Project Report Onsamsung Electronics

8/8/2019 Project Report Onsamsung Electronics

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FINAL REPORT

ON

COMPARATIVE MARKET ANALYSIS OF

SAMSUNG ELECTRONICS VIS- A- VIS ITS

COMPETITORS

SAMSUNG INDIA ELECTRONICS PVT LTD.

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R E P O R T

O N

COMPARATIVE MARKET ANALYSIS OF SAMSUNGELECTRONICS

VIS- A- VIS ITS COMPETITORS

A report submitted in partial fulfillment of the requirementsof

MBA Program of Jaipuria Institute of Management

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TABLE OF CONTENTS

Acknowledgement4

1. Abstract .................. 52. Introduction ..6

a. Overview of the Consumer durable sector..7-8b. Company profile..9-10c. Laying the foundation to become a world class company11-12d. Comparative analysis 13-15

e. Consumer perception..16

4. Objective of Research.17-18

a. Research Methodology..........19

b. Sources of data collection20

5. Analysis of Dealers Questionnaire on CTV.21-27

6. Analysis of Dealers Questionnaire on AC28-33

7. Findings from the Consumer Questionnaire34-41

8. Analysis of sales Data of Samsung..42-46

9. Findings of the Report.............47-4810. References 50

11. Proposed Questionnaire..51-62

12. Conclusion.63

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ABSTRACT

All human actions have one of these seven causes: chance, nature,compulsion, habit, reason, passion and desire . As a human being the major cause to take over this project was reason. The reason is to accomplish my task, aim,and motive of enhancing my knowledge and to know more about the consumer durable industry. Consumer durables have become inseparable in this era of modernization and thus influence even the common mens life. This is one of thefastest growing industry with an growth of about 8% every year. Invention and the

launch of new technology is the most important tool of this industry. To maintain thequality of products provided to the customers the companies dealing in the consumer durable products has to undergo extensive study and research work. This projectwork is a small attempt to understand the dealer, retailer as well as the consumer behavior in regards to the colour television & Air conditioners and to find out theposition of Samsung among its competitors.This SIP project is being conducted on Consumer durables i.e. CTV & Air conditioner

for (Samsung India Electronics private limited), I am focusing onComparative Marketand consumer behavior study of consumer durables of Samsung vis--vis its

competitors i.e. Sony, LG, Videocon, Haier, Bluestar. In CTV & A.C segment.

For this the Survey was conducted with a set of questionnaire containing thequestions which helped in obtaining the desired information from the dealers &retailers. In the next segment of study the consumers has be targeted with a set of questionnaire for the desired information. Till date around 100 dealers And Retailerswere approached in the Chandigarh and its neighboring districts i.e. SAS nagar mohali, zirakpur in Patiala and Panchkulla in hariyana state. The information wasobtained through questionnaire as well as by the interview method. The copy of questionnaire is being attached with this report. The method of personnel interviewwas also adopted for those who were unwilling to give any information in writing. Atpresent around 50 of such interviews have been conducted keeping in mind therequirements of the survey being conducted.

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This report also includes the analysis of around 10 years sales data. This data withthe help of Le square method is used to predict the future demand as well as the

salesOf Samsung.

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INTRODUCTION

A comparative marketing study of Samsung Electronics vis--vis competitors (L.G,Haier, Videocon, Bluestar, Sony ) in the area of Chandigarh and

Surroundings

All progress is born of inquiry. Doubt is often better than overconfidence, for it leadsto inquiry and inquiry leads to investigation Research inculcates scientific andinductive thinking and it promotes the development of logical habits of thinking andorganization.

Research is a common parlance refers to a search of knowledge. The advanced

learners Dictionary of current English lays down the meaning of research as a careful

investigation or inquiry especially through search for new facts in any branch of

Knowledge

What is comparative Marketing study ? In comparative marketing research we take our competitors products and make comparison through consumer with our ownproducts.

Why Comparative Marketing study? C omparative marketing study/research compriseone of the most important and fascinating task of marketing. It provides information for marketing decision making, any problem that are identified and investigated further byusing problem solving techniques with the objective of arriving at solution. The mostimportant innovation in the new approach is to study simultaneously differentorganizational forms of business interest representation.The aim of the study is to

point out the best (in this respect) among the alternatives that are being

studied. The final aim perhaps is not only to find the best, but also to improve it

or similar objects later on.

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Overview of the Consumer Durable Market

The consumer durable market in India has seen a proliferation of brands and productcategories in recent years.Most major international brands from Japan, Korea, US, Europe and China have beenlaunched in India withvarying degrees of success. One of the largest barriers to entry for any brand in Indiais the distribution network.The cost of servicing the network is huge for any brand. The consumer is aware of thecost-benefit, or value for

Money aspect. Financing options are crucial in case of high-priced products. Theyincrease the affordability for aWider segment of population. Like in any country, the consumer durable industry inIndia is largely dominated by colour televisions (CTV), which account for 56% of theconsumer durables industry.

Consumer Durable Market Pie In Financial year

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Growth of Consumer Durable Market

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Company Profile

Founded in 1938, Samsung Corporation is one of Koreas most enduring andrespected corporations, having stood behind the advancement of the nationaleconomy for more than three quarters of a century. At the origin of Samsung Group,Samsung Corporation was the trading arm of the group, epitomizing its vibrancy anddynamism in the area of global trade. Its designation in 1975 as Koreas first-ever General Trading Company marked a new chapter for its overseas operation, whichsince then grew into a scope truly worthy of a global trader. Samsung Corporationsentrepreneurship and achievement on the world scene have been a major inspirationfor Koreas trading community.

