Beruflich Dokumente
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A STUDY ON EFFECT OF BRAND IMAGE ON CONSUMERS TASTE AND PREFERENCES IN CONSUMER DURABLE SECTOR
In Partial Fulfillment for the award of the degree PGDM (2010-12)
DECLARATION
I student of Institute of Management
Studies Batch (20010-12) declare that every part of the Project Report A Study on effect of brand image on Consumers taste and preferences in Consumer Durable Sector that I have submitted is original.
ACKNOWLEDGEMENT
The making of any report calls for contribution and cooperation from many others, besides the individual alone. It is the result of meticulous efforts put in by the many minds that contribute to the final report formation. I duly acknowledge my gratitude to each one of them. During the perseverance of this project, I was supported by different people, whose names if not mentioned would be inconsiderate on my part. I would like to extend my sincere gratitude and appreciation to my project guide and faculty Prof. Vijendra dhyani, for extending valuable guidance and encouragement from time to time, without which it would not have been possible to undertake and complete this project. The Project was an enriching experience and taught me various critical factors that influence Consumer Durable Industry. Additionally, this project helped me in understanding that how actual research is conducted and the various challenges that researches face while conducting a research. I would also like to thank my friends and different people for their support and patience in filling up the questionnaires and hence in the successful completion of the project. Above all I would like to thank the divine intervention who backed me at all the time and provided me enough motivation to accomplish this voyage.
Preface
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas 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, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. 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 were 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, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers 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 well acknowledged brands, and hold over wide distribution network. However, the penetration Level of the consumer durables is still low in India. Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into Indian market dethroning the Indian players and dominating Indian market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and WASHING MACHINES. 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 market with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth of the industry. The rising income levels double-income families and consumer awareness were the main growth drivers of the industries.
EXECUTIVE SUMMARY
The goal of marketing research is to provide the facts and direction that
managers need to make their more important marketing decisions. Marketing research covers a wider range of activities. Marketing research is having following steps Determine research design, Identify data types and sources, Design data collection forms and questionnaires, Determine sample plan and size, Collect the data, Analyze and interpret the data, Prepare the research report In this report, we have done a market research on consumer durables, and come with some suggestion, limitation, and conclusion on the basis of marketing research work As far is summary part is concern, in research project we have selected market survey on Consumer durables. Consumer durable industry, we have to do market survey for electronic products preference toward, so we were collected primary and secondary data for research methodology and follow up with the analysis part.
Literature review:
The Indian retail market, which is the fifth largest retail destination globally, has been ranked as the most attractive emerging market for investment in the retail sector by AT Kearney's eighth annual Global Retail Development Index (GRDI), in 2009. As per a study conducted by the Indian Council for Research on International Economic Relations (ICRIER), the retail sector is expected to contribute to 22 per cent of India's GDP by 2010. With rising consumer demand and greater disposable income, the US$ 400 billion Indian retail sector is clocking an annual growth rate of 30 per cent. It is projected to grow to US$ 700 billion by 2010, according to a report by global consultancy Northbridge Capital. The organized business is expected to be 20 per cent of the total market by then. In 2008, the share of organized retail was 7.5 per cent or US$ 300 million of the total retail market. A McKinsey report, 'The rise of Indian Consumer Market', estimates that the Indian consumer market is likely to grow four times by 2025. Commercial real estate services company, CB Richard Ellis' findings state that India's retail market has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. India continues to be among the most attractive countries for global retailers. Foreign direct investment (FDI) inflows as on September 2009, in singlebrand retail trading, stood at approximately US$ 47.43 million, according to the Department of Industrial Policy and Promotion (DIPP). India's overall retail sector is expected to rise to US$ 833 billion by 2013 and to US$ 1.3 trillion by 2018, at a compound annual growth rate (CAGR) of 10 per cent. As a democratic country with high growth rates, consumer spending has risen sharply as the youth population (more than 33 percent of the country is below the age of 15) has seen a significant increase in its disposable income. Consumer spending rose an impressive 75 per cent in the past four years alone. Also, organized retail, which is pegged at around US$ 8.14 billion, is expected to grow at a CAGR of 40 per cent to touch US$ 107 billion by 2013.
