Company Profile

1

2013 – 2014

INTRODUCTION

After-sales business plays an instrumental role in dictating firms’ financial well-being and

competitiveness. Due to global competition, shrinking profits in primary products sales, and

stagnating revenues, firms have expanded their after-sales businesses to boost sales, enhance

profit, increase customer loyalty, and to differentiate their portfolio. Systematic, integrated

approaches should optimally align after-sales management to the overall objectives of the

firm and the current market situation.

As a result of increased global competition, commoditization of primary products, and

diminishing profit margins, the after-sales business has gained strategic importance for

numerous companies across various industries. Accordingly, the perception of after-sales

services has changed over the past few decades, from the traditional perspective of additional

but necessary costs imposed exclusively by manufacturers (Lele, 1997) towards a potential

source of competitive advantage and business opportunity (Armistead & Clark, 1992;

Wagner & Lindemann, 2008). Due to increased awareness of the strategic value of service,

firms are beginning to shift focus to aftermarkets. The after-sales business has emerged as a

major source of competitive maneuvering, so that firms strive for competitive advantages

with their after-sales service offer. Consequently, more manufacturers are shifting their

emphasis from original products sales to customer needs; customers find value in the trouble-

free operation of products. After-sales services enhance product availability during the entire

product life cycle and are key to long term company success. Users require after-sales

services and assistance to help them gain maximum value from their purchases to the point

that primary product purchase decisions may no longer be solely based on the product's value

(performance relative to cost) but also on the service price, quality, and portfolio available to

support the use of the product. Thus, after-sales services maximize the value extracted by

customers over the entire product life cycle (Goffin & New, 2001).

With the presence of a valuable aftermarket an incentive is created for competition. In

the meantime this attractiveness of the after-sales business containing services and spare parts

is recognized by further parties (e.g. competitors, suppliers) who are trying to gain a share of

the aftermarket.

Dept. of Mgmt, Osmania Degree College for Women, Kurnool

2

2013 – 2014

After the Second World War the markets have gone through a transition, from the

conventional seller marker it has transformed into a buyer’s market. These were a time when

products were made without considering the consumer need. Now the time has changed

market have realized that the products can be sold best if they satisfy consumer’s needs. This

need can be an existing one or a created one .

In this project it has been tried to analyze the After Sales Service of the consumer and also

tried to give the various advantages that the good after sales service can made a consumer

satisfied. The study is being done with reference to Whirlpool Ltd. The Whirlpool limited is

among the one of the leading manufacturer of electronic goods in India.


3

2013 – 2014

COMPANY PROFILE

History:

Whirlpool Corporation is the world's leading manufacturer and marketer of major

home appliances, with annual sales of more than $19 billion in 2011, 68,000 employees, and

66 manufacturing and technology research centers around the world. The company markets

Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other

major brand names to consumers in nearly every country around the world.

Our beginnings, though, were much more humble, based on a business failure and the

vision of one family. In 1908, Lou Upton invested his savings in a venture to manufacture

household equipment. When that company failed to materialize, Upton was offered the

opportunity to select something of value from the failed venture as a return on his investment.

He chose the patents on a hand washing machine that he thought might be electrified.

Lou Upton brought the patents and his innovative vision home to St. Joseph,

Michigan. In 1911, Lou joined his uncle Emory and brother Fred to produce motor-driven

wringer washers as the Upton Machine Company.

STRONG BUSINESS ETHICS

The company's first major order for 100 washing machines came almost

immediately. A problem arose when a cast-iron gear in the transmission

failed — in every single machine. Upon learning of the issue, Lou Upton

replaced the defective parts with a new cut-steel gear. Impressed with the

fledgling company's business ethics, the customer doubled its order to 200

washing machines.

Upton Machine continued to grow. In order to meet increased customer

demand, in 1929 it merged with the Nineteen Hundred Washer Company of New York.

Together they formed the Nineteen Hundred Corporation, and business grew steadily, in spite


4

2013 – 2014

of the Great Depression of the 1930s. We began experimenting with new products,

innovative technologies and strong engineering and sales.

