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Competitor Analysis of Whirlpool Corporation with Special Reference to the Stabilizer Market in Surat

In: Business and Management

Submitted By bhadresh
Words 12090
Pages 49
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 joining the corporate world. It is an opportunity to understand work culture.
On 15st March 2012 I started my project under the guidance of Mr. CHIRAG THAKKAR (Asst. Manager) SURAT. I have been allocated the area for survey in SURAT. The areas covered by me which are Varachha, Parvat patiya, Station area, Katargam, etc.

In 1st phase of this project I have visited service centre of Whirlpool at Adajan for collecting technical information of stabilizers that Whirlpool manufactures.

In 2nd phase of the research I have visited to dealers of stabilizers in Surat for doing survey about different brand of stabilizers.

In 3rd phase I have prepared a summary report of Surat electronic market on that basis it observed that stabilizer market is on peak in Surat 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 Surat.

In 5th phase of the research I analyzed the entire thing and on that basis I prepared a report.

Objectives :

Primary Objective:

“To study the competitive environment of stabilizer market”

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 Surat

Chapter-1: Introduction of Project

[1.1] Introduction to study

[1.2] Introduction of consumer durable industry [1.3] PEST Analysis of consumer durable industry
[1.4] Stabilizer market

[1.1] Introduction to study

“COMPETITOR ANALYSIS OF WHIRLPOOL CORPORATION WITH SPECIAL REFERENCE TO THE STABILIZER MARKET IN SURAT.”

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 analyzed 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 Surat 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.

This topic was important for Whirlpool hence it was selected. Through this topic we can analyzed 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.

[1.2] Introduction of consumer durable industry

History

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, 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, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture.

Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well-acknowledged brands, and hold over wide distribution network. However, the penetration level of the consumer durables is still low in India.

Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into Indian market dethroning the Indian players and dominating Indian market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and WASHING MACHINES.

India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean companies have been maintaining the lead in the market with LG being leader in almost all the categories.

The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth of the industry. The rising income levels double-income families and consumer awareness were the main growth drivers of the industries.

Industry Size, Growth, Trends
The consumer durables market in India was estimated to be around US$ 5 billion in 2007-08. More than 7 million units of consumer durable appliances have been sold in the year 2006-07 with colour televisions (CTV) forming the bulk of the sales with 30 per cent share of volumes. CTV, refrigerators and Air-conditioners together constitute more than 60 per cent of the sales in terms of the number of units sold.
In the refrigerators market, the frost-free category has grown by 8.3 per cent while direct cool segment has grown by 9 per cent. Companies like LG, Whirlpool and Samsung have registered double-digit growth in the direct cool refrigerator market.
In the case of washing machines, the semi-automatic category with a higher base and fully-automatic categories have grown by 4 per cent to 526,000 units and by 8 per cent to 229,000 units, respectively. In the air-conditioners segment, the sales of window ACs have grown by 32 per cent and that of split ACs by 97 per cent.
Since the penetration in the urban areas for these products is already quite high, the markets for both C-TV and refrigerators were shifting to the semi-urban and rural areas. The growth across product categories in different segments is assessed in the following sections.

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[1.3] PEST Analysis of consumer durable industry

Political Factors:

• Resolution to reduce emission of carbon. • Registration and licensing procedure • Trade and tariff barriers.
Economic Factors:

• Growth of retail sector – expected to reach 16% by 2011-12 from 4% in FY07. • Easy credit facility available. • 5% to 15% Anti-dumping duty on imported raw materials. • Reduction in excise duty coupled with rising incomes. • Economic reforms by the government –higher purchasing power. • Emergence of organized retail market with large players like Croma, next, reliance digital etc – leading to lower prices and higher varieties. • 61 % of total urban income comes from households — Earning between US$ 1,493 and US$ 9,955 a year.

• Indian incomes are likely to grow three-fold over the next two decades.
Social Factors:

• Disposable Income roughly doubled since 1985. • Changing perception of luxury to necessity. • Lake of awareness about new technology in rural area. • Demand of the consumer durables is seasonal and cyclic. • Customized products for rural India. • Decrease in average household size.
Technological Factors:

• Improved electricity consumption. • Higher quality products. • Technological advancements.

