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    A Study of Consumer Durable Market for Samsung Electronics

    SAMSUNG ELECTRN!CS

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    INDEX

    Sl. No. Contents Page no.

    1. Introduction 4

    2. Industry Profle 6

    3.CompanyProfle 8

    4. Product Profle 16

    5.Objectie o!"tudy 1#

    6. $esearc% &et%odolo'y 2(

    i. Primary data

    ii. "econdary data

    iii. "amplin'

    i. "cope o! t%e study

    . )imitations o! t%e study

    #. *%eoretical +ac,'round o! t%e study 23

    8. -ata nalysis 26

    /. 0indin's 4(

    1(.$ecommendations 41

    11. Conclusion 42

    12. nneure 43

    13. +iblio'rap%y 48

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    INTRODUCTION

    +e!ore t%e liberaliation o! t%e Indian economy only a !e

    companies li,e elinator odrej lyn and 7oltas ere t%e major

    players in t%e consumer durables mar,et accountin' !or no less t%an

    /( o! t%e mar,et. *%en a!ter t%e liberaliation !orei'n players li,e

    ) "ony "amsun' 9%irlpool -aeoo and ia came into t%e

    picture.

    *oday t%ese players control t%e major s%are o! t%e consumer

    durables mar,et. Consumer durables mar,et is epected to 'ro at2(:3( in 2(13:2(14. It is 'roin' ery !ast because o! rise in liin'

    standards easy access to consumer fnance and ide ran'e o!

    c%oice as many !orei'n players ere enterin' in t%e mar,et it% t%e

    increase in income leels easy aailability o! fnance increase in

    consumer aareness and introduction o! ne models t%e demand

    !or consumer durables %as increased si'nifcantly. Products li,e

    as%in' mac%ines air conditioners microae oens teleisions

    ;*7< ere no lon'er considered luury items. =oeer t%ere ere

    still ery !e players in cate'ories li,e acuum cleaners and

    dis%as%ers Consumer durables sector is c%aracteried by t%e

    emer'ence o! &>Cs ec%an'e o?ers discounts and intense

    competition. *%e mar,et s%are o! &>Cs in consumer durables sector

    is 65. &>C@s major tar'et is t%e 'roin' middle class o! India.

    &>Cs o?er superior tec%nolo'y and serice to t%e Consumers

    %ereas t%e Indian companies compete on t%e basis o! frm 'rasp o!

    t%e local mar,et t%eir ell:ac,noled'ed brands and %old oer ide

    distribution netor,. =oeer t%e penetration )eel o! t%e

    consumer durables is still lo in India. Indian Consumer durables

    mar,et used to be dominated by !e domestic players li,e odrej

    7oltas and elinator. +ut post liberaliation many !orei'n companies%ae entered into Indian mar,et det%ronin' t%e Indian players and

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    dominatin' Indian mar,et t%e major cate'ories bein' *7

    $A0$I$*O$ &IC$O97A O7A> and 9"=I> &C=I>A".

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    India bein' t%e second lar'est 'roin' economy it% %u'e

    consumer class %as resulted in consumer durables as t%e !astest

    'roin' industries in India. ) "&"B> t%e to orean companies

    %ae been maintainin' t%e lead in t%e mar,et it% ) bein' leader

    in almost all t%e cate'ories.

    *%e rural mar,et is 'roin' !aster t%an t%e urban mar,et alt%ou'%

    t%e penetration leel is muc% loer .*%e *7 se'ment is epected to

    t%e lar'est contributin' se'ment to t%e oerall 'rot% o! t%e

    industry. *%e risin' income leels double:income !amilies and

    consumer aareness ere t%e main 'rot% driers o! t%e industries.

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    INDUSTRY PROFILE

    *%e Consumer -urables industry consists o! durable 'oods andappliances !or domestic use suc% as teleisions re!ri'erators air

    conditioners and as%in':mac%ines. Instruments suc% as cell p%ones

    and ,itc%en appliances li,e microae oens ere also included in

    t%is cate'ory. *%e sector %as been itnessin' si'nifcant 'rot% in

    recent years %elped by seeral driers suc% as t%e emer'in' retail

    boom real estate and %ousin' demand 'reater disposable income

    and an oerall increase in t%e leel o! auence o! a si'nifcant

    section o! t%e population. *%e industry is represented by major

    international and local players suc% as +P) 7ideocon 7oltas +lue

    "tar Onida ;&I$C Alectronics

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    Companies li,e ) 9%irlpool and "amsun' %ae re'istered double:

    di'it 'rot% in t%e direct cool re!ri'erator mar,et.

