Carrier Ac

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A

PROJECT REPORT

ON

“ Market Study of Carrier Air conditioner in

Comparison with other Brands”

In partial fulfillment in award of MBA TWO YEAR FULL TIME PROGRAMME

Under the guidance of

Faculty Guide Company Guide

Mr. RAMAN SRIVASTAVA Mr. UDAY PRATAP SINGH

Faculty-Management Manager

SCERT SAGAR AIRCON SYSTEM

Submitted by

DEEPAK AGARWAL

MBA 3rd SEM

ROLLNO.-1228170004



2



CONTENTS

Chapter No. Particulars Page No

1 Executive Summary

2 Critical Review of Literature

3.0 Research Methodology

3.1 Primary Objective(s)

3.3 Research Design

3.4 Sample Design

3.5 Scope of the Study

3.6 Limitations

4 Company Profile

5 Industry Profile

6.0 Data findings

6.1 Analysis

7.0 Recommendations

7.1 Conclusions

8 Bibliography

9 References

10 Case Study

11 Appendix and Annexure

3



CHAPTER 1

EXECUTIVE SUMMARY

This is the project about profiling the brand personality of air conditioner brands. The project involves the study of the whole Air Conditioner market. In this study we havestudied the five of the major players in AC that is LG, Samsung, Hitachi, Videocon,Voltas. The report included the survey of the customer’s of these particular brandsand then analyzing what kind of their customers are, the brand targets which segmentof the customers, the customer’s age group, income group, their education level.

The objectives of the research includes:

• To identify the AC market, products and the players within this segment.

• We Have taken the major competitors in AC segment as LG, Samsung,

Hitachi, Videocon, Voltas and did an in depth comparison of the same oncertain parameters, which will be defined in the due course of the proposal.

• To ascertain potential market and competition.

• Ascertain the consumer preferences and satisfaction factor

• To highlight the perception of the consumers for the Air Conditioners.

• To do the brand profiling.

• To know the personality traits, likings of the customers for individual brands.

• To know which customer prefer which brand.

• Why do they purchase this brand only?• How does this brand matches to their personality.

• Which brand targets or is liked by the customers of which age group

• Which brand is affordable by which income group.

• Do the customers want to repurchase this brand? If yes, then why so.

• What are the characteristics of the customer the brand targets?

• To know the profile of the customer for a particular brand.

A brand is the promise you make to customers combined with the customers’ judgment about how well you deliver on that promise. A successful, brand becomesan emotional bond that builds customer loyalty. A brand includes your logo, color scheme, taglines, slogan, design elements and more. Think of branding as the

personality of your enterprise. Define that and the logo and other marketing messageswill follow.

The size of the air-conditioner industry in India is about Rs 2,000 crore. The industrycan be sub-divided into non-ducted and ducted products. The demand for non-ducted

products -- window air-conditioners and mini-splits -- comes from both householdsand corporate. The demand for ducted products -- central plants, packaged air-conditioners and ducted splits -- is only from the corporate.

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CHAPTER 2

CRITICAL REVIEW OF LITERATURE

Carrier Corp., headquartered in Farmington, Conn., is the world's largest provider of heating, air-conditioning and refrigeration solutions. With 2007 revenues of $14.6

billion, Carrier has approximately 43,000 employees worldwide and operations inmore than 170 countries. Carrier is part of United Technologies Corp., a Hartford,Connecticut-based provider of products and services to the aerospace and buildingsystems industries worldwide.

Air Conditioner Market

THANKS TO the fabled Indian middle-class, the air-conditioner market is hootingup. An inordinately hot summer in 2004 appears to have convinced the people thecomfort of an air-conditioner and a large number appears to have decided to take onehome this year. Indeed, in the last few the years, the demand for air-conditionersfrom the household sector has been growing rapidly. Still, the demand growth in2004 was particularly noticeable, and was also the most significant change in theindustry during this period. According to some industry estimates, growth in volume terms has been 45-50 per cent this fiscal. But official statistics underestimate this and even report a decline in

production. Nevertheless, by all accounts, including a study by the Confederation of Indian Industry, there has been a noticeable jump in the demand for air-conditionersfrom the household segment. After several years of relatively modest growth, whichwas totally at variance with the latent potential of the product, the sharp growth indemand the summer past was very welcome for air-conditioner companies in manyrespects. One, it relatively reduced their dependence on the corporate sector which isstill the major demand driver. Corporate traditionally accounted for about 60 per cent

of the total demand for air-conditioners. But the burgeoning demand from thehousehold segment could level the ratio in the near future

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One of the significant factors influencing the fortunes of the industry is the taxationstructure. The industry has come a long way from the time when the excise duty

structure favoured only the unorganized sector. The steady fall in the excise rate inthe 1990s helped the organized sector cope with the competition from theunorganized sector on more favorable terms. Still, the unorganized sector continuesto meet a sizeable proportion of the demand for non-ducted products.