In a continuing bid to expand its business area beyond the confines of internationaltrade, in 1996, Samsung Corporation merged with Samsung Construction, and in1997, launched into the retail business. Currently, Samsung Corporation is engaged

in two major business areas: trading, construction. The organization consists of twobusiness groups, with the retail business headquarter under the trading group, andwith the housing development headquarter under the construction group.The Trading Group , currently operating from its 71 overseas offices, exportssemiconductors, machinery, plants, iron & steel, chemical products and textile; andimports energy, chemical products and machinery & equipment. In addition to trading,the Group carries out a variety of other projects including overseas investment, project

organizing services and energy & natural resource development projects.

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The Construction Group, a provider of construction and engineering services, is alsoa plant builder and housing developer. To date, the group has to its credit MalaysiasPetronas building, the worlds highest edifice, 452m high, boasting 92 storiesaboveground; New Busan Port; Incheon Intl Airport; Ulchin Nuclear Power Plant; and

Raemian and Trapalace, the apartment complexes. From energy resources tohousing, each of these projects is a powerful testimony to the groups technologicalexcellence. Last year, the group entered into a contract to build the worlds highestbuilding, Burj Dubai.

Notably, Raemian, one of Samsungs signature apartment complexes is a remarkabletriumph, hailed as new standard-setting luxury housing. The success of Raemian,

topping the National Customer Satisfaction Index (NCSI) in the apartment category for eight consecutive years, has driven up our overall market share in housingdevelopment to the top of the scale as well.

The Retail Business is buoyant and thriving with Samsung Plaza Bundang , a multi-feature shopping center, and Samsung Internet Shopping Mall, familiarly referred toas Samsung Mall as its two main platforms.

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Laying the foundation to become a World Class

Company

Year 2006

Jan Developed the first-ever speech recognition phoneDeveloped innovative 8-chip stacking MCP technologyPosted more than $10 billion in net profitBecame the worlds top three companies with the most patents, launched patent-based management

Feb Released digital slim TV with the narrowest body depthReleased the first notebook PC with embedded terrestrial DMB receiver Samsung Blueblack phone, SGH-D500, was selected as "The Best Handset" at3GSM global conference in cannes, FranceFirst commercialization of terrestrial DMB phone in KoreaDeveloped DDR3 DRAMDeveloped the first wrinkle-free steam washer

Mar Developed the first HSDPA terminal for commercialization and ultra-high speedHSDPA systemCash payment to more than 15,000 SMEsDeveloped 82" TFT-LCDDeveloped 7 megapixel camera phone

Apr Became the official sponsor of Chelsea, the renowned English soccer club

May Developed the worlds first OLED for 40" TVCompleted and announced standard dimension for 8 th and 9th generation LCD

PanelsReleased the first HD class PDP TV with 10000:1 contrast ratio

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Began mass production of 70 nano processed 4 GB NAND flash memory

June Accumulated production volume of large LCDs surpassed 100 million unitsBegan upgrading digital audio business to the worlds top level

Launched a new brand campaign with the theme of "Imagine"Released the first 5 megapixel, 3x optical zoom camera phoneBegan mass production of 90 nano processed 1 GB DDR2 DRAM

July Released the world's first 7 mega pixel camera phone

Aug Released the world's biggest DLP TV

Sep Developed the world's first 50nm 16Gb NAND Flash

Released the world's first Blue-Ray Home AV Center

Oct Blue-black phone (SGH-600) selected as the "Mobile Choice's Phone of the Year"Developed the world's first 70nm DRAMDeveloped the world's fastest speed graphic DRAM(GDDR4)

Nov Developed the largest Flexible LCD Panel

Dec Received "25 iF Design (Germany) awards"Handset shipments reached over 100 million

Comparative Analysis

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A comparative Analysis of Samsung Electronics vis--vis competitors (LG, Haier,Videocon, Sony, Bluestar) in Chandigarh

What is comparative Analysis? In comparative Analysis we take our competitors

products and make comparison through consumer with our own products. WhyComparative Analysis? Comparative Analysis comprises one of the most importanttasks of marketing. It provides information for marketing decisions. Problems areidentified and investigated further by using problem solving techniques with theobjective of arriving at solution. The most important innovation in the new approach isto study simultaneously different organizational forms of business interestrepresentation. The aim of the study is to point out the best among the Variables that

are being studied.

The study will also include the survey which will be targeting about 100 dealers in thearea of Chandigarh. The main emphasis in the survey will be given on the sales of Samsung in comparison to its competitors in CTV & AC segment, the consumer perception about the brand will also be taken into consideration while conducting thissurvey.

The analysis of the buying behavior in respect to AC& CTV will be another importantcomponent of my study. Buying behavior of the consumer is a study of howindividuals make decisions to spend their available resources (time, money & effort)on consumption related items (what they buy, why they buy, where they buy, howoften they buy and use a product or service). The heterogeneity among people acrossthe world makes understanding consumer buying behavior an intricate andchallenging task. The consumers identity, his beliefs, specific needs, attitudes and the

kind of product and brand available in that product category influence his buyingbehavior. The marketing efforts of a firm have a profound impact on the buyingdecisions of customers. Therefore the attempt of my survey will be to obtain an in-depth knowledge of the customers buying behavior.

