war

PROJECT REPORT

ON

“Competitor Analysis Of Whirlpool Corporation With

Special Reference To The Stabilizer Market In Lucknow.”

PREPARED FOR AND PRESENTED TO

WHIRLPOOL OF INDIA LIMITED

UNDER THE GUIDANCE OF

COMPANY SUPERVISOR NAME COLLEGE MENTOR NAME

Mr. Kuldeep Dubey Ms. Surabhi Mukherjee

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD

OF POST GRADUATE DIPLOMA IN MANAGEMENT

BY

MR. ROSHAN PRASAD KARN

IEM – MANAGEMENT COLLEGE

ANWARI BARABANKI

(2009- 2011)

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DECLARATION

I, Mr.Roshan Prasad Karn here by, declare that the project report

entitled ““Competitor analysis of whirlpool corporation with special

reference to the stabilizer market in Lucknow.”, has been done by

me under the supervision of Mr.KULDEEP DUBAY Asst. Branch manger

of whirlpool, Lucknow and under the able guidance of Ms. Surabhi

Mukherjee, Faculty, I.E.M Management College, and it has not been

submitted earlier to any university or any other institution.

(ROSHAN PRASAD KARN)

PLACE: LUCKNOW

DATE:

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ACKNOWLEDGEMENTS

I wish to express my gratefulness to Miss SURABHI MUKHERJEE, faculty and my

mentor for the project, I.E.M Management College for her constant guidance

during the project.

I am extremely indebted to Mr. SANJEEV SONI, Branch Manager, Service

Department, Whirlpool, Lucknow for giving permission to undertake the project

work in his organization.

It is a great privilege to me to express my sincere thanks to Mr.KULDEEP DUBAY,

Asst. Manager, Service Department, Whirlpool for his help, cooperation and

support during my project work.

Lastly, I have absolutely no words to express my feelings of gratitude to the staff

members of marketing executives for their full cooperation and valuable

suggestions in the completion of my project work.

(ROSHAN PRASAD KARN)

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Table Of Content

Description Page no.

Chapter-1 Introduction 6 – 7

Chapter-2 Industrial Profile 8 – 9

Chapter-3 Company Profile 11 – 18

Chapter-4 Organization Chart 19 – 20

Chapter-5 Product Range 21 – 30

Chapter-6 Project Profile 31 – 32

Chapter-7 Research Methodology 33 – 38

Chapter-8 Observation and Findings 39 – 50

Chapter-9 Competitive Analysis 51 – 55

Chapter-10 Suggestions 57 – 59

Chapter-11 Conclusion 60 – 61

Bibliography 62 – 64

ANNEXURE 65 – 66

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EXECUTIVE SUMMARY

The objective of summer training from academic learning point of view is to provide an

interaction with real world and understand the problems, issues and challenges being faced by

corporate world, and to give an opportunity to the student to apply the learning at campus. The

trainee is expected to work on live projects and work out a feasible solution for the same. For the

learner, it is an opportunity to understand about the functioning of the organization at broader

level, understanding and experiencing what to expect after joining the corporate world. It is an

opportunity to understand work culture.

On 17th June 2010 I started my project under the guidance of Mr. Kuldeep Dubey (Asst.

Manager) LUCKNOW. I have been allocated the area for survey in LUCKNOW. Areas

covered by me are Naka Hindola, Indiranagar, Rajajipuram, Alambagh etc.

In 1st phase of this project I have visited service centre of Whirlpool at Rajajipuram for

collecting technical information of stabilizers that Whirlpool manufactures.

In 2nd phase of the research I have visited to dealers of stabilizers in Lucknow for doing

survey about different brand of stabilizers.

In 3rd phase I have prepared a summary report of Lucknow electronic market on that

basis it observed that stabilizer market is on peak in Lucknow due to problem of

voltage fluctuation and thus competition is enormous.

In 4th phase I prepared few questionnaire and on that basis done survey in different

electronic retail outlets in Lucknow.

In 5th phase of the research I analyzed the entire thing and on that basis I prepared a

report.

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CHAPTER-1

INTRODUCTION

INTRODUCTION TO STUDY

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“COMPETITOR ANALYSIS OF WHIRLPOOL CORPORATION WITH SPECIAL

REFERENCE TO THE STABILIZER MARKET IN LUCKNOW.”

In the given topic, the research is to be done for finding industry functioning on the

basis of competition it is facing from its competitors.

The stabilizer market is covered by huge number of marketers creating competition for

each others. The marketing strategy of all have to analysed and a model is to be drawn

suggesting the company how to increase market share of stabilizers

The research was important with a perspective of creating and developing new horizons

of marketing. The new horizons can be developed with a preview of newly developed

project along with the developing projects by doing a potential analysis of company’s

marketing and its competitors strategies.

Market research done in different area of Lucknow can give the resultant in the form of

cause and effect relationship where company can assess its competitor and frame there

strategies based on that.

