A REPORT ON

“A STUDY OF DEALER & CONSUMER PERCEPTIONS ABOUT WHITE GOODS OFFERED BY PHILIPS - ELECTROLUX”

BY SONALI MOHILE PHILIPS ELECTRONICS INDIA LIMITED, NAGPUR

TITLE PAGE

A REPORT ON “A STUDY OF DEALER & CONSUMER PERCEPTION ABOUT
WHITE GOODS OFFERED BY PHILIPS & ELECTROLUX”

BY SONALI MOHILE FOR PHILIPS ELECTRONICS INDIA LIMITED, NAGPUR A Report submitted in partial fulfillment of MBA program of UNIVERSITY. Submitted to Company Guide: Mr.Syyed Moeed Marketing Head Philips Electronics India limited, Nagpur Faculty Guide: Prof. Aniruddha Bodhankar DAIMSR, Nagpur.

Date of submission:

AUTHORIZATION

Dr.Ambedkar Institute of Management Studies & Research, Nagpur.

Authorization
This is to certify that this Bonafide record of project work entitled

“A STUDY OF DEALER & CONSUMER PERCEPTION ABOUT
WHITE GOODS OFFERED BY PHILIPS & ELECTROLUX” Carried Out by Sonali.V. Mohile
Of the SIP during the academic year 2009-2011 in partial fulfillment of the requirement for the award of the degree of MBA offered by DAIMSR.

Prof. Vivek Pimplapure Faculty Guide DAIMSR, Nagpur.

PHILIPS ELECTRONICS INDIA LIMITED, NAGPUR

ACKNOWLEDGEMENTS

ACKNOWLEDGEMENTS
A Successful project involves time & efforts of many individuals. The project “A STUDY OF DEALER & CONSUMER PERCEPTION ABOUT
WHITE GOODS OFFERED BY PHILIPS & ELECTROLUX” also involves

a very important contribution by many individuals who have put in a very significant effort in completion of this project. I take this opportunity to thank Mr.Syyed Moeed Marketing Head, Philips Electronics India Limited, Nagpur for giving this opportunity to do my project with the organization. I also thank him for his valuable inputs & time contributed towards project and my value addition. I also take this opportunity to acknowledge all the inputs & help provided by my project guide Prof. Aniruddha Bodhankar DAIMSR, Nagpur. His contribution motivation has prompted me to strive to achieve the objective as per the schedule.

Miss. Sonali V Mohile

TABLE OF CONTENTS

TABLE OF CONTENTS
 Authorization  Acknowledgement  Executive Summary

1. Introduction
1.1 Introduction to White Goods Industry 1.2 Introduction of Philips & Electrolux Company 1.3 Purpose of the project report 1.4 Objectives of the project report 1.5 Scope of study 1.6 Limitations of the study 1.7 Research Methodology

2. Introduction to Company

3. Importance of Effective Marketing Strategies
3.1 Importance of Perception in Marketing 3.2 Data Collection of various products of Philips & Electrolux

4. Findings a]
Data Analysis & Interpretation

b] Conclusion & Recommendation

5. Annexure

6. References

EXECUTIVE SUMMARY

Executive Summary
The final report describes the work undertaken to attain the objectives of the project and analyze the various aspects related to the project.
“A Study of Dealer & Consumer Perception about White Goods Offered By Philips & Electrolux”

This report deals with the following two main objectives:1. To study Dealers Perception towards various products [white goods]
offered by Philips & Electrolux Company 2. To study Consumer Perception towards various products [white goods] offered by Philips & Electrolux Company

 The prime objective is to gather information about all the different types of White goods offered by Philips & Electrolux Company, the various features of these products the various segments that are targeted, the benefits derived by the consumers and the pros & cons of the products.

 The secondary objective is to find the awareness among the dealer & customer and their perception about these products by approaching them directly & filing questionnaires.

 The methodology used to gather the required data has been primary research. The research design used is Descriptive research, the research instrument is Questionnaire, and the Sampling Methods used are based on Judgmental Sampling. The data regarding the various products have been collected through secondary sources.

 Finally an analysis is done on the products of the company and an attempt has been made to find the perception of the customers & recommendation are provided on the behalf of the analysis of observations. The work done has been analyzed and the major findings and conclusion have been discussed at the end of the report.

INTRODUCTION

INTRODUCTION
1.1 Introduction to White Goods:

1.2 Introduction of Philips & Electrolux
Company

It is subsidiary of the Netherlands-based Royal Philips Electronic

It is more focused company with global leadership positions in key markets of Healthcare, Lighting and Consumer Lifestyle. Brand promise is “sense and simplicity”. Headquarter is in the Netherlands. It employs approximately 121,000 employees in more than 60 countries worldwide. Philips has been operating in India for over 75 years. It employs over 4,500 employees around the country.

