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Internship Report

On

“A Study on Consumer Behaviour with Reference to

Whirlpool Refrigerators” for Whirlpool of India Ltd

Submitted to

Acharya School of Management

Hesaraghhata Main Road

Bangalore – 560 090

Submitted by

Sanjay Kumar

Post Graduate Diploma in Management

Batch – (2011-2013)

(Roll No-ASM1103014)

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DECLERATION

I Sanjay Kumar, a student of Acharya School of Management PGDM (2011-

2013) Batch declare that every part of the project report “Consumer Behaviour

of Whirlpool of India Ltd” that I have submitted, is original.

I was in regular contact with the nominated guide and contacted several times

fir discussing the project.

Date of Project Submission - ……………………..

Faculty’s comments

(Prof. Ravi Kumar)

Mr. Sanjay Kumar

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ACKNOWLEDGEMENT

I would like to heartily thanks to Miss. Malini, Department manager of

Reliance digital store (J.P Nager 2nd

Phase Bangalore) that she allowed me

to pursue my internship in her retail store.

I also would like to express my heartiest gratitude to my project guide,

Mr.Rajveer Chauhan (Internship in-charge of Whirlpool of India Ltd) for

guiding me throughout the project. His constant guidance and support enabled

me to accomplish the project successfully.

My special thanks to extend to all the staffs of Reliance Digital for their

valuable guidance, regular encouragement and inspiration and valuable insight s

throughout the 45 days of internship.

Also I would like to thank my Dy. Director & Dean Prof. UK Ashoke Rao, he

gave me opportunity to do summer internship in Whirlpool of India Ltd.

Also I would like to thank my internship Guide Prof. Ravi Kumar for guiding

to undertake the project and finalizing the report.

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TABLE OF CONTENT

Serial

No.

Title Page No.

1 Declaration

2

2 Acknowledgement 3

3 Executive Summary 5

4 Objective & Hypothesis of the Study

7

5 Industry Profile 8

6 Company Profile 11

7 Mission & Vision 18

8 Whirlpool Leadership 28

9 Swot Analysis 31

10 Marketing Mix 34

11 Research Methodology 36

12 Types of Research Design 40

13 Results and Discussions/Findings

41

14 Major Learning 50

15 Findings & Conclusions 51

16 Suggestions 52

17 Questionnaire 53

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EXECUTIVE SUMMARY

In my summer internship, I have done my project in Whirlpool of India Pvt.

Ltd. As I was asked to promotion for newly lunched Whirlpool refrigerator

(Neo- Ichill) in one of the popular retail sector “Reliance Digital (J.P Nagar 2nd

Phase, Bangalore)” and the topic I have been provided to do research and make

report is “Consumer Behavior and competitive study of different brands Vs

Whirlpool in Refrigerator segment.

In India, consumer durable sector is rising with the increase income of public.

The durables section consists of refrigerator, washing machine, air conditioner,

Television, Microwave etc. The segment I had to research was on refrigerator.

In India, demand of home appliances increases day by day which in turn

increases the competition in refrigerator market as well. Refrigerator industry in

India examines the evolution of industry in India over the years. It examines the

structural changes in the industry after liberalization of the Indian economy.

Few companies like Kelvinator, Godrej, and Voltas were the major players in

the consumer durables market, accounting for no less than 90% of the market.

Then, after the liberalization, foreign players like LG, Samsung, Whirlpool,

Hitachi, and Panasonic came into the picture. In India, refrigerators have the 2nd

highest aspirational value of all the consumers’ durables with the exception of

television. This account for the high growth of the refrigerator market.

Refrigerators are presently being manufactured in 2 basic designs, which are

referred as direct cool (DC) and frost free refrigerators (FF). The direct cool

segment continues to dominant the Indian refrigerator market compared to more

expensive frost free models.

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This research mainly provides the marketing strategy of whirlpool refrigerators

and the comparison with its strong competitor in refrigerator segment, LG,

Samsung. The report begins with the market overview section that gives an

insight into the consumer durable industry, its market size and segments. This is

followed by the overview of the domestic refrigerator market in India, which

includes the market size and growth, as well as the market share of major

players, with a brief description of the penetration level of various consumer

durable products. Distinction between various types of refrigerators on the basis

of their mechanism and features is also included in this section.

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Objectives & Hypothesis of the study

Objectives

The main objective of the survey was to know Consumer Behavior and

competitive study of different brand in refrigerators segment.

To find out which was the earlier brand owned by the people.

To know the satisfaction level.

To know the reason for buying Whirlpool refrigerators.

To examine preference of consumer in selected brands (Whirlpool, LG,

and Videocon) of 200 Lts. Refrigerators on the basis of price, Brand

Name and Quality.

To study the influence of various factors on the purchase of Refrigerators

o Price.

o Quality.

o Brand Awareness.

To know about the marketing skills use while convincing the customers.

Hypothesis-

The after sales services provided by Whirlpool are far much better than

the competitors.

The quality of refrigerators of Whirlpool is better than its competitors.

Promotional activities of Whirlpool are less in number.

In shop displays of Whirlpool’s product is less as compared to its

competitor.

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INDUSTRY PROFILE

Indian Refrigerator Market:

A whooping increase of around 45-50% in the consumer durables market in

India has seen the upsurge of many companies entering into this sector. With

liberalization fever in the air for last 7-8 years and the penetration of

refrigerators nearly 10% of the organized sector activities, the refrigerator

market is expected to grow at 20% per annum by the year 2002. Also 20.7% of

all households will own a refrigerator in the next three years against to current

10%.