This topic was important for Whirlpool hence it was selected. Through this topic we can

analyse the competitive environment and could find that where company stands in

stabilizer market.

This topic will also help to understand different market strategies adopted by different

marketer for increasing sale.

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CHAPTER-2

INDUSTRY PROFILE

INDUSTRY PROFILE

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Stabilizers are referred as consumer durable product which is also presented as accessories by many company manufacturing it. As stabilizers are basically used for controlling voltage for uninterrupted working of A.C, Refrigerator, T.V etc thus it is promoted as accessories.

The stabilizer market is very struggling area of interest for organized sector as the market covered by unorganized sector is higher in percentage in comparison to the organized sector. Local brands are enormous in number in the market that it is difficult to make a place in the market with bang.

FEW MAJOR PLAYERS IN THE MARKET FOR STABILIZERS ARE:

1. MARK2. CHARAN3. V-GUARD4. STAMBH5. STERLITE6. UNIVOLT

Beside these there are many medium and small players in the market in the form of organized or unorganized sector operating relatively and creating enormous competition. And the competition is expected to be more complex in coming years as many company is now providing stabilizers inbuilt on A.C’s and Refrigerators’ which would increase pressure on others to do something like that and thus the market of stabilizers will moved to other way.

Stabilizer industry is such that duplicate products are easily available in the market. Local stabilizers having logo of DUROMAX, KENSTAR, LG etc. are running successfully and in this way they are cashing the brand name.

In spite of that stabilizer market is still wide and open for growth and with the help of

proper strategies it could be turned into one of the profitable area of market.

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CHAPTER-3

COMPANY PROFILE

COMPANY PROFILE

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HISTORY

With brand names recognized by just about anyone who has ever separated dark colors

from light, Whirlpool is one of the world's top home appliance makers. It manufactures

washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges,

trash compactors, air purifiers, stabilizers and more. In addition to Whirlpool, the company

sells its products under a bevy of brand names, including Kitchen Aid, Maytag, Jenn-Air,

Roper, Amana, and Magic Chef. Whirlpool peddles its appliances in North America, Europe,

Latin America, Africa, the Middle East, and Asia.

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, Kitchen Aid, 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 the 1980'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.

Today, Whirlpool is the most recognized brand in home appliances in India and holds a

market share of over 25%. The company owns three state-of-the-art manufacturing

facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features

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an infrastructure that is witness of Whirlpool's commitment to consumer interests and

advanced technology.

In the year ending in March '09, the annual turnover of the company for its Indian

enterprise was Rs.1,719 Crores.

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.

THE COMPANY’S VISION

Whirlpool’s pervasive vision, “Every Home, everywhere, with pride, passion and performance”,

rests on the pillars of innovation, operational excellence, customer-centric approach and

diversified talent. These are embedded within our business goals, strategy, processes and work

culture.

CORE COMPETENCIES

Innovation: Unique and compelling solutions valued by there customers and aligned to there brands create competitive advantage and differentiated shareholder value.

Operational Excellence (OPEX): A methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps them to achieve operational excellence.

Customer Excellence: Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer.

YEAR - WISE MILESTONE FOR WHIRLPOOL

⇨1908: The first Automatic washer was launched to public in late 1908, by 1900 Corporation

which in 1911 was renamed to Upton Machine Company.

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⇨1911: Louis Upton founded the Upton Machine Company in this year to produce motor-

driven wringer washers.

⇨1916: First order of washers was sold to Sears, Roebuck & Co.

⇨1929: Upton Machine Company merged with Nineteen Hundred Washer Company of

NewYork .

⇨1948: First 'Whirlpool' brand automatic washer with dual distribution was introduced. It

included two product lines one each was distributed through Sears and Nineteen Hundred.

⇨1957: The company was rechristened as ' The Whirlpool Corporation.'

⇨1958: The company moved out of country for the first time and invested in Brazilian

appliance market through purchase of equity in Multibras S.A.

⇨1968: The Elisha Gray II Research & Engineering Center was completed in Benton Harbor .

In the same year the company's revenues crossed the legendary $1 Billion mark for the first time.

⇨1978: Within a decade company doubled its feat of $1 Billion mark and reached the $2

billion revenue level.

⇨1986: The 'Kitchen Aid' division of Hobart Corporation was purchased.

⇨1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS Whirlpool Ltd.

⇨1989: This was a historic year since the revenues catapulted to heights of over $6 Billion

mark. Also, the joint venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was

formed to manufacture and market appliances in Europe.

⇨1990: Company established joint venture with Matsushita Electric Company of Japan to

produce vacuum cleaners for the North American market.

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⇨1991: The company introduced and committed globally to its Worldwide Excellence System,

which is a TQM program dedicated to exceeding customer expectations. The vision to globalize

'Whirlpool Corp'. was realized in the same year.

