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MINI PROJECT
ON
BUSINESS RESEARCH METHOD
“A Study Of Consumer Durable Market For Samsung
Electronics Ltd”
1
BONAFIDE CERTIFICATE
Certified that this mini project report title
“A Study Of Consumer Durable Market For Samsung
Electronics Ltd”
Declaration
2
It is hereby declare that I am VIKASH KUMAR&VINEET YADAV student of
MBA 2nd year “o” section School of Management, SRM University declare that
all the information enclosed in this project is true and exclusively collected by
me. Any resemblance from the earlier work is co-incident.
VIKASH
KUMAR
Reg.No.3510910892
VINEET
YADAV
Reg.No.3510910899
DATE:
PLACE:
3
Acknowledgement
We owe a great deal to our mini project guide Ms. A.R. Shanmuga priya for
this precious help and guidance during this study. Without her guidance,
suggestions and support this project would not have been possible.
Lastly, we would be unjustified on our part if, we do not thanks the almighty
for his blessings and invisible helping hands.
INDEX
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Sr.no. Contents Page no.
1. Introduction
2. Industry Profile
3. Company Profile
4. Product Profile
5. Objective of Study
6. Research Methodology
1.Primary data
2. Secondary data
3.Sampling
4. Scope of the study
5.Limitations of the study
7. Theoretical Background of the study
8. Data Analysis
9. Findings
10 Recommendations
11 Conclusion
10. Bibliography
INTRODUCTION
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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
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
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
Indian Consumer durables market used to be dominated by few domestic players like
Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies
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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
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
INDUSTRY PROFILE
7
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. The industry is represented by major international and local
players such as
1. BPL
2. Videocon
3. Voltas
4. Blue Star
5. MIRC Electronics
6. Titan
7. Whirlpool, etc.
The consumer durables industry can be broadly classified into two segments: Consumer
categorized into Brown Goods and White Goods. The key product lines under each
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Industry Size, Growth, Trends
The consumer durables market in India was estimated to be around US$ 5 billion in
2007-08. More than 7 million units of consumer durable appliances have been sold in the
year 2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per
cent share of volumes. CTV, refrigerators and Air-conditioners together constitute more
than 60 per cent of the sales in terms of the number of units sold.
In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct
cool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have
In the case of washing machines, the semi-automatic category with a higher base and
fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to
229,000 units, respectively. In the air-conditioners segment, the sales of window ACs
have grown by 32 per cent and that of split ACs by 97 per cent.
Since the penetration in the urban areas for these products is already quite high, the
markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas.
The growth across product categories in different segments is assessed in the following
sections.
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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 CTVs now account for over60 per cent of the total domestic TV
liquid crystal display (LCD)and plasma display CTV grew by 400 per cent and 150 per
Cent respectively in 2009–10 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.
COMPANY PROFILE
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SAMSUNG – Introduction
Our Vision
We believe that through technology innovation today, we will find the solutions we need
businesses to grow, for citizens in emerging markets to prosper by tapping into the digital
It’s our aim to develop innovative technologies and efficient processes that create new
markets, enrich people’s lives and continue to make Samsung a trusted market leader
Our Mission
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Everything we do at Samsung is guided by our mission: to be the best “digital-
Company”.
Samsung grew into a global corporation by facing challenges directly. In the years ahead,
our dedicated people will continue to embrace many challenges and come up with
creative ideas to develop products and services that lead in their markets. Their ingenuity
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SAMSUNG HISTORY
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February 2004 India made regional headquarters for Samsung Southwest Asia.
February 2004 Mr. K. S. Kim appointed as the First President and Chief Executive
Officer of Samsung South West Asia.
November 2003 Inaugurated Samsung's new, High-Tech, advanced Refrigerator
facility.
August 2003 Commencement of production at refrigerator facility in Noida.
June 2003 Merger of SIEL with SEIIT.
Software technology park set up at Noida
December 2002 Construction commences for 5,000,000 refrigerator plant in Noida
October 2002 Samsung unveils new technology for Consumer Home
Entertainment (DNIe™)
June 1996 Foundation Stone laid for CTV Factory at Noida, Uttar Pradesh.
May 1996 Launch in South
Home Appliances Launch
December 1995 Samsung India Electronics (SIEL) products launched in India.
