A

Report
On

CONSUMER ELECTRONICS
(Air Conditioning Industry)
Titled
Comparative Analysis of Products & Services of Air Conditioner
Industry Competitors in Indian market

Rourkela Institute of Management Studies, Rourkela

BY
1-Ravikant Trivedi-1506260033
2-Biswajit Baral-1506260009
3-Promila Soreng-1506260025
4-Sumit Purty-1506260047

ACKNOWLEDGEMENT

A special thanks to my faculty guide, Mr. BISWAJIT

ACHARYA and Mr. S.K BISWAL for being the chief facilitator of this
project and helped me enhance my knowledge in consumer electronics
market(air condition) research in Indian market.

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

Meaning Of Electronics' Industries.

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

FIVE FORCE MODEL Of Air Conditioner.

Comparing SWOT Analysis.
STP Of Air Conditioner.
Perceptual Map of Air Conditioner.
BCG MATRIX of Air Conditioner.
ANSOFF MATRIX of Air Conditioner.

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: -

Passive: Capable of operating without an external power source. Typical passive

components are resistors, capacitors, inductors and diodes (although the latter are a special
case).

Active: Requiring a source of power to operate.

circuits (all types), TRIACs, SCRs, LEDs, etc.

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.

Includes transistors (all types), integrated

Business of creating ,designing ,producing and selling devices such as :

radios
televisions
cameras
stereos
computers
semiconductors

In Indian Over View.

The electronic industry in India took off around 1965.

It was followed by consumer electronics mainly with transistor
radios, black & white TV, calculators and other audio products.
It is currently US$ 32 billion.
Constitute 0.7 per cent of global electronic industry.

It is expected to grow at a CAGR of 10.2% upto 2020.

Evolution of electronics industry

The electronics industry, especially meaning consumer electronics, emerged in the 20th century
and has now become a global industry worth billions of dollars. Contemporary society uses all
manner of electronic devices built in automated or semi-automated factories operated by the
industry. Products are assembled from integrated circuits, principally by photolithography of printed
circuit boards.The size of the industry and the use of toxic materials, as well as the difficulty of
recycling has led to a series of problems with electronic waste. International regulation and
environmental legislation has been developed in an attempt to address the issues.

Workers in an electronics factory in Shenzhen, China.

The electric power industry began in the 19th century and this led to the development of all manner
of inventions. Gramaphones were an early invention and this was followed byradio transmitters and
receivers and televisions. The first digital computers were built in the 1940s with a slow
development in technology and total sales. In the 1990s thepersonal computer became popular. A
large part of the electronics industry is now involved with digital technology.
The industry now employs large numbers of electronics engineers and electronics technicians to
design, develop, test, manufacture, install, and repair electrical and electronic equipment such as
communication equipment, medical monitoring devices, navigational equipment, and computers.

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.

Evolution Of Air Condition.

In 1902, A 25-year-old Engineer From New York Named Willis Carrier Invented
The First Modern Air-conditioning System. The Mechanical Unit, Which Sent Air
Through Water-cooled Coils, Was Not Aimed At Human Comfort, However; It
Was Designed To Control Humidity In The Printing Plant Where He Worked.
In 1922, He Followed Up With The Invention Of The Centrifugal Chiller, Which
Added A Central Compressor To Reduce The Unit's Size. It Was Introduced To The
Public On Memorial Day Weekend, 1925, When It Debuted At The Ravioli Theater

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:

Market drive, challenges and trends.

Driver
-increasing demand for energy efficient AC.
Challenge
- Intense competition in market.
Trends
-Increase use of green technology.
Major Players In Air Condition Industry In India.

1. Voltas Air Conditioner

Voltas is one of the leading AC company also leading with refrigeration
appliances. Voltas was organised in the year 1954 and mainly deals with cooling
and air conditioning appliances in Indian Market. The company also manufactures
frock-lift trucks. Voltas envisages in sewage treatments,water pollution control etc.
In collaboration with Volkart Brothers, a Swiss firm and Tata Sons Limited, there
led to a formation of Voltas. It introduced its first innovative split AC in 1984.