⇨1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland, Netherlands

and Belgium.

⇨1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC

manufacturing facility of Kelvinator India was also acquired.

⇨1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to form

Whirlpool of India Ltd.

1999: Whirlpool of India crossed the milestone of 1 million sales of appliances.⇨

⇨2001: Whirlpool India registered profit & sold 1.2 million appliances. It also achieved the

No.1 position in DC & FA.

⇨2005: Received the 2005 American Business Ethics Award, which honors companies that

exemplify high standards of ethical behavior in their everyday business conduct.

⇨2006: Honored with the 2006 National Award for Ethics & Values from the Confederación

de Cámaras Industriales de los Estados Unidos Mexicanos.

⇨2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white goods

company.

⇨2007: Received the 2007 Cause Marketing Golden Halo Award for Business, America's

highest honor for companies and organizations that give back to the community through creative

and effective cause marketing campaigns.

ACHIEVEMENTS

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Whirlpool Corporation has been honored with two iF Product Design Awards 2009,

respectively, for the Whirlpool Glamour Oven and for GREENKITCHEN, a kitchen eco-system

design concept. The announcement was made in Nov 08 by the iF Industry Forum Design

GmbH., and represents GREEN Kitchen's second design award in the past two months,

following its Gold SPARK Award, won in October 2008.

2009: Whirlpool was voted Product of the Year and received the award for the 'Best

Innovative Product' in the popular refrigerators category. This was based on 40,000 consumers

across 36 towns in India voting Whirlpool Frost Free Refrigerators with 6th sense as the Best

Innovation in the Popular Refrigerator Category.

2009: Hewitt ‘Best Employers in India’ 2009 Study

2009: Named one of the “100 Best Corporate Citizens” by Chief Responsibility

Officer (formerly Business Ethics) magazine in 2009 and from 2000-2007

2008: Included in the Dow Jones Sustainability,

FTSE4Good and KLD Global Sustainability Indexes, three of the world’s most comprehensive

reviews of sustainable business practices

2008: Whirlpool brand was named one of the 10 top greenest brands by U.S. consumers,

according to a 2008 BrandWeek magazine survey.

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2008: Named one of the “2008 World’s Most Ethical Companies” by Ethisphere

magazine

2008: Whirlpool OF India” was awarded the NDTV Profit Business & Leadership

Award 2008 for “The Best Consumer Durables Company.

2008: The year 2008-09 saw Whirlpool India achieve great milestones in our attempt to be an

“Employer Of Choice”.

2008: The Business Today - Mercer -TNS Study – 2008. ‘Top 20 Best Companies to

work for in India’

BRAND AMBASADOR OF WHIRLPOOL

Like a fresh breath, Kajol wafted into the film world that thrived on predetermined codes of demeanor. She carries the halo of spontaneity. Kajol swept across millions of hearts with her

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energetic pace. Her vivaciousness and frisky persona proved contagious and singularly her own in the contemporary scene. Kajol has made a distinctive indent into the Hindi film industry. Though she has the girl next door image and is not as glamorous as the others in her field, Kajol is outstanding in her acting. The flexibility of her acting can be seen from the various characters done by this natural actress. She gives more attention to her acting than the financial success of a film.

Kajol's eventful journey from 'Bekhudi' to 'Fanaa' shows the power of her versatility, sheer hard work and dedication towards art behind all of her roles. She doesn't give more importance to publicity or celebrity because she believes acting is purely a profession .

Kajol has come to stay in the industry as a mainstream actress with an inimitable charm and liveliness coupled with the talent that renders eye-filling performances. Her reel life image is not diverse from her real-life image. She is as outspoken and lively as she seems in her characters in the films. Bold and beautiful-Kajol has won millions of hearts with her impish vivacity within a short span. No wonder then that Kajol is rated as superb among her generation of leading ladies.

Ajay Devgan, known more for his intense acting abilities carved a niche for himself as an actor. Ajay is one actor who has gained stardom on the merit of his performances, not based on Bollywood-style good looks. Earlier known as a dhishum dhishum action hero, Ajay shifted his

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image to a romantic lead, setting the trend with Ishq, a soft romantic comedy paired opposite wife- Kajol. The image became much prominent with Pyaar To Hona Hi Tha, bringing out his softer side. Then there was no looking back for Ajay. It became a habit for him to deliver

emotional roles par excellence.

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CHAPTER-4

ORGANISATION CHART

WHIRLPOOL CORPORATION

JEFF FETTIG

LARRY VETURELLI

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(VP & Controller)

(Chairman, President & CEO)

DAVID SWIFT MICHAEL TODMAN

ARVIND UPPAL

SYED SHAHZAD SHANTANU DAS TAMAL KANTI

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Director & President

(North America)

Director & President

(International)

Managing Directing

(India)

AKHTAR

V.P

Sales, Marketing & Export

GUPTA

V.P

Corporate Affairs & Strategies

SAHU

V.P

Sales

CHAPTER-5

PRODUCT RANGE

PRODUCT RANGE

Whirlpool is the World’s No 1 Home Appliance company that warms up to the varied needs of

consumers worldwide, delivering quality products. Millions across the globe associate

Whirlpool with unmatched convenience and superior technology. Whirlpool’s world class

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.