There was a significant change in the excise duty structure in 2000. The rate wasraised from 30 per cent to 32 per cent and this was expected to adversely impact theindustry. However, the shift to a maximum retail price based system for the levy of excise appears to have helped the manufacturers. In the MRP-based system, an

abatement of around 40 per cent was provided. This ensured that the impact of theincrease in excise was minimal if not positive. Another major fiscal change is theremoval of quantitative restrictions on imports. Imports are, however, not all thatcompetitive considering the Customs duty structure. An import duty of 44 per centalong with a countervailing duty, which is equivalent to the excise duty, is a largeenough protection for the domestic companies.

6



Growth of AC market

The demand for non-ducted products grew steadily in the latter half of the 1990s. Thedemand for mini-splits has grown at a higher rate compared to window ACs becauseof the lower base. The demand switch from mid-sized ducted products, such as

packaged ACs or ducted splits, to mini-splits is also one of the reasons for the larger growth rates in the latter segment.

Another major reason for the growth in demand was the increased attention this product category has attracted in the recent past. Prices of air-conditioners droppedsharply in the past few years because of competition. Most established playersupgraded their manufacturing facilities, while fresh capacities were created bycompanies such as Matsushita (National brand). The marketing and advertisement

spend by companies has also been on the rise. With such investments flowing into building both the product and the brand, theexpansion of the market was inevitable. As seen with other consumer durables, in theinitial years of increased intensity of competition, both existing and new playersinvest more cash. This leads to a drop in prices, fuelling demand and the result is amuch larger market. And the non-ducted segment has attracted a lot of players in thelast few years. The latent long-term demand potential from Indian households has ledto a number of multinational companies making a beeline to set up base in thecountry.Major players in this product category are Carrier Aircon, Voltas and Blue Star.Brands such as Hitachi, Videocon and Godrej also have a sizeable presence. Amongthe recent entrants, the Korean brands such as Samsung and LG have been able tomake an immediate impact. Other brands that have positioned themselves for a sharein this fast-growing market are National, Fuji General and Daikin. On a much smaller scale, Whirlpool and Electrolux have entered the market to cater to householddemand.

Initially, the entry of new players did have an adverse impact on the established players -- especially Voltas and Carrier Aircon. The reduced sales of window ACs byCarrier Aircon and Voltas in 1999-2000 compared to 1998-99 is testimony to the

adverse impact caused by the entry of the new brands, especially Samsung and LG.However, since the beginning of 2000-01, it does appear that the established players-- Carrier Aircon and Voltas -- have started to hit back. They may have even pickedup some of the market shares they lost in the earlier period. Again, initially, marginsof established companies suffered as larger outlays in selling and distribution failedto translate into superior sales growth. The trend now appears to have been reversed.

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History

When Willis Carrier invented the first system for “manufactured weather” in 1902,he sparked an industry that revolutionized the way in which we live, work and play.From that defining moment – and through to the present day – Carrier has been acompany built on a legacy of innovation. For more than a century, our research,expertise and forethought have resulted in market-leading innovations and “firsts”

that have shaped and defined the heating, air conditioning and refrigeration industry.Through our history of product excellence and committed customer service, we haveevolved into a global company serving millions of people and businesses in 172countries on six continents around the world.

Carrier India Vision:

To be recognized as the leader in every segment we operate in by

• Being ‘customer focused’ in everything we do and following ACE diligently

• Delivering ‘best in class’ quality in the product as well as aftermarket service• Being ‘environmentally conscious’ in areas of energy efficiency and pollution

• Establishing a performance culture that respects human values & team work

• Remaining embedded in our core values of EH&S and ethics

Thereby growing profitably and ahead of the market every year, makingCarrier a destination of choice for all within HVAC&R industry.

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CHAPTER 3

RESEARCH METHODOLOGY

1. Problem Definition:

The main problem that is considered in this project is to find out the reasons why

the profits of the Carrier AC are declining inspite of its market share. The

various Air conditioner brands in market are loosing out their market share to the

high-end players. The additional problem that we need to analyze is as to which

class of people is carrier targeting and what kind of customer and what they

should target.

• Primary objective:

To conduct a market feasibility for CARRIER AC in India.

• Secondary objectives:

To analyze the scope of Carrier AC market in India.

2. Research Question:

What is the reason for declining sales of Carrier AC?

3. Formulation of Hypothesis.

Ho [null hypothesis]: The decline of sales of CARRIER AC is dependent on inferior

After Sales Service.

H1 [alternative hypothesis] : The decline of sales of CARRIER AC is independent of

inferior After Sales Service.