WHIRLPOOL IN THE 1940S AND 1950S

World War II halted washer production, as factories were modified to provide

components for the P-40 Warhawk aircrafts and military equipment. More than two million

units of war materials were produced, including aircraft propeller pitch controls, trailing

edges for fighter wings, hydraulic steering mechanisms for tank retrievers, carburetor parts,

pumps, gears and gear cases.

In the summer of 1945, we began producing washers again, anticipating that within three

years demand would be twice that of 1941. This began a

period of explosive growth that would take us from a

small manufacturer of washers and ironers to a large

manufacturer of a full line of major home appliances,

including the first fully-automatic washer and electric

dryer.

In 1949, we changed our company’s name to Whirlpool

Corporation to contribute to the recognition of our signature brand. We had grown to lead the

industry, achieving $48 million in sales and annual earnings of $3 million.

COMMITMENT TO SOCIETY

Lou and Fred Upton established the Whirlpool Foundationfollowing the war, making a

commitment – a promise – to reinvest in the community. Their intent was to provide financial

and leadership support for nonprofit organizations dedicated to improving the quality of life

in the communities where Whirlpool Corporation operated.

During the post-war boom years of the 1950s, we looked for new ways to expand our product

offering. In 1955, we merged with the Seeger Refrigeration Company, which provided us

with a quality refrigerator line. As part of the merger we also acquired RCA’s air

conditioning and range businesses, allowing us to provide customers with exceptional

products that met their needs. In 1958, we took our first tentative step toward operating in

foreign markets by entering a partnership with Brazil’s Brasmotor S.A., parent of appliance

maker Multibras S.A. Eletrodomesticos.


5

2013 – 2014

EXPANSION AND DEDICATED SERVICE

By the start of the 1970s, Whirlpool offered appliances

to handle laundry, home heating and cooling, and the

full cycle of food preservation, preparation,

consumption and cleanup, in the kitchen. We continued

introducing innovative products that performed more

efficiently and helped make household tasks easier. To

support our consumers, we introduced the Cool Line,

the first toll-free consumer service support program in

the United States.

We formed the Office for Environmental Control in 1970, solidifying our focus on social and

environmental responsibility. This group allowed us to standardize strong environmental

standards across all of our operations. Concurrently, we formed partnerships with

environmental advocates, industry representatives and legislators to help craft robust energy

and water efficiency standards, test procedures and policies, a commitment that continues

today.

THE FIRST SPACE KITCHEN

In October 1960, Whirlpool received a government contract to design and build America’s

first experimental space kitchen. The kitchen included a miniature thermoelectric refrigerator,

freezer, three-cavity oven, self-heated water system, storage space for food and disposal units

for both dry and wet waste. This was the first attempt by appliance engineers to cope with the

problems of zero gravity, and a number of innovative solutions were developed. Our work

helped build public knowledge of and confidence in the space effort. Whirlpool continued

working with the government to develop food and equipment for space travel, pioneering the

development of food, waste management and personal hygiene systems used in all of

NASA’s Gemini, Apollo and Skylab missions.

We began growing our international business, expanding into Mexico. We also built a

manufacturing plant in Pondicherry, India, and began manufacturing and marketing

appliances throughout Europe. In 1986, we purchased the KitchenAid division of Dart and

Kraft, allowing us to continue the excellent tradition of major and countertop appliances for

which KitchenAid is known.


6

2013 – 2014

Whirlpool accelerated our global expansion in the 1990s, with an expanded presence

throughout Europe, Latin America, Asia and parts of

Africa. We were well on our way to becoming a global

force in the home appliance industry and the industry’s

eventual leader.

GLOBAL APPLIANCE LEADERSHIP

In 2006, we took the significant step of acquiring

Maytag Corporation, resulting in an aligned organization able to offer more to consumers in

the increasingly competitive global marketplace. The transaction enabled us to become a

more efficient supplier to trade customers while offering a broader portfolio of innovative,

high-quality branded products and services to consumers.