Refrigerators

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Whirlpool refrigerators, trusted by homemakers across the

globe come to you with :

6th Sense™ cool system for superior cooling in the

peak of summers

Unique utility features to add that ''magic'' to your

homemaking

Range of storage capacity to suit your needs

Energy efficient technology for cooling retention

during power cuts

Sleek designs and contemporary styling

Heater

After comprehensive research and years of development

on Oil Filled Heaters, Whirlpool is proud to present

Genius - An indoor heating device equipped with

advanced 6th Sense Temperature Control Technology and

a unique Electronic User Interface and a host of other

exciting features

Washing Machine

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http://www.whirlpoolindia.com/ProductListing.aspx?SubCatID=1






For a 100 years of now, Whirlpool has been synonymous

with excellence in fabric cleaning and care

6th sense is women’s' intuition captured by technology.

It enables our machine to adjust water level and detergent

quantity depending on your wash load and fabric type.

Stain wash : Brings together unique properties of

Hotwash and 1-2 , 1-2 hand wash to completely remove all

common household stain.

Air Condition

UPS

Microwave

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The Whirlpool Mastermind series of Air

Conditioners. Built to perfection and loaded with

host of unique features, the Mastermind series

offers the best of technology, design and unbeatable

built quality to meet your cooling requirements at

an unbelievably affordable cost.

In addition to its existing product range,

Whirlpool now comes up with new addition in

the range of power accessories "Elantra" H-UPS.

This H-UPS comes with a two year warranty.

With Elantra you get the advantage of a host of

features, international quality and an exciting

range to suit your needs






Whirlpool microwave oven bring to you a range of Microwave

ovens designed to re-define ease, convenience and variety in

cooking with :

A range of microwave ovens made just for India

Plenty of choice in capacity and types

Features that help make “ Variety khana rozaana

Dryer

Whirlpool with its leadership in fabric care solutions

worldwide brings to you a 100% dryer exclusively

designed and developed to help you cope with the

Indian weather conditions:

The 100 percent dryer comes with a multiple

drying programs which give you the best

drying for your clothes

The best of European technology being

brought to India for the first time

The energy efficient machines comply with

the stringent European safety standard.

Water Purifier

Accessories

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The revolutionary range of Whirlpool’s

RO water purifier comes with 6th sense

purify and protect Technology.

DUROMAX

In all of the products of whirlpool I have done my project on Stabilizers which they

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Fridge Aid Defrost Timer

Freshonizer Stabilizers

Pedestal Fab O Soft

Fabricare kit Lemon n Onion Box

Calfre Trolley

categorized under accessories. Stabilizers of Whirlpool are named Duromax. It comes

under different models and with specific features.

Different Models Of Duromax:

AC Stabilizers Premium

MODEL MODEL DESK WORKING AUTO-CUT& WTY VOLTAGE

RANGE TIME DELAY INDICATOR

VX-1640WD Automatic Voltage Stab for AC 160-280 Y 1Y Digital Display

Upto 1.5 ton

LX-1640WD Automatic Voltage Stab for AC 160-280 N 1Y Digital Display

Upto 1.5 ton

VX-1340WD Automatic Voltage Stab for AC 135-290 Y 1Y Digital Display

Upto 1.5 ton

DX-1140D Automatic Voltage Stab for AC 110-280 Y 1Y Digital Display

Upto 1.5 ton

DX-1150D Automatic Voltage Stab for AC 160-280 Y 1Y Digital Display

Upto 2.0 ton

AC Stabilizers Deluxe

MODEL MODEL DESK WORKING AUTO-CUT& WTY VOLTAGE

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RANGE TIME DELAY INDICATOR

LX-1640 Automatic Voltage Stab for AC 160-280 N 1Y LED

Upto 1.5 ton

LX-1640V Automatic Voltage Stab for AC 160-280 N 1Y Voltmeter

Upto 1.5 ton

VX-1640 Automatic Voltage Stab for AC 160-280 Y 1Y Voltmeter

Upto 1.5 ton


Upto 1.0 ton


Upto 2.0 ton


Upto 1.5 ton


Upto 1.5 ton


Upto 1.0 ton


Upto 2.0 ton


Upto 1.5 ton

FEATURES:

⇨Enables appliance performance during high voltage fluctuations.

⇨World class design for aesthetics & durability.

⇨Design and tested for compliance with National and International standards of safety

& electromagnetic compatibility.

⇨Less No Load Current than ISI Standard for better Power efficiency.

⇨Vacuum impregnated transformer for better insulation & reliability.