As of now, the entire durables industry in India is in a state of flues. The full

impact of liberalization on the market is yet to be felt. The Rs. 1200 crore

refrigerators market in particular has been very interesting. The No. 1 position

of Kelvinator has been lost out to Godrej in the recent times. Godrej in

collaboration with the global leader GE has launched frost-free refrigerator.

Samsung, Daewoo has already started building up a base in the market. Not for

hind are the economical Videocon & Stylish BPL, who too have starting

attracting the niche segments. Thus, with the foray of MNC’s & the existing

brands’ redesigning their marketing strategies, the competition in the industry

has ready heated up.

How the market will respond to the launch of a large no. of world- class brands

in quick succession & the dramatic increase in the level of marketing activities

that it would entail, is major question for which there are no reliable answers.

The changes in the offing, affect the entire range of durables at the same time &

therefore, the priorities across a basket of durables will come into play.

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Whirlpool’s presence in India can be traced back to the year 1989, when it

established a joint venture with the TVS group to enter the Indian market. In

1995 Whirlpool took another step forward and the merger with Kelvinator of

India heralded its entry in the refrigeration business. In 1996 Whirlpool of India,

(WOI), came into being with the merger of washer and refrigerator businesses.

The tremendous potential of the India market can be gauged from the fact that

in this country there is a growing middle class whose consumption and living

standards today are comparable to those of western economies in the 1960s.

This places India on the threshold of phenomenal economic growth.

Whirlpool is trying to capture the market for its recent product range that is for

the Air-conditioners and Microwave ovens. This will help a lot in making

customers brand loyal as well as eating a lion’s share in the market.

RETAIL INDUSTRY

Indian Retail Industry is ranked among the ten largest retail markets in the

world. The attitudinal shift of the Indian consumer and the emergence of

organized retail formats have transformed the face of Retailing in India. With

the sign of reemergence of economic growth in India, consumer buying in retail

sector is being projected as a key opportunity area. As a consequence, Indian

corporate houses are refocusing its strategic perspective in retail marketing with

the idea to use resources optimally in order to create core competence and gain

competitive advantage.

The paper theme is to analyze finer strategic perspective for the retail sector in

India and suggest measures so that the corporate strategists could incorporate

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The same both qualitatively and quantitatively. Based upon the qualitative

judgment, a retail unit may be given an overall understanding about the

expected performance that can further be corroborated by quantitative analysis.

Retail trade has emerged as one of the largest industry contributing to

employment generation, revenue generation, increased turn over and many

more. Organized retailing is showing signs of enormous creativity. It. has

emerged as one of the most dynamic and fast paced industries with several

players entering the market.

As a matter of fact retailing in India is gradually edge its way towards

becoming the next boom industry. This paper provides detailed information

about the growth of retailing industry in India. It examines the growing

awareness and brand consciousness among people across different socio-

economic classes in India and how the urban and semi-urban retail markets are

witnessing significant growth. The paper includes growth of retail sector in

India, strategies, strength and opportunities of retail stores, retail format in

India, recent trends, and opportunities and challenges.

This paper concludes with the likely impact of the entry of global players into

the Indian retailing industry. It also highlights the challenges faced by the

industry in near future.

Major players in home appliance segments: -

Whirlpool

Samsung

LG

Godrej

Hitachi

Panasonic

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Company profile

Whirlpool Corporation is a global manufacturer and marketer of major home

appliances. The company manufactures in 13 countries and markets products in

approximately 170 countries under 11 major brand names such as Whirlpool,

Maytag Kitchen Aid, Roper, Estate, Bauknecht, Laden and Ignis.

Whirlpool Corporation entered India in the late ‘80’s and today has grown to

become one of the leading manufacturers and marketers of major home

appliances in India. Whirlpool Corporation entered into a joint venture

agreement with TVS group to produce automatic washers at a plant set up in

Pondicherry. A modest beginning was made to establish the Whirlpool brand in

India. In 1995 Whirlpool Corporation acquired Kelvinator of India Limited and

entered into the Refrigerator market in India. In late 1995 majority ownership

was gained in the TVS joint venture and the two entities were merged to form

Whirlpool of India Limited in 1996.

Whirlpool has the distinction of having ISO certification for all its facilities in

India. The refrigerator facility is located at Faridabad and manufactures a

complete range of direct cool refrigerators. With the infusion of technology,

machinery and streamlining the processes the capacity of this plant was

increased from 700,000 to 1,000,000 annually.

Whirlpool’s commitment to the Indian operation has resulted in the sting up of a

state-of-the-art facility for the manufacture of no frost refrigerators at

Ranjangaon near Pune. This facility has set the standards as one of the world’s

front-runners in environmentally sensitive eco-friendly manufacturing units.

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Whirlpool of India Ltd is a leading manufacturer of home appliances. The

company is primarily engaged in manufacturing and trading of Refrigerators,

Washing Machines, Air Conditioners, Microwave Ovens and small appliances

and caters to both domestic and international markets. They also provide

services in the area of product development, information technology,

accounting and procurement services to Whirlpool Corporation, USA and other

group companies. 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. The company exports their

product to Russia and East European countries and exports small appliances to

the USA under the Kitchen Aid brand. Whirlpool of India Ltd was incorporated

in the year 1960 as Kelvinator of India Ltd. The company was formed in

collaboration with Kelvinator International Corporation, USA for the

manufacture of refrigerators compressors and allied products. In the year 1974,

they established a factory for the manufacture of electrical grade stampings in

collaboration with Thermal Refrigeration Ltd, UK. In the year 1975, the

company established a modern tool room for the manufacture of tools dies jigs

and fixtures. In the year 1976, they established a factory for the manufacture of

