Summer Internship Project Report

ON
Comparative Analysis of Prospective Clients Behavior of Hitachi with its
Competitors

Submitted in partial fulfillment of the requirements for the award

Of

Post Graduate Diploma in Management

Batch 2021-2023

Submitted by

Ritika Mishra

GNIOT/GIMS/21/128

Faculty Guide: Industry Guide:

Prof. Silky Gaur Mr. Pranab Ranjan Prasad

Designation: Assistant Professor PAN India HR

Department: Marketing Johnson Control-Hitachi Air-

Conditioning Pvt. Ltd.

 DECLARATION

I hereby declare  that  this  Summer Internship Project Report  titled Comparative Analysis of
Prospective Clients Behavior of Hitachi with its Competitors submitted by me to GNIOT
Institute of Management Studies (GIMS), Greater Noida is a bonafide work undertaken during
the period from 06/06/2022 to 10/07/2022, by me and has not been submitted to any other
University or Institution for the award of any degree diploma / certificate or published any time
before.

(Signature of the Student)                                                                                    Date:20  /09 / 2022

Name: Ritika Mishra

 Enroll. No.: GNIOT/GIMS/21/128

 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled “Comparative Analysis of Prospective
Clients Behavior of Hitachi with its Competitors”

is the bonafide research work carried out by Ritika Mishra; 921101 student of Post Graduate Diploma in
Management (PGDM), GNIOT Institute of Management Studies (GIMS), Greater Noida, in partial
fulfillment of the requirements for the Summer Internship Project Report for the award of Post Graduate
Diploma in Management (PGDM).

 He / She has worked under my guidance.

I wish him/her a success in all his/her future career endeavours.

                                                                                                                                         

___________________

Signature with Date

Faculty Mentor’s Name: Prof. Silky Gaur

Designation: Assistant Professor

 ACKNOWLEDGEMENTS

I take this opportunity, to acknowledge some of the people, who have made a major contribution
to the development of this project.

I am especially very grateful to Mr. Pranav Rajan, HR Manager Hitachi Ltd. for the guidance,
inspiration, motivation and encouragement, he provided during the course of the project
study. He has always been nice and patient enough, to listen to the queries and solving them, in
spite of a very busy schedule.

I am also indebted to Mr. Nitin Gupta, Store Manager, Croma store, for the reviews,
suggestions and support, he extended whenever it was required. This project could not be
completed, without the assistance of all the other staff members in the organization, who helped
me in familiarizing with the organization and assisted me through their experiences and
information required during the project.

I would like to express my sincere thanks to Prof. Silky Gaur (Faculty, GNIOT Greater Noida),
my project guide, for his valuable support. He gave me the opportunity to do this project; her
timely guidance helped me, and making this project, what it has come out to be.

My humble thanks to my family members, colleagues and last but not the least the Placement
Cell of GNIOT Institute of Management Studies, Greater Noida

Date: 20 /09 / 2022

Name: Ritika Mishra

Enroll. No.: GNIOT/GIMS/21/128

Course: PGDM (IV-Trimester)

 (Signature of the Student)

i
ii
 EXECUTIVE SUMMARY

In partial fulfillment of requirement of Post Graduate Diploma in Management, a summer

internship of two month is required to be undertakes at an organization. Because of this
requirement, I undertook an “On-the-Job” internship on “Comparative Analysis of Prospective
clients Behavior of Hitachi with Its Competitors” during May-July 2022.

Hitachi, Ltd. is a Japanese multinational engineering an electronics conglomerate company

headquartered in Chiyoda, Tokyo, Japan. Hitachi is a highly diversified company that operates
eleven business segments: Information & Telecommunication Systems, Social Infrastructure,
High Functional Materials & Components, Financial Services, Power Systems, Electronic
Systems & Equipment, Automotive Systems, Railway & Urban Systems, Digital Media
& Consumer Products, Construction Machinery and Other Components & Systems.

The main objective of this study was to better understand the policies and procedures of Hitachi,
an attempt has been made to gain an insight into the air conditioner and refrigerator industry, to
study various parameters involved in the air conditioners and refrigerator, to study retailers’ and
customer perception about various parameters like price, brand image, after sales service etc.

This project has been carrying out in three phases. In the first phase, in an attempt to gain insight
into the air conditioning and refrigerator industry as to how it works, what all-competing brands
are there, this study gave a fairly good idea about the industry and the perception of retailers
towards different brands. This study helped to identify various parameters involved in the air
conditioner and refrigerator. A good amount of qualitative information is gathering from this
study. In the second phase, gathered a good idea of sales and customers behaviors in the retail
outlets. Some part of my project also included handling customer’s calls, stock handling,
demonstrations and installations booking. In the third phase, a structured questionnaire was been
generated to find out the brand awareness of the customer and their most preferred brands in
those two particular segments and along with their buying behavior, which was also a part of the
study.
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The major findings that emerged from the analysis were that Hitachi ranked second when it comes
to brand preference in air Conditioners but ranks lower in after sales services. In addition, price,
quality and brand image emerged out as significant factors for air Conditioner and refrigerator
purchase. Most the customers who prefer Hitachi, they are mostly premium customers. Customers
prefer Hitachi as a brand because Hitachi gives some value addition in retail selling compared to its
competitors.

Based on above findings it can be conclude that Hitachi has improved in brand awareness among
retailers and customers but it is yet to surpass Voltas in the competitive market. Also sales team
visits, ordering and after sales are a matter of concern that can cause great loss to the company in
future, if not corrected. The actions recommended broadly include strengthening distribution
network. Improving incentives to sales forces and strengthening retail network of Hitachi.

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 Table of content
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
1.1.1 HISTORY OF AIR CONDITIONERS 1-8
1.1.2 INTRODUCTION OF AIR CONDITIONER
1.1.3 ANALYSIS OF AIR CONDITIONER INDUSTRY
CHAPTER 2: ORGANIZATION INFORMATION & COMPANY PROFILE
2.1 COMPANY PROFILE
2.2 ABOUT THE COMPANY
2.3 PRODUCT LINE
2.4 FEATURES OF PRODUCT
2.5 MARKETING STRATEGIES
2.6 COMPETITORS
2.7 GOVERNMENT POLICY
2.8 ACHIVEMENTS 9-29
2.9 SWOT ANALYSIS
2.10.1 JOB REQUIREMENT OF SALES PERSON
2.10.2 JOB DUTIES AND TASKS
2.10.3 JOB ACTIVITIES
2.10.4 JOB SKILLS
2.10.5 JOB ABILITIES
2.10.6 JOB KNOWLEDGE, EXPERIENCE, EDUCATION
2.11 JOB DESCRIPTION AT HITACHI

CHAPTER 3: LTERATURE REVIEW 30-34

CHAPTER 4. RESEARCH METHODOLOGY

OBJECTIVE OF THE STUDY 35-39
SOURCES OF INFORMATION
SAMPLE SELECTION
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 DATA COLLECTION
DATA COLLECTION METHOD
INSTRUMENT USED

CHAPTER 5 DATA ANALYSIS & INTERPRETATION

40-63

LEARNING OUTCOMES 64-65

RECOMMENDATION & FINDINGS 66-68

LIMITATION & CONCLUSION 69-71

BIBLIOGRAPHY AND REFERENCES 72-75

ANNEXURE 76-77

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CHAPTER 1: INTRODUCTION

1
 1.1 INTRODUCTION

Today Indian consumers are not limited to a set of needs. Products are today customized keeping
in mind various consumer’s likes and dislikes. The consumer durables industry, which mainly
comprises home appliances, is highly influenced by the prospect in order to produce the right
product for the customer. Previously air conditioners were not perceiving as white goods due to
large price difference between air conditioners and other white goods. Now, thanks to
Liberalization and growing technology, the air conditioner market a decade back and that of
today are entirely different.

Be it price or technology, consumer demand has seen a sea change. Today buyer has plenty of
options to choose from and different companies are trying their best in luring the customer. This
is mainly due to entry of foreign players after globalization.

Air conditioner purchase involves a high involvement decision; customers thought a lot before
buying a new ac as investment are comparatively higher as compared to say FMCG. This even
complicates the task of various companies involved in ac business. Last but not the least, since
technological differences between brands of similar price range are not significant, marketing is
the only tool left for competitive advantage.

