
1.2 SIGNIFICANCE OF THE PROJECT
Each and every study has some significance. The significance of my study is to find out the awareness of LG ,Samsung and preferences of the various customers regarding the various types of flexibility ,availability etc. In today’s scenario there are various Service providers available in the market which is providing different functions and charges different prices each having its distinct features. Now a day’s the customer have various options so they have to choose the best option available in the market. This study also helps in finding out the customer preferences regarding reliability, flexibility etc. This study also helps in knowing the various pricing and advertisement strategies of the various service providers.
1.3 OBJECTIVES OF THE STUDY
To provide the better services to both potential and current customers. To know how important the attributes of electronic product are for the consumer other than the branded electronic product. To create a sound strategy that enhance the brand image in the market. To educate the customer utility of all branded e-product and normal product. To find out whether people were really aware of life products
Hypothesis is considered as the principle instrument in research. It enables to make profitability statement about population parameters. It can be defined as a proposition or set of propositions set forth as an explanation for the occurrence Of some specified group of phenomena either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts: The hypotheses involved in the study are; 1. The influencers play and important role while making the purchase decision. 2. Most of the respondents prefer branded electronic product than other product. 3. Prices do not play a significant role in influencing the buying selection. 4. There is only 9% respondents shift among different brands.
Research Methodology is a way to solve the problem scientifically and systematically. It includes not only the Research Methods but also the comparison of the logic behind the method we use in the context of our research study and explain why we are using a particular method and why not others. The research methodology provided a systematic and planned approach to the research project and involves tags and elements that are consistent with each other. Formulation of research problem: First of all the researcher must decide the general area of interest of a subject matter he would like to inquire into define the problem and then rephrasing the same into meaningful terms from an analytical point of view. Extensive Literature Survey: Once the problem is formulated, a brief summary of it should be written down. It is compulsory for a research worker writing a synopsis of the topic and submit it to the necessary committee at the juncture the researcher should undertake extensive literature survey connected with the problem. RESEARCH DESIGN Constructing research design:Research design contains the over all framework with in the research have to be conduct. Research design – Descriptive (1) Data Sources a) Primary Sources b) Secondary Sources (2) Research Approaches a) Survey b) Observation
c) Unstructured Interview (3) Research Instruments a) Questionnaire (4) Sampling Plan a) Sampling Size b) Sampling Techniques (5) Contact Method a) personal (1)
Sources of Data Collection:
Primary source: Marketing personnel and HR personnel of concerned locations were approached to obtain the information. It is collected by Questionnaire and Personal Interviews at Hub’s and Outlets Bahadurgarh, Hisar Secondary source: Internet, Articles from various newspapers and magazines., Company brochures, literature and pamphlets. Research Methodology is a way to systematically solve the problems. (2)Research Approaches a) Survey: Survey is an effective way of gathering information for any kind of research. During the information, same respondents were fully cooperative and some were indifferent. b) Observation: Observation is done by only observing the respondent behavior.In this research observation is done along with the survey. c) Unstructured Interview: Unstructured Interview also takes place during the survey with many of the respondents.
(3) RESEARCH INSTRUMENT Structured Instrument QUESTIONNAIRE A questionnaire consists of a number of questions printed in a definite order on a form or a set of forms. . A specimen of the same has been placed in the project report. 30 copies of the questionnaire were circulated among different groups of people including under graduate, graduate, post graduate etc. Due to large strength of people, the respondents were selected on the sample basis.. MAIN ASPECTS OF QUESTIONNAIRE a) Structured questionnaire b) Clear and smooth moving sequence of questions c) Simple & easy language d) Relevant questions All the personal details were kept confidential. At attempt was made to include only those questionnaires which were complete in all respects. The questionnaire was of structured type. It contained all closed ended type questions so that all classes of the employee find it convenient to spare sometime for filling up these.
(4) SAMPLING PLAN
Sampling—Convenience Sampling to collect data Sample size – 60 people Sample kind – Customer & Distributor’s, Employees.
SAMPLING UNIT The elementary units or the cluster of such units may from the basis of sampling process. In this case each customer is our sampling unit. TECHNIQUES OF SAMPLING
Convenience sampling was the technique adopted for sampling. ANALYSIS OF INFORMATION The information was analysed with the help of pie-charts to reach at conclusion. For that editing, tabulation and interpretation of data was done. Editing It involves a careful scrutiny of the completed questionnaires. It is the process of examining the collected raw data to detect errors and omissions to correct these when possible. Tabulation It involves arranging the data in concise and logical order. It involves summarizing raw data and displaying the same in compact form. Interpretation It involves drawing the ultimate inferences and reaching to the conclusions.
1.6 STRUCTURE OF THE STUDY
It is very important for a researcher to make the structure before starting a research, as it determines the boundaries with in which researcher has to work. As the study is related to electronic product so, the structure of the study revolves around the branded electronic products who offer facilities. features in this sequence: To study the perception and awareness of customers towards services. Studying benefits and shortcomings of all facilities. Collecting primary data through Questionnaire and secondary data through the websites, journals, magazines etc. To analysis the data through Analytical tools such as pie charts and bar diagrams. To find out the customer preferences regarding facilities and the impact of the branded electronic product in the end user.
2.1 REVIEW OF LITERATURE
Since the development of brand equity in 1980’s, there have been rapid developments in the subject. This is due to the fact that branding has been recognized as an important factor for the success of a firm especially in a very competitive business environment. In the literatures, different definitions of brand equity have been proposed. According to Park and Srinivasan (1994), brand equity has no acceptable definition. Farquhar (1989) defined brand equity as the value which the brand adds to the product. Similar definitions were provided by researchers such as Aaker 1991, Keller 1993, Leuthesser 1998, Yoo and Donthun 2001. Keller (1993 p.8) sees brand equity as “the differential effect of a brand knowledge on consumer response to the marketing of a brand”. This is based on the assumption that the power of a brand lies on what have been learned, heard, seen and felt by the customer about the brand over time. Aaker (1991,p.15) provided the most precise definition of brand equity, he defined brand equity “as a set of brand assets and liabilities linked to a brand, its name and symbol, that add to or subtract from the value provided by a product or service to a firm and/or to that firm’s customers”. Simon and Sullivian (1993) used the word “incremental utility” to refer to brand equity. Park and Srinivasan (1994) refer to brand equity as the distinction between the overall brand preference and the multi attribute preference depending on the objectively measured attribute level.
Agarwal and Rao (1996)
also refer to brand equity as the total quality and choice intention. From the above it is clear that brand equity is viewed in different ways by different researchers.In other word, brand equity can be said to be any asset or liability connected to a brand name that adds or subtract value to a product.The definition of brand equity can be widely classified into three perspectives i.e. it could be based on financial perspective which stress the value of a brand to a firm, customer perspective which sees brand equity as the value of a brand to consumers and a combination
of the two. Our present study will focus on consumers based perception. Consumer based brand equity can be divided into consumer perception i.e. (brand awareness, perceived quality, brand association) and consumers behaviours (brand loyalty and willingness to pay a high Despite the large number of alternative proposed in the literature, no single measure is ideal. There is no concession on the strengths or weakness of each. Simon and Sullivan (1993) claim that the best method for measuring brand equity depends on the objective market based data which give room for comparison overtime and across firm. According to them, using preferences and consumers attitude is wrong as a result of their individual subjectivity. Farquhar 1989 and Criminis (1992) stated that some marketers also concluded that while brands do add values to various components, it is the consumers who first determine brand equity. Schmitt (1999) said that a brand should not just be an identifier, he went further to say that a good image and name is insufficient; delivered experience is also important. Schmitt (1999) recommended two ways to branding: • • The brand has to be viewed as an identifier where the logo, slogan, names forms a particular image and awareness for the consumer. The brand has to be viewed as an experience provider where the logo, slogan, names, event and contacts by consumer provides consumers affective, sensory, lifestyle and create relation with the brand.
