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PROJECT REPORT
ON
BRAND PERCEPTION OF REFRIGERATORS WITH
SPECIAL REFERENCE TO LG, SAMSUNG AND
WHIRLPOOL
In partial fulfillment of the requirement for the degree of
BACHELOR OF BUSINESS ADMINISTRATION
Submitted to Submitted by
Mrs. Taranjeet Kaur Khushdeep Kaur
Management Faculty University Roll No. 1106264
KHALSA INSTITUTE OF MANAGEMENT AND
TECHNOLOGY FOR WOMEN, CIVIL LINES, LUDHIANA
(2012-2013)
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DECLARATION
I hereby declare that report entitled BRAND PERCEPTION OF
REFRIGERATORSWITH SPECIAL REFERENCE TO LG, SAMSUNG AND
WHIRLPOOLof submitted in partial fulfillment of the requirement for the degree
of Bachelor of Business Administration of Punjab Technical University, Jalandhar
is my original work & has not been submitted for the aware of any other degree at
this university.
Place : Ludhiana Khushdeep Kaur
Date :
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ACKNOWLEDGEMENT
As I write this acknowledgement, I must mention that this is not just a formal
acknowledgement but also a sincere note of thanks and also regard from my side. I feel a
deep sense of gratitude and affection for the Management Faculty and Director Sir, Mr.
Vijay Asdhir, who helped and guided in this project.
I am thankful to Mrs. Taranjeet Kaur Project Guide, whose constant guidance had
given very valuable suggestion in completing my project successfully.
I feel immense pleasure to give the credit of my project work not only to one
individual as this work is integrated effort of all those who concerned with it.
In the end, I dedicate this effort of mine to those persons who are light of my life
my parents who have been behind every successful endeavor in my life.
Khushdeep Kaur
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PREFACE
In our two years degree program of BBA theresprovision for doing summer
training, after 5th semester. The essential purpose of this project is to given an
exposure and detailed outlook to the student of the practical concept, which they
already studied research. For this purpose, I was assigned the project for the
BRAND PERCEPTION OF REFRIGERATORSWITH SPECIAL REFERENCE TO LG,
SAMSUNG AND WHIRLPOOLIt is a matter of great privilege to get training in
Marketing of Whirlpool and their competitor.
The project lasted for a period of six weeks; it was informative, interesting
and inspiring.
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CONTENTS
Sr.
No.TITLE PAGE NO.
1. Introduction 1-56-102. Company Profile: Whirlpool
Introduction Core Competence Mission and Vision Whirlpool In India Values History Board Of Directors Awards and Recognition
6-2511-31
3. Company Profile: LG 26-2832-344. Company Profile: Samsung 29-3135-375. Objectives of the study 32-3338-396. Research Methodology 34-3740-437. Analysis and Interpretation 38-5144-578. Results and Findings 52-5358-599. Conclusions 54-5560-6110. Limitations 56-5762-6311. Suggestions and Recommendations 58-5964-6512. Bibliography 60-6166-6713. Questionnaire 62-6568-71
Formatted:Line spacing: single
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Introduction
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REFRIGERATOR INDUSTRY IN INDIA
Refrigerators have been manufactured in India since 1950s. Till the 1980s, players
like Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Earlier,
the white goods sector was categorized as a luxury goods industry and was subject to
oppressive taxation and licensing. The situation changed after the liberalization of the
Indian economy in the early 1990s. The government removed all restrictions, and now
there is no restriction on foreign investment, and licenses are no longer required.Post-
liberalization, a number of foreign companies entered the market and many domestic
players also diversified into refrigerators. BPL and Videocon, who already had a presence
in the consumer electronics market, leveraged their strengths to enter the durables sector.
In India, refrigerators have the highest inspirational value of all consumer durables,
with the exception of televisions. This accounts for the high growth rate of the refrigerator
market. The refrigerator market has been growing at a rate of about 15% per year, while
the consumer durables industry as a whole has grown at almost 8%.
The size of the refrigerator market is estimated to be 3.5- 4 million units
approximately, valued at Rs 50 billion. The domestic penetration rate of refrigerators is
about 9%. The penetration of refrigerators is considerably higher in urban areas, which
account for 75% of the demand, with rural areas constituting the other 25%.
