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Market Analysis of A.C. market with special reference to Lucknow city

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DAIKIN India Pvt. Ltd.

In the partial fulfillment of the requirement of the Masters in business Administration (MBA 2014-2016).

Under the Guidance of Submitted By:

Mr.Sameer Shukla Pushpak Mahalay

Assistant Professor MBA-3rd Sem

RAMA UNIVERSITY, KANPUR

STUDENT’S DECLARATION

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I Pushpak Mahalay hereby declare that the project report entitled on “Market research” submitted in partial fulfillment of the requirement for the Master of Business Administration to Rama University Kanpur is my original work and not submitted for the award of any other degree, diploma, fellowship or any other similar prizes.

Place: Kanpur.

Date: ________

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ACKNOWLEDGEMENT

We feel great pleasure to submit this report as the culmination of efforts by our teachers and we. This project is the result of our hard work, sincerity, and devotion, & put our best to complete and in turn, gain lots of knowledge and confidence from this project.

We are deeply thankful to our project guide Mr. Shakti Singh has been successfully guided us at all and every time at every steps.

I also would like to thank you to Mr.Sameer Shukla for his all time guidance.

They had been a constant guiding force and source of illumination for us. It entirely goes to their credit that project has attained its final shape. We would like to thank them for their valuable advices and guidance and we would to use their advices and guidance in our future for our better. Lastly, we are very thankful to our parents and all those people has been supported us directly or indirectly, without their constant support and help this project report never be successful completed.

DATE:__/__/____ Rama University

PLACE: Kanpur

PREFACE

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Training is an integral part of the curriculum of M.B.A. We had prepared this report during our summer training at “Daikin Air-conditioning India pvt.ltd.” This study has given real exposure to potential of market of air-conditions. We have conduct our study under the subject “Market Research.” The main objective of summer training is as following:

To help the individual in making better decisions and effective problem solving. To help in encouraging and achieving self development and self confidence. To provide information for improving leadership, knowledge, communication skills. To help in eliminating fear in attempting new tasks.

As I know that we are living in a competitive world and there is a cut throat competition in the market. Marketing mix is the crux of marketing policy of any business it is a communication mix, price mix, & place mix.

Therefore to analyze it, I was given the topic for research “Market Research.”

This study has given real exposure to market potential of ACs.

TABLE OF CONTENT

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Sr.no. Content Page No.

1 Company History and profile 06-12

2 Abstract 13-15

3 Introduction of the Topic 16-18

4 INDIAN MARKET OF AIR-CONDITIONER 19-31

5 Corporate Ethics 32-34

6 Organization Structure 35-36

7 Strategy adopted by organisation 37-38

8 Distribution and Marketing 39-44

9 Daikin Product 45-49

10 SWOT Analysis 50-54

11 Marketing Mix 55-58

12 Research Methodology 59-61

14 Data Collection 62-65

15 Findings 66-67

16 Limitations 68-69

17 Conclusion and recommendation 70-73

18 Bibliography 74-75

19 Annexure 76

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COMPANY HISTORY&

PROFILE

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History and Profile

Daikin Air-conditioning India Pvt. Ltd. ( DAIPL) is a 100% subsidiary of Daikin Industries Ltd., Japan, a global leader in the manufacturing of commercial-use and residential air conditioning systems. Backed by the superior technology, the organization offers a wide range of energy efficient air conditioning solutions to the Indian customers. It has been successfully offering premium air conditioning solutions in the Indian market for large-scale projects. Robust growth is forecasted in India’s air-conditioning market in the future and Daikin intends to further increase its market share of residential and large-scale projects.

Daikin was founded in 1924 during a period of robust economic activity in Japan. Although Japan had trailed the Western nations in the adoption of most modern technologies, by the 1920s its major industrial groups had taken shape and were able to provide secondary industries such as air conditioning with the raw materials they needed to get started. In 1924, air conditioning was still a very young industry, the necessary refrigerants only recently having been developed in the United States. Daikin, one of the earliest Japanese entrants in the new business quickly established a solid customer base and the beginnings of an effective marketing group.

MD's Message:

Over the years Daikin India has dedicated itself to improve the quality of life by developing innovative and eco-friendly technologies. Customer satisfaction drives all our actions and we strive to establish Daikin as a brand synonymous with trust.

Daikin entered India in the year 2000 and has gained the trust of its valuable customers with innovative range of products and dedication towards quality. Over the past few years we have introduced many new technologies in India including the revolutionary VRV IV. Our new state of the art manufacturing facility will help us to serve you more efficiently and faster.

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Our commitment to customer satisfaction and quality has helped us achieve the leadership position in the premium air-conditioning segment. We have now set ourselves the mission of becoming leaders in the HVAC segment in India by providing comfortable air environment through air conditioning and other related areas like after sales service.

I hope you find this website informative, and it provides you with a greater understanding of the full range of our products and services and our deep-rooted commitment to quality.

The basic concept behind air conditioning is said to have been applied in ancient Egypt, where reeds were hung in windows and were moistened with trickling water. The evaporation of water cooled the air blowing through the window. This process also made the air more humid, which can be beneficial in a dry desert climate. In Ancient Rome, water from aqueducts was circulated through the walls of certain houses to cool them. Other techniques in medieval Persia involved the use of cisterns and wind towers to cool buildings during the hot season.

Modern air conditioning emerged from advances in chemistry during the 19th century, and the first large-scale electrical air conditioning was invented and used in 1902 by American inventor Willis Carrier. The introduction of residential air conditioning in the 1920s helped enable the great migration to the Sun Belt in the United States

Development of mechanical cooling

Three-quarters scale model of Gorrie's ice machine John Gorrie State Museum, Florida

In 1758, Benjamin Franklin and John Hadley, a chemistry professor at Cambridge University, conducted an experiment to explore the principle of evaporation as a means to rapidly cool an object. Franklin and Hadley confirmed that evaporation of highly volatile liquids (such as alcohol and ether) could be used to drive down the temperature of an object past the freezing point of water. They conducted their experiment with the bulb of a mercury thermometer as their object and with a bellows used to speed-up the evaporation. They lowered the temperature of the thermometer bulb down to −14 °C (7 °F) while the ambient temperature was 18 °C (64 °F).

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Franklin noted that, soon after they passed the freezing point of water 0 °C (32 °F), a thin film of ice formed on the surface of the thermometer's bulb and that the ice mass was about a quarter-inch thick when they stopped the experiment upon reaching −14 °C (7 °F). Franklin concluded: "From this experiment one may see the possibility of freezing a man to death on a warm summer's day"

In 1820, English scientist and inventor Michael Faraday discovered that compressing and liquefying ammonia could chill air when the liquefied ammonia was allowed to evaporate. In 1842, Florida physician John Gorrie used compressor technology to create ice, which he used to cool air for his patients in his hospital in Apalachicola, Florida. He hoped to eventually use his ice-making machine to regulate the temperature of buildings. He even envisioned centralized air conditioning that could cool entire cities. Though his prototype leaked and performed irregularly, Gorrie was granted a patent in 1851 for his ice-making machine. His hopes for its success vanished soon afterwards when his chief financial backer died; Gorrie did not get the money he needed to develop the machine. According to his biographer, Vivian M. Sherlock, he blamed the "Ice King", Frederic Tudor, for his failure, suspecting that Tudor had launched a smear campaign against his invention. Dr. Gorrie died impoverished in 1855, and the idea of air conditioning went away for 50 years.