The effect of external variables on purchasing pattern of customer will also beconsidered here the external variables refer to all those factors which will be affectingthe consumer purchasing decisions, these can be price of the goods and on its

attitude to respond to functional needs. The critical variable under this approach is the

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availability of adequate information about purchase alternatives (price, productfunctionalities) to support the decisional process.

The external conditioning approach, according to which the purchase decision

is a response to external stimuli. The critical variable under this approach iswhich kind of external stimuli can influence purchase decision.

The experience and the social interaction - based approach, according to whichthe present consumer decision aims at the construction of personal identity.

Another component of my study will be the analysis of the brand (Samsung) on four Ps i.e.

Product

Pricing

Promotion

Placement.

These are the four factors which help an organization to understand the market andhelp in taking future decisions relating to the launch & the strengthening of the marketfor the brand.

Benefit to company:

1. Display Share Tracking: Display share tracking will help us to find out theseinformation

It will be used to revealed potential demand of each product.With the help of display tracking we will find out the highest selling productand lowest selling product in the market.It will help in taking decision during the line expansion and line pruning.

2. Consumer perception: This is done with the aim of capturing the true wordsand emotions of consumer, and in turn using this information to improve or developed products or to determine people attitude toward the products.

It will help company to get feedback from consumer.

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It will prevent the undervaluation of competitor and we can find thestrength and Weakness of our product.This will help us to stay ahead in competitionIt will encourage value creating investment.

It will help in maximizing the consistency of value creationMeasuring performanceIt will help us for market share analysis.

So I can say this study is more suitable for Samsung to compete and survive inlobal market.

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Consumer perception

As it is well known proverb of marketing that Consumer is the king it is mandatory for any researcher to know the opinion of the consumer regarding the products on whichhe is going to conduct the study. This research work will include a consumer questionnaire on the consumer goods which has been taken as the part of the studythe questionnaire mainly aims at .

Awareness of the consumer about the brand His decisions whether dependent or independent Purchase pattern Brand loyalty level Current consumer durables in home What is the impression of consumer about Samsung

This questionnaire will mainly help out in reaching at the actual consumer perceptionof the consumers about the brand. This is done with the aim of capturing the truewords and emotions of consumer, and in turn using this information to improve or

developed products or to determine people attitude toward the products.

2.1 It will help company to get feedback from consumer.

2.2 It will prevent the undervaluation of competitor and we can find thestrength and Weakness of our products

2.3 This will help us to stay ahead in competition.

2.4 It will encourage value creating investment.

2.5 It will help in maximizing the consistency of value creation.

2.6. Measuring performance

2.7 It will help us for market share analysis.

So I can interpret, this study is more suitable for Samsung to compete and survivein global market.

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OBJECTIVE

The major objective of the study is to analyze the position of Samsung Vis--Vis itscompetitors and to identify weak areas and provide recommendations for the sales.

The consumer durable market has grown considerably in last few years in India. Withthe growth, the level of competition has grown as well. Literally every day companiescome up with new attractive offers to grab the better share of the market. Thechallenge is not only to get the new customer but also to continue with the existingcustomers.

The objective of doing the project is to:

-Identify the Dealer and Consumer perception about the Samsung products withrespect to its competitors in CTV & AC segment.

- To suggest some differentiating strategies to stay ahead in competition in CTV& ACsegment.

- To identify the factor affecting the four Ps i.e.

Product Pricing Promotion Placement.

Example:

What are the parameters on which consumer makes his purchase decision?

Parameters Rank

O Price .

O Packaging .

O Product Features ..

O Brand Name .

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O Product Quality .

O Product Design .

SCOPE OF STUDY:

1. Impact of consumer durables (being taken in to the study) on theconsumers, retailers, dealers.

2. Comparison of Samsung with other competitors.

METHODS OF COLLECTING DATA AND THEIR SOURCES:

Secondary Data:

The secondary data for the project is collected from websites. The other data wascollected from the offer document and informal discussion with company members.References are also taken from search engines.

Primary Data

The primary data is collected by interviewing the concerned persons.Dealers Questionnaire, Consumer Questionnaire is prepared to collect the dataand this data will be analyzed for studying the position of Samsung in comparison tothat of its competitors i.e. Sony .L.G. Haier, Videocon, Bluestar,

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Research Methodology

Research is the systematic design, collection, analysis and reporting of data andfindings relevant to a specific situation or problem. The objective of this section is todescribe the research procedure and methods that have been adopted for theachievement of the project objectives.

a. Research Design : Exploratory research study

A research design is the arrangement of conditions for collection and analysis of datain a manner that aims to combine relevance to the research purpose with economy inprocedure. My research is comparative in nature.

b. Method of Data collection: In order to study the consumer perception regardingthe uses of Samsung Products with respect to other companies in Chandigarh bothprimary and secondary data will be collected.

The study proposed to collect Primary data through questionnaire usingsurvey method. So as to give a precise, accurate, realistic and relevant data.The secondary data as it has always been important for the completion of any report provides a reliable, suitable, equate and specific knowledge. Thedata will collect from various magazines, fact sheets newspapers andwebsites published by the company.

c. Sampling Technique: The study proposed to use convenience sampling.

d. Sample Area: In order to make a comparative analysis study the consumer perception as well as dealer & retailers perception of Samsung products with respectto its competitor, the data for the study has been collected through a survey of Dealers/Retailers of Chandigarh and surroundings.

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Sources of DataThe nature of the data that has been used in the project under study is both primaryand secondary in nature.

