Competitor Analysis Of Whirlpool With Special Reference To Stabilizers 4h4k3j
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PROJECT REPORT ON
“Competitor Analysis Of Whirlpool Corporation With Special Reference To The Stabilizer Market In Lucknow.”
PREPARED FOR AND PRESENTED TO
WHIRLPOOL OF INDIA LIMITED UNDER THE GUIDANCE OF COMPANY SUPERVISOR NAME
COLLEGE MENTOR NAME
Mr. Kuldeep Dubey
Ms. Surabhi Mukherjee
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT
BY
MR. ROSHAN PRASAD KARN
IEM – MANAGEMENT COLLEGE ANWARI BARABANKI (2009- 2011) Page | 1
DECLARATION
I, Mr.Roshan Prasad Karn here by, declare that the project report entitled ““Competitor
analysis
of
whirlpool corporation with special reference to the stabilizer market in Lucknow.”, has been done by me under the supervision of Mr.KULDEEP DUBAY Asst. Branch manger of whirlpool, Lucknow and under the able guidance of Ms. Surabhi Mukherjee, Faculty, I.E.M Management College, and it has not been submitted
earlier
to
any
university
or
any
other
institution.
(ROSHAN
PRASAD
KARN)
PLACE: LUCKNOW Page | 2
DATE:
ACKNOWLEDGEMENTS
I
wish
to
express
my
gratefulness
to
Miss
SURABHI
MUKHERJEE, faculty and my mentor for the project, I.E.M Management College for her constant guidance during the project.
I am extremely indebted to Mr. SANJEEV SONI, Branch Manager, Service Department, Whirlpool, Lucknow for giving permission to undertake the project work in his organization.
It is a great privilege to me to express my sincere thanks to Mr.KULDEEP DUBAY, Asst. Manager, Service Department, Whirlpool for his help, cooperation and during my project work.
Lastly, I have absolutely no words to express my feelings of gratitude to the staff of marketing executives for their Page | 3
full cooperation and valuable suggestions in the completion of my project work.
(ROS HAN PRASAD KARN)
Table Of Content Description
Page no.
Chapter-1
Introduction
6–7
Chapter-2
Industrial Profile
8–9
Chapter-3
Company Profile
11 – 18
Chapter-4
Organization Chart
19 – 20
Chapter-5
Product Range
21 – 30
Chapter-6
Project Profile
31 – 32
Chapter-7
Research Methodology
33 – 38
Chapter-8
Observation and Findings
39 – 50
Chapter-9
Competitive Analysis
51 – 55
Chapter-10
Suggestions
57 – 59
Chapter-11
Conclusion
60 – 61
Bibliography
62 – 64 Page | 4
ANNEXURE
65 – 66
EXECUTIVE SUMMARY The objective of summer training from academic learning point of view is to provide an interaction with real world and understand the problems, issues and challenges being faced by corporate world, and to give an opportunity to the student to apply the learning at campus. The trainee is expected to work on live projects and work out a feasible solution for the same. For the learner, it is an opportunity to understand about the functioning of the organization at broader level, understanding and experiencing what to expect after ing the corporate world. It is an opportunity to understand work culture. On 17th June 2010 I started my project under the guidance of Mr. Kuldeep Dubey (Asst. Manager) LUCKNOW. I have been allocated the area for survey in LUCKNOW. Areas covered by me are Naka Hindola, Indiranagar, Rajajipuram, Alambagh etc. In 1st phase of this project I have visited service centre of Whirlpool at Rajajipuram for collecting technical information of stabilizers that Whirlpool manufactures. In 2nd phase of the research I have visited to dealers of stabilizers in Lucknow for doing survey about different brand of stabilizers.
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In 3rd phase I have prepared a summary report of Lucknow electronic market on that basis it observed that stabilizer market is on peak in Lucknow due to problem of voltage fluctuation and thus competition is enormous. In 4th phase I prepared few questionnaire and on that basis done survey in different electronic retail outlets in Lucknow. In 5th phase of the research I analyzed the entire thing and on that basis I prepared a report.
CHAPTER-1
INTRODUCTION Page | 6
INTRODUCTION TO STUDY
“COMPETITOR ANALYSIS OF WHIRLPOOL CORPORATION WITH SPECIAL REFERENCE TO THE STABILIZER MARKET IN LUCKNOW.” In the given topic, the research is to be done for finding industry functioning on the basis of competition it is facing from its competitors. The stabilizer market is covered by huge number of marketers creating competition for each others. The marketing strategy of all have to analysed and a model is to be drawn suggesting the company how to increase market share of stabilizers The research was important with a perspective of creating and developing new horizons of marketing. The new horizons can be developed with a preview of newly developed project along with the developing projects by doing a potential analysis of company’s marketing and its competitors strategies. Market research done in different area of Lucknow can give the resultant in the form of cause and effect relationship where company can assess its competitor and frame there strategies based on that.
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This topic was important for Whirlpool hence it was selected. Through this topic we can analyse the competitive environment and could find that where company stands in stabilizer market. This topic will also help to understand different market strategies adopted by different marketer for increasing sale.
CHAPTER-2 INDUSTRY PROFILE
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INDUSTRY PROFILE
Stabilizers are referred as consumer durable product which is also presented as accessories by many company manufacturing it. As stabilizers are basically used for controlling voltage for uninterrupted working of A.C, Refrigerator, T.V etc thus it is promoted as accessories. The stabilizer market is very struggling area of interest for organized sector as the market covered by unorganized sector is higher in percentage in comparison to the organized sector. Local brands are enormous in number in the market that it is difficult to make a place in the market with bang.
FEW MAJOR PLAYERS IN THE MARKET FOR STABILIZERS ARE: 1. MARK 2. CHARAN 3. V-GUARD 4. STAMBH Page | 9
5. STERLITE 6. UNIVOLT
Beside these there are many medium and small players in the market in the form of organized or unorganized sector operating relatively and creating enormous competition. And the competition is expected to be more complex in coming years as many company is now providing stabilizers inbuilt on A.C’s and Refrigerators’ which would increase pressure on others to do something like that and thus the market of stabilizers will moved to other way. Stabilizer industry is such that duplicate products are easily available in the market. Local stabilizers having logo of DUROMAX, KENSTAR, LG etc. are running successfully and in this way they are cashing the brand name. In spite of that stabilizer market is still wide and open for growth and with the help of proper strategies it could be turned into one of the profitable area of market.
CHAPTER-3 Page | 10
COMPANY PROFILE
COMPANY PROFILE HISTORY With brand names recognized by just about anyone who has ever separated dark colors from light, Whirlpool is one of the world's top home appliance makers. It manufactures washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, trash compactors, air purifiers, stabilizers and more. In addition to Whirlpool, the company sells its products under a bevy of brand names, including Kitchen Aid, Maytag, Jenn-Air, Roper, Amana, and Magic Chef. Whirlpool peddles its appliances in North America, Europe, Latin America, Africa, the Middle East, and Asia.
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Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being world's number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond achievable feat of any other in the industry. Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it emerged as truly global leader in the 1980's. This encouraging trend brought the company to India in the late 1980s. It forayed into the market under a t venture with TVS group and established the first Whirlpool manufacturing facility in Pondicherry. Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into Indian refrigerator market as well. The same year also saw acquisition of major share in TVS t venture and later in 1996, Kelvinator and TVS acquisitions were merged to create Indian home appliance leader of the future, Whirlpool India. This expanded the company's portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 25%. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features an infrastructure that is witness of Whirlpool's commitment to consumer interests and advanced technology. In the year ending in March '09, the annual turnover of the company for its Indian enterprise was Rs.1,719 Crores. The company's brand and image speaks of its commitment to the homemaker from every aspect of its functioning. It has derived its functioning principles out of an undaunted partnership with the homemakers and thus a slogan of “You and whirlpool, the world's Page | 12
best homemaker” dots its promotional campaigns. The products are engineered to suit the requirements of ‘smart, confident and in-control' homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions.
THE COMPANY’S VISION Whirlpool’s pervasive vision, “Every Home, everywhere, with pride, ion and performance”, rests on the pillars of innovation, operational excellence, customer-centric approach and diversified talent. These are embedded within our business goals, strategy, processes and work culture.
CORE COMPETENCIES Innovation: Unique and compelling solutions valued by there customers and aligned to there brands create competitive advantage and differentiated shareholder value. Operational Excellence (OPEX): A methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps them to achieve operational excellence. Customer Excellence: Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer.
YEAR - WISE MILESTONE FOR WHIRLPOOL ⇨1908: The first Automatic washer was launched to public in late 1908, by 1900 Corporation which in 1911 was renamed to Upton Machine Company.
⇨1911: Louis Upton founded the Upton Machine Company in this year to produce motordriven wringer washers.
⇨1916: First order of washers was sold to Sears, Roebuck & Co. ⇨1929: Upton Machine Company merged with Nineteen Hundred Washer Company of NewYork . Page | 13
⇨1948: First 'Whirlpool' brand automatic washer with dual distribution was introduced. It included two product lines one each was distributed through Sears and Nineteen Hundred.
⇨1957: The company was rechristened as ' The Whirlpool Corporation.' ⇨1958: The company moved out of country for the first time and invested in Brazilian appliance market through purchase of equity in Multibras S.A.
⇨1968: The Elisha Gray II Research & Engineering Center was completed in Benton Harbor . In the same year the company's revenues crossed the legendary $1 Billion mark for the first time.
⇨1978: Within a decade company doubled its feat of $1 Billion mark and reached the $2 billion revenue level.
⇨1986: The 'Kitchen Aid' division of Hobart Corporation was purchased. ⇨1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS Whirlpool Ltd. ⇨1989: This was a historic year since the revenues catapulted to heights of over $6 Billion mark. Also, the t venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe.
⇨1990: Company established t venture with Matsushita Electric Company of Japan to produce vacuum cleaners for the North American market.
⇨1991: The company introduced and committed globally to its Worldwide Excellence System, which is a TQM program dedicated to exceeding customer expectations. The vision to globalize 'Whirlpool Corp'. was realized in the same year.