Our focus on environmental sustainability continued with an emphasis on consistently

offering a full line of energy- and water-efficient products. In 2003, we became the world’s

first appliance manufacturer to announce a global greenhouse gas reduction target, a 3

percent reduction from 1998 levels by 2008. We revised the target in 2007, to a goal of 6.6

percent reduction by 2012. Currently our operations’ release of toxic chemicals in the United

States is nearly 90 percent less than the releases compared to the 1987 baseline year, while at

the same time production increased approximately 80 percent.

COMMUNITY FOCUS

One of the ways we demonstrate our commitment to community and society is through our

partnership with Habitat for Humanity International, which began in 1999, when we began

donating a range and an ENERGY STAR®-qualified refrigerator to every Habitat for

Humanity home built in North America. Our commitment has expanded to include support

for every Habitat home built globally by 2011, either through product donations, cash or

home sponsorship.

Throughout the years, Whirlpool has built a culture of doing the right thing based on living

up to our commitments to stakeholders and by quietly working behind the scenes to

strengthen the economic and social fabric of the communities in which we operate. Our

employees live by the values that have made our company the international leader that it is

today. We are delivering strong performance, providing an outstanding portfolio of brands,

and we’re creating better, more innovative products that improve consumers’ lives in and

around the home each and every day. Nearly 100 years ago, the Upton family continually

improved their washer; they cared about their community, their employees and their


7

2013 – 2014

customers. They believed that "there is no right way to do a wrong thing." We still believe

that today.

LEADING BRANDS

Whirlpool markets some of the world’s most recognized appliance brands,

includingWhirlpool, Maytag, KitchenAid, Jenn-ir, Amana, Bauknecht, Brastemp and Consul.

The Whirlpool brand is the world's No. 1 global appliance brand.

OUR VISION

Every Home… Everywhere… with Pride, Passion and Performance

Our vision reinforces that every home is our domain, every customer and customer activity

our opportunity. This vision fuels the passion that we have for our customers, pushing us to

provide innovative solutions to uniquely meet their needs.

Pride... in our work and each other

Passion... for creating unmatched customer loyalty for our brands

Performance... that excites and rewards global investors with superior returns

We bring this vision to life through the power of our unique global enterprise and our

outstanding people... working together... everywhere.

OUR MISSION

Everyone, Passionately Creating Loyal Customers for Life

Our mission defines our focus and what we do differently to create value. We are a company

of people captivated with creating loyal customers. From every job, across every contact, we

will build unmatched customer loyalty…one customer at a time.

OUR VALUES

Our values are constant and define the way that all Whirlpool Corporation employees are

expected to behave and conduct business everywhere in the world.

Respect — We must trust one another as individuals and value the capabilities and

contributions of each person.

Integrity — We must conduct all aspects of business honorably – ever mindful of the

longtime Whirlpool Corporation belief that there is no right way to do a wrong thing.

Diversity and Inclusion — We must maintain the broad diversity of Whirlpool people

and ideas. Diversity honors differences, while inclusion allows everyone to contribute.

Together, we create value.

Teamwork — We must recognize that pride results in working together to unleash

everyone’s potential, achieving exceptional results.


http://www.whirlpoolcorp.com/brands/whirlpool.aspx

http://www.whirlpoolcorp.com/brands/consul.aspx

http://www.whirlpoolcorp.com/brands/brastemp.aspx

http://www.whirlpoolcorp.com/brands/bauknecht.aspx

http://www.whirlpoolcorp.com/brands/amana.aspx

http://www.whirlpoolcorp.com/brands/jenn_air.aspx

http://www.whirlpoolcorp.com/brands/kitchenaid.aspx

http://www.whirlpoolcorp.com/brands/maytag.aspx

http://www.whirlpoolcorp.com/brands/whirlpool.aspx

8

2013 – 2014

Spirit of Winning — We must promote a Whirlpool culture that enables individuals and

teams to reach and take pride in extraordinary results and further inspire the "Spirit of

Winning" in all of us.

STRATEGY EXECUTION

What truly distinguishes Whirlpool Corporation is our commitment to building strong brands

and a loyal consumer base. Around the globe, our customers trust Whirlpool to make their

lives easier. Everything we do contributes to building unmatched levels of loyalty to our

brands through lifelong relationships with our customers.