Since prehistoric times, snow and ice were used for cooling. The business of harvesting ice during winter and storing for use in summer became popular towards the late 19th century. This practice was replaced by mechanical ice-making machines.

James Harrison's first mechanical ice-making machine began operation in 1851 on the banks of the Barwon River at Rocky Point in Geelong (Australia). His first commercial ice-making machine followed in 1854, and his patent for an ether vapor compression refrigeration system was granted in 1855. This novel system used a compressor to force the refrigeration gas to pass through a condenser, where it cooled down and liquefied. The liquefied gas then circulated through the refrigeration coils and vaporized again, cooling down the surrounding system. The machine employed a 5 m (16 ft.) flywheel and produced 3,000 kilograms (6,600 lb) of ice per day.

Though Harrison had commercial success establishing a second ice company back in Sydney in 1860, he later entered the debate over how to compete against the American advantage of unrefrigerated beef sales to the United Kingdom. He wrote: "Fresh meat frozen and packed as if for a voyage, so that the refrigerating process may be continued for any required period", and in 1873 prepared the sailing ship Norfolk for an experimental beef shipment to the United Kingdom. His choice of a cold room system instead of installing a refrigeration system upon the ship itself proved disastrous when the ice was consumed faster than expected.

Electromechanical cooling

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Willis Carrier

In 1902, the first modern electrical air conditioning unit was invented by Willis Carrier in Buffalo, New York. After graduating from Cornell University, Carrier found a job at the Buffalo Forge Company. While there, he began experimenting with air conditioning as a way to solve an application problem for the Sackett-Wilhelms Lithographing and Publishing Company in Brooklyn, New York. The first air conditioner, designed and built in Buffalo by Carrier, began working on 17 July 1902.

Designed to improve manufacturing process control in a printing plant, Carrier's invention controlled not only temperature but also humidity. Carrier used his knowledge of the heating of objects with steam and reversed the process. Instead of sending air through hot coils, he sent it through cold coils (filled with cold water). The air was cooled, and thereby the amount of moisture in the air could be controlled, which in turn made the humidity in the room controllable. The controlled temperature and humidity helped maintain consistent paper dimensions and ink alignment. Later, Carrier's technology was applied to increase productivity in the workplace, and The Carrier Air Conditioning Company of America was formed to meet rising demand. Over time, air conditioning came to be used to improve comfort in homes and automobiles as well. Residential sales expanded dramatically in the 1950s.

In 1906, Stuart W. Cramer of Charlotte, North Carolina was exploring ways to add moisture to the air in his textile mill. Cramer coined the term "air conditioning", using it in a patent claim he filed that year as an analogue to "water conditioning", then a well-known process for making textiles easier to process. He combined moisture with ventilation to "condition" and change the air in the factories, controlling the humidity so necessary in textile plants. Willis Carrier adopted the term and incorporated it into the name of his company.

Shortly thereafter, the first private home to have air conditioning was built in Chapel Hill, North Carolina in 1933. Realizing that air conditioning would one day be a standard feature

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of private homes, particularly in regions with warmer climate, David St. Pierre DuBose (1898-1994) designed a network of ductwork and vents for his home Meadowmont, all disguised behind intricate and attractive Georgian-style open moldings. This building is believed to be one of the first private homes in the United States equipped for central air conditioning.[

In 1945, Robert Sherman of Lynn, Massachusetts invented a portable, in-window air conditioner that cooled, heated, humidified, dehumidified, and filtered the air. The idea was subsequently stolen by a large manufacturer. Sherman did not have the resources to fight the big corporation in court and thus never received any money or recognition. He died in 1962.

Refrigerant development

Main article: Refrigerant

A modern R-134a hermetic refrigeration compressor

The first air conditioners and refrigerators employed toxic or flammable gases, such as ammonia, methyl chloride, or propane, that could result in fatal accidents when they leaked. Thomas Midgley, Jr. created the first non-flammable, non-toxic chlorofluorocarbon gas, Freon, in 1928. The name is a trademark name owned by DuPont for any chlorofluorocarbon (CFC), hydrochlorofluorocarbon (HCFC), or hydrofluorocarbon (HFC) refrigerant. The refrigerant names include a number indicating the molecular composition (e.g., R-11, R-12, R-22, R-134A). The blend most used in direct-expansion home and building comfort cooling is an HCFC known as R-22.

R-12 was the most common blend used in automobiles in the US until 1994, when most designs changed to R-134A due to the ozone-depleting potential of R-12. R-11 and R-12 are no longer manufactured in the US for this type of application, so the only source for air-conditioning repair purposes is the cleaned and purified gas recovered from other air conditioner systems. Several non-ozone-depleting refrigerants have been developed as alternatives, including R-410A. It was first commercially used by Carrier Corp. under the brand name Puron.

Modern refrigerants have been developed to be more environmentally safe than many of the early chlorofluorocarbon-based refrigerants used in the early- and mid-twentieth century. These include HCFCs (R-22, as used in most U.S. homes even before 2011) and HFCs

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(R-134a, used in most cars) have replaced most CFC use. HCFCs, in turn, are supposed to have been in the process of being phased out under the Montreal Protocol and replaced by HFCs such as R-410A, which lack chlorine. HFCs, however, contribute to climate change problems. Moreover, policy and political influence by corporate executives resisted change. Corporations insisted that no alternatives to HFCs existed. The environmental organization Greenpeace solicited a European laboratory to research an alternative ozone- and climate-safe refrigerant in 1992, gained patent rights to a hydrocarbon mix of isopentane and isobutane, but then left the technology as open access. Their activist marketing first in Germany led to companies like Whirlpool, Bosch, and later DAIKIN and others to incorporate the technology throughout Europe, then Asia, although the corporate executives resisted in Latin America, so that it arrived in Argentina produced by a domestic firm in 2003, and then finally with giant Bosch's production in Brazil by 2004. In 1995, Germany made CFC refrigerators illegal. DuPont and other companies blocked the refrigerant in the U.S. with the U.S. E.P.A., disparaging the approach as "that German technology." Nevertheless, in 2004, Greenpeace worked with multinational corporations like Coca-Cola and Unilever, and later Pepsico and others, to create a corporate coalition called Refrigerants Naturally!. Then, four years later, Ben & Jerry's of Unilever and General Electric began to take steps to support production and use in the U.S. Only in 2011 did the E.P.A. finally decide in favor of the ozone- and climate-safe refrigerant for U.S. manufacture.

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ABSTRACT

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Abstract

FOR a company with a relatively young history, Chinese manufacturer Daikin Electronics

Group Co Ltd has achieved a global profile that companies with a longer presence in the market

will be envious of.

This project intends to map the current image of the brand “Daikin” in Air conditioners

segments, comparison of Daikin marketing mix of Daikin vis-à-vis other more established

brands in Lucknow and finally marketing mix mapping of Daikin .

For mapping the marketing mix of Daikin with the other consumer durable brands in Air Conditioners and

first essential step is to know the current brand image of the Daikin in these segments, for this the a brand

awareness survey is already for Daikin. This gives some valuable inputs to the organization. Like in the survey

it was found that still most of the people surveyed perceived Daikin as an electronic brand which

manufactures TV and mobile phone. Marketing communication done so far for Daikin is not accurate this can

be understood by this fact that despite focusing on world 2nd largest brand status still 65% of the people

surveyed doesn’t know that it is world 2nd largest appliances brand.