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    In t%e case o! as%in' mac%ines t%e semi:automatic cate'ory it% a

    %i'%er base and !ully:automatic cate'ories %ae 'ron by 4 per cent

    to 626((( units and by 8 per cent to 31/((( units respectiely. In

    t%e air:conditioners se'ment t%e sales o! indo Cs %ae 'ron by

    32 per cent and t%at o! split Cs by /# per cent.

    "ince t%e penetration in t%e urban areas !or t%ese products is

    already Fuite %i'% t%e mar,ets !or bot% *7 and re!ri'erators ere

    s%i!tin' to t%e semi:urban and rural areas. *%e 'rot% across product

    cate'ories in di?erent se'ments is assessed in t%e !olloin'

    sections.

    Consu$er Ele%troni%s

    *%e *7 production as 16.(2 million units in 2(12:13 and is

    epected to 'ro by at least 2# per cent. t t%e disa''re'ated leel

    conentional *7 olumes %ae been !allin' %ile Gat *7s %ae 'ron

    stron'ly. &ar,et sources indicate t%at most *7 majors %ae p%ased

    out conentional *7s and %ae been instead !ocusin' more on Gat

    *7s. *%e Gat se'ment o! *7s no accounts !or oer 6( per cent o!

    t%e total domestic *7 production and is li,ely to be around #( per

    cent in 2(13:14. =i'%:end products suc% as liFuid crystal display

    ;)C-< and )A- *7 're by 4(( per cent and 2(( percent

    respectiely.

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    CO&P'NY PROFILE

    S'&SUN! ( INTRODUCTION

    )*ision +,+,-

    "amsun' Alectronics@ ision !or t%e ne decade is HInsire t#e

    /orld Createt#e Future.H

    *%is ne ision reGects "amsun'

    Alectronics commitment to inspirin'

    its communities by leera'in'

    "amsun'@s t%ree ,ey stren't%sD

    J>e *ec%nolo'yK JInnoatie ProductsK and JCreatie "olutions.K

    :: nd to promotin' ne alue !or "amsun'@s core netor,s ::

    Industry Partners and Amployees. *%rou'% t%ese e?orts "amsun'%opes to contribute to a better orld and a ric%er eperience !or all.

    )&ission-

    Aeryt%in' done at "amsun' is 'uided by t%eir missionD to be t%e

    best Jdi'ital:CompanyK.

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    "amsun' 're into a 'lobal corporation by !acin' c%allen'es directly.

    In t%e years a%ead our dedicated people ill continue to embrace

    many c%allen'es and come up it% creatie ideas to deelop

    products and serices t%at lead in t%eir mar,ets. *%eir in'enuity ill

    continue to c%art "amsun's course as a proftable responsible

    'lobal corporation.

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    S'&SUN! 0ISTORY

    +,12

    "amsun' Alectronics launc%ed alay "4 in t%e oreanmar,et and 'lobal mar,ets

    "amsun' Alectronics be'an mass producin' t%e orlds frst2( nanometre 4b ultra %i'%:speed mobile -$&

    "amsun' Alectronics uneiled alay "4 in t%e B" "amsun' +ioepis entered into t%e deelopment and

    mar,etin' partners%ip it% &erc, o! t%e B" "amsun' recorded t%e accumulated 'lobal s%ipment olume

    o! (.1 billion units it% alay " smart p%one series

    +,11

    $eceied Innoation aards at Consumer Alectronics "%o

    ;CA" 2(11< !or 3# products

    +,1,

    alay " leadin' android p%one

    "ales o! t%e alay " topped 1( million units just seenmont%s a!ter its launc% in Lune 2(1(