1.1.1 HISTORY OF AIR CONDITIONERS

On July17, 1902, Willis Havilland Carrier installed the first air conditioner at a printing press at
Brooklyn N.Y. It was not to help the workers at factory though. It was to keep paper cool and dry
so it would not curl in the mid-summer heat and humidity. That way, the printing press could
apply the ink properly. Mr. Carrier started a revolution by doing that. Air conditioning allowed
cities to develop in deserts. It changed the designs of houses and skyscrapers.

It took pioneering genius of Willis Carrier to work out the basic principle of cooling and
humidity control and it took innovation by thousands of engineers before air conditioners
became a real benefit to average person.

2
Carrier’s invention made many technologies possible, especially in fields that required highly
controllable environment such as medical and scientific research, product testing etc. Carrier
claimed that while he was standing in a Pittsburgh train in 1902, he realized that saturating it
with chilled water to induce condensation could dry air.

Willis Carrier is known as the father of air conditioners. In 1928, Carrier developed first
residential “Weatherman”, an AC unit for private houses.

1.1.2 INTRODUCTION OF AIR CONDITIONER

Air conditioning is the conditioning of air within a defined space, usually a residence or a place
of business. Conditioning usually involves heating or cooling, humidifying or dehumidifying,
and filtering or cleaning air. In a central air conditioner, the system cools and dehumidifies the
defined space. Heating is accomplished by an add-on to the system (such as an electric heat strip)
or by a separate unit, such as a furnace.

There are four basic air conditioner types: window units, through-the-wall units, portable units
and completely house/central air units. Window units come in models made for double-hung
windows, sliding windows and casement windows. Through-the-wall and central air units
require professional installation. Portable units are not typically as effective as window air
conditioners and are best used only in situations where fitting into a window is not an option.

Window air conditioners are very simple appliances. They operate on the exact same principles
as a refrigerator, freezer, or dehumidifier.

Cooling: All residential window air conditioners have a cooling system made up of four primary
components, a compressor, an evaporator, a metering device, and a condenser. Air conditioner
cooling systems are better understanding if you think of them as devices that remove warmth
from the air rather than cooling the air.

3
Blower fan: When the unit is running, the circulating fan and compressor are running
simultaneously. The fan motor has two fan blades attached to it on either end. The fan blade on
the inside part of the unit continually draws room air over the evaporator coils, which are cold.
The fan blade on the outside part of the unit continually draws fresh outside air over the
condenser coils, which are warm. Because the evaporator coils are cold, they cause moisture in
the room to collect on them, much like a cup of ice water on a warm, humid day. When the
amount of moisture increases, it begins to drip down off the coils into the bottom pan of the air
conditioner.

Thermostat Control: The thermostat on a window air conditioner works by sensing the air
temperature entering the air conditioner. As the air, entering the unit reaches the set temperature
it will cause the compressor to turn off. The blower may continue to run depending on the
selection chosen on the control panel. Digital thermostats work on a similar principle but display
a more precise temperature.

Selector switches: The air conditioner selector switches allow the user to choose the fan speed.
The compressor always runs at the same speed regardless of the settings. If low cool is, choose,
for example, the fan runs at a slower speed but the compressor still offers the same cooling
capacity

Central air conditioners are split systems: an outdoor unit (the condenser unit) and an indoor
unit (air handler). The function of an air conditioner is to transport heat from one station to
another. The vehicle your system uses to carry the heat is calls a refrigerant, commonly referred
to as Freon. The compressor in outdoor unit changes the refrigerant (or "Freon") into a high
temperature, high pressure gas. As that gas flows through the outdoor coil, it loses heat and
condenses into a high temperature, high pressure liquid. This liquid refrigerant travels through
copper tubing into the evaporator coil. There the refrigerant expands. Its sudden expansion turns
the refrigerant into a low temperature, low-pressure gas. This gas then absorbs heat from the air
circulating in the ductwork. The cooled air is then distributing back through your house or
place of business. Meanwhile, the heat absorbed by the refrigerant is carries back outside through
copper tubing and released into the outside air.

4
 Consumers’ profile: Air conditioners

The room air conditioners can be divides into two categories

1. Window air conditioners

2. Split air conditioners

Consumers for room air conditioners can be divides as

A. Household consumers: If any segment of consumer durables industry has seen rapid growth
in India in last decade, it is room air conditioners industry. With growing incomes and higher
standards of living, the demand for air conditioners has been rising in household segment. The
consumer profile is upwardly mobile urban population living in metropolitans and cities. The
household market accounts for 60 % of the window A.C. market and 40% of the split A.C.
market.

B. Industry Consumers: Government sector has been a major buyer of air conditioners in past
but demand from household sector is also increasing. A sustained GDP growth, increased
government spending and industrial activity, cheaper consumer credit etc. are driving the
demand for AC products in industrial sector.

1.1.3 ANALYSIS OF AIR CONDITIONER INDUSTRY

AC industry is operating in an environment, which has changed a lot during last few years.
Industry operates in a dynamic and complex environment. Complex, because there are numerous
factors affecting the business like government budgetary policies, eco friendliness of operation
and product part, changing lifestyles of consumers, demographics etc. On the other hand, it is
dynamic because due to rapid changes in technological front and aspects related to environment
are changing.
Political environment:

 Liberalization of economy in nineties saw the entry of a number of foreign player

 Fair amount of political stability.
 Consensus on target of higher growth of economy.
 Political consensus on economic reforms.
5
Economic environment:

 Abatement from retail price for levy of excise duty on air conditioners lowered from 35
to 30%
 Increase in excise duty of raw materials like steel from 12% to 16% will adversely affect
air conditioner manufacturers.
 With lowering of duties on newer product categories, air conditioners are now position as
a retail product. Earlier with retail price of nearly 40,000, it stood no chance against say a
CTV costing Rs15, 000.
 Industry has been seasonal in nature with four months (March to June) generally
accounting for 60-65% of total annual sales.

Social environment:

 Rising disposable income and reducing prices are slowly making ACs a necessary utility
as opposed to being view as a luxury item.
 Increased spending on lifestyle related products and the increasing SOHO segment are
increasing the demand for ACs.
 Increasing concern for environment and health consciousness will make people buy more
eco-friendly products.

Technological environment:

Product technology: The key component of air conditioners, compressor (30% of cost) is of two
types i.e. reciprocating and rotary. Rotary compressors accounting for 66% of the total market
Split ACs are major users of rotary compressors now dominate the Indian Ac market.
Rotary compressor has the advantage of being energy efficient, less noisy and abuse proof India
has two manufacturers, Tecumseh India and Kirloskar Copeland for reciprocating compressors.

Rotary compressors are presently imports from China, Malaysia, Japan and Thailand. Window
ACs range from 0.6T to 2T. They are ideal for small space like individual rooms in an office or
residence. Split Air Conditioners have good aesthetic features and indispensable in rooms
without windows.
6
Process technology: The industry intrinsically is highly capital intensive and has massive
appetite for capital cost as well as working capital while a normal 0.1-0.15 Million assembly
plant costs 500 Million (without compressor line), working capital cycle is 90 days. With high
operating costs (around 800-1000), technology especially on power savings is a key advantage
and market differentiator.

FIGURE 1: MARKET SHARE OF SPLIT AC

7
 a

CHAPTER 2: Organization Information

8
2.1 COMPANY PROFILE:
Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of Hitachi Appliance Inc.,
Japan, is a listed company at BSE & NSE exchanges. Since its inception, HHLI has focused on
developing and supplying high-quality products and technology that contribute to the overall
prosperity of the society. HHLI manufactures various kinds of products, including Room Air-
conditioners, Commercial Air-conditioners, and Chillers and into trading of VRF Systems,
Rooftops and Refrigerators.

Headquartered in Ahmadabad, Gujarat, the company's manufacturing facility at Kadi, Gujarat, is

among the ten Hitachi air conditioner facilities worldwide. With a total installed capacity of
230,000 units (in a single shift) a year HHLI is amongst the top air-conditioning companies in
India. It has a strong nationwide distribution consisting of 5 regional offices, 21 branch offices
9
 and over 200 exclusive sales and service dealers and over 1,500 sales points 33 company owned
service centers (HCS) and 600 other service points including multi brand S&S and franchisees.
HHLI has a company owned and operated 24x7-customer care Centre. At Hitachi, we believe in
simplifying life, which is why, we constantly innovate, bring in excellent technology, newer
concepts and incorporate advanced features in our products to make life comfortable.

