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SUMMER TRAINING PROJECT REPORT
ON
Marketing Strategies Of
CARRIER AIRCONDITIONERS
Submitted in partial fulfillment of the requirement
For the award of degree Of
Bachelor’s of Business Administration
SESSION (2008-2011)
Name:Saurabh Jindal
Class: BBA (general)
University Roll No.-0212061708
ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or
indirectly contributed in the development of this work and who influenced my
thinking, behavior, and acts during the course of study.
I am thankful to Mr Mehtab Alamfor his support, cooperation, and
motivation provided to me during the training for constant inspiration, presence and
blessings.
I also extend my sincere appreciation to Mr Rajesh Pandey provided his
valuable suggestions and precious time in accomplishing my project report.
Lastly, I would like to thank the almighty and my parents for their moral
support and my friends with whom I shared my day-to-day experience and received lots
of suggestions that improved my quality of work.
(Name of the student)
Declaration
I, SAURABH JINDAL, STUDENT OF BBA V SEMESTER, STUDYING AT TRINITY INSTITUTE OF
PROFESSIONAL STUDIES, DWARKA, HEREBY DECLARE THAT THE SUMMER TRAINING REPORT
ON “CONSUMER BUYING BEHAVIOUR AND CONSUMER ANALYSIS OF CARRIER
AIRCONDITIONERS” IN PARTIAL FULFILLMENT OF DEGREE OF BACHELOR’S OF BUSINESS
ADMINISTRATION IS THE ORIGINAL WORK CONDUCTED BY ME.
(Name of the student)
TABLE OF CONTENTS
1. Executive Summary
2. Organization history
3. Mission and Vision
4. 7S Framework
5. SWOT Analysis
6. Air Conditioner Industry
7. 7 Os of Air Conditioner Industry
8. Competitors Of Carrier In India
9. Brand perception
10. Major Issues With Product & Service
11. Methodology
12. Competitor’s Analysis
13. Brand Comparison
14. Learning from the project
15. APPENDIX
16. BIBLIOGRAPHY
Executive Summary
Carrier has always focused on maintaining the highest international standards of excellence
through quality, technology and innovation. For over a decade now, Carrier has been bringing
the latest and very best in Consumer Electronics and Home Appliances. Successfully adapting
the best of international technology to suit Indian needs, and crafting it to improve the quality
of life – as million of satisfied customers will agree. This tells the success story of Carrier.
Sustainability is at the center of Carrier’s’ strategy. Being a great company Carrier always tried
to improve people lives through its products but many a times due to changing environment or
customer’s mind the product doesn’t goes so well as expected.
The project deals with the study into the marketing mix of Carrier in air- conditioner market.
The primary data has been obtained from the dealers spread all across Delhi. The attributes,
which defined the data were the price of the product, push or pull strategy used, shelf space,
various advertisement tools used like bill boards, mass media etc and promotional schemes
used by various brands like bundling, coupons, free gifts etc.
In all I visited 50 outlets spread all over Delhi (includes dealers and retailer), who dealt in air
conditioner I also interviewed 50 customers at showrooms across Delhi. Using this data
inferences were drawn.
LG has the largest market share as far as home care is concerned. In Delhi AC market LG has the
highest penetration, as it is available in almost 75% of the outlets while Hitachi is present in
only 64% of the outlets. L.G. also leads in the other categories like the window display (40%),
shelf space (50%) and POP (40%) while Voltas has the share of 7%, 28% and 34% in the
respective categories.
Of the outlets visited, 44% claim L.G. to be the top Brand whereas Voltas has 21% of the outlets
claim it to be the top Brand. The strengths of L.G. lie in its low price and good quality whereas
Hitachi’s strengths lie in its superior quality and post sales service. Whereas, on the negative
side the claim that LG is not as durable as other brands & has a life expectancy less than other
brands like Voltas, General etc.
Organization history
Carrier is a part of United Technologies Corporation, USA. With 2009 revenue of $58.7 billion,
UTC is a conglomerate operating in the high technology space. The UTC group operates in
aerospace & building systems with companies like Carrier (air-conditioning), Otis (Elevators),
Pratt & Whitney (Jet- engines), Sikorsky (Helicopters), UTC Fire & Security (Chubb & Kidde),
Hamilton Sundstrand and UTC Power.
It has operations in more than 170 countries, employing approximately 32,000 people
worldwide and revenues of $11.4billion in 2009. Over the decades, Carrier Founded in 1915 by
Dr.Willis Carrier, the inventor of modern air-conditioning, Carrier has developed into being the
world’s largest provider of air-conditioning, heating and commercial name has become
synonymous with reliability, innovation, commitment, superior technology, cutting-edge
manufacturing and world-class performance. It also has one of the most prestigious installation
bases in the world.
Carrier started its operations in India with setting up of companies namely Carrier Aircon
Limited in 1986, and Carrier Refrigeration Private Limited in 1992. Carrier brought to the Indian
consumer, access to advanced technology and air-conditioning and refrigeration products from
the worldwide product portfolio of Carrier. In October, 2006, Carrier Aircon merged with Carrier
Refrigeration and the name of the merged entity was changed to “Carrier Air-conditioning &
Refrigeration Limited” (Carrier India).
