Beruflich Dokumente
Kultur Dokumente
Report
On
CONSUMER ELECTRONICS
(Air Conditioning Industry)
Titled
Comparative Analysis of Products & Services of Air Conditioner
Industry Competitors in Indian market
BY
1-Ravikant Trivedi-1506260033
2-Biswajit Baral-1506260009
3-Promila Soreng-1506260025
4-Sumit Purty-1506260047
ACKNOWLEDGEMENT
This project has been possible due to the support of several wonderful
individuals. I would like to thank many unknown individuals, with whom I
interacted. All of them with their due cooperation and motivation made the
completion of this project successful. I would like to thank them all.
Last but not the least I am highly obliged to my friends and colleagues for
their help and support. The learning during the project was immense and
valuable.
CONTENT
Evolution of Electronics.
In Indian over View.
Evolution Of Air Condition
Market Drives, challenges, and Trends.
Key Vender In Market
Major Player
Leader
Challengers
Followers
Global Air Conditioner Market Research Report.
Geographical Distribution of Top Air conditioner manufacturing Countries
and their brands.
Composition of various AC products.
MARKET ANALYSIS
FINANCE ANALYSIS.
Balance sheet
Revenue of last five years.
Ratio analysis
Trends in AC industry
A study of consumer buying behavior.
Findings.
Bibliography.
Meaning
Of Electronics'.
Definition of electronics: Electronics is the branch of science that deals with the study of flow and
control of electrons (electricity) and the study of their behavior and effects in vacuums, gases, and
semiconductors, and with devices using such electrons. This control of electrons is accomplished by
devices that resist, carry, select, steer, switch, store, manipulate, and exploit the electron.
Some of the basic electrical units and definitions are mentioned below: -
DC: Direct Current. The electrons flow in one direction only. Current flow is from
negative to positive, although it is often more convenient to think of it as from positive to
negative. This is sometimes referred to as "conventional" current as opposed to electron
flow.
radios
televisions
cameras
stereos
computers
semiconductors
Consumer electronics:Consumer electronics are products intended for everyday use, most
often in entertainment, communications and office productivity. Radio broadcasting in the early 20th
century brought the first major consumer product, the broadcast receiver. Later products
include personal computers, telephones, MP3 players, audio equipment, televisions, calculators,
GPS automotive electronics, digital cameras and players and recorders using video media such
as DVDs, VCRs or camcorders. Increasingly these products have become based on digital
technologies, and have largely merged with the computer industry in what is increasingly referred to
as the consumerization of information technology. The CEA (Consumer Electronics Association)
estimated the value of 2007 consumer electronics sales at US$150 billion.[1]
Effects on the environment
Electrical waste contains hazardous but also valuable and scarce materials and up to 60 elements can
be found in complex electronics.
The United States and China are the world leaders in producing electronic waste, each tossing away
about 3 million tons each year.[2] China also remains a major e-waste dumping ground for developed
countries.[2] The UNEP estimate that the amount of e-waste being produced - including mobile
phones and computers - could rise by as much as 500 percent over the next decade in
some developing countries, such as India.[3]
Further information: Electronic waste:Increasing environmental awareness has led to changes in electronics design to reduce or eliminate
toxic materials and to reduce energy consumption. The Restriction of Hazardous Substances
Directive (RoHS) and Waste Electrical and Electronic Equipment Directive (WEEE) were released
by the European Commission in 2002.
In Times Square. For Years Afterward, People Piled Into Air-conditioned Movie
Theaters On Hot Summer Days, Giving Rise To The Summer Blockbuster.
It's Not An Exaggeration To Say That Carrier's Innovation Shaped 20 th-century
America. In The 1930s, Air Conditioning Spread To Department Stores, Rail Cars,
And Offices, Sending Workers' Summer Productivity Soaring. Until Then, Central
Courtyards And Wide-open Windows Had Offered The Only Relief. Residential
Air Conditioning Was Slower To Take Hold:
2. LG Air Conditioner
LGs AC is smart cooler with plasmaster cyclotron filter,virus allergy
filter,triple filter,antibacterial filter. The AC from LG is not only stylish but also
smart air conditioner providing cool and clean air with self cleansing coils besides
removing dust. This is the second Best Leading Air Conditioner Brands in India.
It creates specific temperature in the room, the temperature can be set according to
the needs of the user. LG is well known for its digital products an technologies.