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4 Research Design :

For completion of this research work we have selected the Exploratory & Descriptive

research design because we have to find out the behavior of the existing customers

towards Carrier AC which is experiencing declining sales. For finding their response

for the AC that they are already using, we designed questionnaire and tried to find

out the information about the various parameters that they think are faulty and which

need improvement.

Exploratory research design has been used to find out the satisfaction level in existing

customers.

5 Sampling Design :

Sampling technique is judgemental in this research which is a Non Random

Sampling Method. All the respondents were selectively picked, these were the

respondents which were already using Carrier AC’s. Questionnaire both in printed

and electronic form were given to the respondents and their respective responses

were collected.

The respondents included housewifes and working professionals.

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3.6 Scope of study:

1. To find out the common problems that are faced by Carrier AC Users i.e. the

problems they come across while using and maintaining the AC.

2. To study the main purpose for which the air conditioners are purchased i.e.

whether they are purchased for home use or for office use.

3.7 Limitations:

1. Credibility of information given by respondents.

2. Shortage of time and funds.

3. Inexperience of researchers.

4. Small sample size.

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CHAPTER 4

COMPANY’S PROFILE

Founded in 1915 by Dr. Willis Carrier, the inventor of modern air-conditioning,Carrier has developed into being the largest global manufacturer of air-conditioning,heating and commercial refrigeration systems. Over the decades, the Carrier namehas become synonymous with reliability, innovation, commitment, superior technology, cutting-edge manufacturing and world-class performance.Carrier , a global player in the HVACR market with operations in 172 countries, 71manufacturing locations and 18 design centers, employing approximately 41,000

people worldwide and revenues of $13.4 billion in 2006. It has the broadest productoffering in the world with strong technology / innovation focus and 348 patents in thelast 4 years. It also has one of the most prestigious installation bases in the world.

Carrier is a part of United Technologies Corporation, a $47.8 billion, in2006,conglomerate operating in the high technology space. The UTC group leadswith businesses in aerospace & building systems with companies like Carrier (air-conditioning), Otis (Elevators), Pratt & Whitney (Jet- engines), Sikorsky(Helicopters), UTC Fire & Security (Chubb + Kidde), Hamilton Sundstrand and UTCPower.

Carrier started its operations in India with the setting up of Carrier Aircon in 1986,and established Carrier Refrigeration in 1992. It was the first global company to

bring to the Indian consumer, access to advanced technology and air-conditioning

and refrigeration products from the worldwide product portfolio of Carrier. In Oct.2006, both these companies merged to form a new entity called “ Carrier Airconditioning & Refrigeration Ltd. ”Carrier's India operation has many firsts to its credit :

• First air conditioning company to introduce the concept of a Comfort Shop.

• First to develop exclusive dealer networks in the country. Today, there are

over 345 Carrier exclusive dealers in India.• Setup the Willis Carrier Engineering Center to provide technological support

to develop new products and upgrade existing ones.

Introduced finance schemes that have taken air-conditioners out of the luxury

category and made it affordable for the homebuyer.

Carrier's Gurgaon manufacturing facility produces air conditioning equipmentsincluding Window Room Air conditioners, Hi- Wall Splits, Slimpak Splits, CassetteSplits, Ducted Splits and Chillers. It also manufactures Refrigeration Equipmentsincluding Cold chain equipment comprising of Cold Rooms, Truck Refrigeration &Bus Air-conditioning system, Freezers, Visi Coolers & Super Market Products .Allthese are supported by the Willis Carrier Engineering Center.

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SNAPSHOTS

Environmental timeline

2005

INNOVATION

Evergreen VSS, Featuring World Class Non-ozone-

depleting Efficiency

Carrier debuts Evergreen VSS chillers, featuring newtechnology that combines HFC-134, a non-ozone-depletingrefrigerant and a high efficiency Variable Speed Screw (VSS)compressor-based chiller system.

2004

EVENT

Carrier Leads Industry Support For 13 SEER

Carrier leads industry compliance with 13 SEER, thegovernment-mandated energy efficiency standard for residential central air conditioners and heat pumps in the U.S.

2003

AWARD

EPA recognizes UTC and Carrier as Climate Leaders

The Environmental Protection Agency names UTC andCarrier Climate Leaders

.

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2002

AWARD

China Ozone Protection Award

Carrier establishes the China Ozone Protection Award withthe Chinese government.learn more

2001

INNOVATION

EliteLINE Container Unit Generates Lowest Total

Equivalent Warming Impact

Carrier introduces the EliteLINE container unit, generatingthe lowest total equivalent warming impact.

2000

INNOVATION

ComfortID, Demand Control Ventilation For Commercial Buidings

Carrier develops ComfortID, a demand control ventilationsolution for commercial buidings.

