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A REPORT

ON

“A STUDY OF DEALER & CONSUMER


PERCEPTIONS ABOUT WHITE GOODS
OFFERED BY PHILIPS - ELECTROLUX”

BY

SONALI MOHILE

PHILIPS ELECTRONICS INDIA LIMITED, NAGPUR


TITLE PAGE
A REPORT

ON

“A STUDY OF DEALER & CONSUMER PERCEPTION ABOUT


WHITE GOODS OFFERED BY PHILIPS & ELECTROLUX”

BY

SONALI MOHILE

FOR

PHILIPS ELECTRONICS INDIA LIMITED, NAGPUR

A Report submitted in partial fulfillment of MBA program of

UNIVERSITY.

Submitted to

Company Guide: Faculty Guide:

Mr.Syyed Moeed Prof. Aniruddha Bodhankar

Marketing Head DAIMSR, Nagpur.

Philips Electronics India limited, Nagpur


Date of submission:

AUTHORIZATION
Dr.Ambedkar Institute of Management Studies & Research,
Nagpur.

Authorization

This is to certify that this Bonafide record of project work entitled

“A STUDY OF DEALER & CONSUMER PERCEPTION ABOUT


WHITE GOODS OFFERED BY PHILIPS & ELECTROLUX”

Carried Out by

Sonali.V. Mohile

Of the SIP during the academic year 2009-2011 in partial fulfillment of the
requirement for the award of the degree of MBA offered by DAIMSR.

Prof. Vivek Pimplapure

Faculty Guide

DAIMSR, Nagpur.
PHILIPS ELECTRONICS INDIA LIMITED, NAGPUR

ACKNOWLEDGEMENTS
ACKNOWLEDGEMENTS

A Successful project involves time & efforts of many individuals. The


project “A STUDY OF DEALER & CONSUMER PERCEPTION ABOUT
WHITE GOODS OFFERED BY PHILIPS & ELECTROLUX” also involves
a very important contribution by many individuals who have put in a
very significant effort in completion of this project.

I take this opportunity to thank Mr.Syyed Moeed Marketing


Head, Philips Electronics India Limited, Nagpur for giving this
opportunity to do my project with the organization. I also thank him for
his valuable inputs & time contributed towards project and my value
addition.

I also take this opportunity to acknowledge all the inputs & help
provided by my project guide Prof. Aniruddha Bodhankar

DAIMSR, Nagpur. His contribution motivation has prompted me to


strive to achieve the objective as per the schedule.

Miss. Sonali V Mohile


TABLE OF CONTENTS
TABLE OF CONTENTS
 Authorization

 Acknowledgement

 Executive Summary

1. Introduction

1.1 Introduction to White Goods Industry

1.2 Introduction of Philips & Electrolux Company

1.3 Purpose of the project report

1.4 Objectives of the project report

1.5 Scope of study

1.6 Limitations of the study

1.7 Research Methodology

2. Introduction to Company
3. Importance of Effective Marketing
Strategies

3.1 Importance of Perception in Marketing

3.2 Data Collection of various products of Philips &


Electrolux

4. Findings

a] Data Analysis & Interpretation

b] Conclusion & Recommendation

5. Annexure

6. References
EXECUTIVE SUMMARY
Executive Summary
The final report describes the work undertaken to attain the objectives of
the project and analyze the various aspects related to the project.

“A Study of Dealer & Consumer Perception about White Goods Offered By


Philips & Electrolux”

This report deals with the following two main objectives:-

1. To study Dealers Perception towards various products [white goods]


offered by Philips & Electrolux Company

2. To study Consumer Perception towards various products [white


goods] offered by Philips & Electrolux Company

 The prime objective is to gather information about all the


different types of White goods offered by Philips & Electrolux
Company, the various features of these products the various
segments that are targeted, the benefits derived by the
consumers and the pros & cons of the products.
 The secondary objective is to find the awareness among the
dealer & customer and their perception about these products by
approaching them directly & filing questionnaires.