There are two basic types of refrigerators manufactured in India, Direct-Cooland
Frost-Free. Till the 1990s, only direct cool refrigerators were used in India.
The refrigerator industry is highly competitive which implies a high premium on
quality of the product. Manufacturers of refrigerators have, in general, improved the
quality of the product, especially the reliability of the compressor. In so far as new
technology is concerned the concept of "Frost free" refrigerators has been gaining
popularity. Non-CFC (Non Chlro-fluro-carbons) refrigerators are being manufactured in
the country but because of their high initial cost the demand is sluggish.
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Refrigerator business is more mature. If you take the North India, the penetration is
higher than that of Televisions. Only in the South is it the other way around. It grew at 8
per cent last year.
In the last two years, Samsung and LG have given a lot more attention to the color
television business. BPL which did so well with the frost-free when they launched it, have
not been very active. So it is more like the business has not had its support.
Rural markets contribute around 24 per cent to demand for 8-9 years. This has not
gone up or down which means that the rural markets have been growing by and large with
the rest of the country.
In the refrigerator business, there is a controversy on who is the biggest. Whirlpool
says it is the largest, while L.G says it is. It is very difficult to say. But we can assume that
they are on a par as brands. In terms of companies, Electrolux is the largest with a few
brands added together. Between the three of them they command approximately 70 per
cent of the market. Change is not expected.
One of the reasons cited for this low level of penetration is the extremely negligible
effort by the industry to propagate the utility of the product, industry insiders' state. "The
players talk about the technology used by them but they never talk about the usage of the
product in today's life," analysts point out.
"During the current year, the refrigerator industry has experienced marginal
growth. In volume terms, the growth has been to the tune of 8 per cent to 10 per cent,
while in value terms it is negligible," market watchers toldBusiness Line.
Whirlpool (India) has been constantly innovating and highlighting new USPs
(Unique Selling Propositions) for its refrigerators. Starting with the 'Fast Forward Ice'
innovation, the company has lately brought in what it claims is the world's first single-door
frost-control refrigerator with which it plans to enter the mass segment. Conventionally,
Direct-Cool fridges are single door while Frost-Free refrigerators have double doors.
According to Arvind Mendiratta, the CEO of Whirlpool (India), the company
aims to cater to both the direct cool and frost-free segments. He says that though frost-free
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technology is superior, in India most people prefer direct cool due to frequent power
shortages and eating habits. Hence the new range has been developed combining the
benefits of frost-free and direct cool.
Whirlpool also introduced the Sixth Sense proprietary technology, which
automatically maintains the requisite temperature inside the fridge. The sixth-sense frost-
control refrigerators provide the benefit of total freedom from defrosting and cleaning
water puddles besides being high capacity refrigerators with additional space
Whirlpool fridges, he disclosed, are priced at an approximately three per cent
premium mainly because of their superior technology. But we do not want to be a niche
player. We want to be in the market where volume isadds Mendiratta.
Rajiv Karwal, managing director and CEO, Electrolux, feels the market for
refrigerators is huge and largely untapped. He is confident that their new external battery-
powered fridge will create a huge demand for fridges with power back-ups. Clearly the
USP of the product is electricity or the lack of it.
This year LG has launched products catering to both ends of the spectrum. While
on the one hand it launched an extremely hi-end product aimed at strengthening its digital
product portfolio the TV refrigerator called TV Dios and on the other hand it is
bringing in aRs5,000fridge to cater to the rural markets.
According to trade journals, Whirlpool Indiais the leader in the domestic
refrigerator industry, with a 26-per cent share. A majority of the company's revenues,
about 65 per cent, come from refrigerators
Whirlpool is now contemplating a significant shift in its focus areas and is eyeing
the huge air-conditioner and microwave market in the country for its future growth and
comfortable margins. Whirlpool officials said enhanced competition and significant price
erosion due to a steep rise in input prices of commodities, in the refrigeration segment,
have put the company's margins under severe pressure.
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A recent FICCI report has provided a silver lining of sorts to the dismal industry
scenario by pegging the growth of consumer durable goods in the rural markets at around
25 per cent as against 7-10 per cent in urban areas in the last financial year.
Companies like LG have already been reaping the fruits of its rural focus.
According to the company, 55 per cent of its Rs4,500-crore turnover last year was
contributed by the rural and semi-urban markets.
