A RESEARCH PROJECT REPORT ON

THE STUDY OF A.C. MARKET OF KOLKATA CITY ANALYSIS OF CUSTOMERS SATISFACTION REGARDING VARIOUS BRANDS IN HITACHI HOME AND LIFE SOLUTION LTD

SUBMITTED BY ASHISH KUMAR (MBA-IB, GSIB) Reg. No. - 1226110107 In partial fulfillment for the award of Degree of MASTERS of BUSINESS ADMINISTRATION (2010- 2012)

Under the guidance of : Mr. P.B. Bhattacharya Mr. Sumit Banerjee (Corporate guide)

Under the guidance of :

Dr. B. Padma Narayan

Dr. K. K. Velluri (Faculty guide)

GITAM School of International Business, Visakhapatnam

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DECLARATION
I, Ashish Kumar a bonafide student of GITAM School of International Business (GSIB), Visakhapatnam, hereby declare to the fullest of my knowledge and belief that the project presented is solely done by me under the title The Study of A.C. Market of Kolkata City Analysis of Customers Satisfaction Regarding Various Brands in HHLI as a partial fulfillment of Masters of Business Administration - International Business, (MBA-IB) curriculum. The facts presented in the report have not been copied from elsewhere and has not been submitted elsewhere and are based on the observations of mine.

ACKNOWLEDGEMENT
Success is the manifestation of diligence, perseverance, inspiration, motivation and innovation. This acknowledgement can never be complete without thanking to the employees of HITACHI HOME AND LIFE SOLUTION LTD and all other people who have been associated directly or indirectly with my project and helped me in getting it in the present form. I would like to thank the following personnel for making this project a reality.

(a)Mr. P.B. Bhattacharya, whose endeavor, foresight, innovation and dynamism contributed in a big way in completing the project, within stipulated time. He provided me continuous feedback in each and every step of my project work. (b) Mr. Sumeet Banerjee, for being there with me all through the project and giving me his valuable inputs on distribution,sales and continuous support during the preparation of this report. I would also like to forward my sincere thanks Dr. K.K.Velluri (Chairperson: Placement ,GIIB) for arranging my opportunity to work at HHLI & Prof.B.Padma Narayan for being my faculty guide and continuously helping me throughout these 8 weeks to shape up & review my project. I have sheer pleasure in expressing my sincere thanks to the management at HHLI, my faculty at GSIB & my colleagues who have given their full co-operation & support in bringing my Summer Project to a completion.

Mr. ASHISH KUMAR

CERTIFICATE
This to certify that the project The Study of A.C. Market of Kolkata City Analysis of Customers Satisfaction Regarding Various Brands in HHLI submitted by Mr. Ashish Kumar in partial fulfilment of the completion of the summer training is a bonafide record of the work carried out by him under supervision and guidance has not been submitted by any other person before.

Dr. B. Padma Narayan Assistant Professor GSIB, GITAM University Vishakhapatnam

Dr.K.K.Velluri Professor GSIB, GITAM University Vishakhapatnam

TABLE OF CONTENTS
S.No.
1.

TOPICS Executive Summary Background study Modern Retail Format in India

Page No.

2. 3.

Departmental Stores in Kolkata Company Profile Research methodology Project Brief Research Plan

4.

Literature review Factors that influence Buyer Behaviour Key findings till now

5.

Data Analysis and Interpretation Demographic Information Analysis and Interpretation

6.

Bibliography

EXECUTIVE SUMMARY

Today companies work in a war zone of rapidly changing competitors, technological advances, new laws, trade policies and diminishing customer loyalty. Therefore, todays winning companies are those who succeed best in satisfying their target customers. They are market-focused and customer-driven, rather than solely product focused or cost driven. For that, it is very essential to know the latest trends in the market (concerning demand, market share, etc.) and customer satisfaction regarding various aspects so that the finance people can raise the needed cash for investment and operation; by the R & D department to make required up gradings in the product; by the

manufacturing department to establish capacity and output levels; by purchase department to acquire right amount of supplies; and by personnel department to hire the needed number of workers.

The main focus of this report was to define HHLI position in the market and level of customers satisfaction regarding aspects. This was done by analysing companys market share and total market demand of window and split airconditioners and conducting interviews with the A.C. users.

Gone are the days were the consumer went in search of materials from shop to shop. Today, things are made available in one shop, one place. These days, consumer buying is not mere transfer of item from seller to buyer. Consumer wants buying to become a happy affair. They would like to see, touch and feel the commodities that they buy. Understanding this psychology for the consumer many organizations have come to make purchase of happy affair. India is witnessing an unprecedented consumption boom. The economy is growing between 8 to 10 percent and the resulting improvements in income dynamics along with factors like favourable demographics and spending patterns are driving the consumption demand. Indian Retail Industry is ranked among the ten largest retail markets in the world. The attitudinal shift of the Indian consumer in terms of "Choice Preference", "Value for Money" and the emergence of organized retail formats have transformed the face of Retailing in India. The Indian retail industry is currently estimated to be a US$ 200 billion industry and organized Retailing comprises of 3 per cent (or) US$6.4 Billion of the retail industry. With a growth over 20 percent per annum over the last 5 years, organized retailing is projected to reach US$ 23 Billion by 2010. The Indian retail industry though predominantly fragmented through the owner -run " Mom and Pop outlets" has been witnessing the emergence of a few medium sized Indian Retail chains, namely Pantaloon Retail, RPG Retail, Shoppers Stop, Westside (Tata Group) and Lifestyle International. In the last few years, Indians have gone through a dramatic transformation in lifestyle by moving from traditional spending on food, groceries, Electronic goods and clothing to lifestyle categories that deliver better quality and taste. Modern retailing satisfies rising demand for such goods and services with many players entering the bandwagon in an attempt to tap greater opportunities.
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Driven by demographic changes including rising double digit income levels and a rapidly expanding middle class, the Indian retailing sector is at an inflexion point where the growth of organized retailing and growth in the consumption by the Indian population is going towards a higher growth trajectory. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Retailing in India is at a nascent stage of is evolution, but within a very short time certain trends similar to global experiences are clearly emerging. Retailing which covered diverse products such as food, apparels, consumer goods, financial services and lifestyle goods is gradually replacing the individual small stores with big chain stores. With shopping attitudes of people changing, organized retail markets today desires for value added products and services with good ambience and brands, which only a retailer can provide, making future growth difficult for the small retail sector. The Indian retailing sector is largely fragmented and hampered by a lack of adequately developed real estate, a shortage of trained and specialized human capital, weak labor laws, and frail logistics and supply chain systems. The Indian retail industry accounting for more than 10% of India's GDP, is likely to be driven by increasing incomes, growing exposure to overseas markets, increased' lifestyle spending' and higher mobility. Also, government has relaxed regulatory controls on foreign direct investment (FDI) considerably in recent years, while retailing currently remains closed to FDI. However, the Indian government has indicated in 2005 that liberalization of direct investment in retailing is under active consideration. It has allowed 51% FDI in single brand retail. The next cycle of change in Indian consumer markets will be the arrival of foreign players in consumer retailing. Although FDI remains highly restricted in retailing, most companies believe that will not be for long. Indian companies know Indian markets better, but foreign players will come in and challenge the locals by sheer cash power, the power to drive down prices. That will be the coming struggle. According to the report of American Management Consulting Firm A. T. Kearney's 2006 Global Retail Development Index (GRDI), India is on the first position , continuing for two years (2005 and 2006), among 30 countries as the world's most attractive market for mass merchant and food retailers seeking overseas growth. On the other hand, China is loosing its attractiveness and making the way to India GRDI helps
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retailers to prioritize their global development strategies by ranking emerging countries based on a set of 25 variables including economic and political risk, retail market alternatives, retail saturation level, and the difference between gross domestic product growth and retail growth. The study quotes: "The Indian retail market is gradually but surely opening up, while China's market becomes increasingly saturated."

