Saurabh STR

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SUMMER TRAINING PROJECT REPORT ON Marketing Strategies Of CARRIER AIRCONDITIONERS Submitted in partial fulfillment of the requirement For the award of degree Of Bachelor’s of Business Administration SESSION (2008-2011) Name:Saurabh Jindal

Transcript of Saurabh STR

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SUMMER TRAINING PROJECT REPORT

ON

Marketing Strategies Of

CARRIER AIRCONDITIONERS

Submitted in partial fulfillment of the requirement

For the award of degree Of

Bachelor’s of Business Administration

SESSION (2008-2011)

Name:Saurabh Jindal

Class: BBA (general)

University Roll No.-0212061708

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ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or

indirectly contributed in the development of this work and who influenced my

thinking, behavior, and acts during the course of study.

I am thankful to Mr Mehtab Alamfor his support, cooperation, and

motivation provided to me during the training for constant inspiration, presence and

blessings.

I also extend my sincere appreciation to Mr Rajesh Pandey provided his

valuable suggestions and precious time in accomplishing my project report.

Lastly, I would like to thank the almighty and my parents for their moral

support and my friends with whom I shared my day-to-day experience and received lots

of suggestions that improved my quality of work.

(Name of the student)

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Declaration

I, SAURABH JINDAL, STUDENT OF BBA V SEMESTER, STUDYING AT TRINITY INSTITUTE OF

PROFESSIONAL STUDIES, DWARKA, HEREBY DECLARE THAT THE SUMMER TRAINING REPORT

ON “CONSUMER BUYING BEHAVIOUR AND CONSUMER ANALYSIS OF CARRIER

AIRCONDITIONERS” IN PARTIAL FULFILLMENT OF DEGREE OF BACHELOR’S OF BUSINESS

ADMINISTRATION IS THE ORIGINAL WORK CONDUCTED BY ME.

(Name of the student)

TABLE OF CONTENTS

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1. Executive Summary

2. Organization history

3. Mission and Vision

4. 7S Framework

5. SWOT Analysis

6. Air Conditioner Industry

7. 7 Os of Air Conditioner Industry

8. Competitors Of Carrier In India

9. Brand perception

10. Major Issues With Product & Service

11. Methodology

12. Competitor’s Analysis

13. Brand Comparison

14. Learning from the project

15. APPENDIX

16. BIBLIOGRAPHY

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Executive Summary

Carrier has always focused on maintaining the highest international standards of excellence

through quality, technology and innovation. For over a decade now, Carrier has been bringing

the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting

the best of international technology to suit Indian needs, and crafting it to improve the quality

of life – as million of satisfied customers will agree. This tells the success story of Carrier.

Sustainability is at the center of Carrier’s’ strategy. Being a great company Carrier always tried

to improve people lives through its products but many a times due to changing environment or

customer’s mind the product doesn’t goes so well as expected.

The project deals with the study into the marketing mix of Carrier in air- conditioner market.

The primary data has been obtained from the dealers spread all across Delhi. The attributes,

which defined the data were the price of the product, push or pull strategy used, shelf space,

various advertisement tools used like bill boards, mass media etc and promotional schemes

used by various brands like bundling, coupons, free gifts etc.

In all I visited 50 outlets spread all over Delhi (includes dealers and retailer), who dealt in air

conditioner I also interviewed 50 customers at showrooms across Delhi. Using this data

inferences were drawn.

LG has the largest market share as far as home care is concerned. In Delhi AC market LG has the

highest penetration, as it is available in almost 75% of the outlets while Hitachi is present in

only 64% of the outlets. L.G. also leads in the other categories like the window display (40%),

shelf space (50%) and POP (40%) while Voltas has the share of 7%, 28% and 34% in the

respective categories.

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Of the outlets visited, 44% claim L.G. to be the top Brand whereas Voltas has 21% of the outlets

claim it to be the top Brand. The strengths of L.G. lie in its low price and good quality whereas

Hitachi’s strengths lie in its superior quality and post sales service. Whereas, on the negative

side the claim that LG is not as durable as other brands & has a life expectancy less than other

brands like Voltas, General etc.

Organization history

Carrier is a part of United Technologies Corporation, USA. With 2009 revenue of $58.7 billion,

UTC is a conglomerate operating in the high technology space. The UTC group operates in

aerospace & building systems with companies like Carrier (air-conditioning), Otis (Elevators),

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Pratt & Whitney (Jet- engines), Sikorsky (Helicopters), UTC Fire & Security (Chubb & Kidde),

Hamilton Sundstrand and UTC Power.

It has operations in more than 170 countries, employing approximately 32,000 people

worldwide and revenues of $11.4billion in 2009. Over the decades, Carrier Founded in 1915 by

Dr.Willis Carrier, the inventor of modern air-conditioning, Carrier has developed into being the

world’s largest provider of air-conditioning, heating and commercial name has become

synonymous with reliability, innovation, commitment, superior technology, cutting-edge

manufacturing and world-class performance. It also has one of the most prestigious installation

bases in the world.