    +,,3 >o.1 orldide mar,et s%are position !or *7s ac%ieed !or

    t%e seent% Fuarter in a ro

    -eeloped t%e orld@s frst 3(nm:class 64b >>-

    0las%M memory

    +lac, Lac, bestoed t%e +est "mart P%one aard at C*Iin t%e B.".

    ttained >o.1 orldide mar,et s%are position !or )C- !or

    t%e sit% year in a ro

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    +,,4

    -eeloped t%e orld@s frst real double:sided )C-

    -eeloped t%e orlds@ frst 5(nm 1 -$&

    Bneiled 1(& piel camera p%one

    )aunc%ed H"tealt% 7acuumH a acuum cleaner it% t%e

    orld@s loest leel o! noises

    )aunc%ed t%e orlds@ frst +lu:$ay -isc Player

    -eeloped 1.#2H"uper:$eGectie )C- "creen

    +,,5

    arded "amsun' as t%e +est $etailer o! t%e year 2((5 in

    t%e consumer -urables cate'ory.

    &r. ". =. O% appointed as t%e President and C%ie!

    Aecutie ONcer o! "amsun' "out% 9est sia.

    +,,6

    $eceied t%e olden Peacoc, "pecial commendation

    Certifcate !or Corporate "ocial $esponsibility.

    India made re'ional %eadFuarters !or "amsun' "out%estsia.

    &r. . ". im appointed as t%e 0irst President and C%ie!

    Aecutie ONcer o! "amsun' "out% 9est sia.

    +,,2 Inau'urated "amsun'@s ne =i'%:*ec% adanced

    $e!ri'erator !acility.

    Commencement o! production at re!ri'erator !acility in>oida.

    &er'er o! "IA) it% "AII*.

    "o!tare tec%nolo'y par, set up at >oida

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    +,,+

    Construction commences !or 5(((((( re!ri'erator plantin >oida

    "amsun' uneils ne tec%nolo'y !or Consumer =ome

    Antertainment ;->IeMoida manu!acturin' comple.

    "amsun' India currently employs oer 16(( employees it% around

    18 o! its employees or,in' in $esearc% -eelopment.

    S'&SUN! !LO8'L

    T#e DN' o9 Digital Inno:ation

    "amsun' Alectronics is a 'lobal leader in semiconductors

    telecommunications di'ital media and di'ital coner'ence

    tec%nolo'ies it% 2((4 parent company sales o! B"E55.2+n and net

    income o! B"E1(.3+n. Amployin' appro. 113((( people in oer /(

    oNces in 48 countries t%e company %as o! 5 main business unitsD

    -i'ital ppliance +usiness -i'ital &edia +usiness )C- +usiness

    "emiconductor +usiness and *elecommunication >etor, +usiness.

    $eco'nied as one o! t%e !astest 'roin' 'lobal brands "amsun'Alectronics Corporation is t%e orlds lar'est producer o! Colour

    &onitors *7s &emory C%ips and *0*

    )C-s.

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    Custo$ized rodu%ts 9or Indian Consu$ers

    "amsun' understands t%e local cultural sensibilities to

    customie its products accordin' to t%e Indian mar,et. It %as

    set up a Jusability labK at t%e Indian Institute o! *ec%nolo'y in

    >e -el%i to customie "amsun' products to meet t%e specifc

    needs o! Indian consumers. *%is industry:institute partners%ip

    is %elpin' "amsun' to study and analye consumer response in

    aspects o! product desi'n includin' aest%etics er'onomics

    and inter!ace.

    *%rou'% its researc% done on consumer pre!erences in India

    "amsun' %as concluded t%at Indian consumers ant more

    sound oriented products. *%us t%e "amsun' teleisions !or

    India %ae a %i'%er sound capacity t%an t%eir !orei'n

    counterparts.

    0or t%e semi:automatic se'ment o! "amsun' as%in'

    mac%ines "amsun' %as introduced !or t%e frst time in India a

    !eature called "uper -ry. It is present in t%ree o! "amsun's

    semi automatic models and dries t%e clot%es better t%an t%e

    rest.

    "amsun' as%in' mac%ines %ae an additional menu t%at

    ta,es care o! t%e local Indian ardrobes. *%ey also %ae a

    memory re:start t%at ta,es care o! t%e !reFuent poer !ailures

    in India.