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Company Profile
Whirlpool
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WHIRLPOOL
INTRODUCTION
Whirlpool Corporation is the world's leading manufacturer and marketer of majorhome appliances, with annual sales of more than $19 billion in 2011, 68,000 employees,
and 66 manufacturing and technology research centers around the world. 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.
Whirlpools international outlook was initiated in 1958 when it entered Brazil,but
it was the 80s that marked the beginning of Whirlpools aggressive strategy to be a
world-wide competitor. India was identified as a growth market in late 80s when
Whirlpool Corporation entered into a joint venture agreement with TVS group to produce
automatic washers at a plant set up in Pondicherry. A modest beginning was made to
establish the Whirlpool brand in India. In 1995 Whirlpool Corporation acquired
Kelvinator of India Limited and entered into the Refrigerator market in India. In late 1995
majority ownership was gained in the TVS joint venture and the two entities were merged
to form Whirlpool of India Limited in 1996. This expanded the company's portfolio in the
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Indian subcontinent to washing machines, refrigerator, microwave ovens and air
conditioners.In the year ending in March '09, the annual turnover of the company for its
Indian enterprise was Rs.1,719 Crores.
Whirlpool has sustained its leadership position within the global appliance industry,
thanks to its innovation led approach and a keen understanding of the customers' needs, a
firm commitment to addressing those requirements through companys superb brands,
products and services. Whirlpool Corporation entered India in the late 80s and today has
grown to become one of the leading manufacturers and marketers of major home
appliances in India.
Whirlpools aggressive business approach delivered the success that consisted of anextensive brand building exercise, fixed cost reduction and restructuring. Whirlpool chose
to position the brand as a Partner to the homemaker and the values weretranslated into
the various elements of the brand identity leading to the well known tagline You &
Whirlpool, The Worlds best homemakers. In fact, Whirlpool is credited with changing
the lexicon from housewife to homemaker in everyday parlance which truly celebrates
the contributions the woman makes to the home.
Targeted at the modern Indian woman who sees home appliances as her ally in
homemaking, Whirlpool believes in providing world-class quality to its consumers. In its
endeavor to maintain international standards of quality and style and match the exacting
standards of the Indian homemaker, Whirlpool has successfully become a Perfect partner
to the demanding homemaker of today who seeks to nurture herself as well as home &
family. Whirlpoolsproducts are stylish, modern and contemporary with elegant looks and
reflect the sense of pride homemakers take in choosing them for their homes.
Whirlpool has the distinction of having ISO certification for all its facilities in
India. The refrigerator facility is located at Faridabad and manufactures a complete range
of direct cool refrigerators. With the infusion of technology, machinery and streamlining
the processes the capacity of this plant was increased from 700,000 to 1,000,000 annually.
Whirlpools commitment to the Indian operation has resulted in the setting up of a
state-of-the-art facility for the manufacture of no-frost refrigerators at Ranjangaon near
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Pune. This facility has set the standards as one of the worlds front runners in
environmentally sensitive eco-friendly manufacturing units.
Products manufactured in the above facilities match Whirlpools global standards
and are exported to over 70 countries across the globe. Whirlpool India is today Indias
largest exporter of home appliance and has been approved as an Export House.
Design Engineering is being developed as a core competency for Whirlpool India.
A step in the direction has resulted in the setting up of Regional Technology Centers at
Pune and Pondicherry. The already strong manufacturing and technology infrastructure
was augmented by the establishment of a Global Consumer Design centre for Asia in New
Delhi in 2005.
The products of Whirlpool 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.
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Core Competence
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CORE COMPETENCE
Innovation: Unique and compelling solutions valued by our customers and aligned to our
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 us 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.
Innovation
OperationalExcellence
CustomerExcellence
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Mission And Vision
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Everyone, PassionatelyCreating Loyal Customers forLife
Our mission defines ourfocus and what we dodifferently to create value.We are a company of peoplecaptivated with creatingloyal customers. From every
job, across every contact, wewill build unmatched
customer loyalty onecustomer at a time.
MISSION
Every Home, everywhere,with pride, passion and
performance OUR vision rests on the
pillars of innovation,operational excellence,customer-centric approachand diversified talent. Theseare embedded within ourbusiness goals, strategy,processes and work culture.
VISION
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WHIRLPOOL PROGRESS 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, 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 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.