Carrier India's manufacturing facility at Gurgaon produces air conditioning equipments
including Window Room Air conditioners, Hi- Wall Splits, Slimpak Splits, Cassette Splits, Ducted
Splits and Chillers. It also manufactures Refrigeration Equipments including Cold chain
equipment comprising of Cold Rooms, Truck Refrigeration & Bus Air-conditioning system,
Freezers, Visi Coolers & Super Market Products.
Carrier's India operation has many firsts to its credit:
First air conditioning Company to introduce the concept of a Comfort Shop.
First to develop exclusive dealer networks in the country. Today, there are over 345
Carrier exclusive dealers in India.
Setup the Willis Carrier Engineering Centre to provide technological support to develop
new products and upgrade existing ones.
Carrier India pioneered HVAC dealer concept in the country to give an unparalleled
experience to its customers. The Company has built a strong distribution network on a
platform of partnership and trust. The Company boasts of a strong network of over 590
sales and service dealers and 1000 distributors and retailers. The cornerstone of the
Company’s distribution is the Willis Carrier Club Dealer (WCCD).
Willis Carrier Club is a nationwide endorsement of the Company’s best dealers in the
country. This endorsement not only gives unique identity to the dealers, but also helps
drive customer satisfaction through ‘expertise,’ ‘the hallmark of Carrier’, the inventor of
modern air-conditioning. Apart from the national traditional channel, the Company has
also developed relationships with most of the organized retail chains in the country.
Carrier is one of the first to adopt the energy efficiency label issued by the Bureau of
Energy Efficiency (BEE) - Awarded the First prize for energy conservation in Consumer
Goods Sector in 2007 & 2008 by the Ministry of Power, Govt. of India
Carrier is committed to the highest levels of quality and service. It is the company’s
endeavour to ensure total customer satisfaction. For this the Company has a network of
over 475 service dealers and 90 service franchisees to provide a range of services.
Carrier India Vision:
To be recognized as the leader in every segment we operate in by:
Being ‘customer focused’ in everything we do and following ACE diligently
Delivering ‘best in class’ quality in the product as well as aftermarket service
Being ‘environmentally conscious’ in areas of energy efficiency and pollution
Establishing a performance culture that respects human values & team work
Remaining embedded in our core values of EH&S and ethics
Thereby growing profitably and ahead of the market every year, making Carrier a destination of
choice for all within HVAC&R industry.
Mission
To be our customers first choice for air conditioning, heating and refrigeration solutions
everywhere around the world.
Making the World a Better Place To Live, Work and Play
From the time our founder invented the basics of modern air conditioning in 1902, Carrier has
been the world leader in air conditioning, heating and refrigeration systems. A wholly-owned
subsidiary of United Technologies Corporation, Carrier is built upon a legacy of innovation and
commitment. Through our market-leading products and solutions, we are constantly striving to
help people live more comfortable, healthy and productive lives.
Ensuring Comfort and Peace of Mind, Everywhere Around the World
Across the globe and in virtually every facet of daily life, Carrier is there. We create comfortable
environments, regardless of the climate. We safeguard the global food supply by preserving the
quality and freshness of food and beverages. We ensure health and well-being by enabling the
proper transport and delivery of vital medical supplies under exacting conditions. We provide
solutions that maintain exceptional indoor air quality — controlling humidity, allergens and
harmful pollutants. At every touch point with consumers and in every commercial undertaking
we pursue, we are committed to delivering exceptional products and services that meet our
customers’ diverse needs.
As a global citizen, we also recognize the vital importance of maintaining a responsible balance
between the comfort we create today and the world we live in tomorrow. Carrier is an industry
leader in energy efficiency, dedicated to creating environmentally sound products and solutions
that fulfill our customers’ demands while preserving our precious natural resources.
Leading the Global Market
Headquartered in Farmington, Connecticut, USA, with approximately 45,000 employees in 172
countries, Carrier combines its global HVAC and refrigeration expertise with the responsiveness
of its local operations to lead nearly every geographic market, on every continent. Our
continued success is a testament to our staunch commitment to providing the highest level of
quality and service to our customers around the world.
Sharing Our Legacy of Success and Innovation
Our web site serves as your link to the world of Carrier. We invite you to view our showcase of
successful installations, gain a glimpse into the revolutionary vision behind the development of
modern air conditioning, and learn about Carrier’s dedication to balancing the promise of
innovation with the critical need to preserve our environmentfor generations to come.
Values
Performance
• We strive for continuous growth to reinforce our leadership position.
• We achieve world-class financial performance.
• We continuously improve the productivity of our assets and resources.
Innovation
• We are a company of ideas, committed to research and development.
• Our founder inspires us to reach the next innovative, powerful and marketable idea.
Employee Development
• We listen to our employees and treat each other with respect.
• We care for our employees’ health and safety.
• We are committed to employee and management development.
• We value diversity in individuals and cultures.