LGs AC are arrived in wide varieties ranging from Window, split, floor standing
to cassette, network solution & ducted ACs.
manufacturing and digital equipments. This is one of the Best Leading Air
Conditioner Brands in India. Samsung AC is of three types- split, window, and floor
standing. There are wide variety of products from Samsung ranging from mobile
phones, LCD TVs, cameras, home appliances like washing machines,
refrigerators, ACs to
computer
peripherals.
products which are synonymous with luxury, comfort, style, and leading-edge
technology. You can choose from split and window air conditioners. This is one
among the top air conditioner brands in India. They offer most energy efficient air
conditioners in both split and window AC categories. Their ACs packed with
special anti-bacterial koukin filter ensures that assures you only breathe fresh and
pure air. Special auto climate technology is another feature for your
comfort. Window Air Conditioners uses revolutionary Twin Motor Technology.
You can choose the small chassis window AC which is best
suitable for multi storied small apartments with easy installation. Split AC comes in
inverter Split AC models and Window Star rated Split AC models. Cassette ACs,
Ducted ACS, Self-contained ACs is also available for business needs.
Market Capitalization And Their Head
Quaters
SL.NO
COMPANY NAME
MARKET
CAPITALIZATION
1.
VOLTAS
9041.1 CR
2.
LG
2800 CR
YEOUIDO-DONG,SEOUL.
3.
SAMSUNG
2500 CR
SEOCHOGU,SEOUL SOUTH
KOREA
4.
BLUE STAR
3000 CR
MUMBAI,india
5.
HITACHI
11,000 CR
CHIYADO, JAPAN
HEAD QUATER
1. Voltas
Challenger of AC industry.
1)
2)
3)
4)
Lg
Samsung
Blue Star
Hitachi
Followers in AC industry.
1)
2)
3)
4)
5)
6)
7)
8)
Daikin
Videocon
Godrej
Panasonic
Lloyd
Haier
Carrier
Whir Fool
JAPAN
CHINA
INDIA
KOREAN
USA
Daikin
Carrier
Voltas
Lg
Sharp
Hitachi
Media
Videocon
Samsung
Whirl fool
Panasonic
Haier
Godrej
Toshiba
Onida
The Tatas-owned Voltas has taken the top slot in the Indian airconditioner
(AC) market, overtaking Korean white goods giant LG that has dominated
the business for over a decade.
Trane
Latest data from market research firm GfK Nielsen Retail Audit showed that
Voltas had a shade over 20% of the pie in September, based on sales at
multi-brand and exclusive brand outlets. This was marginally ahead of LG's
market share of 19.9%.
This is perhaps the first time in recent years Voltas has taken the pole
position across the AC segment.However, for the first half of the financial
year (April-September 2014-15), LG continues to lead with a share of
20.5%.
Voltas follows with a share of 18.9%.Samsung, the other big player in the
AC market, is a distant third. The brand, which has exited the windows AC
category, had a share of 12.8% in September and finished the first half with
a share of 13.7%, the data showed.
This would perhaps be one of the few consumer categories where either of
the Korean chaebols are not at the top, considering their popularity among
Indian buyers.
The AC market accounts for sales of 3.2 million units annually but has been
witnessing tepid growth over the last two years. The penetration of ACs
stands at 3-4% in the Indian market.
LG said it is working towards protecting its market share leadership."Today
there are more than 50 brands trying to sell their ACs (more than 70 brands
are registered for star-rating labelling at Bureau of Energy Efficiency).
With multiple players joining the product
categories, our primary objective remains to sustain our leadership position
and strengthen our business share across channels," said Saurabh Baisakhia,
business
head
for
ACs
at
LG
India.
The worrying part for the Korean MNCs is also the fact that Voltas already
leads in the big-volume multi-brand outlet, which is believed to account for
80-85% of AC industry volumes.
Pradeep Bakshi, president and COO of Voltas, said the company's increased
penetration in the country has helped the brand capture higher volumes and
presence. "This has been an outcome of our ever-increasing reach in
distribution, a distinct brand positioning based on consumer insights... and
investments in after-sales service."
Samsung said its exit from the window AC category may have brought
down its overall share in the segment. "Samsung exited the window AC
category around the end of 2011 and decided to operate only in the split AC
segment as that was a growing market. Since then, our market share in the
split AC segment has only been growing," a company spokesperson said.
Apart from increasing its reach across the country, Voltas has also been
aggressive in attracting top talent and poaching from rivals.