In Product mapping it was found that Daikin quality is good comparing to their competitors

especially in appliance air conditioners . Daikin is the first consumer electronics company to launch

the Bottom Mount Refrigerators in India and also one of the few companies to introduce an

exclusive 100 per cent clothes dryer in the market. The Company recently launched refrigerators

with a unique VC Fresh technology that helps to keep food fresh in the refrigerators for a longer

period of time and introduced ACs with the digital Inverter technology for energy efficiency.

In the semi automatic washing machine segment one of the findings is that Daikin needs to build a

powerful USP for its semi automatic washing machines like they did it for Refrigerators (BMR) so it can

clearly differentiate with others. Currently Daikin is focusing more on fiber

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body, timer and powerful motor, which is almost same for all the present brands, other competitors like

DAIKIN despite of all these features focusing more on technology ,like Punch Plus Three, for whirlpool

its 1-2,1-2 Hand wash, for Godrej it is Force Four, and for Samsung it is

Silver Nano.

Pricing always plays a major part, especially in Lucknow market no one can deny its importance. This

study gives an insight in to different pricing strategies adopted by the different companies. In one way it

will give comparison of the customer prices in the same segment among various companies and in the

other way it will give valuable competitive information regarding pricing benefits given by the other

companies to their intermediaries, like what are the margins they are giving to their dealers, to direct

company dealers and to the distributors.

With current brand status, where people accept it as a quality brand and 6 years of business in

India now time has come for Daikin to go for “good quality in a affordable price” definitely

value for money.

Finally there is much more possibilities for the brand Daikin in the market let me put it this way.

The market is expanding and it is yet to reach full maturity. So, there is always a huge

opportunity for new players. For example, in any category, let’s say consumer electronics, the

market leader three years back has gone into oblivion and there is a new market leader now. It

all depends on how well one can drive its business, how well the company understand the

consumers and accordingly introduce value-added services for them. The opportunities are still

there. The TV market has grown to nine million and refrigerators to four million. Therefore,

there is no reason why a global leader with proven technological strengths cannot find a

footprint.

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Introduction of the Topic

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Introduction of the topic

“By the way of doing the marketing mix mapping for the Daikin, it will provide necessary

market information, competitors marketing mix strategies and accordingly comparison can be

done and which will ultimately help to offer the product with the right combination of the four

Ps and with this Daikin can improve their results and marketing effectiveness in Refrigerators,

washing machine and A.C segment”

Consumer durables Industry is growing at a rapid pace. Price Affordability, Product Awareness and

availability have helped the industry players to generate great business. But doing business in Indian

Market is not easy. Continuous improvement in Product quality and post sales service at affordable

price is common to all Consumer durable manufacturers across Industry. But the company which

would introduce innovative product, with unique technology and provide convenience by satisfying

them with something new would surely attract customers. Daikin Appliances which is one of the

largest Home Appliances brand in the world. Daikin is known worldwide for “inspiring the living”

of customers with the unique and patented product like Bottom Mounted Refrigerators.

The company was established in 1984, and in only 23 years, it has attained global recognition,

including a 25th spot ranking in the World's Most Respected Brands list by Forbes in 2006. It

has consistently been among China's top-performing companies domestically for the past 20

years, but the company is now aiming to entrench itself as one of the mainstays of the global

consumer electronics industry.

Daikin India was launched in India in December 2003 and by August 2004 had an all-India

promotion launched with over 55 products across six product categories -- refrigerators, color

television/DVDs, washing machines, microwave ovens and dishwashers. Daikin India has also

launched its brand of mobile phones in India.

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There are more worries than just fierce competition even for a late entrant like Daikin, a $9.2-billion

giant, to get a toehold in an already crowded market. Almost the entire industry was unanimous that

its image as a Chinese manufacturer will be a challenge -- its country cousin like Konka and TCL

entered, and left India, making no impression, but leaving some unpleasant memories. Other cheap

Chinese products have flooded the Indian market over the last few years, leaving Daikin with little

chance for a premium positioning. Trade circles have similar apprehensions, and fighting this image

is taking most of Daikin time in India.

Despite this Daikin entered the Indian market with a premium line of products, which prohibited the

brand from building a mass appeal. Although, there are so many players in the market and there is

enough space for players like Daikin seeing the economy grow at around 8-10%. But it is already

more than 6 years of Daikin launching in Gujarat market, their business is not like what should be

for the brand which is 2nd largest appliances brand in the world. This calls reevaluation of Daikin

marketing mix strategies in the market.

Daikin product categories range from refrigerators, refrigerating cabinets, air conditioners, washing

machines, televisions, mobile phones, home theatre systems, computers, water heaters and DVD

players. By April 2006, the Daikin Group has obtained 6,189 patented technology certificates and

589 software intellectual property rights. On January 31, 2004, Daikin was named one of the brands

among world’s 100 most recognizable brands, listed by the World Brand Laboratory, one of the

world brand evaluation organizations.

The marketing mix is a vital part of any marketing strategy. This is a tool whereby the marketer

takes decisions on what and how a product should be, where it can be sold, how it should be

priced, how it will be promoted, how to equip the people who are responsible for selling the

product… and so on.

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All about the project:

1. Why marketing mix mapping for Daikin appliances.

Daikin is world’s 2nd largest home appliances brand, manufacturing household electrical

appliances in 96 categories with 15,100 specifications, launched in India in 2003, currently

having 3% market all over the segments in Indian market. But despite having better product

range and better quality especially in refrigerator, washing machine and in AC segments are not

doing well in Lucknow market. Brands like TCL and Godrej are selling in large number in

Lucknow as compare to Daikin, which ultimately suggests reevaluation of marketing mix in

Lucknow market for Daikin in these product categories and also to establish Daikin from the

scratch.

2. Design of the study:

1. To know the perception regarding the brand “Daikin”. 2. Marketing mix mapping for Daikin in Refrigerator, Washing machine and A.C segments.

3. Identify and monitor competitors’ marketing strategies and activities:

This is about monitoring key competitors’ marketing mix strategies and evaluating their

Potential implications for Daikin. It includes assessing the corresponding opportunities and

threats, and recommending appropriate actions across the marketing mix to develop and/or

protect DAIKIN`S products.

4. Marketing mix Mapping for Daikin in Refrigerators, Washing machine and Air

conditioners segment with their competitors.

This is about evaluating the Daikin marketing mix i.e. product place, price, and promotion in comparison

with the competitors undertaking a strategic assessment of an organization’s environment also to identify

potential opportunities and threats relevant to future marketing policy and building the effective

marketing mix strategy for the Daikin in the Lucknow market.

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.

INDIAN MARKET OFAIR- CONDITIONER

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INDIAN MARKET OF AIR-CONDITIONER

Top Air Conditioner brands in India 2013:

Air Conditioning market is more competitive with many Indian and foreign players. Top air conditioner brands in India are Voltas, DAIKIN, Panasonic, Daikin, Samsung, Godrej, Bluestar, Onida, Videocon and Whirlpool. The below graph represents the market share of major companies in air conditioning industry in India for 2013.

