SUMMER TRAINING PROJECT REPORT

ON

(THE STUDY OF MARKETING

STRATEGY ADOPTED BY DAIKIN AIRCONDITIONING AT LUCKNOW)

SUBMITTED TO

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE OF

BACHELOR OF BUSINESS
ADMINISTRATION
Batch 2010-13
Session 2012-13
Submitted by:

Supervised by:
(Amit Kumar)
Asst. Professor -Dept.

Mr.Anubhav Goyal
BBA V Semester
Roll No:104100010

of Mgmt.
1

GLA University,
Mathura

CERTIFICATE
This is to certify that the summer training project report entitled
The Study of Marketing strategy adopted by Daikin airconditioning at Lucknow, is submitted by

Mr.Anubhav

Goyal, student of BBA V Semester of this institute, under my

supervision for the partial fulfillment for the award of the degree
of Bachelor of Business Administration, Session 2012-13, Batch
2010-13.

Place: Mathura
Date:

(Name & Signature of Guide)

DECLARATION

I Anubhav Goyal, student of BBA (V Semester) Session 20122013, Batch 2010-2013 hereby declare that my work entitled
The study of Marketing strategy adopted by Daikin airconditioning at Lucknow , is the outcome of genuine efforts
done by me under an able guidance of Mr. Amit Kumar and
being submitted to GLA University, Mathura as summer training
project report in partial fulfillment for the award of the degree of
Bachelor of Business Administration (BBA).

Place: Mathura
Date:

Name: Anubhav Goyal

Course:

BBA (V Semester)

Roll No: 104100010

ACKNOWLEDGEMENT

A single person alone can never be credited for performing any

extraordinary work successfully. It is only possible with the
continuous and constant help and guidance that they receive from
others.
I would like to thank our guide Mr. Amit Kumar for guiding
us which helped a lot in carrying out this project.
I hereby acknowledge that this project has became possible by
the whole heartedly guidance and intense support from

Dr. Somesh Dhamija, who is head of BBA Department, has

given his most precious time for helping in making this project.
I would like to thank my friends and employee members of the
Daikin Air conditioning India Pvt ltd.(Lucknow), who have given
their precious and valuable time for bringing this project to the
possible extent of completion along with extra corporate
knowledge which will be beneficial in future.

EXECUTIVE SUMMARY

The project deals with the Study of the marketing strategy adopted by
Daikin Air Conditioning in the Lucknow Air-Conditioner Market. The
report consists of the primary data obtained from the dealers. The
attributes, which defined the data, were Shelf Space, Window Display,
Prices Given, Material, Dealer Preference, General Positive and
Negative Attributes for various Brands, Dealer Interface, and Finance
Schemes Offered. The data has been collected from various outlets
spread all over Lucknow (includes dealers and retailer), who dealt in
air conditioner,. Data thus obtained was then grouped and analyzed,
after which the inferences were drawn.
The study of report states that L.G. was
undoubtedly the market leader. In Lucknow AC market LG has the
highest penetration, as it is available in almost 75% of the outlets while
Hitachi is present in only 64% of the outlets. L.G. also leads in the
other categories like the window display (40%), shelf space (50%) and
while Daikin cassette share of 7%, 28% and 34% in the respective
categories. Although diakin is No.2 brand in Lucknow region but it
has the highest corporate customer or we can say, institutional sales in
comparison to other AC brands. Of the outlets visited, 44% claim L.G.
to be the top Brand whereas Daikin has 21% of the outlets claim it to
be the top Brand. The strengths of L.G. lie in its low price and good
quality whereas Hitachis strengths lie in its superior quality and post
sale service. Whereas, on the negative side the claim that LG is not as
durable as other brands & has a life expectancy less than other brands
like Daikin, General etc.
5

For Daikin the most spoken about negative is its high price .
Next there was the classification of the demonstrator/salesperson for
the outlets visited. Based on this data collected, Researcher recommend
that customer awareness about Daikin star rating mode has to improve,
so that it will be a lot easier to convince the customer that price
difference, which works against Daikin, can be negated in the
electricity bills.

TABLE OF CONTENTS:Sr.
No.

Particulars

Page
No.
ii

1.

Certificate

2.

Declaration

iii

3.

Acknowledgment

iv

4.

Executive Summary

5.

CHAPTER 1

Preface
Air Conditioning Industry and history
Company profile
Product Portfolio

CSR of the company

SWOT Analysis
5.

CHAPTER 2

6.

Introduction to the Topic

Need of the study
Objective of the study
Scope

45
48

CHAPTER 4

Analysis & Data Interpretation of

the report
Findings
8.

32
37
41
43

CHAPTER 3

Research Design
Data collection Method
7.

2
3
6
11
26
29

57
67

CHAPTER 5

Conclusions

69
70
7

 Limitations of the Study

Recommendations

71

Bibliography

73

Annexure

75

CHAPTER : I

PREFACE
This project has been taken with a view to make an in depth analysis of
latest & unique marketing strategies employed by Daikin Air
conditioning India Pvt. Ltd. with special reference to Air conditioners
& thus uncover the reasons that have propelled the company to retain
its position as leading company in AC Industry despite of stiff
competition from other competitors.
The present study creates awareness about the product quality &
unique features put forth by Daikin Air conditioning India Pvt. Ltd. It
also provides knowledge to the readers about customer preferences &
competitive analysis between various competitive firms.
The present is an effort to formulate strategy to boost up the market
share for ACs for Daikin Air conditioning India Pvt. Ltd.

Introduction
Air Conditioning Industry
Air Conditioners give respite from summer heat and have become a
necessity. They have made our lives comfortable. After a hard day's
work you return home and switch on your air conditioner and let the
fresh air relax you and rejuvenate your spirits. Once again you are
ready to shop out with your family or help your spouse in household
work or spend some quality time with your kids. India you desperately
need an air conditioner. In this scorching heat it is only an air
conditioner that can give you some respite and make you livelier and
energetic. Earlier buying an air conditioner was not easy. It was very
costly and middle class families can't afford but now purchasing an air
conditioner in India is no more tough and expensive. There are various
companies offering air conditioner like LG, Daikin, Samsung, Onida,
Godrej, Sanyo, Carrier, Bluestar, Voltas, Amtrex, General etc. These
companies have various offices all over India. They have their own
store and shops selling air conditioner of all types. Air conditioner
comes in various sizes and shapes. Some air conditioner does not even
look like an air conditioner especially ones offered by LG. Their
surfaces are too good looking and look like a beautiful scenery. There
are room air conditioners, split air conditioners, car air conditioners,
ductless air conditioners, air ceiling conditioner mount system etc.

HISTORY OF AIR CONDITIONERS

Air conditioning as we know it today is a rather new technology
although different form of cooling air and dehumidifying the air has
been around for centuries. The ancient Romans used aqua duct water to
circulate through the walls of the wealthiest homes. This is just one
example of ancient air conditioning. The Chinese were also were also
obsessed with cooling the air through water and wind. They used
various methods to cool their interior buildings and stay cool during
the hot months.
In the 1800's one man came close to inventing what is similar to
modern day air conditioning. In 1820 British Inventor Michael Faraday
discovered that ammonia could chill the air when compressed and
liquidized and then allowed to evaporate. In 1841, John Gorrie, a
medical doctor discovered that he could use compressor technology to
create ice to cool his patients rooms in Florida. This discovery gave
Gorrie the great aspiration of inventing the first air conditioning unit.
He came very close. His first pro type leaked and was unsuccessful. He
secured funding and his patent was approved in 1851. His funding
partner died and he lost the money to see his dream realized. He later
died in 1855 and with him his vision of indoor air conditioning died as
well for the next 50 years. The commercially available of air
conditioning applications started based on the need to cool air for
industrial processes than for personal comfort. The first electrical air
conditioning was invented by Willis Haviland Carrier in the year 1902.
He was also known as the Father of Modern Air Conditioning. His
invention was designed to improve the manufacturing process of a
printing plant. By controlling the temperature and humidity of the
plant, the processes were made more efficient as the paper size and the
ink alignment were consistently maintained.