BACKGROUND STUDY
Background study, forms in important part of our research. Various books, database and online resources were explored to enhance our understanding of industry, the company and the pricing concepts. Department stores are places where you can find everything you need. And by "everything" means clothes, shoes, Electronic goods, perfumes, and even home furnishings. The rise of department stores has made shopping easier and more convenient for most people. We no longer have to travel far and wide because these places have materialized everywhere in various countries. And since there are abundant sources of these shops, searching for the perfect shopping centre has been a tad tricky for the eager shoppers.

Shopping In Two conduct Years ago, shopping was a task that can only be completed through personal visits to stores. There were only a limited number of stores to purchase the people's wants and needs. Shoppers also used to pay for the merchandise through cash. But today, shopping has become a complex yet easy process for most people. Because of the rise in the number of department stores and the various ways to shop for the things you need, shopping has become a simpler task for everyone.

Department store shopping can now be done through personal or online visit. Shopping personally for the items you need would require you to visit several shops. Many prefer this type of shopping because they can have a personal view of the items they need. Regardless of the way people shop, they need to have access to the various department stores nearest to their areas. And because we deem this essential for your convenience, Department Stores Locally is providing you access to the best shops situated in UK. Take a peek at the smallest to largest department stores within your vicinity by browsing this site. You will definitely have ways to contact the department stores that can provide everything you need.

MARKETING Marketing is more important as it relates to consumer and their needs, whatever may be the objectives of business, the main in which it has to concentrate will be marketing. Business today, concentrating on marketing is found to be fairly successful though success depends on many other factors. The purchase decision being an essence is an important aspect of marketing. Consumers are liable for influence under different environment. Under these circumstances a study has been conducted to analysis the preference of consciences towards departmental stores. Channel of distribution is also called marketing channel or trade channel, are used to provide consumer with a convenient means of obtaining the products and services they desire. Thus, the route or path through which goods more from the place of production to the place of consumption is called channel to distribution. There are various persons or business consumer such as middlemen consisting of wholesalers and retailers.

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Modern Retail Formats in India

Hypermarket Typically varying between 50,000 sq. ft. and 1, 00,000 sq. ft., hypermarkets offer a large basket of products, ranging from grocery, fresh and processed food, beauty and household products, clothing and appliances, etc. The key players in the segment are: the RPG Group's Giant (Spencers) hypermarkets, and Pantaloon Retail's Big Bazaars.

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Cash-and-carry
These are large B2B focused retail formats, buying and selling in bulk for various commodities. At present, due to legal constraints, in most states they are not able to sell fresh produce or liquor. Cash-and-carry (C&C) stores are large (more than 75,000 sq. ft.), carry several thousand stock-keeping units (SKUs) and generally have bulk buying requirements. In India an example of this is Metro, the Germany-based C&C, which has outlets in Bangalore and Hyderabad.

Department Store
Department stores generally have a large layout with a wide range of merchandise mix, usually in cohesive categories, such as fashion accessories, gifts and home furnishings, but skewed towards garments. These stores are focused towards a wider consumer audience catchment, with in-store services as a primary differentiator. The department stores usually have 10,000 - 60,000 sq. ft. of retail space. Various examples include:
(i)

Shoppers' Stop, controlled by the K. Raheja Group, a pioneering chain in the country's organized retail;

(ii)

Pantaloons, a family chain store, which is another major player in the segment; Westside, the department store chain from Tata Group's Trent Ltd; Spencers - RPG Group, Lifestyle, part of the Dubai-based retail chain, Landmark Group;

(iii) (iv) (v)

Supermarket
Supermarkets, generally large in size and typical in layouts, offer not only household products but also food as an integral part of their services. The family is their target customer and typical examples of this retailing format in India are Apna Bazaar, Sabka Bazaar, Haiko, Nilgiri's, Spencers from the RPG Group, Food Bazaar from Pantaloon Retail, etc.

Shop-in-Shop

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There is a proliferation of large shopping malls across major cities. Since they are becoming a major shopping destination for customers, more and more retail brands are devising strategies to scale their store size in order to gain presence within the large format, department or supermarket, within these malls. For example, Infinity, a retail brand selling international jewellery and crystal ware from Kolkata's Magma Group, has already established presence in over 36 department chains and exclusive brand stores in less than five years. Shop-in-shops have to rely heavily on a very 95 efficiently managed supply chain system so as to ensure that stock replenishment is done fast, as there is limited space for buffer stocks.

Specialty Store
Specialty stores are single-category, focusing on individuals and group clusters of the same class, with high product loyalty. Typical examples of such retail format are: footwear stores, music stores, electronic and household stores, gift stores, food and beverages retailers, and even focused apparel chain or brand stores. Besides all these formats, the Indian market is flooded with formats labeled as multi-brand outlets (MBOs), exclusive brand outlets (EBOs), kiosks and corners, and shop-in-shops.

Category Killers Large Specialty Retailers

Category killers focus on a particular segment and are able to provide a wide range of choice to the consumer, usually at affordable prices due to the scale they achieve. Examples of category killers in the West include Office Mart in the US. In the Indian context, the experiment in the sector has been led by The Loft, a footwear store in Powai, Mumbai measuring 18,000 sq. ft.

Discount Store
A discount store is a retail store offering a wide range of products, mostly branded, at discounted prices. The average size of such stores is 1,000 sq.ft. Typical examples of such stores in India are: food and grocery stores offering discounts, like Subhiksha, Margin Free, etc. and the factory outlets of apparel and footwear brands, namely, Levis factory outlet, Nikes factory outlet, Koutons, etc.

Convenience Store

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A convenience store is a relatively small retail store located near a residential area (closer to the consumer), open long hours, seven days a week, and carrying a limited range of staples and groceries. Some Indian examples of convenience stores include: In & Out, Safal, amongst others. The average size of a convenience store is around 800 sq. ft.

Departmental Stores in Kolkata

Big Bazaar, Kolkata Big Bazaar, a part of the Future Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 50 outlets in different parts of India is present in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big name in the retail industry of India; moreover shopping here is further made a memorable experience with the varied rates of discounts on products as well as discount vouchers available in a variety of amounts
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Vishal Mega Mart, Kolkata Vishal is one of fastest growing retailing groups in India. Its outlets cater to almost all price ranges. The showrooms have over 70,000 products range which fulfills all your household needs, and can be catered to under one roof. It is covering about 29, 90, 146 sq. ft. in 24 states across India. Each store gives you international quality goods and prices hard to match. The cost benefit that is derived from the large central purchase of goods and services is passed on to the consumer.

Westside, Kolkata The Westside stores have numerous departments to meet the varied shopping needs of customers. These include Menswear, Womens wear, Kids wear, Footwear, Cosmetics, Perfumes and Handbags, Household Accessories, lingerie, and Gifts. The company has already established 41 Westside departmental stores (measuring 15,000 - 30,000 square feet each) in Raipur (C.G) Ahmedabad, Bangalore, Chennai, Delhi, Gurgaon, Ghaziabad & Noida (to be considered as 1 city), Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Nashik, Pune, Rajkot, Surat, Vadodara and Jammu. The company hopes to expand rapidly with similar format stores that offer a fine balance between style and price retailing. City Mart

Well known Air-Conditioned Family Shopping Mall in Kolkata. It is famous for its Low Rates and modern designed garments.

Shopper Stop Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by operating a chain of
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Department stores under the name Shoppers Stop in India. Shoppers Stop has 35 stores across the Country and three stores under the name Home Stop. Shoppers Stop retails a range of branded apparel and footwear, fashion jewellery, leather products,

private label under the following categories of apparel, accessories and home products.