 The Electrolux Group is a Swedish manufacturer of home and professional appliances and is the world's 2nd largest appliance manufacturer.  Hans Staberg -president and CEO  Employee - 50,630  Electrolux products include refrigerators, dishwashers, washing machines, vacuum cleaners and cook tops

1.3

Purpose of the project report:

The project deals with Study of Dealer & Consumer Perception about White Goods i.e. Consumer Electronics& Home appliances [CTV, LCD, LED, Washing Machine, Air condenser, Fridge, Microwave Owen, etc] Offered by Philips & Electrolux and the Perception & acceptance of these products by the consumers. The main purpose of this project report is to provide the company with first hand information about the perception the dealer & consumer have against the products that the company offers the advantage they derive, any suggestions & feedback.

1.4 Objectives of the project report:

The two main objectives of the project are:

1. To study Dealers Perception towards various products [white goods] offered by Philips & Electrolux Company

2. To study Consumer Perception towards various products [white goods] offered by Philips & Electrolux Company

The prime objective is to gather information about all the different types of White goods offered by Philips & Electrolux Company, the various features of these products the various segments that are targeted, the benefits derived by the consumers and the pros & cons of the products.

The secondary objective is to find the awareness among the dealer & customer and their perception about these products by approaching them directly & filing

questionnaires.
On the basis of the above points and strategies discussed the factors that the consumers look for buying these products will be analyzed, a study of the perception that the dealer & consumer have regarding the products of PE Electronics Ltd & future expectations will be made. Finally on the basis of analysis suggestions & recommendation will be provided as well as strategies that the company can adopt in order to fulfill customer expectations.

1.5

Scope of study:

A big boom has been observed in the Fast Moving Consumer Durables in recent time. A large number of new players have entered the market and are eying to gain market share in this rapidly improving market. White goods

The project report deals with issues that are important from the point of view of Company’s senior management and promoters of company which is dealing in highly niche segment. It is essential that strategic decisions for the company are based on accurate information. This report will help him in making prudent changes and improving the current state. There is a famous philosophy “we can’t manage what we can’t measure and we can’t improve what we can’t manage” hence it is very important to understand various parameters that help to measure the value of company and analysis of present will help in rectifying the problems with the company and projections will help the company to meet its vision and planned growth strategies.

The result of the survey will help the company to know whether the public is aware about their products or not and perception of people regarding the products the company is offering to them. The results will also help the company to trace the loop holes and then take corrective measures to rectify them and fulfill customer expectations. The Project prepared on the basis of data and information collected will help the company in

a. Knowing the awareness of their products amongst the dealers & consumers b. The perception & willingness to accept these products c. The competitive strategies that the company can adopt d. The various products offered by the other players in the market e. The future expectations of the dealers & consumers f. Suggestions & feedback of new as well as existing customers

Hence, this project is an attempt to analyze that is related to the above discussed issues.

This is limited study which takes into consideration the respondents 220 people. This data can be exported to take decision for promotional strategy across the industry. It is rapidly changing and evolving sector. People are only beginning to wake up to its vast possibilities. A study

like this an attempt to guide the future of the industry based on current trends.

To facilitate and provide all the useful information of the study, the company, the consumer durables and also provide marketing ways, methods of PE Electronics Ltd.

1.6

Limitations of the study:

A project is always carried out under strict circumstances and with certain constraints. These constraints could be either in the data , data collection or in the methodology of the research conducted. The most important step which should be taken is to find out these constraints or limitations so as to help the use the research with higher amount of certainty and in the right direction.

The Limitations of the project are:-

1. Procedural Limitations All the data that is collected generally limited by the data adopted. In the current research, the sole method of data collection being questionnaire, it limits the data to the extent of data generation available through that method.

2. Geographical Limitations The research is carried out with dealers & consumers , who are based in Nagpur only, so it can’t be generalized and are not applicable to other parts.

3. Temporal or Time Limitations The study will be conducted during the period of July2010 to August 2010 and the data and analysis pertaining to the information will be available during that period of study only.

4. Situational Error This may arise due to situational factors affecting the consumer response. So, it is not avoidable and it is up to the consumer how he react or response at that particular moment.

5. Sample Size

The study takes into account a sample of 220, which may not be a good indicator of the population, but the study includes extensive interaction with the customers.

