HITACHI

$678'<21 
TO RECOMMEND STRATEGY FOR BRAND EXTENSION OF
“HITACHI”(AIR CONDITIONERS) TOWARDS DEVELOPING A
BRAND EQUITY FOR HITACHI TELEVISION SETS

$678'<&21'8&7(')25 
Hitachi Home & Life Solutions (India) Ltd., Bangalore

Submitted in partial fulfillment for the requirement of MBA Degree of Bangalore

University

Submitted by:
RAKESH.S

Register no:

03XQCM6078

Under the guidance of:

Prof S.Ramgopal

For Bangalore University

2003-2005

M.P.BIRLA INSTITUTE OF MANAGEMENT

ASSOCIATE BHARATIYA VIDYA BHAVAN
# 43, Race Course Road
BANGALORE-560001

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DECLARATION

I hereby declare that project entitled “TO RECOMMEND STRATEGY FOR

BRAND EXTENTION OF HITACHI (AIR CONDITIONERS) TOWARDS
DEVELOPING A BRAND EQUITY OF HITACHI TELEVISION” has been
carried out by me under the guidance and supervision of Prof S.Ramgopal,
M.P.Birla Institute of Management, Bangalore.

I also declare that this project has not been submitted to any University/Institution for the
award of any Degree/Diploma.

Place: Bangalore
Date: RAKESH.S

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GUIDE CERTIFICATE

I hereby declare that the research work embodied in the project entitled
“TO RECOMMEND STRATEGY FOR BRAND EXTENTION OF HITACHI
(AIR CONDITIONERS) TOWARDS DEVELOPING A BRAND EQUITY
OF HITACHI TELEVISION.” Bangalore has been undertaken and
completed by Mr.Rakesh.S under my guidance and supervision.

I also certify that he has fulfilled all the requirements under the covenant
governing the submission of dissertation to the Bangalore University for
the award of MBA degree.

Place: Bangalore
Date: (Prof S.Ramgopal)
MPBIM,
Bangalore-1

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PRINCIPAL CERTIFICATE

I hereby certify that the research work embodied in this project entitled
“TO RECOMMEND STRATEGY FOR BRAND EXTENTION OF HITACHI
(AIR CONDITIONERS) TOWARDS DEVELOPING A BRAND EQUITY
OF HITACHI TELEVISION.” Under the guidance of Prof S.Ramgopal,
MPBIM, Bangalore (Internal Guide) and Mr.Prasanth.R of Hitachi Home &
life Solutions (India) Ltd. Bangalore (External Guide).

Place: Bangalore
Date: (Dr. N. S. Malavalli)
Principal
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ACKNOW LE DGEMENT

I take this opportunity to sincerely thank Prof.S.Ramgopal who

introduced me to the intriguing subject of Brand Extension and sharing his
knowledge on the subject, which is going to be instrumental in shaping my
career in the area of Brand Management.

I sincerely thank Mr.Prasanth.R (Area manager-Cons Prod Sales, Hitachi

Home & life Solutions (India) Ltd.) Bangalore office for giving me this
opportunity to undertake marketing research for Hitachi appliances.

I also thank Dr N.S. Malavalli (Principal) for giving me the opportunity to

explore my areas of interest by consistently lending support in terms of his
expertise.

Lastly, I would like to express my heart-felt gratitude to my friends who

stood by me right throughout this project and have been a constant source
for support and strength.

RAKESH.S

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&217(176

TITLE PAG
AGEE NO.

INTRODUCTION 1-14

RESEARCH DESIGN 15-19

COMPANY PROFILE 20-23

DATA ANALYSIS & 24-55

INTERPRETATION

FINDINGS, CONCLUSION & 56-61

SUGGESTIONS

BIBLOGRAPHY 62-63

ANNEXURE 64-67

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INTRODUCTION
















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,1752'8&7,21

BRAND
A brand is a name, term, sign, symbol, or design, or a combination of
them, intended to identify the goods or services of one seller or group of sellers
and to differentiate them from those of competitors.
A brand is essentially a sellers promise to deliver a specific set of features,
benefits and services consistently to the buyers. The best brand conveys a
warranty of quality. But a brand is an even more complex symbol. It can convey
up to six level of meaning:
Attributes: a brand brings to a mind certain attributes. BMW suggests
expensive, well-built, well-engineered, durable, high prestige automobiles.

Benefits: attributes must be translated into functional and emotional

benefits. The attribute “durable” could translate into the functional benefit
“I won’t have to buy another car for several years. The attribute
“expensive” translates into the emotional benefits “the car makes me
important and admired”.

Values; the brand also says some thing about the producers’ value. BMW
stands for high performance, safety, and prestige.

BRAND EQUITY
Brand equity is highly related to how many customers are in class. It is also
related, according to the degree of brand name recognition, perceived brand
quality, strong mental and emotional associations, and other assets such as patents,
trade marks and channel relationships.

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BRAND EXTENSION
A company may use its existing brand name to launch new products in
other categories. Example Honda uses its company name to cover such different
products as automobiles, motorcycles, snowblowers, lawn mower, marine engines,
and snowmobiles.