The word "inspire" has as its etymology, the Latin preposition in and the Latin verb “spirare”,
meaning, "to breathe." As well as meaning "to breathe in," and "to encourage," it also has various
meanings associated with life itself, such as "to uplift the spirit" and "to invigorate."

Nothing was put after the word "Next" in order to inspire our stakeholders and all those that read
our Corporate Statement to imaginatively fill in the blank that follows with a word like "Era,"
"Society," "Idea," "Product," "System" or "Solution."
Having others share in the composition of our Statement is one its primary aims.

2.2 ABOUT THE COMPANY

Johnson Controls – Hitachi Air Conditioning, you can address all your air-conditioning needs faster,
smarter, and more efficiently than ever before. We have combined the rich heritage and innovative
technology of Hitachi with the industry-leading expertise and global network of Johnson Controls, so our
customers can benefit from the best of both companies. Johnson Controls – Hitachi Air Conditioning is a
joint venture company of Johnson Controls, USA, and Hitachi Appliances, Japan. Johnson Controls –
Hitachi Air Conditioning Company has a global presence, out of which “Johnson Controls-Hitachi Air
Conditioning India Limited” is its Indian unit.

Company’s Vision and Value statement:

Value

Integrity First

We promise honesty and transparency. We uphold the highest standards of integrity and honor
the commitments we make.

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 Purpose-led

We believe in doing well by doing good and hold ourselves accountable to make the world a
better place through the solutions we provide, our engagement in society, the way we do
business, and our commitment to protect people and the environment.

Customer-driven

We win when our customers win. Our long-term strategic relationships provide unique insights
and the ability to deliver exceptional customer experiences and solutions.

Future focused

Our culture of innovation and continuous improvement drives us to solve today’s

challenges while constantly asking ‘what’s next.

One team

We are one team, dedicated to working collaboratively together to create the

purposeful solutions that propel the world forward.

Vision:
Hitachi delivers innovations that answer society’s challenges. With our talented team and proven
experience in the global market. we can inspire the world. The mission Hitachi aspires to fulfill in
society.

The tagline of the company: Inspire the next

Head Office- Hitachi Complex, Karan Nagar Kadi, Dist. Mehsana – 384 440 Gujarat, India

11
2.3 PRODUCT LINE

At Johnson Controls-Hitachi, we always strive to do our best. Our customers. We offer a variety of
products that enable comprehensive treatment air conditioning requirements. Consistent with this idea,
about 69% of us the entire lineup uses inverter technology and our overall 5-star and 4-star split The AC
range is just an inverter type. With 96 SKUs, including new additions from1.25TR model and a
powerful 15mt Takeshi AC. Hitachi long airflow new lineup focuses on comfort and automation, as
well as interior enhancements an aviation experience for you. Developing energy efficient solutions
Well-considered and conscious strategy for the company and surroundings to achieve this, our inverter
AC units are equipped with iconic features and technology. For commercial spaces, Hitachi has
introduced his revolutionary VRF range. The SET FREE Sigma series has been widely accepted in the
Indian market. Considering the potential needs of first-class individual customers and luxury cafes,
Hitachi has launched a new product line called SET free mini. SET FREE mini works on the principle
of variable refrigerant flow, it offers a whole new experience for premium homes and spaces.
Customers have the advantage of having 8 huge baskets to choose from. Various indoor units, 5 types of
controllers, space-saving Available in compact ODUs with capacities from 3 HP to 7 HP

12
13
14
2.4 FEATURES OF PRODUCT

15
2.5 Marketing strategies

Innovation is at the heart of everything JCH-IN does. the sole purpose is not just to sell
16
 products to consumers but give them an excellent experience A marketing model that
specializes in providing solutions. As a consumer-centric brand, we understand that the
importance of air in our lives. the air always surrounds us It energizes us, cools us down,
warms us up. it is unpredictable and challenging at times, but when the air is in harmony
with us, everything seems much easier. That's our vision at JCH-IN Create an
atmosphere that enriches your life. With our expertise, Regulate the unpredictable air and
perfecta well-balanced "Hitachi Air" experience for customers. Harmonious and
pleasant. Exclusive offer, Hitachi Airlines fresh air, clean air, odorless air, Surround Air
and Silent Air. Hitachi air guarantees perfection Balanced indoor environment with air
conditioning Through 5 innovative technologies

The Company launched a Campaign called “Hitachi air, feel it to believe it in 2019, which was promoted
heavily on various mediums including digital, print, outdoor and retail. Special focus was given on digital

17
media and outdoor to get better brand recall amongst the target group. Our team developed 5 interesting
Videos to promote Fresh air, Clean air, Odor-free air, Surround air and Silent air as a concept and 5
technology videos to explain its benefits. These videos helped our brand to promote the concept of Hitachi
air widely. Print and retail promotion was targeted towards increasing customers attention towards our
brand and its products. Our key focus was on promoting product features and technology which benefits
the customers. These combinations of activities helped us in promoting our products in a better manner.
Company plans to improve customers’ buying experience at retail outlets and various measures are being
considered for next year

2.6 COMPETITORS

1. Daikin

Daikin Industries, Ltd. is a Japanese multinational air conditioning manufacturing company

headquartered in Osaka. It has operations in Japan, China, Australia, the United States, India,
Southeast Asia, Europe, the Middle East, Latin America, and Africa.
The primary competitor of Blue Star and another business focused on packaged and retail air
conditioners is Daikin. Although Blue Star and Daikin are both praised for their high caliber, Daikin is
thought to be the better option. Although Daikin's retail distribution network is subpar, B2B sales are
entirely under its control. In actuality, Daikin customers are not likely to switch to any other brand of
air conditioners. That is the grip Daikin has on its devoted clients.

2. O’ General

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 O General also known as Fujitsu General is a Japanese manufacturer of air conditioners with its
corporate office in Chennai. General offers a wide variety of air conditioners to meet both residential
and commercial cooling demands, including windows, split, cassette, and suitable models.

3. Voltas

Voltas is a different company that focuses on air conditioners (India is after all very hot). The best
marketer among the top three is Voltas, followed by Blue Star and Daikin. Because of this, it
consistently holds the top spot in terms of the market share for air conditioners. However, when
compared to Blue Star or Daikin, Voltas is alleged of worse quality. Voltas has expanded to include
other retail goods such as dehumidifiers, air purifiers, and air coolers.

4. Samsung

With a huge market share in both the television and smartphone industries, Samsung is the top firm in
India. Due to its wide range and diversity of smartphones Samsung is a favorite among both Sec A and
Sec C classes. This versatility is continued in Samsung's other goods, which include a variety of
televisions, refrigerators, washing machines, home theatre systems, and other appliances and consumer
19
 electronics. As a result, Samsung is among the best manufacturers of consumer goods in India.

5. L.G

Although LG makes smartphones, its market share is nowhere near that of Samsung. However, LG
dominates both the refrigerator and television markets. Even their washing machines have a reputation for
being strong and efficient. When it comes to appliances, LG has a wide variety of kitchen and home
appliances, which gives them a broad product portfolio. LG is a leader in appliances while Samsung is a
leader in electronics. Among Indian manufacturers of consumer goods, LG is ranked second.

6. Blue Star

In the fields of refrigeration and air conditioning, Blue Star is regarded as the authority. Although it offers
a wide selection of air conditioners, it is best recognized for its packaged air conditioning, retail air
conditioners, and refrigerated devices like deep freezers, dispensers, and water purifiers. Blue star has
excellent brand equity and a sizable market share in the air conditioner industry. Around the year 2010, it
made its retail debut, and even then, it has fought for the top spot in the air conditioner market with all the
major players.