Voltas now Enjoys No 1 Position in selling Air conditioners in India (2015). LG is

in second position according to latest sources. Voltas assures quality ACs for each
and every customer at well affordable price. They offer Slip AC, Window AC,
Cassette AC, Slimline ACs. Split AC is most popular and best for houses. Choose
from series like Classic, Premium, Luxury, Delux, Magna, Zenith, Executive, Sprint
etc.

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.

3. Samsung Air Conditioners

Samsung Air conditioners are featured with automatic cleaning,
de-humidification, turbo cleaning, energy star rated. It turns your home
dramatically into pure,healthy, removes health threatening bacteria like allergycausing agents,thus protecting you from diseases.
Samsungs virus doctor S plasma tackles
bacteria from entering the house. It blows fresh air into the room creating an ideal
climate in the room. Samsung is one of the leading electronic gadget market both in

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.

4. Blue Star Air Conditioners

Blue Star is another Best Leading Air Conditioner Brands in India. This Provides
air conditioners for multiple purpose including central air conditioners and room air
conditioners. Room air conditioners are available as different types and variety.
They are star rated window ACS, split ACS, cassette air conditioners, verticool split
ACS, concealed split ACS etc.
Their products are highly qualified and specially
made for corporate, commercial and residential needs. Inverter split AC offers
User-friendly wireless remote for ease of operation, and available in 1.5, 2 TR.
Mega split Ac includes Blue Star wall-mounted mega split AC.
It features Three Phase Advantage, Active Carbon
Filter, Dust Filter, Anti-corrosive Blue Fin Copper Condenser, Hydrophilic Blue
Evaporator Fins etc. Another special category star rated hi-wall AC which has
special features like BEE (Bureau of Energy Efficiency) confirmed star rate, high
performance cooling and low electricity bills.

5. Hitachi Air Conditioners

Hitachi is one of the Best Leading Air Conditioner Brands in India
and offers Air Conditioners with evident innovation and technology. They offer

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

VOLTAS HOUSE, Mumbai.

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

Major players in AC industry

1. Voltas
2. Lg
3. Samsung
4. Blue Star
5. Hitachi
Leader of AC industry in India.

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

Geographical Distribution of Top Air conditioner

manufacturing Countries and their brands.

JAPAN

CHINA

INDIA

KOREAN

USA

Daikin

Carrier

Voltas

Lg

Sharp

Hitachi

Media

Videocon

Samsung

Whirl fool

Panasonic

Haier

Godrej

Toshiba

Onida

Market share of top players in air condition industry in

India.

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.

Composition of various AC products

The Market Grew From 3.8 Million In 2013 About 4 Million In

2014.
This Comprises of the following products:

SL NO.

PRODUCT INCLUDED

SALES (IN RS)

PERCENTAGE (%)

High wall splits ACs

24,45,000

61 %

Ducted and packaged units

6,55,000

16.7 %

Windows ACs

6,05,000

15 %

Inverter ACs

2,00,000

5%

Cassettes ACs

80,000

2%

Floor mounted units

15,000

0.3 %

GLOBAL AIR CONDITION MARKET 2016-2020

REPORT(DEC-2,2015).

The Market Research Report Provides a Comprehensive

Segmentation of the Global Air Conditioning Market by
Product Type (Air Side, system, chillers, portables, Single

Packaged Splits and Windows Units).

It Outline The Market Shares For Key Regions Such As The

Americas, Apac, Europe And Mea.

The Key Vender Analyzed In This Report Are Daikin, Green
Electrics Appliances, Media, Mitsubishi Electric, Panasonics

And Toshiba, Carrier.

The Split Segmentation Dominated The Market During

2015,with A Market Share Of Around 77%.