 The methodology used to gather the required data has been


primary research. The research design used is Descriptive
research, the research instrument is Questionnaire, and the
Sampling Methods used are based on Judgmental Sampling. The
data regarding the various products have been collected through
secondary sources.

 Finally an analysis is done on the products of the company and an


attempt has been made to find the perception of the customers &
recommendation are provided on the behalf of the analysis of
observations. The work done has been analyzed and the major findings
and conclusion have been discussed at the end of the report.
INTRODUCTION

INTRODUCTION

1.1 Introduction to White Goods:


1.2 Introduction of Philips & Electrolux
Company

It is subsidiary of the Netherlands-based Royal Philips


Electronic
It is more focused company with global leadership positions in
key markets of Healthcare, Lighting and Consumer Lifestyle.

Brand promise is “sense and simplicity”.

Headquarter is in the Netherlands.

It employs approximately 121,000 employees in more than 60


countries worldwide.

Philips has been operating in India for over 75 years.

It employs over 4,500 employees around the country.

 The Electrolux Group is a Swedish manufacturer of home and


professional appliances and is the world's 2nd largest appliance
manufacturer.

 Hans Staberg -president and CEO

 Employee - 50,630

 Electrolux products include refrigerators, dishwashers,


washing machines, vacuum cleaners and cook tops
1.3 Purpose of the project report:

The project deals with Study of Dealer & Consumer Perception about
White Goods i.e. Consumer Electronics& Home appliances [CTV, LCD,
LED, Washing Machine, Air condenser, Fridge, Microwave Owen, etc]
Offered by Philips & Electrolux and the Perception & acceptance of these
products by the consumers. The main purpose of this project report is to
provide the company with first hand information about the perception the
dealer & consumer have against the products that the company offers the
advantage they derive, any suggestions & feedback.

1.4 Objectives of the project report:

The two main objectives of the project are:

1. To study Dealers Perception towards various products [white goods] offered by


Philips & Electrolux Company

2. To study Consumer Perception towards various products [white goods] offered


by Philips & Electrolux Company

The prime objective is to gather information about all the different types of White
goods offered by Philips & Electrolux Company, the various features of these
products the various segments that are targeted, the benefits derived by the
consumers and the pros & cons of the products.
The secondary objective is to find the awareness among the dealer & customer and
their perception about these products by approaching them directly & filing
questionnaires.

On the basis of the above points and strategies discussed the factors that the
consumers look for buying these products will be analyzed, a study of the
perception that the dealer & consumer have regarding the products of PE
Electronics Ltd & future expectations will be made. Finally on the basis of analysis
suggestions & recommendation will be provided as well as strategies that the
company can adopt in order to fulfill customer expectations.

1.5 Scope of study:

A big boom has been observed in the Fast Moving Consumer Durables
in recent time. A large number of new players have entered the market
and are eying to gain market share in this rapidly improving market.
White goods

The project report deals with issues that are important from the point of
view of Company’s senior management and promoters of company
which is dealing in highly niche segment. It is essential that strategic
decisions for the company are based on accurate information. This
report will help him in making prudent changes and improving the
current state.

There is a famous philosophy “we can’t manage what we can’t measure


and we can’t improve what we can’t manage” hence it is very important
to understand various parameters that help to measure the value of
company and analysis of present will help in rectifying the problems
with the company and projections will help the company to meet its
vision and planned growth strategies.
The result of the survey will help the company to know whether the
public is aware about their products or not and perception of people
regarding the products the company is offering to them. The results will
also help the company to trace the loop holes and then take corrective
measures to rectify them and fulfill customer expectations.

The Project prepared on the basis of data and information collected will
help the company in

a. Knowing the awareness of their products amongst the dealers &


consumers

b. The perception & willingness to accept these products

c. The competitive strategies that the company can adopt

d. The various products offered by the other players in the market

e. The future expectations of the dealers & consumers

f. Suggestions & feedback of new as well as existing customers

Hence, this project is an attempt to analyze that is related to the above


discussed issues.