Customer Care
• We listen to our customers and respond to their needs.
• We make it easy to do business with us.
• We are committed to excellence in customer satisfaction.
Business Practices
• We maintain the highest ethical standards.
• We actively support the communities in which we do business.
7 s Framework
Strategy, Style:
Carrier wants to be our customers’ first choice for air conditioning, heating and refrigeration
solutions everywhere around the world. Markets: Carrier has priced its products higher than
other Korean and local brands like LG and Samsung. So the market segment Carrier is catering
to is middle class and upper middle class who do not base their decisions only on price but also
on other factors like quality.The sustainable competitive advantage of the product is quality and
reliability. Carrier is one of the most highly regarded brands in terms of quality
Skills and shared values
Carrier is among the first companies to set energy reduction goals for their factories in 1988.
This led to the first company-wide global environmental, health and safety goals in 1997. More
recently, from 2000 to 2009, Carrier reduced its air emissions by 76 percent and water usage by
52 percent on an absolute basis. Since 2006, they have lowered our greenhouse gas emissions
by 33 percent.
Carrier’s environmental commitment extends beyond our walls to our communities and the
marketplace. Carrier is the only company in the world to be a founding member of the U.S.,
Argentina, China and India Green Building Councils. In fact, Carrier was instrumental in
launching the U.S. Green Building Council in 1993 and was the first company in the world to
join the organization. Carrier’s Rick Fedrizzi was the council’s first chairman, and later went on
to lead the organization as President and CEO.
In China, Carrier serves as a formal international advisor to the China Green Building Council,
having helped introduce the green building council model to that country in 2002.
In 2010, Carrier unveiled a new brand identity emphasizing its roots in environmental
sustainability. The new identity combines the elements of a stylized green leaf exclusive to
Carrier with the existing “turn to the experts” theme line.
Staffing
Carrier actively employs degreed and advanced degreed professionals from leading
colleges of the country in disciplines of mechanical, electrical, electronics, software,
sales and engineering as well as experienced manufacturing professionals and
marketing and sales associates
Organizational Structure:
Carrier follows divisional structure where the organization is matrix into three units business, operations and functional units and each unit is divided further into 2 product divisions RLC and
home care.
SWOT ANALYISIS
Strengths:
First air-conditioning company to introduce the concept of a Comfort Shop.
First to develop exclusive dealer network in the country. Today, there are over 400 Carrier
Aircon exclusive dealers and 60 Carrier compressor dealers in India.
It has a strong setup, Willis Carrier Engineering Center, to provide technological support to
develop new products and upgrade existing ones.
It has successfully introduced finance schemes that have taken air-conditioners out of the
luxury category and made it affordable for the home buyer.
Carrier has a strong nation-wide infrastructure with around 20 offices and 400 odd exclusive
dealers.
Weaknesses:
Highly dependent on parent company for research and development and technological
support.
Opportunities:
Confederation of Indian Industry (CII) has urged the government to reduce special excise
duty(SED) on air-conditioners from 16% to 8% in the forthcoming budget.
Growing Indian middle class (approx. 250 m) characterized with low penetration level of
consumer durable.
Advent of internet provides an excellent opportunity to reach to a large base of
customers and cut costs.
Threats:
It is facing fierce competition from local brands and much cheaper Korean brands like
LG and Samsung which have acquired considerable market share in short time ,have a
better network and better insights about the local market conditions.
Threat of cheaper exports from China.
Air Conditioner Industry:
The size of the air-conditioner industry in India is about Rs 2,000 crore. The industry can be sub-
divided into non-ducted and ducted products. The demand for non-ducted products window
air-conditioners and mini-splits comes from both households and corporate. The demand for
ducted products central plants, packaged air-conditioners and ducted splits is only from the
corporate.
Corporate traditionally accounted for about 60 per cent of the total demand for air
conditioners. Corporate sector is still the major demand driver in this industry but because of
the burgeoning Indian middle class there has been a noticeable jump in the demand for air-
conditioners from the household segment
Air-Conditioner in India
Product Segment Size (Rs. in crores)
Window and Split 900 (Approx.)
Central and Chiller 600 (Approx.)
The domestic Window Air-conditioner has been growing at the fastest rate but this has been
accompanied by increasing competition leading to low profit margins. Profits in this segment
are driven by volume growth.
Against most developing countries, Indian market is Window A.C. oriented - both commercially
as well as household. Considering the low penetration of A.C.s, the segment is likely to grow, at
least for the next 5 to 10 years.
An important player in the Window A.C. segment is the unorganized sector. Current market
share of organized and unorganized players are 60% and 40% respectively.
The market for air-conditioners was earlier dominated by the unorganized sector as a result of
high excise duty. This sector accounted for around 55 to 60% of the market share only 2-3 years
ago.
The proportion used to be 30:70 during 91-92. Then lowering of excise duties from 110% to
40% favored the organized sector by narrowing the price gap e.g., a 1.5 ton air-conditioner
which costs Rs.45,000/- in 91-92, now costs below Rs. 30,000/- in the organized sector against
Rs. 24,000/- in the unorganized sector. This has led to the organized sector entering into the
unorganized sector's share and also due to brand awareness on part of the customers.