The organized retail sector, which currently accounts for around 5 per cent of the Indian retail market, is all set to witness maximum number of large format malls and branded retail stores in South India, followed by North, West and the East in the next two years. Tier II cities like Noida, Amritsar, Kochi and Gurgaon, are emerging as the favored destinations for the retail Sector with their huge growth potential. Further, this sector is expected to invest around US$ 503.2 million in retail technology service solutions in the current financial year. This could go further up to US$ 1.26 billion in the next four to five years, at a CAGR of 40 per cent. Moreover, many new apparel brands such as Zara, the fashion label owned by Inditex SA of Spain, UK garment chain Topshop, the Marc Ecko clothing line promoted by the US entrepreneur of the same name and the Japanese casual wear brand Uniqlo are preparing to open outlets in India. Buoyed by improved consumer spending, sales of listed retailers increased by 12 per cent in the September 2009 quarter compared with the same period in 2008. Australia's Retail Food Group is planning to enter the Indian market in 2010. It has ambitious investment plans which aim to clock revenue of US$ 87 million from the country within five years from start of operations. British retail major Marks & Spencer (M&S) is looking at scaling up its India operations and plans to open at least 50 more outlets in the country over the next few years. Koutons Retail India plans to open 200 stores in FY11 in addition to its existing 1,400. Of the 200 stores, 100 would be family concept stores, which would include women and children's wear. Reliance Footprint, part of Reliance Retail, plans to spend US$ 86.62 million to add 100 outlets across the country in two years to sell branded footwear. It currently has 16 outlets.
Retail chain Suvidhaa Infoserve plans to open 1,000-1,200 new outlets every month across the country and is eyeing a 100,000 strong network in the next two to three years. At present, the Mumbai-based firm has 18,000 convenient neighbourhood stores called 'Suvidhaa Point' across the country in over 20 states and over 400 cities. Lifestyle International, part of the Dubai-based US$ 1.5 billion Landmark Group, plans to have over 50 stores across India by 2012 13. These will include 35 Lifestyle stores for retailing apparel, cosmetics and footwear, besides 15 Home Centres that sell home furnishing goods. Wills Lifestyle plans to expand its operations by opening 100 new stores in the next three years. It also plans to concentrate on online buyers. Pantaloon Retail India (PRIL) is planning to invest US$ 77.88 million this fiscal to add up to 2.4 million sq ft retail space at its existing operations. Pantaloon Retail is also looking to hive off its value retail chain, Big Bazaar, into a separate subsidiary, which may eventually go for an initial public offer (IPO). PRIL proposes to open 155 Big Bazaar stores by 2014, increasing its total network to 275 stores.
Objectives:
The research was aimed at studying the purchase pattern of consumers for consumer durable. To study the factors affecting purchase of consumer durables To study brand preference of consumers for consumer durable goods
To study brand preference of consumers towards organized & unorganized outlet for the consumer durable goods.
Research design:
Research design is descriptive in nature. Preference of people is analyzed and quantified to know the factors responsible for their preference. Further preference is quantified in terms of organized and unorganized retail formats.