Primary data

Questionnaire, personal meetings, interview method with the concerned persons willbe used to collect the primary data.

Secondary data

Offer documents, fact sheets, news papers, magazines published from time to timeand Internet, Company sources.

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15 Inch

21Inch

29 Inch

LCD

PLASMA

Average Proportion of Display at each Store

14%

54%

5%7%

20%

Fig 1.1This question also bought up an idea that lower end markets have more proportionof 15, 21 inch display as compared to that of high end market.

3. Which are the two highest selling models of each company in CTV & their prices?

The models that were sold more in comparison to others for the same brand in theCTV segment are as follows.

The highest selling Models

Samsung 21inch Plano- z30 , Z43LG 21inch Flatron -21FD 2RG- TX, 21FC8RG-AXHaier 21inch Platron- 21F2A, 21F9DVideocon 21inch Challenger-Sony 21inch KVHM213 M80, KVFA 21M 83

4. To what extents, following brands of CTV are preferred by customers?This question was mainly asked to have an overview of how the customer responds to a particular brand and the results are shown in the fig 1.2

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0%

5%

10%

15%

20%

25%

30%

35%

40%

Samsung Sony LG Videocon Haier

Customer brand prefrence in 21 inch

Fig 1.2

Average demand for the brand has been also estimated with the findings of thesame question.

Samsung

Sony

LG

Videocon

Haier

26%

32%22%

12%8%

Customer Prefrence for Brand

Fig 1.3

5. What is the price band for which the customer looks for while makingpurchase decision? With this question the major objective of my surveywas accomplished it reveals what the consumer need in the particular segment as shown in the table below.

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Segment Brand Price range15 inch Videocon 500021inch Samsung/LG 900029inch Sony/Samsung 15000LCD Samsung 40000PLASMA Samsung/LG 55000

7. What is the expected percentage of customers who are willing to pay? Withthe survey and then the analysis of the data concludes that in the high end marketslike of Sector 22, 24, 34, 17, the ratio of premium an low end customers was 60: 40 asshown in Fig1.4

Premium Customer 60%

low-end Customer 40%

Proportion of customerss in high end markets

Fig 1.4While in the lower end markets like Naya gaon, Daddu majara, Baltana, Badial &Manimajara the proportion of Premium and low end customer is of the ratio 20:80.

As shown in the fig 1.5.

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Proportion of customers in Low-end markets

Premium Customers 20%

Low-end Customers 80%

Fig 1.5

Q9 what is the annual estimated sales of CTV? After taking out the average of the low-end and premium markets the results obtained are that the average annualsales of the premium end market that comprises of 43 dealers and retailers wasas under

Brand Name Annual average estimated salesSamsung 6192 pieces p.aSony 5676pieces p.aL.G 6708pieces p.aVideocon 2580pieces p.aHaier 1032pices p.a

Q10. At which visit, customer generally finalize his/her decision for buying aCTV?

This mainly gives an overview of how customers make their purchase decisionwhen they enter in to show room. The results of this analysis are shown in thefig 1.6

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

1 2 3 Any other

Customer Decision Index

Visit to Show room

Fig 1.6

Q12. When customers mostly visit showroom for buying CTV?Question 11& 12 mainly help in predicting that which offer attracts the customer

the most and the results obtained after the analysis work are shown in the fig1.8

0%

10%

20%

30%

40%

50%

60%

70%

Discount offer exchange offer new features Any other

Customer Visit Index

Fig 1.8

Q13. What is the most acceptable size in CTV now days?The question mainly emphasized on bringing out the most acceptable size of

CTV in each segment and thus the results obtained are shown as under.

Segment SizeCTV 21LCD 31

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ANALYSIS OF THE DEALERS QUESTIONNAIRE

FOR (AC)For this purpose I conducted a survey with the sample size of 100. This sampleincludes the dealers and the retailers in the area of Chandigarh andsurroundings. The questionnaire having 16 questions was prepared to obtainthe desired information and the method of personnel interview was alsoadopted for those dealers who were not interested in filling the questionnaireand the data got is then analyzed and following are the results for the same.

The questionnaire with the question1.Which of the following brands of AC, youare dealing in? This question brought the fact that how many dealers and retailersare dealing single and multiple brands of air conditioners this shown in the fig:1.10

single Brand

multiple brand

Multi le brand 32%

Single brand 68%

Dealer Ratio

Fig 1.10Q2 How many models do you display for each brand?

In this question mainly the 1.0 ton, 1.5 ton and 2 ton capacity of both window split air conditioner category were considered and the models displayed at each counter onan average are as under:

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Q3 which are the two highest selling models of each company in AC & their

prices?

Each brand has its unique image for its product thus the highest selling models for each brand also vary according to the quality features as well as demand for theproducts the highest selling model for the each brand are as follows

Brand ModelSamsung 18QBLG W18G2Videocon SB1608Bluestar WAM181YB

Haier HW12DXQ4.To what extents, following brands of AC are preferred by customers?

The major brands preferred by the customers according to the options given are asfollows

0%

5%

10%

15%

20%

25%

30%

35%

Samsung LG Videocon Bluestar Haier

Brand Prefrence b customers

Fig 2.1

Capacity Samsung

w/s

LGw/s

Bluestar

w/s

Videocon

w/s

Haier w/s

1 Ton 2/1 2/1 2/1 1/1 1/01.5 Ton 3/2 3/1 2/2 1/1 1/12.0 Ton 1/1 1/1 1/0 1/0 .5/0

30

Brand Name


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Q5. What is the price band for which the customer looks for while making

purchase decision?

