THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT NEW DELHI DELHI
THESIS ON
MARKET ANALYSIS OF DAIKIN AIR CONDITIONERS
SUBMITTED TO: PROF. VIJAY BODDU
UNDER THE GUIDANCE OF: MR. RAMAKAR JHA
SUBMITTED BY: NITIN GUPTA THESIS ID NUMBER: DF/09/11-M-314 BATCH FW-2009-11
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ABSTRACT
The thesis has been undertaken in a renowned company “ Daikin”. The main objective
behind the thesis is to know about the consumer preference for the product when other competitors like L.G WHIRPOOL are there in the market, and to get an insight into the price strategy of the company as well as the post launch status of the company and to find the various reasons because of which the company is able to survive the edge cutting competition and what are the other marketing strategy of the company. A survey has been done and data has been collected from various dealers all over Delhi and thus a report has been prepared. There is a direct correlation between the income groups and their purchase of Daikin air conditioners. The reason being that Daikin ac are low priced. Hence cater to large market, so it‟s logical that of high and middle
income groups. The dealers give promotional leverage to some brand of air conditioners. They also give more the shelf space to those products as the shelf space is directly correlated with the kind of margins received & schemes given to the multi brand dealers i.e. more the margin more the space. Hence, one may conclude that maximum promotional leverage is given to the brand giving maximum margins & offering the best schemes.
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TOPIC APPROVAL LETTER
Dear Nitin Gupta, This is to inform that your thesis proposal on “Market Analysis of Daikin Air Conditioners”, to be conducted under the guidance of Mr.Shrijit Chandrawat
is
hereby approved and the topic registration id number is DF/09/11-M-314 Make it a comprehensive thesis by ensuring that all the objectives as stated by you in your synopsis are met using appropriate research design; a thesis should aim at adding value to the existing knowledge base. You are required to correspond with us by sending the thesis final draft Vijay Kr. Boddu at
[email protected] Ph.-011- 42789878 before the thesis submission
NB: 1) A thesis would be rejected if there is any variation in the topic/title from the one approved and registered with us. 2) The candidate needs to handwrite at least 1200 to 1500 words on the summary of thesis at the time of viva.
Regards, Prof. Ramakar Jha Department of Thesis Address: Level 0, IIPM International Campus, Satbari, Mehrauli-Chattarpur Road, Delhi, India Phone: 91.11.42789919, 30168408 e-mail:
[email protected]; web: www.iipm.edu,
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THESIS SYNOPSIS Name: Nitin Gupta Section: FP1 Batch: PGP- Fall-Winter- 09/11 Specialization: Marketing & HR Phone No: +91- 9910705323 Email ID:
[email protected]
DESIRED AREA OF RESEARCH Marketing
TITLE OF THE THESIS Market analysis of Daikin Air Conditioners
RESEARCH OBJECTIVE To understand the Market Attractiveness Evaluation
Market sizing - estimating the size of a total market, how much is
accessible by the business, and/or what market share ambitions would be realistic.
Competitive presence and customer preference.
Channel trends, preferences, and allegiances.
To identify areas where there can be scope for improvement.
To understand customer needs, aspirations, buying behaviors, usage patterns, decision models, preferences, favorability, intentions, etc
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LITERATURE REVIEW:
Market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm. Market analysis has a variety of purposes and a variety of data collection methods might be used for each purpose. The particular data collection method that you use during your market research depends very much on the particular information that you are seeking to understand. Other steps follow
Identify opportunities to serve various groups of customers
Examine the size of the market
Market growth rate and profitability
Investigate the competition
Clarify your unique value proposition
SCOPE:
Why in the particular period of Time Company haring more sales professional. Why Employs left the organization, why not continue longer period of time. What is the factor affecting the employs so that, they work with longer period of time with our organization. RESEARCH METHODOLOGY Data Source
Primary Data
:
Through Questionnaires
Secondary Data
:
Through Internet, Journals, News papers.
Data Collection Procedure
:
Survey
Research Instrument
:
Structured Questionnaire.
Sample Size
:
80
Sample Area
:
Work has done in Delhi/NCR Office.
Sample Procedure
:
Random sampling.
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Target Audience
:
Marketing officials / channel members/
customers These will be some of the sources through which up-to-date and relevant data will be collected. The information gathered will be tabulated and presented in the final report.
SCOPE OF THE STUDY
To define the process and activities while market analysis, research, strategies and techniques of an organization. Every task is undertaken with an objective. Without any objective a task is rendered meaningless.