Those brought on board include Deba Ghoshal (ex-LG) who heads
marketing and sales (modern trade, commercial), Jogesh Jaitly (ex-Samsung
and LG) who heads sales (general trade), Rahul Jain (ex-LG) who heads
service, and M K Sharma (ex-LG and Samsung) who heads manufacturing.
SL NO.
PRODUCT INCLUDED
PERCENTAGE (%)
24,45,000
61 %
6,55,000
16.7 %
Windows ACs
6,05,000
15 %
Inverter ACs
2,00,000
5%
Cassettes ACs
80,000
2%
15,000
0.3 %
Voltas Is A Part Of The Tata Group. The Managing Director Is Mr. Sanjay
Johri.
Voltas Limited Is An Engineering, HVAC, Air Conditioning, And
Refrigeration Company Based In Mumbai, India. It Is The Largest Air
Conditioning Brand In India. It Makes Equipment For Industries In Areas
Such As Heating, Ventilation And Air Conditioning, Refrigeration,
Construction Equipment, Materials Handling, Water Management, Building
Management Systems, Indoor Air Quality And Chemicals. It Also Provides
Machinery Solutions & Servicing In Textile And Mining Field. The Textile
Division Is Active From The Very Onset Of The Company.
The Company Was Incorporated On 6 September 1954 At Mumbai. The
Company Was Promoted In 1954 By M/S. Volkart Brothers And Tatas
Voltas Is A Part Of The Tata Group. The Managing Director Is Mr. Sanjay
Johri. Its Shares Are Traded On The Bombay Stock Exchange Under
Symbol 500575 With A Turnover Of INR 5364.35 Crore In 2011-12.
Voltas Provided The Air-Conditioning For The World's Biggest Ocean Liner,
The RMS Queen Mary 2 And Also The World's Tallest Building, The Burj
Khalifa.[7]
The Voltas Company Has Large Service Network. Voltas Has Its Own
Service Center In Each Major City.
In 2014, Voltas Was Ranked 39th Among India's Most Trusted Brands
According To The Brand Trust Report, A Study Conducted By Trust
Research Advisory.[8]
LG COMPANY.
LG Electronics Inc. (Korean: LG ) is a South Korean
multinational electronics company headquartered in Yeouido-dong, Seoul, and a
member of the LG Group, employing 83,000 people working in 119 local
subsidiaries worldwide. With 2013 global sales of USD 53.1 billion (KRW 58.14
trillion), the company operates its business through five divisions: Home
Entertainment, Mobile Communications, Home Appliance, Air Conditioning and
Energy Solution, and Vehicle Components.[2] CEO of LG Electronics is Bon-joon
Koo, who assumed the role of Vice Chairman of LG Electronics on 1 October 2010.
In 2011, LG Electronics was the world's second-largest television manufacturer.[3]
SAMSUNG COMPANY.
Samsung Korean pronunciation is a South Korean multinational
conglomerate company headquartered in Samsung Town, Seoul. It comprises
numerous subsidiaries and affiliated businesses, most of them united under the
Samsung brand, and are the largest South Korean chaebol (business conglomerate).
Samsung was founded by Lee Byung-chul in 1938 as a trading
company. Over the next three decades, the group diversified into areas including
food processing, textiles, insurance, securities and retail. Samsung entered the
electronics industry in the late 1960s and the construction and shipbuilding
industries in the mid-1970s; these areas would drive its subsequent growth.
Following Lee's death in 1987, Samsung was separated into four business groups
Samsung Group, Shinsegae Group, CJ Group and Hansol Group. Since 1990s,
Samsung has increasingly globalized its activities and electronics, particularly
mobile phones and semiconductors, have become its most important source of
income.
Notable Samsung industrial subsidiaries include Samsung Electronics (the world's
largest information technology company measured by 2012 revenues, and 4th in
market value), Samsung Heavy Industries (the world's 2nd-largest shipbuilder
measured by 2010 revenues), and Samsung Engineering and Samsung C&T
(respectively the world's 13th and 36th-largest construction companies). Other
notable subsidiaries include Samsung Life Insurance (the world's 14th-largest life
insurance company), Samsung Everland (operator of Everland Resort, the oldest
theme park in South Korea) and Cheil Worldwide (the world's 15th-largest
advertising agency measured by 2012 revenues).
Samsung has a powerful influence on South Korea's economic development,
politics, media and culture and has been a major driving force behind the "Miracle
on the Han River". Its affiliate companies produce around a fifth of South Korea's
total exports.[11] Samsung's revenue was equal to 17% of South Korea's $1,082
billion GDP.