Industry Segments
Volume (Units) Value (Rs. in
crores)
Window Air-conditioner 3,00,000 900
Split Air-conditioner 75,000 300
Package Air-conditioner 30,000 290
Total 4,05,000 1490
The Government Policy Regarding A.C.s
The attitude of the government to the industry in general has been influenced by the
perception of white good as a luxury item. Only after 1993 did the government liberalizes its
attitude towards white goods.
Till 1994, excise duty on ACs varied from Rs.7,000/- for 0.5 ton ACs to Rs. 9,000 for 1.5 ton
models. In the 1994-95 to 1996-97 budgets, the govt. gave considerable relief to the Air-
conditioning sector. The excise duty was reduced from 80% to 60% in 1994-95 and from 60% to
30% in the following years. In the Exim policy, ACs continued to be in the negative list which
means they cannot be imported without license or as baggage.
Demand
Demand for air conditioners is on a rise as the disposable income and hence the purchasing
power of the Indian middle class is increasing, air conditioner is no longer a luxury but a
necessity. The price of the air conditioner is also falling with cheaper Korean and Indian players
entering the market.
According to industry sources, most of the demand for the air conditioners which is 70-80% of
the air conditioners sold comes from industrial applications, hospitals, buses and not merely
for comfort, as it is widely believed. Government is one of the major consumers as far as the
industrial applications are concerned.
The demand for air conditioners is expected to grow at the rate of 25% per annum. In this
segment, the demand for window air conditioners, which currently accounts for 70% of the
total demand is likely to reduce to 60% by year 2011. Split air conditioners which are not very
popular now, are expected to pickup and account for 30% of the demand by 2010. This means
that out of a total of 34 lakh units of air conditioners sold in 2010, around 23 lakh will be
window air conditioners and the remaining 11 lakh units will be split types.
Profitability
Margins in the industry vary depending upon the segment, model and sizes, between broad
ranges of 10 to 20%. However margins in the window segment are the least. But these are
reasonable in the case of Split AIR CONDITIONERs. Even then, for players who have their own
Compressor Manufacturing facilities, margins are higher. Margins are highest in Central and
Packaged Air-conditioning segments ranging between 20-24%.
The important factors that govern profitability in the Air-conditioning Industry are Product
Technology, Volumes, Distribution Network, After Sales Service and Aesthetics. Most critical in
the Product Technology is the Compressor which contributes about 40% of the total cost. The
most common type is reciprocating compressor. This is well suited for the Indian conditions
where dust and ambient temperatures are relatively high. But the wear and tear is quite high
necessitating frequent repairs.
The rotary compressor is suitable for conditions where temperature does not exceed 55 degree
Celsius. Beyond this, it’s cooling efficiency decreases. Hence it is suitable for coastal areas like
Mumbai where temperatures are low as compared to central and northern India. Also it cannot
withstand voltage fluctuations which are common in India and once spoiled it cannot be
repaired. But the advantage is that it is much more efficient than the reciprocating one at
moderate temperatures, consuming less power with negligible wear and tear problems.
The latest compressor technology is the scroll compressors. It has no part which can cause wear
and tear, is very efficient under variety of conditions and can be repaired instead of being
replaced. The three world leaders in compressor technology Copeland, Bristol and Tacumbch
already have a presence in India through their collaboration with Kirloskar, Carrier Aircon and
SIEL respectively.
Since this is a volume driven business in the window segment and technology driven in the
package segment, distribution network and after sales services are the deciding factors in these
two segments respectively. Being a consumer durable industry the activities aspect too is
important. While 40 to 45% of the sales in the window segment come from first three months
of April to June and the rest from the other months, there is no such seasonality in other
segments, so companies have to manage inventory with minimum cost.
Outlook
During 1999-2000 a total of about 7 lakh air conditioning units were sold and this is expected to
rise to a phenomenal 25 lakh units by the year 2011. The industry has been growing at a
healthy compound rate of 30% for the past three years and this pace is expected to continue in
the near future. While the growth rate in the domestic window segment is expected to be
highest at around 50%, other segments are also expected to register healthy growth rates of
around 28%. With all the major players investing money towards higher capacities and new
entrants setting up their plants, supply is expected to keep pace with demand.
Increasing income levels and change in life-styles have led to heavy demand for consumer
durables, esp. air conditioners, washing machines and refrigerators. Since last two three years
they have penetrated most urban households.
Today, white goods is one of the most brand driven product segments where companies
success depends upon marketing power in terms of building brand equity and being able to
maintain and support nation-wide sales and distribution network is a prime requirement for
effective market penetration. The cost of servicing and maintaining big distribution network is
phenomenal and this is one of the factors that resulted in regional restriction of some brands.
In future demand composition is expected to tilt towards corporates, as more electronic
gadgets are used at the work place. The focus will shift from comfort cooling, to process cooling
where precise ambient conditions have to be maintained which naturally means that
technology will play an important role.