1.7

Research Methodology:
 Research Design:
It is a master plan specifying the methods & procedures for collecting & analyzing the needed information. It is a framework that plans the action for the research project. The objectives of the study determined during the early stages of the research are included in the design to ensure that the information collected is appropriate for solving the problem.

 Descriptive Research:
Research Method that is used for this research is Survey

 Survey:

MAIN TEXT

2. Introduction to Company:

FINDINGS

Major Findings and Data Interpretation

A] Dealers Survey
Data has been collected from 90 Dealers directly through the use of questionnaire and the same has been presented and interpreted question wise.

 What is Dealer’s Perception about Philips Brand?

27%

S.No

Perception about Philips

No of people 25

% of people

1

27% Excellent 2 Good 46 51%

3 Average 4 Poor

14 5

16% 6%

It has been observed that Philips is old brand & well known for its quality. Dealer’s acknowledged 51% approximately 46 dealers out of 90 Philips as a Good Brand.

• Positive Perception of Dealer towards Philips Brand  Philips is old brand & well known for its quality.  Philips is best in audio.  Products are durable & service issues are rare.  Consumer Perception towards Philips is good

• Negative Perception of Dealer towards Philips Brand

 Look of the products are not stylish.  Product not flash on TV & other media so mostly customers are unaware about new products as compare to other brands.  Lack of potential demand.  Schemes & offers are rare.  Currently not in demand.  Customers mind set is just like “Philips is not a modern brand”.

 What is Dealer’s Perception about Electrolux Brand?

 It has been observed that Electrolux is old brand & well known for its Products durability. Dealer’s acknowledged 32% approximately 29 dealers out of 90 Electrolux as a Good Brand as well as 32% dealers suggested Electrolux as a Poor Brand.

S.No 1 2 3 4

Perception about Electrolux Excellent Good Average Poor

No of people 8 29 24 29

% of people 9% 32% 27% 32%

• Positive Perception of Dealer towards Electrolux Brand

 Electrolux is well known for refrigerator.  It has good brand image.  People know the brand. \

• Negative Perception of Dealer towards Electrolux Brand  Service is poor.  Currently not in demand.  Spare parts are not easily available.  Product range is not available.  Identified by the name KELVINATOR.

• Percentage of Product Potential towards White goods? A] LCD

84%

S.No

Dealers Perception towards LCD

No of people % of people [90]

1 2

Yes No

76 14

84% 16%

48%

Nil

22” & 32” size is currently in demand so dealer interested to sale this size mostly. 76% dealer s prefers this size only.

 LCD 22”  LCD 24”  LCD 32”

38% 21% 38%

B] LED

S.No

Dealers Perception towards LED

No of people [90]

% of people

1 2

Yes No

32 58

35% 65%

 LED 22”  LED 24”  LED 32”

27% 11% 47%

 Customers not still completely aware about LED TV. In most  LED 40” 13% shops we not found LED in their display. Dealer prefers 32” TV for selling.

C] HOME APPLIANCES

S.No

Dealers Perception towards Home

No of people [90]

% of people

Appliances

1 2

Yes No

86 4

95% 5%

Category of Home Appliances
 DC  FF  MWO  AC  WM 42% 23% 10% 8% 17%

 Most of the dealers want to sell Refrigerators of Electrolux & particularly DC. If Electrolux will produce competitive goods

along with good marketing then it can capture good market share, because it is not totally unknown for customers.

What is the Best Media of Marketing of White Good s?

 According to the whole survey each type of media plays important role to promote the brand at his place.  Generally TV ad aware more customers about the product.

S.No

Marketing Media

No of people [90]

% of people

39 1 2 3 4 5 Corporate Advertisement Electronic Media WOM In-shop Branding Shared Adds 35 14 3 6

41%

36% 15% 2% 5%

• But WOM is most effective media of marketing because; when customer hears anything from other people they trust them easily. • Shared ad satisfies the dealer so they promote particular brand in their shop. • In shop branding also very important because; when customers see pamphlets; display; & other things they know something about products and customers think that brand is not out of market.

• What kind of Margin dealers expect from company?

13% 28% 28% 17%

5% 9%

S.No

Margin expected by Dealers

No of people [90] 12

% of people 13%

1

0 - 5%

2 3 4 5 6

5 - 10% 10 - 15% 15 - 20% More than 20% Others

25 15 8 5 25

28% 17% 95 5% 28%

 After overall analysis of dealer’s survey, we conclude that mostly dealer wants margin in between 6-10%. Margin is not constant for all; some dealer earns more, so some dealer suggested that company should put MOP. Then all dealer sell at same price.

• What kind of Retention dealers expect from company?

