A Project Report On “A Market Survey of Consumer Durables Product of Samsung Electronics Ltd” Submitted in Partial Fulfillment of the Award of Degree of Bachelor of Business Administration (BBA) 2007- 2010 Project Guide Submitted By Mr.Jagat Jyoti Barua Vaibhav Bansal Lecturer,MAIMS Enrollment No. : 0411471707 BBA (Gen) VI Semester Sec A 1
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A
Project Report On
“A Market Survey of Consumer Durables Product of Samsung
Electronics Ltd”
Submitted in Partial Fulfillment of the Award of Degree ofBachelor of Business Administration (BBA) 2007-2010
Project Guide Submitted ByMr.Jagat Jyoti Barua Vaibhav BansalLecturer,MAIMS Enrollment No. : 0411471707 BBA (Gen) VI Semester Sec A
Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No.!, Sector 22, Rohini Delhi 110086
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STUDENT DECLARATION
This is to certify that I have completed the Project titled “A Study Of
Consumer Durable Market For Samsung Electronics Ltd” under the
guidance of “Mr. Jagat Jyoti barua” in partial fulfillment for the
requirement of the award of the degree of Bachelor of Business
Administration at Maharaja Agrasen Institute of Management Studies,
Delhi. This is an original piece of work and I have not submitted it earlier
elsewhere.
Vaibhav Bansal
0411471707
BBA (Gen) VI semester Sec A
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CERTIFICATE
This is to certify Project titled “A Market Survey of Consumer
Durables Product of Samsung Electronics Ltd” is an academic
work done by “Vaibhav Bansal” submitted in the partial fulfillment for the
award of the degree of the Bachelor of Business Administration from
Maharaja Agrasen Institute of Management Studies, Delhi, under my
guidance and direction. To the best of my knowledge and belief the data and
information presented by him in the project has not been submitted earlier.
Mr. Jagat Jyoti Barua
Lecturer, MAIMS
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ACKNOLEDGEMENT
I take great pleasure in recording my sincere gratitude to the person who helped me in
completing this project by giving their valuable time and guidance. I would like to
express my gratitude towards them.
Mr. Jagat Jyoti Barua, project in charge, for providing me his whole hearted co-operation,
consistent help, valuable guidance at every stage of my project. He has been a source of
consistent and professional evolution of my project. Without his personal guidance I
would have never come to successful and efficient completion of this project.
Also I would like to thanks Dr. N.K.Kakkar for his keen interest and guidance throughout
the course of my training.
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TABLE OF CONTENTS
Page No.
Chapter 1 Introduction 1.1 About the Industry 7 1.2 About the Organization 10
Chapter 2 Research Methodology 2.1 Objectives of study 16 2.2 Research Methodology 17 2.3 Scope of study 19 2.4 Limitations of study 20 2.5 Sources of data collection 21
Chapter 3 Findings and Analysis 3.1 Findings from Primary Data 23 3.2 Findings from Secondary Data 38
Chapter 4 Conclusion 41
Chapter 5 Recommendations 43
Annexure 45
Bibliography 48
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CHAPTER- 1
INTRODUCTION
1.1 Introduction about the Industry
1.2 Introduction about the Organization
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INDUSTRY PROFILE
The Consumer Durables industry consists of durable goods and appliances for domestic
use such as televisions, refrigerators, air conditioners and washing machines. Instruments
such as cell phones and kitchen appliances like microwave ovens were also included in
this category. The sector has been witnessing significant growth in recent years, helped
by several drivers such as the emerging retail boom, real estate and housing demand,
greater disposable income and an overall increase in the level of affluence of a significant
section of the population. The industry is represented by major international and local
players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool,
etc.
The consumer durables industry can be broadly classified into two segments: Consumer
Electronics and Consumer Appliances. Consumer Appliances can be further categorized
into Brown Goods and White Goods. The key product lines under each segment were as
follows.
Industry Size, Growth, Trends
The consumer durables market in India was estimated to be around US$ 5 billion in
2007-08. More than 7 million units of consumer durable appliances have been sold in the
year 2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per
cent share of volumes. CTV, refrigerators and Air-conditioners together constitute more
than 60 per cent of the sales in terms of the number of units sold.
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In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct
cool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have
registered double-digit growth in the direct cool refrigerator market.
In the case of washing machines, the semi-automatic category with a higher base and
fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to
229,000 units, respectively. In the air-conditioners segment, the sales of window ACs
have grown by 32 per cent and that of split ACs by 97 per cent.
Since the penetration in the urban areas for these products is already quite high, the
markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas.
The growth across product categories in different segments is assessed in the following
sections.
Consumer Electronics
The CTV production was 15.10 million units in 2007-08 and is expected to grow by at
least 25 per cent. At the disaggregated level, conventional CTV volumes have been
falling while flat TVs have grown strongly. Market sources indicate that most CTV
majors have phased out conventional TVs and have been instead focusing more on flat
TVs. The flat segment of CTVs now account for over60 per cent of the total domestic TV
production and is likely to be around 65 per cent in 2007-08.High-end products such as
liquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 per
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Cent respectively in 2009–10 following a sharp decline in prices of these products and
this trend is expected to continue. The audio/video player market has seen significant
growth rates in the domestic market as prices have dropped. This trend is expected to
continue through 2009- 2010, as competition is likely to intensify to scale and capture the
mass market.
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COMPANY PROFILE
SAMSUNG – Introduction
Samsung grew into a global corporation by facing challenges directly. In the years ahead,
our dedicated people will continue to embrace many challenges and come up with
creative ideas to develop products and services that lead in their markets. Their ingenuity
will continue to chart Samsung’s course as a profitable, responsible global corporation.