This question mainly brought out the conclusion of which price brand generally the

customer looks for when he makes his purchase decision this is explained as under.

Q7 what is the expected percentage of customers who are willing to pay.

Premium, or has the Low-end customers the analysis of the data reveals that theproportion of premium customers is around 78% as compared to that of low-endcustomers that comprise of only 22% .

Premium Customers 78%

Low-end customers 22%

Proportion of Premium & Low-end Customers in Market

Fig 2.2Q8 what is the annual estimated sales of AC? After taking out the average of the low-end and premium markets the results obtained are that the average annualsales of the premium end market that comprises of 50 dealers and retailers wasas under this analysis work constitute the limited sample size and thus may nopredict the correct figures. the word season means the month of March, April,May, June.

Segment Price Band

1.0 Ton 11000

1.5 Ton 16000

2.0 Ton 20000

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This mainly gives an overview of how customers make their purchase decision whenthey enter in to show room. The results of this analysis are shown in the fig 2.4

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1 2 Any other

Series1

Visit to Showroom

Consumer Decision Index

Fig 2.4Q12. When customers mostly visit showroom for buying AC?

Question 11& 12 mainly help in predicting that which Promotional Techniquesattracts customer the most and the results obtained after the analysis work areshown in the fig 2.5

0%

10%

20%

30%

40%

50%

60%

Discount offer exchange offer Guift options Any other

Customer Visit Index

Fig 2.5

Q14. Below are different modes of promotion. Please rank following modes

from 1 to 7, on the basis of their influence on customer.

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The major modes of promotion that influence the customer were audiovisual 64%,Print media 28%, Tradeshows 8%.

0%

10%

20%

30%

40%

50%

60%

70%

Audiovisual Print Media Tradeshows

Series1

Promotional Technique Index

Fig 2.6Q16. Which Brand you Recommend and why?

As this was the last question the importance of this question was much more aspeople tried to ignore it but the information obtained from the analysis of this questionare shown in the fig 2.7

0%

5%

10%

15%

20%

25%

30%

35%

40%

Samsung LG Bluestar Videocon Haier

Dealers Recommendation for the Brand

Fig 2.7

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FINDINGS FROM THE CONSUMER

QUESTIONNAIRE

For this purpose I conducted a survey with the sample size of 100. This sampleincludes Businessman, Government employees, Private Employees andHousewives. This includes a questionnaire having 10 questions and the datagot is then analyzed and following are the results for the same.

1) The first question iswhich of the following Brands deal in consumer durables? And as shown in the fig 1.1, the response was 100%positive

consumer durables

1100%

Fig 1.1

2) Second question is How do you make your purchase decisions? Fig 1.2 interprets the result that 84% of the consumer makes their purchasedecisions with the help of one or the other aided media. But at the same timearound 16% go for unaided purchase decisions.

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aided

unaided84%

16%

Purchase decision

Fig 1.2

3) Which purchase pattern is followed at your place?

This question tells about how many people really take the help of there near and dear ones while making the purchase decision and also helps themarketers to target the appropriate segment. The result shows that 78% of theconsumers take the help of their family and around 22% of the consumers gofor the individual decision while making the purchase decision. As shown in fig1.3

Individual

family78%

Purchase pattern of consumers

22%

Fig 1.3

4) On which of the following parameters you make your purchase decision?(Rank them according to your preference)

a) Price b) product c) Quality

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d) Brand name e) Packaging f) Features

It tells about how many people out of the 100 consumers give more preferenceto the above mentioned options. The result shows that 46% of the consumersgive their 1st preference to price, 6% to product,22% to quality,24% to brandname, 0% to packaging,2% to Features the graphical representation in fig 1.4,1.5, 1.6, 1.7, 1.8, 1.9. Explains it more clearly. Parameters for purchase decision

Rating Price Product Quality Brand name Packaging

feature

s1 46 6 22 24 0 22 22 10 14 44 1 93 18 16 38 10 2 164 10 8 20 14 1 475 0 58 4 6 6 266 4 2 2 2 90 0

Price

0

10

20

30

40

50

1 2 3 4 5 6 7

Price

Rating

Fig 1.4

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Product

0

20

40

60

80

1 2 3 4 5 6 7

Product

Rating

Fig 1.5

Packaging

0

20

40

60

80

100

1 2 3 4 5 6

Packaging

Rating

Fig 1.6

Fig 1.7

38

Quality

05

101520253035

40

1 2 3 4 5 6

Quality

Rating


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Brandname

0

10

20

30

40

50

1 2 3 4 5 6 7

Brandname

Rating

Fig 1.8

features

0

10

20

30

40

50

1 2 3 4 5 6

features

Rating

Fig 1.9

5) Which Brands of consumer durables you have been using before?

6) Which consumer durables you posses at your home presently?

7) Do you feel like shifting to some other brand or you are fully satisfied with

the present one?

These three questions mainly bring out the picture how the consumers followthe trends in the industry these questions mainly emphasize on theconsumer loyalty level. Out of around 100 consumers 42% continued with the same

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brand, 36% shifted to some other brand and around 22% were planning to shiftto some other brand. fig shows the same in more appropriate manner. Theoverall analysis shows that only 42 % of the consumers are brand loyal while58% of the consumers have the tendency of shifting to some other brand.

Consumer loyalty level

05

10152025

30354045

continuing withsame brand

Shifted to someother brand

Planning to shift

Trend in consumer durable industry

Fig 1.10

8) . Please rate the following brands of CTV on the scale of 1 to 5?

