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Chapter-1 (Consumer Behavior with regard to refrigerator Industry) Chapter-2 (Present Scenario of Whirlpool India Limited in Refrigerator Market) Chapter-3 (Survey Reports) Finding & Analysis Conclusion Limitation References
Chapter -1
CONTENTS : Introduction Consumer Behavior Who is Consumer A Modal of Consumer Behavior Factors Influencing C.B. The Decision Process Application of C.B. In Marketing
INTRODUCTION
Consumer behavior is one of the most complex puzzles before the marketer, which he has to understand and solve essentially. Consumer behavior can be defined as the decision process and physical activity engage in when evaluating, acquiring, using or disposing of goods and services, The study of consumer is the study of how individual makes decision to spend their available resources (time, money and effort) on consumption related time. There are a number of influences affecting the purchase, and number of the individuals may be involved in exerting these influences, so the purchase action that is visible to us may be the result of interplay of number of complex and hidden variables which may have influenced the ultimate purchase activity. So the consumer behavior includes not only the actual buyer and his act of buying, but also the various roes played by different individuals and the influences they exert on the final purchase decision. The study of consumer behavior enables marketer to understand and predict consumer behavior in the market ace. It also promotes understanding of the role that consumption plays in the lives of the individuals. As marketer and future marketer it is important for one to recognize why and how individuals make their Consumption decisions, So that they can make better strategic marketing decision. If marketer understand consumer behavior and they are able to predict how consumer are likely to react to various informational and environmental cues, and are able to shape their marketing strategies accordingly they might have good competitive advantage in the marketplace.
CONSUMER BEHAVIOUR
The reason for business firm to come into being is the existence of a costumer who has unfulfilled needs and wants. To fulfill these consumer needs an organization is set up. It is important for the survival and growth of the organization that it ngu1irh raises questions like- who are the consumers of the products and service? Why do these consumers buy your brand and not that of your competitors? After having bought your product does he feel satisfied or dissatisfied? And how are these feelings reflected in their behavior as consumers? It is only through such a process of questioning and seeking that you can be sure of keeping your firm on the growth path. Thus a through knowledge of the consumers and an understanding of their behavior are essential for every firm. As consumers we differ in terms of our sex, age, education, income, religion, nationality and social status. Because of these different backgrounds we have different needs and we buy only those products and services that we think will satisfy our needs. In marketing terminology, specific type groups of consumers, buying different product or Variations of the same basic product represent different market segment.
To successfully market to different market segments, the marketing manager needs appropriate marketing strategies which he can design only when he understands the factors which account for these differences in consumer behavior and tastes.
WHO IS CONSUMER
One thing that we all have in common is that we all are consumers. Is tact everybody, in this world is a consumer. Everyday of our life we arc buying and consuming an incredible variety of goods and services. However we all have different tastes, likes and dislikes and adopt different behavior patterns while making purchase decisions. Traditionally consumers have been defined very strictly in terms of economic goods and services. i.e. goods and services where a monetary transaction is involved. A customer is one who actually purchases the product or service from a particular organization or shop. A customer is always defined in terms of a specific product or company. Thus the term consumer is a far wide term encompassing not only the actual buyer or customer but also all its users, i.e. consumers. Very often the actual customer making a purchase may not be doing it for himself / herself. For instance- a father is buying a. TV for the family. Although the father is the customer but all the family members are consumers. The table given below classifies the different routes the people can on the context of consumer behavior. Role Initiator Buyer User Influencer Description The person who determines that some want or need is not being met The person who actually makes the purchase The person who actually uses or consumes the product or service The person who intentionally / unintentionally influence the decision to buy the actual purchase and/or use of product or service.
A MODEL OF CONSUMER BEHAVIOUR A consumers decision to purchase a particular product or service is his result of a number of variables. The starting point for the decision process is provided by the companys marketing, stimuli in the shape of the product, promotion and distribution strategy. The marketing stimuli are received by the potential consumer, along with the other stimuli already existing in the environment. These stimuli maybe social, economic, cultural, technological or political in nature. At the point of receiving the marketing stimuli, he consumer already has a certain mental, emotional and psychological frame of mind developed over the years by his cultural, religious, social, family and psychological background. However most of these factors exert their influence at the subconscious level so that the consumer is not really aware of their existence or working. When a stimulus is received the consumer goes through an elaborate process of decision making in terms of receiving, retaining, interpreting and evaluating the stimuli according to his own framework. Depending on the nature of the product being purchased, this process may work at the sub- conscious level or it may be overt, the time taken to make the decision may vary from a few seconds to a few days or months. The buyer characteristics and buyer decision process in conjunction with marketing stimuli lead to a decision to either buy the product or no to buy.