This is limited study which takes into consideration the respondents 220
people. This data can be exported to take decision for promotional
strategy across the industry. It is rapidly changing and evolving sector.
People are only beginning to wake up to its vast possibilities. A study
like this an attempt to guide the future of the industry based on current
trends.

To facilitate and provide all the useful information of the study, the
company, the consumer durables and also provide marketing ways,
methods of PE Electronics Ltd.

1.6 Limitations of the study:

A project is always carried out under strict circumstances and with


certain constraints. These constraints could be either in the data , data
collection or in the methodology of the research conducted. The most
important step which should be taken is to find out these constraints or
limitations so as to help the use the research with higher amount of
certainty and in the right direction.

The Limitations of the project are:-


1. Procedural Limitations

All the data that is collected generally limited by the data adopted. In the
current research, the sole method of data collection being questionnaire,
it limits the data to the extent of data generation available through that
method.

2. Geographical Limitations

The research is carried out with dealers & consumers , who are based in
Nagpur only, so it can’t be generalized and are not applicable to other
parts.

3. Temporal or Time Limitations

The study will be conducted during the period of July2010 to August


2010 and the data and analysis pertaining to the information will be
available during that period of study only.

4. Situational Error

This may arise due to situational factors affecting the consumer


response. So, it is not avoidable and it is up to the consumer how he
react or response at that particular moment.

5. Sample Size
The study takes into account a sample of 220, which may not be a good
indicator of the population, but the study includes extensive interaction
with the customers.

1.7 Research Methodology:

 Research Design:

It is a master plan specifying the methods & procedures for collecting &
analyzing the needed information. It is a framework that plans the action for
the research project. The objectives of the study determined during the early
stages of the research are included in the design to ensure that the
information collected is appropriate for solving the problem.
 Descriptive Research:

Research Method that is used for this research is Survey

 Survey:
MAIN TEXT

2. Introduction to Company:
FINDINGS

Major Findings and Data


Interpretation

A] Dealers Survey

Data has been collected from 90 Dealers directly through the use of
questionnaire and the same has been presented and interpreted question
wise.
 What is Dealer’s Perception about Philips Brand?

27%

S.No Perception about No of % of


Philips people people

1 25

27%
Excellent
2 Good 46 51%
3 14 16%
Average
4 5 6%
Poor

It has been observed that Philips is old brand & well known for its
quality. Dealer’s acknowledged 51% approximately 46 dealers out of
90 Philips as a Good Brand.

• Positive Perception of Dealer towards Philips Brand

 Philips is old brand & well known for its quality.

 Philips is best in audio.

 Products are durable & service issues are rare.

 Consumer Perception towards Philips is good

• Negative Perception of Dealer towards Philips Brand


 Look of the products are not stylish.

 Product not flash on TV & other media so mostly customers are


unaware about new products as compare to other brands.

 Lack of potential demand.

 Schemes & offers are rare.

 Currently not in demand.

 Customers mind set is just like “Philips is not a modern brand”.

 What is Dealer’s Perception about Electrolux


Brand?
 It has been observed that Electrolux is old brand & well known
for its Products durability. Dealer’s acknowledged 32%
approximately 29 dealers out of 90 Electrolux as a Good Brand
as well as 32% dealers suggested Electrolux as a Poor Brand.

S.No Perception No of % of
about Electrolux people people
1 Excellent 8 9%
2 Good 29 32%
3 Average 24 27%
4 Poor 29 32%
• Positive Perception of Dealer towards Electrolux Brand
 Electrolux is well known for refrigerator.

 It has good brand image.

 People know the brand. \

• Negative Perception of Dealer towards Electrolux Brand

 Service is poor.

 Currently not in demand.

 Spare parts are not easily available.

 Product range is not available.

 Identified by the name KELVINATOR.

• Percentage of Product Potential towards White goods?

A] LCD
84%

S.No Dealers No of people % of people


Perception
[90]
towards
LCD

1 Yes 76 84%

2 No 14 16%
48% Nil

22” & 32” size is currently in demand so dealer interested to sale this size mostly.
76% dealer s prefers this size only.