Apac Around 62% Of The Market Share During 2015 And Is
Expected To Retain Its Market Leadership Until The End Of

The Forecast Period.

China , japan Are The Market Leader In Apac Accounting

For Combined Market Share Of Around 80%.

The Vender In Market Compete On The Basis Of Services,
Availability, price, Technology And Quality.

History and company profile.

VOLTAS 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.
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.

VISION AND MISSION OF

COMPANY NAME
VOLTAS

LG
SAMSUNG

BLUE STAR

HITACHI

VISION
Driving Value
Engineering.

MISSION
Through

Smart

Trust Respect And Cooperatio

We
Will Offer Our Customer
Appropriate
Engineering
Solutions In The Form Of
Products, Projects.

And Services Of Superior

Value In Our Areas Of Expertise
And Experience.

To Create Value Of Customer.

Samsung Is Dedicated To Developing

Innovative Technologies And Efficient
Processes That Create New Markets,
Enrich People's Lives And Continue To
Make Samsung A Digital Leader

Blue Star Brand Will Be Synonymous

For Our Customer.

With Excellence A Conveyed In Each

And Every Customer Experience.

For Our Employees,

For Our Industry.

The

Hitachi drive Innovation That Answer

Inspire the world create the

future.

Mission

That

Hitachi

Society Challenges, With Our Talented

Team And Proven Experience In Global
Markets, We Can Inspire The World

Aspires To Fulfill In Society,

Contribute To Society Through
The Development Of Superior
Original
Technology
And
Products.

PUNCH LINE OF AIR CONDITION COMPANY.

COMPANY NAME

PUNCH LINE

VOLTAS

Ache Achon Ko Thanda

Karde

LG

Purest Way To Breathe

SAMSUNG

Ab Garmi Chumantar

BLUE STAR

Breathe Easy

HITACHI

For Those
Perfection

Who

Seek

Price of air conditioner Brands.

Voltas company ACs price.

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.

Another South Korean Brand That Enjoys Great Command In

Indian Consumer Appliances Market Is LG. Lg's Air
Conditioners Are Appreciated For Quality. Apart From That,
Great Service And Performance, Affordable Price And Smart
Cooling Are What LG Boasts Of. The Price Range Of LG Air
Conditioners Varies Between Rs. 18,000 And 78,000. Some
Of The Most Popular AC Models From LG Are Mentioned
Below:
BSA18IMA
Bs-q186c8a4
Bsa12ima
Samsung company ACs price.
This South Korean Private Conglomerate Is Spreading Its
Wings In India Further And Further Everyday. The Air
Conditioners From Samsung Are Amongst The Most Sought
After And Most Popular In India. Samsung Acs Are Famous
For Their Features And The Level Of Comfort They Offer. The
Prices Range Of Samsung Is Rs. 20,000 Rs. 70,000. Some
Of The Most Famous Samsung AC Models Are Mentioned
Below:
Triangle Inverter AC.
Ar18jv5dawknna 1.5 Tr
Ar18jc5hatpnna
Ar18jv5hatqnna

Blue star company ACS price

 Founded in 1943, Blue Star is one of the oldest consumer electronics

companies based in India. The company started off with reconditioning
refrigerators and air conditioners. The company feels proud of having
catered to the cooling needs of a large number of residential, commercial
and corporate customers by providing best air-conditioning services. The
price range of Blue Star ACs begins from Rs. 22,000 and ends at Rs.
1,00,000. Some of the most popular Blue Star AC models are mentioned
below:

CNHW09CAF 0.75 Ton Split AC

5HW12SC 1 Ton Split AC
5HW18SB 1.5 Ton Split AC
3HW12FC 1 Ton Split AC
Hitachi company ACs price

Hitachi is a famous consumer electronics conglomerate from

Japan founded in 1920 and based in Tokyo, Japan. It offers
some of the most energy efficient air conditioners. Quality
air conditioners are something that Hitachi thrives on. Its
ACs have features like anti-bacterial koukin filter and auto
climate technology. The price range of Hitachi ACs is Rs.
25,000 Rs. 70,000. Some of the widely sold Hitachi models
are mentioned below:
Zunoh 300f
Zunoh 200f
Kaze Neo
Kashikoi 400i
Kashikoi 200i
Summer TM
KAZE Reidan (H & C)

MARKET ANALYSIS.