Top Air Conditioner brands in India – Company Wise Market Share in Air Conditioner Industry, India 2013

Growth of Air conditioner market in India:

The Room Air Conditioners market in India has experienced a negative to lower growth rates in last 3 years due to weak economy and significant rise in prices. However, market is expected to grow at a healthy pace of CAGR 10-12 % in between FY 2014-15 to 2018-19.

Lower market penetration, rising income levels, increasing number of households, high temperatures & humidity, urbanization are strong growth drivers for this air conditioning industry.

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According to industry estimates, for the financial year 2013-14 Indian room air conditioner market has sold more than 3.1 Million units, which accounts at around Rs 7,800 crores.

The below graph shows the trend in Room AC market sales volume over the years.

Room AC Market Over the Years (in Mn units)

Energy efficiency star rating, aesthetic look, maintenance, cooling capacity, warranty, price and technology are currently major influential factors while purchasing an Air Conditioner.

The room ACs market in India comprises of split ACs and window ACs. The share of spit ACs in overall sales is increasing from 49% in FY 2007-08 to 60% in FY 2013-14. Further to this, the share of split ACs is estimated to reach 80-85% in FY 2018-19 due to lower noise levels, no security problems, aesthetic look and space.

Market Share of Split AC Vs. Window ACs in India

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Air Conditioners penetration in India:

The penetration rate of air conditioners in India is still at very low when compared with other household applications like Television, refrigerator and washing machines.

According to IBEF Aug’13 report, air conditioners current penetration stands at 3 per cent in India, which is very low when compared with other emerging markets or developed countries.

DAIKIN AIR-CONDITIONING INDIA AT A GLANCE:-

2000: Daikin enters the Indian market in a JV with Usha Shriram Group at 80:20 stakes respectively as Daikin Shriram Airconditioning.

2002: Daikin introduces VRV technology in India.

2004: Daikin India becomes a wholly owned subsidiary of Daikin Industries Ltd. Japan.

2007: Daikin India relocates HQ to Gurgaon and commences business of McQuay chillers in India.

2008: Groundbreaking ceremony of Daikin India’s manufacturing base at Neemrana, Rajasthan.

2009: Production commences at manufacturing plant in Neemrana, Rajasthan.

2010: Fresh round of Rs.250 crore investment. Thus taking it to a total of Rs.743 crore.

2012: Production of High Wall Split air-conditioners with R-32 refrigerant commences.

2013: Fresh round of Rs.330 crore investment.

Daikin India Network

11 branch offices (sales & service)

15 Sales offices

4 mother warehouses

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22 supporting warehouses

150+ Daikin Solution Plaza (DSP)

2200+ Channel Partners

200 plus Authorized Service Providers (ASP)

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WHY DAIKIN

1 - Adding fresh air since 1924

With over 90 years of innovation, Daikin has history of creating global air-conditioning solutions and giving many firsts in the field to the world. And as a global leader, Daikin intends to continue its contributions to society in meeting the expectations of being a global leader.

2- Global no. 1 with sales over $10 Billion.

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Daikin pursues steady growth with innovations and technology. With sales amounting to $10 billion, Daikin has achieved Global No. 1 in air conditioning sales in 2010 - 2012. The company aims to increase its sale to double its business scale in a 5 year period.

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3- Serving you better with 60 worldwide production bases.

With over 60 production bases across the world, Daikin adapts and matches the specific needs of local customers. Daikin is known for its promptness and reliability with an after sales service system that backs up its global air conditioning system.

4- Reaching you with a wide network in over 140 countries.

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The air conditioning needs can differ from country to country on the basis of weather and in some cases even culture. Daikin understands this and has earned a reputation for excellence as an air conditioning specialist in countries, connecting the globe by catering to the needs of customers with its advanced technology and techniques.

5- Air Specialists.

Daikin is the only company involved in all phases of manufacturing, sales and servicing of wide array of air conditioning products and refrigerants. It has a team of experts who believe in resolving the minutest issues related to air comfort and quality. From heating to cooling to refrigeration and freezing, Daikin has a solution for all.

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6- 3 core technologies.

Daikin has laid the foundation of the next gen technology with three cutting edge core technologies namely, heat pump, refrigerant control and inverter. It leads the market with innovation and techniques that are continuously enriching the world with air comfort and quality.

7- Expertise and investment of $300 Million for better air innovation.

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together the best and the brightest from around the world and provides the latest research and testing facilities. By congregating diverse knowledge and technologies from around the world in one place, Daikin hopes to create an Daikin serves as the hub of technological innovation in air conditioning segment and brings environment that adds new value to the industry.

8- A growth driven, employee friendly organization.

Daikin supports a work environment that offers opportunities nurturing growth and encourage people to work with enthusiasm and purpose. By respecting and acknowledging the various cultures and customs of the world for a growth driven organization, Daikin has made diversity the strength of the company.

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Environment Policy

Quality is the first priority:

“Quality First” is clearly reflected in the value delivered - such as low noise level, low power consumption, cooling efficiency, ease of installation, high reliability – all targeted to improve the quality of life.

DAIPL commits to protect the environment and ozone layer during the import, marketing, sales & servicing of air-conditioning systems and spares through:

Deploying Group Management Philosophy & Environment guidelines Adapting procedures for refrigerant handling, resource conservation and waste

management Improving its Environmental Management System continually Preventing pollution and adverse environmental impacts Legal compliance

TEN REASONS TO BUY DAIKIN:-

Air-conditioning specialist Pioneer in air-conditioners The Daikin edge with in-house manufacturing High energy efficiency Comprehensive range and quiet operation Unmatched after-sales support Five-year warranty on compressors Wise investment-Low running cost Experienced dealers Environment friendly

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CORPORATE ETHICS

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Corporate Ethics

Guidelines for Legal Compliance

Providing Safe, High Quality Products and Services Free Competition and Fair Trading Observing Trade Control Laws Respect and Protection of Intellectual Property Rights Proper Management and Utilization of Information Timely and Appropriate Disclosure of Corporate Information Preservation of the Environment

Ensuring the Safety of Operations Respect for Human Rights Diversity in the Workplace and Observance of Labor Laws Protection of Company Assets Proper Handling of Accounting Procedures Practising Moderation in Entertainment and Gift Exchanges Maintaining a Firm Attitude against Anti-Social Activities Observing Various Business Laws and Regulations

Cooperation of DAIKIN and Dealers

Daikin

o Latest Technologyo Wide range of Productso Clear Strategieso Close Communicationo Proper Education & Trainingo Quick Service supporto Motivation

Dealer

o Communicate with customero Proper Installationo Quick Serviceo Feedback to Daikino Follow Company policy

Functions: “Dealer Support”

o Communicate: Products/Policies/Strategieso Supply: Products/Parts/Selling Aidso Set: Targets/Priorities

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o Educate: Staff on Products/Applications & Strategieso Visit: Dealers & Customers with Dealerso Solve: Problems & Give feedback Quicklyo Review: Frequently performance Against Agreed Targets

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ORGANIZATIONAL STRUCTURE-

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Financial Profile:-

Revenue - $17.545 billion (FY 2014)

Net income - $904.1 million (FY 2014)

Investment in India- Rs. 1,065 crores

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Strategies adopted by the organization

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Strategies adopted by the organization

Daikin follows 10 commandments which are as follows.