 LCD 22” 38%

 LCD 24” 21%

 LCD 32” 38%


B] LED
S.No Dealers No of people % of people
Perception
[90]
towards LED

1 Yes 32 35%

2 No 58 65%
 LED 22” 27%

 LED 24” 11%

 LED 32” 47%


 Customers not still completely aware about LED TV. In most
 LED
shops 40”found
we not 13% LED in their display. Dealer prefers 32” TV
for selling.
C] HOME APPLIANCES

S.No Dealers No of people % of people


Perception
[90]
towards
Home
Appliances

1 Yes 86 95%

2 No 4 5%

Category of Home Appliances


 DC 42%

 FF 23%

 MWO 10%

 AC 8%

 WM 17%

 Most of the dealers want to sell Refrigerators of Electrolux &


particularly DC. If Electrolux will produce competitive goods
along with good marketing then it can capture good market
share, because it is not totally unknown for customers.

• What is the Best Media of Marketing of White


Good s?

 According to the whole survey each type of media plays


important role to promote the brand at his place.
 Generally TV ad aware more customers about the product.

S.No Marketing Media No of % of


people people
[90]
39 41%

1 Corporate Advertisement

2 Electronic Media 35 36%

3 WOM 14 15%

4 In-shop Branding 3 2%

5 Shared Adds 6 5%

• But WOM is most effective media of marketing because;


when customer hears anything from other people they
trust them easily.
• Shared ad satisfies the dealer so they promote particular
brand in their shop.
• In shop branding also very important because; when
customers see pamphlets; display; & other things they
know something about products and customers think that
brand is not out of market.
• What kind of Margin dealers expect from company?

13%
28%

28%
5%
9% 17%

S.No Margin expected by Dealers No of % of


people [90] people

1 0 - 5% 12 13%
2 5 - 10% 25 28%

3 10 - 15% 15 17%

4 15 - 20% 8 95

5 More than 20% 5 5%

6 Others 25 28%

 After overall analysis of dealer’s survey, we conclude that


mostly dealer wants margin in between 6-10%. Margin is not
constant for all; some dealer earns more, so some dealer
suggested that company should put MOP. Then all dealer sell at
same price.

• What kind of Retention dealers expect from


company?
18%
29%

22%

13%

S.No Retention expected by No of % of


Dealers people people
[90]

1 0 - 5% 16 18%

2 5 - 10% 20 22%

3 10 - 15% 12 13%

4 15 - 20% 10 11%
5 More than 20% 7 7%

6 Others 26 29%

 Retention also varying from dealer to dealer.

 MOP is best way to satisfy to all dealers.

 Most dealer wants retention in between 4-6%.

• What are the Best Ideas Dealers suggest after sales service?

S.No Services No of people % of people


[90]

1 Within 24 hrs 77 85%

2 Within 48 hrs 13 15%

 According to the dealers survey we conclude that customer want


own company’s service centre in city. Service should be prompt
that means within 24 hrs in city after customer call, within 48
hrs outside city & within a week in rural area.

• What are the suggestions given by Dealer for


improvement?
S.No Suggestions from Dealers No of people % of
[200] people

1 Improve Service 45 50%

2 Service Center 12 13%

3 Quality 8 9%

4 Defective Pieces 5 6%

5 Advertising 20 22%
 Service & quality should be prompt.
 Strong marketing required.
 Brand should be endorsed through any big celebrity.
 Product range must be there.
 There should be MOP i.e. Market Operating Price.
 Company should give GIFTS & SCHEMES to the customers as
well as dealers.
 Company should concentrate on LOCAL MEDIA also.
 In shop branding also important to promote brand.
 There should be good margin for dealers so they promote our
brand.
 Spare parts should be available easily.
 Service centre must be within city.
B] Consumer Survey

Data has been collected from 130 Consumers directly through the use of
questionnaire and the same has been presented and interpreted question
wise.

 What is Consumer’s Perception about Philips Brand?