We are committed to our brand value-creation strategy—focusing on innovation, cost

productivity, product quality and consumer value. We continue to improve our global

operating platform to ensure we are the best-cost and best-quality appliance manufacturer

worldwide. Our supply chain has

been transformed to better deliver

products to trade customers and

consumers. And we are seeing the

benefits of these actions today

through a stronger network,

increased efficiencies and timely

deliveries.

Our focus now, and in the future, is

on more than just creating great

products. We’re focused on maximizing the benefits of our worldwide network of resources,

which is unmatched in the industry. We’re creating better, more innovative products that

improve consumers' lives—in and around the home—each and every day. And we’re

committed to being an agile, global consumer products company that creates value through

our brands and innovations. We know that our compelling and growing brands, fueled with

innovation, attract and retain loyal customers for life.


9

2013 – 2014

AWARDS AND RECOGNITION

For 100 years, providing products that meet specific consumer needs and doing business with

integrity and character have been our hallmarks. Every day, we work to improve the lives of

consumers and the communities in which we have a presence around the word. We are

humbled when our efforts are recognized by leading publications and organizations.

Fortune Magazine ranked Whirlpool No. 1 in its 2011 World’s Most Admired

Companies® list in the Home Equipment, Furnishings industry and named Whirlpool

to its 2009 Top Companies for Leaders list, ranking the company ninth in North

America and 15th globally (the list is released every two years).

Forbes Magazine and Reputation Institute named Whirlpool one of the Top 25 Most

Respected U.S. Companies for three consecutive years (2008-2011).

Whirlpool ranked No. 85 on the 2011 Corporate Responsibility Magazine 100 Best

Corporate Citizens list. Whirlpool has been included in the list nine out of 12 years.

Fast Company Magazine ranked Whirlpool No. 6 on its 2011 list of the World’s Most

Innovative Companies in the Consumer Products category. This is the second

consecutive year Whirlpool was included in the list.

DiversityInc Magazine ranked Whirlpool No. 49 on its 2011 Top 50 Companies for

Diversity® list.

Whirlpool was named one of the Best Employers in Argentina and one of the Best

Companies to Work For in Brazil (1997-2010), India and Mexico. The company also

earned the Human Rights Campaign Foundation’s Best Places to Work for GLBT

Equality Seal (2004-2010).

Whirlpool was named to Newsweek Magazine’s 2010 Green Rankings, ranking No.

116 overall and 11 in the Consumer Products category. Whirlpool has been included

in the ranking since the list’s inception in 2009.

Whirlpool Corporation’s social and sustainability performance is recognized by

several respected corporate social responsibility indices, including the Dow Jones

Sustainability Index (2005-2011), FTSE4Good Global Indexes (since 2001), MSCI

KLD 400 Social Index (since 1990), MSCI USA Catholic Values Index and Calvert

Social Index (since 2000).

Whirlpool was recognized with its sixth consecutive ENERGY STAR® Partner of the

Year award for Sustained Excellence, the company’s 12th ENERGY STAR award.

The company has been honored with 23 ENERGY STAR awards overall, more than

any other appliance manufacturer


10

2013 – 2014

WHIRLPOOL IN INDIA

Whirlpool, right from its inception in 1911 as first commercial manufacturer of

motorized washers to the current market position of being world's number one

manufacturer and marketer of major home appliances, has always set industry milestones

and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA

with a global presence in over 170 countries and manufacturing operation in 13 countries

with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht,

Laden and Ignis. The company boasts of resources and capabilities beyond achievable

feat of any other in the industry.

Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it

emerged as truly global leader in the1980's. This encouraging trend brought the company

to India in the late 1980s. It forayed into the market under a joint venture with TVS group

and established the first Whirlpool manufacturing facility in Pondicherry.

Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into

Indian refrigerator market as well. The same year also saw acquisition of major share in

TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to

create Indian home appliance leader of the future, Whirlpool India. This expanded the

company's portfolio in the Indian subcontinent to washing machines, refrigerator,

microwave ovens and air conditioners. The company owns three state-of-the-art

manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing

set-ups features an infrastructure that is witness of Whirlpool's commitment to consumer

interests and advanced technology.

The company's brand and image speaks of its commitment to the homemaker from

every aspect of its functioning. It has derived its functioning principles out of an

undaunted partnership with the homemakers and thus a slogan of "You and whirlpool, the

world's best homemaker" dots its promotional campaigns. The products are engineered to

suit the requirements of 'smart, confident and in-control' homemaker who knows what she

wants. The product range is designed in a way that it employs unique technology and

offers consumer relevant solutions.


11

2013 – 2014

PRODUCT RANGE OF WHIRLPOOL

1. LAUNDRYHE Front-Load WashersHE Top-Load WashersHE DryersTraditional WashersTraditional DryersLaundry PairsWasher-Dryer CombosLaundry 1-2-3™ Organizers

5. REFRIGERATORSFrench DoorSide-By-SideBottom-FreezerTop-FreezerFreezersIce Makers

2. COOKINGRangesWall OvensCooktopsHoodsMicrowaves

6. DISHWASHERS & CLEANINGDishwashersCompactorsDisposers

3. FILTERS & ACCESSORIESLaundry AccessoriesKitchen AccessoriesHome Solutions AccessoriesRefrigerators Water Filters

7. HOME SOLUTIONSWater HeatersWater SoftenersWater Filtration SystemsRoom Air ConditionersCentral Heating & Air ConditioningCentral DehumidifiersAir Purifiers & Filters

4. SERVICE & SUPPORTMy AppliancesProduct RegistrationManuals & LiteratureService & RepairProduct HelpService PlanProduct RecallsReplacement PartsDigital Catalog


12

2013 – 2014

PRODUCT PROFILE


13

2013 – 2014

LITERATURE REVIEW

After Sales Service:

Customer service is the provision of service to customers before, during and after a

purchase. According to Turban et al. (2002), "Customer service is a series of activities

designed to enhance the level of customer satisfaction – that is, the feeling that a product or

service has met the customer expectation."

The importance of customer service may vary by product or service, industry and

customer. The perception of success of such interactions will be dependent on employees

"who can adjust themselves to the personality of the guest," according to Micah Solomon.

From the point of view of an overall sales process engineering effort, customer service plays

an important role in an organization's ability to generate income and revenue. From that

perspective, customer service should be included as part of an overall approach to systematic

improvement. A customer service experience can change the entire perception a customer has

of the organization.

Some have argued that the quality and level of customer service has decreased in

recent years, and that this can be attributed to a lack of support or understanding at the

executive and middle management levels of a corporation and/or a customer service policy.

To address this argument, many organizations have employed a variety of methods to

improve their customer satisfaction levels, and other key performance indicators (KPIs).

Customer support

Customer support is a range of After Sales Services to assist customers in making cost

effective and correct use of a product.[5] It includes assistance in planning, installation,

training, trouble shooting, maintenance, upgrading, and disposal of a product.

Regarding technology products such as mobile phones, televisions, computers, software

products or other electronic or mechanical goods, it is termed technical support.

Automated customer service

Customer service may be provided by a person (e.g., sales and service representative),

or by automated means. Examples of automated means are Internet sites. An advantage with

automated means is an increased ability to provide service 24-hours a day, which can, at

least, be a complement to customer service by persons.

Another example of automated customer service is by touch-tone phone, which

usually involves a main menu, and the use of the keypad as options (i.e. "Press 1 for English,

Press 2 for Spanish", etc.)


14

2013 – 2014

However, in the Internet era, a challenge has been to maintain and/or enhance the

personal experience while making use of the efficiencies of online commerce. "Online

customers are literally invisible to you (and you to them), so it's easy to shortchange them

emotionally. But this lack of visual and tactile presence makes it even more crucial to create a

sense of personal, human-to-human connection in the online arena.

Automated means can be based entirely on self service, but may also be based on

service by more or less means of artificial intelligence. An automated online

assistant with avatarproviding automated customer service on a web page.