Conceptualization of consumer based- brand equity
Different conceptualisations of brand equity have been measured by various researchers. Aaker (1991) view brand equity as a multidimensional concept which is made up of perceived qualities, brand loyalty, brand awareness, brand association and other propriety assets. According to him, Brand loyalty has to do with the level of devotion a consumer has to a brand. Brand awareness has to do with the ability of a potential buyer to identify a brand among a product category. Perceived quality deals with the consumer’s perception of the brands total quality or superiority. Brand association is anything that is connected in a consumer’s
memory of a brand. The other proprietary brand asset has to do with patents and trademarks. A similar conceptualization was proposed by Keller (1993). According to Keller (1993), consumer based brand equity consist of two dimensions, brand knowledge and brand awareness. Cob-walgren et al (1995) based their study on customer based perceptual measure of brand equity. Their study adopted three of Aaker (1991) perceptual component of brand equity i.e. brand awareness, brand association and perceived quality. They tested whether brand equity has an affect on • • • Brand perception, Intention Attitude
Low and lamb Jr (2000) and Prasad and Dev (2000) also adopted four of Aaker (1991) component i.e. • • • • Brand awareness Perceived quality Brand loyalty Brand association.
Therefore, for the purpose of our study, customer based brand equity will be based on Aaker (1991 1996) conceptualization i.e. brand awareness, brand loyalty, perceived quality and brand association. Brand association here is referred to as brand image i.e. the set of associations that are connected to the brand which are easily retained in customer’s memory. Aaker (1991 2002) classified loyalty as follows: • • Non- customer: these are people who buy the brands of competitors. Price switcher: these are the once that are sensitive to price.
Passive loyal: these once are purchase brand/product as a result of habit rather that reason.
Fence sitters: are those that are indifferent between several brands. Committed: are those who are honestly loyal to the brand.
Attitude toward the Web Site and Brand Choice
Analogous to the well-accepted definition of attitude toward the Ad (Aad), a "predisposition to respond in a favorable or unfavorable manner to a particular advertising stimulus during a particular exposure situation" (MacKenzie, Lutz, & Belch, 1986, p. 130), Chen and Wells (1999, p. 28) defined attitude toward the Web site (Ast) as a "predisposition to respond favorably or unfavorably to Web content in natural exposure situations." Their examination of differences among Web sites that scored high, medium and low on the measurement of Ast found that a high Ast score could be from many different underlying perceptual dimensions such as entertainment, informativeness, and organization. A review of the literature reveals that research studies examining this relatively new construct, Ast, have focused on the role of Web sites as an advertising medium (Bruner & Kumar, 2000; Poh & Adam, 2002; Stevenson, Bruner, & Kumar, 2000). In an effort to test whether the relationship between Aad, brand attitude and purchase intent holds even in an online context, these studies examined the association of Ast with Aad from the site, attention to the ad, brand attitude and purchase intent. Although more rigorous testing is needed to understand the relationships among these constructs on the Web, past research suggests that, if a Web site is well-liked, some visitors to the Web site may be more receptive to the Web site's contents, including its advertisements (Poh & Adam, 2002). The primary research issue in this study centers on how attitude toward the Web site influences brand choice. Even though judgment (constructing an overall evaluation of an alternative) and choice (choosing one alternative from a set) have not always been clearly distinguished, there are sufficient processing differences
between judgment and choice that call for caution in accepting Ast - judgment (e.g., attitudes and intentions) results as indicative of the Ast - choice. With these possible processing differences between judgment and choice, it is likely that consumers could choose without completely processing all brand information or forming overall evaluations (Biehal et al. 1992). That is, they may make choices without differentiating between brands on the basis of brand attitude or even without ever forming an overall brand attitude. These possible differences between judgment and choice may have important implications for understanding the role of Ast in brand choice. That is, used as a cue in differentiating between brands, Ast may have a direct (separate from the effect of brand attitude on brand choice) effect on brand choice. Moreover, this direct, separate, effect of Ast on brand choice may be expected to increase in the online shopping environment. Shoppers appear to be attracted to the Web because of the ease with which they can find products with detailed information and the variety of choices offered (Ward & Lee, 1999). While very few research studies have examined the effects of response mode in the context of marketing research, existing research regarding Aad may provide some indication on what to expect. In general, most research focusing on the role of Aad in determining ad outcomes has dealt with how Aad affects brand cognition, brand attitude, and purchase intention (e.g., Burke & Edell, 1989; MacKenzie, Lutz, & Belch, 1986; Miniard, Bhatla, & Rose, 1990). That is, most of the research interest in Aad as an indicator of advertising effectiveness has focused on how Aad affects consumer judgment, rather than consumer choice. Attitude the 1999) Web & (Chen toward (5-point scale anchored by "Definitely Disagree" and "Definitely site Wells, 1. This Web site makes it easy for me to build a relationship with this company. 2. I would like to visit this Web site again in the future. 3. I am satisfied with the service provided by this Web site. 4. I feel comfortable in surfing this Web site. Agree")
5. I feel surfing this Web site is a good way to spend my time. 6. 7. This site is for a brand this that I am familiar site with. before. I've visited Web
8. Compared with other Web sites, I would rate this one as (5-point scale anchored by "One of the worst" and "One of the best") Relationship between attitude toward the brand and consumer
Relationship between attitude toward the brand and consumer confidence
Event study methodology measures the stock price reaction to an unanticipated announcement of an event. Event studies are used to test that the market incorporates this new information efficiently and to examine the impact of the event on the wealth of the firm's stock holders (Binder, 1998). The premise underlying the methodology is the efficient market hypothesis. . Abnormal returns occur when the market perceives that the firm's announcement or "event" will have a positive (or negative) impact on the firm's future cash flows, resulting in immediate stock price increases (decreases). The mathematical calculations
required to implement an event study are articulated comprehensively in numerous publications (see Kritzman, 1994; MacKinlay, 1997; McWilliams and Siegel, 1997; Srinivasan and Bharadwaj, 2004). Consequently, only a summary of the five key steps are included here. Three pieces of information are required to undertake an event study--the names of : • • • Stock-listed firms The event dates in relation to the announcement of interest The relevant stock prices.
Step 1: Identification of the event of interest An appropriate event is one that is likely to have a financial impact on the firm, is unanticipated by the market and provides new information to the market (McWilliams and Siegel, 1997). In marketing studies, events might include the recall of a faulty product, the initial introduction of environmentally friendly products, or the announcement of a firm's intention to sponsor the Olympic Games. Each event has the potential to have an impact on a firm's daily stock price. The second issue concerns what specific dates to examine for stock price changes. If a product is recalled suddenly, the window of interest is likely to be very short, such as the day of the recall announcement and the day following. In addition, identifying the exact date of the announcement's release to the public can be complicated. For example, investors might be privy to advance information, announcements might be made over a weekend when the stock exchange is closed, or announcements may be deliberately leaked to the press. The standard approach is to examine the days either side of the official announcement date. Some researchers (e.g. Clark, Cornwell, and Pruitt, 2002) verify the release date by searching computerized newsprint databases such as Lexis-Nexis or Factiva for the very first public announcement of the information. Step 2: Definition of the event criteria Event studies often examine variables such as firm size, industry type, and investment amount. Again, these require a sound theoretical rationale for their inclusion in the study. If the focus, for example, is on new drugs issued by the
pharmaceutical industry, the focus of attention is likely to be solely on the pharmaceutical industry. If the scope is broader, for example corporate sponsorship of the Olympic Games, a cross-section of firms and industries is more likely to be examined. Step 3: Calculation of normal and abnormal returns To measure the impact of an event on shareholder value, the difference between a firm's normal everyday returns and the abnormal returns experienced around the event date are calculated. This figure is achieved by computing the daily (or cumulative) abnormal returns accrued during the event window minus the expected normal returns as if no such event had occurred. Two main approaches to model the normal returns are used: the constant mean return model, and the market model (see MacKinlay, 1997; McWilliams and Siegel, 1997; Srinivasan and Bharadwaj, 2004). The constant mean return model is based on the notion that the mean return of a given stock is constant over time. The market model assumes a linear relationship between the return of the overall market portfolio and the individual stock's return. Calculation of the market portfolio is often based on a leading broad-based stock index such as Standard and Poor's (S&P) 500 index, the CRSP value-weighted index, or the CRSP equal-weighted index (Srinivasan and Bharadwaj, 2004). Step 4: Estimation of the normal performance model While the event window used to calculate the abnormal returns focuses on the days when information related to the event is most likely to be released, the estimation window used to calculate the normal performance model, on the other hand, focuses on "normal" trading days, generally a period well in advance of information about the event being released. Typically, estimation windows are quite large (around 250-600 days stock market trading days) and are separated from the event window by a significant number of days (45-90).