14

http://www.corp.carrier.com/static/Corporate-English/Files/Environment/OzoneAward.pdf

http://www.corp.carrier.com/static/Corporate-English/Files/Environment/OzoneAward.pdf



1997

EVENT

UTC To Reduce Energy & Water Use By 25% Of Sales

UTC introduces a program to reduce its Energy & Water usage by 25% of Sales by 2007.

1996

INNOVATION

Puron, Non-ozone-depleting Residential Central Air

Conditioners

Carrier introduces Puron, non-ozone-depleting residentialcentral air conditioners.

1995

AWARD

EPA Stratospheric Ozone Protection Award

Carrier is awarded the Stratospheric Ozone Protection Award by the Environmental Protection Agency (EPA).

1995

INNOVATION

15



1st Non-ozone-depleting Centrifugal Chiller

Carrier develops the 1st non-ozone-depleting CentrifugalChiller.

1994

INNOVATION

1st Non-ozone-depleting Rooftop & Residential Units

Carrier develops the 1st non-ozone-depleting rooftop &residential units.

1993

INNOVATION

Carrier Pioneers Worldwide CFC Phase-out

Carrier leads the industry in the worldwide phase-out of CFCs.

1993

EVENT

US Green Building Council (USGBC) Charter Member

Carrier becomes a US Green Building Council (USGBC)Charter Member.

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SWOT ANALYSIS OF CARRIER AC

Definition

SWOT Analysis is a strategic planning tool to evaluate the Strengths, Weaknesses,

O pportunities, and Threats involved in a project or in a business venture or in any

other situation of an organization or individual requiring a decision in pursuit of an

objective. It involves monitoring the marketing environment internal and external to

the organization or individual.

SWOT Analysis

Strengths

• First air-conditioning company to introduce the concept of a Comfort Shop.

• First to develop exclusive dealer network in the country. Today, there are

over 400 Carrier Aircon exclusive dealers and 60 Carrier compressor dealersin India.

• It has a strong setup, Willis Carrier Engineering Center, to provide

technological support to develop new products and upgrade existing ones.

• It has successfully introduced finance schemes that have taken air-

conditioners out of the luxury category and made it affordable for the home buyer.

• Carrier has a strong nation-wide infrastructure with around 20 offices and 400

odd exclusive dealers.

• Carrier was the first in the industry to introduce non-ozone depleting

commercial and residential air-conditioning systems.

Weaknesses

• Highly dependent on its parent company for R&D and technology support.

17



• After sales services is one of the most crucial aspects.

Opportunities

• Growing Indian middle class characterized with low penetration level of

consumer durable.

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

of consumers and cut costs.

•There is a changing dynamics of consumer behavior where in luxury goodsare being perceived as necessities with higher disposable incomes being spenton lifestyle products.

Threats

• Likely to face fierce competition from domestic companies as they have well

acknowledged brands, an extensive distribution network and better insightsabout the local market conditions.

• Increased threats from cheaper imports, especially from China.

• Inflation effect

CHAPTER 5

INDUSTRY PROFILE

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Industry overview

The size of the air-conditioner industry in India is about Rs 2,000 crore. The industrycan be sub-divided into non-ducted and ducted products. The demand for non-ducted

products -- window air-conditioners and mini-splits -- comes from both householdsand corporate. The demand for ducted products -- central plants, packaged air-

conditioners and ducted splits -- is only from the corporate.

Industry Trends

A vast majority of middle-class Indian homes have traditionally battled the summer heat with the help of fans or giant fan-driven water coolers which blast cool air. "Allthese years companies have thought of an AC as an expensive luxury product butthat's no longer true,” (The AC) has moved from its luxury status to a necessity item

just like any washing machine or refrigerator. Air conditioner companies see India asa potential gold mine as it offers a winning combination of rising disposable incomesand AC ownership levels of just 1.1 percent of households. And average prices for air conditioners in India have dropped by about 20 percent over the past two yearsthanks to new companies entering the fray, making them more accessible toconsumers.

With average incomes rising, AC penetration to follow the same trajectory as colour TV ownership which is pegged at 18 percent of all households and whose sales havealso been spurred by falling prices. Indians bought 6.2 million colour TVs in the year to March 2002 and sales could leap 30 to 35 percent this year, industry estimates say.The Indian middle-class, estimated at between 40-70 million people, is the maintarget for air conditioner companies. AC sales grew 8.0 percent in 2001 and would

have raised more but early rains cooled temperatures and chilled demand. The dismalsupply of power where outages, lasting hours, are a part of life in large swathes of India, could still throw a spanner into the bullish hopes of AC companies. The big

problem is the quality of power supply and the cost of running an AC running costsare upwards of three rupees an hour depending upon electricity tariffs. Also hurtinggrowth is the unofficial "grey" market that accounts for close to 15 percent of thesales. But that is down from 70 percent a decade ago, as competition amongestablished players and growing preference for brand name ACs among consumerswho want after-sales service has narrowed the gap to around 3,000 rupees from 7,000earlier. It will shrink further and further as markets mature and consumers geteducated.