Research instrument:
Structured questionnaire
Sampling plan:
Target population: Households of Ghaziabad Sampling unit: Households & People purchasing consumer durables from stores at the time of research Sampling method: convenience and Step out sampling Sample size: 100
Analytical tools:
Graphical presentation Hypothesis Weighted average
Industry Profile
higher and middle income categories will rise rapidly. There will also absolute reduction in the number of households in the low incomes. This will lift large number of households to income levels atwhich they can become purchasers of consumer durable products. Continuous economic growth and higher income levels will drive growth in volumes, any reduction in the duties will leads to lower down of the values and this will bring more customers for the durable products. The biggest attraction for MNCs is the growing Indian middle class (approx. 250 m). This market is characterized with low penetration levels. MNCs hold an edge over their Indian counterparts in terms of superior technology combined with a steady flow of capital, while domestic companies compete on the basis of their well-acknowledged brands, an extensive distribution network and an insight in local market conditions. The Indian middle class market of 250 million is the biggest attraction for the MNCs along with the level of the penetration of consumer durables in the India has more attracted Multinationals to the India, in the case of consumer durables penetration levels of TV is believed to the highest, and after that the penetration of the refrigerator comes. In the future, earnings will be driven by rising demand for consumer durables in general. As per the National Sample Survey Organization report of "Use of durable goods by Indian households", the per capita total expenditure on durable goods increased from Rs112.89 in 1987-88 to Rs148.02 in 1993-94. Similarly, NCAER estimates point to the fact that the number of households with monthly incomes above Rs 10,000 in metros and Rs 5,000 in non-metros is expected to rise from 22.7 million in 1995-96 to a huge 57.2 million in 2005-06. This will mean that firstly, there will be a perceptible shift towards branded products and secondly, the level of aspiration buying will increase.
more and more MNC are coming to India to target the huge middle class of the country. The competition is dependent upon the brand strength and distribution network. In other words, the advertising and marketing expenses play a vital role in competition. As a result of the increased competitive activity, the advertising and marketing costs as a percentage of operating income 10have increased over the years. This ratio for the industry has increased from 4.4 percent in 1993 to 6.7 percentage in 2000. However, the export prospects are least or minimal because indigenous manufacturers do not possess adequate brand equity or excellent product quality. There are even constraints like transportation due to poor infrastructure and relatively under developed markets in the neighboring countries.
Introduction:
The Consumer Durables industry consists of durable goods and appliances for domestic use such as televisions, refrigerators, air conditioners and washing machines. Instruments such as cell phones and kitchen appliances like microwave ovens were also included in this category. The sector has been witnessing significant growth in recent years, helped by several drivers such as the emerging retail boom, real estate and housing demand, greater disposable income and an overall increase in the level of affluence of a significant section of the population. Major international and local players such as BPL, Videocon, Voltas, Blue Star, MIRC Electronics, Titan, Whirlpool, etc. represent the industry. The consumer durables industry can be broadly classified into two segments: Consumer Electronics and Consumer Appliances. Consumer Appliances can be further categorized into Brown Goods and White Goods. The key product lines under each segment were as follows.
were shifting to the semi-urban and rural areas. The growth across product categories in different segments is assessed in the following sections.
Consumer Electronics:
The CTV production was 15.10 million units in 2007-08 and is expected to grow by at least 25 per cent. At the disaggregated level, conventional CTV volumes have been falling while flat TVs have grown strongly. Market sources indicate that most CTV majors have phased out conventional TVs and have been instead focusing more on flat TVs. The flat segment of 12CTVs now account for over60 per cent of the total domestic TV production and is likely to be around 65 per cent in 2007-08.High-end products such a s liquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 percent respectively in 200910 following a sharp decline in prices of these products and this trend is expected to continue. The audio/video player market has seen significant growth rates in the domestic market as prices have dropped. This trend is expected to continue through 2009- 2010, as competition is likely to intensify to scale and capture the mass market.
want better experience, services and ambience. This has led to the growth of shopping malls where shopping, entertainment and better facilities are all available under one roof. To a great extent the presence of heavy weight such as the pantaloons, big bazaar, croma , nilgiris etc has given a huge fillip to the growing market by not only selling products but also the experience. The Indian consumer are much more inclined to the organized sector. The rural Indian consumers are also showing signs of change. They have all the modern amenities at their home and their standard of living is fast improving. The rural households have earned huge money due to price rise in real estate. They are also shifting towards industrial and services sector, hence their purchasing power is increasing. It is reflected in their living standard and possession of all electronic gadgets and luxury cars. There is a stiff competition in the Indian market today and it has become a buyers market from sellers market. Customers are the ultimate beneficiary of the fierce competition in the market. Competition has reduced prices to a great extent and has forced the manufacturer to maintain product quality to sustain in the highly competitive market. Though in a small way internet and telemarketing have also caught the attention of the Indian customers. Dell. Amazon .com, etc have carved a good niche for them in the sector. The consumers today do not mind availing credit as when needed. So credit availability has become a key factor for determination of a buying a good. Consumers are also availing the information available on net through various forums and websites.