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
an infrastructure that is witness of Whirlpool's commitment to consumer interests and
advanced technology.
In the year ending in March '06, the annual turnover of the company for its Indian
enterprise was Rs.1,375 Crores. According to IMRB surveys Whirlpool enjoys the status
of the single largest refrigerator and second largest washing machine brand in India.
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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
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Values
Formatted:Normal, Pattern: Clear
Formatted:Font: Bold
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diversity and inclusion motivates every individual to excel, stimulating passion and the
free expression of ideas.
Teamwork
Working together brings pride and frees up the potential of every individual. Through
collaboration and the confrontation of ideas, great results can be achieved.
Spirit of Winning
The awareness of being a leader generates pride and motivation to face the new challenges
of the market. Our goal is to be recognized and respected as one of the world's best
companies to work for.
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History
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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.
1958 : The company moved out of country for the first time and invested in
Brazilian appliance market through purchase of equity in Multiparas, S.A
1968 : The Elisha Gray II Research & Engineering Center was completed in
BentonHarbor. 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.
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.
1991 : The Company introduced and committed globally to its Worldwide
Excellence System, which is a TQM program dedicated to exceedingcustomer expectations. The vision to globalize 'Whirlpool Corp. was
realized in the same year.
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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.
1998 : This year gave birth to a new company vision that says, "Every Home
Everywhere with Pride, Passion & Performance."
1999 : Whirlpool of India crossed the milestone of 1 million sales of appliances.
2002 : The 'Whirlpool Strategic Architecture' was launched as a framework to
achieve the vision. The revenues of Whirlpool Corp. soared to $10.5
Billion.
2004 : Whirlpool India registered profit & sold 1.2 million appliances. It also
achieved the No.1 position in DC & FA.
2005 : The Aircon range was successfully launched and the Whirlpool of India
acquired 6% market share.
2006 : A new mission statement of "Everybody creating loyal customers for life"
was adopted.
2007 : Whirlpool Corporation acquires Maytag and become the Worlds largest
white goods company.
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BOARDOFDIRECTORSAND
COMMITTEES
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ChairmanandCEO:
Jeff M. Fettig
ExecutiveCommittee:
Marc Bitzer Esther Berrozpe Galindo David Szczupak Larry Venturelli David A. Binkley Joao C. Brega Kirsten Hewitt Michael A. Todman
BoardofDirectors(India)
Arvind Uppal (Chairman & Managing Director) Mr. Vikas Singhal(Executive Director) Anil Berera Mr. Sanjiv Verma S.J. Scarff Anand Bhatia
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AWARDSANDRECOGNITION
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Awards and Recognition:
2012
1. ICWAI....National Award for Excellence in Cost Management - Silver2. Trophy for Export Excellence in EPO Service for outstanding export performance.3. Whirlpool ACE Washing Machine received the Silver Medal in the prestigious
international Edison Awards for being the best new product in the Lifestyle and Social
Impact category.
2011
1. #14 Best Employers in India 2011....Aon Hewitt2. # 9 Top Companies for Leaders Asia Pacific 2011...Fortune Aon Hewitt3. Best Employers in Asia Pacific 2011....Fortune Aon Hewitt4. Readers Digest Trusted Brand Gold Award (2010-2011) for Refrigerators and Washing
Machines
5. Whirlpool Pondicherry Washer Facility Gold Award in Economic Times Frost & SullivanManufacturing Excellence Award - 2011
6. CEAMA Appliance Man of the Year for Arvind Uppal.
2010
1. Product of the Year 2010 1-2-3 Washing Machine....best innovative product in theWashing Machine Category
2. Readers Digest Trusted Brand Gold Award (2009-2010) for Refrigerators and WashingMachines
3.
#1 India's Best Company for Leadership Development by Great Place to Work4. #15 India's Best Companies to Work for by Great Place to Work5. Best Consumer Durables Company...Dun & Bradstreet Corporate Awards 2010.
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COMPETITORPROFILE
LG
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LG
Established in 1958, LG Electronics, Inc. (LG) is a global leader and
technology innovator in consumer electronics, home appliances and mobile
communications, employing more than 82,000 people working in over 110
operations including 81 subsidiaries around the world.