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THEORITICAL BACKDROP
DEFINATION OF MARKETING AND OTHER CONCEPTS

Marketing management is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods, and services to create
exchanges that satisfy individual and organizational goals.

For the marketing management to work efficiently, the marketer, who is

someone who is seeking a response from other party called a prospect, must try to
understand the target market’s need wants and demands. These terms can be
defined in the following ways:

NEEDS describe basic human requirements people and food, air , water,
clothing and shelter to survive. These needs become wants when they are directed
to specific objects that might satisfy the needs.

DEMANDS are the wants for specific products, which are backed by an
ability to pay for the same. Companies must measure not only how many people
want their product, but also how many would actually be willing and able to buy
it.

Marketers do not create needs. Needs preexist marketers. Marketers along with
other societal influences, influence wants. People satisfy their needs and wants
with products. A product is any offering that can be offered to satisfy a need or
want. A product can consist of many as three components namely good, service
and idea.

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MARKETING MIX
Marketing mix is the set of marketing tools that a firm uses in order to
pursue its marketing objectives.
McCarthy popularized a four-factor classification of these tools, namely the
“4 P,s”: Product, Place, Price and Promotion. A marketing mix must be made for
both the distribution channels as well as the final consumers.
Graphical representation of McCarthy’s 4 P’s concept

Marketing mix

Place
Product Assortments
Place
Product variety Locations
Channels Inventory
Quality Target
Transport
Coverage marketing
Design
Features
Brand names
Packaging size
Services
Warranties

Price Promotion
List price Sales promotion
Discounts Advertising
Allowance Sales force
Payment period Public relations
Credit terms Direct marketing

The most basic marketing mix tool is Product. A product is a firm’s tangible offer
to market, which is inclusive of product quality, design, features, branding, and

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packaging. A product may carry supportive services, and this can provide a
competitive market.

Another tool is Price. This is the amount of money that customers pay for the
product. The company will have to decide on wholesale and retail prices,
discounts, allowances and credit terms. Its price should be in tune with the offer’s
perceived value. If it is not, buyers will turn to competitor’s product.

Place is another important element. This includes the various activities the
company undertakes to make the product accessible and available to target
customers. Therefore, it must understand the various types of retailers, wholesalers
and physical distribution firms and how they make their decisions.

The fourth tool, namely Promotion comprises of all activities that the company
undertakes in order to communicate and promote its products to the target market.
It has to setup communication and promotion programs consisting of advertising,
sales promotion, public relations and direct and online marketing.

PRODUCTS CLASSIFICATONS
Marketers have classified products on the basis of the following
characteristics: durability, tangibility, and use (be it industrial or consumer). These
characteristics can be further explained as follows:

• Durability and tangibility

Products can be divided in to 3 groups namely:

Non-durable goods: -
These goods are tangible goods, which are consumed in one, or for few
uses for example tooth paste. Since they are consumed frequently they are to be

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made available in many in many of the locations, charge small markup, and
advertise more often.
Durable goods: -
These are tangible goods, which survive many uses for instance clothing,
book, and bags. These goods usually require more personal selling and service
command a higher margin and require more seller guarantee.
Services: -
These are intangible and normally require more quality control, supplier
credibility and adaptability.

• Usage: consumer goods classifications

The goods, which consumers buy, can be classified on the basis of shopping
habits. They can be distinguished among convenience, shopping, specialty and
unsought goods.

Convenience goods: -
These goods that the customer usually purchases frequently, immediately
and with a minimum effort. These goods can be further divided into: -
Staples: are goods consumers’ purchases on regular basis.
Impulse goods: are purchased without any planning or search effort.
Emergency goods: are purchased when there the need is urgent.
These goods are generally placed in many outlets to capture sale
when the customer needs them

Specialty goods: -
These are goods with unique characteristics or brand identifications for
which a sufficient number of buyers are willing to make a special
purchasing effort. Specialty goods do not involve making comparisons;
buyers invest time only to reach dealers carrying the wanted products.

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Dealers do not need convenient locations, however they must let

prospective buyers know their locations.

Shopping goods: -
These are goods that the customer in the process of selection and purchase
characteristically compares on such basis as suitability, quality, price and
style. For example clothing, bags. These goods can be divided into:

Homogeneous shopping goods: these are similar in quality, but

different enough in price to justify shopping comparisons.

Heterogeneous shopping goods: they differ in product features and

services that may be more important than price. The seller of
heterogeneous shopping goods carries a wide assortment to satisfy
individual tastes and must have well-trained sales people to inform
and advice customers.

PRODUCT MIX

A product is any offering that can satisfy a need or a want and a product mix is the
set of all products and items that a particular seller offers for sale.

A company product mix has a certain width, length, depth and consistency:
The width of a product mix refers to how many different products line the
company carries.
The length of a product mix refers to the total number of items in mix.
The depth of a product mix refers to how many variants are offered in each
product in the line.

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The consistency of the product mix refers to how closely relate the various
product lines are in the end use, production requirements, distribution channels or
some other way.

Culture: the brand may represent a certain culture. The BMW represents
german culture: organized, efficient, high quality.