This question is for those consumers who are well aware of the existing brandsand have sufficient knowledge regarding each brand the consumers wereasked to rate the given brands on the scale of 1to 5 on the basis of their opinion for Quality, features, Design, Screen resolution and efficiency. Theresults obtained for the quality rating for CTV for Sony, Samsung, LG, Haier,and Videocon. Are shown in the fig 2.0 where 32% of the consumers haverated 5 Sony on the contrary Samsung emerged as the leader in this segmentwith 48% of the consumers rating it on the scale of 5..

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0

10

20

30

40

50

60

Sony Samsung Haier Videocon LG

Quality Rating

Consumer Ratin Chart for CTV

Fig 2.0

Q9. Please rate the following brand of AC on the scale of 1 to 5? Where 1 mean poor service and 5 mean excellent service

this question also tested the knowledge of consumers who are well aware of the existing brands of AC and have sufficient knowledge regarding each brandthe consumers were asked to rate the given brands on the scale of 1to 5 on the

basis of their opinion for Quality, features, Design, Cooling effect and efficiency.The results obtained for the quality rating for AC Segment for Bluestar,Samsung, LG, Haier, and Videocon. Are shown in the fig 2.1 where 42% of theconsumers have rated 5 LG on the contrary Samsung emerged as the leader inthis segment with 46% of the consumers rating it maximum on the scale of 5.Followed by the other brands.

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ANALYSIS OF SALES DATA

The sales date collected from the sources has been used to predict the futureSamsung India private limited by using the Least Squares Method

Explanation of the Method

This method is widely used in Practice. It is a mathematical method and with its helptrend line is fitted to the Data in such a manner that the following two conditions aresatisfied

(1) (Y-Yc)=0

I.e. the sum of actual deviations of the actual values of Y and the computed valuesY is Zero

(2) (Y-Yc)2 is least

I.e. the sum of the squares of the deviations of the actual and computed values isleast from this line and hence the name method of least squares. The line obtainedby this method is known as the line of best fit

The method of least squares may be used either to fit a straight line trend or a

parabolic trend.

The straight line trend is represented by the equation

Yc= a+bX

Where:

Y0 = is used to designate the trend Values to distinguish them from the actual

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Values of Y.

a is the y intercept or the computed trend figure of the Y variable whenX = 0

b represents the slope of the trend line or amount of change in Y variablethat is associated with a change of one unit inX variable. TheX variable in thetime series analysis represents time.

Least Squares trend Method

Fitting of straight line trend by the method of least squares

Year Sales Deviation From2001 XY X2(Y) (X) 0.5

1997 13094724 -4.5 -58926258 20.251998 16639749 -3.5 -58239122 12.251999 22810293 -2.5 -57025733 6.252000 27230939 -1.5 -40846409 2.252001 24419589 -0.5 -12209795 0.252002 30518256 0.5 15259128 0.25

2003 42321852 1.5 63482778 2.252004 50911164 2.5 127277910 6.252005 61848945 3.5 216471308 12.252006 63479833 4.5 285659249 20.25

y= 353275344 X = 0 XY= 480903057 X2 = 82.5

The equation of the straight line trend is

a =Y/ N

= 35 3275344/10

= 35327534.4

b= XY/ X2

= 480903057/82.5

=5829127.96

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CORRELATION ANALYSIS

Analysis of the Brands Popularity on the basis of their

Ranks

Correlation analysis is a statistical technique used to measure the magnitude of linear relationship between two variables Correlation analysis cannot be used in isolation todescribe the relationship between the variables. It can be used along with regressionanalysis to determine the nature of the relationship between two variables.

The two frequently used correlation coefficients are:

The Pearson product moment correlation coefficient

Charles Spearmans rank correlation

Analysis by the Charles Spearmans rank correlation Method

BrandName

Sales inPieces Quality Design Features

After salesServices Price

Samsung 2 nd 6192 2 3 4 5 1

LG 3rd 5676 1 4 3 5 2

Sony 1st 6708 2 3 5 4 1

Videocon 4th 2580 1 4 4 5 2

Haier 5th 1032 1 3 3 4 2

Explanation:

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It is the technique of determining the degree of correlation between twovariables incase of ordinal data where ranks are given to the different values of the Variables. The main objective of this coefficient is to determine the extent towhich the two set of ranking are similar or dissimilar. This coefficient is

determined as under.

The Charles Spearmans rank correlation Formula:

r =1-[ 6d 2] Eque 4.2

Solution:

Quality measure

Substituting the values in Equ. 4.2

= 6x30

= - 0.5Answer

This indicates that there is a Negative correlation between Quality and Sales rankingi.e. when the quality of the product improves the Sales ranking volume for the brandsFall down.

Brand Name Ranks Quality d d2Samsung 2 2 0 0

LG 3 1 2 4

Sony 1 2 -1 1

Videocon 4 1 3 9

Haier 5 1 4 16

n=5 d2 30

47

1-

5(25-4)

s in(n2-1)

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Design measures

Substituting the values in the Equ 4.2

= 6x10

= -0.50 Answer

This indicates that there is a Positive correlation between Design and Sales ranking

i.e. when the design of the product improves the Sales ranking for the brands alsoincreases.