FACTORS INFLUENCING CONSUMER BEHAVIOR Consumer behavior is affected by a host of variables ranging from personal motivations, needs, attitudes, and Values, personality characteristics socio- economic and cultural background, age, sex, professional status, to social influences of various kinds exerted by family, friend, colleagues and society as a whole. The combination of these factors has a different impact on each one of us manifested in our behavior as consumers. PSYCHOLOGICAL FACTORS Consumers needs and motivation: We all have needs and we consume different goods and services with the expectation that they will help fulfill these needs. When a need is sufficiently pressing, it directs the person to seek its satisfaction. It is known as motive. All our needs are classified into two categories Primary and secondary. Primary needs and motives are the psychological needs, which we arc horn with such as the needs for air, water, food, clothing etc. The secondary needs are our acquired needs, which we have developed in response to the society and the environment in which we live. The secondary needs are the result of the individual psychological make-up and his relationship with other members of the society. The secondary needs may include the need for power, prestige, affection, status etc. All human needs can be classified into five hierarchical categories into this hierarchy is universally applicable. Maslow propounded the theory of hierarchy of needs. The hierarchy needs can be ranked in order of importance from low biological needs to the higher level psychological needs. Each level of unfulfilled need motivates the individuals behavior, and as each successive level of need is fulfilled people keep moving on to the next higher level of need. The five levels of need are: Physiological needs: food water, air, shelter, etc Safety and security need: protection, order, stability etc. Social needs: Affection, friendship, belonging etc,
Ego needs: Prestige, status, success, etc Self actualization needs: Self fulfillment Maslows hierarchy of human needs helps us understand consumer motivations. It is useful for the marketer who can identify what. Generic level need these products are capable of fulfilling and accordingly position his product.
PERCEPTION The second major psychological factor that influences consumer behavior is perception. Perception can be described as how we see the world around us. All the time we are receiving messages through our sensory organs. The different sights, sounds, smells tastes and sensations that we feel are stimuli. Each person recognizes, selects, organizes and interprets these stimuli in his own individual manner based on his needs, values and expectations which are unique. Thus each individuals perception is unique. There are three aspects of perception which are of importance to the marketer: Selective Exposure: You must have noticed that when you are on the lookout for purchasing a specific product , be it camera, T.V or any other high value product or service you, suddenly seem to notice more than the usual number of advertisement pertaining to that specific product. This is because of selective perception. People are more likely to notice stimuli, which relate to their immediate need. Selective distortion: Let us suppose you have decided to purchase a specific brand A of refrigerator. Since you already have made this decision you would seek only that information that reinforces the correctness of your decision. When you attempt to fit information to suit your own ideas or personal meaning, the process is known as selective distortion. Thus a marketer may find that his message is often not received in the intended manner, but is twisted in different ways by different consumers
Selective retention: People forget much of the stimuli they receive and only retain that. Information that reinforces their value and decision. You are more likely to remember the positive features of the brand you are going to buy, since it helps to reassure that the decision that you made was correct. PERSONAL FACTORS A consumers purchase decisions are also affected by his personal characteristics such as his age, sex, education, occupation, income and his overall concept and personality Demographic factors: The first factor influencing a buyers decision is his age. The need for different products and services changes with age. There are also certain physiological differences between men and women which result in they having different consumption needs. Education and occupation: Education widens a persons horizon, refines his tastes and makes his outlook more cosmopolitan. An educated person, as compared to somebody less educated, is acre likely to consume educational facilities, books, and magazines. The occupation also shapes the consumption needs. People following specialized occupations such as photography, music, carpentry, etc need special tools and equipment. Apart from this the status and role of a person within an organization affects his consumption behavior. Income: The income which a person earns is an extremely important on his consumption behavior. He may aspire to buy goods and services, but his income may be a constraint. Income in this context really refers to the income available for spending. The persons attitude towards spending versus saving and his borrowing power are also important influencing factors.
Life Style: Life styles are defined as patterns in which people live as expressed in the manner in which they spend money and time on various activities and interests. Life style is a function of our motivation, learning, attitudes, beliefs and opinions, social class, demographic factors, personality etc.