Step 5: Statistical calculations and hypothesis testing Having determined the parameters for estimating the normal performance model, the abnormal returns are calculated and tested for significance. To explore the data further, abnormal returns can be aggregated over time for an individual stock and also across firms and over time (see Srinivasan and Bharadwaj, 2004). Findings are presented as mean abnormal returns and mean cumulative abnormal returns expressed in percentages and direction of change (positive or negative). Where abnormal returns are particularly dramatic, the dollar impact or net present value may be calculated to illustrate the practical significance of the findings (e.g. Pruitt et al., 2004). Test statistics in event studies are quite sensitive to outliers. The impact of any one firm's returns on the sample statistic can be magnified particularly when the study is based on a small sample of events.
3.1 INDUSTRY PROFILE OF ELECTRONIC AREA
Occupational Employment Statistics Occupational Employment and Wages, May 2007 49-2097 Electronic Home Entertainment Equipment Installers and Repairers Repair, adjust, or install audio or television receivers, stereo systems, camcorders, video systems National estimates for this occupation Industry profile for this occupation State profile for this occupation Metropolitan area profile for this occupation Industries with the highest published employment and wages for this occupation are provided. For a list of all industries with employment in this occupation, see the Create Customized Tables function. Industries with the highest levels of employment in this occupation: Hourly mean wage $15.71 $15.58 $15.53 $16.78 $18.74 Annual mean wage $32,680 $32,400 $32,310 $34,900 $38,970
Industry Electronics and Appliance Stores Electronic and Precision Equipment Repair and Maintenance
Employment 13,610 6,680
Cable and Other Program Distribution 5,390 Building Equipment Contractors Electrical and Electronic Goods 5,300 960
Top paying industries for this occupation:
Industry Local Government (OES designation) Satellite Telecommunications State Government (OES designation) Wholesale Electronic Markets and Agents and Brokers Wireless Telecommunications Carriers (except Satellite) Employment 90 270 70 (8) Hourly Annual mean wage mean wage $22.61 $20.28 $19.50 $19.17 $47,030 $42,180 $40,550 $39,870
(1) Estimates for detailed occupations do not sum to the totals because the totals include occupations not shown separately. Estimates do not include self-employed workers. (2) Annual wages have been calculated by multiplying the hourly mean wage by a "year-round, full-time" hours figure of 2,080 hours; for those occupations where there is not an hourly mean wage published, the annual wage has been directly calculated from the reported survey data. (3) The relative standard error (RSE) is a measure of the reliability of a survey statistic. The smaller the relative standard error, the more precise the estimate. (4) Estimate not released.
PROFILE OF SAMSUNG
From its inception as a small export business in Taegu, Korea, SAMSUNG has grown to become one of the world's leading electronics companies, specializing in digital appliances and media, semiconductors, memory, and system integration. Today SAMSUNG's innovative and top quality products and processes are world recognized. This timeline captures the major milestones in SAMSUNG's history, showing how the company expanded its product lines and reach, grew its revenue and market share, and has followed its mission of making life better for consumers around the world.
Samsung India Electronics Ltd
Samsung India is the hub for
Samsung’s South West Asia Regional operations. The South West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India which commenced its operations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in just a
decade of operations in the country. 2000-Present Pioneering the Digital Age
Headquartered in NewThe digital age has brought revolutionary change – and opportunity – to global Delhi, Samsung
India has a networkbusiness, Branch of 19 and SAMSUNG has responded with advanced techno-logies, Offices located all over the country. competitive products, and constant innovation. The Samsung manufacturing complex At SAMSUNG, we see every challenge housing manufacturing facilities for as an opportunity and believe we are Colour Televisions, Colour Monitors, perfectly positioned as one of the world's Refrigerators and Washing Machines is recognized leaders located at Noida, near Delhi. Samsung technology industry. ‘Made in India’ products like Colour Televisions, Middle Colour CIS Monitors and and Our commitment to being the world's Refrigerators are being exported to best has won us the No.1 global market East, SAARC share for 13 of our products, including countries from its Noida manufacturing semiconductors, TFT-LCDs, monitors complex. Samsung India currently and CDMA mobile phones. Looking employs over 1600 employees, with forward, we're making historic advances around 18% of its employees working in Research & Development. in the digital
in research and development of our overall semiconductor line, including flash memory and non-memory, custom semiconductors, DRAM and SRAM, as well as producing best-in-class LCDs, mobile phones, digital appliances, and more. 2000-Present Pioneering the Digital Age • Samsung takes No. 1 spot in U.S. cellphone market 2008
No.1 worldwide market share position for TVs achieved for the 9th quarter in a row No.1 worldwide market share position for TVs achieved for the seventh quarter in a row BlackJack bestowed the Best Smart Phone award at CTIA in the U.S. Attained No.1 worldwide market share position for LCD for the sixth year in a row Developed the world's first real double-sided LCD Developed the worlds' first 50nm 1G DRAM Unveiled 10M pixel camera phone Launched "Stealth Vacuum," a vacuum cleaner with the world's lowest level of noises Launched the worlds' first Blu-Ray Disc Player Developed 1.72"Super-Reflective LCD Screen Developed the largest Flexible LCD Panel Ranked 27th in "the World's Most Admired Company" of Fortune
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Released the world's first 7 mega pixel camera phone Developed the world's first OLED for 40" TV Developed the first-ever speech recognition phone Produced the first wrinkle-free steam washer Sold more than 20 million cellular phones in the U.S Ranked top in mobile phone sales in Russia Released new PDP TV featuring the highest contrast ratio in the world
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Developed a 3rd Generation Optical Blu-Ray Disc Recorder Released 46" LCD TV for the first time in the world SAMSUNG brand value ranked 25th in the world by Interbrand Ranked 5th on the "Most Admired Electronics Company" list released by the Fortune Magazine
Released the first HD DVD combo Development of the 54"TFT-LCD, the largest digital TV monitor in the world Launches PDP-TV, the slimmest in the world Launch of color mobile phones in which the new concept UFB-LCD is introduced
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Launched new high-definition TFT-LCD color cellular phone Ranked No. 1 of world's Top 100 IT Companies by BusinessWeek Unveils 16 Chord Progression Melody Phone Begins Mass Production of 512Mb Flash Memory Device Unveils Industry's First Ultra-Slim Handset Develops World's first 40 inch TFT-LCD Unveils TFT-LCD with Record-breaking Definition Launches PDA phone SAMSUNG Olympic Games Phone selected as the official mobile phone of the Sydney 2000 Olympic Games TV Phone and Watch Phone Make Guinness Book of World Records Unveils the Worlds Fastest Graphics Memory Chip SAMSUNG Electronics and Yahoo! Form Strategic Alliance
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• • "A Giant with Wings?" Business Korea, December 1994, pp. 21--23. Jameson, Sam, "Samsung Isn't Content to Be a Mere Giant," Los Angeles Times, July 5, 1990, Sec. D, p. 1.
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Nakarmi, Laxmi, with Kevin Kelly and Larry Armstrong, "Look Out, World--Samsung Is Coming," Business Week, July 10, 1995, pp. 52--53. Ota, Alan K., "Samsung Expands Overseas in Drive to Transform Itself," Oregonian, July 2, 1995, Sec. F, p. 9. "Samsung Chairman Lee Kun-Hee: A Modern Day Fortuneteller?" Business Korea, August 1993, pp. 18—19 . "Samsung Group: Lee Kun-Hee's First Five Years," Business Korea, December 1992, p. 37. "Samsung: Steering a New Course," Business Korea, February 1992, p. 26. Selwyn, Michael, and Erwin Shrader, "Samsung Takes On the Giant," Asian Business, October 1990, pp. 28--34. Sohn, Jie-Ae, "Samsung Group Embracing Breathtaking Changes," Business Korea, August 1993, pp. 15—18 . Steers, Richard M., with Yoo Keun Shin and Gerardo R. Ungson, The Chaebol, New York: Harper & Row, 1989. Tanzer, Andrew, "Samsung of South Korea Marches to Its Own Drummer," Forbes, May 16, 1988, pp. 84--89.