Carrier started its operations in India with setting up of companies namely Carrier Aircon

Limited in 1986, and Carrier Refrigeration Private Limited in 1992. Carrier brought to the Indian

consumer, access to advanced technology and air-conditioning and refrigeration products from

the worldwide product portfolio of Carrier. In October, 2006, Carrier Aircon merged with Carrier

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Refrigeration and the name of the merged entity was changed to “Carrier Air-conditioning &

Refrigeration Limited” (Carrier India).

Carrier India's manufacturing facility at Gurgaon produces air conditioning equipments

including Window Room Air conditioners, Hi- Wall Splits, Slimpak Splits, Cassette Splits, Ducted

Splits and Chillers. It also manufactures Refrigeration Equipments including Cold chain

equipment comprising of Cold Rooms, Truck Refrigeration & Bus Air-conditioning system,

Freezers, Visi Coolers & Super Market Products.

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 Centre to provide technological support to develop

new products and upgrade existing ones.

Carrier India pioneered HVAC dealer concept in the country to give an unparalleled

experience to its customers. The Company has built a strong distribution network on a

platform of partnership and trust. The Company boasts of a strong network of over 590

sales and service dealers and 1000 distributors and retailers. The cornerstone of the

Company’s distribution is the Willis Carrier Club Dealer (WCCD).

Willis Carrier Club is a nationwide endorsement of the Company’s best dealers in the

country. This endorsement not only gives unique identity to the dealers, but also helps

drive customer satisfaction through ‘expertise,’ ‘the hallmark of Carrier’, the inventor of

modern air-conditioning. Apart from the national traditional channel, the Company has

also developed relationships with most of the organized retail chains in the country.

Carrier is one of the first to adopt the energy efficiency label issued by the Bureau of

Energy Efficiency (BEE) - Awarded the First prize for energy conservation in Consumer

Goods Sector in 2007 & 2008 by the Ministry of Power, Govt. of India

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Carrier is committed to the highest levels of quality and service. It is the company’s

endeavour to ensure total customer satisfaction. For this the Company has a network of

over 475 service dealers and 90 service franchisees to provide a range of services.

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, making Carrier a destination of

choice for all within HVAC&R industry.

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Mission

To be our customers first choice for air conditioning, heating and refrigeration solutions

everywhere around the world.

Making the World a Better Place To Live, Work and Play

From the time our founder invented the basics of modern air conditioning in 1902, Carrier has

been the world leader in air conditioning, heating and refrigeration systems. A wholly-owned

subsidiary of United Technologies Corporation, Carrier is built upon a legacy of innovation and

commitment. Through our market-leading products and solutions, we are constantly striving to

help people live more comfortable, healthy and productive lives.

Ensuring Comfort and Peace of Mind, Everywhere Around the World

Across the globe and in virtually every facet of daily life, Carrier is there. We create comfortable

environments, regardless of the climate. We safeguard the global food supply by preserving the

quality and freshness of food and beverages. We ensure health and well-being by enabling the

proper transport and delivery of vital medical supplies under exacting conditions. We provide

solutions that maintain exceptional indoor air quality — controlling humidity, allergens and

harmful pollutants. At every touch point with consumers and in every commercial undertaking

we pursue, we are committed to delivering exceptional products and services that meet our

customers’ diverse needs.

As a global citizen, we also recognize the vital importance of maintaining a responsible balance

between the comfort we create today and the world we live in tomorrow. Carrier is an industry

leader in energy efficiency, dedicated to creating environmentally sound products and solutions

that fulfill our customers’ demands while preserving our precious natural resources.

Leading the Global Market

Headquartered in Farmington, Connecticut, USA, with approximately 45,000 employees in 172

countries, Carrier combines its global HVAC and refrigeration expertise with the responsiveness

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of its local operations to lead nearly every geographic market, on every continent. Our

continued success is a testament to our staunch commitment to providing the highest level of

quality and service to our customers around the world.

Sharing Our Legacy of Success and Innovation

Our web site serves as your link to the world of Carrier. We invite you to view our showcase of

successful installations, gain a glimpse into the revolutionary vision behind the development of

modern air conditioning, and learn about Carrier’s dedication to balancing the promise of

innovation with the critical need to preserve our environmentfor generations to come.

Values

Performance

• We strive for continuous growth to reinforce our leadership position.

• We achieve world-class financial performance.

• We continuously improve the productivity of our assets and resources.

Innovation

• We are a company of ideas, committed to research and development.

• Our founder inspires us to reach the next innovative, powerful and marketable idea.

Employee Development

• We listen to our employees and treat each other with respect.

• We care for our employees’ health and safety.

• We are committed to employee and management development.

• We value diversity in individuals and cultures.

Customer Care

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• We listen to our customers and respond to their needs.

• We make it easy to do business with us.

• We are committed to excellence in customer satisfaction.

Business Practices

• We maintain the highest ethical standards.