2.7 Government Policy

With a pledged investment of Rs. 4,614 crore (US$ 580.6 million), 42 companies were chosen under the
PLI Scheme for White Goods as part of government initiatives. This is estimated to add 44,000 new direct
jobs. The PLI Scheme for White Goods received proposals from 19 enterprises in the second round, with
committed investments totaling Rs. 1,548 crore (US$ 194.79 million).
With the goal of empowering local businesses and self-help groups (SHGs) by integrating them into the e-

20
 commerce space, Flipkart and the Ministry of Rural Development of the Government of India (MoRD)
signed an MoU for the ambitious Deendayal Antyodaya Yojana - National Rural Livelihood Mission
(DAY-NRLM) program.
The government approved 14 businesses in July 2021 as part of the production-linked incentive (PLI)
program for IT gear. These businesses are anticipated to contribute to total production of over US$ 21.64
billion over the following four years. The government has also given the industry a boost by extending the
production-linked incentive (PLI) plan for large-scale electronics manufacturing by one year (until FY26).
A billion mobile devices worth US$ 190 billion are to be produced by 2025, according to the National
Policy on Electronics 2019, of which 600 million handsets worth US$ 100 billion are projected to be
exported.
The automatic route has been opened up by the Indian government to 100% FDI in the design and
production of electronic systems. The government plans to raise the FDI ceiling in multi-brand retail to
51% while increasing FDI into single brand retail from 51% to 100%.
The market for consumer electronics and appliances in India is predicted to grow at a 9% CAGR from
2016 to 2022, reaching Rs. 3.15 trillion (US$ 48.37 billion). By 2024–2025, the government projects that
the Indian electronics manufacturing industry will be worth US$ 300 billion (22.5 lakh crore).

2.8 ACHIVEMENTS

Awards

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 Chapter 3

2.9 SWOT ANALYSIS

Strengths:

2.1.1.1 Diversified product portfolio and balanced revenue streams.

2.1.1.2 Strong focuses on research and development.
2.1.1.3 Strategic acquisitions to strengthen market position.
2.1.1.4 Good Focus on sustainability and marketing.
2.1.1.5 Excellent global presence and top of the mind recall.

Weakness:

1. Over dependent on Japanese economy for revenue generation.

2. Due to intense competition and changing customer preference, market share is limited.
3. No promotion undertakes to target the lower class of the society.
4. Poor after sales service- very few service centers in India.

Opportunity:

1. Growth in Air conditioners, Refrigerators, LED, Washing machine markets.

22
 2. Acquisition of smaller brand and global tie-ups to increase reach.

Threats:

1. Rapid technological changes and evolving industry standards.

2. Stringent government regulations.
3. Fluctuations of exchange rate.

As a Student Promoter, we have certain responsibilities in our assigned job and the
responsibilities are
 Understand customer requirement on the Product.
 Actively demonstrate Hitachi Products.
 Handle Customer queries related to Products/Pricing/Schemes etc.
 Deliver the desired shopper experience to the consumer.
 Convert customer requirement into demand, hence sales conversion.
 Communicate daily status to Coordinator about Sales & Attendance.

2.10.1 JOB REQUIREMENTS OF SALES PERSON:

In home appliances, sales person performs face-to-face sales and customer service at a retail
store. She/he is responsible to provide each new and returning customer with all
information needed to make an educated purchasing decision. An air conditioner/refrigerator
sales professional usually reports to the store manager of that particular store. As a technical
promoter, the person should have a sound knowledge about the technologies that has been use in
the air conditioner and refrigerator. Therefore, as a student promoter who has a zeal for latest
technologies in air conditioner and refrigerator segment, we are supposed to have a clear-cut
knowledge about the technologies that has been use by the Hitachi’s differentiators.

2.10.2JOB DUTIES AND TASKS

1) Demonstrate and explain products, methods, or services in order to persuade customers
to purchase products or utilize services.

23
2) Identify interested and qualified customers in order to provide them with additional
information.

3) Keep areas neat while working, and return items to correct locations following
demonstrations.

4) Practice demonstrations to ensure that they will run smoothly.

5) Prepare and alter presentation contents to target specific audiences.

6) To be capable in Story-Telling and to identify key differences of competitor's claim.

7) Provide product samples, coupons, informational brochures, and other incentives to persuade
people to buy products.

8) Record and report demonstration-related information such as the number of questions

asked by the audience.

9) Sell products being promote, and keep records of sales.

10) Set up and arrange displays and demonstration areas to attract the attention of
prospective customers.

11) Wear costumes or signboards and walk in public to promote merchandise, services, or
events.

12) Work as part of a team of demonstrators to accommodate large crowds.

13) Suggest specific product purchases to meet customers' needs.

14) Instruct customers in alteration of products.

15) Learn about competitors' products and consumers' interests and concerns in order to
answer questions and provide more complete information.

16) Recommend product or service improvements to employers.

17) Fully be aware of Target and track weekly achievement Vs. Target in both Unit and Amount.

18) Work with customers to present them the benefits and competitive advantage of products.
24
 2.10.3 JOB ACTIVITIES
1) Performing for or Working Directly with the Public -- Performing for people or
dealing directly with the public. This includes the Retail Sailing Solutions:

 Build Relationship
 Connect
 Explore
 Create Experience
 Close

2) Selling or Influencing Others -- Convincing others to buy merchandise/goods or to otherwise

change their minds or actions.

3) Communicate with Persons outside Organization -- Communicating with people outside the
organization, representing the organization to customers, the public, government, and other

external sources. This information can be exchange in person, in writing, or by telephone or e-

mail.

4) Establishing and Maintaining Interpersonal Relationships -- Developing constructive and

cooperative working relationships with others, and maintaining them over time.

5) Interpreting the Meaning of Information for Others -- Translating or explaining what

information means and how it can be uses.

6) Organizing, Planning, and Prioritizing Work -- Developing specific goals and plans to
prioritize, organize, and accomplish your work.

7) Handling and Moving Objects -- Using hands and arms in handling, installing, positioning,
and moving materials, and manipulating things.

2.10.4 JOB SKILLS

1) Speaking -- Talking to others to convey information effectively.
25
 2) Persuasion -- Persuading others to changes their minds or behavior.
3) Active Listening -- Giving full attention to what other people are saying, taking time
to understand the points being made, asking questions as appropriate, and not interrupting
at inappropriate times.
4) Social Perceptiveness -- Being aware of others' reaction and understand why they react as
they do.
5) Instructing -- Teaching others how to do something.
6) Critical Thinking -- Using logic and reasoning to identify the strengths and weaknesses
of alternative solutions, conclusions or approaches to problems.
7) Active Learning -- Understanding the implications of new information for both current and
future problem-solving and decision-making.
8) Learning Strategies -- Selecting and using training and instructional method and procedure
appropriate for the situation when learning or teaching new things.
9) Complex Problem Solving-- Identifying complex problems and review relates information to
develop and evaluate options and implement solutions.
10) Service Orientation -- Actively looking for ways to helps customers.

2.10.5 JOB ABILITIES

1) Speech Clarity -- The ability to speak clear, so others can understands you.

2) Oral Expression -- The ability to communicate information and ideas in speaking so

others will understand.

3) Oral Comprehension -- The ability to listen to and understand information and ideas
presented through spoken words and sentences.

2.10.6 JOB KNOWLEDGE, EXPERIENCE, EDUCATION

1) Sales and Marketing -- Knowledge of principles and methods for showing, promoting,
and selling products or services. This includes marketing strategy and tactics, product
demonstration, sales techniques, and sales control systems.

2) English Language -- Knowledge of the structure and content of the English language
26
including the meaning and spelling of words, rules of composition, and grammar. Knowledge of
the National language “Hind”& other regional languages can also be helpful for promotion and
selling of the product.

3) Education and Training -- Knowledge of principles and methods for curriculum and training
design, teaching and instruction for individuals and groups, and the measurement of
training effects.

4) Communication and Media-- Knowledge of media production, communication, and

dissemination techniques and methods. This includes alternative ways to inform and entertain via
written, oral, and visual media.

2.11 JOB DESCRIPTION AT HITACHI

Pre SIP Induction:

Before going to the job, the student promoters were given training for 1 days regarding
the specifications of each and every air conditioner and refrigerator of Hitachi. The trainer was
an experienced trainer from Hitachi India Pvt. Ltd. who also made us to perform role-plays to
have a better understanding of the roles & responsibilities of a promoter in a retail outlet.

Week 1:

On the job in very first week, my head promoter helped me to understand more about the
Hitachi products. He also taught me to how to give a demo to a customer. My senior helped me
in selling “Summer QC” window AC, as it was my 2nd day in store. I sold 15 AC in 1st week.