August 1995 Certificate for commencement of business received by Samsung
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Samsung India aims to be the ‘Best Company’ in India by the Year 2006. ‘Best
Company’ in terms of both the internal workplace environment as well as the external
context in which the Company operates. Samsung aims to grow in India by contributing
to the Indian economy and making the lives of its consumers simpler, easier and richer
“Our aim is to gain technological leadership in the Indian marketplace even as our goal is
to earn the love and respect of more and more of our Indian consumers.” Mr. S.H. Oh,
Samsung in India
Samsung India is the hub for Samsung’s South West Asia Regional operations. The
South West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri
Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India, which
commenced its operations in India in December 1995, today enjoys a sales turnover of
Headquartered in New Delhi, Samsung India has a network of 19 Branch Offices located
all over the country. The Samsung manufacturing complex housing manufacturing
Refrigerators and Washing Machines is located at Noida, near Delhi. Samsung ‘Made in
India’ products like Colour Televisions, Colour Monitors and Refrigerators were
being exported to Middle East, CIS and SAARC countries from its Noida manufacturing
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complex. Samsung India currently employs over 1600 employees, with around 18% of its
SAMSUNG GLOBAL
media and digital convergence technologies with 2004 parent company sales of
US$55.2Bn and net income of US$10.3Bn. Employing approx. 113,000 people in over
90 offices in 48 countries, the company has of 5 main business units: Digital Appliance
brands, Samsung Electronics Corporation is the world’s largest pro ducer of Colour
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Samsung understands the local cultural sensibilities to customize its products
according to the Indian market. It has set up a “usability lab” at the Indian Institute of
Technology in New Delhi to customize Samsung products to meet the specific needs of
and interface.
Through its research done on consumer preferences in India, Samsung has concluded
that Indian consumers want more sound oriented products. Thus, the Samsung televisions
for India have a higher sound capacity than their foreign counterparts.
introduced for the first time in India a feature called Super Dry. It is present in three of
Samsung’s semi automatic models and dries the clothes better than the rest.
Samsung washing machines have an additional menu that takes care of the local
Indian wardrobes. They also have a ‘memory re-start’ that takes care of the frequent
PRODUCT PROFILE
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650 Series Full HD LC D TV
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VRT Front Loading Washer
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Haptic Touch Screen Phones (SC H-W420/W4200)
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OBJECTIVES OF THE PROJECT
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Research Methodology
Research methodology is considered as the nerve of the project. Without a proper well-
organized research plan, it is impossible to complete the project and reach to any
conclusion. The project was based on the survey plan. The main objective of survey was
to collect appropriate data, which work as a base for drawing conclusion and getting
result.
Therefore, research methodology is the way to systematically solve the research problem.
Research methodology not only talks of the methods but also logic behind the methods
used in the context of a research study and it explains why a particular method has been
Research design
Research design is important primarily because of the increased complexity in the market
as well as marketing approaches available to the researchers. In fact, it is the key to the
study buyer’s behavior, consumption pattern, brand loyalty, and focus market changes. A
research design specifies the methods and procedures for conducting a particular study.
variance.
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Research design specifies methods and procedures for study. In this study the company
was interested to know the demand of different consumer durable product, about
competitors, and potential for SAMSUNG procedures to be used for the study among
Data Collection:
This report was prepared after collecting data from the retailers/ dealers and past data was
arranged from the various studies conducted in last few years and various other records of
company.
Primary Data:
These data were collected by personal interview with retailers/ dealer. For this purpose
questionnaires were prepared in such that all necessary data would be collected.
Secondary Data:
Information regarding the project, secondary data was also required. These data were
collected from various past studies and other sources of the company.
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SAMPLING METHOD
SAMPLE SIZE
Research tools:
Questionnaires
25
Scope of the study
This project gives us great exposure to the consumer durable market because it includes
product knowledge and field survey job in which we visited the consumer durable stores
in Nashik district.
2. Collected the data of actual monthly sale of the SAMSUNG product in few shop.
3 Found out the problems that the dealer were facing while selling the SAMSUNG
product.
4. Found out the customer response for SAMSUNG products by asking the owner of the
shop.
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Scope
1. In term of purchasing power parity (PPP), India is the 4th largest economy in the world
and overtake Japan in the near future become the 3rd largest.
3. India has the youngest population amongst the major countries. There were lot of
people in the different income categories nearly the two third population is below the
4. There were 56 million people in middle class, who were earning us$4,400-US$21,800
5. The upper-middle and high-income household in urban areas were expected to grew to
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OPPORTUNITY
developing countries.
3. Rapid urbanization.
Threats
2. Cheap imports from Singapore, China and from other Asian countries.
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LIMITATION OF STUDY
Although I tried my best in preparation of this project, but this study has some limitation:
1. The period of the project was not sufficient to study all the factors in deep.
3. We cannot say that what the consumer have revealed will be right for each and every
4. Many consumer and dealers/retailers showed less interest in providing information and
haven’t cooperated.
5. Some of confidential information viz. credit period, schemes, policies and sales figure
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Theoretical Background of the study
Research methods provide you with the knowledge and skills you need to solve
Business research courses are a recognition that students in business, not-for-profit, and
public organizations – in all functional areas – need training in the scientific method and
its application to decision making. Two factors stimulate an interest in more scientific
decision making: (1) the manager’s increased need for more and better information and
(2) the availability of improved techniques and tools to meet this need.