29%

18%

22%

13%

S.No

Retention expected by Dealers

No of people [90]
16

% of people

1

0 - 5% 5 - 10% 10 - 15% 15 - 20%

18%

2

20

22%

3

12

13%

4

10

11%

5

More than 20% Others
 Retention also varying from dealer to dealer.  MOP is best way to satisfy to all dealers.  Most dealer wants retention in between 4-6%.

7

7%

6

26

29%

• What are the Best Ideas Dealers suggest after sales service?

S.No

Services

No of people

% of people

[90] 1 2 Within 24 hrs 77 Within 48 hrs 13 85% 15%

 According to the dealers survey we conclude that customer want own company’s service centre in city. Service should be prompt that means within 24 hrs in city after customer call, within 48 hrs outside city & within a week in rural area.

• What are the suggestions given by Dealer for improvement?

S.No

Suggestions from Dealers

No of people [200] 45 12 8 5 20

% of people 50% 13% 9% 6% 22%

1 2 3 4 5

Improve Service Service Center Quality Defective Pieces Advertising

 Service & quality should be prompt.  Strong marketing required.  Brand should be endorsed through any big celebrity.  Product range must be there.  There should be MOP i.e. Market Operating Price.  Company should give GIFTS & SCHEMES to the customers as well as dealers.  Company should concentrate on LOCAL MEDIA also.  In shop branding also important to promote brand.  There should be good margin for dealers so they promote our brand.  Spare parts should be available easily.  Service centre must be within city.

B] Consumer Survey
Data has been collected from 130 Consumers directly through the use of questionnaire and the same has been presented and interpreted question wise.  What is Consumer’s Perception about Philips Brand?

S.No

Consumer Perception about Philips

No of people

% of people

1 2 3 4

Excellent Good Average Poor

14 96 4 19

10% 73% 3% 14%

Positive Perception of Consumer towards Philips Brand

 Philips is old brand & well known for its quality.  Philips is best in audio.  Products are durable & service issues are rare.  Out of 130 people, 96 acknowledged Philips as a good brand

• Negative Perception of Consumer towards Philips Brand

 Product not flash on TV & other media so mostly customers are unaware about new products  Service centers are away from city

 Out of 130, 19 was unknown from the brand& 4 accepted Philips as poor brand  Customers mind set is just like “Philips is not a modern brand”.

• What is Dealer’s Perception about Electrolux Brand?

S.No

Consumer Perception about Electrolux

No of people 8

% of people

1 Excellent 2 Good 3 Average 4 Poor

6% 45% 14% 35%

58 18 46

• Positive Perception of Consumer towards Electrolux Brand  Electrolux is well known for refrigerator.  It has good brand image.  Out of 130 customer, 58 acknowledged Electrolux as a Good Brand  Products were good in features

• Negative Perception of Consumer towards Electrolux Brand  Service is poor.  Currently not in demand.  Spare parts are not easily available.  Product range is not available.  Out of 130 people, 46 were unknown of the brand & 18 accepted Electrolux as poor brand.

• Which Brand Consumer prefer in Home Appliances if the prices of following brands are equal?

S.No

Consumer Perception about Electrolux Samsung LG Whirlpool Godrej

No of people 3 28 48 25

% of people

1 2 3 4

2% 22% 37% 20%

5 6

Electrolux Others [Videocon, Panasonic]

19 6

15% 4%

 According to survey, customer preference towards the home appliances brand were • Samsung • LG • Whirlpool • Godrej • Others [Videocon, Panasonic] • Electrolux

 Customer were more influenced towards Samsung products if the prize of all brands are same because of – • Wide Product range • Excellent quality • Good Services • Attractive looks of the product

• Which Brand Consumer prefer in Consumer Electronics if the prices of following brands are equal?

 According to survey, Customer preference towards the Consumer Electronics brand were • Sony • Samsung • LG

• Philips • Others [Videocon, Sansui] • Onida • Panasonic

S.No

Consumer Perception about Electrolux Philips LG Samsung Sony Onida

No of people

% of people

1 2 3 4

10 19 27 53 8 4

7% 15% 21% 41% 6% 3%

5

Panasonic

6

Others[Videocon, Sansui]

9

7%

 Customer were more influenced towards Sony products if the prize of all brands are same because of – o Excellent quality o Good Services o Attractive looks of the product o Wide Product range o Good Brand Image o Always on good position in Marketing also

 While purchasing a product which shop consumer prefer?

S.No

Shop Preference

No of people [130]

% of people

1 2

Exclusive Showroom Multi-brand Showroom

30 100

23% 77%

 Customer prefer mostly Multi-brand showrooms to purchase the products  Wide variety of brands & To know Product extensions  Compare the prices, services & features of each brand

• What is the major consideration while purchasing the product?