These are complemented by cafe, food, entertainment, personal care and various beauty related services. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. The website retails All the products available at Shoppers Stop stores, including apparel, cosmetics and accessories. Shoppers Stop opened stores in Amritsar, Bhopal and Aurangabad Spencer's One of Indias fastest growing stores. Spencers is based on the 'Food First' Format (it mainly offers Fresh and packaged food). Many outlets though sport multiple formats for retailing food, apparel, fashion, Electronics, lifestyle products, music and books. It is owned by the RPG Group, a major business house

INTRODUCTION
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India is one the fastest growing markets for air conditioning. With growth of the economy, the market for air conditioning is assuming bigger proportions. While demand from residential segment remains, it is the commercial segment that is fast catching up.An air conditioner which is often referred to an AC for home is an appliance for home as well as office use. It is a system which contains the mechanism to dehumify an area as well as to extract and exhaust the heat to the surrounding areas. Air conditioners also regulate the temperature in their areas of presence through the temperature regulators and the sensors employed in them. India is a major market when it comes to the selling of the home appliances like air conditioners. In India, the market for home appliances like the air conditioners is very huge and booming yet owing to the population in India that can afford the home appliances air conditioners these days. In this guide, we are going to see as to which are the top brands in India that you needs to consider when you buy an air conditioner for your home. Today companies work in a war zone of rapidly changing competitors, technological advances, new laws, trade policies and diminishing customer loyalty. Therefore, todays winning companies are those who succeed best in satisfying their target customers. They are market-focused and customer-driven, rather than solely product focused or cost driven. For that, it is very essential to know the latest trends in the market (concerning demand, market share, etc.) and customer satisfaction regarding various aspects so that the finance people can raise the needed cash for investment and operation; by the R & D department to make required up grading in the product; by the manufacturing department to establish capacity and output levels; by purchase department to acquire right amount of supplies; and by personnel department to hire the needed number of workers. The main focus of this report was to define HHLI position in the market and level of customers satisfaction regarding aspects. This was done by analyzing companys market share and total market demand of window and split air conditioners and conducting interviews with the A.C. users. So in this report I am studying the market of Kolkata city and analysing the customer satisfaction on air conditioners which they have purchased or eager to purchase the product of different companies. The field work done by me provides customer and dealers with set of questionnaire and also guided by HHLI. Based on this HHLI will provide customized solution in terms of products and services. The major reason to take this project is to find out what are the customer satisfaction and dealer preferences and what are the factors on which customers focused more while purchasing. During my project I came to
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know about different consumer buying behavior perceptions and dealer approaches also know how much they are aware about the Hitachi products. This project will help the company to enter in to potential market in Kolkata, Howrah and Hooghly with different strategies and product range and services offered in market to capture more market share.

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About The Project Need of the Study

The need for study is for the following reasons-: (a) In todays competitive world where cutthroat competition exists, everyone wants to know their position, their strength and weaknesses. So, it is very essential to know opportunities to target the potential market, capture the market, evaluate and form the marketing strategies. (b) As Kolkata is a growing hub for new companies, there are ample opportunities for the companies to tap this growing market of A.C. industry. (c) With the changing trends in the consumer buying behaviour and technologies its very important to know the current trends in the market.

OBJECTIVE OF THE STUDY

(a)To find out the problem faced by the customers in local market. (b) To know the market share of HHLI. (c) To analyse the market potential of the product. (d) To check the satisfaction level of existing customers. (e) To Collect the Customers Feed Back. (f) To analyse the consumer buying process.

Research methodologies used in the study

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Primary Objective: To study the Air Conditioners (A.C.) market of Kolkata and to analyze Customers satisfaction regarding various aspects. Data collection For any study there must be data for analysis purpose. Without data there is no means of study. Data collection plays an important role in any study. It can be collected from various sources

1) Primary Data I have collected the primary data by way of questionnaires. The survey is done in various places in Kolkata city, Howrah and Hooghly with regards to the satisfaction level and buying behaviour among different companies were collected. Structured Questionnaire was prepared and survey made with the customers of different users of document management industry. 2) Size Sample For my study, I have taken a sample size of 120 i.e. the numbers of places in Kolkata city, Howrah and Hooghly were in total 120. 3) Sampling Procedure The method of sampling is Stratified Random Sampling. The whole city is divided into 3 basic area i.e., Kolkata city, Howrah and Hooghly different areas based on the location of the store, I visited many shop and customers in these areas and I got response of 120. I visited various malls ( in power retailer shop) in Kolkata like Big Bazaar, Pantaloons, Westsides, E Zone and others rural store in Howrah and Hooghly region. A certain sample size was obtained in each of them. These subsets of the strata are then pooled to form a random sample. 1)Descriptive Analysis
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Descriptive statistics are used to describe the main features of a collection of data quantitatively. In this method the data is presented in the form of table and charts. Pie charts Pie chart (or a circle graph) is circular chart divided into sectors, illustrating proportion. In a pie chart, the arc length of each sector (and consequently its central angle and area), is proportional to the quantity it represents. Together, the sectors create a full disk. The pie chart is perhaps the most ubiquitous statistical chart in the business world and the mass media. Pie charts can be an effective way of displaying information.

INDUSTRY REVIEW Overview of the Industry:

An air conditioner is a home appliance, system, or mechanism designed to dehumidify and extract heat from an area, or provide heat to an area. The cooling is done using a simple refrigeration cycle. In construction, a complete system of heating, ventilation, and air conditioning is referred to as "HVAC"(High-voltage alternating current).Its purpose, in a building or an automobile, is to provide comfort during either hot or cold weather. India is one the fastest growing markets for air conditioning. With growth of the economy, the market for air conditioning is assuming bigger proportions. While demand from residential segment remains, it is the commercial segment that is fast catching up. An air conditioner which is often referred to an AC for home is an appliance for home as well as office use. It is a system which contains the mechanism to dehumify an area as well as to extract and exhaust the heat to the surrounding areas. Air conditioners also regulate the temperature in their areas of presence through the temperature regulators and the sensors employed in them. India is a major market when it comes to the selling of the home appliances like air conditioners. In India, the market for home appliances like the air conditioners is very huge and booming yet owing to the population in India that can afford the home appliances air conditioners these days. In this guide, we are going to see as to which are the top brands in India that you needs to consider when you buy an air conditioner for your home.

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Traditionally, air-conditioners have been considered to be luxury appliances, and therefore, the demand for air-conditioners have either come from the institutional segment or from affluent homes in the top metropolitan cities of India. Thats no longer the case. While easy finance options have made air-conditioners more affordable, companies are also going that extra mile to make air-conditioners a must-have appliance in more and more middle class India homes. The total market size for air conditioning in India was around Rs.10,250 crores. Of this, the market for central air conditioning, including central plants, packaged/ducted systems and VRF systems was about Rs.5,750 crores, while the market for room air conditioners comprised the balance Rs.4,500 crores. The commercial air conditioning segment catering to corporates and commercial establishments amounted to around Rs.8,000 crores, while the balance Rs.2,250 crores came from the residential sector.

Air conditioning is a process of simultaneous control of air for: Temperature Control, Air Freshness, Filtration, dehumidification within a confined space.

The A.C. consists of the following important components: Cooling coil, Condenser Coil, Compressor, Fan Motor, and Electrical Components.

History :

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The invention of Willis Havilland Carriers A.C. system was back in 1902, marked the genesis of a new industry without which summers scorching heat and intolerable humidity would not have been surmounted. The concept of air conditioning is known to have been applied in Ancient Rome, where aqueduct water was circulated through the walls of certain houses to cool them. Similar techniques in medieval Persia involved the use of cisterns and wind towers to cool buildings during the hot season. Modern air conditioning emerged from advances in chemistry during the 19thcentury, and the first large-scale electrical air conditioning was invented and used in 1902 by Willis Havilland Carrier. Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, and Voltas were the major players in the consumer durables AC market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Samsung, Whirlpool, Carrier, Hitachi, Daikin came into the picture. Today, these players control the major share of the consumer durables market.