S.No Consumer Perception No of % of people
about Philips people

1 14 10%
Excellent
2 96 73%
Good
3 4 3%
Average
4 19 14%
Poor
• Positive Perception of Consumer towards Philips Brand

 Philips is old brand & well known for its quality.

 Philips is best in audio.

 Products are durable & service issues are rare.

 Out of 130 people, 96 acknowledged Philips as a good brand

• Negative Perception of Consumer towards Philips Brand


 Product not flash on TV & other media so mostly customers are
unaware about new products

 Service centers are away from city

 Out of 130, 19 was unknown from the brand& 4 accepted


Philips as poor brand

 Customers mind set is just like “Philips is not a modern brand”.


• What is Dealer’s Perception about Electrolux Brand?

S.No Consumer Perception No of % of people


about Electrolux people

1 8 6%
Excellent
2 58 45%
Good
3 18 14%
Average
4 46 35%
Poor
• Positive Perception of Consumer towards Electrolux Brand

 Electrolux is well known for refrigerator.

 It has good brand image.

 Out of 130 customer, 58 acknowledged Electrolux as a Good


Brand

 Products were good in features

• Negative Perception of Consumer towards Electrolux Brand

 Service is poor.

 Currently not in demand.

 Spare parts are not easily available.

 Product range is not available.

 Out of 130 people, 46 were unknown of the brand & 18


accepted Electrolux as poor brand.

• Which Brand Consumer prefer in Home Appliances


if the prices of following brands are equal?
S.No Consumer Perception No of % of people
about Electrolux people

Samsung
1 3 2%

LG
2 28 22%

Whirlpool
3 48 37%

Godrej
4 25 20%
Electrolux
5 19 15%

Others [Videocon,
6 6 4%
Panasonic]

 According to survey, customer preference towards the home


appliances brand were

• Samsung

• LG

• Whirlpool

• Godrej

• Others [Videocon, Panasonic]

• Electrolux

 Customer were more influenced towards Samsung products if


the prize of all brands are same because of –

• Wide Product range

• Excellent quality

• Good Services

• Attractive looks of the product


• Which Brand Consumer prefer in Consumer Electronics
if the prices of following brands are equal?

 According to survey, Customer preference towards the


Consumer Electronics brand were

• Sony

• Samsung

• LG
• Philips

• Others [Videocon, Sansui]

• Onida

• Panasonic

S.No Consumer No of % of
Perception about people people
Electrolux

Philips
1 10 7%

LG
2 19 15%

Samsung
3 27 21%

Sony
4 53 41%

Onida
8 6%

Panasonic
5 4 3%
Others[Videocon,
6 9 7%
Sansui]

 Customer were more influenced towards Sony products if the


prize of all brands are same because of –

o Excellent quality

o Good Services

o Attractive looks of the product

o Wide Product range

o Good Brand Image

o Always on good position in Marketing also


 While purchasing a product which shop consumer prefer?

S.No Shop Preference No of people % of people

[130]

1 Exclusive Showroom 30 23%

2 Multi-brand Showroom 100 77%


 Customer prefer mostly Multi-brand showrooms to purchase the
products

 Wide variety of brands & To know Product extensions

 Compare the prices, services & features of each brand

• What is the major consideration while purchasing


the product?
S.No Consumer Perception while No of people % of people
purchasing the product
Price
1
26 20%

Features
2
52 40%

Services
3
39 30%

Offer
4
13 10%

• Which Media of Marketing influence Consumer for a


particular brand?

50%
40%

8%
2%

ConsumerPerception
 According to the whole survey each type of
media plays important role to promote the
brand at his place.
 Generally TV ad aware more customers about
the product.

S.N Media of No of % of
o Marketing: peopl people
Influence e
Decision
[130]

TV
1
81 50%
Advertisemen
t
Word of Mouth
2
76 40%

News Paper
3
17 8%

Hording /
4
8 2%
Posters
 Out of 130 people, 65 acknowledged TV
Advertisement as best media for marketing
the product
 Even Brand Ambassador is best way to
convey our product details to the target
customers
 But WOM is most effective media of
marketing because; when customer hears
anything from other people they trust them
easily.
 Shared ad satisfies the dealer so they
promote particular brand in their shop.