• We actively support the communities in which we do business.

7 s Framework

Strategy, Style:

Carrier wants to be our customers’ first choice for air conditioning, heating and refrigeration

solutions everywhere around the world. Markets: Carrier has priced its products higher than

other Korean and local brands like LG and Samsung. So the market segment Carrier is catering

to is middle class and upper middle class who do not base their decisions only on price but also

on other factors like quality.The sustainable competitive advantage of the product is quality and

reliability. Carrier is one of the most highly regarded brands in terms of quality

Skills and shared values

Carrier is among the first companies to set energy reduction goals for their factories in 1988.

This led to the first company-wide global environmental, health and safety goals in 1997. More

recently, from 2000 to 2009, Carrier reduced its air emissions by 76 percent and water usage by

52 percent on an absolute basis. Since 2006, they have lowered our greenhouse gas emissions

by 33 percent.

Carrier’s environmental commitment extends beyond our walls to our communities and the

marketplace. Carrier is the only company in the world to be a founding member of the U.S.,

Argentina, China and India Green Building Councils. In fact, Carrier was instrumental in

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launching the U.S. Green Building Council in 1993 and was the first company in the world to

join the organization. Carrier’s Rick Fedrizzi was the council’s first chairman, and later went on

to lead the organization as President and CEO. 

In China, Carrier serves as a formal international advisor to the China Green Building Council,

having helped introduce the green building council model to that country in 2002.

In 2010, Carrier unveiled a new brand identity emphasizing its roots in environmental

sustainability. The new identity combines the elements of a stylized green leaf exclusive to

Carrier with the existing “turn to the experts” theme line.

Staffing

Carrier actively employs degreed and advanced degreed professionals from leading

colleges of the country in disciplines of mechanical, electrical, electronics, software,

sales and engineering as well as experienced manufacturing professionals and

marketing and sales associates

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Organizational Structure:

Carrier follows divisional structure where the organization is matrix into three units business, operations and functional units and each unit is divided further into 2 product divisions RLC and

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home care.

SWOT ANALYISIS

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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 dealers in 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.

Weaknesses:

Highly dependent on parent company for research and development and technological

support.

Opportunities:

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

duty(SED) on air-conditioners from 16% to 8% in the forthcoming budget.

Growing Indian middle class (approx. 250 m) characterized with low penetration level of

consumer durable.

Advent of internet provides an excellent opportunity to reach to a large base of

customers and cut costs.

Threats:

It is facing fierce competition from local brands and much cheaper Korean brands like

LG and Samsung which have acquired considerable market share in short time ,have a

better network and better insights about the local market conditions.

Threat of cheaper exports from China.

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Air Conditioner Industry:

The size of the air-conditioner industry in India is about Rs 2,000 crore. The industry can be sub-

divided into non-ducted and ducted products. The demand for non-ducted products window

air-conditioners and mini-splits comes from both households and corporate. The demand for

ducted products central plants, packaged air-conditioners and ducted splits is only from the

corporate.

Corporate traditionally accounted for about 60 per cent of the total demand for air

conditioners. Corporate sector is still the major demand driver in this industry but because of

the burgeoning Indian middle class there has been a noticeable jump in the demand for air-

conditioners from the household segment

Air-Conditioner in India

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Product Segment Size (Rs. in crores)

Window and Split 900 (Approx.)

Central and Chiller 600 (Approx.)

The domestic Window Air-conditioner has been growing at the fastest rate but this has been

accompanied by increasing competition leading to low profit margins. Profits in this segment

are driven by volume growth.

Against most developing countries, Indian market is Window A.C. oriented - both commercially

as well as household. Considering the low penetration of A.C.s, the segment is likely to grow, at

least for the next 5 to 10 years.

An important player in the Window A.C. segment is the unorganized sector. Current market

share of organized and unorganized players are 60% and 40% respectively.

The market for air-conditioners was earlier dominated by the unorganized sector as a result of

high excise duty. This sector accounted for around 55 to 60% of the market share only 2-3 years

ago.

The proportion used to be 30:70 during 91-92. Then lowering of excise duties from 110% to

40% favored the organized sector by narrowing the price gap e.g., a 1.5 ton air-conditioner

which costs Rs.45,000/- in 91-92, now costs below Rs. 30,000/- in the organized sector against

Rs. 24,000/- in the unorganized sector. This has led to the organized sector entering into the

unorganized sector's share and also due to brand awareness on part of the customers.

Industry Segments

Volume (Units) Value (Rs. in

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crores)

Window Air-conditioner 3,00,000 900

Split Air-conditioner 75,000 300

Package Air-conditioner 30,000 290

Total 4,05,000 1490

The Government Policy Regarding A.C.s

The attitude of the government to the industry in general has been influenced by the

perception of white good as a luxury item. Only after 1993 did the government liberalizes its

attitude towards white goods.