Personality: the brand can project certain personality. BMW may suggest a
no-nonsense boss (person), a reigning lion (animal), or an austere palace
(object).

User: the brands suggest the kind of consumer who buys or uses the
product. We would expect to see a 55-year-old top executive behind the
wheel of a BMW, not a 20-year-old secretary.

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THE INDIAN AIR CONDITIONING INDUSTRY

In the past, the air conditioning (AC) industry reeled under a regime of high
taxation, which effectively acted as a damper to growth. The scenario underwent a
dramatic change in the 90’s with economic reforms and liberalization. Growing
industrialization and an expanding middle class with higher disposable incomes
led to a growth in air conditioners demand. With the environmental conditions
deteriorating in many of our cities due to increase in traffic density, population
growth and reduction in foliage cover, the consumer demand for these gadgets has
registered a substantial increase. Secondly, with heavy investments coming in the
information technology and telecom sector and a renewed governmental initiative
on strengthening agricultural infrastructure (cold storage), institutional demand for
air conditioners (ACs) has increased.

TYPES OF ACs
Various air conditioners available in different capacities to cater to different needs.
The basic types of air conditioners available in the market are

Window air conditioners:

These are suitable for small rooms with a negligible heat load. These are
easily fitted on window openings. The most popular sizes of window air
conditioners are 0.75 ton, 1.5 ton and 2.0 ton.

Split air conditioners:

The basic difference between window and split AC is that the compressor
of the later is placed away from the room to be cooled and connected with the
room-cooling unit with insulated piping. These can be placed on walls, floors and
ceiling. And they can generally be located according to the shape and requirement
of the room not necessarily by the location of windows.

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Vertical split AC:

These are the vertical indoor units that can be placed near the corners the
room so that the cool sir can be evenly distributed. Cooled vertical because of
being vertical and cooling, these machines are available in 3-ton capacities and are
ideally suited for shops, showrooms, restaurant and plan offices and medium sized
public areas.

Ducted splits:
These are designed to give the ultimate comfort and style of central AC.
The costs of installing these are comparatively higher because of the need to build
false dealing and ducting. These units are comparatively hidden away from view.
Only the cooling comfort is felt.

Centralized AC:
The central AC segment is more technology intensive and project oriented.
It caters mainly to institutional clients where capacity requirements are usually 50
TR and upwards.

DEMAND & SUPPLY

Present installed capacity of the industry (for Window ACs) is in the region of
0.75 million nos per annum. Correspondingly, the industry registered a sale of just
over 0.7 million units during 2003-04, as shown below:
Sales of windows ACs

Company 2003-2004
Carrier 110000
Blue star 100000
Voltas 98000
Hitachi 97500
Samsung 88700

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LG 76300
Videocon 62000
Others 98900
TOTAL 731400

Over the next two years, additional capacities to the tune of 0.45 million units is
expected to be added, bringing the total installed capacity of window ACs in the
country to 1.50 million units.
Considering that the overall demand growth rate will be around 20%, it would
amount to only 1 million units per annum by the year 2005. With new players
crowding the market, this would result in fierce battle for market share. Future
growth for central ACs is dependent largely on new user industries like software;
telecom, hotels, and food processing etc. the industry may witness a shake out of
marginal players with those having established brand names, financial strength
and strong marketing credentials surviving the game.

Air conditioner market update

The performance of the economy, in general, also has an influence over AC
sales. In a high growth economy, rising profits would induce the infrastructure and
commercial sector to go in for air conditioning systems.

The nature of industry is changing, due to environmental and energy concerns.

Under the 1990 Montreal protocol, all producers of ACs have to stop using ozone-
depleting substances from 2003 onwards. Indoor air quality is also emerging as an
important issue, which may lead to paradigm shifts in technology for cooling air.

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INDIAN TELEVSION INDUSTRY

India has the world’s larg est middle class of 200 million people of which 50
million are classified as big-ticket buyers. It is this group which is fuelling growth
in the economy. According to Socio Economic Classification, the groups SEC A
and SEC B represent educated urban consumers, making up 5.88 million
households in sixteen cities. More than 75% of SEC A and B homes live in eight
cities of India, and receive the greatest attention in respect of trendy and lifestyle
products. Today, over 35 million homes comprise the effective consumer base for
durables like automobiles, white goods, and consumer electronics

About 5 million color TV sets are sold in India each year. There are 51 million TV sets
in India and 30million Cable TV connections.

Competition hots up as more companies come in

In what is possibly the most fiercely competitive field in the country, involving
around 15 brands, it is the dramatic build-up of volumes that has sustained the
companies, especially in the last four years. During these years, the prices of
colour televisions have plunged while marketing costs have escalated
continuously, putting enormous pressure on the margins. Therefore, survival of
most of the colour television companies has meant increasing volumes
relentlessly. This was possible because the market grew at a compounded rate of
28 per cent for the last seven years.

25% growth in TV 18 Feb 2004

The Confederation of Indian Industry says in a survey that the leading drivers of
the country's manufacturing base are TV sets and computers, over thefirst six

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months of 2004. In the last six months of 2004, colour TV production expanded
25%, with the same order of growth expected in the first half of 2005.