Indian air conditioner market is already flooded by players like Hitachi, Whirlpool,

LG, Haier, Samsung, Voltas, Videocon and many more. Each competing on the basis

of price and features.

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Carrier has played a pioneering role in the growth of air conditioners in India. Carrier has established itself as the market and brand leader in the Air Conditioner market inIndia. The company has built a diverse product portfolio to meet the needs of different consumer segments, ranging from middle income buyers to high class

buyers, who look for high performance and better quality.

Brand being usedCarrierHitachisamsung

LGother

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PRODUCT LINE:

Air Quality Solutions

Improve the quality of air in your home.

Controls and Thermostats

Innovative controls that manage all aspects of your home comfort.

Air Conditioners and Heat Pumps

for Split Systems

Cooling solutions for split systems. Choose a heat pump for A/C and extra heating.

21

http://www.residential.carrier.com/products/airquality/index.shtml

http://www.residential.carrier.com/products/controls/index.shtml

http://www.residential.carrier.com/products/acheatpumps/index.shtml











Furnaces for Split Systems

Heating solutions to work with your preferred fuel source.

Fan and Evaporator Coils

Coils connect to the refrigerant line from Heat Pumps or A/C units. Fan coils add air flow.

Duct-Free Split Systems

Can't install ducts in your home or room? Consider a duct-free solution.

Packaged Products

Carrier's All-In-One external solutions for whole home heating and cooling.

22

http://www.residential.carrier.com/products/furnaces/index.shtml

http://www.residential.carrier.com/products/coils/index.shtml

http://www.residential.carrier.com/products/ductfree/index.shtml

http://www.residential.carrier.com/products/packaged/index.shtml











Room By Room Solutions

Solutions for cooling and heating for individual rooms.

Boilers

The perfect heat source for your home's radiant heat system.

Generators

When power goes out, your home health and comfort are on the line. Back yourself up with a state-of-the-art Carrier.

Carrier is famous in India because of its high quality, innovation and ability to cater to consumers of various strata’s of life. Across the globe, Carrier ship one residential

heating/cooling system every 3 seconds and install a unit every 6 seconds. No matter what home and office comfort needs, people can count on Carrier to keep themcomfortable.

23

http://www.residential.carrier.com/products/roombyroom/index.shtml

http://www.residential.carrier.com/products/boilers/index.shtml

http://www.residential.carrier.com/products/generators/index.shtml









CHAPTER 6

FINDINGS AND ANALYSIS

FINDINGS:

According to our survey with sample size of 15 Carrier AC users, we found

following results.

SPSS ANALYSIS:

These are some very interesting, informative and decisive information generated by

SPSS processor. It includes report of current customers and their responses to

Carrier, Price range their brand loyalty, and their expectations with Carrier AC.

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Regression

Notes

Output Created 25-Mar-2008 16:58:57

Comments

Input Data C:\Documents and

Settings\hp\Desktop\sfd.sav

Active Dataset DataSet0

Filter <none>

Weight <none>

Split File <none>

N of Rows in Working

Data File21

Missing Value Handling Definition of Missing User-defined missing values are

treated as missing.

Cases Used Statistics are based on cases with no

missing values for any variable

used.

Syntax REGRESSION

/MISSING LISTWISE

/STATISTICS COEFF OUTS R

ANOVA

/CRITERIA=PIN(.05) POUT(.10)

/NOORIGIN

/DEPENDENT q7

/METHOD=ENTER q4 q1 q3 q2

q5 q6 q8 q9

/METHOD=ENTER q1 q2 q3 q4q5 q6 q8 q9.

Resources Processor Time 00:00:00.063

Elapsed Time 00:00:00.063

Memory Required 4516 bytes

Additional Memory

Required for Residual

Plots

0 bytes

25



[DataSet0] C:\Documents and Settings\hp\Desktop\sfd.sav

Variables Entered/Removedb

Model

Variables

Entered

Variables

Removed Method

1 q9, q5, q2, q6,

q1, q8, q3, q4a. Enter

a. All requested variables entered.

b. Dependent Variable: q7

Model Summary

Model R R Square

Adjusted R

Square

Std. Error of the

Estimate

1 .861a .740 .394 .32218

a. Predictors: (Constant), q9, q5, q2, q6, q1, q8, q3, q4

ANOVAb

Model Sum of Squares df Mean Square F Sig.