⇨1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland, Netherlands and Belgium.
⇨1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC manufacturing facility of Kelvinator India was also acquired.
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⇨1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to form Whirlpool of India Ltd.
⇨1999: Whirlpool of India crossed the milestone of 1 million sales of appliances. ⇨2001: Whirlpool India ed profit & sold 1.2 million appliances. It also achieved the No.1 position in DC & FA.
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⇨2005: Received the 2005 American Business Ethics Award, which honors companies that exemplify high standards of ethical behavior in their everyday business conduct.
⇨2006: Honored with the 2006 National Award for Ethics & Values from the Confederación de Cámaras Industriales de los Estados Unidos Mexicanos.
⇨2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white goods company.
⇨2007: Received the 2007 Cause Marketing Golden Halo Award for Business, America's highest honor for companies and organizations that give back to the community through creative and effective cause marketing campaigns.
ACHIEVEMENTS
Whirlpool Corporation has been honored with two iF Product Design Awards 2009, respectively, for the Whirlpool Glamour Oven and for GREENKITCHEN, a kitchen eco-system design concept. The announcement was made in Nov 08 by the iF Industry Forum Design GmbH., and represents GREEN Kitchen's second design award in the past two months, following its Gold SPARK Award, won in October 2008.
2009: Whirlpool was voted Product of the Year and received the award for the 'Best Innovative Product' in the popular refrigerators category. This was based on 40,000 consumers across 36 towns in India voting Whirlpool Frost Free Refrigerators with 6th sense as the Best Innovation in the Popular Refrigerator Category.
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2009: Hewitt ‘Best Employers in India’ 2009 Study
2009: Named one of the “100 Best Corporate Citizens” by Chief Responsibility Officer (formerly Business Ethics) magazine in 2009 and from 2000-2007
2008: Included in the Dow Jones Sustainability, FTSE4Good and KLD Global Sustainability Indexes, three of the world’s most comprehensive reviews of sustainable business practices
2008: Whirlpool brand was named one of the 10 top greenest brands by U.S. consumers, according to a 2008 BrandWeek magazine survey.
2008: Named one of the “2008 World’s Most Ethical Companies” by Ethisphere magazine
2008: Whirlpool OF India” was awarded the NDTV Profit Business & Leadership Award 2008 for “The Best Consumer Durables Company. 2008: The year 2008-09 saw Whirlpool India achieve great milestones in our attempt to be an “Employer Of Choice”.
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2008: The Business Today - Mercer -TNS Study – 2008. ‘Top 20 Best Companies to work for in India’
BRAND AMBASADOR OF WHIRLPOOL
Like a fresh breath, Kajol wafted into the film world that thrived on predetermined codes of demeanor. She carries the halo of spontaneity. Kajol swept across millions of hearts with her energetic pace. Her vivaciousness and frisky persona proved contagious and singularly her own in the contemporary scene. Kajol has made a distinctive indent into the Hindi film industry. Though she has the girl next door image and is not as glamorous as the others in her field, Kajol is outstanding in her acting. The flexibility of her acting can be seen from the various characters done by this natural actress. She gives more attention to her acting than the financial success of a film. Kajol's eventful journey from 'Bekhudi' to 'Fanaa' shows the power of her versatility, sheer hard work and dedication towards art behind all of her roles. She doesn't give more importance to publicity or celebrity because she believes acting is purely a profession . Kajol has come to stay in the industry as a mainstream actress with an inimitable charm and liveliness coupled with the talent that renders eye-filling performances. Her reel life image is not diverse from her real-life image. She is as outspoken and lively as she seems in her characters in Page | 18
the films. Bold and beautiful-Kajol has won millions of hearts with her impish vivacity within a short span. No wonder then that Kajol is rated as superb among her generation of leading ladies.
Ajay Devgan, known more for his intense acting abilities carved a niche for himself as an actor. Ajay is one actor who has gained stardom on the merit of his performances, not based on Bollywood-style good looks. Earlier known as a dhishum dhishum action hero, Ajay shifted his image to a romantic lead, setting the trend with Ishq, a soft romantic comedy paired opposite wife- Kajol. The image became much prominent with Pyaar To Hona Hi Tha, bringing out his softer side. Then there was no looking back for Ajay. It became a habit for him to deliver emotional roles par excellence.
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CHAPTER-4 ORGANISATION CHART
Page | 20
WHIRLPOOL CORPORATION JEFF FETTIG (Chairman, President & CEO)
LARRY VETURELLI (VP & Controller)
DAVID SWIFT
MICHAEL TODMAN
Director & President
Director & President
(North America)
(International)
ARVIND UPPAL Managing Directing (India)
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SYED SHAHZAD AKHTAR V.P Sales, Marketing & Export
SHANTANU DAS GUPTA
TAMAL KANTI SAHU
V.P Corporate Affairs & Strategies
V.P Sales
CHAPTER-5 PRODUCT RANGE
Page | 22
PRODUCT RANGE Whirlpool is the World’s No 1 Home Appliance company that warms up to the varied needs of consumers worldwide, delivering quality products. Millions across the globe associate Whirlpool with unmatched convenience and superior technology. Whirlpool’s world class products are engineered to suit the requirements of ''''smart, confident and in-control'''' homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions.
Refrigerators
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Whirlpool refrigerators, trusted by homemakers across the globe come to you with : • 6th Sense™ cool system for superior cooling in the peak of summers • Unique utility features to add that ''magic'' to your homemaking • Range of storage capacity to suit your needs • Energy efficient technology for cooling retention during power cuts • Sleek designs and contemporary styling
Heater
After comprehensive research and years of development on Oil Filled Heaters, Whirlpool is proud to present Genius - An indoor heating device equipped with advanced 6th Sense Temperature Control Technology and a unique Electronic Interface and a host of other exciting features
Washing Machine
For a 100 years of now, Whirlpool has been synonymous with excellence in fabric cleaning and care 6th sense is women’s' intuition captured by technology. It enables our machine to adjust water level and detergent quantity depending on your wash load and fabric type. Stain wash : Brings together unique properties of Hotwash and 1-2 , 1-2 hand wash to completely remove all common household stain.
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Air Condition
The Whirlpool Mastermind series of Air Conditioners. Built to perfection and loaded with host of unique features, the Mastermind series offers the best of technology, design and unbeatable built quality to meet your cooling requirements at an unbelievably affordable cost.
UPS In addition to its existing product range, Whirlpool now comes up with new addition in the range of power accessories "Elantra" H-UPS. This H-UPS comes with a two year warranty. With Elantra you get the advantage of a host of features, international quality and an exciting range to suit your needs
Microwave
Whirlpool microwave oven bring to you a range of Microwave ovens designed to re-define ease, convenience and variety in cooking with : •
A range of microwave ovens made just for India
•
Plenty of choice in capacity and types
•
Features that help make “ Variety khana rozaana
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Dryer Whirlpool with its leadership in fabric care solutions worldwide brings to you a 100% dryer exclusively designed and developed to help you cope with the Indian weather conditions: •
The 100 percent dryer comes with a multiple drying programs which give you the best drying for your clothes
•
The best of European technology being brought to India for the first time
Fridge Aid
•
The energy efficient machines comply with
DefrostEuropean Timer safety standard. the stringent
Water Purifier The revolutionary range of Whirlpool’s RO water purifier comes with 6th sense purify and protect Technology.
Accessories
Freshonizer
Stabilizers
Pedestal
Fab O Soft
Fabricare kit
Lemon n Onion Box
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Calfre
Trolley
DUROMAX In all of the products of whirlpool I have done my project on Stabilizers which they categorized under accessories. Stabilizers of Whirlpool are named Duromax. It comes under different models and with specific features.
Different Models Of Duromax:
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AC Stabilizers
MODEL VX-1640WD
MODEL DESK Automatic Voltage Stab for AC
WORKING
AUTO-CUT& WTY VOLTAGE
RANGE
TIME DELAY
160-280
Y
1Y
INDICATOR Digital Display
160-280
N
1Y
Digital Display
135-290
Y
1Y
Digital Display
110-280
Y
1Y
Digital Display
160-280
Y
1Y
Digital Display
Upto 1.5 ton LX-1640WD
Automatic Voltage Stab for AC Upto 1.5 ton
VX-1340WD
Automatic Voltage Stab for AC Upto 1.5 ton
DX-1140D
Automatic Voltage Stab for AC Upto 1.5 ton
DX-1150D
Automatic Voltage Stab for AC Upto 2.0 ton
AC Stabilizers Deluxe MODEL
MODEL DESK
WORKING RANGE
LX-1640
Automatic Voltage Stab for AC
AUTO-CUT& WTY VOLTAGE TIME DELAY
INDICATOR
160-280
N
1Y
LED
160-280
N
1Y
Voltmeter
160-280
Y
1Y
Voltmeter
160-280
N
1Y
LED
Upto 1.5 ton LX-1640V
Automatic Voltage Stab for AC Upto 1.5 ton
VX-1640
Automatic Voltage Stab for AC Upto 1.5 ton
LX-1630
Automatic Voltage Stab for AC Upto 1.0 ton
Page | 28
LX-1650
Automatic Voltage Stab for AC
160-280
N
1Y
LED
140-280
N
1Y
Voltmeter
140-280
Y
1Y
Voltmeter
140-280
N
1Y
Voltmeter
140-280
N
1Y
Voltmeter
130-280
Y
1Y
Voltmeter
Upto 2.0 ton LX-1440V
Automatic Voltage Stab for AC Upto 1.5 ton
VX-1440
Automatic Voltage Stab for AC Upto 1.5 ton
LX-1430V
Automatic Voltage Stab for AC Upto 1.0 ton
LX-1450V
Automatic Voltage Stab for AC Upto 2.0 ton
VX-1340
Automatic Voltage Stab for AC Upto 1.5 ton
FEATURES: ⇨Enables appliance performance during high voltage fluctuations. ⇨World class design for aesthetics & durability. ⇨Design and tested for compliance with National and International standards of safety & electromagnetic compatibility. ⇨Less No Load Current than ISI Standard for better Power efficiency. ⇨Vacuum impregnated transformer for better insulation & reliability.
