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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
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)


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

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
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.

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), 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 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

• 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.
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 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

• 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
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
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 home care.
SWOT ANALYISIS

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:

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.


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
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 Value (Rs. in
(Units) 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 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 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.

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.

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

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,

Organization Individuals - Entire family, Shops, ClinicsOrganizations –


s 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

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.

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
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/-

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%

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

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.

Most Important Percentage of


S. No Parameter 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.

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
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 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 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


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


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

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
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 1.5, 2
ac

Split ac 1.5, 2
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)


Windows 1.5, 2
ac

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 Capacity ( in tons)


ac

Window ac 1.5, 2

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)

Windows 1 and 1.5


ac

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)

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

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 1.5 ,2
ac

Spilt ac 2,2.5
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 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
Appendix

Carrier India Operations


BIBLIOGRAPHY
WWW.GOOGLE.COM
WWW.YAHOO.Com
WWW.MANAGEMENTTODAY.com
BUSINESS WORD MAGAZINE
BUSINESS TODAY

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