3) Companies not only aim to sell their products but also aim to provide
better after sales services to its consumers. For example companies have provisions to send their technicians to repair the cars struck at highways or other outer locations due to technical failure or in case of a mishap. This improves the companys credibility and helps to build its customer base. 4) Companies design their products on the basis of market segmentation so that they have products to suit every pocket and requirement.
5) Due to sharp growth in the communication sector, companies are
providing many schemes and plan to attract customers. For example mobile service providers provide lifetime option and free calls to other mobile users under a specific plan of the company.
6) Due to fierce competition in the electronics market and peoples
willingness to purchase hi-tech products the rates of LCD and plasma TVs have been slashed by 25%-30%. Through this strategy electronic companies received very good response from the consumers in the recent past and were able to build a considerable market for their products. 7) Indian consumers have developed a liking for foreign tours and holidays. This has led to development of many travel agencies that provide a planned foreign tour at a reasonable price. What is even more interesting is that the customer does not have to pay the amount in lump sum; instead, he has the facility to make the payment in monthly installments according to his convenience. 8) Consumers of India have developed a tendency to save travel time. For such consumers low fare or low cost carriers are available that provide air travel facility at a very affordable price.
9) Consumers of India want better housing facilities. The construction
companies are fulfilling this requirement of consumers by providing them luxurious houses, exquisite interiors, round the clock water and electricity supply, full time security, club house, gymnasium, etc. within the premises.
10) Indian consumers are increasingly becoming aware of the importance of health and hygiene. Hence companies are making products to suit their health like low calorie, low fat food. As far as hygiene is concerned companies have fully mechanized their plants to maintain hygiene and pack the food in such a way that it remains fresh for longer period of time and does not lose its nutritive value before consumption.
11)
The need for Internet is fast growing. To fulfill this need of consumers, mobile manufacturing companies are providing Internet access facility on mobile phones. This has revolutionized the communication sector and provided a means of communication that was never ever in anybodys dreams till a few year back.
12)
13) Indian consumers liking for credit is also increasing rapidly. Hence many financial institutions have come into existence in India and are flourishing. Banks have also become liberal in their loan and credit policies.
Currently, rural consumers purchase their durables from the nearest towns, leading to increased expenses due to transportation. Purchase necessarily done only during the harvest, festive and wedding seasons April to June and October to November in North India and October to February in the South, believed to be months `good for buying, should be converted to routine regular feature from the seasonal character. Rural India that accounts for nearly 70% of the total number of households, has a 2% penetration in case of refrigerators and 0.5% for washing machines, offers plenty of scope and opportunities for the white goods industry. The urban consumer durable market for products including TV is growing annually by 7 to 10 % whereas the rural market is zooming ahead at around 25 % annually. According to survey made by industry, the rural market is growing faster than the urban India now. The urban market is a replacement and up gradation market now. The other factor for surging demand for consumer goods is the phenomenal growth of media in India. The flurry of television channels and the rising penetration of cinemas will continue to spread awareness of products in the remotest of markets. The vigorous marketing efforts being made by the domestic majors will help the industry. The Internet being now used by the market functionaries that will lead to intelligence sales of the products. It will help to sustain the demand boom witnessed recently in this sector. The ability of imports to compete is set to rise. However, the effective duty protection is still quite high at about 35-40 per cent. So, a flood of imports is unlikely and would be rather need based. Reduction in import duties may significantly lower prices of products such as microwave ovens, whose market size is quite small in India. Otherwise, local manufacturing will continue to stay competitive. At the same time, there will be some positive benefits in the form of reduction in input costs. Washing machines and refrigerators will also benefit from lower input costs. According to a study by the McKinsey Global Institute (MGI), Indian incomes are likely to grow three-fold over the next two decades and India