The Carrier Air Conditioning Company of America was established by

him to meet the demand of better productivity in the workplace. Today,
Carrier Corporation is the biggest air conditioner manufacturer and
marketing corporation in the world in central air conditioning. The
term air conditioning was first coined by Stuart W. Cramer of
Charlotte, North Carolina in 1906. Cramer was trying to create ways to
add moisture to the air in his textile plants. Cramer used the term Air
conditioning in a papers filed to the patent office for his invention of a
water conditioning unit which was required to control the humidity in
textile plants. Willis Carrier took the term air conditioning and put it
into his companies name as he used evaporative cooling to provide a
cooling effect in the air. The first air conditioners proved to be
hazardous to humans health when the toxic gases leaked. The use of
ammonia, methyl chloride and propane. These toxic, flammable gases
tended to leak causing fatal results. In 1928 Thomas Midgley, Jr. was
the first to create an air conditioner that used Freon. This was found to
be much safer for humans but had disastrous effects to the
environment. Modern day air conditioning has improved over the
years. The emphasis these days are on energy conservation and
efficiency.
The modern day air conditioner can come with all sorts of bells and
whistles and most importantly is that it is available to just about
everyone. The modern day air conditioning is affordable to everyone.

COMPANY PROFILE

Daikin Industries Ltd.

Daikin Industries, Ltd. is a Japanese multinational air conditioner
manufacturing company headquartered in Osaka. It has operations in
Japan, China, Australia, India, Southeast Asia, Europe, and North
America.
The company was founded in 1924 by Akira Yamada in Osaka, Japan.
Daikin was founded as a chemical corporation, with a focus on air
conditioning systems. It has since diversified its manufacturing
division to take advantage of experience in fluorine chemistry.
In November 2006 Daikin purchased OYL Industries. This made
Daikin the second largest HVAC manufacturer in the world after
Carrier Corporation. Daikin co developed a R-410A refrigerant with
Carrier and is an innovator in the Split System Air Conditioning
Market, and is the inventor of Variable Refrigerant Flow (VRF) air
conditioning systems (These systems are called Variable Refrigerant
Volume or VRV by Daikin). In January 2011, Daikin announced plans
to buy Goodman Global at around US $4 billion, however, the plans
were put off following the 2011 Thoku earthquake and tsunami. In
2008 Daikin purchased a 75% share of All World Machinery Supply
based out of Harvard, Illinois. Daikin developed the hybrid hydraulic
systems using technology from their Air Conditioning division. Facing
the global demands on C02 reductions and the serious energy issues
facing the world, this product aims to cut energy consumption in the
manufacturing sector.

In August 2012 Daikin agreed to acquire Goodman Global from the

San Francisco-based private equity firm Hellman & Friedman for $3.7
billion. The acquisition will expand Daikin's presence in the United
States and in duct-type air-conditioners, and will make Daikin the
world's largest maker of heating, ventilation and air-conditioning
systems.
Daikin is the official sponsor of Galatasaray Daikin women's volleyball
team.

PROFILE
Industry

Electronics

Founded

Osaka, Japan (February 11, 1924, Osaka

Kinzoku

Kogyo Limited Partnership)

Founder(s)

Akira Yamada

Headquarter

Umeda Center Building, 4-12,

Nakazaki-

nishi Nichome, Kita-ku, Osaka, Japan

Key people

Noriyuki Inoue (chair, CEO)

Yukiyoshi Okano (president, COO)

Products

Air conditioning systems

Revenue

1,160,330 million yen

(consolidated March 2011)

Operating income

75,455 million yen

(consolidated, March 2011)

Net income

19,872 million yen

(consolidated, March 2011)

Total assets

1,132,506 million yen

(consolidated, March 2011)

Total equity

50,928 million yen

(consolidated, March 2011)

Employees

41,569 (consolidated, as of March 31, 2011)

Website

www.Daikin.com

CORPORATE VISION

Come first in customers mind as the most trusted air-conditioner

brand.

CORPORATE MISSION
To contribute to the society by providing the most advanced airconditioning solutions.
To ensure continuous customer satisfaction.
To establish Daikin Brand as a brand of trust and confidence, which
our customers and dealers believe in

DAIKIN BUSINESS
8

Daikin Air conditioning India Pvt. Ltd manufactures and markets a wide
range of air-conditioning and refrigeration systems and products. These include
large central air-conditioning plants, packaged air-conditioning systems, split and
window air conditioners. Daikin Air conditioning India other businesses
include marketing and

Daikin has eight separate industrial and

management divisions focusing on the corresponding fields of:

Air Conditioning
Chemicals
Transportation & Refrigeration Systems
Semiconductors
Hydraulic Equipment
Hybrid Hydraulics
Electronics
Defence
After Sales Service
Oil Chilling units
Core pull units for the Plastic Industry

INTERNATIONAL PARTNERSHIPS

It is a subsidiary of Daikin Industries Ltd. It was launched in India

in the year 2000 in a joint venture with Shriram Air conditioning and
targeted the Premium sector market and positioned itself as an Elite
Product.

ECO FRIENDLY

Daikin Air conditioning India Pvt. Ltd has made significant progress
towards minimizing and even eliminating the environmental hazards resulting
from CFCs in certain refrigerants used for cooling. As a matter of fact, Daikin has
already introduced 'ozone friendly' centrifugal chillers, the safe refrigerant . Daikin
also markets absorption chillers, which use water as refrigerant. All Daikin
reciprocating chillers already use HCFC-22 refrigerant, which is more friendly to
the environment than the older one. The Company actively promotes wider use of
large refrigeration systems using ammonia as the refrigerant.

10

TYPES OF AIR-CONDITIONING
The diagram below gives a broad idea of the different kinds of airconditioning systems available in the market for various applications.

Air conditioners are divided into Ducted Systems and Non-Ducted

products(unitary products). Ducted systems are normally chosen for
air-conditioning

large

spaces

like

office

floors,

showrooms,

departmental stores, restaurants, etc. Whereas non-ducted products

(split air conditioners and window air conditioners)are mainly used for
air-conditioning smaller spaces like individual rooms in an office or
residence. As the name implies, split air conditioners are split into two
basic components -the indoor unit (IDU) and the outdoor unit (ODU).
These two units are connected by refrigeration tubing and electrical
wires that pass through an opening in the wall, barely 10 cm. in
diameter. By keeping the relatively noisy components, such as the
11

compressor and condenser fan in the outdoor unit, the air-conditioned

space tends to be quiet. Split air conditioners are relatively more
expensive than window air conditioners but are preferred for spaces
where there is no window or which require a quiet environment.