Local TV brands dominate the domestic market, led by BPL, the market leader.
While Sony India markets itself as a premium brand, with a tiny share, Korea's LG
and Samsung have been making a strong challenge with aggressive advertising.

Indian consumers are extremely brand conscious, which has been a big help to the
Koreans but less so to Chinese TV makers. Despite low price offers, Chinese
companies have been hampered by poor joint venture partnerships, weak
distribution networking and inadequate investment in brand building.

Chinese TV makers entering the Indian market in the late 1990s included TCL,
Konka and Haier, but they have yet to hit anything like the potential that they have
found domestically on the Chinese mainland.

But with droughts easing, economists and manufacturers expect pent-up demand
to take up the trend for PC and TV sales strongly into the coming year.Indian TV
manufacturers are facing intense competition, not just from Japanese and South
Korean producers, but also from Chinese TV makers. A proliferation of satellite
and cable channels only appear to have gone so far in promoting demand, with
price cutting and greater choice of better models eating into profits.

Of the 12 or so Indian manufacturers, two companies are market leaders - BPL

and Videocon with a combined share of 28%. That's down from 35% in better
times.

South Korean producers LG and Samsung have been eating into market share,
with an aggregate 21%, relying on a wide range of models and sophisticated
distribution and after-sales services. These companies are also developing a local
manufacturing base to keep overheads down.

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Chinese TV makers have also made inroads, lead by TCL, Konka and Haier. But
despite offering lower prices than their foreign competitors, they appear to have
been let down by weak branding and distribution. Despite being price sensitive,
the Indian market is also very branding conscious. So the top Chinese brands have
been unable to meet the challenge provided by larger and more determined
marketing strategies.

Sony aims at flat screen demand

On the other hand, Japanese giant Sony has emphasized premium quality in
maintaining its admittedly small market share. Encouraged by the demand for flat
screen TVs, the company is considering concentrating only on these models. The
problem is that Sony's imported Trinitron picture tubes attracts a 35% import duty,
which puts the company at a disadvantage where it comes to price pressure.

BPL and Videocon have invested heavily in manufacturing plants and technology
to challenge foreign imports. The Indian giants also have wide distribution
networks and increasingly strong after-sales services on their side.

A wide range of products appears to be a key component to getting consumers to

switch brands. But this does contain a negative element, as retailers are an often
multi-brand dealer which means manufacturers have been forced to open exclusive
retail outlets, pushing up distribution costs.

A new trend seems to have emerged, as the Indian market has stagnated. Some
manufacturers, notably Samsung India, have been looking to take advantage of
low production costs to export TVs to Europe.

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RESEARCH DESIGN



















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5(
5 (6
6(($
$55& + '
&+ '((6
6,,*
*11


STATEMENT OF PROBLEM

The nature of this research is to identify opportunities for introducing

Hitachi brand television sets to the market. Thus project work deals with research
of the market to enable recommendation of strategies for brand extension of
Hitachi (AC) towards developing brand equity of television.

SCOPE OF STUDY

The study is conducted in the city of Bangalore over a period of two

months. It is intended to provide Hitachi with a good idea of the advantage of
brand extensions.
If the extensions are feasible within the constraints present, then television sets of
Hitachi brand will be launched.

OBJECTIVES
Primary objective
To determine the feasibility of brand extension of Hitachi AC for Hitachi
televisions.

Secondary objective
To determine effective strategies for extensions from the company after a
thorough study.

To understand the consumers perception towards brand Hitachi.

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SAMPLING UNIT

The basic unit of study used here is members of households who are either
decision makers or influence purchase decision to a large extent.

SAMPLE SIZE

Keeping in view of limited time, a sample of 100 respondents is taken.

It includes a mix of people from different income groups and occupations.

TOOLS AND TECHNIQUES USED FOR DATA COLLECTION

Primary data: the primary tool used for data collection is a structured
questionnaire. It contained qualitative and quantitative research questions to
understand the consumer attitude and perception towards brand extension.

Secondary data: books, magazines and internet have been used as secondary
source of data.

PLAN OF ANALYSIS

The data was tabulated and analyzed. The data is then interpreted and analysis is
done.

LIMITATION OF STUDY

* The study is limited to Bangalore city only. Findings and interpretation

thereof may not be applicable to other geographical locations.

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* It is a one time study.

* Field error- respondents may have provided responses, which differ from
what is actually true or correct.

CHAPTER SCHEME

The overview of the chapter scheme is as follows:

Chapter 1 : Introduction

Provides details of the topic under study and presents a short

theoretical back drop for the study.

Chapter 2 : Design of the study

Gives details about the statement of the problem, the scope of

the study, its objectives, the sample studied, the tools and
techniques used for data collection.

Chapter 3 : Profile of Hitachi home appliances (India) ltd.

This chapter gives the details of the organization Hitachi

Company.

Chapter 4 : Analysis of data

Includes the analysis of the data collected in the survey.

Relevant inferences are drawn from the analysis and are
presented in the chapter.

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Chapter 5 : Summary of findings, conclusion and recommendations

This chapter gives the summary of the finding drawn from the
survey and the relevant conclusions arrived at the same. It
also includes some suggestions.

