SUMMER TRAINING DETAILS:
My summer internship topic was “Training Needs Assessment and Development of a Training Calendar” with Ambuja Cements Limited. I was directly involved in
studying the need and requirement that the company has in terms of training of its employees. Also understood the importance of a Training calendar, since it becomes very essential for the employees to be trained at all times so that they enhance their skills and become more productive.
DETAILS OF THE EXTERNAL GUIDE Name
: MR. SHRIJIT CHANDRAWAT
Designation
: SENIOR MARKETING MANAGER
Qualification
: MBA - Marketing
Company Name
: DAIKIN AIR CONDITIONING INDIA PVT. LTD
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ACKNOWLEDGEMENT
In a cooperative “Endeavour” there are many personalities to whom special
acknowledgement is due because of their special contribution, enlightened suggestions during the various stages of report. Without their cooperation & encouragement. I could never be able to give a monograph. It is well-established fact that behind every achievement lays an unfathomable sea of gratitude to those who have extended their support and without whom the project would ever have come into existence. I express my gratitude to IIPM, New Delhi for providing me an opportunity to work on this thesis as a part of the curriculum. I would also like to thank Mr. Ramakar Jha for his guidance and support.
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TABLE OF CONTENT
ABSTRACT.......................................... ................................................................ ............................................ ............................................. ............................. ...... 2 TOPIC APPROVAL LETTER .............................................. ..................................................................... ........................................ ................. 3 SYNOPSIS............................................ .................................................................. ............................................ ............................................. ............................. ...... 4 ACKNOWLEDGMENT....................... ACKNOWLEDGMENT............................................. ............................................ ............................................ ............................. ....... 7 TABLE OF CONTENTS .......................... ................................................ ............................................ ........................................... ......................... .... 8
INTRODUCTION .......................................... ................................................................ ............................................ ........................................ .................. 9 COMPANY PROFILE ............................................ ................................................................. ........................................... ............................... ......... 13 REVIEW OF LITERATURE .................................................... .......................................................................... .................................. ............ 24 RESEARCH OBJECTIVES …………………………………………………… ........ 30 RESEARCH METHODOLOGY......................... METHODOLOGY............................................... ............................................ .................................. ............31 DATA ANALYSIS AND INTERPRETATION INTERPRETATION ………………………………….. ... 33 FINDINGS ............................................ .................................................................. ............................................ ............................................. ........................... .... 41 LIMITATIONS ......................................... .............................................................. ............................................ ............................................. ........................ 44 RECOMMENDATION……………………………………………………… ........... 45
BIBLIOGRAPHY............................................ .................................................................. ............................................ .................................. ............ ...47 ANNEXURE.............................. ANNEXURE.................................................... ............................................ ............................................. ...................................... ............... 48
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INTRODUCTION
Market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they relate to the strengths and weaknesses of the firm. Market analysis has a variety of purposes and a variety of data collection methods might be used for each purpose. The particular data collection method that you use during your market research depends very much on the particular information that you are seeking to understand. Other steps follow
Identify opportunities to serve various groups of customers
Examine the size of the market
Market growth rate and profitability
Investigate the competition
Clarify your unique value proposition
MARKETING STRATEGIES
Marketing strategies serve as the fundamental underpinning of marketing plans designed to fill market needs and reach marketing objectives. Plans and objectives are generally tested for measurable results. Commonly, marketing strategies are developed as multi-year plans, with a tactical plan detailing specific actions to be accomplished in the current year. Time horizons covered by the marketing plan vary by company, by industry, and by nation, however, time horizons are becoming shorter as the speed of change in the environment increases. Marketing strategies are dynamic and interactive. They are partially planned and partially unplanned. The field of marketing strategy encompasses the strategy involved in the management of a given product. A given firm may hold numerous products in the marketplace, spanning numerous and sometimes wholly unrelated industries. Accordingly, a plan is required in order to effectively manage such products. Evidently, a company needs to weigh up and ascertain how to utilize its finite resources. For example, a start-up car manufacturing firm would face little success should it attempt to rival Toyota, Ford, Nissan, 9
Chevrolet, or any other large global car maker. Moreover, a product may be reaching the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be made. Each scenario requires a unique marketing strategy. Listed below are some prominent marketing strategy models. A marketing strategy differs from a marketing tactic in that a strategy looks at the longer term view of the products, goods, or services being marketed. A tactic refers to a shorter term view. Therefore, the mailing of a postcard or sales letter would be a tactic, but a campaign of several postcards, sales letters, or telephone calls would be a strategy. Marketing is defined in various ways by different people. The most suitable to the present context is “all the activities involved in moving products and services from the source to the end user, including advertising, sales, packaging, promotion and printing”. The most critical entity implied by this definition is „end user‟. The
definition of society suitable to this context is “Society is made up of people, groups, networks, institutions, organizations and systems. These aspects of society may include local, national and international patterns of relationships. People belong to informal and formal groups, and within and between these groups there are patterns of interactions.” The most critical entity implied by this definition is „people‟.