Till 1994, excise duty on ACs varied from Rs.7,000/- for 0.5 ton ACs to Rs. 9,000 for 1.5 ton

models. In the 1994-95 to 1996-97 budgets, the govt. gave considerable relief to the Air-

conditioning sector. The excise duty was reduced from 80% to 60% in 1994-95 and from 60% to

30% in the following years. In the Exim policy, ACs continued to be in the negative list which

means they cannot be imported without license or as baggage.

Demand

Demand for air conditioners is on a rise as the disposable income and hence the purchasing

power of the Indian middle class is increasing, air conditioner is no longer a luxury but a

necessity. The price of the air conditioner is also falling with cheaper Korean and Indian players

entering the market.

According to industry sources, most of the demand for the air conditioners which is 70-80% of

the air conditioners sold comes from industrial applications, hospitals, buses and not merely

for comfort, as it is widely believed. Government is one of the major consumers as far as the

industrial applications are concerned.

The demand for air conditioners is expected to grow at the rate of 25% per annum. In this

segment, the demand for window air conditioners, which currently accounts for 70% of the

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total demand is likely to reduce to 60% by year 2011. Split air conditioners which are not very

popular now, are expected to pickup and account for 30% of the demand by 2010. This means

that out of a total of 34 lakh units of air conditioners sold in 2010, around 23 lakh will be

window air conditioners and the remaining 11 lakh units will be split types.

Profitability

Margins in the industry vary depending upon the segment, model and sizes, between broad

ranges of 10 to 20%. However margins in the window segment are the least. But these are

reasonable in the case of Split AIR CONDITIONERs. Even then, for players who have their own

Compressor Manufacturing facilities, margins are higher. Margins are highest in Central and

Packaged Air-conditioning segments ranging between 20-24%.

The important factors that govern profitability in the Air-conditioning Industry are Product

Technology, Volumes, Distribution Network, After Sales Service and Aesthetics. Most critical in

the Product Technology is the Compressor which contributes about 40% of the total cost. The

most common type is reciprocating compressor. This is well suited for the Indian conditions

where dust and ambient temperatures are relatively high. But the wear and tear is quite high

necessitating frequent repairs.

The rotary compressor is suitable for conditions where temperature does not exceed 55 degree

Celsius. Beyond this, it’s cooling efficiency decreases. Hence it is suitable for coastal areas like

Mumbai where temperatures are low as compared to central and northern India. Also it cannot

withstand voltage fluctuations which are common in India and once spoiled it cannot be

repaired. But the advantage is that it is much more efficient than the reciprocating one at

moderate temperatures, consuming less power with negligible wear and tear problems.

The latest compressor technology is the scroll compressors. It has no part which can cause wear

and tear, is very efficient under variety of conditions and can be repaired instead of being

replaced. The three world leaders in compressor technology Copeland, Bristol and Tacumbch

already have a presence in India through their collaboration with Kirloskar, Carrier Aircon and

SIEL respectively.

Since this is a volume driven business in the window segment and technology driven in the

package segment, distribution network and after sales services are the deciding factors in these

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two segments respectively. Being a consumer durable industry the activities aspect too is

important. While 40 to 45% of the sales in the window segment come from first three months

of April to June and the rest from the other months, there is no such seasonality in other

segments, so companies have to manage inventory with minimum cost.

Outlook

During 1999-2000 a total of about 7 lakh air conditioning units were sold and this is expected to

rise to a phenomenal 25 lakh units by the year 2011. The industry has been growing at a

healthy compound rate of 30% for the past three years and this pace is expected to continue in

the near future. While the growth rate in the domestic window segment is expected to be

highest at around 50%, other segments are also expected to register healthy growth rates of

around 28%. With all the major players investing money towards higher capacities and new

entrants setting up their plants, supply is expected to keep pace with demand.

Increasing income levels and change in life-styles have led to heavy demand for consumer

durables, esp. air conditioners, washing machines and refrigerators. Since last two three years

they have penetrated most urban households.

Today, white goods is one of the most brand driven product segments where companies

success depends upon marketing power in terms of building brand equity and being able to

maintain and support nation-wide sales and distribution network is a prime requirement for

effective market penetration. The cost of servicing and maintaining big distribution network is

phenomenal and this is one of the factors that resulted in regional restriction of some brands.

In future demand composition is expected to tilt towards corporates, as more electronic

gadgets are used at the work place. The focus will shift from comfort cooling, to process cooling

where precise ambient conditions have to be maintained which naturally means that

technology will play an important role.

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History of Air Conditioners

Air conditioning as we know it today is a rather new technology although different form of

cooling air and dehumidifying the air has been around for centuries. The ancient Romans used

aqua duct water to circulate through the walls of the wealthiest homes. This is just one example

of ancient air conditioning. The Chinese were also were also obsessed

with cooling the air through water and wind. They used various methods to cool their interior

buildings and stay cool during the hot months. In the 1800's one man came close to inventing

what is similar to modern day air conditioning.