SOCIAL FACTORS Reference Groups: As a consumer, your decision, to purchase and use certain product and services, is influenced not only by psychological factors, your personality and life style , but also by he people around you with whom you interact and the various groups to which your belong. The group with whom you interact directly or indirectly influence your purchase decisions and thus their study is of great importance to marketers. A group is defined as two or more people who interact to achieve individual or common goals. The three categories of groups, which are important for the marketer to understand, are: Primary and secondary groups: A primary group is one with which an individual interacts on a regular basis and whose opinion of importance to him. Family, neighbors, close friends, colleagues coworkers are examples of primary groups. Secondary groups those with which an individual interacts only occasionally and does not consider their opinion very important. Formal and informal groups: A formal group has a highly defined structure specific roles, and authority positions and specific goals. Rotary, Lions are some of the wellknown social groups. Labor unions, social groups and societies are other type of formal groups to which individuals may belong. Membership and symbolic groups: A membership group is one to which a person belongs or qualifies for membership. All workers in a factory qualify for membership to
the labor union. A symbolic group is one, which an individual aspires to belong to, but is not likely to be received as a member. Any of these can serve as a reference group for a consumer if it serves as a point of reference or comparison on the formation of the values, attitudes and behavior. The concept of reference group is a very wide one and includes both direct and indirect individual and group references. Indirect reference groups comprise those individuals or groups with whom an individual does not have any direct face to face contact, such as film stars, TV stars, sportsmen politicians. Reference groups are used in advertising to appeal to different marketing segments. The three types of reference group appeals most commonly used are: Celebrities Experts, and The common man Direct references groups, which exert a significant influence on consumers purchase decisions and behavior, can be classified into six categories: The family Friendship groups Formal social groups Formal shopping groups Consumer action groups Work groups CULTURAL FACTORS Culture is an extremely critical and all pervasive influence in our life. It is a mould in which we are all cast, and it controls our daily lives on many unsuspected ways. The
study of culture encompasses all aspects of a society such as its religion, Knowledge, language, laws, customs, traditions, music, art technology etc. All these factors make up the unique, distinctive personality of each society. Culture can be defined as the sum total of learned beliefs, and customs which serve to guide and direct the consumers behavior of all members of that society. Culture is learned through the following three ways: Formal learning: In which parents and elders teach children the proper way to behave. Informal Learning: In which we learn by imitating the behaviors of our parents, friends, or watching T.V Technical learning: In which instruction are given about the specific method by which certain things have to he done such as painting dancing, singing etc. Though a marketer can influence three types of learning through his companys advertising strategy, it is informal learning, which is most amenable to such influences. The kinds of product and advertising appeals that can work effectively in a society depend largely on its cultural background. In the Indian society, conformity, spiritualism, respect for the elderly, traditionalism and education are some of the dominant cultural values. However, our society is undergoing a cultural metamorphosis and you can discern some major cultural shifts, which have far reaching consequences for the introduction of a vast variety of new products and services.
DECISION PROCESS
We hove defined consumer behavior as the decision process and physical activity engaged in by individuals. The physical activity, which we locus upon in the course of consumer behavior, is that of making the purchase. But there are a number of influences affecting the purchase and a number of individuals may be involved in exerting these influences. So the purchase action that is visible to us maybe the result of interplay of a number of complex and hidden variables which may have influenced the ultimate purchase activities. The final purchase is just one activity in the entire series of physical and mental activities that may have occurred in this whole process. Some of these activities exert influence on the purchase; they are considered a part of consumer behavior, more specifically a part of the decision process. Depending on the nature of product or service in question, the mental decision process accompanying the physical act of purchase may vary from very simple to extremely complex and from being instantaneous in nature to time consuming and elaborate. But they Oil constitute consumer behavior. Thus, not only the overt, observable physical behavior exhibited in the art of making a purchase, but all the accompanying preceding and following mental process and activities arc also an integral part of consumer behavior.
PROCESS OF DECISION MAKING The most basic and important requirement for the marketer is to understand how consumers make choices. Ajzen and Fishbein have attempted to explain human choice behavior in their theory of reasoned action, which states that Generally speaking human are usually quite rational and make systematic use of information available to them.
People consider the implications of their actions before they decide to engage or not to engage in a given behavior. Thus making a decision is a rational and conscious process in which the consumer evaluates each of the available alternatives to select the best among them. Each decision you make involves an elaborate mental thought process, a degree of active reasoning, though on the surface it may not always seem to be so. This may be because over a period of time you have taken certain decisions so many times that they now seem to be made almost automatically; a tint is not true at all. Depending on the type of decision being made. The degree and strength of active reasoning will vary. STAGES IN THE BUYER DECISION PROCESS Every buying decision involves an element of active reasoning. In making a purchase decision the consumer goes through the five stages of: Problem recognition Pre- purchase information search Evaluation of alternatives Purchase decision Post purchase behavior However in case of routine purchases, the consumer may skip the second and third stages and straightaway go to the stage of purchase decision. But in case of purchase decision involving extensive problem solving, the consumer is likely to go through all live stages in the specified sequence. The important thing to note is that the buying process starts much before the actual purchase and has implications even after the purchase has been made. This should give ideas to the marketer as to how he has to start designing his marketing strategy in order to achieve his specified marketing objectives.