electromechanical cash registers in collaboration with Gross Cash Registers Ltd,

UK. Aravalli Svachalit Vahan Ltd, a sick unit at Alwar merged with the

company with effect from May 26, 1982. In the year 1985, the company entered

into a collaboration agreement with White Consolidated Industries Inc, USA for

the manufacture of washing machines. In the year 1986, they introduced a 300-

litre 2-door refrigerator for the lower and middle class consumers. In addition,

they introduced a single speed (VIP-1) and 3-speed kick-start (VIP-3) along

with two new models of cash registers. In the year 1993, the company entered

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into a tie-up with Whirlpool Corporation USA whereby Whirlpool contracted to

purchase from White Consolidated Industries Inc, USA. Also, Expo Machinery

Ltd, a wholly owned subsidiary merged with the company. In November 1995,

the Whirlpool brand was launched along with a new 310-litre refrigerator. In the

year 1996, Whirlpool Washing Machines Ltd merged with the Kelvinator India

Ltd and the company changed their name from Kelvinator of India Ltd to

Whirlpool of India Ltd. The Pondicherry washer unit introduced a re-styled

version of a fully Automatic Washing machine and a 3.5 Kg Twin-tub machine

under the Whirlpool brand. In the year 1997, the company signed a MoU with

Intrinsic Automation System Pvt. Ltd. for the hiving off their electronic cash

register division. They launched a venture consumer finance company in

association with Apple Industries. In the year 1998, the company launched

range of state of the art non-CFC frost-free refrigerators. In September 1998,

Whirlpool Financial India Pvt. Ltd. another group company of whirlpool

Corporation and a wholly owned subsidiary of Whirlpool Financial Mauritius

Ltd merged with the company. In the year 2000, the company expanded their

product range by launching Air conditioners and Microwave Ovens for the first

time. In the year 2001, they launched an indigenously developed Coffee

Grinder, Bag Dryer and Voltage Stabilizer. In the year 2002, they launched

Magic Cool series of Air conditioners, both Windows and Split type. During the

year 2003-04, the company won a major order for Manufacturing and Export of

Portable Home Appliances for the US market under the prestigious 'Kitchen

Aid' brand. The company converted a part of the Pondicherry facility into an

Export Oriented Unit to maximize the benefits and promote further exports. In

December 2003, they launched a new range of Fully Automatic Washing

Machines. In May 2004, the company launched new refrigerators in the 'ice

magic frost-free range'. They entered into a distribution tie up with Faber India

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during the year. In April 2005, the company launched 'Genius' a direct cool

refrigerator of 180 litters and premium range of window air-conditioners,

namely 'Magic Cool'. They also launched new Iceberg refrigerators during the

year. During the year 2005-06, the company opened four new call centers in B

class towns & non-metro cities to facilitate easy consumer access. In addition,

as a part of the process innovation initiative, 'Hotlines' were installed in key

trade partners? Locations to provide direct link to the call centers and service

partners. During the year 2006-07, the company launched two new refrigerators,

Whirlpool Delight in low capacity Frost Free and Fusion in high capacity Direct

Cool. In April 2006, the company launched a Washing Machine - Splash, which

is Fully Automatic Top Load. In September 2006, they launched Sparkle and

Verve in the Semi-Automatic Washing Machine segment and Sensation Classic

in Fully Automatic Front Load. In addition, they launched a Microwave (Jet

Chef) during the year. During the year 2007-08, the company introduced

Whirlpool Microwave Ovens with sixth sense technology. They also launched

Power Inverters during the year. In July 2007, the company introduced a stylish

and highly featured range of Built-In appliances, imported from Whirlpool

Europe. In January 2008, they introduced Whirlpool Purifies, a range of Water

Purifiers throughout the country. The company was also awarded the NDTV

Profit Business and Leadership Award 2008 for 'The Best Consumer Durables

Company' as an industry leader. In April-May 2008, the entire range in Direct

Cool was refreshed with the re-launch of Genius and Fusion brands. In October

2008, the Direct Cool range was augmented with the launch of Fusion 180-litre,

the first product in the entry level to have a frost control feature. In January

2009, they launched a completely new range of fully automatic top load and

front load washing machines, including the high capacity models, under White

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Magic and Professional brands. The semi-automatic ranges were also

augmented with a 'plastic cabinet' washing machines.

Now in 2012 this company launched one new Fridge that is called Neo iChill

(Neo Series of Whirlpool).

Thus, in short history of the company can be stated as below:

1908: The first Automatic washer was launched to public in late

1908, by 1900 Corporation, which in 1911 was renamed to Upton

Machine Company.

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.

1987: Whirlpool tied-up with Sundaram Clayton Ltd. of India to

form Whirlpool Ltd.

1993: First time Whirlpool became the No.1 stand-alone brand in

UK, Ireland, Netherlands and Belgium

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1995: Whirlpool Corp. acquired majority of stake in the TVS

Whirlpool Ltd. The DC manufacturing facility of Kelvinator India

was also acquired.

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.

2006: Whirlpool Corporation acquires Maytag and become the

World’s 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

2008: Whirlpool OF India” was awarded the NDTV Profit

Business & Leadership Award 2008 for “The Best Consumer

Durables Company

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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.

2009: Named one of the “100 Best Corporate Citizens” by Chief

Responsibility Officer (formerly Business Ethics) magazine in

2009 and from 2000-2007

2009: Hewitt ‘Best Employers in India’ 2009 Study.

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Mission -

Everyone, Passionately Creating Loyal Customers for Life. Whirlpool mission

defines the focus and what it does differently to create value. It’s a company of

people captivated with creating loyal customers. From every job, across every

contact, it builds unmatched customer loyalty…one customer at a time.