TYPES OF COMPRESSORS
As mentioned earlier the compressor is the heart of an air conditioner.
Different types of compressors are used in Window, Split, and
Packaged Air conditioners. These include reciprocating, scroll or rotary
types. All these compressors are hermetically sealed which means that
the compressor consists of a gas-tight steel shell within which is
housed an electrical motor and a compressor unit.

a. Reciprocating compressors
These compressors typically have one or two pistons mounted on the
crank shaft extension of the motor. The motor moves the piston
through the crank shaft and each time the piston moves down,
refrigerant gas is sucked into the cylinder. When the piston moves up
the gas is pushed against the discharge valve which opens to let the
compressed gas out. These compressors are available from a small
fraction of a ton up to 10 ton capacities.
b. Scroll compressors
These compressors are a recent innovation and are extremely energy
efficient. They have only three moving parts compared to fifteen in
reciprocating compressors and are eight times less noisy. Scroll
compressors use two interlocked spiral-shaped members, which
enclose the refrigerant gas in pockets between them. One of the spiral
12

shaped members is fixed while the other orbits causing the refrigerant
to be squeezed into ever decreasing pockets until it reaches the centre

of the spiral from where it is discharged. They are highly reliable and
save up to 15% on power bills.
c. Rotary compressors
This type of compressor has a rotor eccentric to the cylinder housing
and blades, which slide to form a continuous seal for the refrigerant
gas. At the beginning of the cycle a volume of refrigerant gas enters the
chamber and as the cycle progress the nature of eccentricity squeezes
the gas thereby compressing it. Rotary compressors are considered
unsuitable for areas with high ambient temperatures and are limited to
use in window and mini split air conditioners. These compressors are
not repairable and have to be replaced in case of a breakdown.

PRODUCT RANGE
Split Systems
From our compact, yet powerful outdoor units to our quiet concealed
or wall-mounted units, Daikin systems offer the kinds of innovative
and unique product features that deliver the optimum in air conditioned
comfort and control. Each system uses specific outdoor units. Choose
individual components.
13

Ceiling mounted cassette type

Quiet, dcor-blending form and easy installation in new or old
buildings.
Models :
Cooling Only:
FHC 18/21/26/30/36/42/48
Heat Pump FHYC :35/50/60/71/100/125/140

Floor Standing Type FVY

14

The floor-standing configuration means the FVY is easy to install and

maintain. It can also be installed under high ceilings.
Models :
FVY71, FVY100, FVY125

VRV (Variable Refrigerant Volume)

VRV is the latest and most revolutionary technologies used for large
sized buildings.
The system offers large outdoor capacities, greater energy savings,
easier installation, longer actual and total piping, and more.

15

The Daikin Inverter Ducted

The Daikin Inverter Ducted line is a cost-effective alternative to
traditional high-efficiency gas furnace/AC systems. These new Daikin
products provide more comfort because they are equipped with Daikin
Constant Comfort inverter technology. Daikin Inverter Ducted systems
offer up to 100% heating capacity when the outside temperature is as
low as 14F (systems can operate in heating mode down to 0F),
making them cheaper to run than traditional heat-pump systems in
most climates. They are also more compact and quieter than traditional
units.

16

Window ac's - turbo rotary deluxe model

Daikin ACs come in innovative capacities. Like 1.25T. Which means that you
don't have to compromise and settle for an AC of higher tonnage, and
consequently, higher power consumption. Both these models are fitted with
Mitsubishi compressors for virtually silent operation and come with anti-bacterial
filters, corrosion resistant blue fins and full function remote (optional). All in all the
best AC deal you're likely to get.

17

VRV (Variable Refrigerant Volume)II & III.

VRV is the latest and most revolutionary technologies used for large
sized buildings.
The system offers large outdoor capacities, greater energy savings,
easier installation, longer actual and total piping, and more.

18

STRATEGIES ADOPTED FOR GROWTH

Daikin Industries Limited

Founded in 1924, Daikin Industries Limited is the global leader in the
manufacturing of commercial and industrial air-conditioning systems.
Being the world's sole manufacturer capable of developing a full line
of dynamic products from refrigerants to air-conditioners, Daikin has
built a well-established and strong presence in Japan, China, Southeast
Asia, Europe as well as North America.
Daikin Air conditioning India Pvt. Ltd
It is a subsidiary of Daikin Industries Ltd It was launched in India in
the year 2000 in a joint venture with Shriram Air-conditioning and
targeted the Premium sector market and positioned itself as an Elite
Product. After introducing its superior air-conditioning solutions in
India in the year 2000,Daikin is repositioning itself as Product for
common man in the Indian market with the launch of its residential
ACs (0.75-1.8 tonne) which will go by the FTE name. This is in direct
competion with the existing players in the market, mainly Toshiba. It is
test marketing these products in Delhi, Mumbai and Chennai and may
then do so in 19 Tier-III towns and cities such as Ludhiana, Jalandhar
and Raipur.
Corporate Profile:
Company name :DAIKIN AIRCONDITIONING INDIA PVT. LTD.
(DAIPL)
Established :4 April 2000
Location :Head Office : Neemrana town, Rajasthan
19

Global philosophy: Quality First

Business range :Manufacturing, sales and related services of air
conditioners and chillers.

Products:

It serves both, the residential market as well as the Industrial market.

Its products range from the Residential Split Air conditioner to
Dutiable Units and the Centrallized Air-conditioning VRV systems (aircooled and water-cooled) to the Chillers (air cooledand water-cooled).

Marketing Strategy:

It sells the residential air conditioners mainly through its Channel

Partners (dealer network).
The centralized air-conditioning systems, the VRV (air-cooled and
water-cooled) and the Chillers (air-cooled and water-cooled) is sold
mainly through the Opinion leaders like Architects and the HVAC
consultants.

20

Commercials aired on TV targeting the

Consumer:
Segmentation and Targeting : Premium market
Customers
Positioning : Elite Product

1.Daikin Air conditioner 1(Monkey ad):

This was Daikin's TV ad in India during 2003-04. It positioned the air
conditioner firmly as technological wonder that offered complete
silence. The ad contributed in a large measure to Daikin commanding a
heavy premium in the Indian air conditioner market. The ad also won
recognition at Cannes Advertising Festival, Ad Club of India and the
Effie Awards. This advertisement was launched between the end of the
introduction phase and before the beginning of the Growth phase.
21

2.Daikin Air Conditioning 2 (Service Focus):

This ad tries to explain the importance of the timely Service and its
Quality and thus differentiates itself from the rest. This advertisement
was launched during the early growth phase.

3.Daikin 3(Relaxation):
This ad stresses on the feel of relaxation and comfort that the customer
will enjoy. It also differentiates itself from the others by the fact that it
makes no noise in operation. This advertisement was launched during
the growth phase.

4.Daikin 4(lifestyle):
This ad differentiates Daikin by way of the fact that inspire of the
various lifestyles that people lead, it fits into their lifestyle wherever
they may go. Thus it gives a strong message that it is distinguishing
brand and that the customers should take pride in themselves. This
advertisement was launched during the growth phase

Repositioning for Residential Use:

Daikin is repositioning itself as Product for common man in the Indian
market with the launch of its residential ACs (0.75-1.8 tonne) which
will go by the FTE name. This is possible because Daikin has recently
acquired Greed, the Chinese AC major, and will be using their resource
base for the further development of the ACs it will produce in India.
It is test marketing these products in Delhi, Mumbai and Chennai and
may then do so in 19 Tier-III towns and cities such as Ludhiana,
Jalandhar and Raipur.
22

Introducing Pichon-Kun:
A mascot that will now represent the Daikin's innovative thrust into the
future is called "Pichon-kun". The new mascot of Daikin is so named
because of the sound it makes. Created in Japan, this dew droplet
represents the "fresh as morning nature" of Daikin's new range of air
conditioners and air-purifiers. Piton-kun symbolises the best of nature
-- fresh, natural and eco-friendly. The Company still is in its Growth
Stage of the PLC.