will become the world's fifth-largest consumer market by 2025. In the given scenario, urban markets will continue to fuel the Indian economy for quite some time to come. Moreover, expenditure by the middle class accounts for the bulk of Indias urban consumer expenditure. About 61 per cent of total urban income comes from households that can be classified as middle class earning between US$ 1,493 and US$ 9,955 a year. Further, India is likely to see rapid urbanization, with around 45 per cent of Indians living in urban areas by 2050, up from 30 per cent in 2007-08, according to a study co-authored by National Council of Applied Economic Research's (NCAER) Rajesh Shukla and Future Capital Research's Roopa Purushothaman. According to a report by McKinsey, India's overall retail sector is likely to grow to US$ 419.93 billion by 2015. According to global real estate consultant, CB Richard Ellis, India has moved up to the 39th most preferred retail destination in the world in 2009, up from 44 last year. The turnover of the organized retail segment in India is pegged at around US$ 8.1 billion. It is expected to reach US$ 51 billion by 2010. Retail opportunity is slated to rise by about US$ 160 billion in India in five years. In urban India, modern retail is likely to grow from the current 9.6 per cent of total retail to 26 per cent in the next five years, as per Technopak Advisors The Indian consumer durables market seems to be relatively untouched by the economic slowdown. The consumer durable goods output witnessed a 2.5 per cent rise in durables output in the first quarter of 2009, according to a report by the Development Bank of Singapore (DBS). Colour televisions have seen an increase in sales, growing 2 per cent to 2.8 million units in January-March 2009, according to the figures released by ORG-GFK. Whirlpool is on the expansion mode and is targeting a 22 per cent share of the US$ 423.28 million washing machine market in India by the end of 2009, and is launching a range of new products with an investment of US$ 4 million for the same. Moreover, a large number of hi-technology durables are expected to flood the US$ 4.03 billion Indian durables market in 2009. Samsung, LG, Haier
and Videocon are among companies planning new product launches in the coming months
Major players:
The major players in the consumer durables industry, operating in different sectors such as air conditioners, washing machines, refrigerators & television include:
Samsung India:
Acquired digital leadership in India by introducing its digital ready televisions like the 40" LCD Projection TV, 43"Projection TV and the Plano series of Flat Colour televisions.
Toshiba India:
Toshiba India Private Limited (TIPL) is the wholly owned subsidiary of Japanese Electronics giant Toshiba Corporation and was incorporated in India on September 2001. Toshiba had a presence in India since 1985 and was represented in India through their Liaison Office.
Hitachi India:
Hitachi India Ltd (HIL) was established in June 1998 and engaged in marketing and sells a wide range of products ranging from Power and Industrial Systems, Industrial \Components & Equipment, Air Conditioning & Refrigeration Equipment to International Procurement of software, materials and components. Some of HILs product range includes Semiconductors and Display Components. It also supports the sale of Plasma TVs, LCD TVs, LCD Projectors, Smart Boards and DVD Camcorders.
Victor Company, better known as JVC. So focused is Onida on positioning itself on the premium, high-tech plank that it is even planning to push its own envelope on obsolescence, much like Intel has been doing in its own industry. The strategy is aimed at further broad basing the product offering of the company, which has largely dominated the top-end of the television market, across multiple market segments. Besides understanding the strategy adopted by different players, several other factors- industry growth, concentration and balance, corporate stakes, fixed cost, and product differences need to be analyzed to determine the extent of rivalry between the existing players.
Hot shine Appliances - U.P - Manufacturers of gas cookers & stoves &
electrical appliances, product range includes cooking ranges, steam irons, oven toaster and grillers.
Sony India - Details of product ranges from color TVs, hi-fi music
systems, video CDs, home theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, Wega T.V etc.
Sony World - Features wide ranges of products: car audios, handy cams,
digital cameras, VCD, LD, DVD players, cordless phones, Walkman, and disc mans, and Televisions.