Comprising four business units - Mobile Communications, Digital
Appliance, Digital Display and Digital Media with 2006 global sales of USD
38.5 billion - LG is the world's leading producer of CDMA/GSM handsets,
air conditioners, front-loading washing machine, optical storage products,
DVD players, flat panel TVs and home theater systems.
BRAND IDENTITY
LG is the brand that is Delightfully Smart. "Life's Good" slogan, and futuristic
logo are a great representation of what they stand for.
Global, Tomorrow, Energy, Humanity and Technology are the pillars that this
corporation is founded on; with the capital letters L and G positioned inside a circle to
center our ideals above all else, humanity. The symbol mark stands for their resolve to
establish a lasting relationship with, and to achieve the highest satisfaction for their
customers.
The letters "L" and "G" in a circle symbolize the world, future, youth, humanity, and
technology. Their philosophy is based on Humanity. Also, it represents LG's efforts to
keep close relationships with their customers around the world. The symbol mark
consists of two elements: the LG logo in LG Grey and the stylized image of a human
face in the unique LG Red color. Red, the main color, represents the friendliness, and
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also gives a strong impression of LG's commitment to deliver the best. Therefore, the
shape or the color of this symbol mark must never be changed.
The LG logo is the fundamental visual expression used to identify LG. It expresses the
quality and sophistication that is the hallmark of LG products. It is simple, modern and
distinctive. Consistent and proper usage of the logo is absolutely essential. The logo is
symbolic of our steadfast reputation for excellence; therefore, any variation of the logo
diminishes the visual identity of LG Electronics and its products.
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COMPETITORPROFILE
Samsung
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SAMSUNG
Samsung India is a 100 per cent owned subsidiary of Samsung Electronics Co.,
Ltd. (SEC) in India. Samsung Electronics Co., Ltd. is a global leader in semiconductor,
telecommunication, digital media and digital convergence technologies with 2007 parent
company sales of US$63.4 billion and net income of US$8.5 billion. Employing
approximately 138,000 people in 124 offices in 56 countries, the company consists of five
main business units: Digital Media Business, LCD Business, Semiconductor Business,
Telecommunication Network Business and Digital Appliance Business. Recognized as one
of the fastest growing global brands, Samsung Electronics is a leading producer of digital
TVs, memory chips, mobile phones and TFT-LCDs
The Samsung Philosophy
Samsung follows a simple business philosophy: to devote their talent and technology to
creating superior products and services that contribute to a better global society.
Every day Samsung people bring this philosophy to life. Our leaders search for the
brightest talent from around the world and give them the resources they need to be the best
at what they do. The result is that all of our productsfrom memory chips that help
businesses store vital knowledge to mobile phones that connect people across continents
have the power to enrich lives. And thats what makinga better global society all is about..
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Values
Excellence
Everything we do at Samsung is driven by an unyielding passion for excellenceand an
unfaltering commitment to develop the best products and services on the market.
Integrity
Operating in an ethical way is the foundation of our business. Everything we do is guided
by a moral compass that ensures fairness, respect for all stakeholders and complete
transparency.
Co-prosperity
A business cannot be successful unless it creates prosperity and opportunity for others.
Samsung is dedicated to being a socially and environmentally responsible corporate citizen
in every community where we operate around the globe.
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Objectives Of Study
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OBJECTIVESBrand Perception of Refrigerators and strategies to improve it, with special
reference to LG, SAMSUNG and WHIRLPOOL.
1. To analyze the overall perception regarding brand of refrigerators.2. To find out the consumers perception towards LG, SAMSUNG and
WHIRLPOOL.
3. To recommend strategies to improve customer perception.4. To understand the customer needs and requirements regarding refrigerators.5. To analyze factors affecting customer perception.
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Research Methodology
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I will be taking DESCRIPTIVE because my research includes knowing the
perception of customers towards Refrigerator, I will be working on to know how people
respond to Refrigerator or their perception.
SAMPLING DESIGN
a) Sampling unit: It consists of general public.b) Sampling size: The overall sample involved consisted of 100 individuals. It was
fixed before hand and every effort was made to cover the given number of
individuals with available time for the collection of data for this project.
c) Contact method: The respondents were personally interviewed.d) Analysis method: The data was tabulated and frequency distribution was
developed. The percentages are computed for different variables.
TOOLS
In the research tools are used as graphical presentation.