Evolution of AC Industry: Since the early 90s, the structure of the air-conditioning industry has evolved quite differently. Till '88-89 the industry used to be dominated by the unorganized sector with 70 per cent market share. With excise duty as high as Rs.9000-10,000 during those times the gap was wider. The participation of the organized sector remained small till the year 2000. The reduction in excise levels from 110 per cent to 32 per cent and import duties on components from 185 per cent to 30 per cent plus CVD has not only expanded the market but also narrowed the price gap for branded ACs. The share of the organized sector is now 85 percent while the unorganized sector constitutes a little over 15 per cent of the market. Product Categorization : * Room air conditioners(RAC) * Window air conditioners(WAC) * Split air conditioners(SAC) * Packaged air conditioners(PAC)
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* Central air conditioners(CAC)

Key players in Indian market are : LG Samsung Carrier Daikin Voltas Videocon Whirlpool Hitachi Godrej Bluestar Kenstar Onida And all AC comes in different category of star rating with different tonnage class, AC comes in 0.9,1.1, 1.2,1.5, and 2.0 with star rating of 2,3,4, and 5. DEMAND: Demand for A.C.s has never been better. The reason; fall in prices coupled with the increased purchasing power of the middle-class and the perception that an A.C. is no longer a luxury but a necessity due to increase in Ambient Temperature & Humidity. According to industry sources earlier 70-80 percent of the A.C.s sold are used for essential industrial applications, hospitals and pharmaceuticals and not merely for comfort, as it widely believed. A large part of
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the demand comes from the commercial and industrial sector, even the government is the major customer but now it proportionately covered by domestic sector also. The boom is luring many players including M.N.C.s to setup in India. Some of the major players are Videocon, L.G., Samsung, Hitachi, etc. These MNCs & Indians expected to be added this year are to the extent of one-lakh units in the windows & split segment. In the central and chiller segment, new capacities being added are by Carrier, daikin Voltas and Blue Star. PROFITABILITY: Margins in the industry vary depending upon the segment, model and sizes, between a broad range of 5-10 percent. However, margins in the window segment are the least. But these are reasonable in case of Split A.C.s and higher in case of Cassette & Tower A.C. Even then, for players who have packed and chilly plant manufacturing facilities e.g. Carrier Aircon, Voltas, Blue Star, Daikin, Hitachi & L.G. margins are higher. Of Course, Margins are the highest in the central and packaged air conditioning segments ranging between 15-20 percent IMPORTANT FACTORS: The important factors that govern profitability in the air conditioning industry are product technology, volumes, distribution network, after sales service and aesthetics. Most critical in the product technology is the compressor, which contributes about 40% of the total cost. The most common type is the notary compressor. This is well suited for the Indian conditions where the Humidity Ratio and ambient temperature are relatively high up to 52%. But the wear and tear is quite high if not properly used & voltage fluctuations are high necessitating frequent repairs. The reciprocating compressor is suitable for conditions where temperature does not exceed 45 degree Celsius. Beyond this, its cooling efficiency decreases. Hence, it is suitable for dusty areas. Also it can withstand voltage fluctuations which are common in India up to the limit. The advantage of Rotary Compressor is that it is much more efficient than the reciprocating one at moderate temperatures, consuming less power with negligible wear and tear problems.

CURRENT SCENARIO :
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With the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables AC product has increased significantly. Air conditioners are no longer considered luxury items. The Indian air conditioning industry is on a high growth trajectory with an overall volume growth rate of 20 25 percent per annum. In 2010, air conditioner sales were 7,200 crores at 3.88 million units, up from 2.8 million units in 2009. This growth rate is expected to be maintained in 2011 too. Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. Consumer durables market of ACS was grown at 10-15% in 2009-2010. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market. In 2011 it is expected to grow at 25% But air-conditioner companies are confident that the hot weather will lead to some cool profits. Traditionally, air-conditioners have been considered to be luxury appliances, and therefore, the demand for airconditioners have either come from the institutional segment or from affluent homes in the top metropolitan cities of India. Thats no longer the case. While easy finance options have made air-conditioners more affordable, companies are also going that extra mile to make air-conditioners a must-have appliance in more and more middle class India homes.

Total Market share of AC :

Voltas 13% Samsung 13% Videocon 10% Hitachi 7% Carrier 3%

LG 29%

Others 25%

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Cost analysis of various brands of Air conditioners in Indian market :

Now a day, since the international brands have entered in India, especially the LG, Hitachi,Whirlpool and the Samsung, the prices of the same were slashed down very heavily so that each and every household views air conditioner as a necessity rather than a matter of luxury and the affordability of the same as an investment is high and hence viewed upon as a device to cater for the needs of the entire family and hence preference to install it. Based upon the analysis and the survey report, it can be very well said that the characteristics that are displayed by the Indian market for air conditioners are much different in these days as to what comparison if done between the same to about couple of decades, years ago. In the previous days, the costs of the air conditioners in the Indian market were very high with only the rich households being able to afford the air conditioners for homes as a matter of luxury. Now we are going to have a look at the businesses of each of these major players in the Indian market offered for the air conditioners. Before the advent of the various trade policies and the economic structure of India, it is seen that only few of the Indian companies like Godrej majorly and then in line were Kelvinator, Allwyn, Voltas etc. were primarily responsible for catering the demand for the air conditioners in the Indian market. Also, during those days, there was not much demand for air conditioners since the climatic conditions were pleasant and use of no air conditioners could help the living. All these companies that are described here were responsible for the sale of the air conditioners in India heavily and used to capture the market share of up to 90 per cent. The air conditioner sales are seen to have a regular pattern and they seem to have repeated themselves in a cycle since the advancement of summer each year in India.

India and the air conditioners :

Market in India for the air conditioners is worth more than thousands of crores of rupees and the figures are also growing very heavily. Then main advantage for the companies selling air conditioners in India is the
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climate that is present in India. Especially consider the same in the cities where the climate is very humid as well as hot favoring the use of air conditioners. Market is ever growing at some rates between 48-52 per cent each year. The fully automatic air conditioners now days are being more popular as compared to the semiautomatic types of the same. Then there were some reforms in the Indian market, Indian climate as well as the Indian trade and economic policies. After such incident, the international brands like the Hitachi,LG, Samsung, Aiwa, Whirlpool and Daewoo stepped into the Indian market, made their mark as well as now they are among the top contenders to supply the air conditioners to the Indian market. The major players in the air conditioner market are the LG Electronics India Pvt. Ltd., and Hitachi with a huge market share. Next comes Videocon and Samsung which has the market share lesser than LG. The next in line is Voltas with a market capitalization which is lesser than those three big players. Today, these companies described are controlling a major chunk of the share of the consumer durables goods in India, specially the white goods like the air conditioners. Thus in this guide, we have seen that Indian demand for air conditioners is high enough for almost all international brands to show interests in the Indian market. Hence, if you are considering to buy air conditioners, it is better to buy an international brand like LG, Whirlpool, Samsung and Indian brands like Videocon and Voltas owing to their qualities as well as cheap prices that they display.