L.G India - Details of product ranges from colour TVs, hi-fi music
systems, video CDs, home theatre systems, DVDs, portable audio systems, digital cameras, RMEG products, T.V etc. Features wide ranges of products: car audios, handy cams, digital cameras, VCD, LD, DVD players, Cdma mobiles, walkman, and disc mans, and Televisions.
reduction on import duty in the year 2005-06 has benefited many companies, such as Samsung, LG, and Sony. These companies import their premium end products from manufacturing facilities that are located outside India. Indian consumers are now replacing their existing appliances with frost-free refrigerators, split air conditioners, fully automatic washing machines, and color televisions (CTVs), which are boosting the sales in these categories. Some companies like Samsung Electronics Co. Ltd. and LG Electronics India Ltd. are now focusing on rural areas also. These companies are introducing gift schemes and providing easy finance to capture the consumer base in rural areas.
Growth in 2010-11
Consumer Durables Air Conditioner Refrigerator Microwave Ovens Washing Machines Color Televisions (CTVs) Black & White Televisions Clock Watch VCDs Consumer Electronics (Overall) Growth 20-25% 5-10% 25% 5-10% 15-20% 20% 10% 10% 30% 9%
Some Facts:
1. Bargaining power of suppliers in consumer durables sector is limited due to threat of imports and intense competition. 2. Some of the entry barriers in consumer durables sector are distribution network, capital, and ability to hire purchases. 3. Demand is seasonal and cyclical. 4. Competition among players is on the basis of difference in prices and well-acknowledged brands.
Marketing Strategies:
They studied closely and picked up the salient features of the Japanese manufacturing and made themselves an expert in that. Their planning is very meticulous on the execution of the job in hand. The Koreans never shown any bias against India. The Americans and Japanese took their brand equity for granted. The Koreans did not. As a result of this they didnt make any value judgments of the Indian customers and introduced contemporary products. This way they got their brand noticed. Both L.G and Samsung have consistently launched contemporary models-be it fuzzilogic washing machines, flat screen TVs or microwave ovens-in step with their launchglobally.
Further power was added to this strategy of dazzling Indians with
global products was their high advertising spends. L.G spent Rs 110 crores in advertising while Samsung spent Rs 80 crore in 2001. In 2003 L.G spent Rs 225 crores and Samsung Rs 100 Crores. Such high voltage advertising has made the Koreans the biggest spenders in their businesses, and they outspend competition by a factor of at least two. These spends have placed the Koreans in the class of some of the highest spenders in India such as Colgate, ITC, Dabur and Hindustan Lever. They are huge buyers of advertising so they exude through a lot of visible brand building. The Koreans have also started making a name for their ability to understand what customers want. They practice this shibboleth with unusual vigor. They figure out quickly and very well what the consumer wants. But the important part is they quickly adapt their strategies accordingly.
Koreans follow the principle of Feet marketing. That means even the higher officials roam about the market to give boost to dealers and also to gather the first hand information on the current market conditions. This helps in knowing the ground realities better which results in a better strategy.
The Koreans always think big and take risks. Thats why they have infused so investment, which is now bearing the fruits.
Players like Whirlpool and Electrolux that made a foray into consumer
electronics around the same time that L.G and Samsung did. They hedged bets by buying existing brands and capacities here (Kelvinator, Maharaja, Allwyn, and the like) while the Koreans built capacity from scratch and gives them an edge over the competitors. The Koreans want to outdo the Japanese. They dont start on a hunch. Their planning is meticulous. When they take up a job they take it very seriously. All Korean managers bring on board a monk like devotion to their task at hand. This ensures quick execution of the work. The Koreans believe that manufacturing is a key strength and thats why they eschew contract manufacturing and invest in their own manufacturing facilities around the globe. They have culture sensitive workshops to ensure that the Koreans and Indians work well together. They bundle one product with another so as to promote the weaker one backed by the established product. They have well-entrenched the consumers in India by sponsoring a number of premier events like cricket matches and others with a high TRP ratings. According to prof. R.R.Krishnan at center for East Asian Studies of
Jawaharlal Nehru University the insecurity element in the history of Korean comprising colonization, acquisition of their country in the past tends them to form a marketing strategy that requires best of them. Though the Koreans are making huge profits in India they have not fully presented themselves in India. Many business like chip manufacturing, humungous chemicals, energy business etc. which they are operating in other countries has not found its way to India. The reason being the instability and lack of infrastructure of India to support these businesses. This shows their marketing tactics and their inclination towards the prelaunch test that they conduct before induction of each product in India. The Koreans always do a prelaunch market survey unlike its Japanese or U.S counterparts who take their brand equity for granted. This research gives useful inputs to the Korean players and also times to adapt them for the new situation.