CONSUMER AWARENESS OF
ADVERTISING

The effects of exposures on audience awareness depends on the Reach,

Frequency, and Impact:-

Reach (R) : The number of different persons or households exposed to

a particular media schedule at least once during a specified time period.

Frequency (F) :

The number of times within the specified time

period that an average person or household is exposed to the message.

Impact (I) :

The qualitative value of an exposure through a given

medium (thus a food ad in good housekeeping would have a higher

impact than in the police gazette.

23

The relationship between reach, frequency and impact is captured in

the following concepts:

Total number of exposure (E) :

This is the reach times the average frequency; that is
E=R*F

This measure is referred to as the Gross Rating Points (GRP).

Weighted number of exposures (WE) :

this is the reach times average frequency times average impact;
that is:
WE = R * F * I
Many advertisers believe a target audience needs a large number of
exposures for the advertising to work. Others doubt the value of high
frequency. They believe that after people see the same ad a few times,
they either act on it, get irritated by it, or stop noticing it.

24

The Government Policy Regarding ACs

The attitude of the government to the industry in general has been influenced by
the perception of white good as a luxury item. Only after 1993 did the government
liberalize its attitude towards white goods. Till 1994, excise duty on ACs varied
from Rs.7,000/- for 0.5 tonne ACs to Rs. 9,000for 1.5 tonne models. In the 199495 to 1996-97 budgets, the govt. gave considerable relief to the Air-conditioning
sector. The excise duty was reduced from 80% to 60% in1994-95 and from 60%
to 30% in the following years and in 2011-2012 budget Full Central Excise
duty exemption for air conditioning equipment & panels of 3 Tonne
air-conditioning capacity and above. In the EXIM policy, ACs continued to
be in the negative list, which means they cannot be imported without licenser as
baggage.

25

CORPORATE SOCIAL RESPONSIBILITY:

Daikin's Corporate Social Responsibility (CSR) philosophy is built on

three pillars namely:

Environment protection
Energy conservation
Community development around its facilities.

The Company is highly committed to the cause of protecting the

environment. Energy efficiency of its products remains a corner-stone
of its research and development efforts Air, water and energy
management services as well as LEED (Leadership in Energy and
Environmental Design) consultancy for Green Buildings have been
part of its business and practices.
The Company has also been contributing in the technical domain in
the use of eco-friendly refrigerants in its products. Energy
Conservation goes beyond using efficient products. A huge amount of
energy is wasted nationally due to sheer ignorance and lack of
awareness.
Daikin helps deserving institutions such as hospitals and colleges to
save power by conducting free walk-through energy audits. The
Company

has

conducted

several

such

audits

with

energy

recommendations for Jai Hind College, St Xaviers College, Nirmala

Niketan College of Social Work, National Association for the Blind
(NAB), Bombay Natural History Society(BNHS), JJ School of
Architecture and Dilkhush Special School, amongst others. In its
26

efforts towards community development around the Companys

facilities, the Company has initiated and sponsored a study in the
villages around its Wada Plant to understand the immediate needs.
Vocational training and health emerged as pressing needs in this
underdeveloped region. Daikin has sponsored the vocational training
courses offered by an NGO, KSWA in Wada. This centre was set up to
support a vocational training initiative for school and college dropouts
to make them employable contributing members of their families and
communities. Regular visits by the Company's employees have aided
in technical support to KSWA for conducting the courses. In addition to
the above CSR efforts, the Company sponsors various philanthropic
activities through its Trust, Daikin Foundation, which has been
supporting several

Daikin has made global warming prevention one of its top priority
issues and actively pursues environmental impact reduction in all
business activities.

The Daikin Group offers products utilizing technologies in both air

conditioning and flouro chemicals to provide living spaces with
comfort. Daikin also contribute to sustainable development of society
through proprietary advanced technologies and advanced R&D in
companies oil hydraulics business, which encompasses energy-efficient
technologies cultivated in companies air conditioning business, and
companies defence systems business, which provides a wide range of
products from aerospace parts to home medical equipment.

Ever since developed Japan's first air conditioner in 1951, the Daikin
Group has used the air conditioning and chemical expertise it has built
27

up to bring comfort to people around the world, whether they are at

home or at work. In the fields of oil hydraulics and defence systems,
companies proprietary cutting-edge technologies and R&D capabilities
have advanced industry and improved people's lives.
Of all companies businesses, those with the greatest impact on
environmentally are the air conditioner business and companies fluoro
chemical business, which makes the fluorocarbon refrigerants for air
conditioners. Air conditioners use large amounts of energy, and
fluorocarbons are greenhouse gases that cause global warming. The
structure of companies business necessitates that Daikin made it
mission to help prevent global warming. Daikin thus do all that can to
reduce environmental impact in all areas of business.
Companies aim is to be an environmentally advanced company by
developing and marketing environmentally conscious products and
services and by reducing emissions of fluorocarbons and CO 2 in the
production, distribution, and marketing stages.

28

SWOT ANALYSIS OF THE DAIKIN INDIA

PVT. LTD. COMPANY
Strengths:
Only Dakin manufactures open-type centrifugal chillers with ozone friendly
refrigerant HCFC 123

Only Daikin India Pvt. Ltd. manufactures variable air volume systems for
economic localized cooling control

Only Daikin India Pvt. Ltd. manufactures air handling units with dependable
ratings to factory precision and the widest choice with single skin, double skin,
horizontal, vertical, ceiling suspended and unitary.

Air-conditioning of the largest number of synthetic fiber plants in India

exceeding25,000 Tons and 36 customers

Largest Industrial air-conditioning contracts in India - RBI Note Mudran Private

Limited: Rs.40 cores.

First to manufacture semi hermetic reciprocating compressors in India to

international standards

29

 First air-conditioning company to introduce the concept of a Comfort Shop.

It has a strong setup, Willis Carrier Engineering Centre, to provide technological
support to develop new products and upgrade existing ones.

It has successfully introduced finance schemes that have taken air-conditioners out
of the luxury category and made it affordable for the homebuyer.

Weaknesses
Considered as premium brand so middle class people think it is unaffordable.
Although DAIKIN protects its Position in Domestic AC market but is regularly
losing market share.
Market penetration is still very low.
Low qualities resulting in exports prices being non competitive.

Opportunities
Confederation of Indian Industry (CII) has urged the government to reduce special
excise duty (SED) on air-conditioners from 16% to 8% in the forthcoming budget.
Opportunity to influence Growing Indian middle class in influencing their
decisions with regard to the products offered by DAIKIN through comparatively
lower prices.
30

 Advent of Internet provides an excellent opportunity to reach to a large base

of customers and cut costs.

The increasing presence of multinationals in India for manufacturing be it

Samsung, LG, Carrier, Hitachi, thus providing an opportunity for upgrading the
quality of manufacture in the country.

THREATS

Likely to face fierce competition from domestic companies as they have wellacknowledged brands, an extensive distribution network and better insights about
the local market conditions.
Increased threat from cheaper imports, especially from China
MNCs like Samsung, Carrier, LG and Voltas are continuously raising their share
while Daikin despite of increasing sales is losing its market share.