Vision -

(Every Home… Everywhere… with Pride, Passion and Performance)

This vision statement reinforces that every home is their domain; every

customer and customer activity is their opportunity. This vision fuels the

passion that they have for customers, pushing towards to provide innovative

solutions to uniquely meet their needs.

Pride... in work and each other

Passion... for creating unmatched customer loyalty for their brands

Performance... that excites and rewards global investors with superior returns.

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Whirlpool values:

The company’s values are constant and define the way that all Whirlpool

Corporation employees are expected to behave and conduct business

everywhere in the world.

Respect -: Trust one another as individuals and value the capabilities and

contributions of each person.

Integrity -: It conducts all aspects of business honourably – ever mindful of the

long-time Whirlpool Corporation belief that there is no right way to do a wrong

thing.

Diversity and Inclusion -: It maintains the broad diversity of Whirlpool people

and ideas. Diversity honours differences, while inclusion allows everyone to

contribute. Together, it creates value.

Teamwork -: It recognizes that pride results in working together to unleash

everyone’s potential, achieving exceptional results.

Spirit of Winning -: The Company promotes a Whirlpool culture that enables

individuals and teams to reach and take pride in extraordinary results and

further inspire the "Spirit of Winning" in everyone.

Innovation

Whirlpool Corporation firmly believes innovative thinking comes from

everyone, everywhere. Nearly 10 years ago, they launched a worldwide effort to

instill innovation as a core competency throughout the entire organization.

Since then, Whirlpool employees worldwide have participated in and

contributed to innovation-related activities resulting in new ideas, products and

services; thus delivering real value to consumers in ways never before seen in

either the company or the home appliance industry.

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Focused on embedding innovation as a core competency, Whirlpool

Corporation has made a long-standing investment to build this competency.

This investment includes redesigning business processes, training thousands of

employees, building an innovation management system and changing the

culture of the company.

Innovation attracts consumers to the wide portfolio of brands; Whirlpool

Corporation generated more than $2.5 billion of worldwide revenue from

product innovations—well exceeding projected targets for the year—and the

robust pipeline of $4.5 billion will allow for continued growth over time.

Promising entity of the company

Whirlpool Corporation is committed in building products that consumers

around the world can rely upon to meet their daily needs. This commitment to

quality begins in the concept stages and continues throughout the lifetime of the

appliance. The result of these efforts is a sustainable and competitive advantage

for the company.

Globally, Whirlpool Corporation manufactures products using principles of lean

manufacturing and operational excellence to ensure continuous improvement of

processes and to produce products that meet the company's high-quality

standards.

At Whirlpool, there is a constant focus on seeking out new and unique ways to

improve the function, performance and sustainability of their products.

The ring of promise circling the Whirlpool Corporation logo.

The ring around the whirlpool logo clearly shows how the company

encompasses with a promising nature in developing an individual customer

loyalty with its services.

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Building the Corporate Brand

The Whirlpool corporate brand has a history dating back to 1911. The company

has steadily expanded its product line, revenues, and global footprint for more

than five decades, evident by milestone returns – from $1 billion in 1968, to $2

billion by 1978, to $6 billion by 1989, to the $13 billion reported in 2004. The

corporate mission has also remained focused over time, demonstrated by

mantras such as “Unmatched customer loyalty – the core of our strategy” and

“Customer passion and lifelong relationships – the focus of our business.”

Product Range

The product range covers a wide variety of products from Refrigerators to Fabri

care; from Air Con to Water Purifiers and also Microwaves to UPS.

Following is the product range of Whirlpool Of India Limited.

Refrigerators

Washing Machines

Dyers

Microwave

Water Purifiers

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Product range refrigerators:

MODEL NAME FEATURES MODEL

CAPACITY

& MRP

MODEL LOOK

ICEMAGIC –

DIRECT COOL

. Makes ice

faster than

any other

fridge

. Multi-

purpose

chiller

. External

control for

easy

defrosting

.

Contemporary

international

look

190L Dlx:

Rs.10350

210L Dlx:

Rs.11425

190L Elite:

Rs.11025

215L Elite:

Rs.12050

260L Elite:

Rs.13500

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ICEMAGIC –

FROST FREE

. Makes ice

super quick

. Quick

cooling

system

. Digital

convenience

. Auto power

save

. Door open

alarm

. Quick serve

220L Dlx:

Rs.14100

220L Elite:

Rs.15225

250L Dlx:

Rs.15900

250L Elite:

Rs.16800

285L Elite:

Rs.18700

350L Elite:

Rs.27000

380L Elite:

Rs.32000

420L Elite:

Rs.35500

FLEXIGERATOR

– DIRECT COOL

. India’s

largest single

door fridge

. Spacious

interiors

. No CFC

310L

Flexigerator:

Rs.14275-

16850

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. Flexible

design to

adjust your

changing

needs

MASTERPIECE –

DIRECT COOL

. Stores 8

large bottles

in the door

. Special

utility bin

. Unique 7

year

protection

plan

170L

Masterpiece:

Rs.8225-

10700

CORONA ELITE-

DIRECT COOL

. Stores 8

large bottles

in the door

. Special

utility bin

. Unique 7

years

protection

plan

170L

Corona:

Rs.8900-

11250

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Neo I chill Spacious with

gel pack and

deep freeze

technology.

340l to 450l

Rs 27500 to

40000

Strategy Execution

The main strategy of the whirlpool is building strong brands, which has loyal

consumer base. Whirlpool is trying to build trustworthiness of the customer and

lead the customer life easier.