Examples of customer service by artificial means are automated online assistants that

can be seen as avatars on websites. It can avail for enterprises to reduce their operating and

training cost. These are driven by chatterbots, and a major underlying technology to such

systems is natural language processing.

Instant feedback

Recently, many organizations have implemented feedback loops that allow them to

capture feedback at the point of experience. For example, National Express, one of the UK's

leading travel companies, has invited passengers to send text messages whilst riding the bus.

This has been shown to be useful, as it allows companies to improve their customer service

before the customer defects, thus making it far more likely that the customer will return next

time. Technology has made it increasingly easier for companies to obtain feedback from their

customers. Community blogs and forums give customers the ability to give detailed

explanations of both negative as well as positive experiences with a company/organization.

A challenge in working with customer service, is to ensure that you have focused your

attention on the right key areas, measured by the right Key Performance Indicator. There is

no challenge to come up with a lot of meaningful KPIs, but the challenge is to select a few

which reflects your overall strategy. In addition to reflecting your strategy it should also

enable staff to limit their focus to the areas that really matter. The focus must be of those

KPIs, which will deliver the most value to the overall objective, e.g. cost saving, service

improving etc. It must also be done in such a way that staff sincerely believe that they can

make a difference with the effort.

One of the most important aspects of a customer service KPI is that of what is often

referred to as the "Feel Good Factor." Basically the goal is to not only help the customer have

a good experience, but to offer them an experience that exceeds their expectations. Several

key points are listed as follows:


15

2013 – 2014

1. Know your product – Know what products/service you are offering back to front. In other

words, be an information expert. It is okay to say "I don't know," but it should always be

followed up by "but let me find out" or possibly "but my friend knows!" Whatever the

situation may be, make sure that you don't leave your customer with an unanswered question.

2. Body Language/Communication – Most of the communication that we relay to others is

done through body language. If we have a negative body language when we interact with

others, it shows that we don't care. Two of the most important aspects of positive body

language are smiling and eye contact. Make sure to look your customers in the eye. It shows

that we are listening to them and hearing what they are saying. And of course smiling is more

inviting than a blank look or frown.

3. Anticipate Guest Needs – Nothing surprises your customer more than an employee going

the extra mile to help them. Always look for ways to go above and beyond the expectations

of your customer. In doing so, it helps them to know that you care and it will leave them with

a "Feel Good Factor" that we are searching for.

AFTER-SALES SERVICE

The last few decades have seen a growing trend toward aggressive global competition,

increased marketplace demands, and accelerated technological changes. These developments

are forcing organizations to take closer look at their marketing channel strategy including

addressing the issue of how to distribute their products and offer associated after-sales service

support. Many value-conscious consumers are demanding that a company’s products offer

more value than its competitor’s products not only in its design and manufacturing, but also in

product delivery and support. Increasingly, distribution and service support options available

for a product are key determinations in consumers’ product purchase decision (Loomba,

1998).

Products sale and distribution issues typically involve specific mechanisms for pricing

a product and distributing it to the end consumer. On the other hand, after-sales service

support issues entail all activities undertaken by service support providers (manufacturers,

retailers, and/or independent services) to ensure that a product is available for trouble-free use

to consumers over its useful life span. Management experts and marketing channel analysts

alike agree that distribution and after-sale service support functions do increasingly warrant

significant attention because they make up for an integral part of the product package

(Loomba, 1998).


16

2013 – 2014

Today competitive market caused that many company re-evaluate their strategy to be

more differentiate from others. After- sales service is one of the elements, which help all firms

in this matter. Many new breeds of high-tech companies are now discovering that they need to

differentiate themselves from rivals in appealing to customers and that technology alone will

not do it anymore. After-sales service support is being recognized as one of the competitive

differentiators for most firms, which now produce in the same low-cost regions of the world

(Lele and Sheth, 1987).