Week2:

The sales in 2ndweek was not dramatically increase as on that particular week Hitachi
launched free installation skim with free stabilizer with Hitachi AC. And it really effected the
sales of Hitachi AC . I managed to sold 15 air conditioner only in the weekend and totally 25
AC in the 2ndweek including the model of window AC like “Summer TM”, “Summer QC”,
“Kaze plus” and split AC like “Ace cutout”, “Kaze plus”.

27
Week 3:

In the 3rdweek, I changed the showroom as my HR ordered me. I was shift from “Sargam
Electronics”, Adarsh Nagar to “Lamba Electronics”, Kalkaji. It was a “Hitachi Home”.
Therefore, products option of Hitachi was more than previous one. In Hitachi Home most of the
Hitachi products available. It was again a new learning for me. My responsibilities in Hitachi
Home were more than previous ones. Here, I took care of installation, customers complain and
stocks. The sales in 3rd week were not that good. I managed to sell 18 AC in that week.

Week 4:

In 4thweek again sales was not good. However, in that week I sold one of Hitachi’s most upgrade
AC “Ace Followme” worth of Rs47500 and I sold a refrigerator i.e. “French Bottom Freezer
Series” worth of Rs59000.It was my first sale in case of Refrigerator. I was highly appreciated by
the Store Manager and the Head Promoter. This week I practically learnt how to manage
under uncertainty as I was handling 3 to 4 customers at a time. In 4th week, I managed to
sell 15 air conditioner and 1 refrigerator.

Week 5:

From 5thweek, the sales again gradually started moving up. The demand became so high that
even our store was running out of stock in some of the models especially like “Ace cutout”, “Ace
inverter”, “Kampa”, “Kampa Inverter”, “Ace Reidan”. Therefore, we started taking advance
booking for those models so that we do not lose our potential customers. In that week, Hitachi
launched one of its upgrade models i.e. “Kaze Alpha” which was Hitachi’s only Display AC. So
demand of “Kaze Alpha” model growing dramatically. In that week I also managed, sold some
new model of AC like “Kampa”, “Kampa Inverter”, “Ace Inverter” and “Ace Reidan”.

Week 6 & Week 7:

From the 6th week, the sales never looked back and it continuously started moving up. Once
again I sold the two higher end refrigerator under “French Bottom Freezer series” that is R-
WB480PND2 & “Solfege series” that is R-SG37BPND. By this time, I was perfectly able to
apply the retail sailing solutions to each. This time I attended phone call and handled customer
complain. This was inspiring as because I was able to build customer relationship for my work
28
place. During the 7thweek, I was able to sell more than30 AC.

Week 8:

As this was the last week of my summer internship program I started preparing my report based
on my experienced and potential learning from the entire 8 weeks. In the 8th week, I sold 25-
air conditioner and 2 refrigerators that made a grand more than 200 AC and10 Refrigerators in
8 weeks’ period.

29
CHAPTER 3: LITERATURE REVIEW

30
Reichheld, 1996; Chaudhuri & Holbrook, 2001; Chiou & Droge, 2006, have corroborated in their
research that Customer Loyalty helps increase exclusive price sales, boost the market share, and reaps
good profits for the company.

Ho et. al., (2009), with intensified competition at the time of the economic recession, several companies
are building or enhancing their customer loyalty programs to prevent customer deflections.

Hasounet and Alqeed (2010:51), define Customer Loyalty as the extent to which customers have the
propensity to remain associated with an organization and continue to ignore competitors’ products. To
retain customer loyalty, the customers must be continuously kept satisfied. If the company fails to
achieve customer standards, there will be eventual customer dissatisfaction with the product/service.
This is because customer loyalty originates from the roots of satisfaction of the customers essentially
(Zeithami, Bitner & Gremler, 2006).

Khan’s, 2012, definition focuses on the customer motive to buy products repeatedly and maintain a
mutually satisfying relationship with the company. So, it is the recurring purchase from a particular
company and referring to personal associations through word-of-mouth promotions. However, there
should be some perceived lucrative value in the product to make the customer re-purchase the product
over some time without going for competitor products and services. Wijaithammarit &
Taechamaneestit, (2012) has stated that good customer experience management results in customer
satisfaction and leads to retaining customer loyalty.

(Rauyruen & Miller, 2007), in a way, the companies can increase revenues by offering good quality
products and services. It needs to be mentioned that while we consider relationships as a major variable
strengthening customer loyalty, they independently cannot make the customer loyal (Plessis & Roberts-
Lombard, 2013).

The Customer Framework Ltd, 2011-2013; Woodcock, et al., 2003; Baron, et al., 2010 suggest that
CRM should be substituted by customer management (CM) or rather relationship management (RM).

Robert Witt (2000) discussed in his research that usually CRM academic threads highlight three
essential components: the customer, the relationship dynamics, and the overall management. Academic

31
 literature reflects different theories and insights about the CRM framework Some other elements to
mention are:

Sinkovics and Ghauri (2009) write about the importance of involving customer relationship management
to connect with steep costs of direct sales activities, cut-throat competition in the global arena, information
related to business, and the dimensions of the consumer behavior-all which that can be used to get more
profitability, sales, and productivity.

Agrawal (2003) described CRM as a perspective that pursues customers once they are attracted, keeps
them, and incurs profits from their growth. CRM is a strategic response to the stiff competition that has
resulted in low profits and low loyalty levels. CRM has paved the way to make companies more customer-
oriented by the use of updated technology in business and enriching the value to the customers which
triggers greater revenues and returns for the organizations.

Raab et al (2008) have stated correctly that CRM is a management philosophy that has it focuses on the
approach of the organization toward prevailing and prospective customer relationships Mueller (2010)
characterizes CRM as vital and highly in a state of flux; hence businesses have to adopt a proactive
strategy in the various policies and measures to sustain a competitive edge in the industry.
Li et al. (2018) reveal that uncertainty, identity attractiveness, and switching costs of omnichannel
retailers partially mediate the effect of cross-channel integration (CCI) on customer retention while fully
mediating the relationship between CCI and interest in alternatives, and also uncovered that customer
showrooming strengthens the negative relationship between CCI and retailer uncertainty. Service quality
and personalized attention is the most important factor followed by high cost of repair and time taken in
servicing, according to industry experts, but from the customer's point of view, service quality and
personalized attention are most important, followed by time taken in servicing and workshop timing
(Kumar et al., 2017). Time taken in servicing, service quality and personalized attention, workshop timing
and low customer awareness of warranty benefits are cause factors according to industry experts, but
customer opinions are that careless attitude is also a cause group factor,

not low customer awareness of warranty benefits (Kumar et al., 2017).

Chen et al. (2017) reveal that the attributes of price and discount, personal selling and customer
relationship have significant impact on likelihood of customer retention, satisfactory price and discounts
32
are a necessary attribute to support the likelihood of customer retention, and satisfactory personal selling is
the most important attribute for increasing the likelihood of customer retention. Bahri Ammari & Bilgihan
(2017) show that distributive justice moderates the relationship between satisfaction with the loyalty
program and relational satisfaction and highlight the need to focus on distributive justice in order to
nurture satisfaction and loyalty, satisfaction with the loyalty program is a key predictor of a satisfactory
relationship with the operator and customer retention.
C. W. Chang & Zhang (2016) found that an offline (retail-store) channel can be used to migrate
customers from an inactive state to an active state, effectively serving the purpose of ―education‖ or
―revival,‖ whereas an online channel is most effective in keeping the existing active customers active,
thus serving the purpose of ―retention‖. Vogel & Paul (2015) show that channel-based price
differentiation positively affects customers through perceived value but harms retention through price
unfairness and limited self-determination.
Fader et al. (2018) found that even when aggregate retention rates are monotonically increasing, the
individual-level churn probabilities are unlikely to be declining over time, as conventional wisdom would
suggest. Osakwe & Anaza (2018) reveal the use of both traditional and digital marketing resources is
associated with higher organizational performance, and customer retention efforts implemented by a firm,
along with brand promotional tactics, increase not only firm profitability but also customer loyalty.
Osakwe & Anaza (2018) also extend past findings by theoretically integrating firm size as a segmentation
tool used to further evaluate the role of marketing resources on organizational performance and confirm
that enterprise size is a significant moderator when explaining the relationship between customer retention
orientation and e-brand promotion.
Rackham, et. al. (1971) studied whether some individuals interact more successfully than others because
they are more skilled -- "they either do certain things that others do not, or they do them better." While
admitting that personality and aptitude factors account for some differences, they found that interpersonal
skills, which they classified as "interactive behaviours," could be influenced more readily. (The spelling of
the term reflects the British origin of Rackham and his associates.) They defined an interactive behaviour
as "one which involves two or more people in such a way that the behaviour of one person may influence
the behaviour of others." This definition also describes the desired individuals who are expected to
influence the behavior of customers in favor of retaining their accounts. 