31

CHAPTER : II
INTRODUCTION TO THE
TOPIC

32

GENERAL INTRODUCTION
Indian Consumer durables market used to be dominated by few
domestic players like Godrej, Daikin, Allwyn and Kelvinator. But post
liberalization many foreign companies have entered into Indian market
dethroning the Indian player and dominating Indian market the major
categories in the market REFRIGRATOR, AIR CONDTIONERS AND
WATER COOLERS.
India being the second largest growing economy with huge consumer
class has resulted in consumer durables as the fastest growing
industries in India. LG &SAMSUNG the two Korean companies have
been maintaining the lead in the industries with LG being leader in
almost all the categories .
Consumer durables major Daikin Limited will invest nearly Rs 250
crores in India this year in research and development, brand-building
and other marketing initiatives.
The company, having a turnover of Rs 500 crores and market share of
9per cent, is investing Rs 250 crores on brand-building and other
marketing initiatives and around Rs 150 crores on research and
development, besides launching new platforms in information
technology and related areas,
Before the liberalization of the Indian economy, only a few companies
like Kelvinator, Godrej, Allwyn, and Daikin were the major players in
the consumer durables market, accounting for no less than 90% of the
market. Then, after the liberalization, foreign players like LG,
Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today,
these players control the major share of the consumer durables market.

33

Consumer durables market is expected to grow at 20-25% in 20112012. It is growing very fast because of rise in living standards, easy
access to consumer finance, and wide range of choice, as many foreign
players are entering in the market .With the increase in income levels,
easy availability of finance, increase in consumer awareness, and
introduction of new models, the demand for consumer durables has
increased significantly.
Products like washing machines, air conditioners, microwave ovens,
colour-televisions (CTVs) are no longer considered luxury items.
However, there are still very few players in categories. Consumer
durables sector is characterized by the emergence of MNCs, exchange
offers, discounts, and intense competition. The market share of MNCs
in consumer durables sector is 65%.
MNC's major target is the growing middle class of India .MNCs offer
superior technology to the Consumers whereas the Indian companies
compete on the basis of firm grasp of the local market, their wellacknowledged brand name, and hold over wide distribution network.
However, the penetration level of the
consumer durables is still low in India & there is a yet a huge untapped
rural market waiting to be exploited.
Few years ago liberalization was not there in the Indian market. But
slowly and gradually scene changes and liberalization paves its way in

34

the Indian market. Advantage of liberalization policy has changed the

whole scenario.

Therefore, today's winning companies are those who succeed best in

satisfying target customers. In other words winning companies are
those who provide value for money. They are market focused and
customer driven, rather than solely product focused or customer driven.
The most wrenching change that the business scenario is experiencing
involves acquiring a strategy to cope with liberalization.
Rising temperature and unexpected climate has lead to the invention of
Air-conditioner system. Thus this leads to birth of new industry known
as AC Industry.

35

This project report is made by conducting a Market research on

Daikin India Pvt. Ltd. Ltd with special emphasis on Air Conditioners
and use of selected exploratory design to conduct the market research
because it is the most sound research design that is likely to achieve the
research objectives. The goal is to explore rather than conclude on the
level of awareness that people have about Daikin India Pvt. Ltd. Air
Conditioners. It was interested in knowing the expectations and
apprehensions people have from the company. The Exploratory studies
are used to seek small-scale information rather than definite results. It
was also analyzed that this research design is relatively inexpensive as
compared to other research designs.
The main focus of this report is to study the marketing strategy
adopted by the company and customer satisfaction level with the
product performance in Lucknow (U.P.).

36

NEED OF STUDY

The air-conditioning industry has a total market size of approx. Rs. 1500 cores. It
can be classified into windows, split, packaged and Chillers Air-conditioners. The
split is divided into ducted and non-ducted. The window and split AC have a
current market of Rs. 900crores and the central including Chillers command a
market of Rs. 600 cores.

37

Daikin's manufacturing plant at Neemrana, Rajasthan aims at creating

products that will make people's lives more comfortable. It is supported
by a network of production bases throughout the world and showcases
the

application of

advance

technology

and equipment.

Our

comprehensive quality control system features centrally computerized

management of quality and production data to facilitate timely
production that bears the stamp of excellent quality. Moreover, due
care is taken to create a pleasant working environment for the
employees, as we are of the firm belief that a superior working
environment is essential to produce superior products. Through our
quality control system and corporate activities, we ensure compliance
with international quality checks and environmental management
standards. We aim to serve the Indian market with locally
manufactured products as much as possible. By reducing the supply
lead-time and meeting market needs in terms of product specifications,
Daikin India plans to strengthen is leadership on the Indian terrain.

Initial project investment of about Rs. 210 Cores

38

Spread across a sprawling area of 160,000 sq. mtr.

Projected annual production capacity:
20,000 VRV (Variable Refrigerant Volume) units
1,800 Chillers units
The manufacturing facility follows Daikin's Global Philosophy of
being an organization committed to the environment and is designed to
fully recycle water for its operations. More than 50 percent of the open
area is left as green area & 34 percent area is treated as green area with
trees & plantations. Daikin Neemrana facility incorporates Daikin's
global Environmental Management System (EMS) that has been
implemented in the factory promotes adapting procedures for
refrigerant handling, resource conservation & waste management.

Profitability
Margins in the industry vary depending upon the segment, model and sizes,
between abroad range of 10 to 20%. However margins in the window segment are
the least. But these are reasonable in the case of Split ACs. Even then, for players
who have their own Compressor Manufacturing facilities, margins are higher.
Margins are highest in Central and Packaged Air-conditioning segments ranging
between 20-24%.
Important Factors
The important factors that govern profitability in the Air-conditioning Industry are
Product Technology, Volumes, Distribution Network, After Sales Service and
Aesthetics. Most critical in the Product Technology is the Compressor, which
contributes about 40% of the total cost. The most common type is reciprocating
compressor. This is well suited for the Indian conditions where dust and ambient
39

temperatures are relatively high. But the wear and tear is quite high necessitating
frequent repairs. The rotary compressor is suitable for conditions where
temperature does not exceed 55degree Celsius. Beyond this, its cooling efficiency
decreases.
Hence it is suitable for coastal areas like
Mumbai where temperatures are low as compared to central and northern India.
Also it cannot withstand voltage fluctuations, which are common in India and once
spoiled it cannot be repaired. But the advantage is that it is much more efficient
than the reciprocating one at moderate temperatures, consuming less power with
negligible wear and tear problems. The latest compressor technology is the scroll
compressors. It has no part, which can cause wear and tear, is very efficient under
variety of conditions and can be repaired instead of being replaced. The three world
leaders in compressor technology Copeland, Bristol and Tacumbch already have a
presence in India through their collaboration with Kirloskar, Carrier Aircon and
SIEL respectively.
Since this is a volume driven business in the window segment and technology
driven in the package segment, distribution network and after sales services are the
deciding factors in these two segments respectively. Being a consumer durable
industry the activities aspect too is important. While 40 to 45% of the sales in the
window segment come from first three months of April to June and the rest from
the other months, there is no such seasonality in other segments, so companies
have to manage inventory with minimum cost.
Recent Developments

The technology (called variable refrigerant flow or VRF), invented by Daikin of

Japan, is now being developed in India by large and established players including
LG, Voltas and Daikin India Pvt. Ltd..

40

 Daikin recently executed four major projects to set up perishable cargo handling
refrigerated facilities at Ban galore, Pune, Hyderabad and Chennai airports.

Daikin, leaders in air conditioning, have air conditioned many prestigious

establishments such as Parliament House, Bombay Stock Exchange and Reserve
Bank of India. It is this very same expertise that goes into their new window air
conditioners.

OBJECTIVE OF THE STUDY:

To study brand awareness for Daikin in the market place.

To Study Daikin competitors marketing

strategies, and then

comparative mapping with other major appliances players in the

market, finding loopholes and building effective marketing strategy
for Daikin in Refrigerator.