Price measures

Brand Name Ranks Design d d2Samsung 2 3 -1 1

LG 3 4 -1 1

Sony 1 3 -2 4

Videocon 4 4 0 0

Haier 5 3 2 4

n=5 d2 10

Brand Name Ranks Price d d2Samsung 2 1 1 1

LG 3 2 1 1

Sony 1 1 0 0

Videocon 4 2 2 4

Haier 5 2 3 9

n=5 d2 =15

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5x24

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Substituting the values in the Eque 4.2

= 6x15

= 0.25 Answer

This indicates that there is a Positive correlation between Price and Sales ranking i.e.when the Price raises the Sales ranking for the brands also rises for the product

Features measure

Substituting the values in the Equ 4.2

= 6x24

= -0.20 Answer

This indicates that there is a negative correlation between Features and Sales rankingi.e. when the Features of the product improve the Sales ranking for the brands falldown.

After Sales Service measure

Brand Name Ranks Features d d2Samsung 2 4 -2 4

LG 3 3 0 0

Sony 1 5 -4 16

Videocon 4 4 0 0

Haier 5 3 2 4

n=5 d2 =24

49

1- 5x24

1- 5x24


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Primary data collected through questionnaire, Personnel Interviews regarding theSamsung and its competitors i.e. Sony, L.G, Videocon, Haier, bluestar And theAnalysis of the data using Research Methodology Reflects the following.

1. Consumer Durables play a major role in the life of each individual.

2. The dealers are the inseparable pillar between the company and the ultimateconsumer.

3. Retailers can sell any thing to the consumers if rewarded with appropriateincentives.

4. Dealers are happy keeping the single brand.

5. Retailer like keeping variety brand so as no let the consumer leave the counter until he affect sales.

6. The retailers of remote areas of Chandigarh i.e.Naya gaon, Daddomajara,baltana, Badial & Manimajara have different perception about Differentsegments ofCTV&A.C.

7. Retailers like to stock the most sellable models of the company rather than thedisplay models being promoted by the company.

8. The dealers in Sector 22, 24, 34, 17. Like targeting high profile people.

9. The markets of Naya gaon, Daddomajara, baltana, Badial & Manimajara arethe low end markets.

10.The percentage of premium end customers in Sector 22, 24, 34, 17, 18 isaround 90% as compared to of 30% in Naya gaon, Daddomajara, baltana,

Badial & Manimajara.

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11.Low end markets of Chandigarh have very less market for 1.5 & 2 ton Air conditioners.

12.The retailers in Manimajara are in a better position to tackle consumers as

compare to that of other remote areas.

13.Dealer disclosed the fact that approx 85 percent customer come with Prior knowledge of product price, features, discount offer, exchange offer only 15percent are unknown customer.

14.In CTV segment 38 percent dealer recommend the Samsung brand, 32 percentdealer recommend LG, 18 percent recommend Videocon and 12 percentrecommend the Haier.

15. AC segment: In AC segment LG got the highest recommendation 32 percent,Samsung got 31 percent, Haier got 17 percent and Videocon got the 20

percent recommendation.

16. The analysis of the sales data reflects that the sale of Samsung is increasingyear after year in comparison to its competitors.

17. The ranking of the brands have the positive relation with design, price and

others have the negative correlation.

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LIMITATIONS OF THE STUDY

The Data collected from the Dealer might not be very accurate to obtain thedesired information.The sample size taken is small to make a universal statement.

The final conclusion can be also affected by some of the extraneous variables.

Though the study represents the position of Samsung in Chandigarh. Due tosmall sample size, the finding may not be a true representative and it cannot begeneralized.Biasness of the respondent.

Lack of sufficient information

Lack of the instruments to find out the reasonable outcomeDifficulty in gathering the reasonable data

Its all about the future predictions and future is unsuitable

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REFERENCES

Marketing Management: by Philip Kotler C.R Kothari Research Methodology Methods And Techniques. Hair/ Bush/ Ortinau (2006). Marketing Research Naresh K. Malhotra (2006), Marketing Research- An Applied Oriented ICFAI Journal of Marketing Management, The ICFAI University Press, Vol.V,

No.1, February 2007 ICFAI Journal of Marketing Research, the ICFAI University Press, No. 2,

February 2007. www.Samsung.com www.sony.com

www.haier.com www.lgindia.com www.videocon.com www.bluestar.com http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.html www.winebusiness,com http://www.researchandmarkets.com/reports/53984/ www.marketingpower.com

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http://www.sony.com/http://www.haier.com/http://www.lgindia.com/http://www.videocon.com/http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.htmlhttp://edweb.sdsu.edu/triton/SDBiarritz/Rubric.htmlhttp://www.researchandmarkets.com/reports/53984/http://www.sony.com/http://www.haier.com/http://www.lgindia.com/http://www.videocon.com/http://edweb.sdsu.edu/triton/SDBiarritz/Rubric.htmlhttp://www.researchandmarkets.com/reports/53984/


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Questionnaire on CTV

PURPOSE OF STUDY

I am an MBA student of ICFAI Business School presently pursuing my ManagementResearch Project.

Information in the questionnaire will be:Used for academic purposes only

Kept strictly confidential

Q1. Which of the following brands of CTV, you are dealing in? (Please Tick )

a) LG b) Samsung

c) Videocon d) Sony

f) Haier g) Any Other (Please Specify) ________

Q2 How many models do you display for each brand?

15Samsung LG Haier Sony Videocon

2129LCDPLASMA

Q3 which are the two highest selling models of each company in CTV & their prices?

Samsung -LG -Haier -Videocon-Any other-

Q4. To what extents, following brands of CTV are preferred by customers?