Yearly sale of all ACs :

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Growth Avenues:
Also in the commercial segment a major demand driving area would be the commercial real estate projects. This would be precisely from green buildings. However, air conditioners required from green buildings has to be technically qualified to minimize energy requirements. This is as because there is a holistic initiation by project developers and users to minimize energy costs. As per real estate industry estimates, against a modest 20,000 sq.ft of green built up area in the country during 2003, today more than 490 green buildings with a built up area of over 340 million sq.ft are being constructed in the country. Most of the establishments would be in the commercial segment. Special Economic Zones will also fall into the category of green buildings and a major demand area.
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In India there, the population growth rate is expected at 1.3 percent while the energy consumption is expected to grow at 4.3 percent (there is already a peak power shortage of 13 percent). This trend would strain the energy sector to a larger extent. Commercial buildings are one of the major consumers of energy, ranking third after industry and agriculture. Buildings consume more than 20 percent of energy used in India. Air conditioning typically accounts for 35 percent of energy in commercial buildings. In light of this, adopting energy efficient air conditioning systems is the need of the hour. The tools and techniques will go a long way in enhancing energy efficiency. The energy efficiency potential of all energy efficient air conditioning equipments in green buildings is 30-40 percent more than the conventional building. To fit into this demand requirement, there has to be sustained research and development on part of air conditioners manufacturers to adapt to the local climatic conditions and regional practices for various building types. It is estimated that the market potential of energy efficient heating, ventilation and air conditioning equipment would be about US$ 1billion by the 2012 and the over all market potential for green building products and technologies is over US$ 40 billion. Of late, with increased awareness of the importance to go green, stake holders are demanding HVAC equipment in which special emphasis is being laid on air conditioning. This has further triggered market of energy efficient air conditioners. On the other hand with the spread of the movement, indoor air quality in a building which goes hand in hand with energy efficient equipment is given due importance and is appropriately addressed. This has resulted in addressing the indoor air quality and its impact on human health and well-being.

Maintenance Aspect :
Demand of air conditioners is poised to grow. This would be led by demand requirement from the commercial sector. However, to have optimum equipment availability there has to be requisite service and maintenance support from equipment manufacturers. Unlike other appliance air conditioners requires periodic maintenance and service. The market size for air conditioning service is expected to be at the range of Rs. 1,500 crore. The industry is dominated by unorganized players. In the coming years the organized industry is expected to play a major role with many value added services like energy management, performance contracting, and indoor quality improvement in addition to the conventional service product such as annual

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maintenance contract, repair service and spare parts. Like many other industries, the Indian air conditioning industry is poised for rapid growth in the coming years. Green buildings for commercial segment as well as green homes will become popular. Being a major consumer of power, energy demand will go up and call for more investments in power infrastructure. New air conditioning products using non-conventional energy sources will be introduced. However, challenge for the growth of the air conditioning industry would be availability of power at reasonable cost, energy efficiency and issues pertaining to carbon emission cuts. Technology and green building related issues, specifically on refrigerants and ozone depletion. Availability of trained manpower for installation and servicing of equipment would require to be addressed in an enhanced way.

The AC market in India :

20.40% 42.70% 11.20% 25.60%

Industrial Ducted, Split and Packaged Central Room

Strategies for Growth: Facilitate growth in the domestic market Position the AC as a productivity enhancer to deepen penetration in offices Educating consumer on running cost of AC and ways to reduce it Tie-up with contractors, architects to optimally design rooms for least AC running cost Facilitate growth in exports
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 Benchmark Indian plants to the best in the world Understand best practices in operations and educate Indian players Participate in tradeshows, conferences in target markets Work with government to shape policies Ensure implementation of safety standards Ensure national level quality/performance standards Define clear procedures/paperwork for imports/exports

THE GOVT. POLICY REGARDING A.C`S The attitude of the government to the industry in general has been influenced by the perception of white goods as luxury items. Therefore, with every new central budget, the levies on these goods were jacked up, making these unaffordable for the better off. This considerably reduced the off-take of these items though huge demand was building up. Outlook : After some weakness, there was improvement in demand for air conditioners in the past couple of months. With monsoons getting delayed, the premium demand continues. Meanwhile, the players are straddling across price points to optimally capitalize on demand across the spectrum. Air conditioners are transforming from being luxury goods to the requirement goods category. Also, with the penetration of air conditioners remaining low, and as greater thrust on infrastructure will also add to demand for centralised ACs etc, on an overall basis, the Union Budget 2010-11 can turn positive for air conditioners.

Future Prospects:
Air-conditioner companies are confident that the hot weather will lead to some cool profits. Traditionally, air-conditioners have been considered to be luxury appliances, and therefore, the demand for air32

conditioners have either come from the institutional segment or from affluent homes in the top metropolitan cities of India. So, there main task is to have rapid growth in ACs with affordability and with high temperatures facility. And more value on their all ACs by which customer purchase their product which satisfy them more b giving more features in it. All companies will compete one-another in market with foreign players as well. So, its better to go for Research and methodology before launching any new AC product in market.

COMPANY PROFILE/REVIEW:
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Hitachi Home & Life Solutions (India) Ltd. (HHLI), a subsidiary of Hitachi Appliances Inc,
Japan, is a listed company at BSE & NSE exchanges. Since its inception HHLI has focused on developing and supplying high-quality products and technology that contribute to the overall prosperity of the society, HHLI manufactures various kinds of products including Room Air-conditioners and Commercial Airconditioners, and are into trading of VRF Systems, Rooftops, Chillers, and Refrigerators. Headquartered in Ahemdabad, Gujarat, the company's manufacturing facility at Kadi, Gujarat, is among the ten Hitachi air-conditioner facilities worldwide. With a total installed capacity of 400,000 units in a year, HHLI is amongst the top air-conditioning companies in India. It has a strong nationwide distribution consisting of 18 Branches, 159 Exclusive Sales and Service Dealers, more than 1000 Showroom Dealers and 350 Service Points. HHLI has always pioneered in technology and innovation and has been ahead of the competition in introducing newer concepts and features in air-conditioning due to its high spending on R&D. HHLI with dedicated team of 518 employees has a distinct edge, and with a better understanding of the local market conditions, is the finest example of Indo-Japanese collaboration.

Some Interesting Fact about Hitachi:

Hitachi first started out as an electrical repair shop for a copper mining company in Hitachi City

Hitachi's first products were electric motors Hitachi, Ltd. has been established since 1910 It took Hitachi 84 years to establish the 4 regional headquarters The inherent meaning of is corporate statement "Inspire the Next" means to breathe life into the Coming age. Hitachi is responsible for generating about 50% of Singapore's electric supply

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 The majority of mobile phones in Europe have a Hitachi component in them Hitachi developed the Automated Teller Machine (ATM) which enables bills to be pressed and disinfected in 1994 Hitachi developed the world's 1st 4.7 GB DVDRAM standard compliant DVD Camcorder in 2000 In the Japanese context, "Hi" means "Sun" while "tachi" means "Rise" which is why HITACHI is known as "Sunrise" i.e. "ri li" in Chinese/Japanese

HISTORY :
HALLMARK
OF INNOVATION

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1991 1992 1996 1997 1999 2000

Launched the first Side Throw AC Launched the first Hi Wall Mounted Split AC Launched the first Ceiling Mounted Split AC Introduced Scroll compressor for PAC range of products Introduced the first Home AC - Nidra Launched "HITACHI" Brand of Air conditioners in India Gave our customers comfortable sleep - Hitachi Kaimin First ever mass marketing of AC with Remote Microprocessor controlled Intelligence

2001

Logicool Revolutionized mass marketing of remote with microprocessor controlled Intelligence in PAC units

2002 2003

Took the concept of personalised AC and user interface to a new level - Logicool i Gives customised cooling with the help of Auto Climate Technology - Logicool Air conditioners

March: Lambda Technology inspired the smallest split Air Conditioner in the world - Hitachi Atom

2004

August: Twin Turbo Technology inspired the most Powerful & Silent Window AC - Quadricool