Whirlpool mainly does lot of work contributing in building unmatched levels of

loyalty to their brands through lifelong relationships with the customers.

Whirlpool is committed to create the brand value using various strategies such

as focusing on innovation, cost productivity, product quality and consumer

value. Whirlpool always had a continuous effort to improve its global operating

platform to ensure the position of the best-cost and best-quality appliance

manufacturer worldwide. The company is maintaining a strong supply chain to

better deliver products in trading customers and consumers. The benefits of

these actions today can be seen through a stronger network, increased

efficiencies and timely deliveries.

Now and then, even in the future the whirlpool focus is not simply on producing

products but more on the innovation and customer perception in creating them.

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Its major focus is always on maximizing the benefits of their worldwide

network of resources, which is unmatched in the industry. They are creating

better, more innovative products that improve consumers' lives—in and around

the home—each and every day. The company is always committed in being an

agile, global consumer products company that creates value through their

brands and innovations. With their compelling and growing brands, fuelled with

innovation, the company always attracts and retains loyal customers for life.

Segmentation

The Refrigerator industry for Whirlpool can be segmented on the basis of social

class and income group (demographic segmentation). Whirlpool has done the

market segmentation as given below.

Segment Category Sub-brand` Characteristic

Low income

rural class

Economy 170L

Masterpiece,

170L Corona

Looking for

low price

Middle income

bracket of semi

urban

Standard Ice magic

Direct cool

Value for

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consumer 190L & 210L money

Upper middle

income bracket

of urban

consumer

Premium Ice magic

Direct cool

(190L–

260L),

Icemagic-

Frost free

(220L-250L)

&

Flexigerator

High quality

Upper class

urban

sophisticated

Super premium 285L- 420L

ice magic-

frost free

Unique

attribute,

image.

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WHIRLPOOL LEADERSHIP

Jeff M. Fettig became Whirlpool Corporation's chairman and chief

executive officer, effective July 2004. He served as president and chief

operating officer and was first elected to the Whirlpool board of directors in

June 1999.

Fettig joined Whirlpool in 1981 as an operations associate. He held a

number of managerial positions in Operations, Sales, Planning and Product

Development before being promoted to vice president, Marketing, Kitchen Aid

Appliance Group in July 1989. In October 1990, he was named vice president,

marketing, for the Philips Whirlpool Appliance Group of Whirlpool Europe

B.V., the company's European subsidiary, and he was named vice president,

Group Marketing and Sales, North American Appliance Group, in October

1992. In 1994 he was named an executive vice president of Whirlpool and

president, Whirlpool Europe and Asia. Fettig also serves on the Board of

Directors of The Dow Chemical Company.

A native of Tipton, Indiana, USA. Fettig holds a bachelor's degree in finance

and a Master of Business Administration from Indiana University.

Mr.RajJain, the Managing Director of Whirlpool of India Limited joined

Whirlpool in 1996 and has held various senior management positions within the

company. Prior to his current elevation

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Mr. Raj was the Executive Director and was responsible for marketing,

sales, consumer services and logistics. He has also held the position of Vice

President? Sales and before which he headed the setting up of Whirlpools Frost

Business in India with an investment of over $80mn.

Prior to joining Whirlpool he had a stint of 16 yrs. with Unilever in India

and overseas in various assignments in Marketing, Sales and Project

Management. He also worked with Unilever in UK for a period of 3 years as a

part of marketing launch team on Pan European basis.

OTHERS MEMBER INCLUDES: -

Board of Directors

o Arvind Uppal (Chairman & Managing Director)

o Anil Berera

o Mr. Sanjiv Verma

o S.J. Scarff

o Anand Bhatia

o Mr. Vikas Singhal

Audit Committee

o Anand Bhatia, Chairman

o S.J. Scarff

o Anil Berera

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Directors Remuneration Committee

o Anand Bhatia, Chairman

o S.J. Scarff

o Sanjiv Verma

o Investors Grievance Committee

o Anand Bhatia, Chairman

o Arvind Uppal

o Mr. Anil Berera

o Share Transfer Committee

o Mr. Anil Berera

o Mr. Ravi Sabharwal

o Mr. Vinay Kumar

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SWOT ANALYSIS

STRENGHTS:-

Large experience executive team

Market leader

Large market share

Big brand name

Global operating platform

Best trade position WEAKNESS: -

After product service

Lack of strategy

Reducing market share

OPPOURTUNITIES: -

To arrange capital

Provide attractive schemes

Growing Asian market

Launching new products

Refrigerator category growing at a larger rate THREATS: -

Samsung, LG and other are the competitors

Reducing market share

Increase raw material cost

Distributors getting angry and leaving the network

RECOMMENDATIONS: -

Motivate distribution channels

Needs more aggressive and competitive promotions

Healthy environment between top executives

Launch sideways doors refrigerators

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SCOPE

In terms of Purchasing Power Parity (PPP), India is the 4th largest economy in

the world and is expected to overtake Japan in the near future to become the 3rd

largest. Indian consumer goods market is expected to reach $400 billion by

2010. India has the youngest population amongst.

The major countries. There are a lot of young people in India in different

income categories. Nearly two- thirds of its population is below the age of 35,

and nearly 50 % is below 25. There are 56million people in middle class, who

are earning US$ 4,400- US$ 21,800 a year. And there are 6million rich

households in India. The upper-middle and high-income households in urban

areas are expected to grow to 38.2 million in 2007 as against 14.6 million in

2000.Rural sector offers huge scope for consumer durables industry, as it

accounts for 70% of the Indian population. Rural areas have the penetration

level of only 2% and 0.5% for refrigerators and washing machines respectively.