1 Regression 1.777 8 .222 2.140 .185a

Residual .623 6 .104

Total 2.400 14

a. Predictors: (Constant), q9, q5, q2, q6, q1, q8, q3, q4

b. Dependent Variable: q7

26



Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

t Sig.B Std. Error Beta

1 (Constant) 1.231 .736 1.672 .145

q4 .358 .247 .608 1.447 .198

q1 -.216 .081 -.733 -2.679 .037

q3 -.035 .093 -.123 -.372 .723

q2 -.067 .097 -.223 -.693 .514

q5 .277 .133 .484 2.091 .082

q6 -.230 .164 -.711 -1.400 .211

q8 -.111 .106 -.320 -1.055 .332q9 -.039 .100 -.118 -.392 .708

a. Dependent Variable: q7

T-TEST/TESTVAL=0

/MISSING=ANALYSIS/VARIABLES=q1 q2 q3 q4 q5 q6 q7 q8 q9

/CRITERIA=CI(.9500).

27



T-Test

28



Notes

Output Created 25-Mar-2008 17:03:25

Comments

Input Data C:\Documents andSettings\hp\Desktop\sfd.sav

Active Dataset DataSet0

Filter <none>

Weight <none>

Split File <none>

N of Rows in Working

Data File21

Missing Value Handling Definition of Missing User defined missing values are

treated as missing.

Cases Used Statistics for each analysis are based

on the cases with no missing or out-

of-range data for any variable in the

analysis.

Syntax T-TEST

/TESTVAL=0

/MISSING=ANALYSIS

/VARIABLES=q1 q2 q3 q4 q5 q6q7 q8 q9

/CRITERIA=CI(.9500).

Resources Processor Time 00:00:00.000

Elapsed Time

00:00:00.015

29



One-Sample Statistics

N Mean Std. Deviation Std. Error Mean

q1 15 2.4000 1.40408 .36253

q2 15 3.2000 1.37321 .35456q3 15 2.8000 1.47358 .38048

q4 15 2.2667 .70373 .18170

q5 15 3.6667 .72375 .18687

q6 15 2.7333 1.27988 .33046

q7 15 1.2000 .41404 .10690

q8 15 2.4667 1.18723 .30654

q9 15 3.1333 1.24595 .32170

One-Sample Test

Test Value = 0

t df Sig. (2-tailed)

Mean

Difference

95% Confidence Interval of the

Difference

Lower Upper

q1 6.620 14 .000 2.40000 1.6224 3.1776

q2 9.025 14 .000 3.20000 2.4395 3.9605

q3 7.359 14 .000 2.80000 1.9840 3.6160

q4 12.475 14 .000 2.26667 1.8770 2.6564

q5 19.621 14 .000 3.66667 3.2659 4.0675

q6 8.271 14 .000 2.73333 2.0246 3.4421

q7 11.225 14 .000 1.20000 .9707 1.4293

q8 8.047 14 .000 2.46667 1.8092 3.1241

q9 9.740 14 .000 3.13333 2.4434 3.8233

From the above whole survey and analysis of various Air conditioner brands, we cananalyze that the Carrier is the major player in this segment.

30



• Carrier customers are highly quality oriented and Brand conscious. They are also

brand loyal.

• They are not at all pricing conscious. It can be due to the fact that Carrier providequality products and their products are very much affordable and the productsmatches according to the quality and prices charged. Customers consider these

prices as “Value for Money”.

• Customers do purchase other brands as a secondary option when they purchase

two or three ACs for their homes, they purchase one of this brand.

Hence from the whole survey, we can say that Carrier enjoys the high market share but the customers of Carrier do not share good experiences by word of mouth. Rather when they are not satisfied by after sales service, they do not recommend the productto other people.

CHAPTER 7.1

RECOMMENDATIONS

31



After studying the various parameters of Carrier AC, we have found out that the sales

of the product is decreasing because of inferior after sales services.

We recommend the following:-

1) Improved After Sales Service – It has been found out that customers find the

after sales services of other AC’s better than their Carrier brand. So ,improvement in

after sales service can help in increasing sales.

2)Improve the marketing strategies i.e. advertising and all. This could certainly

help Carrier to penetrate the tough Indian market and to keep the market share

intact.

CHAPTER 7.2

CONCLUSION

From above Literature review and findings we can say that Carrier needs to redesign

its marketing strategies and improve its after sales services in order to make a success

in India. The null hypothesis is accepted as r-square is .740 hence consumers value

after sales services alot; however if Carrier improves the services, then there are quite

good chances of a grand success as Indian air conditioner market is growing very

fast. So

Carrier has two options:

32



1. Improve the marketing strategies i.e. advertising and all. This could certainly

help Carrier to penetrate the tough Indian market and to keep the market

share entact.