During the last two decades, we have witnessed dramatic changes in the business
environment. Emerging from a historically economic role, the business organization has
evolved in response to the social and political mandates of national public policy,
These changes have created new knowledge needs for the manager. Other knowledge
demands have arisen from problems with mergers, trade policies, protected markets,
The trend toward complexity has increased the risks associated with business decisions,
making it more important to have a sound information base. Increased complexity means
there are more variables to consider. The competition is more vigorous, with many
the public are better informed and more sensitive to their self-interest. Government
continues to show concern with all aspects of society. Each of these factors demands that
managers have more and better information upon which to base decisions.
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To do well in such an environment, you will need to be equipped with an understanding
of scientific methods and a means of incorporating them into decision making. You will
need to know how to identify good research and how to conduct it. This book addresses
these needs.
As the complexity of the business environment has increased, there has been a
commensurate, increase in the number and power of the tools to conduct research. There
is vastly more knowledge in all fields of management. We have begun to build better
theories. The computer has given us a quantum leap in the ability to deal with problems.
and measurement techniques have also been enhanced. These trends reinforce each other
information.
Internal Sources
generalizations about their use. Accounting and management information systems create
and store much of the internal data. Research and development, planning, and marketing
financial and accounting reports, and marketing and sales studies. The collection methods
used are unique to the specific situation, and collection success depends on knowing just
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where and how to look. Sometimes the information may exist in central files (i.e., at
searches should be made through exploratory interviews with everyone who handles the
secretaries can help in pinpointing critical data sources. Internal data sources may be the
External Sources
External sources are created outside the organization and are more varied than internal
sources. There are also better defined methods for finding them. This discussion is
useful.
Published sources of data can be classified into five categories. The newest and fastest
growing one is computerized database. They are composed of interrelated data files. The
files are sets of records grouped together for storage on some medium. Access may be
through online search or CD-ROM. Online databases are often specialized and focus on
collections. Within this category there are many reference books, each a compendium of
are master’s theses, doctoral dissertations, and research records. A third group includes
prominent executives, sales literature, product specifications, and many others. There are
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miscellaneous information sources consisting of the productions of various trade,
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Data Analysis and Interpretation
Graph No. 1
INTERPRETATION:-
According to survey, 86 dealers were sold only C-TV, 67 dealers were sold C-TV and
34
Table no. 2 shows no. of company’s product sold from dealer’s shop.
Graph No. 2
INTERPRETATION-
According to survey, 33 dealers were sold 5 brands, 34 dealers were sold only 2 brands
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Table No.3 Shows Major brand of C-TV sold by dealers.
Graph No. :- 3
INTERPRETATION-
C-TV with 39%, after that VIDEOCON is 2nd with 23% and then SAMSUNG is on 3rd
with 18%.
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Table No.4 Most important parameter for more sale of C-TV
Graph No.4
INTERPRETATION-
According to dealers, Price is most important parameter for more sale of C-TV
37
Table No. 5 shows the major brands of REFRIGERATOR sold by dealers.
Sr. NO NO. OF
BRAND RESPONDENTS PERCENTAGE
1 LG 22 22
2 VIDEOCON 13 13
3 SAMSUNG 9 9
4 GODREJ 12 12
5 WHIRLPOOL 19 19
6 KELVINATOR 16 16
7 KENSTAR 9 9
TOTAL 100 100
Source:- Survey
Graph No. 5
INTERPRETATION-
with 22%,
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After that Whirlpool and Kelvinator is following them.
Table No.6 shows most important parameter for more sale of REFRIGERATOR
Graph No. :- 6
INTERPRETATION-
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Table no.7 shows Major brands of Washing Machine sold by dealers.
LG
9% 18% VIDEOCON
10%
SAMSUNG
9% 11%
IFB
WHIRLPOOL
GODREJ
21% 15% KELVINATOR
7%
KENSTAR
INTERPRETATION-
According to dealers, LG is leading in Washing Machine market with 18%, after that
40
Table No.8 shows most important parameter for more sale of Washing Machine
Graph No.8
INTERPRETATION-
According to dealers, the most important factor which affects the sales of washing
machine is QUALITY, and then prices and services is considered by the customers.
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Table No.9 shows Major brands of DVD sold by dealers.
Graph No. :- 9
MAJOR BRAND OF DVD
NO. OF RESPONDENTS
25 22
20
15
15 13 12
11 10 NO. OF RESPONDENTS
8 9
10
0
N
X
A
I
S
Y
SU
LG
IP
TE
ID
N
N
C
O
IL
N
IN
EO
S
A
O
H
M
S
P
ID
A
S
V
BRANDS
INTERPRETATION-
According to dealers, PHILIPS is the most popular brand in DVD market with 22%, after
that ONIDA with 15% and VIDEOCON with 13% on 3rd position.