REFREGERATOR STABILIZERS
MODEL
MODEL DESC
LX0705V
Automatic Voltage Stabilizer
INPUT
OUTPUT
VOLTAGE
VOLTAGE
AUTO-CUT
VOLTAGE
TIME DISPLAY INDICATOR
75-290
160-260
N
Voltmeter
130-280
190-250
Y
Digital
for Refs upto 450L Symphony VX-1304D Digital Automatic Voltage Stabilizer for Refs upto 310L Direct Cool
Page | 29
VX-1305D Digital Automatic Voltage Stabili-
130-280
190-250
Y
Digital
110-280
180-250
Y
Digital
110-280
160-260
N
LED
130-260
160-260
N
LED
140-260
160-260
N
LED
140-260
160-260
N
Voltmeter
145-260
160-260
Y
LED
160-260
160-260
Y
LED
zer for Refs upto 450L Symphony VX-1105D Digital Automatic Voltage Stabilizer for Refs upto 450L Symphony LX-1104
Automatic Voltage Stabilizer for Refs upto 310L Direct Cool
LX-1304
Automatic Voltage Stabilizer for Refs upto 310L Direct Cool
LX-1404
Automatic Voltage Stabilizer for Refs upto 450L Symphony
LX1404V
Automatic Voltage Stabilizer for Refs upto 450L Symphony
DX-1404
Automatic Voltage Stabilizer for Refs upto 450L Symphony
AX-1605
Automatic Voltage Protector for Refs upto 450L Symphony
SCOOP SERIES- POWER ACCESSORIES
MODEL DX-1504
MODEL DESC Automatic Voltage Stabilizer for
INPUT
OUTPUT
VOLTAGE
VOLTAGE
AUTO-CUT
VOLTAGE
TIME DISPLAY INDICATOR
150-275
175-255
Y
LED
150-276
175-256
Y
LED
130-270
136-255
Y
LED
Refs upto 310L Direct Cool DX-1505
Automatic Voltage Stabilizer for Refs upto 450L Symphony
DX-1305
Automatic Voltage Stabilizer for
Page | 30
Refs upto 450L Symphony
FEATURES: ⇨ Enables appliance performance even during high voltage fluctuations. ⇨ Unique “ Over Current Protection” for extra safety. ⇨ Designed and tested for compliance with national and international standards of safety & electromagnetic compatibility.
Whirlpool of India Limited Balance Sheet as at March 31, 2010 Schedule
As at March 31,2010 (
in Lacks)
As at March 31,2009 (
in Lacks)
Source of Funds Shareholder’s Funds Share capital
A
27,921.43
27,921.43
Reserves & surplus
B
8,749.33
2,569.24
36,670.76
30,490.67
Loan Funds
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Unsecured Loans
C
15.27
11,023.54
Total
36,686.03
41,514.21
D
72,221.47
69,948.49
APPLICATION OF FUNDS Fixed Assets Gross Block Less: Accumulated Depreciation/Amortisation
43,270.86
39,363.55
Net Block
28,950.61
30,584.94
1,327.19
201.87
30,277.80
30,786.81 59.22
Capital Work in Progress including Capital Advances Intangible Assets
E
33.21
Deferred Tax Assets (Net)
F
1,147.57
7,325.27
Current Assets, Loans and Advances Inventories
G
46,248.63
29,987.43
Sundry Debtors
H
13,978.69
8,206.65
Cash and Bank Balances
I
6,217.77
7,277.79
Loans and Advances
J
15,913.91
7,948.74
82,359.00
53,420.61
(i) Less: Current Liabilities and Provisions Current Liabilities
K
65,888.27
45,184.66
Provisions
L
11,243.28
5,915.51
(i i) N et Current Assets
(i-ii)
Miscellaneous Expenditure
M
77,131.55
51,100.17
5,227.45
2,320.44
−
940.42
(to the extent not written-off or adjusted) −
Profi t and Loss Total Notes to s
36,686.03
82.05 41,514.21
T
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CHAPTER-6 PROJECT PROFILE
PROJECT PROFILE The project was primarily aimed at studying the competitive environment of Whirlpool India with special reference to stabilizers. And to find out the strategies adopted by different firm in competitive environment. On the project I did survey in different area of Lucknow on the basis of questionnaire I had prepared. The project was all survey based and the result which came out is all based on the factual information provided by the retailers which had filled my
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questionnaire form. After collecting information I analyzed all data under the process of research methodology and then drawn a result from that. This study will help in know, what kind of competition whirlpool is facing from its competitors. This study will also be helpful for the company in this respect that what is the share of other competitors in stabilizer market? The most important thing which will come out from this project report is that how local players or unorganized sectors has covered so much share of stabilizer market.
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CHAPTER-7 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research in common refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison and experiment.
Developing Research Plan
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After deciding the objective of marketing research next step is deciding research plan for gathering effective information related to this research project. The research plan consists of following steps, which are discussed subsequently.
Research Design 1.Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, competitor profiles, marketing strategies, market potential, etc. 2.Data source :While project study I used primary as well as secondary data source. For primary data collection I visited retailers in Lucknow region and for secondary data went through various journals and Internet also. The information collected is relevant, correct and unbiased. 3. Research Approach:I followed survey technique for collecting the data. In market survey of whirlpool I have used survey research approach. Here I carried out information from retailers. I have carefully selected the instrument and methods of surveying like I have chosen personal methods, not telephone survey because of higher response rate meaningful responses. This helped me to get the general in whirlpool etc.
4. Research Instruments: The research instrument used was questionnaire form. For this I have visited each and every outlet and check the competition facing by the whirlpool brand from others in market. A detailed questionnaire was prepared for this. In my research process I have used close ended and openended questionnaire where respondents could answer in their manner. Through this I was able to
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extract information from the respondents about whirlpool and other brand competing each other. 5. Sampling Plan: In deg a sampling plan following points where considered: Sampling unit It includes who is to be surveyed in research. I have surveyed retailers of Lucknow region. Sampling size I have surveyed about each and every outlet of the area specified to me size would reach up to 50 retailers. I have covered the area of Lucknow region like Alambagh, Hazratganj, Naka Hindola, Indiranagar, Rajajipuram, etc Sampling Technique For carrying out survey at retail level non-probability method of sample and hypothesis testing was used. 6. Methods of data interpretation: In this market study I have used pie chart and bar chart for data analysis and interpretation because pie chart and bar chart are easiest and comprehensive medium for presentation of data.
Data Collection This report was prepared after collecting data from the retailers/ dealers and past data was arranged from the various studies conducted in last few years and various other records of Page | 37
company. Primary Data: These data were collected by personal interview with retailers/ dealer. For this purpose questionnaires were prepared in such that all necessary data would be collected. Secondary Data: Information regarding the project, secondary data was also required. These data were collected from various past studies and other sources of the company.
Page | 38
OBJECTIVE OF THE PROJECT
OBJECTIVES
Primary Objective: “To study the competitive environment of stabilizer market”
Page | 39
Secondary Objectives: ⇨Which are the major players of stabilizer market.
⇨To find the market share of DUROMAX.
⇨To find the market share of other competitor.
⇨What competitors are offering.
⇨To find out customers parameter of purchasing.
⇨To find out market condition of stabilizers in Lucknow.
Page | 40
CHAPTER-8 OBSERVATION AND FINDINGS
FINDING AS PER STUDY OF QUESTIONNAIRE
Following chart represents the number of retailers selling stabilizers from there shop
Yes – 39 No – 11
Page | 41
INTERPRETATION The number of retail outlet who keeps stabilizers on their shop are more than those who does not in Lucknow, as it is 78% retailers who keeps stabilizers and 22% who does not.
The number of brands of which retailers are aware of, which came out from the survey is shown in the below pie chart
One – 9 Two – 11 Three – 20 More Than Three – 10
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INTERPRETATION The number of stabilizers of which retailers are aware of are two or three as 40% retailers are aware of three brands and 22% are aware of two brands.
When 50 retailers were interviewed the name of brands which they are aware of, the outcome is presented in below chart
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INTERPRETATION 16% retailers are aware of Mark stabilizers 15% are aware of Charan but 45% are aware of local manufactured stabilizers which means local manufactured stabilizers has covered huge market.
Following chart could depict the important parameter on which stabilizers mostly sold
Price – 3 Quality – 32
Page | 44
Brand Name – 9 Scheme – 6
ITERPRETATION 64% retailers says that its quality on the basis of which customer purchase stabilizers 18% says that it is brand name and 12% says that it is price. So, quality is the important parameter for more sale of stabilizer.
Following chart represents the brand of stabilizers that mostly sold from retail shop
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INTERPRETATION 34% Others, 25% Mark, 15% Stambh, and 12% V-guard sale of stabilizers reflexes that if we leave others which include many small brand and retailers made stabilizers, it is Mark which s maximum number of sale of stabilizers in Lucknow.
When it is asked from the retailers about the profit margin they gets maximum from the company they replied:
Page | 46
INTERPRETATION According to above data it was found that local stabilizers are giving higher profit margin to the retailers in comparison to Whirlpool and others.
The awareness of Duromax is being surveyed by me and is shown in the chart drawn below
Yes – 35 No – 15
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INTERPRETATION 70% retailers are aware that whirlpool has launched its stabilizers by giving the name Duromax in comparison to 30% does not know.
People responses about the price of Whirlpool s Stabilizer (Duromax) is represented in the drawn graph.
Expensive – 14 Affordable – 33 Slightly Overpriced – 2 Page | 48
Cheaper – 1
INTERPRETATION Whirlpools’ stabilizers are affordable for customer in of price says maximum retailers . As 66% says it is affordable in comparison to 30% says it is expensive, 3% says it is slightly overpriced and 1% says it is cheaper.