REFREGERATOR STABILIZERS

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MODEL MODEL DESC INPUT OUTPUT AUTO-CUT VOLTAGE

VOLTAGE VOLTAGE TIME DISPLAY INDICATOR

LX0705V Automatic Voltage Stabilizer 75-290 160-260 N Voltmeter

for Refs upto 450L Symphony

VX-1304D Digital Automatic Voltage Stabili- 130-280 190-250 Y Digital

zer for Refs upto 310L Direct Cool


zer for Refs upto 450L Symphony


zer for Refs upto 450L Symphony

LX-1104 Automatic Voltage Stabilizer for 110-280 160-260 N LED

Refs upto 310L Direct Cool




Refs upto 450L Symphony

LX1404V Automatic Voltage Stabilizer for 140-260 160-260 N Voltmeter


DX-1404 Automatic Voltage Stabilizer for 145-260 160-260 Y LED


AX-1605 Automatic Voltage Protector for 160-260 160-260 Y LED


SCOOP SERIES- POWER ACCESSORIES

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MODEL MODEL DESC INPUT OUTPUT AUTO-CUT VOLTAGE

VOLTAGE VOLTAGE TIME DISPLAY INDICATOR







FEATURES:

⇨ Enables appliance performance even during high voltage fluctuations.

⇨ Unique “ Over Current Protection” for extra safety.

⇨ Designed and tested for compliance with national and international standards of safety

& electromagnetic compatibility.

Whirlpool of India Limited

Balance Sheet as at March 31, 2010

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Schedule As at March 31,2010 As at March 31,2009

( in Lacks) ( in Lacks)

Source of Funds

Shareholder’s Funds

Share capital A 27,921.43 27,921.43

Reserves & surplus B 8,749.33 2,569.24

36,670.76 30,490.67

Loan Funds

Unsecured Loans C 15.27 11,023.54

Total 36,686.03 41,514.21

APPLICATION OF FUNDS

Fixed Assets

Gross Block D 72,221.47 69,948.49

Less: Accumulated Depreciation/Amortisation 43,270.86 39,363.55

Net Block 28,950.61 30,584.94

Capital Work in Progress

including Capital Advances 1,327.19 201.87

30,277.80 30,786.81

Intangible Assets E 33.21 59.22

Deferred Tax Assets (Net) F 1,147.57 7,325.27

Current Assets, Loans and Advances

Inventories G 46,248.63 29,987.43

Sundry Debtors H 13,978.69 8,206.65

Cash and Bank Balances I 6,217.77 7,277.79

Loans and Advances J 15,913.91 7,948.74

(i) 82,359.00 53,420.61

Less: Current Liabilities and Provisions

Current Liabilities K 65,888.27 45,184.66

Provisions L 11,243.28 5,915.51

(i i) 77,131.55 51,100.17

N et Current Assets (i-ii) 5,227.45 2,320.44

Miscellaneous Expenditure M − 940.42

(to the extent not written-off or adjusted)

Profi t and Loss Account − 82.05

Total 36,686.03 41,514.21

Notes to Accounts T

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CHAPTER-6

PROJECT PROFILE

PROJECT PROFILE

The project was primarily aimed at studying the competitive environment of Whirlpool

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India with special reference to stabilizers. And to find out the strategies adopted by

different firm in competitive environment.

On the project I did survey in different area of Lucknow on the basis of questionnaire

I had prepared. The project was all survey based and the result which came out is all

based on the factual information provided by the retailers which had filled my

questionnaire form.

After collecting information I analyzed all data under the process of research

methodology and then drawn a result from that.

This study will help in know, what kind of competition whirlpool is facing from its

competitors.

This study will also be helpful for the company in this respect that what is the share

of other competitors in stabilizer market?

The most important thing which will come out from this project report is that how

local players or unorganized sectors has covered so much share of stabilizer market.

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CHAPTER-7

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research in common refers to a search for knowledge. One can also define research as a

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scientific and systematic search for pertinent information of a specific topic. It is the pursuit of

truth with the help of study observation, comparison and experiment.

Developing Research Plan

After deciding the objective of marketing research next step is deciding research plan for

gathering effective information related to this research project. The research plan consists of

following steps, which are discussed subsequently.

Research Design

1.Descriptive Research: -

In my market survey descriptive research process was carried out to describe the market

characteristics, competitor profiles, marketing strategies, market potential, etc.

2.Data source :-

While project study I used primary as well as secondary data source. For primary data collection

I visited retailers in Lucknow region and for secondary data went through various journals and

Internet also. The information collected is relevant, correct and unbiased.

3. Research Approach:-

I followed survey technique for collecting the data. In market survey of whirlpool I have used

survey research approach. Here I carried out information from retailers. I have carefully selected

the instrument and methods of surveying like I have chosen personal contact methods, not

telephone survey because of higher response rate meaningful responses. This helped me to get

the general feedback in whirlpool etc.