Chapter -2
(PRESENT SCENARIO OF WHIRLPOOL India Limited in refrigerator market)
CONTENTS : Indian Refrigerator Market Company profile Whirlpool in India : Whirlpool Home Appliances Product Range Marketing Strategy Of Whirlpool
refrigeration business. In 1996 Whirlpool of India, (WOI), came into being with the merger of washer and refrigerator businesses. The tremendous potential of the India market can be gauged from the fact that in this country there is a growing middle class whose consumption and living standards today are comparable to those of western economies in the 1960s. This places India on the threshold of phenomenal economic growth. Whirlpools goal in India is to become the most profitable producer of T-4 products in this country. Whirlpool intends to attain market leadership in the refrigeration business by 1998 and in washers by the year 2OO The Company also intends to enter the market for air conditioners and microwave ovens in the near future. WHIRLPOOL PROFILE Whirlpool Corporation, today the worlds leading manufacturer and marketer of major home appliances began in 1911 with the dream of one American entrepreneur-Louis Upton. Headquartered in Benton Harbor, Michigan, USA the company manufactures in 12 countries and markets products in approximately 140 countries under major brand names such as Whirlpool, Kitchen aid, Roper, Estate, Bauknecht, Laden and lgnis. Whirlpool is also the principal supplier of major home appliances under the brand name Kenmore to Sears Roebuck and Co. (a relationship that began in 1916). Though its international outlook was initiated in 1958 when it entered Brazil, the 80s marked the beginning of Whirlpools aggressive strategy to be a world-wide competitor.
WHIRLPOOL INDIA Whirlpools presence in India can be traced back to the year 1989 it established its joint venture with the TVS group to manufacture compact washers for the Indian market. In 1995 Kelvinator of India was acquired. The same year saw majority control in TVS Whirlpool Ltd. and the company was renamed Washing Machines Limited. In 1996 Whirlpool of India (WOI) was formed with the merger of the Refrigerator and Washer companies.
The refrigerator facility is located at Faridabad and manufactures a complete range of direct cool refrigerators. With the infusion of technology, machinery and streamlining the processes the capacity of this plant was increased from 7,00,000 to 10,00,000 annually. Whirlpool refrigerators manufactured in this plant are customized to suit the Indian conditions and requirements of the Indian consumer while matching Whirlpools global quality standards. The washer facility is located at Pondicherry and manufactures both fully automatic and semi automatic washers. Constant feedback is taken from the consumers resulting in products being continuously upgrade in market share. The washer facility was awarded the ISO-9002 certification in 1996. Whirlpools commitment to the Indian operation has resulted in the setting up of a stateof-the art facility for the manufacture of no frost refrigerators at Ranjangaon near Pune. This facility will set the standards as one of the worlds front runners in environmentally sensitive eco-friendly manufacturing units. The product design has been developed on the feedback received from extensive consumer surveys. This facility is slated for completion in early 1998. Whirlpool of India firmly believes in taking its values and philosophy into its supply chain and has developed an extensive network of Carrying and Forwarding Agents (C&FAs) to ensure speedy dispatch of products from the factory. Design engineering is being developed as a core competency for Whirlpool of India. A step in the direction has resulted in the setting up of Regional Technology Centers at Pune focusing on and at Pondicherry for washers. This will provide WOI with a competitive edge in speedy customization of products suited to consumer needs. An important aspect to the noted here is the brand name Kelvinator king in refrigerators was used by whirlpool till 1996 end & now Electrolux has taken over the brand ownership in this country.
WOI has driven up a subsidiary T4 agenda for itself To harness product synergies To strengthen the distribution chain To slash overheads To renationalize finances
PRODUCT RANGE REGRIGERATORS WASHING MACHINES REGRIGERATORS S. No. 1. 2. CAPACITY (LTR) 310 220 Direct Cool Refrigerators Sterling Supreme Flexigerater MPR 15378 11800
3.