In 1820 British Inventor Michael Faraday discovered that ammonia could chill the air when

compressed and liquidized and then allowed to evaporate. In 1841, John Gorrie, a medical

doctor discovered that he could use compressor technology to create ice to cool his patients

rooms in Florida. This discovery gave Gorrie the great aspiration of inventing the first air

conditioning unit. He came very close. His first pro type leaked and was unsuccessful. He

secured funding and his patent was approved in 1851. His funding partner died and he lost the

money to see his dream realized. He later died in 1855 and with him his vision of indoor air

conditioning died as well for the next 50 years.

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The commercially available of air conditioning applications started based on the need to cool air

for industrial processes than for personal comfort. The first electrical air conditioning was

invented by Willis Haviland Carrier in the year 1902. He was also known as the Father of

Modern Air Conditioning. His invention was designed to improve the manufacturing process of

a printing plant. By controlling the temperature and humidity of the plant, the processes were

made more efficient as the paper size and the ink alignment were consistently maintained.

The Carrier Air Conditioning Company of America was established by him to meet the demand

of better productivity in the workplace.

Today, Carrier Corporation is the biggest air conditioner manufacturer and marketing

corporation in the world in central air

conditioning.

The term air conditioning was first coined by Stuart W. Cramer of Charlotte, North Carolina in

1906. Cramer was trying to create ways to add moisture to the air in his textile plants. Cramer

used the term Air conditioning in a papers filed to the patent office for his invention of a water

conditioning unit which was required to control the humidity in textile plants. Willis Carrier took

the term air conditioning and put it into his companies name as he used evaporative cooling to

provide a cooling effect in the air.

The first air conditioners proved to be hazardous to human’s health when the toxic gases

leaked. The use of ammonia, methyl chloride and propane. These toxic, flammable gases

tended to leak causing fatal results. In 1928 Thomas Midgley, Jr. was the first to create an air

conditioner that used Freon. This was found to be much safer for humans but had disastrous

effects to the environme

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7O’S of a small scale air-conditioners

7 O’S SCOPE

Occupants Institutes,Shops,Homes,ShoppingMalls,Restaurants,Clinics

Objects Low Maintaince,High Power efficiency, Low Price,Durability,Aesthetics

Objectives Luxury, Status Symbol,Necessit,

Organizations Individuals - Entire family, Shops, ClinicsOrganizations – Technical

Consultants, Stake holders,Operations

Operations Market Place -> Cash, Credit Cards, Cheque , DemandDrafts

Occasion Climatic conditions, Discount Seasons, Gifts, New Residential or Commercial

Establishment, Replacement

Outlets Retail Shops, Authorized Dealers, Hyper Markets, Specialized Stores, e-stores

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Competitors of Carrier India:

In Air-conditioning Carrier fair conditioneres stiff competition from players like Hitachi,

Whirlpool, LG, Haier, Samsung, Voltas, Videocon, General, Onida and many more .They differ on

the basis of price, features, quality and after sales service

Carrier has been present in the Indian market since 1902 and has played a pivotal role in the

growth of air conditioning market in India. Carrier has the market share of 45% as far as both

industrial and home solutions are concerned which includes products like window, ducted,

cassette air conditioners ;air ,water and absorption chillers and air conditioning for bus and

trucks. The company has wide range of products . Refer appendix.

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BRAND PERCEPTION

PRODUCT: As far as the product is concerned, Carrier enjoys more trust among the people.

Awareness of the brand among the people is high.

From the survey conducted we can determine that the overall presence of Carrier is equal to

the other four brands, which would primarily mean that the reach of the brand to the people is

satisfactory. But Korean brands like LG and Samsung are selling the most in western and

eastern parts of Delhi due to their more visibility as far as advertisements are concerned and a

considerable price difference as compared to brands like Carrier, General and Hitachi. Carrier

relies mainly on the age old trust and loyal customer base it has built over the past hundred

years.

Due to high price, Carrier is lagging behind LG and Samsung in terms of shelf space thus

depriving the potential customers the first hand experience of the functioning of the air

conditioner thus losing on potential customers.

The Point of Purchase material plays an important role in building the brand value at the stores.

According to the dealers Carrier is lagging behind when it comes to POP material as compared

to LG , Samsung and Voltas.

But according to the Carrier dealers the best publicity a company can get is the word of mouth

publicity and the large loyal customer base Carrier has built over the years.

After Sales:

Customers support following the purchase of a product or service. In some cases, after-sales

service can be almost as important as the initial purchase. The manufacturer, retailer, or service

provider determines what is included in any warranty (or guarantee) package. This will include

the duration of the warranty traditionally one year from the date of purchase, but increasingly

two or more year’s maintenance and/or replacement policy, items included/excluded, labor

costs, and speed of response. In the case of a service provider, after sales service might include

additional training or helpdesk availability. Of equal importance is the customer's perception of

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the degree of willingness with which a dealer deals with a question or complaint, speed of

response, and action taken.