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COMPANY PROFILE














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&203$1<352),/( 

Hitachi, Ltd. first started out in 1910 as a humble electrical repair shop for a
copper mining company in Japan. The name Hitachi literally means "sunrise",
reflecting the founding philosophy of contributing to people and society through
technology. This philosophy has helped Hitachi become one of the world's largest
corporations today, employing approximately 340,000 employees globally.

In Singapore, Hitachi started with a liaison office in 1963 and expanded its
operations in 1972 to manufacture a wide range of products. In 1989, Hitachi Asia
Ltd. (previously Hitachi Asia Pvt. Ltd.) was established as one of Hitachi's four
regional headquarters with the other three in America, Europe and China. In 1990,
the company was awarded the Operational Headquarters (OHQ) status by the
Singapore Economic Development Board (EDB).

Hitachi’s relationship with India began in the year 1948. Later in 1974, Hitachi
opened a liaison office in New Delhi. Hitachi India Pvt. Ltd. and Hitachi India
Trading Pvt. Ltd. were set up in1997 (after take over of Hitachi liaison office) as
wholly owned subsidiary of Hitachi Asia Ltd, Singapore (HAS). HAS is one of the
four regional headquarters for Hitachi’s worldwide operation, the other three being
in North America, Europe and China.

Hitachi India Pvt. Ltd. (HIL) markets and sells products ranging from power and
industrial systems, information systems to electronic components as well as takes charge
of international procurement of materials and components. Their products include
semiconductors, electronic tubes, elevators and escalators, air conditioning and
refrigerating equipment, computers, telecommunication equipment and plant and
industrial machinery .They also provide a wide range of technical services in support of
these products.

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Business Activities

As regional headquarters, Hitachi Asia Ltd. (HAS) co-ordinates the marketing and
sales activities for IT, industrial, electrical and electronic products and solutions,
as well as conducts international procurement for Hitachi's manufacturing plants
worldwide. Since its establishment, HAS has grown rapidly both in operations and
size. It now has a network of 12 offices in eight countries across Asia Pacific, and
an annual sales turnover of approximately S$4.7 billion in fiscal year 2004 (ended
31 March 2005).

To diversify and expand its business operations, HAS has also vested interests in
regional ventures ranging from manufacturing facilities to trading companies,
design and customer service centers. In 1998, HAS was converted from a private
limited to a non-listed public company and granted Financial Treasury Center
status by Monetary Authority of Singapore (MAS) to enable it to issue bonds. The
conversion was aimed at strengthening its ability to provide financial support to
the Hitachi group in Asia.

Hitachi brand ACs is being manufactured by amtrex Hitachi appliance limited in

India. A joint venture agreement was signed in January 1999, with amtrex and
Hitachi as equal partners, each holding a 35.2 percent share of equity. Amtrex was
renamed as “Amtrex Hitachi appliances limited”.

Hitachi Home & life solution (India) Ltd., a subsidiary of Hitachi Home & life
Solutions, Inc., Japan, was first established in 1984. Headquartered in Gujarat. The
company’s manufacturing facilities at kadi and silvassa are among the seven
Hitachi room air conditioner facilities worldwide. The Indian plant also exports
Hitachi room air conditioners to the SAARC, Middle East and other tropical
countries in addition to catering to the Indian market.

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With sales of Rs.256.48 crores during the year Oct. 01- Sept 02, Hitachi H & L
India amongst the top three room air conditioner companies in India and has a
nationwide sales, distribution and service networks with 14 branch offices in
major Indian cities. Hitachi H & L is also a significant player in the commercial
refrigeration business in India with its manufacturing facility in kadi and strategic
alliances with IMI Corneius, UK and Orford Refrigeration, Australia.

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DATA ANALYSIS &

INTERPRETATION












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$1$/<6,6$1''$7$,17(535(7$7,21 

The research has been conducted to recommend a strategy for brand

extension of Hitachi (air-conditioners) towards developing brand equity of
televisions. The data has been collected through respondents’ responses to a
structural questionnaire issued to a random selection of customers of ‘Hitachi’ air -
conditioners.

The database of ‘Hitachi’ customers was obtained from Hitachi Home & Life
Solutions (India) Ltd. Further, the respondents have been chosen carefully in such
a manner that randomness has been ensured in their selection. The responses
collected through the questionnaire have been tabulated and analyzed.

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TABLE - 1

TABLE SHOWING THE RESPONDENTS AGE GROUP

AGE NO OF RESPONSES PERCENTAGE (%)

21-25 13 13
26-30 22 22
31-35 21 21
36-40 25 25
40 & above 19 19
TOTAL 100 100

Analysis:

From the above table it can be noticed that age group of 36-40 years are
major respondents for our research with 25%. And then it is followed by age
group of 26-30 and then by 31-35. But the brand awareness about the brand
HITACHI is finding in all age group.