WHIRLPOOL IN INDIA: WHIRLPOOL HOME APPLIANCES Name: Whirlpool of India Limited Share Holding Pattern Country of Origin Factories : 100% Subsidiary of whirlpool Corporation : USA : (a) Direct Cool Refrigerators Faridabad), Haryana (b) Semi Automatic and Automatic Washing Machine (Pondicherry (c) Frost Refrigerators (Ranjangaon)
STRATEGY
Segmentation The Refrigerator industry can be segmented on the basis of social class and income group (demographic segmentation). Whirlpool has (lone the market segmentation as given below.
TARGETING Whirlpool of India has intelligently targeted level, middle and upper class income groups as this is the group looking for better products and willing to pay a little premium for international quality products. Whirlpool believed that with rising income and increasing westernization it could upgrade the refrigerator market and could be willing to pay a few rupees more for a quality Whirlpool realized that 85% of the Refrigerator market comprised and reliability played a major role in their purchasing decision.
Positioning In the refrigerator market which is heavily cluttered both in terms of brand varieties and corresponding messages, it is very difficult to differentiate and position a product as mundane in the mind of consumers to show him to become a loyal user. Whirlpool of India positioned itself as a company of global structure, but one which listened carefully to its local customer. For instance, it showed an engineer of foreign
origin. Explaining how the compressor was modified to stand up to high voltage fluctuations based on feedback from Indian housewives.
product like. Adjustable door trims, fully flexible door shelves, clean back or external condenser, Fold-back shelf etc. Creation of Product The whirlpool range of refrigerator are designed and manufactured with utmost care, to ensure to give trouble free performance for years. The whirlpool provides more flexibility than any other refrigerator and provides complete freedom to create space as per need.
Price Whirlpool has followed a pricing strategy so as to appeal to the mass market buyers. Whirlpool believed that with rising incomes and increasing westernization. It could up grade the refrigerator market and consumes could be willing to pay a little more for a quality product. Hence prices are kept 3% more than the nearest competitor, Godrej, refrigerator i.e. the premium for a quality product. Place Whirlpool firmly believes in taking its values and philosophy into its supply chain. The company commitment extends to encompass its extensive network of distributors and dealers who are looked upon as partners in growth, and an integral part of the whirlpool family The products are transferred from factory to carrying and forwarding agents (C&FAs). The C&FAs dispatch the goods to direct dealers or distributors who further supply the retailer.
Promotion Despite the uphill task of establishing a virtually unknown brand like whirlpool in the Indian market, the company has knocked off a healthy 22 percent of the market in less than 29 months. Whirlpool spent a whopping Rs. 134.50 cores between October 96 and December 97 on sales and promotion. The promotion is through TV press and hoarding but the major chuck is going into lavish dealers schemes. The Strategic Investments are in like with the companys overall strategy to the relatively unknown whirlpool brand name in emerging markets like India. Various type of promotional tools used are * Scratch a-gift offer-customer related scheme * Point of purchase support * Joint promotion e.g. AKAT, Whirlpool
* Cooperative Advertising * Exchange Schemes * Finance Schemes (0% interests) * Prices offers * Festival discounts * Relaxed credit schemes for dealers * Off season discounts
Chapter -3
(Survey reports) CONTENTS :
Objective of the Study Research Methodology Consumer Survey Report Dealers Survey Reports
OBJECTIVE OF THE STUDY To find out the market potential of refrigerators in Agra Assessment of market share of different brands of refrigerators Awareness level of target market: a) About types of refrigerators, i.e. range and different brands b) Sources of awareness Study of the relative implication of buyer purchase decision
PRI MARY METHODOLOGY The research methodology used in the project is as follows: TYPE OF DATA RESEARCH APPROACH RESEARCH INSTRUMENT TYPE OF QUESTIONS SAMPLING PROCEDURE SAMPLING AREA METHOD OF DATA COLLECTION PRIMARY SURVEY RESEARCH QUESTIONNARE OPEN AND CLOSE ENDED RANDOM AREA SAMPLING AGRA PERSONAL CONTACT
SAMPLING UNIT
SAMPLE SIZE
100
CONSUMER SURVEY REPORT A consumer survey was conducted where the responses and requirements of the market were gauged various facilities, social gatherings etc. were targeted and survey was conducted on people from different income groups. The sample size is 50. The survey report talks about the responses in %ages but the absolute number is mentioned in brackets along everywhere.