BLUE STAR COMPANY.
Blue Star InfoTech Ltd, based in Mumbai, Bangalore, Santa Clara, New
Jersey, London, Singapore, Malaysia, is a global provider of product development
services, enterprise solutions and services, travel technology solutions and testing
services with operations in North America, Europe, UK, and India. It is part of the
US$700M Blue Star Group. They have service delivery centers in the United
States, United Kingdom, India, Singapore and Malaysia. Blue Star Infotech is
ranked in the list of 2013 Global Services 100 companies as a leader Global IT and
Business Process Outsourcing.
It was founded 1983, when the International Software Division of Blue Star was
founded at SEEPZ, Mumbai in partnership with HP. In March 1990, Blue Star
Infotech acquired a 100% owned subsidiary in the USA called USIN International
Inc, later renamed Blue Star Infotech America, Inc. In 1998, Blue Star Infotech set
up a 100% owned subsidiary in the United Kingdom. Blue Star Infotech has been
ranked 12th amongst the top fifteen global R&D service providers.
Microsoft awarded Blue Star Infotech with the "Best Dynamics
Partner of the Year" in India for financial year 2006 & 2008. They Named to the
Microsoft Dynamics President's Club for the year 2006 and 2008. Effective January
1, 2016 Blue Star Infotech Limited has sold its Information Technology business to
the Infogain group of Companies. This marks the exit of Blue Star from this
business after 33 years.
HITACHI COMPANY
Hitachi, Ltd. (Japanese pronunciation is a Japanese multinational
conglomerate company headquartered in Chiyoda, Tokyo, Japan. It is the parent of
the Hitachi Group (Hitachi Gurpu) and forms part of the DKB Group of
companies. Hitachi is a highly diversified company that operates eleven business
segments: Information & Telecommunication Systems, Social Infrastructure, High
Functional Materials & Components, Financial Services, Power Systems,
Electronic Systems & Equipment, Automotive Systems, Railway & Urban Systems,
Digital Media & Consumer Products, Construction Machinery and Other
Components & Systems.
Hitachi is listed on the Tokyo Stock Exchange and is a constituent of the Nikkei
225 and TOPIX indices. It is ranked 38th in the 2012 Fortune Global 500 and 129th
in the 2012 Forbes Global 2000. On January 21, 2014, numerous tech articles
around the globe published findings from the cloud storage provider Back blaze
that Hitachi hard disks are the most reliable among prominent hard disk
manufactures.
COMPANY NAME
VOLTAS
LG
SAMSUNG
BLUE STAR
HITACHI
VISION
Driving Value
Engineering.
MISSION
Through
Smart
We
Will Offer Our Customer
Appropriate
Engineering
Solutions In The Form Of
Products, Projects.
The
Mission
That
Hitachi
COMPANY NAME
PUNCH LINE
VOLTAS
LG
SAMSUNG
Ab Garmi Chumantar
BLUE STAR
Breathe Easy
HITACHI
For Those
Perfection
Who
Seek
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 All Weather Smart ACs are
becoming increasingly popular day by day. Voltas is popular in India as well
as abroad alike. The price range of Voltas is Rs. 25,000 Rs. 55,000. Some
of the most popular Voltas AC models are mentioned below: Voltas All
Weather AC.
Voltas Jade- 5 Star (Y Series)
Voltas Zenith- 5 Star (Ya Series)
Voltas Classic- 5 Star (Yu Series)
Voltas Magna- 5 Star (Y Series)
LG company ACs price.
MARKET ANALYSIS.
Advantage.
Porters Five Forces Analysis Looks At Five Key Areas Mainly:
1.
2.
3.
4.
5.
Ove
rvie
The entry of competitors (how easy or difficult is it for new entrants to
w of
competitive forces:
STRENGTH
WEAKNESS
OPERTUNITIES
THREAT
WEAKNESS
OPPORTUNITIES
THREATS
STP & USP comparing between VOLTAS & LG: Voltas company STP:SEGMENTING
TARGETING
POSITIONING
LG company STP:SEGMENTING
TARGETING
POSITIONING
USP compare between VOLTAS & LG air condition company: VOLTAS company USP:-
USP
LG company USP:-
USP
about a new product or service. It can also help define the markets
segments, splitting off into different clusters of businesses where are
able to recognise key attributes that differentiate them from one another
(Higher Class, Amount of Restaurants etc.). Within the clusters found in
Perceptual Maps of entire industries, a business can classify its
potential partners or possible businesses to merge with. Reason being,
the clustering of brands signifies the similarity in businesses, meaning
they have corresponding attributes[1]. It can also be used to help keep
track of how a new product is being viewed in a specific market. For
instance, the introduction of a new smartphone. Its important to see
that the way a business is marketing its product is not only successful,
but successful in a manner that aligns with the businesss overarching
goal for positioning.