HYPOTHESIS TESTING 50 respondents were being selected randomly from the areas visited and following interpretations were being drawn: Affordable Whirlpool –
33
Not Affordable 17
Page | 49
V-Guard –
40
10
To find more competent pricing strategy, hypothesis were drawn and
x
^2 is being
applied on the hypothesis.
Ho (Null Hypothesis) Whirlpool stabilizers are affordable to customers.
Ho (Alternate Hypothesis) V- Guard stabilizers are affordable to customers Company Name Whirlpool V-Guard Total
Affordable 33 40 73
Cant Affordable 17 10 27
Total 50 50 100
On the basis of this hypothesis, the expected frequency corresponding to the number of person surveyed would be: Observed frequency 33 17 40 10
Expected frequency 50*73/100=36.5 50*27/100=13.5 50*73/100=36.5 50*27/100=13.5
O-E 33-36.5= 17-13.5= 40-36.5= 10-13.5=
(O-E)^2 -3.5 3.5 3.5 -3.5
12.25 12.25 12.25 12.25
(O-E)^2/E 3.5 3.5 3.5 3.5
∑[(O-E)^2/E]=14
Therefore,
Hence, the Calculated Value of
x ^2 = 14
Degree of freedom (c-1)(r-1) = (2-1)(2-1) =1 Table Value of 1 degree of freedom at 5 per cent level of significance is 3.841
Page | 50
Interpretation: The table value of
x ^2
for 1 degrees of freedom at 5 per cent level of significance is
3.841. Comparing calculated and table values of
x ^2,
we find that calculated value is
more than the table value and as such could have arisen due to fluctuations of sampling hence the hypothesis is rejected. We can thus, conclude that Whirlpool stabilizers are not affordable.
When the respondent were asked regarding the effectiveness and efficiency of whirlpool stabilizer to compete with the other brands, they responded
Yes – 40 No – 10
Page | 51
CHAPTER-9 COMPETITIVE ANALYSIS
INTERPRETATION Whirlpools’ stabilizers are not convenient to compete in market it says 80% of retailers in comparison to 20% says it is convenient.
.
Page | 52
DUROMAX COMPETITORS’ ANALYSIS BASED ON PORTERS’ FIVE FORCE MODEL
Threat Of New Entrants –
Pagaria
Page | 53
Industry competitorLG, Kenstar,
Profit Margin
Inbuilt stabilizers on AC & Refrigerator
Threat of substitutes -
Mark,Charan
Bargaining Power of Buyers - Good Quality & Service
Bargaining Power of Suppliers-
Threat Of New Entrants A growing industry often faces threat of new entrants that can alter the competitive environment. Same is with the stabilizer industry as whirlpool has a threat that new entrant like PAGARIA and many more could increase competition.
Rivalry Among Existing Competitors Rivalry among existing competitors is often the most conspicuous of the competitions. Companies like LG, KENSTAR, WHIRLPOOL, MARK & V-GUARD are mutually Page | 54
dependent and thus any competitive move of a firm usually affects others and may be retaliated.
Threat Of Substitutes An important force of competition is the power of substitutes. The kind of substitute of which Whirlpool have threat is that, many company is now producing there Refrigerators and AC’s with inbuilt stabilizers.
Bargaining Power Of Suppliers Profit margin is the point where suppliers could bargain for having more profit and the company which provides maximum profit they promotes that particular brand of stabilizers.
Bargaining Power Of Buyers There are different degree of bargaining power of buyers. From the analysis it comes out that buyers could compete the industry by forcing down prices of stabilizers, bargaining for higher quality or more services.
BCG Analysis Relative Market Share HIGH
STAR
LOW
QUESTION MARK-
Mark,Charan V-Guard
?
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DOG - Whirlpool CASH COW Sterlite
H o u n d d o g . ic o
The market share of whirlpool (DUROMAX) is very low and its market growth rate is also low in comparison to other major players in the market in stabilizers. So while doing BCG analysis of duromax it is found that it should be placed in the box of dog which represent that it has low market share as well as low market growth rate. Whereas other companies like MARK and CHARAN has high growth rate and high market share thus ranked star according to the BCG analysis. Sterlite is in the table of cash cow as it has high growth rate so it will capture more market in future whereas V-guard has high market share but low growth rate is thus in question mark.
SWOT ANALYSIS STRENGTHS: ● Whirlpool is world’s no. 1 company in consumer durable products, so it has a good reputation in the market. Page | 56
● Whirlpool has a very wide range of model of stabilizers. ● Large number of workforce is working for increase in sales of stabilizers for Whirlpool. ● There are four service centre of Whirlpool in Lucknow which advances it against other competitor.
WEAKNESS: ● There are 30% retailers who are still not aware of Whirlpool stabilizers (Duromax) is a drawback for the company. ● Post sales service is bit on a poor side.
OPPORTUNITIES: ● Stabilizer market is still untapped by many of the organized sector. ● Company has the brand equity in the eyes of customer, so it is easier to penetrate into the market.
THREAT: ● Cut-throat competition with the Local brands. ● Such refrigerators and AC’s are introduced by other consumer durable companies in which stabilizers are inbuilt with the product.
LIMITATIONS ● The research was conducted in very small area.
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● Time factor was also important, 6-8 weeks period is not sufficient to grow through the entire topic. For through study it need more time.
● Many retailers filled the questionnaire in careless manner, so it was difficult to make them hold for time.
● Lack of expertise in regard to the research process turned out as a limitation for handling and gathering the data to draw accurate result of the project.
● The number of respondent to the questionnaire is also less in number, so we cannot analyze the actual market scenario.
Page | 58
SUGGESTION AND RECOMMENDATION
SUGGESTION AND RECOMMENDATIONS
⇨ Company
should improve there post sale services where it is lacking
behind. ⇨ Company should do regular visit to the retail outlets for having more personal s with retailers.
Page | 59
⇨Duplicate stabilizers having logo of Whirlpool ( Duromax) is also available in market curtailing business of the company, so company should take necessary steps to keep control on it. ⇨The price of Whirlpool stabilizers are also little bit on higher side in comparison to others so it should also be reduced. ⇨During the project work it was found that less promotional activity is causing loss of market base for Whirlpool so company should promote Duromax more aggressively. ⇨During the project work it was found that the sale of Duromax is the lowest so company should concentrate for increasing its market in this field. ⇨Inbuilt stabilizers in AC’s and Refrigerators introduced by some company are hampering market share so company should focus on such kind of technologies also. ⇨It was observed that maximum ed complain in Duromax is that of transformer in stabilizers are burning out very quickly, so company should reassess the technical aspect of the product. ⇨Company should increase warranty period of their product which is less than others in the market. ⇨Company could encash brand name by giving little bit more profit margins to retailers in comparisons to others. ⇨Company should create more awareness in customers as well as in retailers regarding duromax.
Page | 60
Page | 61
CONCLUSION
CONCLUSION 1. Whirlpool corporation is one of the leading company of consumer durable goods but when it comes to stabilizer it is not so. Quality and good service is something what required for its supremacy.
2. The market share of Duromax is also quite low than others.
3. After analyzing competitors it can be said that local brands is causing cut- throat competition for the organized sector. Page | 62
4. In the project it was observed that stabilizers having low cost and long replacement warranty are leading the market.
5.
After analyzing the market it can be said that post sales service plays a vital role in market penetration.
6.
Retailers are expecting more profit margin from Whirlpool.
Page | 63
BIBLIOGRAPHY
BIBILIOGRAPHY In the preparation of this project report, I have taken help from the under mentioned sources:
BOOKS & JOURNALS ⇨ KOTLER PHILIP , MARKETING MANAGEMENT , PEARSON EDUCATION, 13th EDITION ⇨ KOTHARI C.R., RESEARCH MRTHODOLOGY, NEW AGE INTERNATIONAL
Page | 64
PUBLISHERS, REVISED 2nd EDITION ⇨ CHERUNILAM FRANCHIS , BUSINESS ENVIRONMENT, HIMALAYA PUBLISHING HOUSE
WEB SITE ⇨ www.google.com ⇨www.whirlpoolindia.com ⇨www.wikipedia.com
APPENDIX Page | 65
Retail shop: Add.:
___________________________________________ ___________________________________________ ___________________________________________
Retailer’s Name : _________________________________________ no.
___________________________________________
QUESTIONNAIRE 1) Do you sale stabilizer from your shop?
Yes
No
Page | 66
2) How many brand of stabilizer are you aware of? 1.One
3.Three
2.Two
4.More than three
3) Name the stabilizer brand you are aware of. 1.__________________________________ 2.___________________________________ 3.___________________________________ 4.___________________________________ 5.___________________________________ 4) What is the important parameter for more sale of stabilizer?
5)
1. Price
3. Brand Name
2. Quality
4. Schemes
Which is the brand of stabilizer that mostly sold from your shop?
Ans : __________________________________
6) How much it has priced? Ans: ___________ 7) How is it’s post sales service? Excellent
Good
Average
Poor
8) Which company’s stabilizer gives you high profit margine? Ans. __________________________________ 9) Does there any new brand enter in stabilizer market?
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Yes
No
If yes, then name that brand __________________________________ 10) Are you aware about whirlpool’s stabilizer (DUROMAX)? Yes
No
11) How do you feel whirlpool’s stabilizers are priced? 1. Expensive
3. Slightly overpriced
2. Affordable
4. Cheap
12) Do you feel that whirlpool stabilizers are convenient for the competency? Yes
No
13) What are your suggestions for whirlpool to increase the sales? _________________________________________________________________
Retailer’s signature
Page | 68
“Competitor Analysis Of Whirlpool Corporation With Special Reference To The Stabilizer Market In Lucknow.”
PREPARED FOR AND PRESENTED TO
WHIRLPOOL OF INDIA LIMITED UNDER THE GUIDANCE OF COMPANY SUPERVISOR NAME
COLLEGE MENTOR NAME
Mr. Kuldeep Dubey
Ms. Surabhi Mukherjee
SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN MANAGEMENT
BY
MR. ROSHAN PRASAD KARN
IEM – MANAGEMENT COLLEGE ANWARI BARABANKI (2009- 2011) Page | 1
DECLARATION
I, Mr.Roshan Prasad Karn here by, declare that the project report entitled ““Competitor
analysis
of
whirlpool corporation with special reference to the stabilizer market in Lucknow.”, has been done by me under the supervision of Mr.KULDEEP DUBAY Asst. Branch manger of whirlpool, Lucknow and under the able guidance of Ms. Surabhi Mukherjee, Faculty, I.E.M Management College, and it has not been submitted
earlier
to
any
university
or
any
other
institution.