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Table No.10 shows most important parameter for more sales of DVD
Graph No. 10
INTERPRETATION-
According to dealers, Quality is major factor in respect of more sale of DVD, and then
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Table No.11shows Major Brand of MICROWAVE OVEN sold by dealers.
Graph No. 11
NO. OF RESPONDENTS
25
21
20 18
15
15 13
NO. OF RESPONDENTS
9 9
10 8 7
0
N
J
R
G
Y
LG
E
O
IP
A
N
N
R
C
ST
AJ
U
O
IL
D
EO
S
H
O
B
EN
AM
P
G
ID
K
S
V
INTERPRETATION-
According to dealers, KENSTAR is very popular brand for microwave oven. KENSTAR
is making a huge business as compare to other competitors after that LG and then
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SAMSUNG. According to dealers, microwave oven does not have that much demand as
Graph No. 12
INTERPRETATION-
The most important factor of more sales of microwave oven is QUALITY of the product.
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Table NO.13 shows High Profit margin brands
Graph No.13
HIGH PROFITABLE BRAND
NO. OF RESPONDENTS
25
20
15
NO. OF RESPONDENTS
10
5
0
EO L
R
G
S
O
Y
AM LG
E
O
A
IP
N
N
O
R
C
ST
U
IL
D
LP
A
H
O
EN
IR
P
G
ID
K
H
S
V
W
BRANDS
INTERPRETATION-
LG is leading company because of their low pricing policy and the better quality of
product.
SAMSUNG is on 2nd position, if SAMSUNG will change their pricing policy like LG
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FINDING
1. We came to know while visiting the shop most of the dealers sold entire consumer
oven.
2. Study shows that quality is most important parameter for more sale of colour television
3. Study shows that quality of the product is most important parameter for Refrigerator
4. While visiting the shop we came to know that quality is most important parameter
6. We came to know that while visiting the shop, Kenstar is most preferable brand for
7. While visiting the shop we know that LG is gives high profit margin as compare to
other competitors.
8. While visiting the shop dealers suggested that after sales service is most important
9. All the dealers were not satisfied with the profit margin.
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10. SAMSUNG product is costly as compare to LG and VIDEOCON.
11. Maximum rural area is covered by the VIDEOCON because of their low price
products.
12. We came to know while visiting the shops that there was big problem of after sales
service.
13. Many dealers were facing the problem of after sale service because there is no follow
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SUGGESTIONS &RECOMANDETION
• Company should improve the after sales service of products as it is the main
• If the SAMSUNG Ltd. reduces their product price like LG and VIDEOCON then
• Company should distribute free key chain, calendar, t-shirts for making brand
• Company should introduce low price and low power consumption Refrigerator for
• Dealer desire more advertisement to be done through local newspaper and cable
price.
• Company should introduce low cost products to satisfy the needs of low or middle
class.
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• Demo calls as well as follow up Help Company to maintain customer relationship
50
Conclusion
• With respect to the above study and the findings thereby, the company has
• With few more concerted efforts, the said organization needs to enter the rural
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ANNEXURE
A. Questionnaire
Address:
Contact no.:
1) Which is consumer durable product you sold from your shop?
□C-TV □Refrigerator □Washing Machine
□DVD □Microwave
2) How many no. of company’s product you sold from your shop?
□ONE_______________________________________________
□TWO_______________________________________________
□THREE_____________________________________________
□FOUR______________________________________________
□FIVE_______________________________________________
□SIX________________________________________________
7) Which is major brand of Washing Machine you sold from your shop?
□ IFB □ Whirlpool □ Kenstar □ LG
□ SAMSUNG □ Videocon □ Kelvinator □ Godrej
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8) What is the important parameter for more sales of Washing Machine brand?
□ Price □ Quality □ Services □ Advertisement
□ Schemes
10) What is the important parameter for more sales of DVD brand?
□ Price □ Quality □ Services □ Advertisement
□ Schemes
11) Which is major brand of Microwave you sold from your shop?
□SAMSUNG □ LG □ Videocon □ Kenstar
□ Godrej □ Philips □ Bajaj □SONY
12) What is the important parameter for more sales of Microwave brand?
□Price □ Quality □ Services □ Advertisement
□ Schemes
14) What are your suggestions for SAMSUNG to increase the sales?
_________________________________________________________________
_________________________________________________________________
_
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B). Bibliography
1- http://www.samsung.com/in/aboutsamsung/index.html
2- http://www.samsung.com/in/aboutsamsung/corporateprofile/index.html
3- http://www.samsung.com/in/aboutsamsung/corporateprofile/history.html
4- http://www.samsung.com/in/aboutsamsung/corporateprofile/visionmission.html
5- http://www.samsung.com/in/consumer/index.html
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