To analyze right strategic direction for Daikin firstly by the way of

studying current image of the brand Daikin, secondly through market
mapping.

It gives valuable inputs regard to difference that the brand is dealing

with their competitors. Like if LG, SAMSUNG, GODREJ,
41

ELECTROLUX are present in a segment, satisfying same customer

need, what is the difference in terms of product offering, technology of
the products, pricing strategies of the competitors. This is also suggests
competitors

direct

monetary

pricing

benefits

to

distribution

intermediaries, i.e. distributors, direct dealers, dealers, and finally to

the customers. Which clearly identifies the different requirements that
customers look to be satisfied and at what prices. These different
requirements can then be used to develop the alternative strategies that
need to be implemented, to better access the segments and tune the
product offers to suit the customer requirements and to the level of
competition.
The main objectives of conducting this project report The Study of
Marketing strategy adopted by Daikin air-conditioning at Lucknow
are following :-

To know the effect of advertisement strategy adopted by Daikin air

conditioning india on consumers.
To know the perception of the consumer towards Daikin's advertising.
To know brand recall of Daikin.
To analyze the effectiveness of present marketing strategies of Daikin.

42

SCOPE
This report will help:
. Consumers- The report can be of great help to any prospective
buyer of an air

conditioner. The report will help him to have a look

at the various players in the market and what each one of them has to
offer to the consumer. The consumer can directly refer to the analysis
of the print advertisements that will help him to identify what each
brand has to offer to its consumer. The consumer can also have a look
at the market standings of each brand with respect to the sales in the
current year.
. Students-The report can be very useful to the students in
understanding the concept of branding and brand positioning as it
provides an insight to these concepts. It is important for the students to
know the changing trends in the market, as they are the ones who are
going to be part of the industry and will have to apply their knowledge
to carve out a niche for themselves and their companies in the market.

43

They can also have a look at the various aspects that govern this evergrowing industry.
. Executives The report can be of prime importance to the
executives working in the industry. The report is also based on some
inputs provided by the consumers that will help the personnel to know
what people think about their brands and what are their expectations
from this product. Executives can learn from the positioning of
DAIKIN and have a look at the advertising strategies being followed
by the various players in the market. Also some suggestions have been
offered in lieu of the analysis done in this report. The suggestions can
be implemented if they gel with the management of the concerned
brands.

CHAPTER :III
RESEARCH
METHODOLOGY
44

RESEARCH DESIGN
A research design specifies the methods and procedures for conducting
a particular study.

Research design is the plan, structure and strategy of investigation

conceived so as to obtain answers to research questions and to control
variance.

Types of Research Design

Research design have been classified in different ways, such as
Exploratory Research Design
Descriptive Research Design
Casual research Design

45

Descriptive Research Design:-

Descriptive research studies are those studies which are concerned with
described the characteristics of particular individual. In descriptive as
well as in diagnostic studies, the researcher must find be able to
definite clearly, what he wants to measure and must find adequate
methods for measuring it along with a clear cut definition of
population he wants to study. Since the aim is to obtain complete and
accurate information in the said studies, the procedure to be used must
be carefully planned. The research design must make enough provision
for protection against bias and must maximize reliability, with due
concern for the economical completion of the research study.

I have choosen descriptive research descriptive research design which

is well structured. The objectives of such is to answer the who, what,
when and how of the subject under investigation.

Descriptive studies can be divided in to two broad categories cross

sectional and longitudinal.

So, here I have choosen a cross sectional study which is concerned

with a sample of elements from a given population. Cross sectional
studies are two types Field Studies
Survey

46

I have taken survey research because a major strength of survey

research is its wide scope. Detailed information can be obtained from a
sample of a large population. Besides, it is obvious that a sample
survey needs less time than a census inquiry.

SAMPLE DESIGN

To carry out the study-

Market Area Lucknow

Sample Size 200 Respondents

Are chosen so that it could give a fair response to achieve our

objectives and also could be finished within stimulated time limit

Type of Sample Design

The type of sampling that was carried out was probability

(convenience) Sampling due to limited resources available.

47

In non probability sampling, I have choosen random sampling.

Because this was best sampling method to do market survey. On other
aspect, to cover all consumers in Lucknow was easy task.

DATA COLLECTION METHODS:

After the research problem, we have to identify and select which type
of data is to research. At this stage; we have to organize a field survey
to collect the data. One of the important tools for conducting market
research is the availability of necessary and useful data.
Primary data: For primary data collection, we have to plan the
following four important aspects.
Sampling
Research Instrument
Secondary Data: The Companys profile, journals and various
literature studies are important sources of secondary data.
Data analysis and interpretation
1.Questionnaires
2.Pie chart and Bar chart
Questionnaires:

48

This is the most popular tool for the data collection. A questionnaire
contains question that the researcher wishes to ask his respondents
which is always guided by the objective of the survey.
Pie chart:
This is very useful diagram to represent data, which are divided into a
number of categories. This diagram consists of a circle of divided into
a number of sectors, which are proportional to the values they
represent. The total value is represented by the full create. The diagram
bar chart can make comparison among the various components or
between a part and a whole of data.
Bar chart:
This is another way of representing data graphically. As the name
implies, it consist of a number of whispered bar, which originate from a
common base line and are equal widths. The lengths of the bards are
proportional to the value they represent.
Preparation of report:
The report was based on the analysis and presented with the findings
and suggestions. The sample of the questionnaires is attached with the
report itself.
Sampling Methodology:
Details of the sampling methodology, used in questionnaire.
No. of questions in questionnaires for Customers:
No. of Customers interviewed:

49

15
200

Sample unit:
Dealers, Employees, Professionals,
Businessmen, House wife,
Working women, Students

Primary Data
This report has used personal interviewing where primary data
could be directly collected from respondents. The desired information
was secured using Questionnaire. At times researcher also asked
questions as to why the respondent has chosen AC of a particular
company or what made him feel about that choice. Researcher was
keen to ensure that the respondent was taking interest while filling the
questionnaire. This ensured collection of unbiased and accurate data.
To know the brand awareness, consumer perception about Daikin
India Pvt. Ltd. and their satisfaction level, the consumer personal
survey was undertaken which was based on non-disguised structure
questionnaire.
The following are the heads, which were given prominence during the
primary data collection.

Information on the display of Daikin A.C.s vis--vis competition:

50

Under this head the objective was to understand the display allocation
for air conditioners in the outlets and also making a note of the shelf
space and the window display space allocated to each of the brands.
Also, making a note of how many Daikin units are on display and what
is the strength of the competitors. The main focus when considering the
competitors was on L.G., Samsung, O-General, Hitachi, Carrier,
Godrej, Blue Star and others including Videocon, Kenstar, Onida
Whirlpool and National.
Display and use of support material:
The support material in the case is Carton Display, Poster, Sticker,
Dangler, Leaflet, Dealer Certificate, Working Window Display, Glow
Signs and stands. The objective here is to verify whether all the support
material is in place. How much support is given to the various brands
at each outlet? The objective here is to check the effectiveness of the
support material in increasing the brand visibility, awareness and in
addition there would be a study of the various promotional activities by
the competition to woo the customers and success rates of these
promotional activities.
Information

on

the

performance

of

the

Demonstrators/Salesperson:
Under this head the focus will be on the activities carried out by the
demonstrators/Salesperson on the shop floor. Also, there will be rating
of the demonstrators on three aspects- 1) Communication skills 2)
Technical Knowledge and3) Enthusiasm shown. Apart from this there
will also be a study of which brand the demonstrators/salespersons are
pushing, what they have to say about Daikin. There will the top
preference of demonstrators from every outlet which will give an idea
of who is pushing what and what are the most talked about positives
and negatives of Hitachi.
51