The urban market and the rural market are growing at the annual rates of 7%-

10%and 25% respectively. The rural market is growing faster than the urban

market. The urban market has now largely become a product replacement

market. The bottom line is that Indian market is changing rapidly and is

showing unprecedented business opportunity.

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TARGETING

Whirlpool of India has intelligently targeted level, middle and upper class

income groups, as this is the group looking for better products and willing to

pay a little premium for international quality products.

Whirlpool believed that with rising income and increasing westernization, it

could upgrade the refrigerator market and consumers could be willing to pay a

few rupees more for a quality product. Whirlpool realized that 85% of the

Refrigerator market comprised and reliability played a major role in their

purchasing decision.

Positioning

In the refrigerator market, which is heavily cluttered both in terms of brand

varieties and corresponding messages, it is very difficult to differentiate and

position a product as mundane in the mind of consumers to show him to become

a loyal user.

Whirlpool of India positioned itself as a company of global structure, but one,

which listened carefully to its local customer. For instance, it showed an

engineer of foreign origin. Explaining how the compressor was modified to

stand up to high voltage fluctuations based on feedback from Indian

housewives.

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MARKETING MIX

Product

Product is anything that can be offered to a market for attention, acquisition,

and use of consumption that might satisfy a need of want. The product can be

look at five levels.

The core product is the essential service that the buyer is buying. In this case it

is the cooling effect.

The Generic product is a refrigerator the expected product is a set of attributer

that the buyer expected to get. In this case efficiency of cooling and chilling is

important.

Augmented product is that what is provided by the seller beyond the expected

product attributer lie those attributes that seek to distinguish the products from

other in its category, Whirlpool refrigerator is put across as a complete

refrigerator for Indian condition. It provides long life HTC compressor which is

specially designed to fight voltage fluctuations.

Potential Product refers a set of possible new features that might eventually be

added to the product being offered.

Refrigerators as a product does not offer much and cope beyond changes in

design and materials but whirlpool refrigerator provide lot of unique feature

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to make it potential product like. Adjustable door trims, fully flexible door

shelves, clean back or external condenser, Fold-back shelf etc.

Creation of Product The whirlpool range of refrigerator are designed and

manufactured with utmost care, to ensure to give trouble free performance for

years. The whirlpool provides more flexibility than any other refrigerator and

provides complete freedom to create space as per need.

Price

Whirlpool has followed a pricing strategy so as to appeal to the mass-market

buyers.

Whirlpool believed that with rising incomes and increasing westernization. It

could upgrade the refrigerator market and consumers will be willing to pay a

little more for a quality product.

Hence prices are kept 3% more than the nearest competitor, Godrej, refrigerator

i.e. the premium for a quality product.

Place

Whirlpool firmly believes in taking its values and philosophy into its supply

chain. The company’s commitment extends to encompass its extensive network

of distributors and dealers who are looked upon as partners in growth, and an

integral part of the whirlpool family

The products are transferred from factory to carrying and forwarding agents

(C& FAs). The C& FAs dispatch the goods to direct dealers or distributors who

further supply the retailer.

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Research Methodology

Research:-

Research in common refers to a search for knowledge.

Research can also be defined as a specific and systematic search for pertinent

information on a specific topic. In fact, research is an art of scientific

investigation. The advanced leaner’s Dictionary of current English lays down

the meaning of research as “a careful investigation or inquiry especially through

search for new facts in any branch of knowledge”. Marketing research is the

systematic design, collection, Analysis and reporting of data and findings

relevant to a specific marketing situation or problem”.

Research Methodology:-

Research Methodology may be understood as the science of study how research

is done significantly and scientifically.

The objective of this section is to describe the research procedure and methods

that have been adopted for the achievement if the project objectives. The

research methodology adopted for the study, which is intended to examine the

consumer Behaviour in selected brand (Whirlpool, LG, and Videocon) of 200

Lts Refrigerators on the basis of price, Brand Name, Quality & after sales

services in the Region of J.P Nagar 2nd

Phase (Bangalore).

Nature of Research – Quantitative & Qualitative

Data collection – Primary data & Secondary data

Sample size – 100 customers of Refrigerator at Reliance Digital, J.P

Nagar Bangalore

Sampling Area - Reliance Digital, J.P Nagar Bangalore.

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Data Collection:-

Data collection includes the type of data & the source of data that I used while

doing a project.

The data is collected from both Primary data and secondary data sources.

Primary Data:- Primary data is the data which is new. I use the primary source

to collect the primary data. Primary source include personal

meeting/Interviewing methods. As primary sources of data I have filled the

Questionnaires from different customers who were using different brands of

Refrigerators of 200 Lts (Whirlpool, LG, and Videocon).

Under my research following are the ways through which I derived the

primary data: -

Interview to the dealers.

Interview to the customers.

Telephonic interview.

Questionnaire:-

A Questionnaire is prepared to examine the Behaviour in selected brand

(Whirlpool, LG, and Videocon) of 200 Litters Refrigerators. The language of

Questionnaires should be so simple and Easy so that everyone can answer

easily. These questions have helped me to study the Behaviour of consumers.

Secondary Data:-

The data which is already in existence is known as secondary data. Secondary

sources include websites, Brochures of the respective companies, various papers

and magazines published from time to time.

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Under my research secondary data were as follows: -

Internet.

Monthly Magazines.

Whirlpool official website.

Whirlpool journals.

Customer Database provided by whirlpool.

Research design

A plan for collecting and utilizing data so that desired information can be

obtained with sufficient precision or so that a hypothesis can be tested properly.