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GRAPH-1

GRAPH SHOWING THE RESPONDENTS AGE GROUP

NO OF RESPONSES

30

25

20

15

10

0
21-25 26-30 31-35 36-40 40 & above

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TABLE-2

TABLE SHOWING THE GENDER OF RESPONDENTS

GENDER NO OF RESPONSES %
Male 67 67
Female 33 33
TOTAL 100 100

Analysis:

From table it is clear that males are the major respondents with 67% and
followed by females with 33%. Though there is huge difference in male and
female percentage but the response of male and female are taken considered
equally for the analysis.

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GRAPH-2

GRAPH SHOWING THE GENDER OF RESPONDENTS

80
70
60
50
Male
40
Female
30
20
10
0
NO OF RESPONSES

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TABLE-3

TABLE SHOWING THE MARITAL STATUS OF RESPONDENTS

MARITAL STATUS NO OF RESPONSES %

SINGLE 27 27
MARRIED 73 73
TOTAL 100 100

Analysis:

The above table indicates that 73% of our respondents are married and 27%
of our respondents are unmarried. Majority of respondents are married and more
of double incomes couples and thus it is clear that income plays major role in any
purchases.

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GRAPH-3

SHOWING THE MARITAL STATUS OF RESPONDENTS

80
70
60
50
SINGLE
40
MARRIED
30
20
10
0
NO OF RESPONSES

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TABLE-4

WHAT ARE THE CONSUMER DURABLES YOU HAVE PURCHESED LAST

3-5 YEARS?

DURABLES NO OF RESPONSES
Mobile phones 72
Others 56
Television 39
Music systems (VCD/DVD) 34
Washing machine 21
Refrigerator 19

Analysis:

From the table we can see that maximum of our respondents have brought
mobile phones with 72 respondents out of 100 then followed by others with 56
responses which includes ACs, mixture, & so on. Television is the next
consumer durable with 39 respondents purchased in last 3-5 years. Purchasing
mobile phones in last 3-5 years, reason for this would be that mobile phones
are becoming necessities. Next followed by music systems and televisions.

MPBIM 39
 HITACHI

GRAPH-4

80 Television
70
60 Refrigerator
50
Mobile phones
40
30 Washing
machine
20
Music systems
10 (VCD/DVD)
0 Others
NO OF RESPONSES

MPBIM 40
 HITACHI

TABLE-5

DO YOU KNOW THE BRAND “HITACHI”?

AWARENESS NO OF RESPONSES %
Yes 88 88
No 11 11
Total 100 100

Analysis:

From the above table we can analyze that 88% of our respondents know the
brand Hitachi. Only a small percent of our respondents are not aware of brand
Hitachi.11% of respondents are not aware of the brand HITACHI. And it is
noticed that there is high percentage of unawareness in male.

MPBIM 41
 HITACHI

GRAPH-5

100
90
80
70
60
Yes
50
No
40
30
20
10
0
NO OF RESPONSES

MPBIM 42
 HITACHI

TABLE-6

HOW OFTEN YOU CONSIDER REPLACING A TELEVISION?

YEARS NO OF RESPONSES %
2-4 11 11
5-7 49 49
8-10 27 27
10 & above 13 13
TOTAL 100 100

Analysis:

The table above shows that our respondents feel replacing their television
after 5-7 years. About 27% of our respondents said that they replace their
television after 8-10 years. The reason we find is that, change in technology with
fall in price. And it again depends on the individual perception towards the
television.

MPBIM 43
 HITACHI

GRAPH-6

60

50

40 2 to 4 yrs
5 to 7 yrs
30
8 to10 yrs
20 10 & above

10

0
NO OF RESPONSES

MPBIM 44
 HITACHI

TABLE-7

WHO INFLUENCES THE MOST WHILE PURCHISING THE TELEVISION?

NO OF RESPONSES %
Children 36 36
Wife 12 12
Husband 9 9
House holds/entire family 13 13
Friends 13 13
Others 17 17
TOTAL 100 100

Analysis:

From the above table we can notice that children lead in decision-making
while purchasing television with 36% & rest of the members of the family shares
almost equal percent of decision making in purchase. Children in a family play a
major role in purchasing the television. Reason for this above result are- high
percentage of our respondents is married.

MPBIM 45
 HITACHI

GRAPH-7

Children
40

35
Wife
30

25
Husband
20

15
House
10 holds/entire
family
5 Friends
0
NO OF RESPONSES
Others

MPBIM 46
 HITACHI

TABLE-8

RATE THE FOLLOWING FACTORS YOU CONSIDER BEFORE

MAKING YOUR PURCHASING DECISION ON TELEVISION?

Very important Fairly important Not important

BRAND 81 12 7
PRICE 57 30 13
FEATURES 50 48 2
AFTER SALES SERVICE 68 27 5
IMAGE OF SHOWROOM 23 24 53
GURANTEE/WARRANTY 90 10 -

Analysis:

Above table clearly shows that brand and guarantee is very important for
our respondents. Then comes the after sales service. Image of showroom is not a
major consideration for our respondents. Consumers also prefer for brand, & after
sales service in any purchase of television.

MPBIM 47
 HITACHI

GRAPH-8

100
90
80
70
60 Very important
50 Fairly important
40 Not important
30
20
10
0
M

TY
E

ES

E
D

O
IC

C
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AN
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R

VI
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R
R

W
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SH
S
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IM
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MPBIM 48
 HITACHI

TABLE-9

WHAT ARE THE TELEVISION BRANDS ARE YOU AWARE OF?