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A marketing strategy is a process that can allow an organization to concentrate its (always limited) resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing strategy is most effective when it is an integral component of corporate strategy, defining how the organization will engage customers, prospects and competitors in the market arena for success. It is partially derived from broader corporate missions, and corporate goals. They should flow from the firm's mission statement. They are also influenced by a range of environmental factors. A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. Many companies cascade a strategy throughout an organization, by creating strategy tactics that then become strategy goals for the next level or group. Each group is expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it is important to make each strategy goal measurable. Every marketing strategy is unique, but if we abstract from the individualizing details, each can be reduced into a generic marketing strategy. There are a number of ways of categorizing these generic strategies. A brief description of the most common categorizing schemes is presented below: Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically there are three types of market dominance strategies: Leader Challenger Follower Porter generic strategies - strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the market penetration while strategic strength refers to the firm‟s sustainable competitive advantage.
Cost leadership Product differentiation Market segmentation
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Innovation strategies - This deals with the firm's rate of the new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types: Pioneers Close followers Late followers Growth strategies - In this scheme we ask the question, “How should the firm grow?”. There are a number of different ways of answering that question, but the most common gives four answers: Horizontal integration Vertical integration Diversification Intensification A more detailed schemes uses the categories: Prospector Analyzer Defender Reactor The objective of many marketing strategies in the last 10 years has been building the customer‟s commitment to a brand or a dealer.
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COMPANY PROFILE DAIKIN Global Daikin Industries Ltd
Founded in 1924, Daikin Industries Limited is the global leader in the manufacturing of commercial and industrial air-conditioning systems. Being the world's sole manufacturer capable of developing a full line of dynamic products from refrigerants to air-conditioners, Daikin has built a well-established and strong presence in Japan, China, Southeast Asia, Europe as well as North America.
Pioneering products include the first packaged air-conditioner in Japan 1951, and the world's first Variable Refrigerant Volume (VRV) system in 1982. Daikin is committed to explore and adopt cutting-edge technology, in order to continually offer value-added and solution-based products and services to customers. The Group currently holds the prime share of the air-conditioning market in Japan, and is the leading performer in VRV technology.
Daikin ensures safety comes first, and the Group is reputed for its quality products and services. The Group also places much emphasis on "the fusion of the global environment and business management".
In all aspects of its business operations, Daikin applies environmentally-friendly practices, and actively promotes the development of new products and inventive technologies that help to sustain and improve our global environment.
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DAIKIN INDIA Daikin Airconditioning India Pvt. Ltd. ( DAIPL) is a 100% subsidiary of Daikin Industries Ltd., Japan, a global leader in the manufacturing of commercial-use and residential air conditioning systems. Backed by the superior technology, the organization offers a wide range of energy efficient air conditioning solutions to the Indian customers. It has been successfully offering premium air conditioning solutions in the Indian market for large-scale projects. Robust growth is forecasted in -conditioning market in the future and Daikin intends to further increase its India‟s air -conditioning market share of residential and large-scale projects. Daikin India Network
11 branch offices (sales & service)
13 resident offices
4 mother warehouses
17 supporting warehouses
Daikin Solution Plaza (DSP) - 68
Channel Partners - 1045
Authorized Service Providers (ASP) – 92
Daikin India Vision & Mission Vision
-conditioner brand Come first in customers‟ mind as the most trusted air -conditioner
Mission
To contribute to the society by providing the most advanced air-conditioning solutions
To ensure continuous customer satisfaction
To establish Daikin Brand as a brand of trust and confidence, which our customers and dealers believe in. 14
GROUP PHILOSOPHY STRIVING TO BE A GROUP THAT CONTINUOUSLY EVOLVES
Create New Value by Anticipating the Future Needs of Customers
Our mission, and the essence of our existence, is to identify and realize our customer's future needs and dreams, even those that they themselves may not yet be aware of. We can accomplish, this goal by paying careful attention to changes in social trends and conducting extensive marketing to win the hearts and minds of customers. It is essential that we offer customers optimum convenience and comfort that are always one step ahead of our competitors by providing customers with the highest quality products, materials, and services for which we, as a manufacturer, will be absolutely responsible. Moreover, we will continue offering products and services that provide customers with fresh excitement and continued enjoyment. We furthermore believe that these activities are an important source of increased profit and business expansion for the Group.