2. Improve after sales service of the Air conditioner.

Finally we can conclude that the success(or Sales) of Carrier AC is dependent on

after sales service; null hypothesis is accepted. Indian customers won’t buy it just

because it is their brand; but they expect value for money and satisfaction.

In other words we can also conclude that success of Carrier AC is more

dependent on its after sales service than its price as the cumulative result of its

enhanced (expected) version are quite surprising and favorable for Carrier.

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CHAPTER 8

BIBLIOGRAPHY

1.Business Research Methods(BY Donald R Cooper& Pamela S Schinder)Chapter

1 :Page22-23.

2. Business Research Methods(BY Donald R Cooper& Pamela S Schinder)Chapter

2 :Page 40-45


3 :Page72-77


4 :Page96-98.


6 :Page140-144


15,16,17,18 :Page402-526.

7. Research Methods ( BY Ram Ahuja) Chapter 1 :Pages 70-74

8. Research Methods ( BY Ram Ahuja) Chapter 3 :Pages 120-127.

9. Research Methods ( BY Ram Ahuja) Chapter 4 :Pages 155 -165.

10. Research Methods ( BY Ram Ahuja) Chapter 6 :Pages 193 -196

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CHAPTER 9

REFERENCES

www.marketresearch.com

www.economicstimes.com

www.timesofindia.com

www.surveysampling.com

www.residential.carrier.com

www.airmakers.com

http://books.google.co.in

http://finance.yahoo.com

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CASE:

Project Objectives

Pioneer Plaza, LLC, the owner of Pioneer Plaza in Honolulu, Hawaii, is dedicated to providing their tenants, such as the elite Plaza Club, a comfortable environment. Withthe Plaza’s original chillers becoming unreliable and with ever-increasing energyrates, it was time to replace the aging chillers, especially since Hawaiian ElectricCompany (HECO), the local utility company, provides energy rebates for highefficiency equipment. The owners turned to Power and Systems Inspection Groupand its vice president, Leslie Taniyama, for an energy efficient and environmentallysound design.

Project Synopsis

Energy efficiency and the environment have always been very important to Pioneer Plaza, LLC, owners of Pioneer Plaza, a multi-use complex located in Honolulu’sFinancial District and home to the famous Plaza Club. Efficiency is so important toPioneer Plaza, LLC that they turned to the Power and Systems Inspection Group toconduct an energy feasibility study.

“We studied everything from lighting to heating, to ventilation and air conditioning,”said Leslie Taniyama, vice president, Power and Systems Inspection Group. “Thestudy recognized the inefficiency of the original chiller plant and we recommendedthat the existing chillers be replaced within the next five years,” added Taniyama.

Power and Systems Inspection Group went on to design a solution. “Efficiency was paramount,” stated Brandon Metter, facilities engineer, Pioneer Plaza, LLC.However, the owners had other objectives, too. They wanted a multiple chiller plantwith redundant pumps that used the existing electrical supply. Limitations on size andweight would also be considered. The original chillers could be distinctly heard in thePlaza Club so the owners wanted a substantial reduction in plant sound levels. “Asour objectives were listed, we knew we wanted to look at centrifugal chillers withvariable frequency drives with the best life cycle cost,” added Metter.

Visits to Carrier’s chiller plant in Charlotte, North Carolina, and to a competitor’s

facility were planned in order to take a closer look at centrifugal chillers. During eachvisit, Metter and Taniyama toured the manufacturing facilities and met with

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engineers. “We were impressed with Carrier’s facility, their engineers, and their 19XRV Evergreen® chillers and we have always been impressed with Carrier salesand service in Hawaii. We knew leaving Charlotte that the Carrier chillers were bestfor this job,” stated Metter.

Since start-up, “The chillers are not only meeting our expectations, they areexceeding them,” concluded Metter. “With the CarrierOne™ interface to our EMCS,we have flexible control, which has led to energy savings of over 14% in the first fivemonths of operation, while in one month the savings was over 20%,” addedTaniyama. Raynard Marquina, property manager for Pioneer Plaza, LLC agrees,“The new chillers are working beyond expectations. We used to have to run both of the original chillers to handle the loads in the cooler months, but with the newchillers, we only had one running from December through April. We are seeingsignificant energy savings.”

Solution

Two 350-ton Carrier 19XRV Evergreen® centrifugal chillers with variable speeddrives and CarrierOne™/BACnet® interfaces were selected to replace two existing300-ton centrifugal chillers. The 19XRV’s efficiency, reliability, size, weight, lowsound levels, R-134a refrigerant and the expertise of the Carrier engineering, sales,and service staff were all factors in selecting Carrier.