History of Air Conditioners
Air conditioning as we know it today is a rather new technology although different form of
cooling air and dehumidifying the air has been around for centuries. The ancient Romans used
aqua duct water to circulate through the walls of the wealthiest homes. This is just one example
of ancient air conditioning. The Chinese were also were also obsessed
with cooling the air through water and wind. They used various methods to cool their interior
buildings and stay cool during the hot months. In the 1800's one man came close to inventing
what is similar to modern day air conditioning.
In 1820 British Inventor Michael Faraday discovered that ammonia could chill the air when
compressed and liquidized and then allowed to evaporate. In 1841, John Gorrie, a medical
doctor discovered that he could use compressor technology to create ice to cool his patients
rooms in Florida. This discovery gave Gorrie the great aspiration of inventing the first air
conditioning unit. He came very close. His first pro type leaked and was unsuccessful. He
secured funding and his patent was approved in 1851. His funding partner died and he lost the
money to see his dream realized. He later died in 1855 and with him his vision of indoor air
conditioning died as well for the next 50 years.
The commercially available of air conditioning applications started based on the need to cool air
for industrial processes than for personal comfort. The first electrical air conditioning was
invented by Willis Haviland Carrier in the year 1902. He was also known as the Father of
Modern Air Conditioning. His invention was designed to improve the manufacturing process of
a printing plant. By controlling the temperature and humidity of the plant, the processes were
made more efficient as the paper size and the ink alignment were consistently maintained.
The Carrier Air Conditioning Company of America was established by him to meet the demand
of better productivity in the workplace.
Today, Carrier Corporation is the biggest air conditioner manufacturer and marketing
corporation in the world in central air
conditioning.
The term air conditioning was first coined by Stuart W. Cramer of Charlotte, North Carolina in
1906. Cramer was trying to create ways to add moisture to the air in his textile plants. Cramer
used the term Air conditioning in a papers filed to the patent office for his invention of a water
conditioning unit which was required to control the humidity in textile plants. Willis Carrier took
the term air conditioning and put it into his companies name as he used evaporative cooling to
provide a cooling effect in the air.
The first air conditioners proved to be hazardous to human’s health when the toxic gases
leaked. The use of ammonia, methyl chloride and propane. These toxic, flammable gases
tended to leak causing fatal results. In 1928 Thomas Midgley, Jr. was the first to create an air
conditioner that used Freon. This was found to be much safer for humans but had disastrous
effects to the environme
7O’S of a small scale air-conditioners
7 O’S SCOPE
Occupants Institutes,Shops,Homes,ShoppingMalls,Restaurants,Clinics
Objects Low Maintaince,High Power efficiency, Low Price,Durability,Aesthetics
Objectives Luxury, Status Symbol,Necessit,
Organizations Individuals - Entire family, Shops, ClinicsOrganizations – Technical
Consultants, Stake holders,Operations
Operations Market Place -> Cash, Credit Cards, Cheque , DemandDrafts
Occasion Climatic conditions, Discount Seasons, Gifts, New Residential or Commercial
Establishment, Replacement
Outlets Retail Shops, Authorized Dealers, Hyper Markets, Specialized Stores, e-stores
Competitors of Carrier India:
In Air-conditioning Carrier fair conditioneres stiff competition from players like Hitachi,
Whirlpool, LG, Haier, Samsung, Voltas, Videocon, General, Onida and many more .They differ on
the basis of price, features, quality and after sales service
Carrier has been present in the Indian market since 1902 and has played a pivotal role in the
growth of air conditioning market in India. Carrier has the market share of 45% as far as both
industrial and home solutions are concerned which includes products like window, ducted,
cassette air conditioners ;air ,water and absorption chillers and air conditioning for bus and
trucks. The company has wide range of products . Refer appendix.
BRAND PERCEPTION
PRODUCT: As far as the product is concerned, Carrier enjoys more trust among the people.
Awareness of the brand among the people is high.
From the survey conducted we can determine that the overall presence of Carrier is equal to
the other four brands, which would primarily mean that the reach of the brand to the people is
satisfactory. But Korean brands like LG and Samsung are selling the most in western and
eastern parts of Delhi due to their more visibility as far as advertisements are concerned and a
considerable price difference as compared to brands like Carrier, General and Hitachi. Carrier
relies mainly on the age old trust and loyal customer base it has built over the past hundred
years.
Due to high price, Carrier is lagging behind LG and Samsung in terms of shelf space thus
depriving the potential customers the first hand experience of the functioning of the air
conditioner thus losing on potential customers.
The Point of Purchase material plays an important role in building the brand value at the stores.
According to the dealers Carrier is lagging behind when it comes to POP material as compared
to LG , Samsung and Voltas.
But according to the Carrier dealers the best publicity a company can get is the word of mouth
publicity and the large loyal customer base Carrier has built over the years.