 What are the suggestions given by Dealer for


improvement?
• Strong marketing required.
• Brand should be endorsed through any big
celebrity.
• Service & quality should be prompt
S.N Media of No of % of
o Marketing: people people
Influence
[130]
Decision

Marketing
1
42 31%

Improve Service &


2
Quality
39 30%

Prices
3
20 15%

Service Center
4
15 13%

No
5
10 11%

• Product range must be there.


• Company should give GIFTS & SCHEMES to
the customers as well as dealers.
• Company should concentrate on LOCAL
MEDIA also.

 Service and spare parts should be made easily available


 Improve customer relation & provide schemes to the customers

Conclusion
Marketing is not always what it seems to be. In the world of marketing, Perception
is often more important than reality – and the preconceived notions of potential &
current clients carry far more weight than what might, in scientific terms, be
described as the ‘true’ picture.

This is important because you have better product, better service &
better price -- in objective reality – one may find that the potential clients just don’t
seem to care, or refuse to get it. Their frame of reference and perspective is defined
by other values.

This report deals with the following two main objectives:-

1. To study Dealers Perception towards various products [white goods]


offered by Philips & Electrolux Company

2. To study Consumer Perception towards various products [white goods]

offered by Philips & Electrolux Company

Data regarding this Product [white goods] have been collected &
the important features & benefits have been described as above.
RECOMMENDATIONS

Recommendations & Suggestions

On the basis of the data collected following are the recommendations &
suggestions that the company can implement to attract & retain customers
ANNEXURE
Sample copy of questionnaire

Questionnaire
Declaration: Theinformation collected by you will be
purely used for academic research purpose only.
DEALER SURVEY
1) What is your perception about Philips & Electrolux as a brand?

2) What are the Pending Issues?

3) What kind of margin do you expect?

 LCD CTV  Home Appliance

4) What kind of retention do you expect?

5) What is the best media of marketing?

6) What is the best idea do you suggest for after sales service?

7) Which product Category do you want to sell in Philips?

LCD -

 22”  24”  32”  40”  46/55”

LED –

 22”  24”  32”  40”  46/55”

8) Which Product category do you want to sell in Electrolux?

 DC  FF  MWO  AC  WM
9) Which is the highest selling Product Category at your shop?

LCD -

 22”  24”  32”  40”  46/55”

LED –

 22”  24”  32”  40”  46/55”

Home Appliances -

 DC  FF  MWO  AC  WM

10) Any suggestion do you want to give for improvement?

CONSUMER SURVEY
1. What do you think about Philips TV/LCD/LED?

 Excellent  Poor

 Good  Unknown

2. What do you think about Electrolux Appliances?

 Excellent  Poor

 Good  Unknown

3. If the prices of following brands are equal which brand do you prefer in Home
Appliances & why?

 Electrolux  Samsung  Godrej

 L.G  Whirlpool

Reason: - ________________________________________________

4. If the prices of following brands are equal which brand do you prefer in
Consumer Electronics & why?
 Philips  Samsung  Sony

 L.G  Panasonic

Reason: - ________________________________________________

5. While purchasing Products which shop you prefer?

 Exclusive Showroom

 Multi-Brand Showroom

6. What is the major consideration while purchasing a product?

 Price  Features

 Service  Offer

7. Which of following influence your selection of a particular brand?

 TV Advertisement  Word of Mouth

 News Paper ADD  Hoarding / Poster

8. Do you prefer those brands which a dealer suggests you?

 Yes  No

9. Any Suggestions?
REFERENCES
Books:-

 Zikmund W G; 2003. Business Research methods

 Kotler P., Armstrong, 2006. Principles of Marketing

 Kotler P., Keller, 2006. Marketing Management.

Websites:-

 www..com

 www..com

 www..com