SAMSUNG HISTORY
2008
Named Yoon-Woo Lee as a Vice Chairman & CEO of Samsung Electronics
Launched OMNIA phone Completed establishing TV manufactory in Russia Kaluga Became the official sponsor of 2010 Guangzhou Asian
Game Developed the world's first 2Gb 50 NANO Samsung takes No. 1 spot in U.S. cellphone market Opened Global Brand PR Centre ‘Samsung D'light'
No.1 worldwide market share position for TVs achieved for the 9th quarter in a row
2007
No.1 worldwide market share position for TVs achieved for the seventh quarter in a row
Developed the world's first 30nm-class 64Gb NAND Flash™ memory
BlackJack bestowed the Best Smart Phone award at CTIA in the U.S.
Attained No.1 worldwide market share position for LCD for the sixth year in a row
2006 Developed the world's first real double-sided LCD Developed the worlds' first 50nm 1G DRAM
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Unveiled 10M pixel camera phone Launched "Stealth Vacuum," a vacuum cleaner with the
world's lowest level of noises Launched the worlds' first Blu-Ray Disc Player
Developed 1.72"Super-Reflective LCD ScreenSeptember, 2005 The India Retail Forum has awarded Samsung as the Best Retailer of
the year 2005 in the consumer Durables category. James Damian,
SVP, Best Buy and his team handed over the award to Mr. Ravinder
Zutshi, Dy MD and Samsung India at the India Retail award function
held in Mumbai on 16th September.
February 2005 Mr. S. H. Oh appointed as the President and Chief Executive Officer
of Samsung South West Asia.
November 2004 Samsung received the Golden Peacock Special commendation
Certificate for Corporate Social Responsibility (Private Sector) for
the year 2004 from Mr. Shivraj Patil, Union Home Minister.
February 2004 India made regional headquarters for Samsung Southwest Asia.
February 2004 Mr. K. S. Kim appointed as the First President and Chief Executive
Officer of Samsung South West Asia.
November 2003 Inaugurated Samsung's new, High-Tech, advanced Refrigerator
facility.
August 2003 Commencement of production at refrigerator facility in Noida.
June 2003 Merger of SIEL with SEIIT.Software technology park set up at Noida
December 2002 Construction commences for 5,000,000 refrigerator plant in Noida
October 2002 Samsung unveils new technology for Consumer Home
Entertainment (DNIe™)
June 1996 Foundation Stone laid for CTV Factory at Noida, Uttar Pradesh.
May 1996 Launch in South
Home Appliances Launch
December 1995 Samsung India Electronics (SIEL) products launched in India.
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August 1995 Certificate for commencement of business received by Samsung
GROWING TO BE THE BEST
Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best
Company’ in terms of both the internal workplace environment as well as the external
context in which the Company operates. Samsung aims to grow in India by contributing
to the Indian economy and making the lives of its consumers simpler, easier and richer
through its superior quality products.
“Our aim is to gain technological leadership in the Indian marketplace even as our goal is
to earn the love and respect of more and more of our Indian consumers.” Mr. S.H. Oh,
President & CEO Samsung South-West Asia Regional Headquarters.
Samsung in India
Samsung India is the hub for Samsung’s South West Asia Regional operations. The
South West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri
Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India, which
commenced its operations in India in December 1995, today enjoys a sales turnover of
over US$ 1Bn in just a decade of operations in the country.
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Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located
all over the country. The Samsung manufacturing complex housing manufacturing
facilities for Colour Televisions, Colour Monitors,
Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made in
India’ products like Colour Televisions, Colour Monitors and Refrigerators were being
exported to Middle East, CIS and SAARC countries from its Noida manufacturing
complex. Samsung India currently employs over 1600 employees, with around 18% of its
employees working in Research & Development.
SAMSUNG GLOBAL
The DNA of Digital Innovation
Samsung Electronics is a global leader in semiconductors, telecommunications, digital
media and digital convergence technologies with 2004 parent company sales of
US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over
90 offices in 48 countries, the company has of 5 main business units: Digital Appliance
Business, Digital Media Business, LCD Business, Semiconductor Business and
Telecommunication Network Business. Recognized as one of the fastest growing global
brands, Samsung Electronics Corporation is the world’s largest pro ducer of Colour
Monitors, Colour TVs, Memory Chips and TFT LCD’s.
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Customized products for Indian Consumers
Samsung understands the local cultural sensibilities to customize its products according
to the Indian market. It has set up a “usability lab” at the Indian Institute of Technology
in New Delhi to customize Samsung products to meet the specific needs of Indian
consumers. This industry-institute partnership is helping Samsung to study and analyze
consumer response in aspects of product design, including aesthetics, ergonomics and
interface.
Through its research done on consumer preferences in India, Samsung has concluded
that Indian consumers want more sound oriented products. Thus, the Samsung televisions
for India have a higher sound capacity than their foreign counterparts.
For the semi-automatic segment of Samsung washing machines, Samsung has
introduced for the first time in India a feature called Super Dry. It is present in three of
Samsung’s semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the local Indian
wardrobes. They also have a ‘memory re-start’ that takes care of the frequent power
failures in India.
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Chapter 2
Research Methodology
1. Objectives of the study
2. Research methodology
3. Scope of the study
4. Limitations of the study
5. Sources of data collection
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OBJECTIVES OF THE STUDY
To find number of brands of consumer durable in Delhi.
To study brand preference of consumer for consumer durable goods..
To find most important parameter for selection of brand of Colour television,