S.No

Consumer Perception while purchasing the product

No of people

% of people

1

Price Features Services Offer

26 52 39 13

20% 40% 30% 10%

2

3

4

• Which Media of Marketing influence Consumer for a particular brand?

50% 40%

8%

2%

ConsumerPerception

 According to the whole survey each type of media plays important role to promote the brand at his place.  Generally TV ad aware more customers about the product.

S.N o

Media of Marketing: Influence Decision

No of peopl e [130]

% of people

1

TV Advertisemen t Word of Mouth News Paper Hording / Posters

81

50%

2

76 17 8

40% 8% 2%

3

4

 Out of 130 people, 65 acknowledged TV Advertisement as best media for marketing the product  Even Brand Ambassador is best way to convey our product details to the target customers  But WOM is most effective media of marketing because; when customer hears anything from other people they trust them easily.  Shared ad satisfies the dealer so they promote particular brand in their shop.

 What are the suggestions given by Dealer for

improvement?

• Strong marketing required. • Brand should be endorsed through any big celebrity. • Service & quality should be prompt

S.N o

Media of Marketing: Influence Decision

No of people [130]

% of people

1

Marketing Improve Service & Quality Prices Service Center No

42 39 20 15 10

31% 30% 15% 13% 11%

2

3

4

5

• Product range must be there. • Company should give GIFTS & SCHEMES to the customers as well as dealers. • Company should concentrate on LOCAL MEDIA also.
 Service and spare parts should be made easily available

 Improve customer relation & provide schemes to the customers

Conclusion
Marketing is not always what it seems to be. In the world of marketing, Perception is often more important than reality – and the preconceived notions of potential & current clients carry far more weight than what might, in scientific terms, be described as the ‘true’ picture. This is important because you have better product, better service & better price -- in objective reality – one may find that the potential clients just don’t seem to care, or refuse to get it. Their frame of reference and perspective is defined by other values.

This report deals with the following two main objectives:-

1. To study Dealers Perception towards various products [white goods] offered by Philips & Electrolux Company

2. To study Consumer Perception towards various products [white goods]
offered by Philips & Electrolux Company

Data regarding this Product [white goods] have been collected & the important features & benefits have been described as above.

RECOMMENDATIONS

Recommendations & Suggestions
On the basis of the data collected following are the recommendations & suggestions that the company can implement to attract & retain customers

ANNEXURE
Sample copy of questionnaire

Questionnaire
Declaration: The

information collected by you will be purely used for academic research purpose only.
DEALER SURVEY
1) What is your perception about Philips & Electrolux as a brand? 2) What are the Pending Issues? 3) What kind of margin do you expect?  LCD CTV  Home Appliance

4) What kind of retention do you expect? 5) What is the best media of marketing? 6) What is the best idea do you suggest for after sales service? 7) Which product Category do you want to sell in Philips? LCD  22” LED –  22”  24”  32”  40”  46/55”  24”  32”  40”  46/55”

8) Which Product category do you want to sell in Electrolux?  DC  FF  MWO  AC  WM

9) Which is the highest selling Product Category at your shop? LCD  22” LED –  22”  24”  32”  40”  46/55”  24”  32”  40”  46/55”

Home Appliances  DC  FF  MWO  AC  WM

10) Any suggestion do you want to give for improvement?

CONSUMER SURVEY
1. What do you think about Philips TV/LCD/LED?  Excellent  Good  Poor  Unknown

2. What do you think about Electrolux Appliances?  Excellent  Good  Poor  Unknown

3. If the prices of following brands are equal which brand do you prefer in Home Appliances & why?  Electrolux  L.G  Samsung  Whirlpool  Godrej

Reason: - ________________________________________________ 4. If the prices of following brands are equal which brand do you prefer in Consumer Electronics & why?

 Philips  L.G

 Samsung  Panasonic

 Sony

Reason: - ________________________________________________

5. While purchasing Products which shop you prefer?  Exclusive Showroom  Multi-Brand Showroom

6. What is the major consideration while purchasing a product?  Price  Service  Features  Offer

7. Which of following influence your selection of a particular brand?  TV Advertisement  News Paper ADD  Word of Mouth  Hoarding / Poster

8. Do you prefer those brands which a dealer suggests you?  Yes 9. Any Suggestions?  No

REFERENCES
Books:-

 Zikmund W G; 2003. Business Research methods  Kotler P., Armstrong, 2006. Principles of Marketing  Kotler P., Keller, 2006. Marketing Management.

Websites: www..com  www..com  www..com