SIZE OF SAMPLE
The overall sample involved consisted of 100 individuals. It was fixed beforehand
and every effort was made to cover the given number of individuals with available time for
the collection of data for this project.
DATA COLLECTION
Research project is affected very much by data collection method. Reliability of the
collected data depends a lot on the method of data collection.
The data is collected through:
Primary Data
Secondary Data
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Primary Data
For the purpose of collecting primary data, the survey method was used and where
this study is mainly based on the primary data. Structured formats were administrated to
get firsthand information, from the consumers who are associated with the Internet Service
Providers.
Secondary Data:
Websites Magazines Brochures
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DATAANALYSISAND
INTERPRETATION
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Table 1:Number of consumers having a refrigerator
Response Number of consumers
Yes 100
No 0
INTERPRETATION
Percentage of respondents who are having a refrigerator is 100%. This highlights
that refrigerator is the most common and essential appliance nowadays.
100%
0.00%
Consumers having Refrigerator
Yes
No
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Table 2:BRAND OWNERS
Brand Name Number of Owners
LG 35
SAMSUNG 27
WHIRLPOOL 23
OTHER 15
INTERPRETATION
Percentage of respondents who have LG refrigerators is around 35%,Whirlpool
comes second with 23%, Samsung comes third with 27% and 15% respondents are having
other brand then these three.
0
5
10
15
20
25
30
35
LG SAMSUNG WHIRLPOOL OTHER
35%
27%
23%
15%
Brand Owner
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Table 3:Brand Loyalty
Period of using current Brand Number of Respondents
Less than 1 Year 14
1-4 Years 26
More than 4 Years 60
INTERPRETATION
Level of brand locality is very high as the above result highlights 60% respondents
are using their current brand of refrigerator for more than 4 years and only 14%
respondents are using for less than 1 year.
14%
26%
60%
0%
Brand Loyalty
Less than 1 Year
1-4 Years
More than 4 Years
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Table 4:Size Preference of Refrigerators
INTERPRETATION
The above result highlights that most of the respondents own a refrigerator of 300
liter size. As the 71% respondents have said that they have refrigerator of 300 liter
capacity. Only 18% respondents are having refrigerator of 165 liter. So now customer
perception is positive for 300 liter refrigerator and they do not want very small or large
refrigerator.
0
10
20
30
40
50
60
70
80
Less than 165 liter 165 liter 300 liter More than 300 liter
6%
18%
71%
5%
Size Prefernce
Size Number of Owners
Less than 165 liter 6
165 liter 18
300 liter 71
More than 300 liter 5
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Table 5:Perception about Refrigerator in the Mind of Respondents
Meaning to Respondents Number of Respondents
Requirement 75
Status symbol 8
Long term expenditure 15
Short term expenditure 2
INTERPRETATION
The above results show that most of the respondents considered refrigerator as a
requirement rather than status symbol, long term expenditure or short term expenditure.
75% respondents considered refrigerator as a requirement in this survey.
0
10
20
30
40
50
60
70
80
Requirement Status symbol Long term
expenditure
Short term
expenditure
75%
8%
15%
2%
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Table 6:Most Attractive Factor or Factors in Refrigerators as per Consumers.
Factor/Factors Number of Respondents
Functionality 54
Color 4
Brand Name 35
Any Other 1
Functionality and Color 2
Functionality and Brand Name 4
INTERPRETATION
Functioning is the most important feature for the consumers in the refrigerators. As
54% respondents have selected as most attractive feature in the refrigerators. Brand name
comes second with 35% respondents selection.
0
10
20
30
40
50
60
Features
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Table 7:Brand Preference Level among Respondents
Brand Name Number of Respondents Ranked a Brand Number 1
LG 40%
SAMSUNG 20%
WHIRLPOOL 40%
INTERPRETATION
The survey shows that LG and Whirlpool are strong competitors and they are the
market leaders in the region. LG is ranked number one brand of refrigerator by 40%
respondents and 39% respondents ranked Whirlpool as number one brand of refrigerator.
40%
20%
40%
0%
Brand Preference Level
LG
SAMSUNG
WHIRLPOOL
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Table 8: Factors Influencing the Buying Decision of Respondents/Consumers.
Factors Number of Respondents
Advertisement 10
Personal Sources 25
Discounts/offers 2
Price 61
Customer Care Services 2
INTERPRETATION
Price is the most important factor which influences the buying decision of
consumers as 61% respondents ranked price as number one factor. Second major factor is
personal sources (friends and relatives).