Contribute to Society with World-Leading Technologies
In any era in any business field, a company can grow and develop only if it possesses world-leading technologies. Along with increasing our market share and creating new markets, we must devote ourselves to strengthening our technological foundation since this enables us to continuously launch highly differentiated products, high value-added products, solutions-type products, and products with new applications through which we can make contributions to society. While refining our core technologies to a level of dominant superiority, we must also adopt technologies that are cutting-edge, as well as of the highest world standard, and integrate them with Daikin's own technologies in order to establish the "Daikin Technology" recognized throughout the world.
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Realize Future Dreams by Maximizing Corporate Value
We must strive to maximize our corporate value by thoroughly implementing management based on the mandates of capitalist philosophy.
Enhanced corporate value offers us a greater range of management options, enabling us to realize new growth and making possible the establishment of a stable yet flexible management foundation. Moreover, enhanced corporate value provides increased investment opportunities through which to realize our future dreams.
Enhanced corporate value unquestionably responds to the expectations held by our shareholders by providing them with stable dividends. It can also benefit other stakeholders not only by providing our customers with leading-edge products and solution made possible through enriched research and development, but also by making contributions to the local communities in which we are based. We firmly believe that enhanced corporate value especially leads to our employees and their families enjoying more stable and fulfilling lives.
Think and Act Globally
Daikin's history has been one of continual global business expansion. As a multinational company group that is substantially expanding its operations in every region of the world, including Japan, we must propose, examine, and then implement strategies and policies from a global point of view.
Therefore, we aim to systematically foster human resources appropriate to the particular characteristics of each country and region; promote the appointment of local human resources who understand Daikin's philosophy, traditions and culture, and who can play a part in Group management; and promote exchanges of human resources regardless of company or country.
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Be a Flexible and Dynamic Group
Flexible Group Harmony
By thoroughly promoting information sharing and the transfer of know-how throughout the Group, individual Group companies must strive to develop and expand their respective business operations, thereby enabling the entire Group to enjoy synergetic effects.
The specific roles of Daikin Industries and the individual Group companies are not fixed. These roles can be changed or adapted to flexibly respond to the particular circumstances of the times and the characteristics of the individual Group companies. With this as a premise and the Group Philosophy and policies as a base, Group companies must contribute to the development of the entire Group by aligning their visions and enhancing their individual capabilities, while fulfilling their own roles and responsibilities and introducing new proposals. Moreover, individual Group companies know best about the conditions particular to each country and region. Based on our fundamental Group policy, each Group company is expected to demonstrate autonomy and flexible action by promoting twoway communication between themselves and Daikin Industries through information sharing about their specific business fronts. Build Friendly yet Competitive Relations with Our Business Partners to Achieve Mutual Benefit
We must build friendly yet tense competitive relations with all our business associates and alliance partners in all areas of management, including research, production, and sales.
Such relations involve a high degree of trust in which parties motivate each other toward improvement and, from within their own roles, fulfill each other's expectations so that all parties can grow and develop together
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Be a Company that Leads in Applying Environmentally Friendly Practices
As we continue developing our business operations in various fields, it is our mission to proactively develop initiatives to respond to environmental issues. Incorporating environmental initiatives throughout our management must be a priority for us. In all aspects of our business operations, including product development, manufacturing and sales, we need to formulate initiatives that sustain and improve the environment. Meanwhile, we need to promote the development of new products and the innovation of technologies that will lead to a more environmentally healthy world. Under the precept "environmental response is an important management resource," we must integrate environmental initiatives into our corporate management since they can lead to business expansion, improved business performance, and further enhancement of our credibility with outside parties. We intend to continue being a leading company in the practice of "environmental management," thus contributing to a healthier global environment as a good citizen of the earth.
QUALITY & ENVIRONMENTAL POLICY Quality is the first priority
“Quality First” is clearly reflected in the value delivered - such as low noise level,
low power consumption, cooling efficiency, ease of installation, high reliability – all targeted to improve the quality of life. DAIPL commits to protect the environment and ozone layer during the import, marketing, sales & servicing of air-conditioning systems and spares through: 1. Deploying Group Management Philosophy & Environment guidelines 2. Adapting procedures for refrigerant handling, resource conservation and waste management 3. Improving its Environmental Management System continually 4. Preventing pollution and adverse environmental impacts 5. Legal compliance 18
CORPORATE ETHICS Guidelines for Legal Compliance 1. Providing Safe, High Quality Products and Services. 2. Free Competition and Fair Trading. 3. Observing Trade Control Laws. 4. Respect and Protection of Intellectual Property Rights. 5. Proper Managment and Utilization of Information. 6. Timely and Appropriate Disclosure of Corporate Information. 7. Preservation of the Environment. 8. Ensuring the Safety of Operations. 9. Respect for Human Rights Diversity in the Workplace and Observance of Labor Laws. 10. Protection of Company Assets. 11. Proper Handling of Accounting Procedures. 12. Practising Moderation in Entertainment and Gift Exchanges. 13. Maintaining a Firm Attitude against Anti-Social Activities. 14. Observing Various Business Laws and Regulations.