This is research design. It could be also said as a framework or plan for a study

that guides the collection and analysis of the data.

Sampling Design:-

It includes size of sample & technique that I used for selecting the different

items from the sample. A sample design is a definite plan for obtaining a sample

from a given population. It refers to the technique that the researcher adopts in

selecting items for the sample. It should be ensured in the sampling process

itself that the sample selected is representative of the population.

Sample size:-

By sample size we mean that the number of people to be selected from the

population to make a sample. A sample size should be sufficient enough that

can serve our purpose. It should have Efficiency, Flexibility, and Reliability.

My sample size is of 100 people of JP NAGAR (Reliance Digital) those are

using the refrigerator.

Sample Unit:-

Sample unit is individual customer of JP Nagar (Bangalore) whose Preference

has to be examined.

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Sample technique: -

This is the type of technique that one uses to select the items for the sample.

The sampling method that I have used is JUDGEMENTAL SAMPLING.

Which is a type of NON PROBABILISTIC SAMPLING?

ANALYTICAL TOOL:-

The tool that I have applied on my research report is Multidimensional scaling

& Correlation analysis.

Correlation Analysis: -

Correlation analysis refers to the techniques used in measuring the relationship

between the variables.

According to Simpson and Kafka “correlation analysis deals with the

association between two or more variables”.

It helps in determining the degree of relationship between two or more variables

but it does not tell us anything about cause and effect relationship.

Types: - Correlation is classified in several different ways. Three of the most

important ways are

Positive or negative

Simple partial or multiple

Linear or non-linear

There are two types of variables

Static- Consumer preference

Dynamic- Brand Name, Price, Quality, after sales Services.

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TYPES OF RESEARCH DESIGN

Exploratory Research

Designed to generate basic knowledge, clarify relevant issues uncover

variables associated with a problem, uncover information needs, and/or define

alternatives for addressing research objectives.

A very flexible, open-ended process.

Descriptive Research

Designed to provide further insight into the research problem by describing the

variables of interest.

Can be used for profiling, defining, segmentation, estimating, predicting, and

examining associative relationships.

Casual Research

Designed to provide information on potential cause-and-effect relationships.

Most practical in marketing to talk about associations or impact of one variable

on another.

This research, which was of ‘Competitive Analysis of Companies, competing

whirlpool’, was totally of exploratory in nature.

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Results and Discussions/Findings

Q1. Which Brand of Refrigerator do you have?

No. of Respondents Whirlpool LG Videocon Others

100 46 38 7 9

Interpretation: From my survey, I have found that LG was having major

market share in items share in terms of Refrigerator as comparison to other

brands. There were 46% of the people those were having LG Refrigerators.

Whirlpool 46%

LG 38%

Videocon 7% Others

9%

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Q2. How did you come to know about your brand /model

of Refrigerator?

No. of Respondents Newspaper Magazines Through Friends Others

100 38 16 27 19

Interpretation: From my survey, I have found that Newspapers played a major

role in making aware to the customers about the refrigerator. The next major

role is played by the friends. However, only 16% 0f customers said that they

came to know about the product through magazines.

Newspaper 38%

Magazines 16%

Through Friends

27%

Others 19%

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Q3. Which factor influence you more in your Buying

Decision?

No. of Respondents Brand image price Quality After Sales

Service

100 25 40 24 11

Interpretation: In factors that were responsible for choosing a particular

product was found to be Price, Brand name & Quality. There were 40% of the

people those said that price has influenced them more while buying.

0

10

20

30

40

Brand image price Quality After SalesService

25

40

24

11

Series1

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Q4. Who influenced you more in your buying decision?

No. of Respondents Self Friends & Relatives Family

Members Others

100 15 26 38 21

Interpretation: From my survey, it is very much clear that there is a major role

of Family in the buying decision of the people. The next major role is played by

the Friends.

15%

26%

38%

21%

Self

Friends & Relatives

Family Members

Others

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Q5. Awareness about Refrigerator brand available in

market.

INTERPRETATION: from my survey, it is very much clear that there were

majority of the people those were not aware of the different refrigerator brands

available in the market. There were 40% of the people those were not aware.

Fully Aware 31%

Less Aware 28%

Unaware 41%

No. of Respondents Fully Aware Less Aware Unaware

100 31 28 41

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Q6. What did you perceive first while buying a

Refrigerator?

No. of Respondents Brand Image Price Quality After Sales Service Style & Looks

100 21 35 28 7 9

Interpretation: The factor that were responsible for choosing a particular brand

of refrigerator was found to be price, Brand Name & Quality. There were 36%

of the people those said that price has influenced them more while buying a

Refrigerator.

Series1

0

10

20

30

40

BrandImage

PriceQuality

AfterSales

Service

Style &Looks

Series1

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Q7. Are you satisfied with its overall performance?

No. of Respondents

Fully Satisfied Satisfied Undecided Less Satisfied Poor

100 12 43 26 13 6

INTERPRETATION: on asking that whether the customers were satisfied

with the overall performance of the refrigerator, only about 13% reported that

they were less satisfied whereas about 43% said they are satisfied with the

performance of the refrigerator.

0

5

10

15

20

25

30

35

40

45

FullySatisfied

Satisfied Undecided LessSatisfied

Poor

Series1

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Q8. According to you which company gives the most

beneficial schemes to the Customers?

No. of Respondents Whirlpool LG Videocon Others 100 31 38 14 17

INTERPRETATION: on asking that which company provides the most

beneficial schemes to the customer, only about 17% of the people were in the

favour of other companies. 38% of the people were in the favour of LG.