1947-1959 Birth and establishment of a new era for chemical and electronic industries LG Group founder In Hwoi,Koo set LG history in motion with the establishment of the Lak Hui Chemical Industrial Corp. in 1947. During those formative years, the company emphasized the principle of creating harmony among people. The employees believed that mutual trust and responsibility were crucial to accomplishing business objectives. In 1952, Lak Hui (currently LG Chem) became the first Korean company to enter the plastics industry. As the company expanded its plastics business, it established Goldstar Co., Ltd., (currently LG Electronics Inc.) in 1958. In 1959, Goldstar produced Korea's first radio, opening a new era for the nation's electronics industry. In the early 1950s, LG had already established the foundation for its two major sectors-the chemical and electronics businesses-thereby leading the development of Korea's industries.
1958 : GoldStar (today’s LG Electronics) established 1959: Korea’s first radio produced 1962 : Radio exported to the US and Hong Kong as Korea’s first 1965 : Korea’s first refrigerator produced 1966 : Korea’s first black & white TV produced 1968 : Korea’s first air conditioner produced 1969: Korea’s first washing machine produced 1974: GoldStar Communications went public 1977 : Color TV produced 1978 : Exports surpassed US$100 million, a first for Korea’s electronics industry 1980:First EU sales subsidiary in Germany (LGEWG) established 1982:Color TV plant established in the US in Huntsville, Alabama 1984: Sales surpassed 1 trillion Won 1986:European-standard 1990:Ireland-based VCR design plant technology established center in Germany 1989 :Sales subsidiary and a joint production subsidiary established in Thailand established
1993 : With the establishment of Huizhou subsidiary in China(LGEHZ), marketing in China took full swing 1995:Company name changed to LG Electronics and US-based Zenith acquired 1997 : 40-inch Plasma TV and the world’s first IC set for DTVs developed India production subsidiary (LGEIL) established 1998: World’s first 60-inch Plasma TV developed 1999 : LG.Philips LCD established 2000: LG Information & Communications merged The world’s first Internetenabled refrigerator launched Global sales of refrigerators reached the number one position 2001: Asynchronous IMT-2000 equipment commercialized The world’s first Internetenabled washing machine, air conditioner, and microwave oven launched LG.Philips Displays, a joint venture with Philips established 2002 : Under the LG Holding Company system, the Company spun off to LG Electronics (LGE)& LG Electronics Investment (LGEI) The first home network system commercialized in the global market. 2003 : World’s first synchronous-asynchronous IMT-2000 mobile phone developed The world’s first 76-inch Plasma TV developed CDMA mobile handsets took the largest share in the US and world CDMA market Launched the world’s first Super Multi DVD Rewriter 2004 EVSB, the next-generation DTV transmission technology, chosen to be the US/Canada DTV transmission standard by the US ATSC All-in-one LG 55-inch LCD TV, the world’s first and largest among LCD TVs, commercialized The world’s largest and first 71-inch Plasma TV commercialized The world’s first terrestrial DMB phone developed Developed Wireless Speaker Home Cinema System. 2005 The world’s first DMB notebook commercialized The world’s slimmest TV commercialized The world’s largest 102-inch Plasma TV developed LG and Nortel Networks agreed to establish a joint venture for telecommunication network equipment Satellite-based DMB phone commercialized The largest share seized in the global CDMA market.
2006 Launched the LG Shine, the second handset in the Black Label Series Globally launched the steam washing machine and interactive TV refrigerator Developed the world's first 100-inch LCD TV Launched the world's largest Full HD 102-inch Plasma TV (1080p) Developed the world's first dual-format high-definition Disc Player& Drive. 2007 Launches the industry's first dual-format, high-definition disc player and drive Launches 120Hz Full HD LCD TV Demonstrated the world-first MIMO 4GEnabled technologies with 3G LTE Won contract for GSMA's 3G campaign. 2008 Introduces new global brand identity: "Stylish design and smart technology, in products that fit our consumer's lives."
Today the group operates through 4 key sectors:
Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our inhouse compressor manufacturing technology in Bangalore. Display industry and its components With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.
Colour Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs. Oil and Gas An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally. Vision & Mission Videocon’s mission: a reflection of continuity and change Videocon’s mission expression has been crafted to envelope both extant and emerging realities: “To delight and deliver beyond expectation through ingenious strategy, intrepid entrepreneurship, improved technology, innovative products, insightful marketing and inspired thinking about the future.” A breakdown of the statement above reveals a ‘means and end’ approach, where the end is articulated at the beginning with the means linked to it. “To delight and deliver beyond expectation…”: the end This segment not only underlines the importance of the ultimate goal - customer satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate processes and principals, which have contributed to building a robust, dependable Videocon value chain (‘deliver’). As a result of its focus on developing loyal customers and reliable associates, Videocon is able to exceed expectations. “…through ingenious strategy…”: the means In the cutthroat world of today, it is only by taking recourse to advance planning and strategy that a business can hope to survive. Although textbook strategy has its uses, reproducing it in verbatim for the real world would be foolish because of the absence of textbook conditions. Thus, there is a need for a bounded rationality, a spontaneity and improvisation that is flexible enough for scenarios both
imaginable and unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that abstracts from shifting ground conditions and decides gameplans, or sometimes changes the rules of the game. “…intrepid entrepreneurship…”: the means An enterprise with the odds stacked against it makes great business sense. This is because higher the obstacles, lower the number of players likely to be active in that field - thus, fetching extraordinary returns. The only requirement is a bold and confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a bold and intrepid endeavour that arises from immense faith on the surefooted competence of the company’s in-house managerial talent. “…improved technology…”: the means Technology is no more a premium input; it has become the bare minimum in recent years. Rapid advances have only fuelled this phenomenon. Videocon is extremely vigilant in shunting out dated technology and replacing it with the bestin-class offers of the times. “…innovative products…”: the means Product development, innovation and customisation are the tools Videocon uses to stay ahead of the competition. This is because a continuous stream of innovative products excites the market and enhances brand recall. A strategy that Videocon banks on a lot, especially on the domestic front. “…insightful marketing…”: the means The market share battle scene has long shifted from technology and processes to the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths to read better the pulse of the market and help create products that map perfectly into customer preferences. “…inspired thinking about the future.”: the means The future is unpredictable, but not doing anything about it is fraught with grave risk. Videocon extrapolates future trends on the basis of current changes in technology and preferences as well as sheer gut feel. Fine-tuned business instincts are worth their weight in gold, lots of it. The company has perfected its practice almost into an art form with some calculated gambles like oil and gas proving to be absolute money-spinners.
Values & Philosophy Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education in Ahmednagar and Pune. He was a successful sugarcane and cotton cultivator. As a next logical step to vertical integration, he boldly took upon an entrepreneurial venture by importing machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955. Those were the times when the village did not even have electricity. Thus was unleashed an Industrial Revolution. The die was cast. Over the years, Nandlalji's path-breaking attitude found expression in a myriad ways, earning him the well-deserved reputation of the pioneer of industrial activity in Marathwada India. In early 80's Nandlalji initiated his three sons - Venugopal, Rajkumar and Pradeep into business. Through a technical tie up with Toshiba Corporation of Japan, he launched India's first world-class color Television: Videocon. Today, Videocon is household name across the nation- India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50 million people to improve their quality of life.
The Late Shri. Nandlal Madhavlal Dhoot Founder, The Videocon Group ( 26 February 1932 - 26 April 1993 ) A man of Ideas. A man of Substance. A man of Vision.
K. R. KIM Vice Chairman and CEO Videocon Industries Limited K R Kim was appointed as Vice Chairman and CEO, Videocon Industries Limited in 2008. Since then, he has led the company to expand its operations throughout the country in the Domestic and Global operations of the consumer durables and infotainment division. A veteran in the consumer goods industries and the former MD of LG electronics, K.R Kim, a Law graduate from Seoul National University has been associated for over 30 years with LG Electronics before joining Videocon. During his tenure he served at esteemed positions of President and that of a Managing Director. K.R Kim’s proficient leadership skills, task driven approach and matchless degree of excellence and discipline has conspicuously carved his identity worldwide. Moreover, he has been the proud recipient of the ‘Super Achiever’ award from CETMA (Consumer Electronics and TV Manufacturers Association) for his role in advancing maturity of India’s Electronics and Durable goods market. He has also been awarded for Excellence in Corporate Leadership and Entrepreneurial Spirit established by CNBC – TV 18- by our Honorable Prime Minister Mr. Manmohan Singh. .