% 8 92
EDUCATIONAL BACKGROUND
FREETIME SPENDING No. Parting Reading books Sports Movies Visiting friends 7 8 8 17 10 %age 14 16 16 34 20
BRAND RECALL The consumers were asked to recall names of 5 white goods brands. The responses of the consumer were seen in two perspectives: - Immediate recall and Final recall. Immediate Recall is defined as recall of a particular brand in first two choices. Final recall is defined as recall of a particular brand in the five choices. Immediate Recall
Godrej and Kelvinator were close and recalled by about 76% of the consumer, while Whirlpool was recalled by about 52%. No other brand had a recall %age of more than 15%. Final Recall GODREJ KELVINATOR WHIRLPOOL VOLTAS ELECTROLUX VEDIOCON BPL SAMSUNG L.G. 98% 91% 77% 65% 42% 35% 26% 7% 3%
Product Possession Consumer wet-c asked to tell whether they posses a refrigerator or not, the result was 100%. Brand Possessed Consumers were asked to tell the brand of refrigerator they possess. The relative %ages are as follows GODREJ KELVINATOR/ELECTROLUX WHIRLPOOL VOLTAS 32% 14% 26% 10%
VEDIOCON BPL SAMSUNG L.G. Members Influencing Decision decision. The following result was obtained). Father Mother Son Daughter Others decision) 10% 96% 94% 64% 70%
8% 4% 4% 2%
(Consumers were asked to tell about the members who put in their opinions in a buying
Final Decision
(Consumer were asked to tell about the member, who took the final
DEALERS SURVEY Survey was carried out of the dealers stocking white goods. The sample size was 10 (retailer 8, Department stores 2) comprising of low and middle class markets and upmarket localities. On asking the brands stocked by them, it was found the common brands available were. Godrej Whirlpool
Samsung BPL Voltas Videocon L.G. Kelvinator/Electrolux Out of 10 surveyed, I stocked Whirlpool. The old one out was a shop in a middle class-market Whirlpool sales people had come there initially to take stock of the sales volume and price range of the white goods sold On not being satisfied with the total sales. It was not given the dealership Whirlpool.
ATTRIBUTES The dealers were asked to rate Whirlpool Vis--vis its competitions various attributes on a scale of 1 to 3 Godrej, scored above Whirlpool in overall attributes. Godrej Whirlpool Stock 1 .00 1 .96 - Whirlpool scores equally with Godrej in relative stock availability.
Delivery Time
- Margin per unit is almost similar for the entire refrigerator brands around (12-13%) without taking incentives into account.
Profitability
- Profitability is related to volume of sales. So Godrej scores higher than Whirlpool in profitability.
Estimated Profitability
- Godrej scores higher than Whirlpool in estimated profitability, because the sale of Whirlpool is stimated to he declines in some of shops.
Credit Period
- Credit period is more department on the creditability of the dealer and his networking. However, Whirlpool scores above Glodrej; Whirlpool has very liberal credit policies irrespective of sales, while Godrej follows a selective policy.
Incentives
-Whirlpool scores higher than Godrej, Whirlpool is very liberal gives incentives to all dealers irrespective of sales Godrej follows selective marketing strategy and provides host of incentives at select shops.
On asking how the customers asked for Refrigerators, it was found that: In all the case customer asked by brands Around 25% of the customers also asked for the respective sub- brands. Also around 32% customers asked for dealers recommendations.
On asking the dealers about the most popular brand in refrigerator. The following results are obtained: NO 5 3 2 Recommendations On asking the dealers about the recommendation made for the brands in refrigerators, 70% of the dealers recommended Whirlpool because the liberal incentives given to dealers for promotion, acted favorably. Support - It was observed that Whirlpool was very liberal with is POP support, Informational literature and Advertising support, both before and after the launch of a product, irrespective of the sales volume of the various dealers. However, Godrej followed a selective policy with regard to this and made the availability of the above at selective outlets. Availability of information literature On asking whether customers asked for informational literature 85% responded yes. Availability of informational literature was Popular Brand Godrej Whirlpool Kelvinator/ Electrolux
considered an important criterion for selecting a particular brand. Whirlpool is very liberal with this at all the outlets on the other hand, Godrej made it available at only selected outlets. Selection of Dealers On asking how the various outlets become dealers in Whirlpool, it was found that because of Whirlpool collaboration with Kelvinator earlier, Whirlpool followed a distribution strategy to use the dealer network of Kelvinator so most of them because the dealers automatically after some security.