33
Paul Harrison and Robin Shaw, ( 2014 )have contributed ―Consumer Satisfaction and Post-Purchase
Intentions‖. An Exploratory Study of Museum Visitors. This paper examines
the dating among purchaser delight and next intentions withinside the museum context in addition to the
moderating have an impact on of demographic traits such as gender, age and training in that dating.
The dating among delight and more than a few carrier elements, normal delight with the enjoy and
intentions became investigated. Museum entrepreneurs can earnings by inspecting the 'Value chain" of
museum enjoy mentioned withinside the model presented, in
particular the extra probability of purchasers recommending the enjoy to others than creating a repeat go
to themselves, and by investigating phase variations past the ones suggested here.

Sudarshan R . and Sridhar, ( 2013 )have conducted ―Impact of Consumer Involvement of Buying

Decision - A Conceptual Frame-Work. Consumer involvement refers back to the depth of hobby with
which purchasers method the market place. It is associated with the purchasers ‘values and self-
idea which have an impact on the diploma of private significance ascribed to a product
or scenario purchaser involvement varies Krishna throughout exclusive individuals,
product, manufacturers and situations.

Nagarajan.R and P.Pinakapani - Effects of retailer brand equity on customer retention and the
mediating role of customer satisfaction (2017); (Krishnan. R 2015) Raaghav R. (2016) found that
customer loyalty mediates the impact of management quality on customer engagement. Govindaraj G,
(2014) confirmed the interim work to meet the quality of management and customer loyalty in the retail
banking area. Furthermore, Rajalakshmi (2014) found that in the Chinese doll industry, there is a middle
ground of fulfillment in the link between brand equity and customer trustworthiness. Furthermore,
SaiPrasad, M (2008) has further stated that the influence of management quality on customer reliability
mediates customer loyalty in the support business. Customer loyalty stands out among the most frequently
analyzed items in the exhibition (Klee, 1997). For example, consumer loyalty has been studied at both the
manufacturer level and the retailer level (Janardhanan, 2015). Be that as it may, little research has looked
at the outcomes of consumer loyalty either (Yadhav 2011). For example, it is not clear from current

34
copywriting whether consumer loyalty is linked to an elusive resource, e.g. B. the brand equity related. In
particular, the links between consumer loyalty and retail brand equity are not made appealingly clear.

Chapter IV- Research Methodology

35
Objective of the study:
The purpose of this study is to research internal and external influences on customers getting selections on
cooling .

 ·Understand client demand on the merchandise.

 ·Actively demonstrate Hitachi Products.

 ·Handle client queries concerning Products/Pricing/Schemes so on

 ·Convert customer requirement into demand, thus sales conversion.

 ·Measuring that may complete influence purchase decision.

Sources of information

Data collection is that the systematic approach to gathering and measuring information from a spread of
sources to induce a whole and accurate picture of a part of interest. Data collection enables an individual
or organization to answer relevant questions, evaluate outcomes and make predictions about future
probabilities and trends.
Various common data collecting instruments are utilized in this research are:
•Research papers
•Articles
•Journals
•Magazine
•Newsletter
The information was gathered with the assistance of Internet. The sources of knowledge would be
previous research papers, Journals, Bloggers and Government websites.

36
SAMPLE SELECTION

The next issue is the sampling procedure. Because this is a cross-sectional study, it will take less time to
complete. In addition, the research has limited time and financial resources. Convenience samples are
generally the least expensive and easiest to carry out. Convenience sampling is most commonly used
during the exploratory phase of a research project and is possibly the best way to quickly and efficiently
obtain some basic information. To collect data, convenience sampling is used.

DATA COLLECTION

Data collection is the process of gathering and measuring information on targeted variables in an
established systematic way which then enables one to answer relevant questions, test hypothesis and
evaluate outcomes. For this I have taken 115 sample size from the population by MS Excel.

Data Collection Method:

There are two sources of data for research, namely primary and secondary data. The primary data is
relevant to the present study and usually collected through communication methods or interaction
with respondents and observation methods. For this kind of data, survey techniques are to be used to
answer the research
questions, which are based on a structured questionnaire. Secondary data is gathered from previous
studies through various sources such as articles, internet, organization’s database, government
surveys and enterprises etc. The advantage of secondary data is time saving and inexpensive in
comparison with primary data.
However, secondary data may not suitable to specific research since they are conducted for
another study with different objectives (Ghauri & Gronhaug, 2007); in other words, they are
universal for mass audiences.

Therefore, secondary data should be used as reference tool for the first step before proceeding to the

37
actual research.

For this research, primary data is collected in accordance with the research phenomenon and
design. Since this research is supposed to investigate the constructs of customer retention for
Johnson Controls-Hitachi India Ltd. geographic dimension, primary data was consistent with the research
purpose.

The use of primary data from the survey is logical access to interviews and to get information from
targeted respondents. The use of questionnaire is suitable in order to interact with respondents to
get structured information and to find out consumer satisfaction level from their perspectives. Data
collection is conducted through interactive interviews and telephonic calls to the customers of Johnsons
control-Hitachi air conditioning India Ltd. in Noida.

Descriptive and Exploratory Research

This study is both descriptive and exploratory in nature as this study is concerned about describing,
recording, analyzing and interpreting the composition or process of phenomena which focuses on
prevailing conditions or how a person or group behaves. The objective of the exploratory research is to
gain insights and ideas which are used in this project.

Instrument used
For this research I have used:
MS Excel: The Excel spreadsheet app lets you create, view, edit, and share your files with others
quickly and easily. Create spreadsheets, data analyses, charts, budgets and more while you view and
edit workbooks attached to email messages.

The Best use of MS Excel Software are:

1. VLookup Formula
2. Concatenate Formula
3. Text to Columns

38
 4. Remove Duplicates
5. Pivot Tables

Kaggle: Kaggle is used to publish data sets, study and create models in a web-based data-science
environment and also used this for converting data from characterized data to numerical data to work on
some data analytical tools.

Google form: I have used google form to collect the data from the market to create some insights for the
company.

Content Management System (CMS) - Module for managing and upgrading the Open Government Data
Platform India Platform's many functions and content kinds.

Communities - A module that allows community members to engage and share their enthusiasm and
viewpoints with others who have similar interests.

39
CHAPTER 5: Data Analysis &
Interpretation

40
 ANALYSIS

5.1 AIR CONDITIONERS

TABLE 1: PREFERRED BRAND OF AIR CONDITIONER

Frequency Percent Valid Percent Cumulative Percent

Voltas 16 40.0 40.0 40.0

Hitachi 9 22.0 22.0 62.0

Samsung 2 5.0 5.0 67.0

Valid LG 2 5.0 5.0 72.0

O General 5 13 13.0 85.0

Others 6 15.0 15.0 100.0

Total 40 100.0 100.0

Preferred Brand
Others 15%

O General Voltas
13% 40%
LG
5%
Samsung 5% Hitachi
22%

FIGURE 3: PREFERRED BRAND OF AC

41
This figure shows the strongest point of Voltas i.e. brand preference. Voltas scored a whopping
40% points when it came to brand preference.

The other two brands, which are faring well in terms of brand preference, are HITACHI (22.5%)
and O GENERAL (12.5%). Voltas has always stressed on aggressive marketing and have hefty
advertising budgets and now Voltas has its new game plan of Big Bang strategy. Hitachi high
score can be attributing to innovative advertisements and high-end technological features.

TABLE 2: PREFERRED PRICE RANGE WHILE BUYING AN AC

Frequency Percent Valid Percent Cumulative

Percent

Rs.15000-25000 6 15.0 15.0 15.0

Rs.25001-35000 19 47.0 47.0 62.0

Valid Rs.35001-45000 11 28.0 28.0 90.0

Rs.45001 and above 4 10.0 10.0 100.0

Total 40 100.0 100.0

Preferred Price Range

Rs.15000-25000 Rs.25001-35000 Rs.35001-45000 Rs.45001 and above

10%

15%
28%
47%

FIGURE 4: PREFERRED PRICE RANGE IN TERMS OF BUYING AN AC

42
Most of customer prefers Rs. 25001-35000.In these price ranges most of option available for
Voltas that is main reason customer are mainly prefer Voltas compare to other brands. In case of
Hitachi, price range is quite high compare to its competitors.