4. Research Instruments:

The research instrument used was questionnaire form. For this I have visited each and every

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outlet and check the competition facing by the whirlpool brand from others in market. A

detailed questionnaire was prepared for this. In my research process I have used close ended and

open- ended questionnaire where respondents could answer in their manner. Through this I was

able to extract information from the respondents about whirlpool and other brand competing

each other.

5. Sampling Plan:

In designing a sampling plan following points where considered:

Sampling unit

It includes who is to be surveyed in research. I have surveyed retailers of Lucknow region.

Sampling size

I have surveyed about each and every outlet of the area specified to me size would reach up to

50 retailers. I have covered the area of Lucknow region like Alambagh, Hazratganj, Naka

Hindola, Indiranagar, Rajajipuram, etc

Sampling Technique

For carrying out survey at retail level non-probability method of sample and hypothesis testing

was used.

6. Methods of data interpretation:

In this market study I have used pie chart and bar chart for data analysis and interpretation

because pie chart and bar chart are easiest and comprehensive medium for presentation of data.

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Data Collection

This report was prepared after collecting data from the retailers/ dealers and past data was arranged from the various studies conducted in last few years and various other records of company.

Primary Data:

These data were collected by personal interview with retailers/ dealer. For this purpose questionnaires were prepared in such that all necessary data would be collected.

Secondary Data:

Information regarding the project, secondary data was also required. These data were collected from various past studies and other sources of the company.

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OBJECTIVE OF

THE PROJECT

OBJECTIVES

Primary Objective:

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“To study the competitive environment of stabilizer market”

Secondary Objectives:

⇨Which are the major players of stabilizer market.

⇨To find the market share of DUROMAX.

⇨To find the market share of other competitor.

⇨What competitors are offering.

⇨To find out customers parameter of purchasing.

⇨To find out market condition of stabilizers in Lucknow.

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CHAPTER-8

OBSERVATION AND FINDINGS

FINDING AS PER STUDY OF QUESTIONNAIRE

Following chart represents the number of retailers selling stabilizers

from there shop Yes – 39

No – 11

Page | 39

INTERPRETATION

The number of retail outlet who keeps stabilizers on their shop are more than those who

does not in Lucknow, as it is 78% retailers who keeps stabilizers and 22% who does not.

The number of brands of which retailers are aware of, which came out

from the survey is shown in the below pie chart One – 9

Two – 11

Three – 20

More Than Three – 10

Page | 40

INTERPRETATION

The number of stabilizers of which retailers are aware of are two or three as 40%

retailers are aware of three brands and 22% are aware of two brands.

When 50 retailers were interviewed the name of brands which they are

aware of, the outcome is presented in below chart

Page | 41

INTERPRETATION

16% retailers are aware of Mark stabilizers 15% are aware of Charan but 45% are

aware of local manufactured stabilizers which means local manufactured stabilizers has

covered huge market.

Following chart could depict the important parameter on which

stabilizers mostly sold Price – 3

Quality – 32

Brand Name – 9

Page | 42

Scheme – 6

ITERPRETATION

64% retailers says that its quality on the basis of which customer purchase stabilizers

18% says that it is brand name and 12% says that it is price. So, quality is the

important parameter for more sale of stabilizer.

Following chart represents the brand of stabilizers that mostly sold

from retail shop

Page | 43

INTERPRETATION

34% Others, 25% Mark, 15% Stambh, and 12% V-guard sale of stabilizers reflexes that if

we leave others which include many small brand and retailers made stabilizers, it is

Mark which registers maximum number of sale of stabilizers in Lucknow.

When it is asked from the retailers about the profit margin they gets

maximum from the company they replied:

Page | 44

INTERPRETATION

According to above data it was found that local stabilizers are giving higher profit

margin to the retailers in comparison to Whirlpool and others.

The awareness of Duromax is being surveyed by me and is shown in

the chart drawn below Yes – 35

No – 15

Page | 45

INTERPRETATION

70% retailers are aware that whirlpool has launched its stabilizers by giving the name

Duromax in comparison to 30% does not know.

People responses about the price of Whirlpool s Stabilizer (Duromax) is

represented in the drawn graph. Expensive – 14

Affordable – 33

Slightly Overpriced – 2

Page | 46

Cheaper – 1

INTERPRETATION

Whirlpools’ stabilizers are affordable for customer in terms of price says maximum

retailers . As 66% says it is affordable in comparison to 30% says it is expensive, 3%

says it is slightly overpriced and 1% says it is cheaper.

HYPOTHESIS TESTING

50 respondents were being selected randomly from the areas visited and following interpretations were being drawn:

Affordable Not Affordable

Whirlpool – 33 17

V-Guard – 40 10

Page | 47

To find more competent pricing strategy, hypothesis were drawn and x ^2 is being

applied on the hypothesis.

H o (Null Hypothesis)

Whirlpool stabilizers are affordable to customers.