Pricing

Carrier Window AIR CONDITIONER Price List

Model Price

Durakool 2.0 Ton 22100/-

Durakool 1.5 Ton 18000/-

DURAKOOL X1 1.0Ton 15,900/-

DURAKOOL X2

0.75Ton 13,800/-

DURAKOOL X1 0.75T 13,200/-

Carrier-Gen X2 2.0 Ton 21,700/-

Carrier-Gen X1 15,500/

Carrier-Gen X2 17,200/

Estrella 1.5 Ton 22,900/

Carrier Split AIR CONDITIONER

Model Price

Carrier-SX1 (2.0T) 33,000/-

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Carrier-SX1 (1.5T) 29,000/-

Carrier-SX1 (1.0T) 24,000/-

Carrier-Durakool (2.0T) 33,000/-

Carrier-Durakool (1.5T) 29,500/-

Carrier-Durakool (1.0T) 24,500/-

Carrier-Estrella (1.0T) 30,500/-

Carrier-Estrella (2.0T) 40,500/-

Carrier-Estrella (1.5T) 36,500/-

There is significant difference in prices offered by Carrier and other brands like LG, Samsung and

Voltas. Carrier is priced higher than other leading brands .Many dealers believe that since most

of the companies are offering similar products .There is not much product differentiation, so

the second P of marketing plays an important role. Because of the lowest price of LG ,it has

captured a major market share. The dealer margin depends on the number of units sold.

Margin on the basis of number of units sold are:

Quantity Margin

15-50 2%

51-75 2.50%

75-125 3%

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126-175 3%

176-220 4%

>220 5%

Margin offered to the dealers by all the companies was almost the same as told by the dealers

themselves. But LG which is the market leader provides an incentive of 8%. Hence the dealers

will tend to push LG as compared to other brands. It is very important for Carrier to provide

better margins to its dealers so that there is some incentive for them to push their brand. Also

margins offered to big giants like Croma are far more than those offered to small dealers. So

these dealers find it difficult to compete with high end retail stores. Spares are also expensive

as compared to LG and Samsung.

Major Issues with product and service

1. After sales service: After sales service of carrier was criticized by all the dealers .Service

of carrier is poor and this is one of the major reasons it is lagging behind LG in the home

segment. There are not enough service centres .On the other hand most of the dealers

and customers were satisfied with the service provided by LG

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2. A stock out is a major worry for quite few dealers. According to some dealers like Amba

Motors in Jhandewalah in west Delhi during the peak season which is from March to

May, demand is not met. So quite a few customers have to be kept waiting for the

product.

3. Spare parts are a major issue as they are not available readily. While comparing with

market leader LG spares are readily available.

4. There were also complaints regarding the excessive noise which machine makes.

S. No

Most Important

Parameter

Percentage of

Respondents

1 Price 25

2 Quality 31

3 After Sales Service 24

4 Advertisements 14

5 Offers 6

As far as the dealers are concerned the most important parameter which impacts the sales of

air conditioners were price, quality and after sales service. Brands like LG were rated high as far

as after sales service is concerned and price of the product. Carrier is a more trusted brand as

far as quality is concerned.

METHODOLOGY

The basis of the project was a survey plan. Using surveys all the appropriate data was collected

through dealers located in various parts of Delhi.

Therefore, research methodology is the way to systematically solve the research problem.

Research methodology includes logic behind the methods used in the context of a research

study and it explains why a particular method has been used in the preference of the other

methods.

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Research design:

Research design is important primarily because of the increased complexity in the market as

well as marketing approaches available to the researchers. In fact, it is the key to the evolution

of successful marketing strategies and programmers. It is an important tool to study buyer’s

behavior, consumption pattern, brand loyalty, and focus market changes. A research design

specifies the methods and procedures for conducting a particular study. Firstly questionnaire

had to designed for collection of appropriate data from dealers and distributors

Research Approach: Field surveys were used to collect data for the study.

The entire Delhi region was divided into five zones North, South, East, Central and West.

Data Collection Methods: Primary data is the data collected from the first hand experience.

Primary data was collected through field surveys with the help of questionnaires. The

questionnaire had questions which would help in understanding the 4 Ps of marketing as far as

Carrier air conditioners are concerned. Questionnaire had both open ended and close ended

questions.

Secondary Data: The information which already exists is secondary data which was collected

through magazines, websites like just dial and trade key, text books and magazines. I had to

find information about the distributors and dealers with a multi brand portfolio and even the

exclusive dealers selling consumer durables like Air Conditioners, Refrigerators, Washing

Machines, and Televisions etc located in various parts of Delhi. The list of the dealers and

distributors already dealing with Carrier products was given to me by the manager and for

those who were not dealing with Carrier products was found through websites like just dial and

trade key and various news papers like Times of India and classified Analysis

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Competitors Analysis –

Competitor analysis in marketing and strategic management is an assessment of the strengths

and weaknesses of current and potential competitors. This analysis provides both an offensive

and defensive strategic context through which to identify opportunities and threats.