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(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low NilLGSamsungHiear VideoconSony

Q5 what is the price band for which the customer looks for while making

purchase decision?

Segment Brand Price

15

21 29

LCD ... Plasma

Q6 is customer ready to pay premium for additional features?

..

Q7 what is the expected percentage of customers who are willing to payPremium . Low-end ..

Q8. What are the parameters on which consumer makes his purchasedecision?

Parameters Rank

o Price ..o Packaging ..o Product Features .o Brand Name .o Product Quality .o Product Design .

Q9 what is the annual estimated sales of CTV?Brand Amount

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a) 14inch b) 21inch 29 inch

LCD 26 PLASMA 42

32 50

40

46

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d) Any Other (Please Specify) ___________________________



(Rank1 = high, Rank 7 = low)

a) Television ________ e) Radio ________ b) Newspapers ________ f) Magazines ________ c) Pamphlets ________ g) Internet ________ d) Trade Shows ________

Q15. What different complaints are faced by you from your

customer?

(Mark to appropriate one)Brand

ComplaintsLG Samsung Haier Videocon Sony

Bad Picture

qualityProblem withPicture tubeHigh ElectricityConsumptionFading of Colour

Q16. Which Brand you Recommend and why?

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PERSONAL PROFILE

Dealers Name: ____________________________ Address: ____________________________ Ph. No.:- ____________________________

Date: Sign/

Stamp

Questionnaire on A.C

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PURPOSE OF STUDY

I am an MBA student of ICFAI Business School presently pursuing my ManagementResearch Project.

Information in the questionnaire will be:

Used for academic purposes only

Kept strictly confidential

Q1.Which of the following brands of AC, you are dealing in? (Please Tick )

b) LG d) Samsung

e) Videocon c) Blue star

f) Haier f) Any Other (Please Specify) ________ Q2 How many models do you display for each brand? Capacity Samsung

W/SLG

W/SHaier W/S

Bluestar W/S

VideoconW/S

1.0Ton1.5Ton2.0Ton

Q3 which are the two highest selling models of each company in AC & their

prices?

Samsung -

LG -Haier -Videocon-Any other-

Q4.To what extents, following brands of AC are preferred by customers?

(Mark the appropriate preference level by ticking against respective brand)

Brands Very High High Low Very Low Nil

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LGSamsungHiear VideoconBlueStar

Q5. What is the price band for which the customer looks for while makingpurchase decision?

Segment Brand Price/W

Price/S

1.0 Ton

1.5 Ton ..

2.0 Ton .. Q6. is customer ready to pay premium for additional features?

..Q7 what is the expected percentage of customers who are willing to pay

Premium . Low-end ..

Q8 what is the annual estimated sales of AC?Brand Amount

o Samsung ..o L.G ..o Videocon ..o BlueStar ..o Haier ..

Q9. Please rank each of the following features from 1 to 5 on the basis of their

importance to customers.

Rank 1= the most importance feature

Rank 5=the least important feature

Feature Rank Order

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b) 1Tone b) 1.5Tone c) 2 Toned) Any Other (Please Specify) ___________________________



(Rank1 = high, Rank 7 = low)

e) Television ________ e) Radio ________ f) Newspapers ________ f) Magazines ________ g) Pamphlets ________ g) Internet ________ h) Trade Shows ________

Q15. What different complaints are faced by you from your customer?

(Mark to appropriate one)

BrandComplaints

LG Samsung Haier Videocon Blue Star

Bad cooling quality

Problem with Noise

High ElectricityConsumptionCost of Maintenance

Q16. Which Brand you Recommend and why?

PERSONAL PROFILE

Dealers Name: ____________________________

Address: ____________________________

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_____________________________ Ph. No.:- ____________________________

Date:

Sign/ Stamp

QUESTIONNAIRE FOR CONSUMER

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PURPOSE OF STUDY

I am an MBA student of ICFAI Business School, presently pursuing my ManagementResearch Project.

Information in the questionnaire will be:Used for academic purposes onlyKept strictly confidential

Q1. Which of the following deal in consumer Durables?a) Samsung b) Sony c) L.G d) Haier

e) Videocon f) Bluestar g) Bajaj h) Hero Honda

Q2 . How do you make your Purchase decisions are they.

a) Aided ( with the help) b) unaided ( without help) Q3. Which purchase pattern is followed at your place?

a) Individual b) Family

Q4. On which of the following parameters you make your purchase decision?(Rank them according to your preference)

a) Price b) product c) Quality d) Brand name e) Packaging f) Features

Q5 .Which Brands of consumer durables you have been using before?

Q6 . Which consumer durables you posses at your home presently?

Q7 . Do you feel like shifting to some other brand or you are fully satisfied with the

present one?

Q8 . Please rate the following brands of CTV on the scale of 1 to 5?Where 1 means poor service and 5 means excellent service

Sony Samsung Haier Videocon LG

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Quality

Features

Design

Screen resolutionEfficiency

Q9. Please rate the following brand of AC on the scale of 1 to 5? Where 1 mean poor service and 5 mean excellent service

Bluestar Samsung

Haier Videocon

LG

Quality

Features

Design

Cooling effectEfficiency

DurabilityAfter Sales Service

Q10 . How far you are aware about Samsung Products& what is its impression inYour mind?

......

PROFILE OF THE SUBJECT :

Name of Consumer :...Address:Phone

E-mail id (If any).

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Project Report Onsamsung Electronics

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