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http://www.commercial.carrier.com/commercial/hvac/product_description/0,,CLI1_DIV12_ETI434_PRD1,00.html

http://www.commercial.carrier.com/commercial/hvac/product_description/0,,CLI1_DIV12_ETI434_PRD1,00.html



APPENDICES AND ANNEXURE:

Appendix I:

The Earth Times

FARMINGTON, Conn., March 3 /PRNewswire/ -- Carrier Corp., a unit of United

Technologies Corp. , was honored recently with the Hartford Area Habitat for

Humanity's first-ever Community Ambassadors Award. The organization recognized

Carrier for its 10th corporate house sponsorship as well as its ongoing support.

Carrier further supported the Hartford affiliate by donating 10 heating systems

installed in new Habitat houses in 2007.

"Carrier has paved the way for other companies as it has raised the bar on corporate

giving and community service," said Hartford Habitat's Executive Director Michael J.

Brett. "We are pleased to present them with the first Community Ambassadors

Award."

Carrier President Geraud Darnis accepted the award which was presented at Habitat's

Board of Directors Annual Meeting in Hartford on Feb. 28. "This is a distinct honor

for Carrier," said Darnis. "As part of our corporate commitment to social

responsibility, we continuously seek opportunities to improve the communities where

Carrier's employees and customers live and work. We feel privileged to have

supported Habitat's efforts in the Greater Hartford community over the past decade

and look forward to a strong partnership long into the future."

A long-time partner of Habitat for Humanity, Carrier has donated more than $3

million in cash and equipment and built more than 100 homes on three continents.

The company has enabled its employees to volunteer upwards of 26,000 hours with

Habitat for Humanity affiliates around the world.

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"At Carrier, our purpose is to make the world a better place to live by creating a

comfortable, productive and healthy environment," said Darnis. "We do that with our

innovative products that are energy efficient and environmentally sound. We also

fulfill our purpose through the actions of Carrier employees in their communities."

Carrier supports organizations, such as Habitat for Humanity, that promote the use of

green building practices and environmental sustainability in urban centers. It is in this

spirit that Carrier helped the Hartford Area Habitat for Humanity incorporate green

building practices into its homes in 2006. The Hartford Area Habitat for Humanity

continues to design homes that meet ecologically sound building standards through

the use of recycled materials, renewable resources and energy efficiency.

About Carrier Corp.

Carrier Corp., headquartered in Farmington, Conn., is the world's largest provider of

heating, air-conditioning and refrigeration solutions. With 2007 revenues of $14.6

billion, Carrier has approximately 43,000 employees worldwide and operations in

more than 170 countries. Carrier is part of United Technologies Corp., a Hartford,

Connecticut-based provider of products and services to the aerospace and building

systems industries worldwide.

Annexure: Questionnaire

This questionnaire was given to the current customers of CARRIER AC to findout that where the problem actually lie.

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‘QUESTIONNAIRE’

YOUR SURVEY RESPONSES WILL BE STRICTLY CONFIDENTIAL ANDDATA FROM THIS RESEARCH WILL BE REPORTED ONLY IN THEAGGREGATE.YOUR INFORMATION WILL BE CODED AND WILL REMAINCONFIDENTIAL.

Name:

Address:

Phone No:

1. Why did you prefer Carrier AC?

Quality Cost Brand value Reference Service convenience

2. While you were deciding for the purchase of AC, which brand gave you most quick

and easy access to its product information?

LG Hitachi Samsung Carrier Videocon Other Specify_______

3. Based upon your most recent interaction with Carrier employee , how would yourate your overall satisfaction with us?

Excellent Good Average Fair Poor

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4. Do you feel that your waiting time was:

less that expected reasonable too long

5. How often did you find problem with Carrier AC?

weekly monthly 1-3 times a year 4-6 times a year Other

6. How is the performance of your AC?

Excellent Good Average Fair Poor

7. If given a chance to exchange your AC, will you be willing?

Yes No

8. Which other brand would you prefer than carrier.

LG Hitachi Samsung Voltas Videocon Other

9. Which of the following factors influence your decision to buy Air Conditioner?

Cost After Sale services Maintenance Cooling Effect Electricity Bill

Other Specify_______

10. How would you rate our performance in the following areas?Exceeded

myexpectation

Met myexpectation

Did notmeet my

expectation

Employee cared about and understood my needsand concerns.

Service delivery was timely and responsive.

Employee was able to assist me or direct me toappropriate source.

Employee was courteous and friendly.

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Employee was qualified, knowledgeable and well-informed.

Problem was handled in a professional manner.

processes were easy to follow and/or clearlyexplained.

11. Please provide suggestions or comments for ways by which we can better serveyour needs .

6. We strive to give our customers exceptional service every day. If you have receivedservice that was beyond your normal expectation -- we'd like to hear about it.

Name of Employee:

Department:

Service Performed:

Thank you for taking the time to share your thoughts.

Carrier Ac

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