BACKGROUND:
Prior to liberalization, the Consumer Durables sector in India was restricted to a handful of domestic players like Godrej, Allwyn, Kelvinator and Voltas. Together, they controlled nearly 90% of the market. Players like BPL and Videocon first super ceded them in the early 1990s, who invested in brand building and in enhancing distribution and service channels. Then, with liberalization came a spate of foreign players from LG Electronics to Sony to Aiwa. Both rising living standards, especially in urban India, and easy access to consumer finance have fuelled the demand for consumer durables in the country. Also, the entry of a large number of foreign players means the consumer is no longer starved for choice. But this has also resulted in an over-supply situation in recent times as growth levels have tapered off.
Here, in survey the 69% are male respondents & rest of the respondents are female. Male are more concerned about the consumer durables & also more attracted towards these electronics.
The age of the respondents can be seen that the most of the respondents are from the age of 31-50. As it can be seen that the 17% of the respondents are coming in the age of 50. & the rest of the candidates are having age of 1830. As generally the 31-50 age respondents are more settled down in their life so they are highly preferred the consumer durables.
As it can be seen that most of the respondents are responded which are in the category of the graduate. It can be said that the respondents who have replied kindly are having at least the knowledge of the industry. Area of living is considered because as the customers are preferable for any one buying area or not that is seen. Generally, the Satellite & ambavadi area are more preferable for the consumer durables. Also the respondents are
There are generally the 69 respondents who are positive towards the financial schemes like to take a loan & buy in the installments it means 31%
Would you wait for available discounts for purchase consumer durables? Yes No
Approximately the 176 respondents are positive towards the discounts. While the rest of the respondents are not preferring the discount schemes.
As in the question of the promotional schemes change the brand preferences or not, in that 64% are brand loyal customers. While the 72 customers are loyal to the promotional schemes & they are more attracted to the promotional schemes.
FINDINGS
Availability of all brands at a time should be there in unorganized retail outlet. Most of the Respondents are generally not preferred the exclusive showrooms.
Sales India & Croma are the most relevant & preferred brand stores according to the consumers.
Generally consumers are not preferred much of the retail outlets for the mobile & all little accessories purchase. Consumers who are brand conscious, they are generally not switch over the brand for the any type of financial or the promotional schemes. Next retail outlet is generally not preferred by the consumers or it is less preferred also the x-cite is less preferred brand outlet for consumers. The reasons behind the les preferred brand outlets are only the marketing & the advertisements are not done by planning. E-zone which is sub brand of big bazaar is the attractive one due to the less prices & discounts are there. Unorganized outlets like the Vijay sales & all that are generally not preferred here in Ahmedabad due to the lack of awareness & trustworthiness.
Annexure
Dear Sir/Madam, We are the students of GLS NRIBM, MBA CAMPUS, AHMEDABAD and presently doing a project on Comparative analysis of consumer behavior at organized and unorganized retail with special focus on consumer durables We request you to kindly fill the questionnaire below and assure you that the data generated shall be kept confidential.
Gender : Male Female
Age : Educational Qualification : 10th or below 10+2 or below Graduate Post Graduate and above Others(please specify) Area : Occupation : Salaried Retired Student Self Employed Housewife NRI