Cleanliness of the displayed product:

A damaged or unkempt display unit will create a bad impression of the
brand. Also, the approach to the unit on display has to be tidy and easy
in addition to the clean surroundings of the display unit to serve the
purpose. As a result the condition in which the display units are is also
one of the objectives of the project.
Prominence given to Daikin Air Conditioners vis--vis competitors:
For a brand to sell there is a lot of nitty-gritty that goes into it like the
prominence given to a brand. This can be adjudged by the location of
display on the shop floor, the lighting, the space provided around
where the product is centred, on shelves the level at which the display
unit is kept governs the visibility. All these factors combine together to
Dealers Level Activities:
Dealers are the main part for any product that can create and damage
the image of a product. So this project also includes the study at dealer
level which includes the points like; which kind of Daikin AC is doing
well in the market, what are the issues which they are facing from
product and company side, also what are the suggestions and
recommendation from their side to increase the sales of the products.
Daikin Ltd. is one of the major players in
the highly competitive A.C. market today with the market share of 15
%, which is overall second in the market today. This project primarily
aims to understand the marketing strategy adopted by the company at
Dealer level & Customers Level.
Secondary Data
In this report the use of secondary data relating to Daikin Air
conditioning India Pvt. Ltd. have collected following information about
52

various range of air conditioners, the company has, the technology

being used by company, their marketing strategies & information about
the competitors . All this information has been collected from the
company

website www. Daikinac.com, various internet search

engines as Google, yahoo and various business magazines such as

Business India, Advertising & Marketing, Annual report of Daikin Air
conditioning India Pvt. Ltd. etc.

CHAPTER :IV
DATA ANALYSIS AND
INTERPRETATION

53

Table 1 : Gender Classification of Respondents

PERCENTAGE

GENDER
Male

RESPONDENTS
136

Female

64

32%

200

100%

TOTAL

54

68%

Gende r Class ification

136
140
120
100
Respondents

64

80
60
40
20
0
Male

Female
sex

ANALYSIS:

Out of 200 respondents, 64 are male and 136 are female.

Table 2 : Age Wise Classification of Respondents

AGE
GRO
UP

MA
LE

MA
LE
(%)

55

FEM
ALE

FEM
ALE
(%)

15 to

26

25

19.1
2

50

25 to

36.7

36

35

10

35 to

26.4

14

45

45 to

6.25

30

46.88

24

37.50

9.37

64

100%

7.35

55

10.2

55

and
abov
e
136

TOT

100
%

AL

Age Wis e Class ification

50
50
45
36

40
35
30

30
26
24
Male Respondents

25

Female Respondents

20

14

15

10
6

10

5
0
15-25

25-35

35-45
Age Groups

56

45-55

55-above

ANALYSIS:

26 Male and 4 female respondents lie in the year group of 15 to 25.

50 male and 30 female respondents lie in the year group of 25 to 35.
36 male and 24 female respondents lie in the year group of 35 to 45.
40 male and 6 female respondents lie in the year group of 45 to 55.
44 male and no female respondents lie in the year group of 55 and
above.

Table 3 : Users /Non user Of DAIKIN Products

CATEGOR
Y

RESPONDENTS

PERCENTAGE

User

44

22%

Non User

156

78%

TOTAL

200

100%

57

Use rs of LG'S Hom e Products

156

160
140
120
Respondents

100
80
44
60
40
20
0
Users

Non-Users
Category

ANALYSIS:

22% (44 respondents) are user of DAIKINs products.

Rests 78% (156 respondents) are non user of DAIKINs products.

Table 4 : Source of Information

SOURCES

RESPONDEN

PERCENTAG

TS

Advertisement

158

79%

Family member

14

7%

Friend/relative/neighb

28

14%

or

Other source
TOTAL

200
58

100%

Source s of Inform ation

158
160

140

120

100
Respondents

80

60
28

40
14
20

0
Advertisements

Family Members

Friends/Relatives/Neighbours

0
Others Sources

Sources

ANALYSIS:

Most of the respondents (79%) come to know about DAIKIN by the

Advertisement.

Second largest source of information are relatives/friends/ neighbors.

Third information sources are family members.
Table 5 : Most Influencing Features of Ads
FEATURE
Message/concept

RESPONDENTS
12

PERCENTAGE
6%

Logo/slogan

36

18%

Picturisation

28

14%

Overall

124

62%

59

TOTAL

200

100%

M ost Influe ncing Fe atue rs of Ads

140

120

100

80

Respondents

60

40

20

0
Concepts/Message

Logo/Slogan

Picturisation

Overall

Features

ANALYSIS:

124 respondents thinks overall Ad is influencing them.

36 respondents thinks, Logo/Slogan is the second largest influencing
feature in the Ad.

28 respondents are influenced by Picturisation of the Ad and

12 respondents are influenced by the message of the Ad.

Table 6 : Awareness of DAIKIN Ads

CATEGORY
Aware

RESPONDENTS
184

Non aware

16

60

PERCENTAGE
92%
8%

200

TOTAL

100%

Aw are nes s of LG's Ads

184
200
180
160
140
Respondents

120
100
80
60

16
40
20
0
Aware

Non-Aware
Category

ANALYSIS:
184 respondents have seen the DAIKINs ad.
While rest of the respondents have never seen/ not remembered at the
time of survey.

Table 7 : Recall of DAIKIN

RECALL

RESPONDENTS

PERCENTAGE

44

22%

Message

74

37%

Presentation of

70

35%

12

6%

FACTORE
Logo/slogan

ad

61

Model/celebrity

200

TOTAL

100%

Re call of LG

74
80

70

70
60
44
50
Respondents

40
30

12

20
10
0
Logo/Slogan

Message

Presentation of ads

Model & Celebrity

Recall Factors

ANALYSIS:
44 respondents have responded that It is easy to remember DAIKIN
logo/Slogan.
On the part of Message there are 74 respondents in favoring.
The presentation of ad suits more to 70 respondents.
While rest of the respondents remembered the Model/Celebrity.
Table 8 : Impact of DAIKINs Ad
CATEGORY
Impressive

RESPONDENTS
36

Satisfaction

112

56%

Unsatisfactor

52

26%

62

PERCENTAGE
18%

TOTAL

200

100%

Im pacts of LG's Ad
120

112

100

80

60

Respondents

52

36

40

20

0
Impressive

Satisfactory

Unsatisfactory

Category

ANALYSIS:

36 respondents think that the DAIKINs ads are impressive.

112 respondents favor it as satisfactory.
While rest of respondents (52) are unsatisfied with DAIKIN ad strategy.

Table 9 : Effective Media to Giving an Ad

SOURCE OF
MEDIA

RESPONDENT

PERCENTAG

63

Television

134

67%

Radio

30

15%

Newspaper

16

8%

magazine

18

9%

Banner/hoardin

1%

200

100%

TOTAL

Effective M e dia
134
140
120
100
80
Respondents

60
30
40
16

18

20

0
Television

Radio

Newspaper

Magazines

Banners/Hoardings

Source of Media

ANALYSIS:
134 respondents seek that ACS is the best medium to go through Ad.
While in against of it 30 are favoring Radio.
Newspaper also has 16 respondents in their favor.
Rest of the respondents favor to Magazine (18) and Banner/Hoarding
(2).
Table 10 : Perception about DAIKIN
CATEGORY

RESPONDENT
64

PERCENTAGE

S
Economical

Costly

64

32%

Neither

136

68%

200

100%

economical nor
costly
TOTAL

Perce rption about LG

136
140

120

100
64
Respondents

80

60

40

20

0
Economical

Costly

Neither Economical nor Costly

Category

ANALYSIS:
64 of the respondents seek that the DAIKIN Product is Costly.
While 136 of the respondents seek it as Mid ranged product.
Most surprisingly, none of the respondents seek it as Economical
product.