(ROSHAN
PRASAD
KARN)
PLACE: LUCKNOW Page | 2
DATE:
ACKNOWLEDGEMENTS
I
wish
to
express
my
gratefulness
to
Miss
SURABHI
MUKHERJEE, faculty and my mentor for the project, I.E.M Management College for her constant guidance during the project.
I am extremely indebted to Mr. SANJEEV SONI, Branch Manager, Service Department, Whirlpool, Lucknow for giving permission to undertake the project work in his organization.
It is a great privilege to me to express my sincere thanks to Mr.KULDEEP DUBAY, Asst. Manager, Service Department, Whirlpool for his help, cooperation and during my project work.
Lastly, I have absolutely no words to express my feelings of gratitude to the staff of marketing executives for their Page | 3
full cooperation and valuable suggestions in the completion of my project work.
(ROS HAN PRASAD KARN)
Table Of Content Description
Page no.
Chapter-1
Introduction
6–7
Chapter-2
Industrial Profile
8–9
Chapter-3
Company Profile
11 – 18
Chapter-4
Organization Chart
19 – 20
Chapter-5
Product Range
21 – 30
Chapter-6
Project Profile
31 – 32
Chapter-7
Research Methodology
33 – 38
Chapter-8
Observation and Findings
39 – 50
Chapter-9
Competitive Analysis
51 – 55
Chapter-10
Suggestions
57 – 59
Chapter-11
Conclusion
60 – 61
Bibliography
62 – 64 Page | 4
ANNEXURE
65 – 66
EXECUTIVE SUMMARY The objective of summer training from academic learning point of view is to provide an interaction with real world and understand the problems, issues and challenges being faced by corporate world, and to give an opportunity to the student to apply the learning at campus. The trainee is expected to work on live projects and work out a feasible solution for the same. For the learner, it is an opportunity to understand about the functioning of the organization at broader level, understanding and experiencing what to expect after ing the corporate world. It is an opportunity to understand work culture. On 17th June 2010 I started my project under the guidance of Mr. Kuldeep Dubey (Asst. Manager) LUCKNOW. I have been allocated the area for survey in LUCKNOW. Areas covered by me are Naka Hindola, Indiranagar, Rajajipuram, Alambagh etc. In 1st phase of this project I have visited service centre of Whirlpool at Rajajipuram for collecting technical information of stabilizers that Whirlpool manufactures. In 2nd phase of the research I have visited to dealers of stabilizers in Lucknow for doing survey about different brand of stabilizers.
Page | 5
In 3rd phase I have prepared a summary report of Lucknow electronic market on that basis it observed that stabilizer market is on peak in Lucknow due to problem of voltage fluctuation and thus competition is enormous. In 4th phase I prepared few questionnaire and on that basis done survey in different electronic retail outlets in Lucknow. In 5th phase of the research I analyzed the entire thing and on that basis I prepared a report.
CHAPTER-1
INTRODUCTION Page | 6
INTRODUCTION TO STUDY
“COMPETITOR ANALYSIS OF WHIRLPOOL CORPORATION WITH SPECIAL REFERENCE TO THE STABILIZER MARKET IN LUCKNOW.” In the given topic, the research is to be done for finding industry functioning on the basis of competition it is facing from its competitors. The stabilizer market is covered by huge number of marketers creating competition for each others. The marketing strategy of all have to analysed and a model is to be drawn suggesting the company how to increase market share of stabilizers The research was important with a perspective of creating and developing new horizons of marketing. The new horizons can be developed with a preview of newly developed project along with the developing projects by doing a potential analysis of company’s marketing and its competitors strategies. Market research done in different area of Lucknow can give the resultant in the form of cause and effect relationship where company can assess its competitor and frame there strategies based on that.
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This topic was important for Whirlpool hence it was selected. Through this topic we can analyse the competitive environment and could find that where company stands in stabilizer market. This topic will also help to understand different market strategies adopted by different marketer for increasing sale.
CHAPTER-2 INDUSTRY PROFILE
Page | 8
INDUSTRY PROFILE
Stabilizers are referred as consumer durable product which is also presented as accessories by many company manufacturing it. As stabilizers are basically used for controlling voltage for uninterrupted working of A.C, Refrigerator, T.V etc thus it is promoted as accessories. The stabilizer market is very struggling area of interest for organized sector as the market covered by unorganized sector is higher in percentage in comparison to the organized sector. Local brands are enormous in number in the market that it is difficult to make a place in the market with bang.
FEW MAJOR PLAYERS IN THE MARKET FOR STABILIZERS ARE: 1. MARK 2. CHARAN 3. V-GUARD 4. STAMBH Page | 9
5. STERLITE 6. UNIVOLT
Beside these there are many medium and small players in the market in the form of organized or unorganized sector operating relatively and creating enormous competition. And the competition is expected to be more complex in coming years as many company is now providing stabilizers inbuilt on A.C’s and Refrigerators’ which would increase pressure on others to do something like that and thus the market of stabilizers will moved to other way. Stabilizer industry is such that duplicate products are easily available in the market. Local stabilizers having logo of DUROMAX, KENSTAR, LG etc. are running successfully and in this way they are cashing the brand name. In spite of that stabilizer market is still wide and open for growth and with the help of proper strategies it could be turned into one of the profitable area of market.
CHAPTER-3 Page | 10
COMPANY PROFILE
COMPANY PROFILE HISTORY With brand names recognized by just about anyone who has ever separated dark colors from light, Whirlpool is one of the world's top home appliance makers. It manufactures washers, dryers, refrigerators, air conditioners, dishwashers, freezers, microwave ovens, ranges, trash compactors, air purifiers, stabilizers and more. In addition to Whirlpool, the company sells its products under a bevy of brand names, including Kitchen Aid, Maytag, Jenn-Air, Roper, Amana, and Magic Chef. Whirlpool peddles its appliances in North America, Europe, Latin America, Africa, the Middle East, and Asia.
Page | 11
Whirlpool, right from its inception in 1911 as first commercial manufacturer of motorized washers to the current market position of being world's number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is headquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, Kitchen Aid, Roper, Estate, Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond achievable feat of any other in the industry. Whirlpool initiated its international expansion in 1958 by entering Brazil. However, it emerged as truly global leader in the 1980's. This encouraging trend brought the company to India in the late 1980s. It forayed into the market under a t venture with TVS group and established the first Whirlpool manufacturing facility in Pondicherry. Soon Whirlpool acquired Kelvinator India Limited in 1995 and marked an entry into Indian refrigerator market as well. The same year also saw acquisition of major share in TVS t venture and later in 1996, Kelvinator and TVS acquisitions were merged to create Indian home appliance leader of the future, Whirlpool India. This expanded the company's portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 25%. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features an infrastructure that is witness of Whirlpool's commitment to consumer interests and advanced technology. In the year ending in March '09, the annual turnover of the company for its Indian enterprise was Rs.1,719 Crores. The company's brand and image speaks of its commitment to the homemaker from every aspect of its functioning. It has derived its functioning principles out of an undaunted partnership with the homemakers and thus a slogan of “You and whirlpool, the world's Page | 12
best homemaker” dots its promotional campaigns. The products are engineered to suit the requirements of ‘smart, confident and in-control' homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions.
THE COMPANY’S VISION Whirlpool’s pervasive vision, “Every Home, everywhere, with pride, ion and performance”, rests on the pillars of innovation, operational excellence, customer-centric approach and diversified talent. These are embedded within our business goals, strategy, processes and work culture.
CORE COMPETENCIES Innovation: Unique and compelling solutions valued by there customers and aligned to there brands create competitive advantage and differentiated shareholder value. Operational Excellence (OPEX): A methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of knowledge using critical thought and planned experimentation helps them to achieve operational excellence. Customer Excellence: Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer.
YEAR - WISE MILESTONE FOR WHIRLPOOL ⇨1908: The first Automatic washer was launched to public in late 1908, by 1900 Corporation which in 1911 was renamed to Upton Machine Company.
⇨1911: Louis Upton founded the Upton Machine Company in this year to produce motordriven wringer washers.
⇨1916: First order of washers was sold to Sears, Roebuck & Co. ⇨1929: Upton Machine Company merged with Nineteen Hundred Washer Company of NewYork . Page | 13
⇨1948: First 'Whirlpool' brand automatic washer with dual distribution was introduced. It included two product lines one each was distributed through Sears and Nineteen Hundred.
⇨1957: The company was rechristened as ' The Whirlpool Corporation.' ⇨1958: The company moved out of country for the first time and invested in Brazilian appliance market through purchase of equity in Multibras S.A.
⇨1968: The Elisha Gray II Research & Engineering Center was completed in Benton Harbor . In the same year the company's revenues crossed the legendary $1 Billion mark for the first time.
⇨1978: Within a decade company doubled its feat of $1 Billion mark and reached the $2 billion revenue level.
⇨1986: The 'Kitchen Aid' division of Hobart Corporation was purchased. ⇨1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to form TVS Whirlpool Ltd. ⇨1989: This was a historic year since the revenues catapulted to heights of over $6 Billion mark. Also, the t venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe.
⇨1990: Company established t venture with Matsushita Electric Company of Japan to produce vacuum cleaners for the North American market.
⇨1991: The company introduced and committed globally to its Worldwide Excellence System, which is a TQM program dedicated to exceeding customer expectations. The vision to globalize 'Whirlpool Corp'. was realized in the same year.
⇨1993: First time Whirlpool became the No.1 stand-alone brand in UK, Ireland, Netherlands and Belgium.