BRANDS NO OF RESPONSE %
Samsung 24 24
LG 21 21
Sony 17 17
Philips 6 6
Videocon 9 9
Others 23 23

Analysis:

From the table we can notice that Samsung and LG brands are well-noticed
brands in television. Samsung with 24% & LG with 21%. Maximum respondents
are aware of Samsung & LG; reason for this would be the advertisements that they
are giving.

MPBIM 49
 HITACHI

GRAPH-9

30

25
Samsung
20 LG
Sony
15
Philips
10 Videocon
Others
5

0
NO OF RESPONSE

MPBIM 50
 HITACHI

TABLE-10

DO YOU FIND ANY SIGNIFICANT DIFFERENCE BETWEEN THE

FEATURES OFFERED BY DIFFERENT BRANDS?

NO OF RESPONSE %
Yes 52 52
No 48 48
TOTAL 100 100

Analysis:

From the table we can notice that there is not much difference in the
respondents view to this questionnaire. Since every brand gives almost the similar
features in their television, it’s really hard to come to the conclusion from the
above data.

MPBIM 51
 HITACHI

GRAPH-10

52

51

50

49 Yes
No
48

47

46
NO OF RESPONSE

MPBIM 52
 HITACHI

TABLE-11

DO YOU USE ANY OF HITACHI PRODUCTS? IF YES, MENTION THE

PRODUCT?

NO OF RESPONSES %
Yes 32 32
No 68 68

Analysis:

Only 32 out off 100 respondents are using HITACHI products at their
homes. Since air conditioning is the only product available in Indian market our
maximum respondents are using this product. Only few of our respondents are
using products like television & music systems other than air conditioning.

MPBIM 53
 HITACHI

GRAPH-11

80
70
60
50
Yes
40
No
30
20
10
0
NO OF RESPONSES

MPBIM 54
 HITACHI

TABLE-12

WOULD YOU CONSIDER BUYING TEEVISION OFFERED BY THE

HITACHI?

NO OF RESPONSES %
Yes 88 88
No 12 12

Analysis:

From the data collected we could come to conclusion that 88% of or

respondents would like to buy HITACHI television. But in this 88% of
respondents would consider as a second option or an additional to their family
requirement. But 12% of respondents said that they don’t want to consider Hitachi
television even for second option because they feel that Hitachi television cannot
be good as brands like Sony, Samsung and soon.

MPBIM 55
 HITACHI

GRAPH-12

100
90
80
70
60
Yes
50
40 No
30
20
10
0
NO OF RESPONSES

MPBIM 56
 HITACHI

TABLE-13

WHAT OTHER NEW PRODUCTS OF HITACHI WOULD YOU

CONSIDER BUYING?

NO OF RESPONSES %
Television 30 30
Music system 15 15
Kitchenware 12 12
No response 43 43

Analysis:

Other than television our respondents even like to have a products like
music systems and kitchenwares. Maximum of our respondents were not able to
think of any products under brand HITACHI.

MPBIM 57
 HITACHI

GRAPH-13

50
45
40
35
Television
30
Music system
25
Kitchenware
20
15 No response
10
5
0
NO OF RESPONSES

MPBIM 58
 HITACHI

TABLE-14

WHAT ARE THE FEATURES WOULD YOU LIKE TO HAVE IN YOUR

NEW TELEVISION?

RESPONSES
Personal folder 11
Design/attractive 6
No response 63

Analysis:

Most of our respondents could not able to answer to this question. A very
few respondents could think about and said they like to have personal folder and
impressive design.

MPBIM 59
 HITACHI

GRAPH-14

70
60
50
Personal folder
40
Design/attractive
30
No response
20
10
0
RESPONSES

MPBIM 60
 HITACHI

TABLE-15

WHERE DO YOU PREFER TO PURCHASE TELEVISON?

NO OF RESPOSES %
Company showroom 23 23
Multi brand show room 67 67
Exhibition/trade show 4 4
Exclusive sales service 6 6
TOTAL 100 100

Analysis:

From the above table we can analyze that about 67% of respondents want
to make their purchase in multi branded show room then followed by company
show room with 23%. Consumers like to compare their choice of television before
they confirm purchasing of one particular brand and hence they to purchase
television in multi branded showroom.

MPBIM 61
 HITACHI

GRAPH-15

80
70 Company
60 showroom
50 Multi brand
show room
40
Exhibition/trad
30 e show
20 Exclusive
10 sales service
0
NO OF RESPOSES

MPBIM 62
 HITACHI

FINDINGS,
CONCLUSION &
SUGGESTIONS

MPBIM 63
 HITACHI

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The research has been conducted to recommend a strategy for brand

extension of Hitachi (air-conditioners) towards developing brand equity of
televisions. The data has been collected by way of structural questionnaire.

The responses collected through the questionnaire have been tabulated and
analyzed. The relevant findings and observations are presented in this chapter.

MPBIM 64
 HITACHI

SUMMARY OF FINDINGS

• Majority of respondents are married and more of double incomes couples.