Research & Development
The company gives utmost importance to the R & D activities, which are carried out, at in-house R & D center. The company carries on new innovations in product development, cost reduction, quality improvement, process implementations, process controls. 1) Specific areas in which R & D is carried out by the company During the year, the company has carried out Research and Development in the following areas. 1. Home theaters - High-end models and HTIB M odels. 2. Larger Screen Television i.e. 32 inch and 38inch. 3. True Flat Televisions. 4. Plasma Televisions. 5. Cosmetic design and new out look to the TVs. 6. Manufacturing of components for CTV, Refrigerators and Air conditioners. 7. Efforts to reduce power consumption of all its final products.
2) Benefits derived as a result of the above R& D. The company has derived the following benefits as a result of the Research and Development: 1. Development of new design in product and launch of various new models. 2. Able to compete with the foreign players in the Indian Markets by cost reductions and offering innovation features and to maintain market leadership in Television under Videocon umbrella. 3. Increase in Productivity. 4. Reduction in power consumption of some of the products.
3) Future Plans of action In the coming days company is aiming to achieve development in the following areas through Research & Development: 1. Manufacturing of components for consumer Electronics Products. 2. Multimedia TV. 3. Plasma Televisions. 4. Launching of New Brands & Sub-brands under Videocon umbrella. 5. Composite Home Entertainment system with internet adaptability. 6. To work on better features, better quality & improved reliability with reduced/low prices. Your company always attempts to use the latest and advanced technology in production process. Keeping pace with the technological developments, the company keeps on adding sophisticated equipment’s with focus on automation to minimize manual intervention in the manufacturing process thereby ensuring quality of the final products.
Company History To think of the future, you need to think of your past. It all began with just a vision. In the year of 1981, Mr. GL Mirchandani and Mr. Vijay Mansukhani started a company called Onida with just a goal of manufacturing television sets and going beyond convention. By the end of that year, we started assembling television sets at our factory in Andheri, Mumbai. With the passage of time, superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a household name. Then we asked some more questions: 1. Is there an inherent consumer need that is not being met by the current products in the market? 2. Is there anything we can significantly add, upon entering the category? 3. Is there something that the other product players have overlooked, which we can address? Some of the innovations that surprised the world. After having established a reputation for being an intelligent and pioneering innovator in the application of technologies: we were the first to launch the Webcruiser TV, the world’s first built-in Internet TV which offers the benefits of a personal computer and a TV, and that too, equipped with a a modem, printer port and a cordless keyboard with it; the first to launch the ultimate in Flat TV technology with Onida Black with a high picture clarity with DVMC which ensures uniform scanning at the centre and corners of the TV screen. Again, the Onida Twister was the first TV that turned to face the viewer; we were the first to introduce SRS technology for surround sound in Audioport. In 1999, we were the first to introduce the pure flat TV in the country. The Candy was the
first instance of any brand providing a multi-coloured cabinet option to its customers. It still wasn’t enough. The common perception was that we were a focused TV manufacturer. But then with a knack for spotting a gap in the market, we realised that there were undiscovered needs and wants in other categories of consumer durables as well. So we recognized latent synergies which enabled us to provide customers with a wider range of products under the ONIDA brand. Washing Machines: In 2003-04 we launched the washing machine with Hydrofall technology which addressed the need of having a more powerful cleaning system. Then we realised that people still used their hands for cleaning so we launched the Triomatic technology which gives the perfect hand wash. Then we realised that people still keep bending to wash clothes so we launched a washing machine with a higher and wider vent so you don’t have to bend. Air conditioners: With the soaring summer heat, we saw a need for an AC with powerful cooling. And in addition due to the raising electricity consumption, the need for energy efficiency as well. Hence, the thought of an ultra slim powerful AC with unique APM cooling technology that cools even at 48oc and is the most energy efficient in the country which constantly keeps your electricity bills in check. DVDs: With today’s technology boom, there’s a need for a single multimedia interface as most people now download movies, music and click pictures through mobiles. Hence the need for USB and card reader. We also saw that most DVDs are rented hence are scratched. Which is why, we developed a DVD player with USB and Card Reader which also play scratched discs effortlessly. Microwave Ovens: We saw that people used Microwave primarily to heat food and not to cook. We also noticed that it’s difficult to cook food in a microwave. Especially Indian food. So to make cooking simpler we introduced 123 Indian autocook menus. So all you need to make Indian dishes is a finger. We later gave it a sleek, black look with a mirror finish so that it looks stunning too. LCDs:
What began as a TV became the window to the future. With the advent of television’s increasing popularity, there were many players with a wide foray of our models. To make matters interesting, there were several foreign players with technology that seemed futuristic and with a sleek look. However we mainly focused on picture clarity. So instead of just aping what the offering was, we asked ourselves, ‘Why not give a complete audio / video experience at home as well?’ And the result was obvious: Our CTV had up to 3500 Watts of sound. This was our first milestone which others followed. However, this held true twenty years later as well. LCD technology came in, in a bigger way. Onida once again took the onus to remind everyone, that sound is equally important to complete the viewing experience. So we made our Xaria with more than twice the sound output of other LCDs in the market. Then later on, we got onto its drawing board a pseudo home theatre with a 5.1 amplifier system and 1000-watt PMPO speakers, thereby putting a theatre’s soul inside a TVs body. We took the future by its horns and went on to make India’s first fully developed indigenised Xaria LCD with more than twice the sound output of other LCDs in the market. Mobiles: With the cellphone market already heavily penetrated, there was a need for a mobile that could stand apart. So what we sought to do was make every single Onida Mobile do so much more than what an ordinary cellphone does. So the moment you turn it on, you would realise that it’s fully-loaded. So many features. So many things. And so easy. But all these features are there in it for a reason. All of them to help you do better, enjoy better, listen better, work better or simply talk better. Vision and Mission The core of the thought. Our Vision To build a brand around substance. To communicate simple truths that customers understand. To become a leader in our chosen field and become a globally recognized, prestigious company through synergistic businesses investment,
differentiation through innovation, passion through empowerment, cost through economies of scale and world class systems and procedures that bring in a sense of delight to our stakeholders. Our Mission To benefit society at large through Innovation, Quality, Productivity, Human Development and Growth, and to generate sustained surpluses, always striving for excellence, within the framework of law and in nothing but the truth in which we base our every action Corporate Philosophy To think about you, we first think about everything. Commitment to society/nation We respect the society and the environment to which we belong and will contribute to its progress and welfare. Passion for quality Strive to create products with substance that are the best in class. Never compromise on quality. Give our customer better value-for-money, always. Fairness We stand for truth, fairness and justice in all our business and individual dealing without this spirit, no man can win respect no matter how capable he may be. People - our greatest assets We value good people. It is our responsibility to create actively and constantly an environment that supports them to grow and flourish. Harmony and co-operation Alone we are weak. Together we are strong. Work together as a family in mutual trust and responsibility. Courtesy and Humility Respect the right of others. Be cordial, modest and humble. Praise and encourage freely.