Five force model analysis.

 Michael Porters Five Forces For Competitor

Analysis
Michael Porters Five Forces Is a Model Used to Explore the Environment
in Which a Product or Company Operates to Generate Competitive

Advantage.
Porters Five Forces Analysis Looks At Five Key Areas Mainly:
1.
2.
3.
4.
5.

The Threat Of Entry

The Power Of Buyers
The Power Of Suppliers
The Threat Of Substitutes, And
Competitive Rivalry (Advantage)
Introduction To The Five Forces
The Model Of The Five Competitive Forces Was Developed By
Michael E. Porter And Is Featured In His Book Competitive
Strategy: Techniques For Analysing Industries And Competitors.
It Was Published In 1980. Since That Time The Five Forces Tool Has
Become An Important Method For Analysing An Organizations
Industry Structure In Strategic Processes.

Michael Porters Five Forces Model Is Based On The Insight That A

Corporate Strategy Should Meet The Opportunities And Threats In
The Organizations External Environment. Especially, Competitive
Strategy Should Based On An Understanding Of Industry Structures
And The Way They Change.
Porter Has Identified Five Competitive Forces That Shape Every
Industry And Every Market. These Forces Determine The Intensity Of
Competition And Hence The Profitability And Attractiveness Of An
Industry. The Objective Of Corporate Strategy Should Be To Modify
These Competitive Forces In A Way That Improves The Position Of
The Organization. Porters Model Supports Analysis Of The Driving
Forces In An Industry. Based on the Information Derived from Porters
Five Forces Analysis, Management Can Decide How to Influence or to
Exploit Particular Characteristics of Their Industry.

Porters Forces model is an outside looking in business unit strategy tool

that is used to make an analysis of the attractiveness or value of an industry
structure.
The Competitive Forces analysis is made by the identification of 5 fundamental

Ove
rvie
The entry of competitors (how easy or difficult is it for new entrants to
w of

competitive forces:

start to compete, which barriers do exist)

The threat of substitutes (how easy can our product or service be
substituted, especially cheaper)
The bargaining power of buyers (how strong is the position of buyers,
can they work together to order large volumes)
The bargaining power of suppliers (how strong is the position of sellers,
are there many or only few potential suppliers, is there a monopoly)
The rivalry among the existing players (is there a strong competition between the
existing players, is one player very dominant or all all equal in strength/size) Some
academics believe that a sixth force could be included government.

Porters Five Forces.

 COMPAIRING SWOT ANALYSIS.

We take VOLTAS & LG company for SWOT analysis compare because in
now stage between air conditioner industry VOLTAS & LG competitive
each other and they trying to top position among all air conditioner
manufacturing company in Indian.

Voltas company SWOT analysis

STRENGTH

WEAKNESS

OPERTUNITIES

THREAT

1) Voltas Is India's Largest Air Conditioning

Company.
2) Leader In Terms Of Market Share In The
Cooling Products Segment.
1) .Decreasing Operating Projects (Profit
over the Past Years Is a Concern.
2) Dependence On Copper For
Electromechanical While Copper Prices
Are Rising) Keeps The Profit Margin
Lower.
1) Recovering Construction Market In
Middle East.
2) Low Market Penetration In Indias AC
Industry Implies Huge Potential For
Growth.
1) Sluggish Economy and Exchange Rate
Fluctuations Playing Spoilsport.
2) Increased Competition From Japanese
Brands In Cooling Products.