After Sales:
Customers support following the purchase of a product or service. In some cases, after-sales
service can be almost as important as the initial purchase. The manufacturer, retailer, or service
provider determines what is included in any warranty (or guarantee) package. This will include
the duration of the warranty traditionally one year from the date of purchase, but increasingly
two or more year’s maintenance and/or replacement policy, items included/excluded, labor
costs, and speed of response. In the case of a service provider, after sales service might include
additional training or helpdesk availability. Of equal importance is the customer's perception of
the degree of willingness with which a dealer deals with a question or complaint, speed of
response, and action taken.
Pricing
Carrier Window AIR CONDITIONER Price List
Model Price
Durakool 2.0 Ton 22100/-
Durakool 1.5 Ton 18000/-
DURAKOOL X1 1.0Ton 15,900/-
DURAKOOL X2
0.75Ton 13,800/-
DURAKOOL X1 0.75T 13,200/-
Carrier-Gen X2 2.0 Ton 21,700/-
Carrier-Gen X1 15,500/
Carrier-Gen X2 17,200/
Estrella 1.5 Ton 22,900/
Carrier Split AIR CONDITIONER
Model Price
Carrier-SX1 (2.0T) 33,000/-
Carrier-SX1 (1.5T) 29,000/-
Carrier-SX1 (1.0T) 24,000/-
Carrier-Durakool (2.0T) 33,000/-
Carrier-Durakool (1.5T) 29,500/-
Carrier-Durakool (1.0T) 24,500/-
Carrier-Estrella (1.0T) 30,500/-
Carrier-Estrella (2.0T) 40,500/-
Carrier-Estrella (1.5T) 36,500/-
There is significant difference in prices offered by Carrier and other brands like LG, Samsung and
Voltas. Carrier is priced higher than other leading brands .Many dealers believe that since most
of the companies are offering similar products .There is not much product differentiation, so
the second P of marketing plays an important role. Because of the lowest price of LG ,it has
captured a major market share. The dealer margin depends on the number of units sold.
Margin on the basis of number of units sold are:
Quantity Margin
15-50 2%
51-75 2.50%
75-125 3%
126-175 3%
176-220 4%
>220 5%
Margin offered to the dealers by all the companies was almost the same as told by the dealers
themselves. But LG which is the market leader provides an incentive of 8%. Hence the dealers
will tend to push LG as compared to other brands. It is very important for Carrier to provide
better margins to its dealers so that there is some incentive for them to push their brand. Also
margins offered to big giants like Croma are far more than those offered to small dealers. So
these dealers find it difficult to compete with high end retail stores. Spares are also expensive
as compared to LG and Samsung.
Major Issues with product and service
1. After sales service: After sales service of carrier was criticized by all the dealers .Service
of carrier is poor and this is one of the major reasons it is lagging behind LG in the home
segment. There are not enough service centres .On the other hand most of the dealers
and customers were satisfied with the service provided by LG
2. A stock out is a major worry for quite few dealers. According to some dealers like Amba
Motors in Jhandewalah in west Delhi during the peak season which is from March to
May, demand is not met. So quite a few customers have to be kept waiting for the
product.
3. Spare parts are a major issue as they are not available readily. While comparing with
market leader LG spares are readily available.
4. There were also complaints regarding the excessive noise which machine makes.
S. No
Most Important
Parameter
Percentage of
Respondents
1 Price 25
2 Quality 31
3 After Sales Service 24
4 Advertisements 14
5 Offers 6
As far as the dealers are concerned the most important parameter which impacts the sales of
air conditioners were price, quality and after sales service. Brands like LG were rated high as far
as after sales service is concerned and price of the product. Carrier is a more trusted brand as
far as quality is concerned.
METHODOLOGY
The basis of the project was a survey plan. Using surveys all the appropriate data was collected
through dealers located in various parts of Delhi.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology includes logic behind the methods used in the context of a research
study and it explains why a particular method has been used in the preference of the other
methods.
Research design:
Research design is important primarily because of the increased complexity in the market as
well as marketing approaches available to the researchers. In fact, it is the key to the evolution
of successful marketing strategies and programmers. It is an important tool to study buyer’s
behavior, consumption pattern, brand loyalty, and focus market changes. A research design
specifies the methods and procedures for conducting a particular study. Firstly questionnaire
had to designed for collection of appropriate data from dealers and distributors
Research Approach: Field surveys were used to collect data for the study.
The entire Delhi region was divided into five zones North, South, East, Central and West.
Data Collection Methods: Primary data is the data collected from the first hand experience.
Primary data was collected through field surveys with the help of questionnaires. The
questionnaire had questions which would help in understanding the 4 Ps of marketing as far as
Carrier air conditioners are concerned. Questionnaire had both open ended and close ended
questions.
Secondary Data: The information which already exists is secondary data which was collected
through magazines, websites like just dial and trade key, text books and magazines. I had to
find information about the distributors and dealers with a multi brand portfolio and even the
exclusive dealers selling consumer durables like Air Conditioners, Refrigerators, Washing
Machines, and Televisions etc located in various parts of Delhi. The list of the dealers and
distributors already dealing with Carrier products was given to me by the manager and for
those who were not dealing with Carrier products was found through websites like just dial and
trade key and various news papers like Times of India and classified Analysis
Competitors Analysis –
Competitor analysis in marketing and strategic management is an assessment of the strengths
and weaknesses of current and potential competitors. This analysis provides both an offensive
and defensive strategic context through which to identify opportunities and threats.