• Maximum of our respondents have purchased mobile phones in last 3-5

years, reason for this would be that mobile phones are becoming
necessities. Next followed by music systems and televisions.

• 88% of our respondents are aware of brand HITACHI. And 11% of

respondents are not aware of the brand HITACHI.

• 49% respondents considered replacing their appliances every 5 to 7 years.

• Children’s in a family plays a major role in purchasing the television.

• Most of our consumers would give preference for brand, after sales service
and guarantee in any purchase of television.

• Only about 32% of our respondents are using Hitachi products compared to
the brands like Samsung, LG and soon.

• 88% of our respondents are willing to purchase Hitachi television. But 12%
of our respondents said that they don’t want to consider Hitachi television
even for second option because they feel that Hitachi television cannot be
good as brands like Sony, Samsung and soon.

• Consumers like to compare their choice of television before they confirm

purchasing of one particular brand and hence they to purchase television in
multi branded showroom.

MPBIM 65
 HITACHI

• Brands such as LG, Samsung, Sony, Philips and BPL enjoyed very high
customer awareness.

• High percentage of respondents agreed that id a brand offers more products;

it gains more attention of the buyer.

• Respondents consider dealers’ advice as being fairly important which

indicates that modern customer considers himself well informed and thus
feels confident of making the right choice on his own.

• Consumers would seriously consider buying other products of a brand if

they were extremely satisfied with one product of the brand. This indicates
that brand extension has worked as an effective strategy in the Indian
consumer durable market.

MPBIM 66
 HITACHI

CONCLUSION
The primary objective of this study was to determine the feasibility of brand
extension of television for Hitachi appliances.

The findings were recorded based on collection of data and analysis. Based on the
analysis and findings, the following conclusions have been made:

This study has enabled me to understand the various intricacies that go into
understanding buyer behavior regarding consumer durables. The industry, which
had hitherto few major players, has today exploded into a battleground with major
players vying with each other to get buyers’ attention.

The customer today is bombarded with advertisements and endorsements that

promise value for money. Most respondents even seemed confused at the mélange
of brands in the market today.

Brand extension seems to have worked exceedingly well for brands like LG &
SAMSUNG though it remains to be seen whether the market is saturated for such
a strategy. On the whole respondents did showed a positive response towards
brand Hitachi.

MPBIM 67
 HITACHI

SUGGESTIONS

• Television presents the most promising opportunity for Hitachi in

terms of brand extension. Hence there is still huge lower middle
class market, which is untapped.

• Company must work on its image. Emotional advertising has

worked well for the other brands and while suggesting that it may
be stupid for the company to change its marketing pitch
overnight, it would be useful for Hitachi to make advertisements
that appeal to the masses emotionally while promoting the
technology strength of the product.

• An innovative display of television definitely appeals to eye of the

discerning buyer. Since most respondents preferred making a
purchase from multi-brand showrooms where different brands are
displayed.

• An innovative sales promotion schemes effectively timed during

peak or festive seasons. Because nothing catches the attention of
the Indian buyer as much as a lucky draw or other sales promotion
offers.

• As mentioned in the study, performance, durability, after sales

service and guarantee/warranty are the main factors besides

MPBIM 68
 HITACHI

brands that determine the product that the customer will purchase.
A product that fulfils the expectations of the customer with respect
to the above mentioned factors.

MPBIM 69
 HITACHI

BIBLIOGRAPHY

MPBIM 70
 HITACHI

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BOOKS:

Philip kotler; Marketing Management; The Millennium Edition; Prentice Hall

of India Pvt. Ltd.; New Delhi; 2000.

S.A.Sherlekar; P.N.Reddy; H.R.Appanaiah; Essentals of Marketing

Management; Fourth Edition; Himalaya Publishing House; Mumbai;1993

WEBSITES:

www.hitachi-hli.com

www.project.com



MPBIM 71
 HITACHI

ANNEXURE

MPBIM 72
 HITACHI

QUESTIONNAIRE

Age-

Sex-

Marital Status-

What are the consumer durables you have purchased in last 3-5 years?

Television
Refrigerator
Mobile phones
Washing machines
Music systems (VCD/DVD)
Others

Do you know brand HITACHI?

Yes
No

How often you consider replacing a television?

YEARS
2-4
5-7
8-10
10 & above

Who influences the most while purchasing the television?

Husband

MPBIM 73
 HITACHI

Wife
Children
House holds/ entire family
Friends
Others

Rate the following factors you consider before making your purchase decision on
television?

VERY FAIRLY NOT IMPORTANT

IMPORTANT IMPORTANT
Brand
Price
Features
After sales service
Image of showroom
Guarantee/warranty

What are the brands are you aware of in televisions?

Do you find any significant difference between the features offered by different brands?

Yes
No

Do you use any of HITACHI products? If yes, mention the product?

Would you consider buying television offered by the HITACHI?

Yes
No

What are the other products of HITACHI would you consider buying?

MPBIM 74
 HITACHI

What are the features would you like to have in your new television?

Where do you prefer to purchase television?

Company showroom
Multi-brand showroom
Exhibition/trade show
Exclusive sales & Service

MPBIM 75