Whirlpool 31%

LG 38%

Videocon 14%

Others 17%

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Q9. If any of other brands of Refrigerator offers you any

attractive scheme, will you go for that brand?

No. of Respondents Yes NO

100 37 63

INTERPRETATION: it is clearly seen that if a company offers more

attractive schemes then only 37% will go for that brand & 63% of the people

will not go for that brand.

37%

63% Yes

NO

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Major learning

My Stint with the company has been a learning process; not only about different

brands and companies manufacturing refrigerators but also relationship between

locations based demographics, lifestyle and habits of consumers.

There are many companies engaged in manufacturing, production and sale of

refrigerators.

In view of my interaction with the customers and the dealers, I have come to

know about the marketing, sales and promotion strategies of Whirlpool and also

its competitors mainly Samsung and LG.

Observations are as follows: -

Whirlpool, Samsung and LG are the leading brands in refrigerators

whereas LG giving the neck-to-neck competition to Whirlpool.

I have come to learn various strategies both the leading refrigerators

follow to increase their sales.

I have also come to know about what skills require to sale the product in

the market and also the customer expectations from the product and brand

as well.

I have come to know about Consumer Behavior and competitive study

of different brand in Refrigerator segment of Whirlpool of India Ltd.

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FINDINGS AND CONCLUSION

Findings

The promotional activities done by Whirlpool are medium

The in shop displays of Whirlpool products are very good in number as

compared to its competitors.

As survey stated the Whirlpool customer never switches over to any other

company’s product.

Whirlpool is not lagging behind of its competitors in Indian consumer

durables market.

Whirlpool, being a no.1 company is liked by people.

Conclusion

After being a part of Whirlpool (India) Pvt. Ltd. For two months as

summer trainee, I came to following conclusions

Whirlpool being placed as 1st best consumer durable company globally as

well as in the Indian consumer durables market.

The biggest positive point of Whirlpool is their innovativeness in the

products and it is highly liked by Indian public.

Whirlpool products are liked by large numbers of customers who are

brand loyal.

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Suggestions

On the basis of the survey conducted by me, following suggestions

are to be considered:

The companies should work on promotional efforts to increase

the awareness of the consumers.

The Company should send their representatives to

contact personally to the customers to avoid any

communication problems.

The Company should give more Attention to all the segments.

The companies should come up with some attractive schemes to

attract more & more customers.

Proper advertisement should be given in order to remind

the customers about their schemes and other benefits.

People generally consider price While purchasing a refrigerator

to company should emphasize on competitive prices.

Promotional activities should be increased and should be more

efficient.

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Questionnaire

Consumer Behaviour in selected brands (Whirlpool, Videocon, and LG etc.) of

200 litters refrigerators on the basis of Price, Brand name, Quality & After sales

Services”.

Name: - _____________________ Gender: - ______

Place: - _____________________ Age: - ______

Occupation: - __________________ Income: - ______

1. Do you have Refrigerator?

o Yes --------

o No --------

2. Which brand of Refrigerator do you have?

o Whirlpool -------

o LG ---------------

o Videocon -------

o Others -----------

3. What is the price of your Refrigerator?

----------------------------------------------

4. How long do you own this Refrigerator?

o Less than six month -----------

o Six month ----------------------

o One year ----------------------

o Two year ---------------------

o More than 2 years ---------

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5. How did you come to know about your brand/Model of Refrigerator?

o Newspaper ------------

o Magazines ------------

o Through Friends ------

o Others -----------------

6. Which factor influence you’re more in your buying decision?

o Brand Image -----------

o Price ----------------------

o Quality -------------------

o After Sales Service ------

7. Who influenced you more in your buying decision?

o Self ----------------------------

o Friends/Relatives ------------

o Family Members -------------

o Others -------------------------

8. Awareness about Refrigerator brand available in the market—

o Fully aware ----------

o Less aware ----------

o Unaware ----------

9. What did you perceive first while buying a Refrigerator?

o Brand Image --------------

o Price ------------------------

o Quality ---------------------

o After sales service -------

o Style & Looks ------------

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10. Are you satisfied with its overall performance?

o Fully Satisfied ------------

o Satisfied -------------------

o Undecided ----------------

o Less Satisfied ------------

o Poor -----------------------

11. According to you which company gives the most beneficial schemes

to the customers?

o Whirlpool ---------------

o LG -----------------------

o Videocon ---------------

o Others -------------------

12. What are your views about brand image of following brands of

Refrigerator?

Very good Good Average Bad Worst

Whirlpool

LG

Videocon

Others

13. What are your views about Price of following brands of

Refrigerator?

Very good High Average Low Very Low

Whirlpool

LG

Videocon

Others

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14. What are your views about Quality of following brands of

Refrigerator?

Very good Good Average Bad Worst

Whirlpool

LG

Videocon

Others

15. If any of other brands of Refrigerator offers you any attractive

scheme, will you go for that brand?

o Yes --------

o No ---------

16. Suggestion/Problems, if any

--------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------

Customer’s Signature Researcher’s Signature

----------------------------- ----Sanjay Kumar--------

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References

1. http://www.whirlpoolindia.com/media.aspx? Id=25

2. http://www.whirlpool.com/Kitchen-1/Kitchen_Refrigeration-2/102110022/

3.http://www.4psbusinessandmarketing.com/26032009/storyd.asp?

Sid=2661&pageno=2

4.http://www.moneycontrol.com/news_html_files/news_attachment/2010/Whirl

pool.pdf

5. http://www.whirlpool.com/in/consumer/home-appliances/refrigerator

6. Whirlpool brochure

Thank You

Sanjay Kumar

Acharya School of Management

Bangalore

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