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OUR PRODUCTS SPLIT
They are always there, just like air.
CASSETTE
Quiet, decor-blending form and easy installation in new or old buildings.Flexibility in installation location. Installation is also simple.
FLOOR STANDING
The floor-standing configuration means the FVY is easy...
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DUCTED
Superior air distribution for comfortable living. Unit can be...
VRV
VRV system air conditions each room individually. Ideal for the...
CHILLER
We at Daikin take environment friendliness issue very seriously
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AIR PURIFIER
Air Purifier cleans the air in your room. Removes Allergens, Adjuvants, Deodorising
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SWOT ANALYSIS
Swot (strength, weakness, opportunity & threat) analysis of Daikin air conditioners.
It is no doubt about the fact that Daikin is considered to be “huge marketing success”.
A swot analysis of its marketing function is as follows:
Strengths
Premium pricing Focus on technology & quality In-house manufacturing facility Product design
Weakness
Low quality as compared to other brands Little presence in “A” class area
Opportunity
Large market potential Wide production portfolio Consumer willingness to change brand
Threats
Highly competitive market, therefore, a stiff competition from domestic and other multinational companies
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LITERATURE REVIEW
MARKETING STRATEGY: It sells the residential air conditioners mainly through its Channel Partners (dealer network).
The centralized air-conditioning systems, the VRV (aircooled and watercooled) and the Chillers (air-cooled and water-cooled) are sold mainly through the Opinion leaders like Architects and the HVAC consultants.
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DAIKIN INDIA EYING HIGHER MARKET SHARE Daikin Air-conditioning India private limited, a 100 per cent subsidiary of $13.5 billion Daikin Industries Ltd of Japan, is aiming to raise its market share in the residential air-conditioning market in the country to nine per cent within this year from a current five per cent. The company, a leader in the commercial airconditioning space, plans to sell 300,000 room air-conditioners (ACs) this year.
While the heating, ventilation, and air-conditioning (HVAC) system market in India is growing at a compounded annual growth rate of 15 per cent, the room AC segment is clocking a 30 per cent growth rate.
"We have a product offering that starts from 0.8 tonnes to 2700 tonnes. We can offer solutions for cooling a kid's room to air-conditioning an airport, and the only company in the country now to offer such a wide range. With the latest launch of 20 new products across residential, light commercial and commercial segments we are aiming the number one slot in the air-conditioning market in India over a few year's time.", said Kanwal Jeet Jawa, managing director, Daikin India. Daikin currently enjoys a 10 per cent market share in the commercial ACs
DAIKIN AC MARKET IN INDIA Daikin, the global cooling products company, is foraying into the residential air conditioning (AC) market. The company plans to enter the Indian market with the launch of its residential ACs (0.75-1.8 tonne) which will go by the FTE name.
Daikin is test marketing its products in Delhi, Mumbai and Chennai and may then do so in 19 Tier-III and Tier-III towns and cities such as Ludhiana, Jalandhar and Raipu “We are planning to enter the residential AC market and are here to compete with the existing players in the market, mainly Toshiba,” said Kanwal Jeet Jawa, deputy
managing director and chief operating officer. The company recently partnered with 25
Gree, the Chinese AC major, and will be using their resource base for the further development of the ACs it will produce in India. The company has made a total investment of about Rs 346 crore for this venture. Daikin, which has a global consolidated turnover of around $13 billion or Rs 58,500 crore, has decided to ramp up its operations at its manufacturing unit in India, at Neemrana in Rajasthan, for this purpose. The plant has a capacity of 3,00,000 units per year.
Daikin, which entered the Indian market in 2000, is targeting a market share of 15 per cent over the next three years and also doubling its market share from Rs 500 crore to about Rs 1,000 crore in the next two years. “Due to our partnership with Gree, we
have the expertise to further our brand in the residential AC space in India, which is growing rapidly,” said Jawa.
Daikin Industries is headquartered in Japan and has 95 subsidiaries in its network. The company is a global leader, second to Carrier in the manufacturing of ACs for commercial-use.