1. Foster working environment-5S Environment

2. Fast execution is key to success

3. Transparent and fast communication-open communication

4. Update market -knowledge –Demographics

5. Win –Win relationship with the trade partners

6. Customer is the king

7. Even Billing –Road to ach supplier A

8. Be in touch with the market (70% Market, 30% Office).

9. Plan and Execute annual marketing Calendar-Time to market

10.Display share of 50% -to get 50% consumer share.

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Distribution and Marketing

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Distribution and Marketing

The company has number of dealers and warehouses. They have daikin exclusive shopee. For

the marketing of the products a number of activities are followed

1. Exhibitions are conducted from time to time.

2. Society and college activities are conducted.

3. Hoarding, Posters, banners are used so as to grab the attention of the costumers.

4. Day to day advertisement in leading newspaper.

5. Discount at festival time.

6. For dealer relationship they arrange dealer meting at several time in the year

7. DAIKIN divide dealer in gold silver etc. category to know the performance of the

dealers.

8. They have their sales persons at various sub dealer store and at mordent trade store for

particularly for the promotion of the DAIKIN product.

9. DAIKIN also uses the radio FM for the promotion activities.

10. Also provide capon and scratch card for festive season.

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The logistics (Supply Chain Management)

Visit to warehouse of DAIKIN Lucknow

Logistics is the art and science of managing and controlling the flow of goods, energy,

information, and other resources like products, services, and people, from the source of

production to the marketplace. It is difficult to accomplish any marketing or manufacturing

without logistical support. It involves the integration of information, transportation, inventory,

warehousing, material handling, and packaging. The operating responsibility of logistics is the

geographical repositioning of raw materials, work in process, and finished inventories where

required at the lowest cost possible.

Logistics Management is that part of the supply chain, which plans, implements and controls

the efficient, effective forward and reverse flow and storage of goods, services and related

information between the point of origin and the point of consumption in order to meet

customers' requirements.

5R’s of Logistic followed by DAIKIN:

1. Right Time

2. Right Place

3. Right Condition

4. Right Cost

5. Right Handling

DAIKIN Lucknow Distribution

DAIKIN Lucknow comes under the Northern Distribution Region. This region has following

1. Lucknow

2. Varanasi

3. Kanpur

4. Allahabad

The DAIKIN Factory is located at NOIDA & LUCKNOW. There are three types of

Warehouse-

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1. Mother Warehouse

2. Branch Warehouse

3. Spare part warehouse

The mother warehouse is that where the products from the factory are kept and from that

warehouse, the products are sent to the branch warehouse.

A warehouse is a commercial building for storage of goods. Warehouses are used by

manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are

usually large plain buildings in industrial areas of cities and towns. They come equipped with

loading docks to load and unload trucks; or sometimes are loaded directly from railways,

airports, or seaports. They also often have cranes and forklifts for moving goods, which are

usually placed on ISO standard pallets loaded into pallet racks.

In warehouse, the products are pinup with 3-color paper to get the knowledge about the

delivery.

1. Red Card – To stop the product going into market,

2. Green card – To allow the product for delivery in market,

3. Yellow Card – After the product labeled with green, allow this to move in market

Distribution Time:-

• Local delivery – 4 hrs.

• Upcountry delivery - 12 hrs.

• Within 200 km. – 24 hrs.

• Beyond 200 km. – 48 hrs.

The above distribution time is the time of delivery of products from warehouse to the market

place, which the logistic department follows to fulfill the demand in the market at right time. In

DAIKIN, we have the following process, which is followed in logistic through ERP.

Order Processing

Invoicing

Indenting

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Report

Order Processing booking for dealers /distributors

Invoicing after billing process/bill generation

Indenting requirement (Pdt Unit to branch unit)

Report distributed to all

In warehouse, there are two mode of dispersion of product from one place to another within. a)

Hydraulic b) Manual

In addition, there are 35 fire extinguishers to prevent the accidental hazard within the warehouse

due to fire. These fire extinguishers are valid up to year 2011. One has to follow the rule of “NO

Smoking” within the warehouse

Logistics Ten Commandments – Golden Rules

1 - Warehouse 5S – to be strictly followed – FG – 2, 5 & 7 to be properly maintained.

2 - 100% Bar-coding for all inward & outward transaction.

3 - Follow standard pick – ship process religiously.

4 – No inventory mismatch, shortage or excess – monthly 100% physical stocktaking.

5 – Nil 30+ for FG – 2, 3 & 5.

6 – Nil transit damage.

7 – File insurance claim within 2 days. Settle all claim all within 30 days.

8 – No inter – branch transfer without HO clearance.

9 – PSI feeding into system by 25th of every month. Ensure 90% accuracy.

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10 – Apply physical FMFO.

Problem

1- In transit material damage checking.

2- Cost target achievement.

3- Natural events tracking.

4- Fluctuation in demand-supply

Equipments

1- 100% Bar code scanner.

2- ERP – Invoice Generation Process.

3- Hydraulic Trolleys for material movement.

4- Pallets for safety of material.

45

DAIKIN PRODUCT

46

About the Product:-

Air conditioning is the process of altering the properties of air (primarily temperature and humidity) to more comfortable conditions, typically with the aim of distributing the conditioned air to an occupied space such as a building, house or vehicle to improve thermal comfort and indoor air quality. In common use, an air conditioner is a device that lowers the air temperature. The cooling is typically achieved through a refrigeration cycle, but sometimes evaporation or free cooling is used. Air conditioning systems can also be made based on desiccants.

In the most general sense, air conditioning can refer to any form of technology that modifies the condition of air (heating, cooling, (de-)humidification, cleaning, ventilation, or air movement). However, in construction, such a complete system of heating, ventilation, and air conditioning is referred to as heating, ventilation, and air conditioning (HVAC -as opposed to AC).

PRODUCTS:-

1) CASSETTE AC

These space-saving ACs are shaped like cassettes and are designed to be installed on ceilings. The panel of these air conditioners is designed to blend with all kinds of home décor. They are stylish, and are known to deliver fantastic performances.

a) Best at saving space

b) Able to cool large areas where other ACs don’t reach out

c)Blends with décor

2) SPLIT AC

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These are kits of 2 units, one internal and another external. The indoor unit installed inside a room in takes warm air and throws in cold air. The outdoor unit on the other hand is installed out of the house. It contains the compressor and is linked to the internal units via drain pipes and electric cables. This external units throws out the warm air

a)Internal unit takes up less space for installation

b) Usually more silent than windows ACs

c) Minimally affect your home décor

d) Can be installed in room with no windows

Models of Split AC:

FTXR Series

FTXG Series

FTXR Series

DTKM Series

ATKM Series

3) TOWER AC

These are also known as floor- standing AC. Like split ACs, a tower AC set consists of two units-one internal and an external. However, the indoor unit does not need wall installation. It rather occupies some space on the floor. Tower ACs usually have high cooling capacity and suitable for very large rooms.

a) Suitable for high capacity cooling.

b) Ideal for large room at home and in offices.

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d) Does not need windows or wall installation.

4) CUBE AC

This fairly new design introduced by Panasonic can be mounted close to a ceiling or at the windows level. Basically, this is a smaller version of the split type air conditioner and costs less than the former .The indoor unit features a newly designed diagonal propeller fan for efficient and fast cooling .Improve blade shape curvature and larger in take grill further aid for efficient performance.

a) Can be mounted close to the ceiling or at window level.

b) Newly designed diagonal propeller fan for fast cooling.

c) Improved blade shape curvature for efficient performance.