Strive for continuous improvement ( KAIZEN ) Seek and find in every action a way to do things better, always better. Growth Growth is vital. Increasingly seek out ways and means to constantly move forward. Innovation Progress by adjusting to ever-changing environment around us. As the world moves forward, we must keep-in-step. Gratitude Always repay the kindness of our customers, associates, community, nation and friends worldwide with gratitude. Milestone 1981 : MIRC Electronics Pvt. Ltd. was established 1982 : CTV production started at Nand Bhavan, Mumbai 1983 : Technical collaboration with JVC, Japan for CTV 1985 : Established in-house R&D wing 1986 : Production expanded and moved to a new factory at Kalina 1987 : Moved to our own factory building "ONIDA HOUSE" : Iwai, Speaker plant commences its operation 1990 : Tuner plant commences operation 1991 : Akasaka, PCB plant commences its operation : New CTV manufacturing plant at Vasai commences operations 1992 : Crossed 1 million CTV sales 1994 : Moved to a fully automated Plant of 600K CTV per year at Wada
1994 : Moved to a fully automated Plant of 600K CTV per year at Wada 1995 : ISO 9001 certification obtained from BVQI 1998 : Award for excellence in electronics by ministry of IT 1999 : First in India to develop Internet enabled CTV 2000 : Launched the KY Thunder, Profile Series 2001 : AV Max award for best CTV : Launched Onida Black, flat CTV range : Multimedia projectors launched : Commenced project to expand CTV capacity to 1 million 2002 : Completed plant expansion project to increase capacity from 600K CTVs to 1.2 million CTV's per year. : Launched 'KY Theatre' with circle surround sound, the first complete Home Theatre package : Launch of 'Igo'- the economy brand : Launched VCD player 2003 : Launched world's first LCD remote 'i-Control' : Launched Air-conditioners : Launched Rear Projection TV, Plasma TV & DVD Players : Launched Fully Automatic front loading Washing Machines : A MIRC product is getting sold every 27 seconds : Operations started in Russia 2004 : Launch of the 'Oxygen Series' CTV : Crossed Sale of 250,000 CTV's in October month : Launch of Microwave Owens : Mr.Gulu Mirchandani, CMD awarded 'Man of Electronics for the year' by CETMA 2004- 05 : Achieved 1.20 million CTV sales
2005 : Launch of 'POISON' range of CTV's Management Meet the thinkers. Mr. Gulu Mirchandani (Chairman & Managing Director) Mr. Vijay Mansukhani (Managing Director) Mr. G. Sundar (Chief Executive Officer) Mr. Satrajit Ray (Chief Financial Officer) Mr. Vikas Shirodkar (Chief People Officer) Mr. C. R Talati (Vice President - Operations) Mr. Sriram Krishnamurthy (Vice President - Marketing, Sales & Service)
Manufacturing Plant Onida's principal assembly operations are conducted in a state-of-the-art plant at Wada, 80 kms from Mumbai. The plant in Delhi caters to the production requirements for the Northern region. Our network of 33 branch offices, 208 Customer Relation Center's and 41 depots across India ensuring that Onida products are available on retail shelves. At Onida, we recognize that we can strengthen our competitive edge if we produce as much as possible from a given capacity at the lowest possible cost. We reduced the time it takes for a single color television to be produced from 20 seconds to 12 seconds and increased the capacity from 0.5 million to 1.2 million sets during the year under review. In 2002-03, using the existing infrastructure, a decisive step forward was taken by entering into the manufacture of washing machines and air conditioners at the Wada factory. Quality Assurance Thinking of your smiles. Thinking of quality, Quality for us isn’t just a norm; it’s a way of life. We realised that we have to accept and increase our levels of quality at every single stage even before the product is designed, even after the product is sold; only then do we believe that
it’s been worthwhile. So we treat quality as relentless pursuit for perfection, by being a stickler towards non-conformism and raising the bar. Finally only after there’s a smile of satisfaction that appears on your face, there’s one on ours as well. To give attention to you, we give attention to every detail. Before we start work on our quality, we look at what is it that others are lacking. We then disassemble the unit and work backwards, trying to figure out how we can make it better. Because we believe that the quality of any product is a result of good product design, good raw material and components and world-class production process. Any new product designed by Onida R&D goes through a set of stringent quality test. But it’s not just products but also their performance and at the same time adhering to tests and checks globally as well as locally. To name a few, we do the following tests: Dry Heat Test at 55oC. Cold Test at -10oC. Humidity Test at 95% Relative Humidity. 1000 hours at 40oC. Bump, vibration and drop tests. Voltage tests. We even ensure high standards of quality on all critical components like tuners, PCBs and loudspeakers are produced in house or procured from group companies. All vendors have to ensure that above the industry norms, they also meet the Onida Standard. No products get despatched without the QA clearance. Quality. All the way. Our quality standards don’t just end when the products leave the shop floor but continue even after the product is sold. All customer complaints are handled by a team of service personnel stationed all over India. In fact, there is a weekly interaction between Service, Marketing, R&D, Engineering and Quality to address all Field related quality issues. And what’s more, we have one of the lowest Field Failure Rate in the Consumer Electronics and Appliance segment in India. On our pursuit of excellence in quality, we have travelled from Quality Circle, Total Quality Management to Six Sigma Methodology. Non-conformance that used to be measured in percentages previously are currently measured in Parts
Per Million (PPM). Apart from ISO 9001 QMS certification, we are also certified for ISO 14001, Environmental Management System. So as you can see for us quality isn’t just a department but rooted in every single thing that we do. Research & Development Researching your minds. We believe that before we redefine technology, we should relook the way the department that researches technology. For only with a strong backing can your dreams, your desires take a solid shape with a stunning design. We believe that Research and Development isn’t about technology but a lot neanderthal than that: it’s about experience. For there’s no use of complicated and microbial technology working for you, if it’s not simple or easy to use; for there’s no use of superb design, if the quality inside isn’t as promising. And that’s what our R&D department attempts to do every single day. Make it just a little bit better.
Experience our thoughts. Our R&D department doesn’t just work towards giving you a better and more useful product. That’s just the tip of the iceberg. It attempts to add experience and value to the consumers at every stage of the product. For instance, when it comes to television, it isn’t just about better picture or better sound but also about the remote that you use. Even when it comes to washing machines, it isn’t just about better or cleaning washing but about how do you put your clothes in. We do the same thing for every single of our products. So that when you use an Onida product, satisfaction comes automatically. A little research. A lot of thoughts. Here’s a few example what our R&D unearthed across all categories: KY Thunder Case Study “A small change that was heard across the country.”
The background: The competition in televisions was fierce. But while people upgraded from Black and White sets to colour to stunning picture clarity, no one focused on giving the complete audio/video experience. The task: The simple reason why it was so because there was no more room for fitting speakers on the TV. So instead of putting everything inside, the R&D team simply fitted the sound behind the screen thereby giving a superb surround sound effect. The result: The rest obviously is history. It caught on faster than wildfire, everybody wanted to lay their hands on one, including the competition. The competition had to get technicians from abroad to understand what went through it and by the time they could copy the same, the market was already won. So much so that the brand
DVD Case Study “Everything begins with a scratch. Even the best.” The background: The market was filled with VCD players with DVD soon catching up to them. So instead of studying the DVD player, we looked at the DVD. What we observed was that people preferred to rent movies from video libraries to play them. And as a result, these discs had scratches and were used often. The task: We realised that the current discs fail to the challenge and then gave them a powerful laser that could read between scratched layers and reads beneath the layers of data. The result: The sheer advantage that we had was being the first mover. We gave consumers the freedom from scratched discs. The technology was a watershed turn for ONIDA DVDs, as it resulted in 16% market share and placed us as No. 1. Since then we have been considered as one of the market leaders, innovators and a technology company continuously excelling in research and technology. Washing Machine Case Study “Why bend over backwards to get a good wash.” The background: There were more than enough washing machines to give you a better wash. So how do you ensure that you get the cleanest and most powerful wash possible in the easiest manner? The task: We set forth by making a front-loader with a wider and higher front opening which ensured that you get the best possible wash without you having to bend.
Microwave Case Study “Push-button-cook.” The background: We saw that consumers used microwaves primarily to heat food and not to cook. We also noticed that it’s very cumbersome to cook food in a microwave. Especially Indian food at that. So we had change the way people looked at microwaves. The task: In order to make cooking simpler we introduced 123 Indian autocook menus. So all you need to make Indian dishes is a finger to cook any form of Indian dishes you preferred. We then later gave it a sleek, black look with a mirror finish so that it looks stunning as well. Exports Thinking globally. Onida with its Sales & Marketing office in Dubai reported a 215 percent export growth in two years, setting the base for an increased robust international presence. The shipments to the Gulf contribute almost 65 percent of Onida's export revenue while shipments to the fast growing East African market (Uganda, Tanzania, Kenya and Ethiopia) and the SAARC countries accounted for 16 percent of export revenues. Home Theatres and DVD players have been introduced in these markets to strengthen the Onida brand presence. These products have customised models with local language user interfaces in line with its geographies of focus. Onida models are now available with Arabic, Persian and Russian OSD (menu). Onida products have been favored by hypermarkets like Lu Lu Centres, Carrefours, Geants and Dasmans in GCC countries.
In addition to the Gulf countries ONIDA has now a sizeable presence in Russia,
Ukraine and neighbouring CIS countries. ONIDA has already crossed 1,00,000 mark in CTV exports to Russia in a span of just 2 years and plans to grow in these markets at a much faster pace. Apart from Television Exports to Russia, Onida also exports DVD Players and high end LCD Televisions. Our Export Plans Onida plans to expand its international presence by: Developing a production facility in the CIS countries/North Africa. Launching Home Theatre Systems, Microwave Ovens, Vacuum Cleaners and Washing machines in the Other than GCC in the near future. Launching the "Onida" range in Nigeria, Yemen and Iran/ IRAQ and SAARC countries as well.