Advertisement
10%
Personal Sources
26%
Discounts/offers
2%
Price
62%
Factors Influencing Decision
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Table 9:Satisfaction Level of the current brand
Satisfaction Level Number of Respondents
Highly Satisfied 31
Satisfied 50
Neutral 11
Dissatisfied 3
Highly Dissatisfied 3
INTERPRETATION
This result shows that respondents or consumers are having high degree of
satisfaction level. As 50% respondents are satisfied with their current brand of refrigerator
and 31% respondents are highly satisfied. Only 3% respondents are dissatisfied with their
current brand of refrigerator
33%
53%
11%3%
Satisfaction Level
Highly Satisfied
Satisfied
Neutral
Dissatisfied
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Table 10:Most Important Feature or Features at the time of Purchaseofrefrigerators as
per the Respondents.
Features Number of Respondents
Space 22
Cooling Level 28
Freezer 3
Easy Maintainability 33
Combination of two or more features 14
INTERPRETATION
In the survey of 100 respondents, it is found that Easy maintainability is the feature
which matters most to the consumers at the time of purchase of refrigerator. 33%
respondents have considered easy maintainability as most important feature. And 28%
have considered cooling level as most important element at the time of purchase of
refrigerator.
22%
28%
3%
33%
14%
0
5
10
15
20
25
30
35
Space Cooling Level Freezer Easy
Maintainability
Combination of
two or more
features
Features
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Table 11:Source of Information for Consumers Regarding Refrigerators.
Source of Information Number of Respondents
Newspapers 6
Magazines 8
T.V 49
Trade Fairs 24
Any Other 13
INTERPRETATION
T.V is the major source of information regarding refrigerators as 49% respondents
have select T.V as the source of information. Second major source is Trade fairs with 24%
respondents believe.
0
5
10
15
20
25
30
35
40
45
50
Newspapers Magazines T.V Trade Fairs
6%8%
49%
24%
Source Of Information
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Table 12:Advertisement Effectiveness
BRAND NAME Number of Respondents
LG Ads most effective 32
SAMSUNG most effective 26
WHIRLPOOL most effective 42
INTERPRETATION
The above result shows that 42% respondents ranked advertisement of whirlpool as
most effective. So whirlpool is having highest degree of advertisement effectiveness. LG
comes second on advertisement effectiveness and Samsung comes at third position.
32%
26%
42%
0%
Advertising Effectivness
LG Ads most effective
SAMSUNG most effective
WHIRLPOOL most effective
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Table 13: Degree of changing Brand of Refrigerator by Consumers
Decision Number of Respondents
Yes 37
No 63
INTERPRETATION
Only 37% consumers would shift their brand of refrigerator, if given an
opportunity.
And 63% consumers would stick to their current brand of refrigerator. So it shows
that consumers are brand loyal and also having high degree of satisfaction level.
Yes
37%
No
63%
0%0%
Change In Brand
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RESULTSANDFINDINGS
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In India most people prefer direct cool due to frequent power shortages and eatinghabits.
LG Electronics India and Samsung Electronics are the leaders in the frost-freesegment in the market and are growing the fastest in the category.
Price is the most important factor which influences the buying decision ofcustomers regarding refrigerators.
Brand loyalty is very high among the customers of refrigerators as 102 respondentsout of 200 are using their current brand of refrigerator for more than 4 years
Refrigerators are considered as requirement by most of the respondents
The Indian refrigerator market is very small and accounts for sales of around 3.5million units per year.
Satisfaction level is very high among the customers of refrigerators as around 103respondents are satisfied and 63 respondents are highly satisfied with their brand of
refrigerator
Despite a reduction in the customs and excise duty, from about 14 per cent in 1998to 8 per cent in 2003, levied on the refrigerators segment most companies are still
making losses.
In India, direct cool refrigerators are estimated to account for 85 per cent of thetotal fridge market.
LG is truly a market leader vis--vis competitors Have higher market share around30% as compared to competitors.