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COMMERCIALS AIRED ON TV TARGETING THE CONSUMER: Segmentation and Targeting: Premium market Customers Positioning: Elite Product 1. Daikin Air conditioner 1(Monkey ad):
This was Daikin's TV ad in India during 2003-04. It positioned the airconditioner firmly as a technological wonder that offered complete silence. The ad contributed in a large measure to Daikin commanding a heavy premium in the Indian airconditioner market. The ad also won recognition at Cannes Advertising Festival, Ad Club of India and the Effie Awards. This advertisement was launched between the end of the introduction phase and before the beginning of the Growth phase.
2.
Daikin Air Conditioning 2 (Service Focus):
This ad tries to explain the importance of the timely Service and its Quality and thus differentiates itself from the rest. This advertisement was launched during the early growth phase.
3. Daikin 3(Relaxation):
This ad stresses on the feel of relaxation and comfort that the customer will enjoy. It also differentiates itself from the others by the fact that it makes no noise in operation. This adverisement was launched during the growth phase
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4.
Daikin 4(lifestyle):
This ad differentiates Daikin by way of the fact that inspite of the various lifestyles that people lead, it fits into their lifestyle wherever they may go. Thus it gives a strong message that it is a distinguishing brand and that the customers should take pride in themselves. This advertisement was launched during the growth phase Repositioning for Residential Use:
Daikin is repositioning itself as Product for common man in the Indian market with the launch of its residential ACs (0.75-1.8 tonne) which will go by the FTE name. This is possible because Daikin has recently acquired Gree, the Chinese AC major, and will be using their resource base for the further development of the ACs it will produce in India. It is test marketing these products in Delhi, Mumbai and Chennai and may then do so in 19 Tier-III towns and cities such as Ludhiana, Jalandhar and Raipur.
Introducing Pichon-Kun:
A mascot that will now represent the Daikin's innovative thrust into the future is called "Pichon-kun". The new mascot of Daikin is so named because of the sound it makes. Created in Japan, this dew droplet represents the "fresh as morning nature" of Daikin's new range of air conditioners and air-purifiers. Pichon-kun symbolises the best of nature -- fresh, natural and eco-friendly.
The Company still is in its Growth Stage of the PLC.
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Video/Presentation to target the Opinion leaders like the Architect or the HVAC Consultants:
1. Daikin VRV III-opinion leader-1:
The Video is about the features of the VRV system which uses the Variable Refrigerant Volume which is a patented technology of Daikin. This technology saves energy consumption and uses non Ozone depleting refrigerant.This is a major Differentiating factor from the rest of players in the airconditioning industry. The company positions its product (VRV) as a flexible product that takes care of all the customer needs.The company projects itself as one which develops and uses the highest technologies. This Video was launched when the market for VRV system had reached the end of its growth stage.
2. Daikin McQuay-opinion leader 2:
The target market for this is the Industry and the Hotels. This video describes the new Daikin McQuay Magnitude 550 Ton Centrifugal Chiller. It positions itself as an energy efficient machine which is reliable and les space consuming yet efficient. This is also positions itself as an environmental friendly product which does not deplete the Ozone and thus caring for the environment which will help customers to get certified as a Green Building. It also differentiates itself from the rest by the use of latest technology and the ease of use and maintainence. This is launched when the market for chillers has reached its maturity stage and thus Daikin acquired Mc Quay.
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RESEARCH OBJECTIVE
To understand the Market Attractiveness Evaluation
Market sizing - estimating the size of a total market, how much is
accessible by the business, and/or what market share ambitions would be realistic.
Competitive presence and customer preference.
Channel trends, preferences, and allegiances.
To identify areas where there can be scope for improvement.
To understand customer needs, aspirations, buying behaviors, usage patterns, decision models, preferences, favorability, intentions, etc
SCOPE OF THE STUDY
To define the process and activities while market analysis, research, stratergies and techniques of an organization. Every task is undertaken with an objective. Without any objective a task is rendered meaningless.
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RESEARCH METHODOLOGY
Research methodology stands for the ways & means that we adopt for conducting research. In this we study the various steps that are generally adopted by a researcher in pursuing the research. Research methodology consist of enunciating the problem, formulating the hypothesis, collecting the facts of data, analyzing the fact and reaching certain conclusion either in the form of solutions towards the concerned problem or in the form of certain generalizations for some theoretical formulation.
Type of Data Collected
There are two types of data used. They are primary and secondary data. Primary data is defined as data that is collected from original sources for a specific purpose. Secondary data is data collected from indirect sources.
Primary Sources: These include the survey or questionnaire method, telephonic
interview as well as the personal interview methods of data collection.
Secondary Sources: These include books, the internet, company brochures, product
brochures, the company website, competitor‟s competitor‟s websites e tc, newspaper articles etc.
Sampling: Sampling refers to the method of selecting a sample from a given universe
with a view to draw conclusions about that universe. A sample is a representative of the universe selected for study.