2005

Feb: Launched Quadricool TM with Twin Motor technology, enabling benefits of split AC in a window AC Feb: Introduced UV Fresh technology in Atom, thus providing cleaner and healthier environment Sep: Launched Atom + One with revolutionary Plus One Technology -- Making it an innovative spilit AC with additional indoor unit to cool two rooms with one unit. Sep: Launched Atom XL - A small cooling Solution for the Large areas. Also
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introduced Twin Rotary Compressors in India. Dec: Introduced Hitachi Refrigerators in India A unique 3 Door

Stainless steel Design with a separate vegetable tray and innovative benefits like Automatic Ice- Cube Maker, Nano Titanium Technology. Dec: Introduced Hitachi Washing Machines in India - Fully Automatic with revolutionary Air Jet Dry & Super Clean Wash Technology. Specially designed for 'once a week' wash lifestyle. 2006 Jan : Launched smallest split AC 'IOTA' called in category after ATOM Jan : Launched Vi series range of Airconditioner, Refrigerators and washing machines 2007 Sep: Launched Takumi series range of Ducatable and concealed Acs with convertible IDU and ODU Jan: Launched New Split AC with Auto Humid control, a never seen feature in indian market Jan: Launched New range of next generation 2 doors refrigeartors with Minus zero feature 2008 Nov: Launched Commercial AC project division, A division of HHLI to take care of central Airconditiong on turnkey basis Nov: Launched 24 hr Service centre for All india Dec: Relaunched whole range of Split AC with BEE star rating. Jan: Launched India's first split Ac (ACE Follow Me) with Movement Sensor to detect 2009 Human movement and diverting the Airfolw accordingly and ACE cutout with 0.9,1.2.1.5 and 2.O Tr, the capacitities for Customers specific personal needs

Vision:
Hitachi Group is doing business in various fields from social infrastructure to home appliances, materials, logistics, and services. We will always breathe new life into the next era under a corporate statement "Inspire the Next", aiming at becoming a vigorous company that continuously grows in the 21st century and contributes to prosperous and comfortable society.
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Hitachi Brand Strategy

"Society changes. Hitachi transforms it." Our vision is to create richer lives and a better society by providing products, systems, and services with a new level of value and potential based on the latest advances in technology, especially knowledge and information technology. Our mission is to identify the real needs of society and our customers and to set and achieve goals that surpass those needs. We develop and apply new technology without being bound by traditional thinking. We focus our efforts on the fields of communications and services. We are willing to venture into new business areas. As a good corporate citizen, our goal is the harmonious coexistence of environmental preservation and economic growth. The value we intend to foster and build upon is that of a company trusted by customers and society, a company fully responsible for its actions. We offer a wide range of complex systems using our knowledge and technologies to meet specific needs. Our goal is to offer the most complete systems solutions that will work over the long term for society as a whole. Hitachi intends to be the catalyst for a changing society. As society changes, so will Hitachi.

We declared "Inspire the Next" as a brand promise of the "Hitachi" brand in order to meet expectations of society and customers in the new era.

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Hitachi Brand Platform

The clearly stated "Hitachi Brand Platform", as based on the Hitachi Group core identity, consists of three main pillars of "Brand Vision", "Brand Mission", and "Brand Value", and is thoroughly imbued with Hitachi's way of thinking so that everyone involved in the Hitachi Brand can use the platform as a set of guidelines for how to think and act in regards to the company. The "Hitachi Brand Platform" embodies the common spirit of all Hitachi Group employees and functions as a message to our shareholders. The keywords "harmony", "sincerity", and "pioneering spirit" that express the founding intentions of the company, together with all employees understanding and sharing the "Hitachi Brand Platform" inevitably results in the expression of a single, consistent message. The development of a corporate statement started in the desire to create a message that could encapsulate this "Brand Platform" in an easy to understand expression that was straight to the point yet also powerful.
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40

41

ABOUT "INSPIRE THE NEXT"

ABOUT INSPIRE
The word "inspire" has as its etymology, the Latin preposition in and the Latin verb spirare, meaning "to breathe." As well as meaning "to breathe in," and "to encourage," it also has various meanings associated with life itself, such as "to uplift the spirit" and "to invigorate."

ABOUT THE NEXT: Nothing was put after the word "Next" in order to inspire our stakeholders and all those that read our Corporate Statement to imaginatively fill in the blank that follows with a word like "Era," "Society," "Idea," "Product," "System" or "Solution." Having others share in the composition of our Statement is one its primary aims.

INTRODUCTION TO AIR CONDITIONER (AC)

TECHNO Mechanical way of regulating the Temperature, Humidity, Cleanness and Air Flow,

Job of AC to control the Temperature, Humidity level at such a level the both comfortable of us and

also healthful.

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Air conditioning is a process of simultaneous control of air for: Temperature Control, Air Freshness, Filtration, dehumidification within a confined space.

The A.C. consists of the following important components:

Cooling coil,

Condenser Coil,

Compressor,

Fan Motor, and

Electrical Components.

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The A.C. works on the following cycles of air:

The Rooms Side Close Cycle

A.C.`s blower on Cooling Coil side sucks the hot from the room. Then it cooled, dehumidified and redelivered back in the room. During the process, the room gradually becomes cold.

The Outdoor Open Cycle

A.C.`s fan on Condenser Coil side sucks the fresh air from outside atmosphere and delivers it back in the atmosphere after taking the heat from the Condenser Coil.

The Refrigerant Cycle or Gas-

The closed cycle in which Compressor compresses the refrigerant gas through its piston inside its sealed body/dom and delivers it to the Condenser Coil then to the Cooling Coil and back. This recycling process is going on till A.C. machine is in ON position. The whole system (compressor, cooling and condenser coil) are attached with copper tubes. In Cooling Coil, cold refrigerant circulates whereas, in Condenser Coil, hot refrigerant circulates.

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TYPES OF AIRCONDITIONERS (AC)

Window AC: It is a most compact, versatile and cheapest air-conditioning system. It has the advantage of using single motor for both condenser and cooling coil side. It is a machinery assembled in one piece due to which installation at any sight is very easy and maintenance is also easier, cheaper and faster. Its front part (cooling coil side) is always kept in the room part and back part (condenser coil side) is in fresh environment i.e., outside for easy delivery of hot air.

Split AC: It is the most versatile and little bit costlier than Window AC. It is assembled in two separate parts, one is evaporator/cooling unit and other is condensing unit. Cooling unit is installed at any part of room/basement, which cools the room and condensing unit at outside wherever suitable for easily delivering of hot air. These two units are connected with copper tubes and the gas charging process is also done at site where is installed. It is known as split AC because it is spitted in two parts.

Packaged AC: It is used the area where the tonnage is high (approx., above 3.0 ton to 30 ton). It is economical inspite of Window/Split AC it is useful where the whole area is to be chilled simultaneously.

Central AC:

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It is used for the area where the tonnage required is more than 30 tons. Thought the capital cost is higher but the running cost is very economical. In Central Air-conditioning, a final air-conditioning is done through cold water running through tubes Space Maker Specific Telecom Cooling System.

Set Free Variable Refrigerant Volume system.

Models of Hitachi Room AC

S P AC roduct R e ang
C ategory S uper Prem ium i-Clean i-Tec S tar AtomX L Prem ium Ace F ollow Me Ace C outout Mas Prem s ium

Models

K aze

WACP roduct R e ang

C ategory
Models

S uper P ium rem S m (5 S um er tar)

P ium rem S m um er Quadricool

Mas P ium s rem K E AZ

BRIEF ABOUT COMPETITORS PROFILE:

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In the Air conditioning Industry especially Window and Split A.C.s, following companies has shown their presence: -

Daikin: The $4.5 billion Daikin Industries is a multi product company with the air-conditioning business comprising 74 per cent of its business. It has a 10 per cent share in the residential air-conditioning market and 36 per cent in the commercial air-conditioning in Japan. With a well-established presence in 8 major world markets, it is targeting to be a global leader in air-conditioning by 2005. Daikin is the only air-conditioning company worldwide which manufactures everything on its own from refrigerants till compressors.