TABLE 3: TYPE OF AC PREFERRED

Frequency Percent Valid Percent Cumulative Percent

Window 22 55.0 55.0 55.0

Valid Split 18 45.0 45.0 100.0

Total 40 100.0 100.0

Type of AC

Split
45%

Window
55%

FIGURE 5: PREFERRED TYPE OF AC

Mainly in Delhi customer are prefer window ac compare to split ac. In earlier days ratio of
window to split was quite high, but in current scenario people are also prefer split. This figure
shows that different of window AC (55%) and split AC (45 %) is not too high.

43
 TABLE 4: PREFERRED CAPACITY OF AC

Frequency Percent Valid Percent Cumulative

Percent

Less than 1 ton 1 2.5 2.5 2.5

1.0 ton 8 20.0 20.0 22.5

1.2 ton 4 10.0 10.0 32.5

Valid
1.5 ton 22 55.0 55.0 87.5

2.0 ton 5 12.5 12.5 100.0

Total 40 100.0 100.0

Capacity of AC
Less than 1 ton 1.0 ton1.2 ton 2% 1.5 ton2.0 ton

13%
20%

10%

55%

FIGURE 6: PREFERRED CAPACITY OF AC

People of Delhi mainly prefer 1.5 tonnages AC because of room size. Customer gets most of the
products option in 1.5 tonnage class AC.
44
Tonnage Class Efficient in Square ft. area

Less than 1 ton Less than 100 square ft. area

1 ton Around 100 square ft. area

1.2 ton Around 120 square ft. area

1.5 ton Around 150-180 square ft. area

2.0ton Around 200 square ft. area

TABLE 5: KEY FACTORS CUSTOMERS LOOKS FIRST WHILE BUYING AN AC

Frequency Percent Valid Percent Cumulative

Percent

Features 9 22.5 22.5 22.5

Price 8 20.0 20.0 42.5

Design 6 15.0 15.0 57.5

Valid
Color 4 10.0 10.0 67.5

Service 13 32.5 32.5 100.0

Total 40 100.0 100.0

45
 Key Factors

Service Features
33% 22%

Price 20%

Color
Design
10%
15%

FIGURE 7: KEY FACTORS WHILE BUYING AN AC

This figure clearly suggests that people are more concern about service. People are mainly
looking for after sales service. Features and price are also two important issues while buying
air condoners.

TABLE 6: RELATIONSHIP BETWEEN GENDER AND KEY FACTORS WHILE BUYING

AN AC

Key factor Customers looks first while buying an Total

AC

Features Price Design Color Service

Male 7 7 3 3 9 29
Gender
Female 2 1 3 1 4 11

Total 9 8 6 4 13 40

46
 10

6
Male
4
Female
2

0
FeaturesPriceDesignColorService

FIGURE 8: RELATIONSHIP BETWEEN GENDER AND KEY FACTORS WHILE BUYING

AN AC

Chi-Square Tests

Value Degree Asymptotic

of Significance(2-
freedom sided)
Pearson Chi-Square 2.634a 4 .621

Likelihood Ratio 2.626 4 .622

Linear-by-Linear Association .413 1 .520

N of Valid Cases 40

This figure suggests that female customer is mainly concern about design and colors. On the
other hand male customers mainly concerns about features, price and service while buying air
conditioners. Here Chi square value .621>.05, so there is no significant relationship between key
factor and gender.

47
 TABLE 7: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS
PERFORMANCE

Rate of customer preferable brand compared to its

nearest competitors on basis of performance

Poor Satisfactory Good

Voltas 1 11 4

Hitachi 0 6 3

Samsun 0 1 1
Preferred Brand
0 2 0
g LG
0 3 1
O
2 4 0
General
3 27 9
Total Others

48
 Rate of customer Total
preferable brand
compared to its nearest
competitors on basis
of performance

Excellent

Voltas 0 16

Hitachi 0 9

Samsung 0 2
Preferred Brand
LG 0 2

O General 1 5

Others 0 6

Total 1 40

Chi-Square Tests

Value Degree Asymptotic

of Significance (2-sided)
freedom
Pearson Chi-Square 17.173a 15 .309

Likelihood Ratio 14.744 15 .470

Linear-by-Linear Association .858 1 .354

N of Valid Cases 40

49
50
 12

10

6 Poor

4 Satisfactory
Good
Excellent

0
VoltasHitachi SamsungLGO General Others

FIGURE 9: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS

PERFORMANCE

Performance level of Hitachi is good compare to its competitors. Customers are mainly prefers
Hitachi as a brand because of performance. Performance of O General is also good compare to
its competitors. Chi square value .309>.05, so there is no significant relation between preferable
brand and performance rate of that brand.

51
TABLE 8: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS VALUE
ADDED SERVICES

Value added services

Services Product option Price range Extra features

Voltas 2 2 11 1

Hitachi 0 0 4 5

Samsung 0 1 1 0
Preferred brand
LG 0 1 1 0

O General 0 0 2 3

Others 0 1 5 0

Total 2 5 24 9

52
 Chi-Square Tests

Value Degree Asymptotic

of Significance(2-
freedom sided)
Pearson Chi-Square 22.468a 15 .096

Likelihood Ratio 23.675 15 .071

Linear-by-Linear Association .595 1 .440

N of Valid Cases 40

12

10

8
Services
6
Product option
4
Price range
2 Extra features

0
VoltasHitachi SamsungLGOOthers
General

FIGURE 10: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS VALUE

ADDED SERVICES

Here customers been asked to rate the brands in terms of features or technology. As is very clear,
Hitachi is enjoying a clear sweep as far as this parameter is concerned. There is no significant

53
difference among the scores of other brands. That is why Hitachi is consider for income group

54
Rs.20000-30000 and is a high product with features like auto climate and digi-logic. It can easily
make out from this figure that product features are not an order winner today.

Barring Hitachi, they are more or less same. As far as Samsung and L.G. scoring above Voltas,
are concern it can be attribute to more spending on advertisements and marketing gimmicks.
Compare this figure with the sales one, it can be safely inferred that other factors like brand
awareness, price are enjoying more weight age in the purchase decision of customers. That is
why companies like L.G., Voltas etc. are beating them in sales due to low price and more
penetration.

TABLE 9: COMPARATIVE RANKING OF AC COMPANIES

Parameters RANKS…1,2,3,4

After sales service L.G. Samsung, Voltas, Hitachi

Brand preference Voltas, Hitachi, Samsung, L.G.

Product features Hitachi, L.G, Samsung, Voltas

Margins Hitachi, Voltas, Samsung, L.G.

Order servicing L.G, Samsung, Voltas, Hitachi

Sales team visit L.G, , Hitachi, Voltas, Samsung

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 DATA INTERPETATAION

Age:

INTERPETATION:
As you can see that in above graph most of the responses came

from age 23 and its showing interest in youngster towards the AC.

56
Gender:

INTERPETATION:

Here we can easily see that male audience are more than female approx 57% of men who give their responses.

57
 Which brand of AC you are currently using

INTERPETATION:

As we can see in above pie chart that hitachi brand is more available rather than any other products at least 30% are
using hitachi brand.

58
Which brand do you prefer in future

INTERPETATION:

In above chart we can see that hitachi would be the preferred brand rather than all competitors brand approx 33%
audience preferred hitachi brand.

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What price will you pay for your preferred AC in future

INTERPETATION:

In this above graph we can see that the affordable brand price for a customer is in between 38 to 45 thousand for
purchasing of AC

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What is the capacity of your current Ac

INTERPETATION:

In above pie chart we can see that exact 68% audiences have 1.5 tonn AC in their home and after that they
have 1 tonn AC .

61
Which factor you consider while buying a AC

INTERPETATION:

In above pie chart which clearly showing that brand is matter for every customer while purchasing a
particular product and also they also go with brand rather than star rating of the product.

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What should be the capacity of your AC in future

INTERPETATION:

As we see that in future customer would go with 1.5 tonn of AC while purchasing it approx 49% will go 1.5 tonn
AC.