FINDINGS AND ANALYSIS 1) No. of owners of Whirlpool Refrigerators (according to survey) = 26 % 2) Year of Purchase of Whirlpool Refrigerator No. Year <1 1< Year <2 2<Year <3 3<Year <4 3 5 6 Nil
Nil
Thus the maximum consumers had purchased the Whirlpool Refrigerators 3 year before, when it commanded a market share of about 3 1%. Whirlpool, at that time was associated with Kelvinator. 3) Reason for the purchase of Whirlpool Brand
The main reason for the purchase of Whirlpool brand was found out to by Whirlpools Collaboration with Kelvinator. Though on 31st December, 1996 the brand ownership was taken over by IIcctro1ux, most of the customers were not aware of this fact. Another
important factor influencing the purchase in Whirlpool being an international company. A common perception among the buyers is that, being an American brand, Whirlpool is far much superior to the other present in the market.
%age
40 35 30 25 20 15 10 5 0
%age
Cooling Effect
Design
Servicing
Frost Free
The quality most preferred in a Whirlpool refrigerator is the cooling effect it gives. The consumers find its compressor very efficient as compared to other refrigerators. Some even believed that in Agras heat & humidity Whirlpool is the best suited. Another satisfactory factor found among Whirlpool owners was its after sales servicing which they found to be very quick & good. Earlier brand of refrigerator owned
Out of the total sample, 36 owned a brand of refrigerator earlier. As evident from the above table, most of them had Kelvinator before. It was the reputation of this company which influenced them to purchase Whirlpool. Those who owned Godrej earlier wanted to give Whirlpool a try because of it being an International Company. Moreover, the excess capacity of Whirlpool Le. Its 310 its model encouraged switching. Among the other brands owned were Bauh, Leonard, Philips, Zenith but the main were the above four mentioned.
More than 50% of the sample had their mind clear on buying Whirlpool refrigerator. The others did considered Godrej, Videocon, I3PL, Voltas and Samsung. Here dealer recommendations played an important role in making the final purchase decision.
Satisfaction level
Yes No
Whirlpool owners were quite contented with their refrigerator. Some did have complaints but were satisfied with the serving. There was almost negligible dissonance among the owners. Complaints
The complaints were mainly with compressor & thermostat. The consumers complained the that they had to regular &
Compressor Thermostat Finishing Noise
get their thermostat compressor changed but were satisfied with the Source of Refrigerator. for
Whirlpool
It shows major source for the purchase of Whirlpool refrigerator is that retailers which again confirm their distribution strategy.
Source of Information
The major source of information for Whirlpool Refrigerator is found to be advertisements and dealers. Whirlpool has spent a whooping amount since its operations in advertisements and promotion through dealers which has given effective results.
FINDINGS AND DATA ANALYSIS Demographic Characteristic of respondent Age group (in year) 20.30 30-40 40-50 50-60 %of respondent 26% 43% 21% 10%
INCOME LEVEL
% AGE
NONE
MARKET SHARE CAPACITY WISE Upto 165 Ltr Above 165 Ltr and below 250 Ltr Above 165 Ltr and Upto 360 Ltr 65% 20% 15%
Frost free Conventional (Not frost free) CFC type CFC free 75%
25%
60% 40%
Intention of Purchase
%age
Others
Sources of Awareness
50 40 30 20 10 0 T.V. Radio Magazines Hoardings Newspapers Friends % age
CONCLUSION In conduction a survey with the Whirlpool the dominant factor influencing the purchase of Whirlpool brand was found out to the Whirlpools collaboration with Kelvinator. To the common man, is a better known brand? Its a process brand. Thus, though the amalgamation was for marketing synergies, its real gains were financial. It may have cost Whirlpool $ 100 million, but double-entry strategy has allowed WOI to acquire, at one swoop, a 26% share in refrigerator market. WOI quickly launched a 310 Liter refrigerator the first product made, sold & serviced by a Whirlpool owned company in Asia. This product feature made Whirlpool distinct from the rest of the players. Its 165 Liter model, a key product in the refrigerators segment, aimed squarely at the mass market. Whirlpools thus successful in recognizing & catering to the needs of the customers.
WOI family of dealers, stocking & selling both refrigerators and washing machines, has been very efficient in enhancing sale. A good percentage of customers bought Whirlpool refrigerator on recommendation by the dealers. Even the display at the dealer shops has contributed to sales. Whirlpool has already established a base in this country. Its flow a popular brand in the white goods segment. With its intense marketing strategies; Whirlpool, no doubt, will be a dominant player in the market in the near future. Its here for the long use. Father Mother Son Daughter 80% 8% 8% 4%
Reason for Purchases Consumers were asked for the reason of purchase of the brand they possess the following rankings were obtained as ordered below: Famous Brand International Brand Companys Reputation
Most preferred Quality of Refrigerators Consumers were asked to tell about the most preferred quality in the refrigerator. The following result was obtained. Cooling effect Style Servicing Shelf Space Frost Free Sturdy Body Earlier Brand Owned Consumers were asked to tell about the earlier brand of refrigerator owned. The following result was obtained. Brand owned Kelvinator Godrcj Gem Voltas 12 % 36 30 11 40% 20% 18% 15% 7% 0%
12
Consumers were asked to tell about the brands they considered while purchase Only Whirlpool Only Godrej Only Kelvinator / Electrolux Only Videocon Only Voltas Level of Satisfaction (Consumer were asked to tell whether they are satisfied with the they possess or not). 72% of the consumers were with the brand they own. The main reason of were compressor, thermostat, noise and after sale service. 40% 20% 15% 52% 58%
Attributes Seven attributes of Refrigerators were given to the consumer to sale according to their preferences. Source of Information (Consumers were asked to mention the sources through which they have heared about the brand).