Voltas: Established in 1954, Voltas is India's premier air conditioning and engineering services provider. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, climate control, textile machinery, machine tools, mining and construction, materials handling, water management, building management systems, pollution control and chemicals . L.G.: LG Electronics India Pvt. Ltd., a wholly owned subsidiary of LG Electronics, South Korea was established in January, 1997 after clearance from the Foreign Investment Promotion Board (FIPB). Turnover for 2004 Crossed Rs.6500 Crores

Samsung: Samsung India is the Regional Headquarters for Samsungs operations in SouthWest Asia, and a leading provider of high tech information technology, telecom, consumer electronics and home appliance products in the country.

Samsung Electronics. Co Ltd. is a global leader in semi-conductor, telecommunication, digital media and digital convergence technologies with 2004 parent company sales of US$ 55.2 billion and net income of US$ 10.3 billion.

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Foreign Collaboration

It deals with most efficient plan for gathering the needed information. The plan calls for the decisions on Data Sources, Research Instrument, Sampling Plan and Contact Method.

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LITERATURE REVIEW
STATEMENT OF PROBLEM The study of the consumer behaviour enable us to analysis ones own decision in buying. The very look of the departmental store attracts people, the way in which products are visited not only to buy, but also spend sometimes in the cafeteria and to enjoy the atmosphere, the consumer takes a look to choose the product and understands the inferential as well as the external factors. This is done in a clean unpolluted atmosphere in departmental store. It is a matter for study as to why people come and buy from a departmental store.

CONSUMER BEHAVIOUR Consumer behaviour is defined as that behaviour exhibited by people in planning, purchasing and using economic goods and services. Buyers behaviour is the process by which individuals decide whether, what, when, where, how and from whom to purchase goods and services. Instead of trying to market what is easier for us to make, we must find out much more about what the consumer is willing to buy we must apply our creativeness more intelligently to people, and their wants and needs rather than to product Charles G. Martina emphasizing on the above statement, the target of all marketing activities should be consumers. The firms have to device plans and implement them so as to achieve consumer satisfaction. This calls for an analysis of how consumer behaves in the market place. Buyer behaviour may be viewed as an orderly process whereby the individual interacts with his environment for the purpose of making market decisions on products and services

Thus, the chief characteristics of buyer behaviour are:

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1. It includes observable physical activities, such as walking through the market to examine the products and in making a purchase, and mental activities such as forming attitudes, perceiving advantages materials and learning to prefer a particular brand. The consumers apply both the activities to acquire goods and services and obtain satisfaction from them. 2. Consumer behaviour is a complex and dynamic concept, too constantly changing, and therefore management need to adjust with the change, otherwise the market may be lost. 3. The individuals specific behaviour in the market place is affected by interval factors such as needs, motives, perception and attitudes as well as by external or environmental influences such as the family, social groups, cultural, economic and business influences.

To achieve a better understanding of the consumer behaviour, study of those disciplines, which may provide some explanations as to why people behave as they do is required. The internal and external forces and influences interact in highly complex ways, affecting the individuals total pattern of behaviour as well as his buying behaviour.

EVALUATION OF ALTERNATIVES A consumer uses information to arrive at a set of final brand choices. The question is, how does the consumer choose among the alternative brands in the choice set? He evaluates the various alternatives available in the market on the basis of certain attributes. There is no simple and single evaluation process used by all consumers or by one consumer in all buying situations. The attributes of interest to buyer vary by product, their need, quality, style, etc.

PURCHASE DECISION

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Having evaluated the purchase alternatives, he has to decide whether to buy or not to buy. If he has decided to buy, then he has to take decisions regarding the brand, the quantity of purchase, the place of purchase and the mode of payment to the made.

POST PURCHASE BEHAVIOUR After purchasing the product, the consumer will experience some level of satisfaction or dissatisfaction. This will influence his subsequent behaviour. If he is satisfied, he will show more interest to buy the product the product or get information that might confirm its high value. Hence, to satisfy a consumer, a market must try to convince him to choose a product, the attributes for which a consumer gives importance must be analyzed. The marketers job does not come to an end as soon as the product is being bought, but continues into the post purchase period. Further, proper understanding of the various participants behaviour in the buying process and the major influences on their buying behaviour, will help the marketers to design effective marketing programs for their target markets.

Factors that influence customer behaviour :

Throughout the buying process, various factors may influence the buyer. A persons culture, social class, reference groups and self-image all have a bearing on the purchase decision. As to the situational factors like the presentation of the product, the events in the buyers life and the persons mood at the time of purchase also induce him to purchase a product of his choice.

1.

CULTURAL FACTORS

Culture is the most fundamental of a persons wants and behaviour. It refers to a set of learned beliefs, attitudes, values, customs, habits, etc., and determines human wants and behaviour. Separate marketing strategy can be developed for each culture and market can be segmented for patterns of behaviour varying between different cultures.
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2. SOCIAL FACTORS The different classes namely, upper class, middle class and lower class also determine the behaviour of a person to purchase his products. Low class customers buy usually on impulse and do not even care to read advertisement much. Middle class consumer purchase carefully and read advertisements much to know and compare the prices of different procedures engaged in the same line of activity. Upper class consumers want high class goods maintain their status in the society. 3. PERSONAL FACTORS A buyers behavior is also influenced by personal factors such as age, occupation, income, life style, etc. a) Age People buy different products at their different life stage, their taste, preferences, etc., also change with change in life stage. For instance, taste in dress materials, recreation etc., are age related. b) Occupation For certain occupation, the purchase of certain type of products is necessary. For example, a sales representative will buy fancy dress, shoes, suitcase, etc., to win the attention of the people. Similarly, a chief executive of a company will buy costly suits, undergo air travel, etc.

c) Income Income being the main source of purchasing power, the buying pattern of people differs with different level of income.

d) Life Style

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The term life style refers to the persons pattern of living in the world. People belong to same social class, occupation, may lead quite different life styles. Life style attempts to profile a persons way of being and acting in the world.

4. PSYCHOLOGICAL FACTORS A persons buyer behaviour is also influenced by the following psychological factors. a) Motivation A motive as an inner urge that moves a person to some action. People buy goods as a result of certain mental as well as economical forces that create desires of buying such goods. b) Perception Perception is the process by which an individual selects, organizes and interprets information inputs to create a meaningful picture of the world. Persons at the same motivated stage may act in a quite different manner if they perceive the situation differently.

c) Learning Learning may be defined as all changes in an individuals behaviour arising from past experience. Learning is the main aspect in the study of human behaviour. Buying decisions are affected critically by the learning experience of buyers.