Considering the competitors in business market, Blue Star, LG, Voltas are some of the
prominent players –
1. LG is the major competitor of Carrier as far as home solutions is concerned. The Korean
company has established a foothold in the Indian market by offering cheaper products
and by providing a better after sales service but as far as industrial solutions are
concerned, it is still lagging behind. Through intensive marketing of the product through
mass media, visibility of the brand is more as far as the Indian consumers are concerned
but a knowledgeable customers still may not prefer this brand as it lacks as far as quality
is concerned as told by the multi brand dealers themselves. But LG also has one of the
best after sales service . Since LG provides an incentive of 8% where as Carrier provides
incentive upto 5%, therefore dealers tend to push LG where ever possible and this is one
of the reasons it has a considerable market share.
2. Voltas being another major competitor of Carrier. Voltas has the backing of Tata group
behind it . Voltas has taken the advantage of the trust which Tata group of companies
has built over the years. But some dealers mentioned that it is priced too high.
3. GODREJ: Godrej has a wide range of air conditioners in window and split segment. In the
window AC segment, the company offers mechanical and electronic models between
0.8t to 1.5t. In the split AC segment, grill and flat models are available in capacities
ranging from 1t to 2.0t.
4. Hitachi is considered as the major competitor of Carrier as far as quality is
considered .Both the brands are on expensive ends. Hitachi home and life solutions
(India) ltd, offer Quadricool tm and Quadricool models in the window AC segment in
capacities ranging from 1.0t to 2.0t. Atom UV and atom +one model are available in the
split air conditioner segment in capacities 1.0t to 2.0t. Quadricool tm is the latest first
from the long list of firsts in Hitachi. It has two independent motors that drive the inside
and outside fans independently.
5. Bluestar: The Company recorded sales 60,000 units of air conditioners in the year 2009.
Out of this, 23,000 units were sold in the window segments, while 37,000 units were
sold in the split ac segment. Delhi, Mumbai, Kolkata, Chennai, Bangalore, Ahmedabad,
and Hyderabad account for 40 percent of the company’s sales, whereas non metro cities
and towns account for the balance 60 percent of its sales. Blue star directed its
investments on a combination of brand building and field promotional activities. In
2008, the company recorded 50 percent growth in exports. Bluestar also offers
customised solutions. But still in terms of customized offerings, it is still not a major
threat to Carrier as they are not as exhaustive as those of Carrier. The flexibility of
Carrier in offering the customized services even with non-Carrier products provides it
unique advantage and competence which cannot be replicated in the short run by its
competitors.
BRAND COMPARISON
COMPANY: L.G. ELECTRONICS
Punch lines: “Life’s good”, “Think about tomorrow”
Basis for campaign: Brand name ,Linking happiness with health ‘happiness in every breath’, Its
worlds no one manufacture of ac.
Features: Neo plasma health filters, Gold fins, Chaos logic, Energy savers, Jet cool, Anti bacterial
filters
Promotional schemes: 1 + 4 years warranty
Type of ac Capacity (in tons )
Window ac 1, 1.5 and 2
Split ac 1, 1.5 and 2
Wall mounted 1,1.5 and 2
Multi split 2,3, and 4
Floor standing 2,2.5 and 3
COMPANY: SAMSUNG
Punch lines:“Breaths life”
Basis for campaign:
Brand name, Clean and purified air “help your child breath free”, Own compressor
Features: Turbo power, Quick power, Optimizer, Bio health plus, Tropical Rotatory compressor,
Compact design, Bionizer, Silver Nano health system
Promotional schemes: 1 + 4 years warranty for corp., 0% interest without any files changes
Types of ac Capacity (in tons)
Window ac 1,1.5 and 2
Split ac 1,1.5 and 2
COMPANY: VOLTAS
Punch lines: “Ac’s with IQ”
Basis for campaign: Old brand, AC with IQ, Sleek & streamlined body
Features : Vertis Power saver mode, air filter, Timer, Uniform cooling, Burst proof capacitor,
Vitamin-c filter, Blue fin technology
Promotional schemes: 1 + 4 years warranty, 0% finance available
Types of ac Capacity ( in tons)
Vertis
Window ac 1,1.5 and 2
High wall split ac 1,1.5,2 and 3
Vectra
Window ac O.75,1,1.5 and 2
High wall split ac 1,1.5,2 and 3
COMPANY: ONIDA
Punch line: “Nothing but the truth”
Basis for campaign: Well engineered ac excellent cooling capacity
Promotional schemes: 1 + 4 years warranty
Types of ac Capacity ( in tons)
Window ac 1.5, 2
Split ac 1.5, 2
COMPANY: HITACHI
Punch line:”inspire the next”
Basis for campaign: Brand name
Features: Twin motor and twin turbo technology, Lower noise level, Low power consumption,
Low derating
Promotional schemes: 1 + 4 years warranty
Types of ac Capacity ( in tons)
Windows ac 1.5, 2
Split ac 1.5, 2
COMPANY: WHIRLPOOL
Punch lines: “Whirlpool every where, every home…Every home, with pride, passion,
performance.”