Sample Size: The sample size for the survey conducted was 80 respondents.
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Sampling Technique: Random sampling technique was used in the survey
conducted.
Plan of Analysis: Tables were used for the analysis of the collected data. The data is
also neatly presented with the help of statistical tools such as graphs and pie charts. Percentages and averages have also been used to represent data clearly and effectively.
Data Source
Primary Data
:
Through Questionnaires
Secondary Data
:
Through Internet, Journals, News papers.
Data Collection Procedure
:
Survey
Research Instrument
:
Structured Questionnaire.
Sample Size
:
80
Sample Area
:
Work has done in Delhi/NCR Office.
Sample Procedure
:
Random sampling.
Target Audience
:
Marketing officials / channel members/
customers
These will be some of the sources through which up-to-date and relevant data will be collected. The information gathered will be tabulated and presented in the final report.
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DATA ANALYSIS AND INTERPREATATION
ANALYSIS ON THE BASIS OF SALES
ANALYSIS ANALYSIS ON THE BASIS OF SALES
daikin
12%
4%
lg voltas
9% 9%
40%
carrier national hitachi
8% 5%
13%
whirlpool ogeneral
The market survey showed that the sales volume of Daikin is the highest followed by Lg, whirlpool, Hitachi, national, carrier Voltas and then Ogeneral.
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QUALITY OF AIR CONDITIONERS
QUALITY OF AIR CONDITIONERS daikin
8% 0% 15%
lg voltas
30% 20%
10%
carrier
8%
national
9%
hitachi whirlpool ogeneral
Hitachi serves as the top leader in providing best quality to its customers, followed by national and then Daikin.
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CUSTOMER CONSIDERATION OF PRICE
CUSTOMER CONSIDERATION OF PRICE
S 25 R E 20 M O T 15 S U C 10 F O . 5 O N
CUSTOMER RESPONSE
0 YES
NO
CUSTOMER RESPONSE
According to the market survey conducted 20 customers considered price as a major determinant while buying Daikin air conditioners, whereas 5 does not give price the same weightage.
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POSITIONING OF DAIKIN AIR CONDITIONER IN THE MARKET
POSITIONING DAIKIN AIR CONDITIONERS
13% 13%
Excellent
41%
Good Satisfactory Poor
33%
Amongst the dealers surveyed 41 % agreed that the positioning of Daikin air conditioner in the market is excellent whereas 33 % feels that it is good , & 13 % says that is satisfactory as well as poor.
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MAINTAINENCE OF GOOD PUBLIC RELATION
MAINTAINENCE OF GOOD PUBLIC RELATION
S R E L A E D F O E G A T N E C R E P
90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
dealer's response
YES
NO
DEALER'S RESPONSE
According to the market survey conducted, About 84 % of the correspondent say that Daikin maintains a good public relation with its dealers whereas 16 % does not have the same response.
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INSTALLATION AND OPERATION
INSTALLATION AND OPERATION
5%
daikin
1%
lg voltas
24% 40%
carrier
11%
national hitachi
4% 5% 10%
whirlpool ogeneral
According to the market survey conducted, Hitachi leads the market in providing services in terms of installation & operation followed by Daikin, lg, carrier, whirlpool, national, Voltas and then ogeneral.
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ADOPTION OF VARIOUS PROMOTIONAL TOOLS
ADOPTION OF VARIOUS PROMOTIONAL TOOL
advertisement
30%
personal selling
56%
5%
direct marketing sales promotion
9%
Advertisement is regarded as one of the major promotional tools with a share of 56 % followed by sales promotion, personal selling and direct marketing
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MAINTAINENCE OF SUFFICIENT NETWORK
MAINTAINENCE OF SUFFIENT NETWORK
18% YES
82%
NO
Amongst the dealers surveyed 82 % said that Daikin maintained a suffient network whereas while 18% provided negative response.
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FINDINGS
The major findings of the research includes 1. The brand awareness of Daikin air conditioners is very high. in this respect Daikin have a better standing in the market as compared to other brands like general. As a result it caters to a large market share in the air conditioner market. 2. The dealer network of Daikin is very strong. This implies that Daikin maintains a good public relation with its dealers and in turn receives a good promotional leverage from its dealers. 3. The quality rating of Daikin is not high. in this respect brands like Hitachi, national have better rating in the market. 4. Brand positioning of Daikin air conditioner is good i.e. the position in the minds of the consumer is quite appreciable.
Individual findings for questionnaire are: -
Percentage of market share
Daikin serves as the market leader with highest sales volume & contributed to the affordable price of Daikin air conditioners.