⇨1995: Whirlpool Corp. acquired majority of stake in the TVS Whirlpool Ltd. The DC manufacturing facility of Kelvinator India was also acquired.
Page | 14
⇨1996: Whirlpool Washing Machines Ltd. and Kelvinator India Ltd. merged together to form Whirlpool of India Ltd.
⇨1999: Whirlpool of India crossed the milestone of 1 million sales of appliances. ⇨2001: Whirlpool India ed profit & sold 1.2 million appliances. It also achieved the No.1 position in DC & FA.
Page | 15
⇨2005: Received the 2005 American Business Ethics Award, which honors companies that exemplify high standards of ethical behavior in their everyday business conduct.
⇨2006: Honored with the 2006 National Award for Ethics & Values from the Confederación de Cámaras Industriales de los Estados Unidos Mexicanos.
⇨2006: Whirlpool Corporation acquires Maytag and become the Worlds largest white goods company.
⇨2007: Received the 2007 Cause Marketing Golden Halo Award for Business, America's highest honor for companies and organizations that give back to the community through creative and effective cause marketing campaigns.
ACHIEVEMENTS
Whirlpool Corporation has been honored with two iF Product Design Awards 2009, respectively, for the Whirlpool Glamour Oven and for GREENKITCHEN, a kitchen eco-system design concept. The announcement was made in Nov 08 by the iF Industry Forum Design GmbH., and represents GREEN Kitchen's second design award in the past two months, following its Gold SPARK Award, won in October 2008.
2009: Whirlpool was voted Product of the Year and received the award for the 'Best Innovative Product' in the popular refrigerators category. This was based on 40,000 consumers across 36 towns in India voting Whirlpool Frost Free Refrigerators with 6th sense as the Best Innovation in the Popular Refrigerator Category.
Page | 16
2009: Hewitt ‘Best Employers in India’ 2009 Study
2009: Named one of the “100 Best Corporate Citizens” by Chief Responsibility Officer (formerly Business Ethics) magazine in 2009 and from 2000-2007
2008: Included in the Dow Jones Sustainability, FTSE4Good and KLD Global Sustainability Indexes, three of the world’s most comprehensive reviews of sustainable business practices
2008: Whirlpool brand was named one of the 10 top greenest brands by U.S. consumers, according to a 2008 BrandWeek magazine survey.
2008: Named one of the “2008 World’s Most Ethical Companies” by Ethisphere magazine
2008: Whirlpool OF India” was awarded the NDTV Profit Business & Leadership Award 2008 for “The Best Consumer Durables Company. 2008: The year 2008-09 saw Whirlpool India achieve great milestones in our attempt to be an “Employer Of Choice”.
Page | 17
2008: The Business Today - Mercer -TNS Study – 2008. ‘Top 20 Best Companies to work for in India’
BRAND AMBASADOR OF WHIRLPOOL
Like a fresh breath, Kajol wafted into the film world that thrived on predetermined codes of demeanor. She carries the halo of spontaneity. Kajol swept across millions of hearts with her energetic pace. Her vivaciousness and frisky persona proved contagious and singularly her own in the contemporary scene. Kajol has made a distinctive indent into the Hindi film industry. Though she has the girl next door image and is not as glamorous as the others in her field, Kajol is outstanding in her acting. The flexibility of her acting can be seen from the various characters done by this natural actress. She gives more attention to her acting than the financial success of a film. Kajol's eventful journey from 'Bekhudi' to 'Fanaa' shows the power of her versatility, sheer hard work and dedication towards art behind all of her roles. She doesn't give more importance to publicity or celebrity because she believes acting is purely a profession . Kajol has come to stay in the industry as a mainstream actress with an inimitable charm and liveliness coupled with the talent that renders eye-filling performances. Her reel life image is not diverse from her real-life image. She is as outspoken and lively as she seems in her characters in Page | 18
the films. Bold and beautiful-Kajol has won millions of hearts with her impish vivacity within a short span. No wonder then that Kajol is rated as superb among her generation of leading ladies.
Ajay Devgan, known more for his intense acting abilities carved a niche for himself as an actor. Ajay is one actor who has gained stardom on the merit of his performances, not based on Bollywood-style good looks. Earlier known as a dhishum dhishum action hero, Ajay shifted his image to a romantic lead, setting the trend with Ishq, a soft romantic comedy paired opposite wife- Kajol. The image became much prominent with Pyaar To Hona Hi Tha, bringing out his softer side. Then there was no looking back for Ajay. It became a habit for him to deliver emotional roles par excellence.
Page | 19
CHAPTER-4 ORGANISATION CHART
Page | 20
WHIRLPOOL CORPORATION JEFF FETTIG (Chairman, President & CEO)
LARRY VETURELLI (VP & Controller)
DAVID SWIFT
MICHAEL TODMAN
Director & President
Director & President
(North America)
(International)
ARVIND UPPAL Managing Directing (India)
Page | 21
SYED SHAHZAD AKHTAR V.P Sales, Marketing & Export
SHANTANU DAS GUPTA
TAMAL KANTI SAHU
V.P Corporate Affairs & Strategies
V.P Sales
CHAPTER-5 PRODUCT RANGE
Page | 22
PRODUCT RANGE Whirlpool is the World’s No 1 Home Appliance company that warms up to the varied needs of consumers worldwide, delivering quality products. Millions across the globe associate Whirlpool with unmatched convenience and superior technology. Whirlpool’s world class products are engineered to suit the requirements of ''''smart, confident and in-control'''' homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions.
Refrigerators
Page | 23
Whirlpool refrigerators, trusted by homemakers across the globe come to you with : • 6th Sense™ cool system for superior cooling in the peak of summers • Unique utility features to add that ''magic'' to your homemaking • Range of storage capacity to suit your needs • Energy efficient technology for cooling retention during power cuts • Sleek designs and contemporary styling
Heater
After comprehensive research and years of development on Oil Filled Heaters, Whirlpool is proud to present Genius - An indoor heating device equipped with advanced 6th Sense Temperature Control Technology and a unique Electronic Interface and a host of other exciting features
Washing Machine
For a 100 years of now, Whirlpool has been synonymous with excellence in fabric cleaning and care 6th sense is women’s' intuition captured by technology. It enables our machine to adjust water level and detergent quantity depending on your wash load and fabric type. Stain wash : Brings together unique properties of Hotwash and 1-2 , 1-2 hand wash to completely remove all common household stain.
Page | 24
Air Condition
The Whirlpool Mastermind series of Air Conditioners. Built to perfection and loaded with host of unique features, the Mastermind series offers the best of technology, design and unbeatable built quality to meet your cooling requirements at an unbelievably affordable cost.
UPS In addition to its existing product range, Whirlpool now comes up with new addition in the range of power accessories "Elantra" H-UPS. This H-UPS comes with a two year warranty. With Elantra you get the advantage of a host of features, international quality and an exciting range to suit your needs
Microwave
Whirlpool microwave oven bring to you a range of Microwave ovens designed to re-define ease, convenience and variety in cooking with : •
A range of microwave ovens made just for India
•
Plenty of choice in capacity and types
•
Features that help make “ Variety khana rozaana
Page | 25
Dryer Whirlpool with its leadership in fabric care solutions worldwide brings to you a 100% dryer exclusively designed and developed to help you cope with the Indian weather conditions: •
The 100 percent dryer comes with a multiple drying programs which give you the best drying for your clothes
•
The best of European technology being brought to India for the first time
Fridge Aid
•
The energy efficient machines comply with
DefrostEuropean Timer safety standard. the stringent
Water Purifier The revolutionary range of Whirlpool’s RO water purifier comes with 6th sense purify and protect Technology.
Accessories
Freshonizer
Stabilizers
Pedestal
Fab O Soft
Fabricare kit
Lemon n Onion Box
Page | 26
Calfre
Trolley
DUROMAX In all of the products of whirlpool I have done my project on Stabilizers which they categorized under accessories. Stabilizers of Whirlpool are named Duromax. It comes under different models and with specific features.
Different Models Of Duromax:
Page | 27
AC Stabilizers
MODEL VX-1640WD
MODEL DESK Automatic Voltage Stab for AC
WORKING
AUTO-CUT& WTY VOLTAGE
RANGE
TIME DELAY
160-280
Y
1Y
INDICATOR Digital Display
160-280
N
1Y
Digital Display
135-290
Y
1Y
Digital Display
110-280
Y
1Y
Digital Display
160-280
Y
1Y
Digital Display
Upto 1.5 ton LX-1640WD
Automatic Voltage Stab for AC Upto 1.5 ton
VX-1340WD
Automatic Voltage Stab for AC Upto 1.5 ton
DX-1140D
Automatic Voltage Stab for AC Upto 1.5 ton
DX-1150D
Automatic Voltage Stab for AC Upto 2.0 ton
AC Stabilizers Deluxe MODEL
MODEL DESK
WORKING RANGE
LX-1640
Automatic Voltage Stab for AC
AUTO-CUT& WTY VOLTAGE TIME DELAY
INDICATOR
160-280
N
1Y
LED
160-280
N
1Y
Voltmeter
160-280
Y
1Y
Voltmeter
160-280
N
1Y
LED
Upto 1.5 ton LX-1640V
Automatic Voltage Stab for AC Upto 1.5 ton
VX-1640
Automatic Voltage Stab for AC Upto 1.5 ton
LX-1630
Automatic Voltage Stab for AC Upto 1.0 ton
Page | 28
LX-1650
Automatic Voltage Stab for AC
160-280
N
1Y
LED
140-280
N
1Y
Voltmeter
140-280
Y
1Y
Voltmeter
140-280
N
1Y
Voltmeter
140-280
N
1Y
Voltmeter
130-280
Y
1Y
Voltmeter
Upto 2.0 ton LX-1440V
Automatic Voltage Stab for AC Upto 1.5 ton
VX-1440
Automatic Voltage Stab for AC Upto 1.5 ton
LX-1430V
Automatic Voltage Stab for AC Upto 1.0 ton
LX-1450V
Automatic Voltage Stab for AC Upto 2.0 ton
VX-1340
Automatic Voltage Stab for AC Upto 1.5 ton
FEATURES: ⇨Enables appliance performance during high voltage fluctuations. ⇨World class design for aesthetics & durability. ⇨Design and tested for compliance with National and International standards of safety & electromagnetic compatibility. ⇨Less No Load Current than ISI Standard for better Power efficiency. ⇨Vacuum impregnated transformer for better insulation & reliability.