H o (Alternate Hypothesis)

V- Guard stabilizers are affordable to customers

Company Name Affordable Cant Affordable Total

Whirlpool 33 17 50

V-Guard 40 10 50

Total 73 27 100

On the basis of this hypothesis, the expected frequency corresponding to the number of person surveyed would be:

Observed

frequency

Expected

frequency

O-E (O-E)^2 (O-E)^2/E

33 50*73/100=36.5 33-36.5= -3.5 12.25 3.517 50*27/100=13.5 17-13.5= 3.5 12.25 3.540 50*73/100=36.5 40-36.5= 3.5 12.25 3.510 50*27/100=13.5 10-13.5= -3.5 12.25 3.5

Therefore, ∑[(O-E)^2/E]=14

Hence, the Calculated Value of x ^2 = 14

Degree of freedom

(c-1)(r-1) = (2-1)(2-1)

= 1

Table Value of 1 degree of freedom at 5 per cent level of significance is 3.841

Page | 48

Interpretation:

The table value of x ^2 for 1 degrees of freedom at 5 per cent level of significance is

3.841. Comparing calculated and table values of x ^2, we find that calculated value is

more than the table value and as such could have arisen due to fluctuations of sampling hence the hypothesis is rejected. We can thus, conclude that Whirlpool stabilizers are not affordable.

When the respondent were asked regarding the effectiveness and

efficiency of whirlpool stabilizer to compete with the other brands, they

responded Yes – 40

No – 10

Page | 49

INTERPRETATION

Whirlpools’ stabilizers are not convenient to compete in market it says 80% of retailers

in comparison to 20% says it is convenient.

Page | 50

Page | 51

CHAPTER-9

COMPETITIVE ANALYSIS

.

DUROMAX COMPETITORS’ ANALYSIS BASED ON

PORTERS’ FIVE FORCE MODEL

Page | 52

Threat Of New Entrants –

Pagaria

Threat Of New Entrants –

Pagaria

Bargaining Power of Suppliers-

Profit Margin

Bargaining Power of Suppliers-

Profit Margin

Industry competitor-

LG, Kenstar,

Mark,Charan

Threat of substitutes -

Inbuilt stabilizers on AC & Refrigerator

Threat of substitutes -

Inbuilt stabilizers on AC & Refrigerator

Bargaining Power of Buyers - Good Quality & Service

Bargaining Power of Buyers - Good Quality & Service

Threat Of New Entrants

A growing industry often faces threat of new entrants that can alter the competitive

environment. Same is with the stabilizer industry as whirlpool has a threat that new

entrant like PAGARIA and many more could increase competition.

Rivalry Among Existing Competitors

Rivalry among existing competitors is often the most conspicuous of the competitions.

Companies like LG, KENSTAR, WHIRLPOOL, MARK & V-GUARD are mutually

dependent and thus any competitive move of a firm usually affects others and may be

retaliated.

Threat Of Substitutes

An important force of competition is the power of substitutes. The kind of substitute of

which Whirlpool have threat is that, many company is now producing there Refrigerators

and AC’s with inbuilt stabilizers.

Bargaining Power Of Suppliers

Profit margin is the point where suppliers could bargain for having more profit and the

company which provides maximum profit they promotes that particular brand of

stabilizers.

Bargaining Power Of Buyers

There are different degree of bargaining power of buyers. From the analysis it comes out

that buyers could compete the industry by forcing down prices of stabilizers, bargaining

for higher quality or more services.

Page | 53

BCG Analysis

Relative Market Share

HIGH LOW

The market share of whirlpool (DUROMAX) is very low and its market

growth rate is also low in comparison to other major players in the market

in stabilizers. So while doing BCG analysis of duromax it is found that it

should be placed in the box of dog which represent that it has low market

share as well as low market growth rate. Whereas other companies like

MARK and CHARAN has high growth rate and high market share thus

ranked star according to the BCG analysis. Sterlite is in the table of cash

cow as it has high growth rate so it will capture more market in future

whereas V-guard has high market share but low growth rate is thus in

question mark.

Page | 54

STAR

Mark,Charan

QUESTION MARK-

V-Guard ?

CASH COWSterlite

DOG - Whirlpool

SWOT ANALYSIS

STRENGTHS:

● Whirlpool is world’s no. 1 company in consumer durable products, so it has a good

reputation in the market.

● Whirlpool has a very wide range of model of stabilizers.

● Large number of workforce is working for increase in sales of stabilizers for

Whirlpool.

● There are four service centre of Whirlpool in Lucknow which advances it against other

competitor.

WEAKNESS:

● There are 30% retailers who are still not aware of Whirlpool stabilizers (Duromax) is a

drawback for the company.

● Post sales service is bit on a poor side.

OPPORTUNITIES:

● Stabilizer market is still untapped by many of the organized sector.