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    PRODUCTPROFILE

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    O8;ECTI*ES OF T0E PRO;ECT

    *o fnd number o! brands o! consumer durable in Arna,ulamdistrict.

    *o study brand pre!erence o! consumer !or consumer durable'oods.

    *o fnd most important parameter !or selection o! brand o! )C-

    *7 $e!ri'erators 9as%in' mac%ine -7- &icroae oen.

    *o study proft mar'in o! major brands in consumer durable.

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    Resear%# &et#odology procedures to be used !or t%e study amon'

    retailersQdealer and. =oeer it as eclusiely personal interie.

    18

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    Data Colle%tion&C=I>A

    INTERPRET'TION is on

    3rd

    it% 18.

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    &ost i$ortant ara$eter 9or $ore sale o9 T*

    Ta?le No.6

    Sr. No.

    REASONS FOR MORE

    SALES

    NO. OF

    RESPONDENTS

    PERCENTAG

    E

    1 Price 28 28

    2 Ruality 3( 3(

    3 "erice 1# 1#

    4 dertisement 15 15

    5 "c%emes 1( 1(

    *O*) 1(( 1(("ourceD : "urey

    !ra# No.6

    NO. OF RESPONDENTS

    Price Ruality "ericedertisement

    "c%emes

    1(

    15

    1#

    28

    3(

    INTERPRET'TION 18 18

    3 9=I$)POO) 16 16

    4 7I-AOCO> 13 13

    5 "O>T 11 11

    6 O-$AL / /

    # P=I)IP" # #

    8 A>"*$ 5 5

    *O*) 1(( 1(("ourceD :"urey

    !ra# No.12

    0ig# Prota?le 8rand25

    2(

    15

    1(

    5

    (

    ) "&B> 9=I$)POO) 7I-AOCO> "O>T O-$AL P=I)IP"

    A>"*$

    INTERPRET'TION 15

    4 -7A$*I"&A>* * $B$) $A 13

    5 I&P$O7A RB)I*T 1(6 $AB)$ "C=A&A" /

    *O*) 1((

    "ourceD :"urey

    !ra# No.16

    35

    3(

    25

    2(

    15

    1(

    5

    (

    0"* >- $A-BCAP$ICA" I>C$A"A

    -7A$*I"&A>* I&P$O7A $AB)$

    $AB)$ -A)A$* $B$)$A RB)I*T "C=A&A"

    0*A$")A" &$I>

    "A$7ICA

    INTERPRET'TION !or increase t%e

    sales.

    !ter t%at Prices o! t%e product s%ould be economic. -ealer &ar'in

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    s%ould increase !or motiation o! dealers.

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    FINDIN!

    9e came to ,no %ile isitin' t%e s%op most o! t%e dealers sold

    entire consumer durable product includin' *7 $e!ri'erator 9as%in'

    &ac%ine -7- &icroae oen.

    9e ,no t%at durin' t%e surey in consumer durable industry in

    Arna,ulam district ) is leadin' in 9as%in' &ac%ine $e!ri'erator.

    "tudy s%os t%at Fuality is most important parameter !or more sales

    o! teleision and only t%en price is considered by consumers.

    "tudy s%os t%at Fuality o! t%e product is most important

    parameter !or $e!ri'erator only t%en price is considered by

    consumers.

    9%ile isitin' t%e s%op e came to ,no t%at Fuality is most

    important parameter %ic% is a?ect on more sales o! 9as%in'

    &ac%ine.

    ccordin' to "urey P%ilips is most popular brand !or -7-

    "amsun' is t%e popular brand !or *eleision.

    9e came to ,no t%at %ile isitin' t%e s%op enstar is most

    pre!erable brand !or &icroae oen because o! t%eir Fuality.

    9%ile isitin' t%e s%op e ,no t%at ) is 'ies %i'% proft mar'in

    as compare to ot%er competitors.

    9%ile isitin' t%e s%op dealers su''ested t%at a!ter sales serice is

    most important !actor %ic% contributes toards t%e sales o!

    Consumer durables.

    ll t%e dealers ere not satisfed it% t%e proft mar'in.