REFREGERATOR STABILIZERS
MODEL
MODEL DESC
LX0705V
Automatic Voltage Stabilizer
INPUT
OUTPUT
VOLTAGE
VOLTAGE
AUTO-CUT
VOLTAGE
TIME DISPLAY INDICATOR
75-290
160-260
N
Voltmeter
130-280
190-250
Y
Digital
for Refs upto 450L Symphony VX-1304D Digital Automatic Voltage Stabilizer for Refs upto 310L Direct Cool
Page | 29
VX-1305D Digital Automatic Voltage Stabili-
130-280
190-250
Y
Digital
110-280
180-250
Y
Digital
110-280
160-260
N
LED
130-260
160-260
N
LED
140-260
160-260
N
LED
140-260
160-260
N
Voltmeter
145-260
160-260
Y
LED
160-260
160-260
Y
LED
zer for Refs upto 450L Symphony VX-1105D Digital Automatic Voltage Stabilizer for Refs upto 450L Symphony LX-1104
Automatic Voltage Stabilizer for Refs upto 310L Direct Cool
LX-1304
Automatic Voltage Stabilizer for Refs upto 310L Direct Cool
LX-1404
Automatic Voltage Stabilizer for Refs upto 450L Symphony
LX1404V
Automatic Voltage Stabilizer for Refs upto 450L Symphony
DX-1404
Automatic Voltage Stabilizer for Refs upto 450L Symphony
AX-1605
Automatic Voltage Protector for Refs upto 450L Symphony
SCOOP SERIES- POWER ACCESSORIES
MODEL DX-1504
MODEL DESC Automatic Voltage Stabilizer for
INPUT
OUTPUT
VOLTAGE
VOLTAGE
AUTO-CUT
VOLTAGE
TIME DISPLAY INDICATOR
150-275
175-255
Y
LED
150-276
175-256
Y
LED
130-270
136-255
Y
LED
Refs upto 310L Direct Cool DX-1505
Automatic Voltage Stabilizer for Refs upto 450L Symphony
DX-1305
Automatic Voltage Stabilizer for
Page | 30
Refs upto 450L Symphony
FEATURES: ⇨ Enables appliance performance even during high voltage fluctuations. ⇨ Unique “ Over Current Protection” for extra safety. ⇨ Designed and tested for compliance with national and international standards of safety & electromagnetic compatibility.
Whirlpool of India Limited Balance Sheet as at March 31, 2010 Schedule
As at March 31,2010 (
in Lacks)
As at March 31,2009 (
in Lacks)
Source of Funds Shareholder’s Funds Share capital
A
27,921.43
27,921.43
Reserves & surplus
B
8,749.33
2,569.24
36,670.76
30,490.67
Loan Funds
Page | 31
Unsecured Loans
C
15.27
11,023.54
Total
36,686.03
41,514.21
D
72,221.47
69,948.49
APPLICATION OF FUNDS Fixed Assets Gross Block Less: Accumulated Depreciation/Amortisation
43,270.86
39,363.55
Net Block
28,950.61
30,584.94
1,327.19
201.87
30,277.80
30,786.81 59.22
Capital Work in Progress including Capital Advances Intangible Assets
E
33.21
Deferred Tax Assets (Net)
F
1,147.57
7,325.27
Current Assets, Loans and Advances Inventories
G
46,248.63
29,987.43
Sundry Debtors
H
13,978.69
8,206.65
Cash and Bank Balances
I
6,217.77
7,277.79
Loans and Advances
J
15,913.91
7,948.74
82,359.00
53,420.61
(i) Less: Current Liabilities and Provisions Current Liabilities
K
65,888.27
45,184.66
Provisions
L
11,243.28
5,915.51
(i i) N et Current Assets
(i-ii)
Miscellaneous Expenditure
M
77,131.55
51,100.17
5,227.45
2,320.44
−
940.42
(to the extent not written-off or adjusted) −
Profi t and Loss Total Notes to s
36,686.03
82.05 41,514.21
T
Page | 32
CHAPTER-6 PROJECT PROFILE
PROJECT PROFILE The project was primarily aimed at studying the competitive environment of Whirlpool India with special reference to stabilizers. And to find out the strategies adopted by different firm in competitive environment. On the project I did survey in different area of Lucknow on the basis of questionnaire I had prepared. The project was all survey based and the result which came out is all based on the factual information provided by the retailers which had filled my
Page | 33
questionnaire form. After collecting information I analyzed all data under the process of research methodology and then drawn a result from that. This study will help in know, what kind of competition whirlpool is facing from its competitors. This study will also be helpful for the company in this respect that what is the share of other competitors in stabilizer market? The most important thing which will come out from this project report is that how local players or unorganized sectors has covered so much share of stabilizer market.
Page | 34
CHAPTER-7 RESEARCH METHODOLOGY
RESEARCH METHODOLOGY Research in common refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information of a specific topic. It is the pursuit of truth with the help of study observation, comparison and experiment.
Developing Research Plan
Page | 35
After deciding the objective of marketing research next step is deciding research plan for gathering effective information related to this research project. The research plan consists of following steps, which are discussed subsequently.
Research Design 1.Descriptive Research: In my market survey descriptive research process was carried out to describe the market characteristics, competitor profiles, marketing strategies, market potential, etc. 2.Data source :While project study I used primary as well as secondary data source. For primary data collection I visited retailers in Lucknow region and for secondary data went through various journals and Internet also. The information collected is relevant, correct and unbiased. 3. Research Approach:I followed survey technique for collecting the data. In market survey of whirlpool I have used survey research approach. Here I carried out information from retailers. I have carefully selected the instrument and methods of surveying like I have chosen personal methods, not telephone survey because of higher response rate meaningful responses. This helped me to get the general in whirlpool etc.
4. Research Instruments: The research instrument used was questionnaire form. For this I have visited each and every outlet and check the competition facing by the whirlpool brand from others in market. A detailed questionnaire was prepared for this. In my research process I have used close ended and openended questionnaire where respondents could answer in their manner. Through this I was able to
Page | 36
extract information from the respondents about whirlpool and other brand competing each other. 5. Sampling Plan: In deg a sampling plan following points where considered: Sampling unit It includes who is to be surveyed in research. I have surveyed retailers of Lucknow region. Sampling size I have surveyed about each and every outlet of the area specified to me size would reach up to 50 retailers. I have covered the area of Lucknow region like Alambagh, Hazratganj, Naka Hindola, Indiranagar, Rajajipuram, etc Sampling Technique For carrying out survey at retail level non-probability method of sample and hypothesis testing was used. 6. Methods of data interpretation: In this market study I have used pie chart and bar chart for data analysis and interpretation because pie chart and bar chart are easiest and comprehensive medium for presentation of data.
Data Collection This report was prepared after collecting data from the retailers/ dealers and past data was arranged from the various studies conducted in last few years and various other records of Page | 37
company. Primary Data: These data were collected by personal interview with retailers/ dealer. For this purpose questionnaires were prepared in such that all necessary data would be collected. Secondary Data: Information regarding the project, secondary data was also required. These data were collected from various past studies and other sources of the company.
Page | 38
OBJECTIVE OF THE PROJECT
OBJECTIVES
Primary Objective: “To study the competitive environment of stabilizer market”
Page | 39
Secondary Objectives: ⇨Which are the major players of stabilizer market.
⇨To find the market share of DUROMAX.
⇨To find the market share of other competitor.
⇨What competitors are offering.
⇨To find out customers parameter of purchasing.
⇨To find out market condition of stabilizers in Lucknow.
Page | 40
CHAPTER-8 OBSERVATION AND FINDINGS
FINDING AS PER STUDY OF QUESTIONNAIRE
Following chart represents the number of retailers selling stabilizers from there shop
Yes – 39 No – 11
Page | 41
INTERPRETATION The number of retail outlet who keeps stabilizers on their shop are more than those who does not in Lucknow, as it is 78% retailers who keeps stabilizers and 22% who does not.
The number of brands of which retailers are aware of, which came out from the survey is shown in the below pie chart
One – 9 Two – 11 Three – 20 More Than Three – 10
Page | 42
INTERPRETATION The number of stabilizers of which retailers are aware of are two or three as 40% retailers are aware of three brands and 22% are aware of two brands.
When 50 retailers were interviewed the name of brands which they are aware of, the outcome is presented in below chart
Page | 43
INTERPRETATION 16% retailers are aware of Mark stabilizers 15% are aware of Charan but 45% are aware of local manufactured stabilizers which means local manufactured stabilizers has covered huge market.
Following chart could depict the important parameter on which stabilizers mostly sold
Price – 3 Quality – 32
Page | 44
Brand Name – 9 Scheme – 6
ITERPRETATION 64% retailers says that its quality on the basis of which customer purchase stabilizers 18% says that it is brand name and 12% says that it is price. So, quality is the important parameter for more sale of stabilizer.
Following chart represents the brand of stabilizers that mostly sold from retail shop
Page | 45
INTERPRETATION 34% Others, 25% Mark, 15% Stambh, and 12% V-guard sale of stabilizers reflexes that if we leave others which include many small brand and retailers made stabilizers, it is Mark which s maximum number of sale of stabilizers in Lucknow.
When it is asked from the retailers about the profit margin they gets maximum from the company they replied:
Page | 46
INTERPRETATION According to above data it was found that local stabilizers are giving higher profit margin to the retailers in comparison to Whirlpool and others.
The awareness of Duromax is being surveyed by me and is shown in the chart drawn below
Yes – 35 No – 15
Page | 47
INTERPRETATION 70% retailers are aware that whirlpool has launched its stabilizers by giving the name Duromax in comparison to 30% does not know.