BCG matrix analysis:-
The Boston Consulting groups product portfolio matrix (BCG) is designed to help
with long-term strategic planning, to help a business consider growth opportunities
by reviewing its portfolio of products to decide where to invest, to discontinue or
develop products.
The Matrix is divided into 4 quadrants derived on market growth and relative
market share, as shown in the diagram below.
4. Cash cows: Products in low growth markets with high market share
Dogs: The usual marketing advice is to remove any dogs from your product
portfolio as they are a drain on resources.However, some can generate
ongoing revenue with little cost.
For example, in the automotive sector, when a car line ends, there is still a
need for spare parts. As SAAB ceased trading and producing new cars, a
whole business has emerged providing SAAB parts.
Question marks: Named this, as its not known if they will become a star
or drop into the dog quadrant. These products often require significant
investment to push them into the star quadrant. The challenge is that a lot of
investment may be required to get a return. For example, Rovio, creators of
the very successful Angry Birds game has developed many other games you
may not have heard of. Computer games companies often develop hundreds
of games before gaining one successful game. Its not always easy to spot
the future star and this can result in potentially wasted funds.
Cash cows: Milk these products as much as possible without killing the
cow!. Often mature, well established products. The company Procter &
Gamble which manufactures Pampers nappies to Lynx deodorants has often
been described as a cash cow company.
ANSOFF MATRIX analysis:The Ansoff Matrix is a strategic planning tool that provides a framework to help
executives, senior managers, and marketers devise strategies for future growth. [1][2] It is
named after Russian American Igor Ansoff, who came up with the concept.
Ansoff, in his 1957 paper, provided a definition for product-market strategy as "a joint
statement of a product line and the corresponding set of missions which the products are
designed to fulfill".[3] He describes four growth alternatives:
economies of scale if it increases output; (iii) The new market is not too different from the
one it has experience of; (iv) The buyers in the market are intrinsically profitable.
FINANCE ANALYSIS
250
226.76
232.63
225.75
202.27
200
Revenue(in crores)
150
100
50
0
2010-11
2011-12
2012-13
2013-14
2014-15
RATIO ANALYSIS.
Ratio analysis involves to interpreting financial relationship
between the two related accounting figures, express in
mathematically is known as financial ratio.
In financial analysis ratios are used as for evaluating the
financial position and performance of a firm.
Dept equity ratio
It a measure of the relative claims of creditors and owners
against the firms assets. It includes share capital ,reserves
and undistributed profit excluding past allumulated lesses
and deferred expenditures.
There is a need to strike a proper balance between the use of
dept and equity.
Current ratio
It measures the firms shot-term solvency.
Current Asset
Current assets include all those assets which are cash
1.
2.
3.
4.
5.
Marketable securities
Stock debtors
Prepaid expenses
Bills receivable
Bank & cash
Current liabilities
Current liabilities are those obligations maturing within a
priod of one year.
It also indicates the availability of current assets in rupees of
current liabilities.
1. Creditors
2. Bills Paybles
3. Income tax ability
4. Long term debt maturing in current year.
Operating profit ratio
(10-11)
(11-12)
(12-13)
(13-14)
(14-15)
7%
13 %
14 %
12 %
3%
2.
(10-11)
(11-12)
(12-13)
(13-14)
(14-15)
1.69 %
1.71 %
1.74 %
1.69 %
1.80 %
3.
OPERATING PROFIT RATIO=OPERATING
PROFIT/NET SALES*100
(14-15)
8%
TRENDS IN AC INDUSTRY.
Year.
Customer With Existing Window Acs Find It Easier To
Replace Their Units With Window Acs Than With Other
Type . They Also Easier To Install.
SEGMENT :-
Findings
The overall study of consumer electronics (air condition)
market research in Indian market there is large no of
company competitive each other through their product and
services.
Also we find the consumer preference in buying a product
in market they focus over the all company product,
services and his price.
And changing his buying behavior to choose a right
product for consumption.
BIBLIOGRPHY