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Which Store do you prefer to buy AC

INTERPETATION:

In above pie chart we can see that TATA croma is suitable or preferable for purchasing a AC in a
particular store at 43% says TATA croma.

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More Star less Energy Consumption In Air Conditioning

INTERPETATION:

In above pie chart its showing that most of the audiences are agree with more star less energy
consumption in AC approx 45% audience saying that from the above pie chart.

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66
LEARNING OUTCOMES

 On-the-job training helped me to know about the air conditioners and refrigerators
industry and in particular Hitachi Company. Hitachi is one of the top brands in India.
This industry truly inspired me to work upon this project.
 On-the-job training helped me to improve upon my inter-personal skills and has really
boosted up my confidence level to speak to the unknown customers and even to a
higher authority people from the society.
 How to handle stock and customer’s calls is also the major learning from the project.
 How to handle more than four or five customers at a time and to answer their query at the
same time taught me a lot regarding how to handle customers efficiently.
 Details of the product: This training gives me enough understanding regarding the
specifications of each and every product, which helped me a lot in comparing
Hitachi with other brand whenever asked by any of the customer.
 During my summer internship, it gives me many chances to learn various thinks
regarding consumer behavior in retail outlets while selling an AC or Refrigerators.
 Summer internship gave me the opportunity to relate all my theoretical learning to
the practical aspects which was indeed great and fruitful.

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RECOMMENDATIONS &
FINDINGS

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5.1 FINDINGS

After interacting with customers, it can be analyze that though Hitachi has improved in certain
areas, like top of the mind recall, distribution network and brand awareness still a lot of work
needs to be done.

 The major findings that emerged from the analysis were that Hitachi ranked second in
brand preference in case of air conditioners but ranks lower in after sales service,
ordering and sales team visit.
 In case of refrigerators, people are still not aware of the brand.
 Most of the customers who prefer Hitachi, they are mostly are premium customers.
 Customers prefer Hitachi as a brand because Hitachi gives some adding features compare
to its competitors.
 In Home appliances, industry service is the most important thing, because most of the
customers look for after sales services.
 Retailers as well as customer were also not satisfied with the sales force visit of Hitachi.
 After Sales Service of Hitachi is rate as poor by most of the customers.

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5.2 RECOMMENDATIONS

 Supply side can be improve by keeping a proper capacity cushion especially in March to
June since 60-65% of sales occur in this period. Company need to make sure that there is
no dearth of supply, which will also help organization to shred its laid-back image.
 Attractive displays should be place at the retail outlets to create a distinction with other
brands. This will help Hitachi build strong brand equity at store level.
 The number of retail counters should be increase substantially to increase Hitachi’s
penetration.
 Company can organize a retailer meet regularly, which will increase their interaction with
company officials.
 The frequency of sales team, which visits to the outlets, should be increase substantially
so that things can be sort out on the spot.
 Proper margins and incentives should be giving, so that intermediaries can facilitate long-
term relations.
 Make Service/ franchisee networks stronger.
 Company should launch some lower price range product, which can be affordable by all.

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LIMITATIONS & CONCLUSIONS

71
LIMITATIONS

 Duration of two months was not enough for an in-depth study of issues.
 Biases might have crept up on the part of the customers while giving answers.
 Absolute sanctity of data can be a cause of concern as many retailers did not ponder
much over giving points, ranks etc.
 The sample size for customers was small due to time constraint
 The analysis, findings and results are limited to Delhi market only that might not have
reflected true picture of entire Indian market.

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CONCLUSION

Based on above findings you can conclude that Hitachi has improved itself in brand awareness
among retailers and customers but it is yet to surpass Voltas in that respect. Also sales team
visits, ordering and after sales are areas of concern that can cause great loss to the company in
future. Hitachi also need to redesign its marketing strategies and improve its pricing strategy for
dealers in order to make a success in India .If Hitachi improves the services & incentive scheme
for dealers, then there are good chances of a grand success, as the Indian air conditioner market
is growing very fast . Finally we can conclude that the success (or Sales) of Hitachi AC is
dependent on after sales service & incentives provided to dealers as they are the ones who push
your brand. Indian customers will not buy it just because it is their brand; but they expect value
for money and satisfaction

73
BIBLIOGRAPHY AND REFERENCES

74
 BIBLIOGRAPHY AND REFERENCES

Books:

 Philip Koltler etal., “Marketing management”, Pearson Education

(13thEdition)
 Ries Al, Ries Laura(2000), “22 Immutable laws of marketing”, Harper Collins
Business (7thEdition)
 Ries Al, Trout Jack(2005), “Positioning the battle for your mind”, McGraw Hill
Book Company (8th Edition )
 Chawala,Sondhi, “Research Methodology”, Vikas Publishing House Pvt.
Ltd(3rd Edition)

Newspapers:

 The economics times(Brand Equity),3rd page,24th June 2014

 The financial express,2nd page,25th June 2014

Web sites:

 http://en.wikipedia.org/wiki/Brand
 http://www.afaqs.com/
 http://indiabudget.nic.in/ub2012-13/cust.htm
 http://www.equitymaster.com/
 http://www.hitachi-hli.com/

 Rukhsana Gul Gilal, Dr Rehman Gul Gilal, Dr Niaz Ahmed Bhutto,“Determinants of customer

75
 satisfaction and retention of Business and Management Sciences Vol. 1 No. 12 [107-112] ISSN: 2047-
2528.
 Rahim Ajao Ganiyu, Ignatius Ikechukwu Uche, Adeoti Olusola Elizabeth,(2012), “Is Customer
Satisfaction an Indicator of Customer Loyalty?”Australian Journal of Business and Management
Research (October-2012) Vol.2 No.07 [14-20],ISSN:1839-0846.
 Sudhamsetti.Naveen, M.Venkataramana,(2014), “Customer Relationship Management: Overview and
emerging principles”. International Journal of Scientific and Research Publications,(May 2014) Volume
4, Issue 5. ISSN.
 Moss, Nicola: “Strategies for Customer retention”, LIMR’s Market facts quarterly 27, $ ( Fall 2008): 4-7.
 Ranaweera, Chatura, Prabhu, Jaideep (2003): “The influence of satisfaction, trust and switching
barriers on customer retention in a continuous purchase setting” Journal of service Management 14, ¾
(2003): 374-395.
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1994): 51
 Ginn, John, Stone, Merlin, Ekinci, Yuksel (Oct-Dec 2010): “Customer retention management in the
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 Gupta,Sumeet;Jain,Kavita;Jain,Divya(2009): “Customer Retention Strategies for Organized Retailers
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 Banker,Rajiv D;Mashruwala,Raj; “Journal of Consumer Satisfaction, Dissatisfaction and Complaining
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 Courtis,Tamilla;Abratt,Russell;Dion,Paul;Rhoades,Dawna; “Customer satisfaction, Loyalty and

repurchases: Some evidence from apparel consumers”Review of Business 32.1(Winter 2011/2012):47-
57. ISSN 00346454
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1994);51. ISSN 1089537X
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 11(Aug 1999): 45-49. ISSN 07300212
 Weinstein, Art,(2002): “ Customer specific strategies—“Customer retention: A usage segmentation and
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ANNEXURE

Which brand of AC you are currently using

 Hitachi
 O general
 Mitshubishi
 Daikin
 Lg
 Voltas
 Other

Which brand do you prefer in future

 Hitachi
 O general
 Mitshubishi
 Daikin
 Lg
 Voltas
 Other

What price will you pay for your preferred AC in future

 15000-25000
 25001-35000
 35001-45000
 45001 and above

What is the capacity of your current Ac

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  Below 1 ton
 1 ton
 1.5 ton
 ton
 Above 2.5 ton

Which factor you consider while buying a AC

 Brand
 Design
 Price
 Warranty
 Star Rating
 Other

Give the option you will buy

 Inverter AC
 Non Inverter
 Convertible AC
 Other

What should be the capacity of your AC in future

 Below 1 ton
 1 ton
 1.5 ton
 2 ton
 Above 2 ton

Which Store do you prefer to buy AC

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  TATA Croma
 Reliance Smart
 Vijay Sales
 Other
More Star less Energy Consumption In Air Conditioning
 Strongly Disagree
 Disagree
 Neutral
 Agree
 Strongly Agree

80