WHIRLPOOL Innovation: Unique and compelling solutions valued by our customers and aligned to our brands create competitive advantage and differentiated shareholder value. Operational Excellence (OPEX): A methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps us achieve operational excellence. Customer Excellence: Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer. Knowing a customer helps us know who our customers are, how to treat them, how we add value, and what the drivers of brand loyalty are. This information is gathered from the customer's data base history. This way we are better able to customize products for them and recommend the right product to solve problems. Being a customer is important to share customer knowledge and insights, drive actions based on customer insights, be passionate about our brands and customer loyalty and provide a positive voice for our brands. We show empathy for customers and seek to resolve their problems by creating consistent customer touch-points, with our endeavor always being to provide unique solutions for the customer. Whirlpool is transforming into a completely customer-centered company where the customer lies in the core of every of our functions. This focus has arrived as direct consequence of our core competency of customer excellence. It allows us to build Customer Loyalty. The transformation is made up of five elements: Market leadership through customer loyalty Innovation Diversity with inclusion and core competencies Passion for customer excellence
Operational excellence The elements of the transformation hold the promise of making Whirlpool a growing company and thereby increasing value for our shareholders. The five elements are the basis for describing our strategy internally and guide the development of our plans and initiatives. Whirlpool has swiftly moved from being a World Class Manufacturer to a World Class Marketer using the brand-building framework. We are dedicated to creating unique branded solutions that build customer loyalty and achieve brand excellence. Vision & Mission Our pervasive vision, “Every Home, everywhere, with pride, passion and performance”, rests on the pillars of innovation, operational excellence, customercentric approach and diversified talent. These are embedded within our business goals, strategy, processes and work culture. Be it our products that are the result of innovation and operational excellence to meet every need of our consumers or the people behind these products that come from a wide spectrum of backgrounds, everything we do features a distinct Whirlpool way Whirlpool India Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being world's number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond achievable feat of any other in the industry.
Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it emerged as truly global leader in the1980's. This encouraging trend brought the company to India in the late 1980s. It forayed into the market under a joint venture with TVS group and established the first Whirlpool manufacturing facility in Pondicherry. Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into Indian refrigerator market as well. The same year also saw acquisition of major share in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to create Indian home appliance leader of the future, Whirlpool India. This expanded the company's portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 25%. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features an infrastructure that is witness of Whirlpool's commitment to consumer interests and advanced technology. In the year ending in March '09, the annual turnover of the company for its Indian enterprise was Rs.1,719 Crores. The company's brand and image speaks of its commitment to the homemaker from every aspect of its functioning. It has derived its functioning principles out of an undaunted partnership with the homemakers and thus a slogan of “You and whirlpool, the world's best homemaker” dots its promotional campaigns. The products are engineered to suit the requirements of ‘smart, confident and incontrol' homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions Media Room WHIRLPOOL INDIA: YOUR MAGIC IN HOMEMAKING
Whirlpool Corporation is a global manufacturer and marketer of major home appliances, with annual sales of more than $19 billion (for year 2005), 80,000 employees and nearly 60 manufacturing and technology centers around the globe. Whirlpool of India’s net sales for the period April 2005 -March 2006 stood at Rs. 1274 crores with an operating profit of Rs. 14.57 crores. Company witnessed a growth of 25% (Approx.) in net sales over the same period last year. The company manufactures in 13 countries and markets products in approximately 170 countries under 11 major brand names such as Whirlpool, Maytag KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. Whirlpool has sustained its leadership position within the global appliance industry, thanks to its innovation led approach and a keen understanding of the customers' needs, a firm commitment to addressing those requirements through company’s superb brands, products and services. Whirlpool Corporation entered India in the late ‘80’s and today has grown to become one of the leading manufacturers and marketers of major home appliances in India. Whirlpool’s international outlook was initiated in 1958 when it entered Brazil, but it was the ‘80’s that marked the beginning of Whirlpool’s aggressive strategy to be a world-wide competitor. India was identified as a growth market in late ‘80’s when Whirlpool Corporation entered into a joint venture agreement with TVS group to produce automatic washers at a plant set up in Pondicherry. A modest beginning was made to establish the Whirlpool brand in India. In 1995 Whirlpool Corporation acquired Kelvinator of India Limited and entered into the Refrigerator market in India. In late 1995 majority ownership was gained in the TVS joint venture and the two entities were merged to form Whirlpool of India Limited in 1996. Whirlpool’s aggressive business approach delivered the success that consisted of an extensive brand building exercise, fixed cost reduction and restructuring. Whirlpool chose to position the brand as a “Partner to the homemaker” and the values were translated into the various elements of the brand identity leading to the well known tagline “You & Whirlpool, The World’s best homemakers.” In fact, Whirlpool is credited with changing the lexicon from “housewife” to
“homemaker” in everyday parlance which truly celebrates the contributions the woman makes to the home. Targeted at the modern Indian woman who sees home appliances as her ally in homemaking, Whirlpool believes in providing world-class quality to its consumers. In its endeavour to maintain international standards of quality and style and match the exacting standards of the Indian homemaker, Whirlpool has successfully become a ‘Perfect partner to the demanding homemaker’ of today who seeks to nurture herself as well as home & family. Whirlpool’s products are stylish, modern and contemporary with elegant looks and reflect the sense of pride homemakers take in choosing them for their homes. Keeping this focus in mind, Whirlpool of India engaged a real life celebrity couple Ajay & Kajol to endorse the brand who symbolise the values that brand stands for. They both are two strong individuals, very different yet complementing each other. Their relationship represents what the Whirlpool brand has always epitomised in its advertising through the years- A relationship based on equality, love and romance. Whirlpool has the distinction of having ISO certification for all its facilities in India. The refrigerator facility is located at Faridabad and manufactures a complete range of direct cool refrigerators. With the infusion of technology, machinery and streamlining the processes the capacity of this plant was increased from 700,000 to 1,000,000 annually. Whirlpool’s commitment to the Indian operation has resulted in the setting up of a state-of-the-art facility for the manufacture of no frost refrigerators at Ranjangaon near Pune. This facility has set the standards as one of the world’s front runners in environmentally sensitive eco-friendly manufacturing units. The washer facility is located at Pondicherry and manufactures both fully automatic and semi automatic washers. Constant feedback is taken from the consumers resulting in products being continuously upgrade in features and in styling.
Products manufactured in the above facilities match Whirlpool’s global standards and are exported to over 70 countries across the globe. Whirlpool of India is today India’s largest exporter of home appliance and has been approved as an Export House. Design Engineering is being developed as a core competency for Whirlpool of India. A step in the direction has resulted in the setting up of Regional Technology Centres at Pune focussing on refrigerators and at Pondicherry for washers. This will provide WOI with a competitive edge in speedy customisation of products suited to consumer needs. In the second phase of developing this core competency Whirlpool set up a Global Technology Centre at Pune in 2002 to provide design support for the global organisation. A design and development centre for Whirlpool’s global small appliances brand Kitchenaid has also been set up at Pondicherry. The already strong manufacturing and technology infrastructure was augmented by the establishment of a Global Consumer Design centre for Asia in New Delhi in 2005.
4.1ANALYSIS AND INTERPRETATION OF DATA
Due to competition and several market opportunities available to the customers, he is quite selective while choosing a product that provides more satisfaction to them. Keeping in view the objectives of the study and the data collected through questionnaire following analysis has been made: 1. The data has been collected from different age group, different income level and on the basis of education level. 2. The survey was based on the performance of the consumers. 3. Different type of branded electronic products was also considered. 4. Awareness of branded electronic products was also surveyed. The response of the respondents either noted down on the questionnaire by me or by respondent itself noted down his response in my presence. So that respondents expression are noticed down by me and if any correction required in his response is done by me. Hence that data collection by me is more reliable and authentic.
Criteria 1 Person aware about brand equity, their response as follows: Analysis: Options Yes No % of Respondent 97% 3%
Aware about brand equity
It is observe that 97% respondents aware about brand equity
Criteria 2: Persons perceive about brand equity, their response as fallows: Analysis:
Options Marketing tool Advertising tool Communication tool
% of Respondent 26% 46% 28%
You perceive about brand equity
0.5 0.45 0.4 0.35 0.3 0.25 0.2 0.15 0.1 0.05 0
Series3 46% 26% 0 1 0 3 28% Series2 Series1
It is observed that 46% respondent perceive through Advertising tool , 28% respondent perceive through Communication tool , 26%respondent perceive through Marketing tool.