5- AIR PURIFIER :-

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50

SWOT

51

SWOT ANALYSIS

1. Selling products in over 130 countries2. Daikin focuses a lot on Sustainable development that is one of its strengths 3. Daikin manufactures a variety of products in Air conditioning, Chemicals, Oil Hydraulics, Defense Systems and Electronics4. With an employee force of around 50,000+, Daikin is among the Top Air conditioning Services providers of the world

5. Sponsorship of sports teams and other events

6. The brand has a significant presence in countries like India, China, Australia, Japan etc

2)WEAKNESS

1.Daikin is associated with Air conditioning, so it impacts other divisions of Dainkin’s business2.It is at a nascent stage in many of the countries, so it is very tough for Daikin to compete with existing market leaders3.Its presence worldwide is not as vast as compared to its  competitors.

3)Opportunities

1.Daikin can expand operations in the countries it has recently entered into through mergers and acquisitions2.Daikin should enter into new markets i.e. potential countries3.Need for Air conditioning is increasing among customers all over the world, this is a huge opportunity for Daikin to leverage upon

4) Threats

1.Daikin faces strong competition from other players2.Regional brands in air conditioning are coming up with cheaper and affordable variants, so this can be threat to Daikin’s present customer base

3. Fluctuating global currency prices can affect overall operations

COMPETITORS

1) Voltas:

The Indian AC major Voltas is the most favorite AC brand of Indian people. It is offered by an Indian conglomerate – the Tata Group. The product is manufactured by Voltas Limited, a subsidiary of the Tata Group, headquartered in Mumbai, Maharashtra. The Voltas ACs are famous for their performance and high durability. Voltas’ ACs are becoming increasingly popular day by day. The price range of voltas is Rs. 25,000-Rs. 55,000. Some of the models are:

Voltas Jade-5 Star(Y Series)

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Voltas Zenith-5 Star(Ya Series)

Voltas Classic-5 Star(Yu Series)

Voltas Magna-5 Star(Y Series)

2) Samsung:

The air conditioners from Samsung are amongst the most sought after and most popular in India. Samsung ACs are famous for their features and the level of comfort they offer. The prices range of Samsung is Rs. 20,000-Rs. 70,000. Some of the models are:

Triangle Inverter AC

AR18JV5DAWKNNA 1.5 TR

AR18JC5HATPNNA

AR18JV5HATQNNA

3) DAIKIN:

DAIKIN’s air conditioners are appreciated for quality. Apart from that, great service and performance, affordable price. The price range of DAIKIN air conditioners varies between Rs. 18,000 and 78,000. Some of the models are:

BSA18IMA

BS-Q186C8A4

BSA12IMA

BS-Q126B8R8

4) Whirlpool:

Whirlpool is a multinational manufacturer of home appliances based in Michigan, United states. Whirlpool air conditioners rely on the turbo cooling technology to deliver high performance. The price range of Whirlpool ACs is Rs. 32,000-Rs.55,000. Some of the models are:

FANTASIA INV (1.5T)

FANTASIA INV (1T)

3D COOL DLXIII (2T) 3 Star

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MAGICOOL DLXIII (1.5T)3 Star

3D COOL PLTV (1.5T) 5 Star

5) Videocon:

Videocon not only makes excellent air conditioners but also is best in the industry in terms of refrigerators, TVs, and so on. The prices of Videocon ACs starts from Rs. 20,000 and ends to Rs. 68,000. Some of the models are:

VSQ55.DT3-MUA

VSA55.RW1-MAA

VSA55.WW1-MAA

VSN55.RV1-MDA

6) Blue Star:

Founded in 1943, started off with reconditioning refrigerators and air conditioners. The price range of Blue star ACs starts from Rs. 22,000 and ends to Rs. 1,00,000. Some of the models are:

CNHW09CAF 0.75Ton Split AC

5HW12SC 1 Ton Split AC

5HW18SB 1.5 Ton Split AC

3HW12FC1 Ton Split AC

7) Hitachi:

Hitachi is a famous consumer electronics conglomerate from Japan founded in 1920 and based in Tokyo, Japan. Its ACs have features like anti-bacterial filter and auto climate technology. The price range of Hitachi ACs is Rs. 25,000-Rs. 70,000. Some of the models are:

Zunoh 300f

Zunoh 200f

Kaze Neo

Kashikoi 400i

Kashikoi 200i

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KAZE Reidan (H&C)

8) Daikin:

Daikin from china is rated amongst the leading consumer electronic brands in India. Daikin ACs are lauded for their excellent cooling, longevity and superior performance. Moreover, low energy consumption and reliability are the features that set the Daikin apart from the rest. The price range of Daikin ACs is Rs. 18,000-Rs. 45,000. Some of the models are:

HSU-18CKCS(R2D)

HSU-13CNFG5N

HSU-24CXAS3N-BWNA

HSU-13CNFR5CNA

9) O-General:

Bureau of Energy Efficiency has honoured O General with five stars for its energy saving features. Its price range is Rs. 25,000-Rs.60,000. Some of the AC models are:

ASGA09BMTA-0.75 Ton

ASGA12BMTA-1.0 Ton

ASGA18FMTA-1.5 Ton

ASGA24FMTA-2 Ton

ASGA18FTTA-1.5 Ton

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Marketing Mix

56

The Marketing Mix: Ingredients for Success

The marketing mix, earlier known as the 4 P’s, (but now has a few more), is a vital part of any

marketing strategy. This is a tool whereby the marketer takes decisions on what and how a product

should be, where it can be sold, how it should be priced, how it will be promoted, how to equip the

people who are responsible for selling the product… and so on. Getting the marketing mix right is

equally important for the large corporation and the small business owner. One of the most critical

marketing management decisions is that decision of setting the marketing mix values, and selecting

and employing strategy that periodically changes that marketing mixes in response to changing

business environment. The marketing mix problem involves setting the values of the marketing

decision variables; the four P’s; namely, Product (its quality), Price, Place (distribution and sales-

force expenditures) and Promotion (advertising, selling). Developing an effective marketing mix is

important for product planners seeking to gain competitive advantage in industrial markets. The

decision regarding specifying the marketing mix depends on a set of variables, such as competitor's

price, competitor's product quality, competition level, forecasted sales and others . These types of

variables necessitate adoption of appropriate approaches that can deal with such variables' nature

marketing mix mapping is a step done to achieve this.

Product:A lot of thought and effort goes into designing a product offering. The most important

question, as a marketer, a person need to ask is whether there is a need for that type of product

and how this product satisfies that need better than those of their competitors. This will force to

think of why that product is unique, and thereby help to evolve that product’s Unique Selling

Proposition.

Price: This element of the marketing mix can be many a strategy’s undoing. A complete understanding

of the financials that drive a business is essential before deciding a pricing strategy. Base your decision

after considering the following – what is the perceived value of your product in the eyes of the customer?

How price elastic is the market? Do you wish to load overheads on to the new product, if an existing

product line is capable of absorbing them? What

57

is your objective – do you plan to gain market share on the strength of a rock bottom price or do

you wish to create a premium image targeted at niche customers and price your product

accordingly?