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CONCLUSION
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CONCLUSIONS
We expect the present growth of refrigerators industry to continue during the rest of
the fiscal year. With the globalization and liberalization, foreign players are entering in the
Indian refrigerator industry. Going forward, the consolidation of regional players is likely
to continue. Launch of Door Cooling, PentaFresh Technology and other innovations will
increase the size and growth of the industry but with declines in profits and surpluses,
which could put pressure on margins. In such a competitive scenario, Exchange offers, new
innovative product introductions, cutthroat pricing, easy financing, the refrigerator makers
in the country are using just about every trick in the book to push their products.
LG is already way ahead in terms of infrastructure, market share and a very satisfied
customer base on the other hand Samsung needs to improve upon its market share before it
is too late. Whirlpool is having enough market share and best advertisement and sales
promotional activities
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LIMITATIONSOFSTUDY
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LIMITATIONS OF THE STUDY
Some respondents are not interested to interact with us. Sales of refrigerators are around 3.5 million units per year so the sample size was
too small to reach to a definite conclusion and it cannot represent whole universe.
Survey is done in Ludhiana which is urban area so rural areas gets ignored in thissurvey.
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SUGGESTIONSAND
RECOMMENDATION
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SUGGESTIONS & RECOMMENDATIONS
Samsung should improve its advertisement policies and should indulge itself withevents.
Samsung is not considered as a premium brand use of celebrity and change inpositioning strategy can help Samsung enhance its image as a premium brand.
Samsung and LG are required to focus more towards innovation and creativitystrategies.
To increase the market share both Samsung and Whirlpool should take functioningand easy. Maintainability as most important features of refrigerators.
All three players should improve their branding strategies. The major focus inbranding should be on functioning and performance of refrigerator as customers
look for high degree of performance first rather than brand name in refrigerators.
Pricing strategies should be different for urban and rural customers. Price is themost important factor which influence the buying decision of customers
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BIBLIOGRAPHY
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BIBLIOGRAPHY
http://www.thehindubusinessline.com/businessline/iw/2000/06/18/stories/0518e2
http://www.thehindubusinessline.com/2003/12/14/stories/2003121401150200.htm
http://www.domainb.com/marketing/general/2004/20040702_cool_machines.html
www.icmr.icfai.org/casestudies/catalogue/Business%20Reports/BREP017.htm
http://dipp.nic.in/industry/cons_dur.htm
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QUESTIONNAIRE
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QUESTIONNAIRE
Name : ____________________________________ Sex : __________
1. Do you own a refrigerator?
a) Yes b) No
2. If yes then name the brand?
a) LG b) Samsung
c) Whirlpool
d) Other Please specify.
3. For how long you have been using your current brand of refrigerator?
a) Less than 1 years
b) 1-4 years
c) More than 4 years
4. What is the capacity of your refrigerator?
a) Less than 165
b) 165 liter
c) 300 liter
d) More than 300
5. What does refrigerator means to you?
a) Requirement
b) Status Symbol
c) Long term expenditure
d) Short term expenditure
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6. Which factor/factors attract you more towards the refrigerator?
a) Functionality
b) Color
c) Specify Brand name.
d) Any other,Please specify.
7. Rank the following brands of refrigerators on the scale of1-3, 1 shows highest rank for
liking and 3 shows lowest rank for liking.
a) LG
b) Samsung
c) Whirlpool
8. Rate the following factors which influence your buying decision regarding
refrigerators on the scale of 1-5, 1 is for most important factor and 5 is for least important
factor.
a)Advertisement
b)Personal sources
c)Discounts/offers
d)Price
e) Customer Care Services
9. Rate your own brand of refrigerator on the Satisfaction level.
Highly Satisfied Neutral Dissatisfied Highly
Satisfied Dissatisfied
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10. At the time of purchase of refrigerator which of the following feature or features
matters to you most?
a) Space
b) Cooling Level
c) Freezer
d) Easy Maintainability
e) Any other Please specify
11. At the time of purchase what was the source of information with regard torefrigerators?
a) Newspapers
b) Magazines
c) T.V
d) Trade Fairs
e) Any Other Please specify
12. Rank the following brands of refrigerators on the scale of 1-3, on the basis of
advertisement effectiveness?
1 shows highest ranking and 3 shows lowest ranking.
a) LG
b) Samsung
c) Whirlpool
13. If given an opportunity would you like to shift your brand of refrigerator?
a) Yes b) No
14. If yes then which brand will you prefer?
a) LG b) Samsung
c) Whirlpool
d) Any other Please specify