Criteria 3 : Have you purchase any product from the Internet: Analysis:
80% 70% 60% 50% 40% 30% 20% 10% 0% yes no Series1
Criteria 4:When respondents were asked which brand of electronic product they consider as best , they responded in the following manner: Analysis: Options LG Onida Videocon Whirlpool Samsung Any other % of Respondent 32% 3% 24% 12% 28% 1%
More popular brand according to you
Other 1% Samsung 28%
Onida Whirlpool 12% Videocon3% 24%
Interpretation: From the survey it is observed that:
1) 32% of people use only LG 2) 3% use Onida 3) 24% use Videocon 4) 12% use Whirlpool 5) 28% use Samsung
Total number of respondent uses branded electronic =32+3+24+12+28 =99
Criteria 5 :At present ,which brand do you prefer ?, they responded in the following manner: Analysis: Options LG Onida Videocon Whirlpool Samsung Any other % of Respondent 32% 1% 18% 18% 28% 3%
That brand you prefer
3% 28% 32% LG Onida Videocon Whirlpool 1% 18% 18% Samsung Any other
Interpretation: From the survey it is observed that:
6) 32% of people use only LG 7) 1% use Onida 8) 18% use Videocon
9) 18% use Whirlpool 10) 28% use Samsung Total number of respondent uses branded electronic =32+1+18+18+28 =97 Criteria 6: Reason for using this branded electronic product. Analysis: Options Avaibility Flexibility Reliability Memorability Any other % of Respondent 16% 15% 52% 14% 3%
Reason you are using this brand
60% 50% 40% 30% 20% 10% 0% Avaibility
Interpretation: Majority of the consumer using the particular reason is Reliability.
Criteria 7: Decision influencers to buy a electronic product. Analysis: Options Friend Advertising Availability Family % of Respondent 3% 54% 23% 20%
particular brand influenced by
0.6 0.5 0.4 0.3 0.2 0.1 0 3% 0 1 0 2 23% 0 3 20% 0 4 Series2 54% Series1
Interpretation: About 51% of respondents get information about branded electronic product from Advertising
Criteria 8: Respondent experience with market. Analysis: Options Reasonable satisfactory Very Satisfactory Unsatisfactory Very Unsatisfactory % of Respondent 51% 46% 3% 0%
Experience with market
9 7 0 5 0 3 51% 1 0 0 0.1 0.2 0.3 0.4 0.5 0.6 0% 0 3% 46% Series2 Series1
Interpretation: 51% respondent are reasonable satisfactory,46% are very satisfactory
Criteria 9: What factor influence your choice of brand. Analysis: Price Place Quality Performance Any other 40% 35% 15% 10%
Price Place Quality Performance Any other
Interpretation: This graph show that 40% customers are influence by the price of the brand whereas 35% are place and 15% are influence by any other factors.
Criteria 10: Time for using the particular brand. Analysis: Last one year Last six month Always Recently 40% 20% 15% 25%
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Last one year Last six month Alw ays Recently Series1 Series2
Interpretation: Majority of the consumer using the particular brand is from last one year
Criteria11: When respondents were asked if your favourite brand is not available then would you shift to other brand ,their response follows: Analysis: Options Yes No % of Respondent 41% 59%
Shift to some other brand
70% 60% 50% 40% 30% 41% 20% 10% 0% Yes No 59% Series1
Interpretation: It is observed that 59% respondents would not shift to some other brand
Criteria 12: If no then respondent do it. Analysis: Options % of Respondent
You will wait or use any 39% other products Wait for availability 42% Use any products other than 19%
Then you do it
100% 80% 60% 40% 20% 0% 0 1 0 3 Series1 Series2 0 5 39% 42% 19%
Interpretation: 42% wait for availability, 39% use any other brand
Criteria 13: Recall any advertisement related to branded electronic product. Analysis: Options Yes No % of Respondent 86% 14%
Recall any advertisment
Interpretation: It is observed that 86% respondents could recall any advertisement related to branded electronic product.
Criteria 14:Confident level on the fair dealing with supplier . Analysis: Options Somewhat confident Very confident Somewhat doubtful Very doubtful % of Respondent 48% 38% 14% 0%
Confident level on the fair dealing
70% 0 0 5 0 3 0 1 0 0 0.1
14% 38% 48% Series2 Series1
Interpretation: 48% respondents are confident, 14% somewhat doubtful
Criteria 15 :Advertising of branded electronic product should contain: Analysis: a) Genuine b) Its price c) Eye catching picture d) Recommendation of a well known personality e) Any other 20% 25% 27% 16% 12%
Preferences Genuine Its price Eye catching picture
Rank no. 3 2 1
Recommendation of a 4 well known personality Any other 5
Indicate your preference
12% 0 16%
genuine its price eye catching picture recommendationof 25% dation of a any other
Interpretation: It is observed that eye catching picture have an important role in advertising of branded electronic product.
Criteria 16: Does sources of brand equity e- area help in continuous improvement of your product and services. Analysis:
Yes No Can’t say
50% 35% 15%
Yes 50% N o C an’t say
Criteria 17: branded electronic product are over priced or not in comparison to normal product. Analysis: Options Yes No % of Respondent 71% 29%
0.8 0.6 0.4 0.2 0 Series1 Series2 71% 29%
Interpretation: 71% respondents think branded electronic products are over priced in comparison to normal products
Criteria 18: Will u prefer properly. Analysis: E- product Normal product 35% 65%
E- product Normal product
Criteria 19: Mode of payment by the computer. Analysis: DD/Cheque Cash Delivery Credit Card Others 40% 35% 15% 10%
45% 40% 35% 30% 25% Series1 20% 15% 10% 5% 0% DD/Cheque Cash Delivery Credit Card Others
1. Most of the people aware about brand equity. 2. LG and Samsung brand of electronic product is more popular. 3. Most of the people prefer LG and Samsung brand. 4. Reliability is the most popular reason for using this brand. 5. Consumer is reasonable satisfactory with brand experience with market. 6. 86% people recall any advertisement related to branded electronic product. 7. From the last year people are using this particular product. 8. Eye catching picture is people indicate preference. 9. Quality is the most popular attribute of electronic product.
1) 2) 3) 4) products. 5) Attributes other than branded electronic products property of Brand name, quality, relative price, awareness are the main parameters influencing purchasing decision. 6) It is found that in this product category, no single brand enjoys a monopoly or a significant of brand loyalty. This is an exploratory study using a small sample with the intent to determine how well the pure Keller brand equity model will fit in a B2B context. The advantage of this study is that it investigates a real brand with real potential B2B buyers , however there is a risk that the results may represent context-specific factors that are not representative of all industrial markets. Nevertheless, some interesting insights and challenges have been identified in applying Keller’s CBBE model in an organizational environment .It is suggested that an adaptation of the model is necessary for industrial marketers to effectively use it in building, measuring and managing brand equity. It is found that most of consumer prefer LG and Samsung Most of consumer prefers electronic product of high price Advertising effect the purchase of a particular brand of products Eye catching is no. 1 rank to advertise an branded electronic
6.2 SUGGESTION AND RECOMMENDATIONS
To increase the sales figures of LG, Samsung, it is necessary to understand the consumer’s attitude and perception and therefore some suggestion and recommendation are given below:
1. People should perceive about brand equity in all of the above. 2. That brand you prefer they should be reliable, flexible, available . 3. Your decision to buy a particular brand that should be fair. 4. LG, Samsung should use the promotional activities to enhance the satisfaction level of End users 5. LG, Samsung service provider should use the CRM programs for better customer relationship. 6. Some people are not aware of LG, Samsung services, so information technology and tools are used to aware the people. 7. First of all the LG, Samsung service providers should understand the consumer’s attitude and market demand through surveys and questionnaire.
6.3 LIMITATIONS OF THE STUDY
The following are the various limitations of the study:1. Some respondents don’t perceive about brand equity through marketing tool ,advertising tool 2. A sample of 60 respondents is too less to generalize the results for the whole population. Thus the results do not have much practical application value. 3. There was shortage of time and money 4. I have to face criticism about availability by some of the respondents 5. Some person don’t respond about brand
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