People responses about the price of Whirlpool s Stabilizer (Duromax) is represented in the drawn graph.
Expensive – 14 Affordable – 33 Slightly Overpriced – 2 Page | 48
Cheaper – 1
INTERPRETATION Whirlpools’ stabilizers are affordable for customer in of price says maximum retailers . As 66% says it is affordable in comparison to 30% says it is expensive, 3% says it is slightly overpriced and 1% says it is cheaper.
HYPOTHESIS TESTING 50 respondents were being selected randomly from the areas visited and following interpretations were being drawn: Affordable Whirlpool –
33
Not Affordable 17
Page | 49
V-Guard –
40
10
To find more competent pricing strategy, hypothesis were drawn and
x
^2 is being
applied on the hypothesis.
Ho (Null Hypothesis) Whirlpool stabilizers are affordable to customers.
Ho (Alternate Hypothesis) V- Guard stabilizers are affordable to customers Company Name Whirlpool V-Guard Total
Affordable 33 40 73
Cant Affordable 17 10 27
Total 50 50 100
On the basis of this hypothesis, the expected frequency corresponding to the number of person surveyed would be: Observed frequency 33 17 40 10
Expected frequency 50*73/100=36.5 50*27/100=13.5 50*73/100=36.5 50*27/100=13.5
O-E 33-36.5= 17-13.5= 40-36.5= 10-13.5=
(O-E)^2 -3.5 3.5 3.5 -3.5
12.25 12.25 12.25 12.25
(O-E)^2/E 3.5 3.5 3.5 3.5
∑[(O-E)^2/E]=14
Therefore,
Hence, the Calculated Value of
x ^2 = 14
Degree of freedom (c-1)(r-1) = (2-1)(2-1) =1 Table Value of 1 degree of freedom at 5 per cent level of significance is 3.841
Page | 50
Interpretation: The table value of
x ^2
for 1 degrees of freedom at 5 per cent level of significance is
3.841. Comparing calculated and table values of
x ^2,
we find that calculated value is
more than the table value and as such could have arisen due to fluctuations of sampling hence the hypothesis is rejected. We can thus, conclude that Whirlpool stabilizers are not affordable.
When the respondent were asked regarding the effectiveness and efficiency of whirlpool stabilizer to compete with the other brands, they responded
Yes – 40 No – 10
Page | 51
CHAPTER-9 COMPETITIVE ANALYSIS
INTERPRETATION Whirlpools’ stabilizers are not convenient to compete in market it says 80% of retailers in comparison to 20% says it is convenient.
.
Page | 52
DUROMAX COMPETITORS’ ANALYSIS BASED ON PORTERS’ FIVE FORCE MODEL
Threat Of New Entrants –
Pagaria
Page | 53
Industry competitorLG, Kenstar,
Profit Margin
Inbuilt stabilizers on AC & Refrigerator
Threat of substitutes -
Mark,Charan
Bargaining Power of Buyers - Good Quality & Service
Bargaining Power of Suppliers-
Threat Of New Entrants A growing industry often faces threat of new entrants that can alter the competitive environment. Same is with the stabilizer industry as whirlpool has a threat that new entrant like PAGARIA and many more could increase competition.
Rivalry Among Existing Competitors Rivalry among existing competitors is often the most conspicuous of the competitions. Companies like LG, KENSTAR, WHIRLPOOL, MARK & V-GUARD are mutually Page | 54
dependent and thus any competitive move of a firm usually affects others and may be retaliated.
Threat Of Substitutes An important force of competition is the power of substitutes. The kind of substitute of which Whirlpool have threat is that, many company is now producing there Refrigerators and AC’s with inbuilt stabilizers.
Bargaining Power Of Suppliers Profit margin is the point where suppliers could bargain for having more profit and the company which provides maximum profit they promotes that particular brand of stabilizers.
Bargaining Power Of Buyers There are different degree of bargaining power of buyers. From the analysis it comes out that buyers could compete the industry by forcing down prices of stabilizers, bargaining for higher quality or more services.
BCG Analysis Relative Market Share HIGH
STAR
LOW
QUESTION MARK-
Mark,Charan V-Guard
?
Page | 55
DOG - Whirlpool CASH COW Sterlite
H o u n d d o g . ic o
The market share of whirlpool (DUROMAX) is very low and its market growth rate is also low in comparison to other major players in the market in stabilizers. So while doing BCG analysis of duromax it is found that it should be placed in the box of dog which represent that it has low market share as well as low market growth rate. Whereas other companies like MARK and CHARAN has high growth rate and high market share thus ranked star according to the BCG analysis. Sterlite is in the table of cash cow as it has high growth rate so it will capture more market in future whereas V-guard has high market share but low growth rate is thus in question mark.
SWOT ANALYSIS STRENGTHS: ● Whirlpool is world’s no. 1 company in consumer durable products, so it has a good reputation in the market. Page | 56
● Whirlpool has a very wide range of model of stabilizers. ● Large number of workforce is working for increase in sales of stabilizers for Whirlpool. ● There are four service centre of Whirlpool in Lucknow which advances it against other competitor.
WEAKNESS: ● There are 30% retailers who are still not aware of Whirlpool stabilizers (Duromax) is a drawback for the company. ● Post sales service is bit on a poor side.
OPPORTUNITIES: ● Stabilizer market is still untapped by many of the organized sector. ● Company has the brand equity in the eyes of customer, so it is easier to penetrate into the market.
THREAT: ● Cut-throat competition with the Local brands. ● Such refrigerators and AC’s are introduced by other consumer durable companies in which stabilizers are inbuilt with the product.
LIMITATIONS ● The research was conducted in very small area.
Page | 57
● Time factor was also important, 6-8 weeks period is not sufficient to grow through the entire topic. For through study it need more time.
● Many retailers filled the questionnaire in careless manner, so it was difficult to make them hold for time.
● Lack of expertise in regard to the research process turned out as a limitation for handling and gathering the data to draw accurate result of the project.
● The number of respondent to the questionnaire is also less in number, so we cannot analyze the actual market scenario.
Page | 58
SUGGESTION AND RECOMMENDATION
SUGGESTION AND RECOMMENDATIONS
⇨ Company
should improve there post sale services where it is lacking
behind. ⇨ Company should do regular visit to the retail outlets for having more personal s with retailers.
Page | 59
⇨Duplicate stabilizers having logo of Whirlpool ( Duromax) is also available in market curtailing business of the company, so company should take necessary steps to keep control on it. ⇨The price of Whirlpool stabilizers are also little bit on higher side in comparison to others so it should also be reduced. ⇨During the project work it was found that less promotional activity is causing loss of market base for Whirlpool so company should promote Duromax more aggressively. ⇨During the project work it was found that the sale of Duromax is the lowest so company should concentrate for increasing its market in this field. ⇨Inbuilt stabilizers in AC’s and Refrigerators introduced by some company are hampering market share so company should focus on such kind of technologies also. ⇨It was observed that maximum ed complain in Duromax is that of transformer in stabilizers are burning out very quickly, so company should reassess the technical aspect of the product. ⇨Company should increase warranty period of their product which is less than others in the market. ⇨Company could encash brand name by giving little bit more profit margins to retailers in comparisons to others. ⇨Company should create more awareness in customers as well as in retailers regarding duromax.
Page | 60
Page | 61
CONCLUSION
CONCLUSION 1. Whirlpool corporation is one of the leading company of consumer durable goods but when it comes to stabilizer it is not so. Quality and good service is something what required for its supremacy.
2. The market share of Duromax is also quite low than others.
3. After analyzing competitors it can be said that local brands is causing cut- throat competition for the organized sector. Page | 62
4. In the project it was observed that stabilizers having low cost and long replacement warranty are leading the market.
5.
After analyzing the market it can be said that post sales service plays a vital role in market penetration.
6.
Retailers are expecting more profit margin from Whirlpool.
Page | 63
BIBLIOGRAPHY
BIBILIOGRAPHY In the preparation of this project report, I have taken help from the under mentioned sources:
BOOKS & JOURNALS ⇨ KOTLER PHILIP , MARKETING MANAGEMENT , PEARSON EDUCATION, 13th EDITION ⇨ KOTHARI C.R., RESEARCH MRTHODOLOGY, NEW AGE INTERNATIONAL
Page | 64
PUBLISHERS, REVISED 2nd EDITION ⇨ CHERUNILAM FRANCHIS , BUSINESS ENVIRONMENT, HIMALAYA PUBLISHING HOUSE
WEB SITE ⇨ www.google.com ⇨www.whirlpoolindia.com ⇨www.wikipedia.com
APPENDIX Page | 65
Retail shop: Add.:
___________________________________________ ___________________________________________ ___________________________________________
Retailer’s Name : _________________________________________ no.
___________________________________________
QUESTIONNAIRE 1) Do you sale stabilizer from your shop?
Yes
No
Page | 66
2) How many brand of stabilizer are you aware of? 1.One
3.Three
2.Two
4.More than three
3) Name the stabilizer brand you are aware of. 1.__________________________________ 2.___________________________________ 3.___________________________________ 4.___________________________________ 5.___________________________________ 4) What is the important parameter for more sale of stabilizer?
5)
1. Price
3. Brand Name
2. Quality
4. Schemes
Which is the brand of stabilizer that mostly sold from your shop?
Ans : __________________________________
6) How much it has priced? Ans: ___________ 7) How is it’s post sales service? Excellent
Good
Average
Poor
8) Which company’s stabilizer gives you high profit margine? Ans. __________________________________ 9) Does there any new brand enter in stabilizer market?
Page | 67
Yes
No
If yes, then name that brand __________________________________ 10) Are you aware about whirlpool’s stabilizer (DUROMAX)? Yes
No
11) How do you feel whirlpool’s stabilizers are priced? 1. Expensive
3. Slightly overpriced
2. Affordable
4. Cheap
12) Do you feel that whirlpool stabilizers are convenient for the competency? Yes
No
13) What are your suggestions for whirlpool to increase the sales? _________________________________________________________________
Retailer’s signature
Page | 68
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