Herve Mathe (1999) also emphasizes on after-sales service as a strong marketing tools,

which help firms to be competitive in the market. He mentions; Service is proving to be a

source of competitive advantage that enables firms to remain leaders in a highly competitive

market or to create differentiation, which will enable a challenger to attack and overtake the

leader. Therefore for using this advantages in a best way specially in a depressed or highly

competitive market, the outcome of an inadequate balance between service function

integration and separation brings about conflicting objectives between the different parties

involved in the ‘service chain’: Marketing, Sales, R&D, Production, Supply, After sales, etc.

This may lead to internal conflicts which progressively intensify, thus reducing the

effectiveness, and profitability, of direct and indirect after sales support activities.

Pual (1993) believes an essential part of marketing strength is service support. When

customers buy a product, they expect certain levels of post purchase support to go along with

it. Defining those expectation is critical to marketing success and will be even more important

when markets mature.

However, industry experts caution that too many companies mismanage the total cost

of providing superior after-sales service support and so undo part of the competitive edge won

via technology and pricing (Landau, 1995).

According to Goffin (1999 & 2001) Customer support, which is also referred to as product

support, after-sales service, technical support, or simply service, is important for because it:

1. Can be a major source of revenue, although it often receives too little management

attention.

2. Is essential for achieving customer satisfaction and good long-term relationship – as

identified by a number of researches.

3. Can provide a competitive advantage. This is true in most high-tech industries but also

in some low-tech sectors. As product differentiation becomes harder in many markets,

companies are increasingly looking to customer support as a potential source of

competitive advantage. A number of examples of how companies have own market


17

2013 – 2014

share through good support can be found in the trade press.

4. Play a role in increasing the success rate of new products.

5. Needs to be fully evaluated during new product development, as good product design

can make customer support more efficient and cost- effective.

Increased competition within many industries has led to increased attention on customer

service. Various studies indicate that upset customers may have big effect on sales of

company. Therefore, all firms try to put all their attention to keep their customers satisfied and

fulfill their needs and wants as much as possible. One of the strong tools which help all

companies in this matter is providing best after-sales service.

In this regard Tore (2003) stats; companies developing products and services need to

understand what consequences and benefits product attributes have on customer needs and

value, and how they affect customer expectation and satisfaction. Customer satisfaction is, in

other words, not only decided by value and performance of hardware purchased, but by the

total value received, and by the quality of the interaction and relationship experience

throughout the service life of the product.

Service traditionally has been considered a post-sale capability, primarily focused on

problem resolution or providing technical assistance. Now, these definitions are too limited.

Customers – whether internal or external – consider service a collective, organizational

responsibility rather than a functional or departmental one. As the relationships customers

have with companies continue to widen, anyone who interacts with a customer is in a position

either to jeopardize or to enhance that relationship. To ensure quality service, every person

who interacts with customers in any way must have the appropriate skills to respond,

efficiently and effectively, to customer needs (Jennifer Potter, 1994).

Providing good and reliable product, which is another main target of each company can be

achieved by good after sales service. Avinder (1996) believes; increasingly, after sales

customer service is becoming the order-wining criteria for most firms and is now being

recognized as an important research priority. According to a major study conducted by the

conference Board, the primary rationale of the manufacturers for offering after-sales service is

the need to support their products. In fact after sales service adds the product’s value and is

often treated as integral part of the product.

Proper after sales service helps companies in customer retention too. Many companies have

begun to align entire organization to deliver excellent service, since they know their

investment will pay off in terms of competitive advantage and customer retention. (Jennifer


18

2013 – 2014

potter, 1994)

Customer long-term retention will really helps companies to be more competitive in

the market and enable them to implement their entire marketing plan. The recent and ongoing

changes in the business environment – most notably escalating competition, increasing

globalization of markets, and more demanding customers – are making it difficult to compete

effectively on the basis of traditional marketing mix variables alone. This reality is perhaps the

primary impetus for the increasing attention that relationship marketing has been receiving

from both practitioners and researchers. And, given that long-term customer retention is a key

aim of relationship marketing, the focus is now shifting from merely to customers to serving

them effectively. (Parasuraman, 1998)

After sales service is often in response to a customer problem, e.g. product failure

restoration, problem diagnosis, expert assistance to resolve a problem, problem with using the

product, etc. Therefore, after sales service is a recovery process that attempts to resolve a

customer problem, which, if not resolved, causes dissatisfaction and less satisfied customer.