65

Table 11 : Reflection of Product Profile by The Ads

DEGREE OF

RESPONDENT

REFLECTION

PERCENTAGE

Yes

148

74%

No

52

26%

TOTAL

200

100%

Re fle ction of Product Profile by the ads

148
160
140
120
Respondents

100
80

52

60
40
20
0
Yes

No
Degree of Reflection

ANALYSIS:

52 respondents are in favoring that the ad doesnt reflect the true value
or information.
Rest of the 148 respondents denies the above respondents view.

66

Table 12 : Perception about DAIKINs Ad Strategy

CATEGORY
Very good &

RESPONDENTS
16

PERCENTAGE
8%

46

23%

84

42%

54

27%

200

100%

promising
Good &
promising
Good but need
alteration
Need complete
alteration
TOTAL

Perce ption about LG's ad strategy

84
90
80
54

70
46

60
50

Respondents

40
16

30
20
10
0

Very Good & Promising

Good & Promising

Good But need Alteration

Need Complete Alteration

Category

ANALYSIS:
84 respondents think there is some need to change DAIKINs ad
strategy.
54 seeks for a complete change in that.
While 62(16 + 46) respondents says it as very good / good and
promising.

67

FINDINGS
According to A Study of Advertising Strategy of the Indian Corporate
World, I have found following facts:-

On the basis of primary data, we can say that 22% products of DAIKIN
are existing in the houses.

Most of the household are using the DAIKINs Acs.

Television is the most striking media for Advertising.

Logo/slogan is the main part, which makes an effective advertisement.

The slogan of DAIKIN is not so remind able by the consumers.

If we measure the awareness of DAIKIN ad, it is 92% (according to

survey).

The advertisement of DAIKIN needs some modification in it.

According to report 32% respondents think that DAIKINs brands are

costly.

Samsung and Videocon are the best competitors in the same segment.

68

CHAPTER:V

CONCLUSIONS,
SUGGESTIONS AND
LIMITATIONS OF THE
STUDY

69

CONCLUSION

Daikin is the largest single source for air-conditioning equipment in India.

Daikin is India's largest and most preferred air-conditioning and commercial

refrigeration company.

Through its strategic long-term tie-ups with key and critical auxiliary

manufacturers, Daikin provides its customers many benefits.

The brands vision is to deliver excitement to the consumers, by providing

comfort at its best.

Complete control over core components & technology.

The company has strong potential to grow & that through greater

innovations.

In addition to corporate sector the company has the option to step into the

local households by understanding their psychology.

Daikin is India's largest central air-conditioning company.

In short it can be said that the company is still growing by making constant

efforts.

70

LIMITATIONS
Some of the dealers as well as the customers were not
forthcoming with information as they thought it to be a waste of time.
Some customers were notable to respond due to lack of awareness.

1) A number of dealers were biased towards a particular brand

which was giving them better returns.
2) Some of the shop owners were not available so, contactable person
was not able to present a fair view.
3) Respondents lack of time to give information and their casual
attitude was a big hindrance in the study.
4) The dealers were biased by some recent experiences which they had
with a particular distributor regarding the service or distribution.

RECOMMENDATIONS
71

 In the coming years competition will intensify more, so companies will have to
fight hard to woo the customers. Crucial role facilitates price control. In other
words, lower down its cost of production.

Company should improve there after sales service & should go for warranties for
long durations.

Company should also come up with the new schemes for the customers. This will
help in attracting more and more prospects.

It was found that most customers owning ACs were interested in an exchange
offer. So, company can also consider exchange offer scheme to beef up its sales.

Electronic media has a very effective reach in each and every potential household,
but Daikin is not using this media. So Daikin should stress on electronic media to
beef up its sales.

The Advertisement should be such that customer develops an emotional

attachment with the product.

Company should come out with 0% Finance Scheme. Due to this scheme more
and more prospects will enter into the customer base of Daikin.

72

 The product must be available at most of the places keeping in mind that the
distribution cost should remain minimum.

Last but not the least the company should introduce their consumer electronics
products. Such as Television and washing machines.

73

BIBLIOGRAPHY

BIBLIOGRAPHY
74

BOOKS REFERRED:
Kotler, Phillip (2004)
Marketing Management, Eleventh Edition (New Delhi: Prentice Hall of
India)
Kothari, C.R (1999)
Research Methodology (Delhi: Global Business press)
S.L. Gupta and V.V. Ratna (2004)
Advertising and Sales Promotion Management, First Edition (New Delhi:
Sultan Chand & Sons)

MAGAZINES/ JOURNALS:
Advertising and Marketing.
India Today.
Indian Journal of Management Volume xxxv (March 2011)
Survey of Indian Industries The Hindu (2010)

INTERNET SEARCH:

www.Daikinindia.com.
www.encyclopedia.com.
www.wikipedia.com
www.scribd.com

75

Annexure

QUESTIONNAIRE

76

PROJECT TOPIC :- A Study of Marketing Strategies of the

Daikin air conditioning.

RESPONDENT PROFILE
Name:Address:Occupation:-

Sex:-

Male

Age Group:-

15 to 25 [

],

25 to 35 [

45 to55 [

],

55 and above

Annual Income Group:-

],

Female [ ]

],35 to 45 [

up to Rs. 60,000

Rs.60,000 to Rs.1,20,000

Rs.1,20,000 to Rs. 2,00,000

Rs.2,00,000 and above

Q. 1 Are you user of Daikin Home Product?

Yes

],

No

Q. 2 If yes, Which Product are you Using?

AC

Oil Chilling units

77

Chemicals

Hydraulic Equipment [

Q. 3 By which Medium you come to know about Daikin ?

Advertisement

Family Member

Friends/Relative/Neighbor

Other Source

Q. 4 Which advertisement feature influenced you most in a particular Ad?

Concept/Message

Logo/Slogan

Picturisation

Overall

Q. 5 Have you seen any Daikin ad?

Yes

],

No

Q. 6 What makes you recall Daikin ?

Logo/Slogan

Message

Presentation of Ad

Model/Celebrity

78

Q. 7 What do you like of the advertisement of Daikin ?

Impressive

],

Unsatisfactory

Satisfactory

Q. 8 What do you think about the most striking media to advertise Daikin ?
Television

],

Radio

Internet

],

Newspaper

Banner/Hoardings

],

Magazine

Q. 9 Based on the price range what impression do you carry of Daikin product?
Economical

],

Costly

Neither Economical nor Costly

[
[

Q. 10 Did you went to go purchase Daikin product after watching the ad and ended
up buying other product, influence by the specific reason? Mention it.
Yes

],

No

Q. 11 Did you went to go exclusive Daikin Showroom?

79

Yes

],

No

Very good & Promising

Good & Promising

Good but Need Alteration

Need complete Alteration

Q. 12 Does the advertisement reflect actual product profile?

Yes

],

No

Q. 13 The advertising strategy of Daikin is

Q. 14 Which competitors ad do you like against Daikin ?

______________________________________________________________

Q. 15 Do you want to give any suggestion for Daikin advertisement?

80

______________________________________________________________
______________________________________________________________
______________________________________________________________

81