LG Company SWOT Analysis:STRENGTH

1) Wide range of products to serve all categories and

a strong focus on technology and quality.
2)
Effective localization of product offerings for
growth markets like India, Brazil, China

WEAKNESS

1) Brand lacks influence in the opinionated segment

of early adopters especially in the social media
environment.
2)
Brand has limited market share compared to
market leaders.

OPPORTUNITIES

1) Fast growth of home appliances, electronics goods

market in emerging economies.
2) Convert improved brand image and awareness in
to market share.

THREATS

1) Price war with close Korean competitors like

Samsung can disrupt growth in price sensitive
markets.

STP & USP comparing between VOLTAS & LG: Voltas company STP:SEGMENTING

1) Electro mechanical projects, engineering, cooling

solutions.

TARGETING

1) Construction businesses, middle & upper class

individuals.

POSITIONING

1) All weather air conditioner (for ACs business).

LG company STP:SEGMENTING

TARGETING
POSITIONING

1) Mobile Communications, Home Entertainment,

Home Appliances, Air Conditioning, and Energy
Solutions
1) Consumer Durables: Currently mass market, efforts
are on to shift to a more premium segment.
2) Mobile Phones: Youth/Generation.
1) Technology that offers you more and sets you free

USP compare between VOLTAS & LG air condition company: VOLTAS company USP:-

USP

1) Reliable service and vast distributor network.

LG company USP:-

USP

1) Innovative Technologies and Cutting edge Designs; Health

(in Indian Consumer Durables Market).

 PERCEPTUAL MAP ANALYSIS.

Perceptual map
Perceptual Mapping is the use of graphs to identify the positioning of
products/brands that consumers have, and find their preference [1]. The
graphs lay out an X and Y axis with variables and ranges from the most
desirable to least desirable. For instance, the far right may be listed as
Upper class while the left side will be Lower Class. This allows for
the placement of business names to help find the position that
consumers place these businesses in relation to the variables listed.
Perceptual
mapping is
a diagrammatic technique
used
by
asset marketers that attempts to visually display the perceptions of
customers or potential customers. Typically the position of
a product, product line,or brand, of a company is displayed relative to
their competition.
The Uses
The use of perceptual mapping is key to finding and understanding
what consumers think about a particular brand or set of brands. With
this information, businesses are able to identify what their weaknesses
are, what their strengths are and who their true competitors are. It
supplies them with the material they need to see if they are placing in a
position that is relevant to their overall objective. If a business is
perceived in a manner they find unsatisfactory, then they are able to go
even further into research to see what they can do to change that. It also
allows for businesses to see what consumers think of other brands,
particularly their competitors. Regular uses of the maps can also help
track the preferences of consumers, and see the changes as they happen.
Perceptual Maps can help identify gaps in a market. If a business were
to lay out a Perceptual Map with the biggest brands in an industry on it,
they may be able to find an opening in the market where they can bring

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.

1. Dogs: These are products with low growth or market share.

2. Question marks or Problem Child: Products in high growth markets

with low market share.

3. Stars: Products in high growth markets with high market share.

4. Cash cows: Products in low growth markets with high market share

How to use the BCG Matrix?

To look at each of these quadrants, here are some tips:

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.

Stars: Can be the market leader though require ongoing investment to

sustain. They generate more ROI than other product categories.

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.

Use the model as an overview of your products, rather than detailed

analysis. If market share is small, use the 'relevant market share' axis is based on
your competitors rather than entire market.

What to watch for?

The BCG Model is seen as simplistic and it can be difficult to classify products in
smaller businesses where the relative market share is too small to quantify. Its also
based on the concept that market share can be achieved by spending more on the
marketing budget.