The service function therefore attempts to recover the customer satisfaction to the level it was

before the occurrences of problems (Gronroos, 2000).

Finally, we may see the main important effects of after-sales service in improvement

of each firm by Paul (1993) classification, which expressed the four main important aspects of

after sales service as follows:

First, service is perceived as high-profit, high-growth opportunity. With profit margins

for equipment sales under pressure from foreign and domestic competition, many U.S. firms

target after-sales service as a key area for investment, a sharp contrast to its historical image as

a backwater meriting little attention from top management.

Second, managers are also beginning to realize that customers will buy more often and

more quantities from a company they feel will support them and give maximum post sale

satisfaction. After sale service, therefore, is an important aspect of a company’s marketing mix

to build loyalty and repeat business. The after market is a crucial ingredient for success in

international marketing.

Third, Companies are also realizing that technological and feature advantages are short

lived. The rapid diffusion of technological change makes it increasingly difficult to maintain a

competitive advantage based on product features or design. As a result, both customers and


19

2013 – 2014

manufacturers focus on service as the key differentiator. Moreover, firms’ abilities to provide

service support have increased significantly.

Fourth, Customer expectations are increasing and buyers today are demanding ever-

higher levels of service support. Customer expectations will create opportunities for

innovative products that meet changing service support needs and will increase competitive

pressures to continually improve product reliability and serviceability. They will make

conventional service contracts and endangered species, force manufacturers to unbundled the

prices of products and support services, and create a major profit squeeze in key segments of

such information age industries as telecommunications, computers, and office automation.


20

2013 – 2014

OBJECTIVES

To study about the customer satisfaction level towards the services of the company

To study the various marketing strategies adopted by whirlpool.

To study about the local agents and their supply of the recent models.

To study about the reason of homemakers take in choosing them for their homes.

To study about the relationship between whirlpool and the people.

To study the attitude and behavior of the customer towards the Whirlpool company.

To suggest the ways to promote Whirlpool India Ltd.


21

2013 – 2014

RESEARCH METHODOLOGY

The essential purpose of marketing research is to provide information, which will

facilitate the identification of an opportunity or problem situation and managing the best

possible decision when such situations are encountered.

Research methodology is a basic plan, which guides the data collections and analysis

phases of the research project. It is a framework, which specifies the type course of the data

and the data collection periods

Data collection:

The task of data collection begins after a research problem has been defined and

research design (or) plan is prepared. While deciding about the method of data collection to

be used for the study, the researcher should keep in mind two types of data namely,

1. Primary data

2. Secondary data

1. PRIMARY DATA:

Primary data are those, which are collected for the time, and they are original in character.

They are primary data collected by the investigator himself to study any particular problem.

2. SECONDARY DATA:

Secondary data are those which are already collected by someone for some purpose

and are available for the present study.

For instance, the data collected during census operations are primary data to the

department of census and the same data, if used by a research worker for some study, are

secondary data. Our sample survey is based on Primary data.

Sample unit:

I have chosen my sampling area at Kurnool City for market survey of the Whirlpool

Refrigerator.

Sampling Size:

The sample size taken for the survey 60 but due to lack of the whirlpool users the

study remains its sampling size as 35 only.

Method of Sampling:

Random sampling Method has been used.


22

2013 – 2014

LIMITATIONS

Though the present study aimed to achieve the above -mentioned objectives in full

earnest and accuracy, it was hampered due to certain limitations. Some of the limitations of

this study may be summarized as follows:

Getting accurate responses from the respondents due to their inherent problems were

difficult. They were partial, and refused to cooperate.

Since we did not had the privilege to work on a large scale, so many findings and

recommendations may not be as much in tune with their ground realities as may be

considered desirable.

The study was limited to Kurnool city only.

The time availability might be the major consideration factor.

The study is based on only few customers of Kurnool City.


Company Profile

Documents

Transcript of Company Profile