Basis for campaign: Brand name, Low electricity consumption (Show electricity bill annual
savings of Rs. 7500)
Features: Quick cool tm function, Sleep function, Low electricity consumption, Steam air
purification
Promotional lines: 1 + 4 years warranty
Types of ac Capacity (in tons)
Windows ac 1.5, 2
Split ac 1.5, 2
COMPANY: O-GENERAL
Punch line:” the extreme machine”
Basis for campaign: Brand name
Features: Extremely cool , Eco-friendly air conditioner, Unique super wave technology, High EER
compressor, Unique 3-Dimensional air Control
Promotional schemes: 1 + 4 years warranty
Types of ac Capacity ( in tons)
Window ac 1.5, 2
Split ac 1.5, 2
COMPANY: GODREJ
Punch lines: “Introducing India’s most powerful ac”
Basis for campaign: Old and reputed brand, India’s most powerful ac
Features: Powerful compressor, Digital power saver control, Super silent compressor, Bluefin
technology
Promotional schemes: 1 + 4 year warranty
Types of ac Capacity ( in tons)
Windows ac 1 and 1.5
Split ac 1.5 and 2
COMPANY: HAIER
Punch lines: “Ac as active as technology”
Basis for campaign: Good quality ACs, Active all tech
Features: Active air tech, Healthy negative ions Intelligent UV ray generator, 4 stage air filter ,
Bacteria killing medium, Powerful dehumidifier
Promotional schemes: 1 + 4 year warranty
Types of ac Capacity ( in tons)
Window ac 1.5 ,2
Split ac 1.5 ,2
COMPANY: ELECTROLUX
Punch line: “Breathe fresh, live fresh”
Basis for campaign: Effective ACs, Active all technology
Features: Oxigenerator technology, Anti-bacteria filter, Rust proof fins, Low electricity bills.
Promotional schemes: 1 + 4 year warranty
Types of ac Capacity ( in tons)
Window 1,1.5,1.7 and 2
Split 1,1.5 and 2
Floor standing 2 ,2.5
Cassette 2 and 4
COMPANY: VIDEOCON
Punch line: “An air of superiority”
Basis for campaign: Various offers, Blower plus cool
Features: Ionizer, Anti freeze thermostat, Self diagnosis function
Promotional schemes: 1 + 4 year warranty
Type of ac Capacity ( in tons)
Windows ac 1.5 ,2
Spilt ac 2,2.5
The project deals with the study into the marketing mix of Carrier In the Delhi Air- Conditioner
Market. The report consists of the primary data obtained from the dealers. The attributes,
which defined the data, were shelf space, window display, prices given, p.o.p. material, dealer
preference, general positive and negative attributes for various brands, dealer interface, and
finance schemes offered.
In all I visited 50 outlets spread all over Delhi (includes dealers and retailer), who dealt in air
conditioner I also interviewed 50 customers at showrooms across Delhi. Data thus obtained was
then grouped and analyzed, after which the inferences were drawn.
I observed that L.G. was undoubtedly the market leader. In Delhi air conditioner market LG has
the highest penetration, as it is available in almost 75% of the outlets while Carrier is present in
only 64% of the outlets. L.G. also leads in the other categories like the window display (40%),
shelf space (50%) and POP (40%) while Voltas has the share of 7%, 28% and 34% in the
respective categories. Although Voltas is No.2 brand in Delhi region but it has the highest
corporate customer or we can say, institutional sales in comparison to other air conditioner
brands.
Of the outlets visited, 44% claim L.G. to be the top Brand whereas Carrier has 21% of the
outlets claim it to be the top Brand. The strengths of L.G. lie in its low price and good quality
whereas Hitachi’s and Carrier’s strengths lie in its superior quality. Whereas, on the negative
side the claim that LG is not as durable as other brands & has a life expectancy less than other
brands like Carrier ,Voltas, General etc
For Carrier the most spoken about negative is its high price & poor after sales service.
Learning from the project
1. LG is undoubtedly the market leader in air conditioners segment of the consumer
durables market in India.
2. According to 31% of the dealers, quality is the most important parameter which
derives the sales.
3. Carrier, Hitachi and General are the most trusted brands in terms of quality. Among
these Carrier is the cheapest and General is the most expensive brand
4. LG, Samsung and Voltas are the most demanded brands because of better visibility due
to more advertisements
5. While visiting the shop we know that LG gives high profit margin as compare to other
competitors.
6. Star rating plays an important role in air conditioners segment.
7. LG has the best network of service centres all over Delhi. It provides the best after sales
service.
8. After sales service is the greatest concern for Carrier .All the dealers were unsatisfied
the service offered by carrier. Dealers claim that there is no follow up calls from Carrier
Appendix
Carrier India Operations
3. WWW.MANAGEMENTTODAY.com
4. BUSINESS WORD MAGAZINE
5. BUSINESS TODAY