Place: This is probably that element of the marketing mix that has undergone a complete

change in definition. Traditional trading and distribution models have given way to remote or

virtual channels. While reaching the customer may have become simpler, your job as a decision

maker has become that much more complex. You now have a plethora of options to choose from

– do you go for brick and mortar or direct mailing, use the phone or sell door to door? This

decision should, first and foremost, be driven by customer preference and then by other

considerations like logistics and economics. Indeed most businesses rely on a multi distribution

channel strategy.

Promotion: In a commoditized industry, this is what makes the essential difference. Possibly no

other marketing mix element draws as much attention from strategy makers. Again, let consumer

needs drive your efforts. Does your marketing communication address a specific need of the target

audience? Is the message memorable? Does it spur action? Here again, the entire landscape has

changed from what it was a few years ago. Promotion has gone way beyond mere advertising and

public relations – it is now a highly evolved process, ranging from live events to internet marketing.

In these times of information overload, promotion strategies must pack sufficient punch to cut

through the clutter.

The marketing mix is a dynamic entity and needs to be reviewed and refined periodically. It always

helps to stay in touch with the latest developments. Marketing mix mapping for the brand is done to

know the standing of the brand mapped with their competitors with respect to essential element of

marketing mix i.e., product, price, place, and promotion. It ensures Studying marketing mix

strategies of the brand mapped and reviewed and refined periodically according to market condition

and competition comparative mapping with other major players in the market, finding loopholes and

building effective marketing mix strategy for Daikin in AC Segment.

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Appliances market opportunities:The top 67 cities in India are also the key potential market for appliances companies’ .According to

NCAER, usage pattern of consumer durable in these cities reflect a growing trend for appliances such

as refrigerator and washing machines. Ownership of AC’s, for instance, in these 67 cities is much

higher than the national average 492 out of 1000 household in these cities own AC compared to the

national average of 134 to 1000 households. Similarly, 316 households per 1000 households in the top

67 cities owned washing machine compared to the national average of just 72 household’s among

every 1000 households.

Year 2007 was a very good year for the appliances sector in India. Air conditioners and

microwave ovens grew by 24-25 percent. And even washing machine- which have

traditionally seen poor sales – have seen moderate growth.

The housing boom in these cities is increasing the demand for appliances. The increasing

number of double - income families also bodes well for the sector.

The frost free segment of the refrigerator market is seeing spectacular growth as more

urban families are replacing their old AC.

Consumers in the south and western regions of India go for high- end models of

appliances while the north and east continue to prefer lower-end models and direct cool

refrigerators. Optimistically we can say that robust appliances sales will continue in

2008, particularly since changes in the electricity scenario is making it power accessible

to more Indians in the urban as well as rural areas.

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RESEARCH METHODOLOGY

60

RESEARCH METHODOLOGY

The process used to the collect information and data for the purpose of making business decisions. The methodology may include publication research, interviews, surveys and other research techniques , and could include both present and historical information.

The report has been prepared on the basis of information collected from different sources. In order to achieve the objective of the project proper research method was applied . After giving through brain storming session, objectives were selected and the set on the base of these objectives. A questionnaire was designed major emphasis of which was gathering new ideas or insight so as to determine and bind out solution to the problems.

Objectives of the study:-

To know the market potential of ACs in Lucknow city. To determine the dealer and customer satisfaction regarding Daikin brand. To determine the factors influencing the choice of customers regarding ACs.

Scope of the Study:-

This study is aimed providing daikin Air conditioners with an insight into the success of AC Segment as well as the customer’s response and awareness towards the brand product and services of Daikin.

The data has been analyzed and presented in a simple and precise way on the basic of which pertinent and recommendations have been made to the company better the service policies and the strategies of the company in india

Research Design

Exploratory and Discriptive

Data Collection

1. Primary Data Collection

For Product: Customer survey through use of a structured questionnaire.

For Price: Direct meeting with the dealers to know other companies pricing, by collecting

and analyzing prices for customers (MRP) dealers (D.P),direct dealers, and distributors.

For Place: Obtaining feedback from the existing dealers of Daikin and other consumer

61

electronic dealers in the Lucknow market through direct interviews. To establishing and

implementing processes for obtaining ideas, Information and insights from the dealers

regarding the Daikin marketing proposition for refrigerators and washing machine, after that

evaluating the feedback, assessing the benefits and any risks associated with possible options,

and making recommendations towards enhancing the DAIKIN marketing proposition

especially “place” or in other words dealer expansion in Lucknow city.

Promotion: Observing the number of marketing activities done by the other companies

by keeping the record of activities done by them, and also attending the activities to feel

the difference between the Daikin marketing activities.

2. Secondary Data Collection through company websites, journals & annual reports.

3. Analyzing and interpretation.

4. Mapping with respect to other competitors in the market in Air conditioners

category.

5. Findings and conclusion can be drawn.

Techniques of sampling

I have followed the Simple random sampling: in this method each element has the equal probability to be selected as a sample. It is bias free. Here an element cannot come twice as sample.

Sample design

For the market research questionnaire methodology was adopted and all the dealership of that region were visited.

For the market potential study a sample of 138 dealership was chosen in Lucknow.

Size of sample 138Location from which samples were taken LucknowSampling Technique Convenience sampling (non probability)

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DATA ANALYSIS

63

DATA ANALYSIS

Numbers of Dealers Areawise

64

65

S.no. AREANO.OF DEALERS

1 THAKURGANJ 8

2 RAJAJIPURAM 4

3 LATOUCHE ROAD 10

4 ALAMBAGH 7

5 KANPUR ROAD 5

6 ALIGANJ 15

7 JANKIPURAM 5

8 CHINHAT 4

9 FAIZABAD ROAD 6

10 CHOWK 1

11 RING ROAD 3

12 KHURRAM NAGAR 5

13 HAZRATGANJ 10

14 GOMTI NAGAR 11

15 TELIBAGH 3

16 RAEBARELI ROAD 2

17 INDIRA NAGAR 3

18 KURSHI ROAD 3

19 NISHATGANJ 2

20 MAHANAGAR 4

21 SADAR 4

22 KALYANPUR 2

23 SHAKTI NAGAR 1

24 SITAPUR ROAD 3

25 HAIDERGANJ 2

26 BANGLA BAZAR 1

27 VIP ROAD 1

28 LALBAGH 5

29 STATION ROAD 1

30 RISALDAR PARK 1

Number of HA, ED/AC, Non AC, Only AC dealer

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S.no. TYPE No. of dealer1 HA 122

2 ED/AC 7

3 Non AC 7

4 Only AC 2Total 138

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S.NO DEALER NAME AREA UNITS1 GOLDEN ELECTRONICS THAKURGANJ 10002 SADANA ELECTRONICS THAKURGANJ 1000

3INITIATIVE DATA SYSTEMS ALAMBAGH 1000

4SADANA ELECTRIC STORE ALAMBAGH 3000

5 SAHU AGENCIES ALAMBAGH 18006 CALVIN RETAIL ALIGANJ 1000

7 SADANA ELECTRONICS ALIGANJ 10008 GOLDEN ELECTRONICS CHOWK 3000

9 SAHU AGENCIES HAZRATGANJ 1000

10 AIRCARE ELECTRONICGOMTI NAGAR 1000

11 RUCHI ELECTRONICFAIZABAD ROAD 1200

12 S.D. AIRCONDITIONERSINDIRA NAGAR 4000

13 SAHU AGENCIESINDIRA NAGAR 1200

14 DINESH JAIN & SONSKURSHI ROAD 1200

15 ELECTRONIC BAZARSHAKTI NAGAR 3000

16BHAARAT SALES CORPORATION SADAR 3000

17 ARCTIC AIRCON LALBAGH 1000

FINDINGS

FINDINGS

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In the analysis the respondents have shown that they consider Daikin after Voltas, Blue star, DAIKIN, Samsung.