    "&"B> product is costly as compare to ) and 7I-AOCO>.

    &aimum rural area is coered by 7I-AOCO> because o! t%eir lo

    price products.

    9e came to ,no %ile isitin' t%e s%ops t%at t%ere as bi' problem

    o! a!ter sales serice.

    &any dealers ere !acin' t%e problem o! a!ter sale serice because

    t%ere is no !ollo up calls !rom "&"B>.

    -emo calls also not done properly.

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    ) and 7ideocon is t%e main competitor o! "&"B>.

    dertisin' o! "&"B> *7 is more e?ectie as compared to t%ecompetitors.

    "ales promotion sc%eme ere suNcient.

    SU!!ESTIONS RECO&END'TION

    Company s%ould improe t%e a!ter sales serice o! products as it is

    t%e main !actor !or t%e sales o! consumer products.

    I! t%e "&"B> )td. reduces t%eir product price li,e ) and

    7I-AOCO> t%en "&"B> ill ta,e oer t%e ) in all cate'ories.

    Company s%ould distribute 'i!t items !or ma,in' brand popularamon' people.

    Company s%ould introduce lo price and lo poer consumption

    $e!ri'erator !or acFuirin' t%e middle income 'roup.

    -ealer desire more adertisement to be done t%rou'% local

    nespaper and cable *7 ads. *o ma,e consumers aare about t%e

    product.

    Prompt o! serice in time.

    dertisements o! t%e companys products s%ould !ocus on Fuality

    rat%er t%an price.

    Company s%ould tar'et upper middle class or premium classcustomers.

    Company s%ould introduce lo cost products to satis!y t%e needs o!

    lo or middle class.

    -emo calls as ell as !ollo up =elp Company to maintain customer

    relations%ip and %ence t%e company s%ould !ocus on t%ese aspects.

    "&"B> ltd. s%ould concentrate on a!ter sales serice.

    "&"B> ltd. s%ould try to trap t%e rural mar,et.

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    CONCLUSION

    9it% respect to t%e aboe study and t%e fndin's t%ereby t%e

    company %as defnitely entrenc%ed into t%e urban mar,et.

    9it% !e more concerted e?orts t%e said or'aniation needs to

    enter t%e rural mar,et in order to completely establis% itsel! all

    oer.

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    'NNEXURE

    'G. HUESTIONN'IRE $ ) $ 7I-AOCO> $ O>I- $ ">"BI

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    6G /#at is t#e i$ortant ara$eter 9or $ore sales o9Tele:ision ?rand

    $ Price $ Ruality $ "erices $ dertisement $ "c%emes

    5G /#i%# is $aBor ?rand o9 Re9rigerator you sell 9ro$ yours#o

    $ O-$AL $ 9=I$)POO) $ A>"*$$

    )$

    "&"B> $ 7I-AOCO> $ A)7I>*O$

    4G /#at is t#e i$ortant ara$eter 9or $ore sales o9Re9rigerator ?rand

    $ Price $ Ruality $ "erices $ dertisement $ "c%emes

    3G /#i%# is $aBor ?rand o9 /as#ing &a%#ine you sell 9ro$ your

    s#o

    $ I0+ $ 9=I$)POO) $ A>"*$ $ )

    $ "&"B> $ 7I-AOCO> $ A)7I>*O$$

    O-$AL

    8< /#at is t#e i$ortant ara$eter 9or $ore sales o9 /as#ing

    &a%#ine ?rand

    $ Price $ Ruality $ "erices $ dertisement $ "c%emes

    7G /#i%# is $aBor ?rand o9 D*D you sell 9ro$ your s#o

    $ "&"B> $ ) $ 7I-AOCO>$

    O>I-

    $ ">"BI $ P=I)IP" $ I>*AU $"O>T

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    1,G /#at is t#e i$ortant ara$eter 9or $ore sales o9D*D ?rand

    $ Price $ Ruality $ "erices $ dertisement $ "c%emes

    11G /#i%# is $aBor ?rand o9 &i%ro"a:e you sell 9ro$ yours#o

    $"&"B> $ ) $ 7I-AOCO>$

    A>"*$

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