d) Attitudes

An attitude is a state of mind feeling. If may be described as a persons emotional feeling, action, tendencies towards some idea or object. If a person has an attitude towards a product, it is difficult to change his attitude because a persons attitude settles into a consistent pattern. It induces him to behave in some way. People have attitudes towards each and everything and to study the buyer behaviour it has to be taken into notice.
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KEY FINDINGS :
1. At a macro level, manufacturers felt that the impact of modern retail will be positive. According to them, the advent of organized retail in India was both welcome and inevitable for the Indian economy. In their opinion, the benefits that organized retail would bring by far outweigh the negative effects of inadequate retail services in a country like India. Some of the reasons cited for this positive impact were: Benefits for consumers: Organized retail will offer consumers several benefits, such as wider product choice more in line with consumer needs, lower prices, better shopping experience because of improved store ambience and increased browse ability, enhanced service, and quality levels.
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 Greater job creation: Organized retail will create employment at several levels. The most significant increase will be in front-end jobs for retail staff, where the contribution of organized retail will be not only in the greater number of the people employed but also in making jobs that were otherwise considered menial, more dignified, thereby, giving even those without higher educational qualifications a decent livelihood. Efficient supply chain: The robust sourcing and distribution network likely to be set in place by modern trade would result in a more efficient supply chain management -- reduced lead times, fewer stock outs, reduced wastage, and consistent product quality. Survival of traditional retail: Manufacturers believe that both small and large retailers would continue to co-exist in India. Small retailers account for the bulk of retail sales today and will remain a significant force in the future since growing consumption will itself warrant the growth of both organized and traditional retail. Traditional retailers will also innovate, upgrade their stores and enhance value-added services to retain and strengthen relationships with their customers. 2. The likely direct impact on the business of manufacturers, however, will not be entirely positive. The response of manufacturers interviewed to the likely impact of growth of organized retail on their own businesses was, on the whole, more guarded and less positive. The benefits that organized retail would bring in terms of creating higher demand for their brands and greater efficiency in the distribution system would need to be weighed against the pressures on prices, margins, and the threat of competition from private label brands. 3. Manufacturers anticipate several benefits. Organized retail will fuel growth and build efficiencies. Manufacturers felt that the advent of modern retail will stimulate their growth as well. Initially, this will be because of increased demand created by organized retailers in order to fill retail shelf space, and, subsequently, because of increased consumption created by the consumers exposures to categories and brands at modern retail formats. They also felt that the need to service large buyers demanding lower prices and greater efficiencies will force large manufacturers to invest in people, processes, and technology to streamline their own production and distribution operations.

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 Organized retail will aid development of new FMCG categories. Manufacturers anticipate that organized retail will help in the development of new product categories particularly higher priced categories, categories that have a high degree of consumer involvement and those which benefit from consumer touch and feel like personal care products and eatables. Further, since modern retail facilitates faster customer feedback, they will be able to effect improvements in products and brands and go to market faster.

Organized retails sourcing and distribution network will benefit manufacturers. Manufacturers felt that, currently, most of organized retail is operating through the traditional supply chain with its multiplicity of intermediaries. As organized retail grows and large retailers have their distribution centers (DC) and IT infrastructure in place, manufacturers will be able to supply directly to these retailers. This would help reduce transaction costs on logistics, packaging, credit, commissions, etc. Elimination of intermediaries would also bring in more transparency in the flow of operations.

RESEARCH METHODOLOGY :
Research Methodology is the way to systematically solve the research problem. Research methodology just does not deal with research methods but also considers the logic behind the methods. It may be understood as the science of studding how research is done scientifically and systematically.

DATA SOURCES

Data was gathered through Primary and Secondary Data:

1.

Primary Data
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It consists of original information gathered for the specific purpose. This data is generally collected by Observation, Survey or Experimental Method.

2.

Secondary Method

It consists of information that already exists somewhere, having been collected for another purpose. They offer the advantage of low cost and already availability. With the help of Secondary Data collected from various magazines, newspapers, Industries Trade Association and Computer. The actual sales of the industries, its growth rates and the share of different companies in the market was found out.

RESEARCH DESIGN

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OBJECTIVES

58

Major Objective

To study the Air Conditioners (A.C.) market of Kolkata and to analyze Customers satisfaction regarding various aspects.

Sub-objectives

1. To compare Hitachi`s existing market vis-a-vis competition. (Air-conditioners)

2. To identify the Hitachi`s Customer Satisfaction Level regarding various aspects vis-a-vis competition. (Air-conditioners). 3. To assess effectiveness of existing brands for the products category i.e. Availability of Product

Pricing Pattern

Attractiveness of schemes

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Quality of Products

Service Backup

Product Range

DATA ANALYSIS
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QUALITY OF PRODUCT (%)

Customer's satisfaction level is very good in case of Hitachi Average on other Brands as shown below

61

AVAILABILITY OF PRODUCT (%)

Customer's satisfaction level regarding availability of product is found to be good case of LG, Hitachi, Samsung and others while Daikin is still struggling with supply constraints as shown below

62

SERVICE (%)

Services are best in case of Samsung, LG, Hitachi average in LG, and Voltas, Daikin and poor in and others as shown below

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PRICING OF PRODUCT (%)

Customer's satisfaction level regarding consumer pricing of product is found to be good in case of Videocon and whirlpool where as pricing of Daikin, Hitachi and others are average as shown below:-

BRAND IMAGE OF PRODUCT (%)

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Brand Image of Product is excellent in case of Hitachi followed By LG where Daikin still struggling.

PRODUCT LOOK (%)

65

In case of look of product Lg and Samsung are good on Average Godrej and Voltas other brand little Struggle .

DEMONSTRATION AND PRODUCT INFORMATION (%)

66

In case of Demonstration and Product information Hitachi and Daikin are good other brand on Average and Godrej still struggling.

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AFTER SALE SERVICE

After sales services are best in case of Samsung, Hitachi average in Voltas, Whirlpool and Voltas and poor in Godrej as shown below

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ATTRACTIVENESS OF SCHEMES

Customer's satisfaction level regarding attractiveness of schemes is best in case of LG, Samsung, and whirlpool average in case of Daikin and Carrier, no scheme in case of Hitachi, Voltas and godrej as shown below

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YEARLY SELL

70

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CONCLUSION

FINDINGS
1.

Quality of product was appreciated on an average by majority of the customers.

2.

Service of Hitachi is good.

3.

Pricing is bit higher than other competitors

4.

Brand Image is Excellent consumer know Hitachi means The Best

5.

Look wise is on an average need come with fashionable look due to competition in market.

6.

Attractiveness of Schemes is on an average in Hitachi for Customers. No A.C. ads are there in

magazines and very few are there in newspapers at Local or National level,

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7.

Demonstration & Product information are good in Hitachi for Customers.

RECOMMENDATION/SUGGESTION
1. The prices are little bit higher as per as there are some unique features but it is very difficult to

compete with huge giants like LG, Samsung, Voltas etc. are found tougher sometimes

2.

Sales Promotion

3.

Promotion Schemes

Incentives to the customers should be given to attract them, like a free gift in the way of credit

cards, inter cards, executive watches, membership of executive clubs, camera, mobile phones, etc. was purchase of every A.C.

The unit wise incentives can be given, like worth of gifts should be increased depending upon

the increase in the number of units purchased. For examples, for purchase of two air-conditioners a pair of Ray Ban Sun Glasses can be given, for three or more units, a music system can be given and likewise free foreign tours on five A.C.s or more.
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4.

The existing actual loyal customers are motivated through promotion schemes, like if any

existing customer helps in bringing a demand of A.C., he/she can be awarded by a gift. A.C., being a luxury service based and costly product, people generally discuss with other A.C. users before buying. Thus their involvement in buying a brand and the product is very high. This gift will be like fixed discount in % for buying any Hitachi Product once in a year.

5.

After Sales Service

A Very good and quick sales service not only satisfy the customer having high expectations but also provide him a feeling of satisfaction and thus ensures his loyalty towards the brand. For thus, Hitachi must provide a sound facility and faculty for technical training for the dealers to train their service personnel. These training centers must be setup at branch levels to facilitate easiness in providing training.

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REFERENCE SECTION

QUESTIONNAIRE

BIBLIOGRAPHY

MARKETING MANAGEMENT

P HILIP

KOTLER

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MARKETING RESEARCH ECONOMIC TIMES

C.K KOTHARI

INDIA TODAY INTERNET - WEBSITE OF HITACHI ANNUAL REPORT OF HITACHI SEARCH ENGINE - WWW.GOOGLE.COM

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