Daikin has to makes arrangements to increase the awareness level among the prospects through media.

Company should improve the service and build the service centre because some of the respondents in Lucknow who chooses this brand are not satisfied with the service facilities. This can be improved by regular visit of the service managers as well as providing regular training to the staff.

Many dealers do not about the brand due to lack of advertisement. If dealers are aware about the brand but do not deal with it because no distributer visit in their showroom. Daikin should improve its service to improve the brand image in the market.

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LIMITATIONS

70

Limitations of the Study

Due to time, geographic and monetary constraints. It may not be able to go deeper in to search

This study is related to Lucknow market only.

This project is primarily focused on Refrigerator, Washing machine Air conditioners product category.

Unavailability of data. Especially for promotional strategies of competitors.

There could be some errors, data collection, data interpretation, and even the environment plays an important role in the outcome of the results.

Respondents may not provide full or accurate information during the survey

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CONCLUSION

AND RECOMMENDATIONS

Conclusion and recommendations

72

1. The first and most important thing which Daikin needs to do is to, it was found in

customer survey that still 64% of people surveyed were not aware of Daikin, even

dealers who are in consumer durable business from more than past 20 years are not

aware of Daikin, for the brand which is only having capability to compete against the

Korean giants DAIKIN and Samsung needs to push the products before a customer

enters inside a store.

2. Daikin needs to increase the number of BTL (below the line) activities to generate

common awareness and visibility at grassroots level, because it can be understood

from the figures of their competitors BTL activities that Daikin BTL activities is not

up to the that mark in comparison to other competitors.

3. In Lucknow market dealers don’t want to put direct push effort on brands that’s why

unlike other cities market where if a dealer deals in DAIKIN they prefer not to deals

with its direct competitor Samsung, but in Gujarat every dealer is having collection of

brands, they want to be ready for everything like whatever customer demands they

can easily find out in their store. Currently Daikin is available with most of the major

dealers in Lucknow, Daikin needs to focus on those dealers also where it will not face

direct competition with DAIKIN and Samsung , a small and dedicated brand dealer

will work not only for margins but they also can see the future opportunities in form

of Daikin.

4. Good thing about Daikin is that they got somehow success in positioning themselves

as a quality brand the customer survey and the dealer’s survey tells the story about it.

People perceived Daikin as a good product quality brand. If this can be associated

with better pricing also there will be immense possibilities for Daikin. Need to create

a value for money brand image which can give good product quality at affordable

prices.

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5. Company product range is inappropriate especially in AC whereas every company is

having 1 Ton as an entry level AC. Daikin is having 190 liters. If company will launch a

new refrigerators in entry level with less pricing it can attract those customers who want

to opt for a refrigerator in the entry level segment in less pricing there are much more

scope for selling.

6. Daikin needs to build strong dealer relation in order to provide better “place”

strategies for the brand. Daikin lacks in company support factors and most of the

existing dealers in the dealer survey said that. Like most of the companies are having

their regular company dealers meet to get together with their dealers, Daikin lacks

needs to do this in order to regain dealer support 7. Service arrangements need to be strengthen, still people thinks that because the company is

having foreign origin and it is new too, if they will purchase any product they will face

service problem in future . Like Daikin is having 6 service centers whereas its competitor’s

whirlpool, DAIKIN, Samsung, Godrej is having 14, 9, 9, 6 service centers respectively.

Service policy of Daikin is that a customer complaint has to go from dealers, which give

unnecessary work burden on them. Customers in rural Gujarat not aware of the service call

center facilities and don’t know how do it, company is not having the service centers also

there in those area , customers passes the complaints to dealers, and dealers to distributors,

and finally distributors has to log this complaints to the call center, which creates overburden

for them.

8. Any one accepts that as a fully fledged brand, Daikin can only compete with the Korean

giants DAIKIN and Samsung. Product lines and variants in the refrigerators should be

increased to give wider option to choose from to the customer because the Daikin

refrigerators could be proved as a benchmark product for Daikin because of its unique

differentiation with others as a BMR refrigerator.

9. Most of the products are not attractive, looks simple and not represents the brand

quality, mostly in AC segment even the logo on AC are not attractive as compare to

others.

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10. Daikin should adopt aggressive marketing strategies to cut down competition and

visibility at market place.

11. Appropriate product knowledge should be given by the company to dealers and to

dealers to create awareness towards quality.

12. Overall there is much scope for Daikin in UP market. But Brand visibility should be

increased so it can convince dealers and customers like DAIKIN and Samsung are

more customers driven, where company demand is initiated by the customers, these

company products pulls demand from the market.

13. Company must have to focus on print ads, because where in the TV ads, a person can

see only if he/she open the TV and if the ads is getting broadcast that time, whereas

print ads any person can see going through the news paper throughout the day.

14. Products should be more attractive AC looks very simple and ordinary especially

direct cool refrigerators Entry level AC can do better because of price and 1.5 TON

capacities.

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BIBLIOGRPAHY

76

BIBLIOGRAPHY

www.daikinindia.co m www.daikinindia.com/products-services/split www.daikinindia.com/where-buy

www.businesstoday.in/magazine/case...daikin...in-india.../201092.html

Marketing management by Philip kotler Prof Malcolm Mc Donald, Ian Dunbar Marketing Mapping & Segmentation Vol

2003.1 By The Marketing Process Company Suresh Khana Secretary General CETMA Competition Issue In Consumer

Electronic And Durable Industry “Daikin features in Asia’s Most Admired Companies” Survey by BusinessWeek.com New

Delhi, -- July 2007. .“Daikin we go” The Pioneer, New Delhi, November 24, 2005 “Daikin 's Marketing Strategies in India” international marketing case study by

ICMR at www.icmr.icfai.org .“Consumer and Trade Promotions - Daikin Appliances (I) Pvt. Ltd” a case study by

ICMR www.icmr.icfai.or g Mckinsey Global Institute `The Bird Of Gold`: The Rise Of India’s Consumer

Market, May 2007 By Mckinsey & Company

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Annexure

Questionnaire for Air conditioners Market

Mapping FY 14-15

Lucknow

Type of outlet:

1)HA 2)DND 3)ED/AC 4)NON AC Dealer

1) How many brand you deal with in FY 14-15?

2) What is the annual counter size of your showroom for AC FY 14-15?

3) What is the sales ratio between split and window AC in your outlet for FY 14-15?

4) Name the top three selling brands for only Hi-wall split units with annual sales figure at your outlet?

5) How long are you selling Air conditioners, whether you have any other outlet?

6) Do you deal in daikin product?

A) Yes B) No

If yes then for how long and No. of units sold in FY 14-15?

If No then reason or do you wish to deal with Daikin products in future ?

7) How do you rate our product quality 1-10?

8) Best split AC according to you ?

9) How do you see daikin as a brand?

10) Feedback and suggestions:

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