Best quality
Hitachi is providing the best quality air conditioners with a total share of 30 % as compared to Daikin with the share of 15 %. .
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Consideration of price while buying Daikin A.C
About 80% of the respondent claimed that customers do consider the price of Daikin air conditioners while buying, whereas 20% says that it does not affect their purchase decision.
Positioning of Daikin A.C in the market
According to the survey conducted, the dealers of Delhi were interviewed it was found that 41% rates the positioning of Daikin A.C as excellent, 33% claimed it as good, where as 13% say that it is satisfactory 13% say it is poor.
Maintenance of good public relations with dealers
The survey conducted in Delhi shows that 84% of the dealers say that Daikin is maintaining good public relations with its dealers, where as only 16% of dealers say that it is not maintaining good public relations.
Provision of services in terms of installation and operation
Hitachi once again as serves out to be best in providing services in terms of installation and operation followed by Daikin, L.G, Carrier and then National.
Adoption of various promotional tools
The most popular promotional tool is Advertising with total share of almost 56% followed by sales promotion with a share of 30%. Further personal selling and direct marketing being at 9% and 5% respectively 42
Maintenance of sufficient network
The percentage of respondent who claim that Daikin maintains a good & sufficient network with its dealers is about 82% and only 18% feels that Daikin does not maintain a sufficient network.
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LIMITATION
The study had the following limitation mainly in the survey work that was done. 1. The survey sample is only from a small geographical area, a few dealers in Delhi. This may result in the sample not being true representation of the entire market for air conditioners. 2. While all attempts have been made to keep the survey free of the bias. There may be bias introduced in a few interviews. 3. The survey was limited to few dealers, which form only a part of the entire market, it would have been more but due to the non-cooperation dealers the number is less.
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RECOMMENDATION
1. Improvement in quality
The company should try to position itself as a brand, which is not only affordable but also provides good quality air conditioners to its customers, which will create brand loyalty in their minds.
2. Brand Positioning Through Advertisement An advertisement in electronic medium is one of the popular medium. The companies have always been looking forward to as it reaches its wider audience & can create a stronger brand appeal. The company can always announce various incentives & schemes during the commercials. For example, free passes for a film premiere or free installation services from the company on first come first served basis. Also it can feature its one of its distinguishing service that makes it a foot ahead of its competitors for example Voltas has used “any time service” advertisements to make a
strong brand image in the minds of the consumers. Using a brand ambassador is another good idea to promote the brand name of air conditioner
Dealers For dealers the company can resort to one of the following ways to increase the sales: 1. The company should conduct separate workshops for the sales representatives of these dealers about various Daikin products. 2. Increase dealer‟s margins & offer better schemes to these dealers to receive good promotional leverage.
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Provision of schemes & offers The company is well placed amongst its competitors as the survey results showed that it is best & most preferred air conditioner. So the company should try to maintain and enhance this position by giving more value to the customers and offering special replacement schemes. Also the company should make provisions regarding various financial schemes available to its customers, special off season discounts e.t.c.
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BIBLIOGRAPHY
Books Consulted
“ Journal of Marketing” April 2002, Volume 66
Kothari, C.R. “ Research Methodology”, (2002), Wishwa Publication
Kotler,
Philip
“ Marketing
Management ”
(Singapore)
Web Sites visited:
www.indiainfoline.com
www.Daikin.com
www.google.com
www.indiatimes.com
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(2002),
Pearson
Education
ANNEXURE Questionnaire
NAME OF THE DEALER:
_________________________ ____________ _____________________ ________
ADDRESS OF THE DEALER: ________________________ ____________ _____________________ _________ CONTACT NO:
_______________________________________
Q1. How many air conditioners do you sell?
20
20 - 50
50 - 70
70 - 100
Above 100
Q.2 Which brands of air conditioners do you sell?
DAIKIN
LG
VOLTAS
CARRIER
NATIONAL
HITACHI
OGENERAL
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Q.3 Which companies do you think is providing the best quality air conditioners?
DAIKIN
LG
VOLTAS
CARRIER
NATIONAL
HITACHI
OGENERAL
Q.4 how would you rate the positioning of Daikin air conditioners?
Excellent
Good
Satisfactory
Poor
Q.5 Is Daikin maintaining good public relation with its dealers?
Yes
No
Q.6 Which company would you rate the best in providing services in terms of installation & operation?
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DAIKIN
LG
VOLTAS
CARRIER
NATIONAL
HITACHI
OGENERAL
Q.7 Do you think Daikin has sufficient network as compared to its competitor?
Yes
No
Q.8 give your suggestion in improving the sale of air conditioners?
_____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _____________________________________________________________________ _______________
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