Considering the competitors in business market, Blue Star, LG, Voltas are some of the

prominent players –

1. LG is the major competitor of Carrier as far as home solutions is concerned. The Korean

company has established a foothold in the Indian market by offering cheaper products

and by providing a better after sales service but as far as industrial solutions are

concerned, it is still lagging behind. Through intensive marketing of the product through

mass media, visibility of the brand is more as far as the Indian consumers are concerned

but a knowledgeable customers still may not prefer this brand as it lacks as far as quality

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is concerned as told by the multi brand dealers themselves. But LG also has one of the

best after sales service . Since LG provides an incentive of 8% where as Carrier provides

incentive upto 5%, therefore dealers tend to push LG where ever possible and this is one

of the reasons it has a considerable market share.

2. Voltas being another major competitor of Carrier. Voltas has the backing of Tata group

behind it . Voltas has taken the advantage of the trust which Tata group of companies

has built over the years. But some dealers mentioned that it is priced too high.

3. GODREJ: Godrej has a wide range of air conditioners in window and split segment. In the

window AC segment, the company offers mechanical and electronic models between

0.8t to 1.5t. In the split AC segment, grill and flat models are available in capacities

ranging from 1t to 2.0t.

4. Hitachi is considered as the major competitor of Carrier as far as quality is

considered .Both the brands are on expensive ends. Hitachi home and life solutions

(India) ltd, offer Quadricool tm and Quadricool models in the window AC segment in

capacities ranging from 1.0t to 2.0t. Atom UV and atom +one model are available in the

split air conditioner segment in capacities 1.0t to 2.0t. Quadricool tm is the latest first

from the long list of firsts in Hitachi. It has two independent motors that drive the inside

and outside fans independently.

5. Bluestar: The Company recorded sales 60,000 units of air conditioners in the year 2009.

Out of this, 23,000 units were sold in the window segments, while 37,000 units were

sold in the split ac segment. Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad,

and Hyderabad account for 40 percent of the company’s sales, whereas non metro cities

and towns account for the balance 60 percent of its sales. Blue star directed its

investments on a combination of brand building and field promotional activities. In

2008, the company recorded 50 percent growth in exports. Bluestar also offers

customised solutions. But still in terms of customized offerings, it is still not a major

threat to Carrier as they are not as exhaustive as those of Carrier. The flexibility of

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Carrier in offering the customized services even with non-Carrier products provides it

unique advantage and competence which cannot be replicated in the short run by its

competitors.

BRAND COMPARISON

COMPANY: L.G. ELECTRONICS

Punch lines: “Life’s good”, “Think about tomorrow”

Basis for campaign: Brand name ,Linking happiness with health ‘happiness in every breath’, Its

worlds no one manufacture of ac.

Features: Neo plasma health filters, Gold fins, Chaos logic, Energy savers, Jet cool, Anti bacterial

filters

Promotional schemes: 1 + 4 years warranty

Type of ac Capacity (in tons )

Window ac 1, 1.5 and 2

Split ac 1, 1.5 and 2

Wall mounted 1,1.5 and 2

Multi split 2,3, and 4

Floor standing 2,2.5 and 3

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COMPANY: SAMSUNG

Punch lines:“Breaths life”

Basis for campaign:

Brand name, Clean and purified air “help your child breath free”, Own compressor

Features: Turbo power, Quick power, Optimizer, Bio health plus, Tropical Rotatory compressor,

Compact design, Bionizer, Silver Nano health system

Promotional schemes: 1 + 4 years warranty for corp., 0% interest without any files changes

Types of ac Capacity (in tons)

Window ac 1,1.5 and 2

Split ac 1,1.5 and 2

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COMPANY: VOLTAS

Punch lines: “Ac’s with IQ”

Basis for campaign: Old brand, AC with IQ, Sleek & streamlined body

Features : Vertis Power saver mode, air filter, Timer, Uniform cooling, Burst proof capacitor,

Vitamin-c filter, Blue fin technology

Promotional schemes: 1 + 4 years warranty, 0% finance available

Types of ac Capacity ( in tons)

Vertis

Window ac 1,1.5 and 2

High wall split ac 1,1.5,2 and 3

Vectra

Window ac O.75,1,1.5 and 2

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High wall split ac 1,1.5,2 and 3

COMPANY: ONIDA

Punch line: “Nothing but the truth”

Basis for campaign: Well engineered ac excellent cooling capacity

Promotional schemes: 1 + 4 years warranty

Types of ac Capacity ( in tons)

Window ac 1.5, 2

Split ac 1.5, 2

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COMPANY: HITACHI

Punch line:”inspire the next”

Basis for campaign: Brand name

Features: Twin motor and twin turbo technology, Lower noise level, Low power consumption,

Low derating

Promotional schemes: 1 + 4 years warranty

Types of ac Capacity ( in tons)

Windows ac 1.5, 2

Split ac 1.5, 2

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COMPANY: WHIRLPOOL

Punch lines: “Whirlpool every where, every home…Every home, with pride, passion,

performance.”