● Company has the brand equity in the eyes of customer, so it is easier to penetrate into

the market.

THREAT:

● Cut-throat competition with the Local brands.

● Such refrigerators and AC’s are introduced by other consumer durable companies in

which stabilizers are inbuilt with the product.

Page | 55

LIMITATIONS

● The research was conducted in very small area.

● Time factor was also important, 6-8 weeks period is not sufficient to grow through the

entire topic. For through study it need more time.

● Many retailers filled the questionnaire in careless manner, so it was difficult to make

them hold for time.

● Lack of expertise in regard to the research process turned out as a limitation for

handling and gathering the data to draw accurate result of the project.

● The number of respondent to the questionnaire is also less in number, so we cannot

analyze the actual market scenario.

Page | 56

SUGGESTION

AND

RECOMMENDATION

SUGGESTION AND RECOMMENDATIONS

Page | 57

⇨ Company should improve there post sale services where it is lacking

behind.

⇨ Company should do regular visit to the retail outlets for having more

personal contacts with retailers.

⇨Duplicate stabilizers having logo of Whirlpool ( Duromax) is also available

in market curtailing business of the company, so company should take

necessary steps to keep control on it.

⇨The price of Whirlpool stabilizers are also little bit on higher side in

comparison to others so it should also be reduced.

⇨During the project work it was found that less promotional activity is

causing loss of market base for Whirlpool so company should promote

Duromax more aggressively.

⇨During the project work it was found that the sale of Duromax is the

lowest so company should concentrate for increasing its market in this field.

⇨Inbuilt stabilizers in AC’s and Refrigerators introduced by some company

are hampering market share so company should focus on such kind of

technologies also.

⇨It was observed that maximum registered complain in Duromax is that of

transformer in stabilizers are burning out very quickly, so company should

reassess the technical aspect of the product.

⇨Company should increase warranty period of their product which is less

than others in the market.

Page | 58

⇨Company could encash brand name by giving little bit more profit

margins to retailers in comparisons to others.

⇨Company should create more awareness in customers as well as in

retailers regarding duromax.

Page | 59

CONCLUSION

CONCLUSION

1. Whirlpool corporation is one of the leading company of consumer durable goods but when it comes to stabilizer it is not so. Quality and good service is something what required for its supremacy.

2. The market share of Duromax is also quite low than others.

Page | 60

3. After analyzing competitors it can be said that local brands is causing

cut- throat competition for the organized sector.

4. In the project it was observed that stabilizers having low cost and long replacement warranty are leading the market.

5. After analyzing the market it can be said that post sales service plays a vital role in market penetration.

6. Retailers are expecting more profit margin from Whirlpool.

Page | 61

BIBLIOGRAPHY

BIBILIOGRAPHY

In the preparation of this project report, I have taken help from the under mentioned sources:

BOOKS & JOURNALS

⇨ KOTLER PHILIP , MARKETING MANAGEMENT , PEARSON EDUCATION,

13th EDITION

⇨ KOTHARI C.R., RESEARCH MRTHODOLOGY, NEW AGE INTERNATIONAL

PUBLISHERS, REVISED 2nd EDITION

Page | 62

⇨ CHERUNILAM FRANCHIS , BUSINESS ENVIRONMENT, HIMALAYA

PUBLISHING HOUSE

WEB SITE

⇨ www.google.com

⇨www.whirlpoolindia.com

⇨www.wikipedia.com

APPENDIX

Page | 63

http://www.google.com/

Retail shop: ___________________________________________

Add.: ___________________________________________

___________________________________________

Retailer’s Name : _________________________________________

Contact no. ___________________________________________

QUESTIONNAIRE

1) Do you sale stabilizer from your shop?

Yes No 2) How many brand of stabilizer are you aware of?

1.One 3.Three 2.Two 4.More than three

3) Name the stabilizer brand you are aware of.

Page | 64

1.__________________________________

2.___________________________________ 3.___________________________________ 4.___________________________________ 5.___________________________________

4) What is the important parameter for more sale of stabilizer?

1. Price 3. Brand Name

2. Quality 4. Schemes

5) Which is the brand of stabilizer that mostly sold from your shop?

Ans : __________________________________

6) How much it has priced?

Ans: ___________

7) How is it’s post sales service?

Excellent Good

Average Poor

8) Which company’s stabilizer gives you high profit margine?

Ans. __________________________________

9) Does there any new brand enter in stabilizer market?

Yes No

If yes, then name that brand

__________________________________

10) Are you aware about whirlpool’s stabilizer (DUROMAX)?

Yes No

Page | 65

11) How do you feel whirlpool’s stabilizers are priced?

1. Expensive 3. Slightly overpriced

2. Affordable 4. Cheap

12) Do you feel that whirlpool stabilizers are convenient for the competency?

Yes No

13) What are your suggestions for whirlpool to increase the sales?

_________________________________________________________________

Retailer’s signature

Page | 66

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