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:

Market penetration [low risk]

In market penetration strategy, the organization tries to grow using its existing offerings
(products and services) in existing markets. In other words, it tries to increase its market
share in current market scenario.This involves increasing market share within existing
market segments. This can be achieved by selling more products or services to established
customers or by finding new customers within existing markets. Here, the company seeks
increased sales for its present products in its present markets through more aggressive
promotion and distribution.
This can be accomplished by: (i) Price decrease; (ii) Increase in promotion and distribution
support; (iii) Acquisition of a rival in the same market; (iv) Modest product refinements

Market development [medium risk ]

In market development strategy, a firm tries to expand into new markets (geographies,
countries etc.) using its existing offerings.
This can be accomplished by: (i) Different customer segments; (ii) Industrial buyers for a
good that was previously sold only to the households; (iii) New areas or regions of the
country (iv) Foreign markets. This strategy is more likely to be successful where:- (i) The
firm has a unique product technology it can leverage in the new market; (ii) It benefits from

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.

Product development [medium risk]

In product development strategy, a company tries to create new products and services
targeted at its existing markets to achieve growth.
This involves extending the product range available to the firm's existing markets. These
products may be obtained by: (i) Investment in research and development of additional
products; (ii) Acquisition of rights to produce someone else's product; (iii) Buying in the
product and "branding" it; (iv) Joint development with ownership of another product who
need access to the firm's distribution channels or brands.

Diversification [high risk]

In diversification an organization tries to grow its market share by introducing new
offerings in new markets. It is the most risky strategy because both product and market
development is required. (i) Related Diversification - Here there is relationship and,
therefore, potential synergy, between the firms in existing business and the new
product/market space. (a) Concentric diversification, and (b) Vertical integration. (ii)
Unrelated Diversification: This is otherwise termed conglomerate growth because the
resulting corporation is a conglomerate, i.e. a collection of businesses without any
relationship to one another.A strategy for company growth through starting up or acquiring
businesses outside the companys current products and markets

 FINANCE ANALYSIS

 Last 5 years Balance sheet of Voltas.

 Last 5 years revenue of Voltas company

Last 5 year revenues of Voltas

300
281.44

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

 Last 5 years Balance sheet of LG.

 Last 5 years revenue of LG Company.

 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

 It can also be calculated by substracting operating ratio from

100.
This ratio indicates the ability of the firm to with stand the
adverse conditions.

Ratio analysis of Voltas air conditioner.

1. DEBT EQUITY RATIO=TOTAL DEBT/SHAREHOLDER
EQUITY

(10-11)

(11-12)

(12-13)

(13-14)

(14-15)

7%

13 %

14 %

12 %

3%

2. CURENT RATIO=CURRENT ASSET/CURRENT LIABILITY.

308421.07/229611.96 =1.34 %

3. OPERATING PROFIT RATIO=OPERATING PROFIT/NET

SALES*100.
41534/515378*100=8.05 %

Ratio analysis of LG air conditioner.

1. DEBT EQUITY RATIO=TOTAL DEBT/SHAREHOLDER
EQUITY.
(14-15)
47.8 %

2.

CURENT RATIO= CURRENT ASSET/CURRENT

LIABILITY.

(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.

Consumers Have Developed a Preference for Energy

Efficient Models-5 Star and Inverter Acs.

The Fastest Growing Market Segment Is Inverter Acs.

Which Is Growing In 2015 At About 25% Over 2014?

It Is The Project To End The Year With A Sale Of About

2,50,000 Window Acs.

This Accounted For About 80% Of The Total Sales A
Decade Back, Have Gradually Slid To 20% And Are
Holding On To This Share For The Last Couples Of

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.

 MARKET SHARE OF ROOM ACS

SEGMENT :-

A STUDY OF CONSUMER BEHAVIOR:-

Attributes affecting selection of brand.

1. Durability
have always changing in purchase a product and services,
2. Consumers
After sales service
3. Finance option
4. Less power consumption
5. Technology with respect to cooling and fresh air and easy
options.
6. Sleek look
7. Suitable price
8. Brand image.

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

1. Marketing Management (Fhilip Kotler)14 Edition

Book.
2. Financial accounting Analysis Book.
3. Jawaharlal Nehru University Project Report, New
Delhi
4. Global Market Research Report.
5. Times Of India .Com
6. Bee India.Com.