2. Price 3. Range / variety 4. After sale service 5. Image 6. Environment friendly 7. Product information. Year of Purchase No Year <1 1<Year<2 2<Year<3 3<Year<4 4<Year <5 5<Year 7 15 10 6 4 2 %age 14% 30% 32% 8% 8% 4%
CONCLUSION
Kelvinator or has a slight edge over other brand of refrigerators as Far as the market share is concerned. Whirlpool is the closest competitor. L.G, Samsung, and Godrej are the other competitors. 165 Ltr capacity refrigerators has maximum market share. Consumers are more conscious about quality and price of the product. Company image also has a significant role in consumer purchase decision. Technological advancement has led to more people going in for buying frost free refrigerator. Advertisement and sales promotion has an effect to increase sales (>1 consumer durable. Advertisement on TV is best media preferred by consumers.
LIMITATION
With respect to actual population, the sample size is too small. This may affect the final result. Sample size is too small due to time constraints Respondents may have given wrong information to prove better lifes1yle. Since the responses were only from Agra, the report cannot be generalized for the whole country.
QUESTIONNARE
Instructions: Part A has to be filled by all respondents. Part B has to be filled by those already having Refrigerator Part C has to he filled by those planning to buy a Refrigerator PART- A 1) NAMED OF RESPONDENT 2) ADDRESS 3) AGE a) 20-30 c) 40-50 4) QUALIFICATION a) Secondary c) Post graduate b) Graduate d) Professional b) 30-40 d) 50- 60
5) MONTI-ILY INCOME (in Rs) a) Upto 6000 c) 80000-10000 e) 15000 or above 6) OCCUPATION a) Executive b) Self employed c) Businessman d) others 7) ARE YOU b) 6000-8000 d) 10000-15000
a) Refrigerator owner, b) Planning to purchase Refrigerator c) None of the above PART-B 1. Which brand of refrigerator do you have? 2. What type of refrigerator do you have Capacity wise: a) Upto 165 Ltr Technology wise: a) Frost free b) Conventional (Not Frost Free) b) Above 165 Ltr and below 250 Ltr c) Above 250 Ltr and upto 360 Ltr
3. When did you purchase your refrigerator? 4. Is your Refrigerator a) CVC free it a) Current model is not working well b) Current model is of old technology c) You find the new models more attractive d) New models have more utility e) Others 5. Do you have any suggestions to improve the existing refrigerator model? b) CFC type 5. Are you planning to replace the existing model, if yes what are I he reasons for
PART C
1. When do you plan to purchase refrigerator a) In 3 months c) In 1 year b) in 6 months d) After 1 year e) not sure
2. Which brand comes to your mind first, when you think of refrigerators a) Kelvinator b) Whirlpool e) Godrej (specify__________) j) Videocon c) LG g) d) Samsung others
3. Which brand would prefer to purchase a) Kelvinator b) Whirlpool e) Godrej (specify__________) 4. What arc your sources of awareness a) T.V e) Newspaper b) Radio c) Magazine f) friends d) Hoarding d) Videocon c) LG h) d) Samsung others
5. Which refrigerator would you choose Capacity wise: a) Upto 165 Ltr. b) Above 165 Ltr and below 250 Ltr c) Above 250 Ltr and Upto 360 Ltr
Technology wise:
a) Frost free
6. Where would you visit for purchasing your refrigerator? a) Dealer 7. Intention of purchase a) Utility others 8. How will your purchase the refrigerator a) Through cash payment c) Through financing schemes 9. What type of financing would prefer a) Full financing b) Part financing b) Through installments b) Necessity c) Social status d) b) Company showroom c) Others
REFERENCES
Marketing Management: Philip Kotler Consumer Behavior: Leon G. Schiffman Consumer Behavior: R.K Gupta