Basis for campaign: Brand name, Low electricity consumption (Show electricity bill annual

savings of Rs. 7500)

Features: Quick cool tm function, Sleep function, Low electricity consumption, Steam air

purification

Promotional lines: 1 + 4 years warranty

Types of ac Capacity (in tons)

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Windows ac 1.5, 2

Split ac 1.5, 2

COMPANY: O-GENERAL

Punch line:” the extreme machine”

Basis for campaign: Brand name

Features: Extremely cool , Eco-friendly air conditioner, Unique super wave technology, High EER

compressor, Unique 3-Dimensional air Control

Promotional schemes: 1 + 4 years warranty

Types of ac Capacity ( in tons)

Window ac 1.5, 2

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Split ac 1.5, 2

COMPANY: GODREJ

Punch lines: “Introducing India’s most powerful ac”

Basis for campaign: Old and reputed brand, India’s most powerful ac

Features: Powerful compressor, Digital power saver control, Super silent compressor, Bluefin

technology

Promotional schemes: 1 + 4 year warranty

Types of ac Capacity ( in tons)

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Windows ac 1 and 1.5

Split ac 1.5 and 2

COMPANY: HAIER

Punch lines: “Ac as active as technology”

Basis for campaign: Good quality ACs, Active all tech

Features: Active air tech, Healthy negative ions Intelligent UV ray generator, 4 stage air filter ,

Bacteria killing medium, Powerful dehumidifier

Promotional schemes: 1 + 4 year warranty

Types of ac Capacity ( in tons)

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Window ac 1.5 ,2

Split ac 1.5 ,2

COMPANY: ELECTROLUX

Punch line: “Breathe fresh, live fresh”

Basis for campaign: Effective ACs, Active all technology

Features: Oxigenerator technology, Anti-bacteria filter, Rust proof fins, Low electricity bills.

Promotional schemes: 1 + 4 year warranty

Types of ac Capacity ( in tons)

Window 1,1.5,1.7 and 2

Split 1,1.5 and 2

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Floor standing 2 ,2.5

Cassette 2 and 4

COMPANY: VIDEOCON

Punch line: “An air of superiority”

Basis for campaign: Various offers, Blower plus cool

Features: Ionizer, Anti freeze thermostat, Self diagnosis function

Promotional schemes: 1 + 4 year warranty

Type of ac Capacity ( in tons)

Windows ac 1.5 ,2

Spilt ac 2,2.5

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The project deals with the study into the marketing mix of Carrier In the Delhi Air- Conditioner

Market. The report consists of the primary data obtained from the dealers. The attributes,

which defined the data, were shelf space, window display, prices given, p.o.p. material, dealer

preference, general positive and negative attributes for various brands, dealer interface, and

finance schemes offered.

In all I visited 50 outlets spread all over Delhi (includes dealers and retailer), who dealt in air

conditioner I also interviewed 50 customers at showrooms across Delhi. Data thus obtained was

then grouped and analyzed, after which the inferences were drawn.

I observed that L.G. was undoubtedly the market leader. In Delhi air conditioner market LG has

the highest penetration, as it is available in almost 75% of the outlets while Carrier is present in

only 64% of the outlets. L.G. also leads in the other categories like the window display (40%),

shelf space (50%) and POP (40%) while Voltas has the share of 7%, 28% and 34% in the

respective categories. Although Voltas is No.2 brand in Delhi region but it has the highest

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corporate customer or we can say, institutional sales in comparison to other air conditioner

brands.

Of the outlets visited, 44% claim L.G. to be the top Brand whereas Carrier has 21% of the

outlets claim it to be the top Brand. The strengths of L.G. lie in its low price and good quality

whereas Hitachi’s and Carrier’s strengths lie in its superior quality. Whereas, on the negative

side the claim that LG is not as durable as other brands & has a life expectancy less than other

brands like Carrier ,Voltas, General etc

For Carrier the most spoken about negative is its high price & poor after sales service.

Learning from the project

1. LG is undoubtedly the market leader in air conditioners segment of the consumer

durables market in India.

2. According to 31% of the dealers, quality is the most important parameter which

derives the sales.

3. Carrier, Hitachi and General are the most trusted brands in terms of quality. Among

these Carrier is the cheapest and General is the most expensive brand

4. LG, Samsung and Voltas are the most demanded brands because of better visibility due

to more advertisements

5. While visiting the shop we know that LG gives high profit margin as compare to other

competitors.

6. Star rating plays an important role in air conditioners segment.

7. LG has the best network of service centres all over Delhi. It provides the best after sales

service.

8. After sales service is the greatest concern for Carrier .All the dealers were unsatisfied

the service offered by carrier. Dealers claim that there is no follow up calls from Carrier

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Appendix

Carrier India Operations

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BIBLIOGRAPHY

1. WWW.GOOGLE.COM

2. WWW.YAHOO.Com

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3. WWW.MANAGEMENTTODAY.com

4. BUSINESS WORD MAGAZINE

5. BUSINESS TODAY