[1.4] Stabilizer market

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. SONIC

3. V-GUARD

4. SONEX

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-2: Introduction of company

[2.1] Introduction of company
[2.2] Company Profile
[2.3] SWOT Analysis
[2.4] Year-wise milestone for whirlpool
[2.5] Achievements
[2.6] Organization of company
[2.7] Balance sheet of the company

[2.1] Introduction of company

Whirlpool is a swirling body of water usually produced by ocean tides. The vast majority of whirlpools are not very powerful. More powerful ones are more properly termed maelstroms. Vortex is the proper term for any whirlpool that has a downdraft.

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 (Whirlpool Corporation) 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, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond achievable feat of any other in the industry.

Whirlpool Corporation (NYSE: WHR) is a Fortune 500 company and a global manufacturer and marketer of major home appliances, with annual sales of approximately $18 billion, more than 73,000 employees, and more than 70 manufacturing and technology research centers around the world. After acquiring the Maytag Corporation on March 31, 2006, Whirlpool Corporation became the largest home appliance maker in the world.

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 joint 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 joint 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 ‘06, the annual turnover of the company for its Indian enterprise was Rs.1,375 Crores. According to IMRB surveys Whirlpool enjoys the status of the single largest refrigerator and second largest washing machine brand in India.

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 best homemaker” dots its promotional campaigns.

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 setting 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.

The washer facility is located at Pondicherry and manufactures both fully automatic and semi automatic washers. Constant feedback is taken from the consumers resulting in products being continuously upgrade in features and in styling.

Products manufactured in the above facilities match Whirlpool’s global standards and are exported to over 70 countries across the globe. Whirlpool of India is today India’s largest exporter of home appliance and has been approved as an Export House.

Design Engineering is being developed as a core competency for Whirlpool of India. A step in the direction has resulted in the setting up of Regional Technology Centers at Pune focusing on refrigerators and at Pondicherry for washers. This will provide WOI with a competitive edge in speedy customization of products suited to consumer needs.

In the second phase of developing this core competency Whirlpool set up a Global Technology Centre at Pune in 2002 to provide design support for the global organization. A design and development centre for Whirlpool’s global small appliances brand Kitchenaid has also been set up at Pondicherry. The already strong manufacturing and technology infrastructure was augmented by the establishment of a Global Consumer Design centre for Asia in New Delhi in 2005

Whirlpool India’s products range from Refrigerators, Washing Machines, 100% Dryers, Air conditioners, Oil Filled Heaters, Microwave Ovens, Purafresh RO Range, to Home UPS Systems.

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.

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.

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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 a individual customer loyalty with its services .

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.”
The corporate brand has also been built on a long history of design innovation, a safe and diverse employee environment, customer-centered manufacturing, and a spirit of social responsibility. In fact, the depth of the company’s commitment to multiple social efforts is evident by a six-year inclusion of Whirlpool on the “100 Best Corporate Citizens” list published by Business Ethics Magazine. The company boasts an impressive set of accomplishments that foster these commitments: • The implementation of Operational Excellence, Whirlpool’s custom version of the Six Sigma program, improves quality while lowering costs and shortening cycle times. This program helped Whirlpool leverage its global manufacturing experience to save $175 million in manufacturing costs in its first three years of use. • Whirlpool’s commitment to innovation was recognized in 2002 with a National Design Award for Corporate Achievement from the Smithsonian Institution. • Whirlpool is a six-time winner of the ENERGY STAR Partner of the Year award from the U.S. Environmental Protection Agency (EPA) and Department of Energy, demonstrating the company’s commitment to environmental protection. • More than 3,500 Whirlpool employees are involved in a five-year, $25 million commitment to Habitat for Humanity International. The partnership has provided more than 65,000 appliances to Habitat homes built in North America. In addition,
Whirlpool has raised over a million dollars to support the fight against breast cancer through the “Cook for the Cure” program, sponsored by KitchenAid. Over 90 years of history gives Whirlpool an extremely valuable asset: a corporate brand that communicates innovation, consumer-driven research and development, and excellence in design and performance. Injecting these principles into internal and customer-facing business processes enables the company to invoke a consistent set of emotional responses from consumers including trust, uniqueness, and most important, loyalty.
Product Range

The product range covers a wide variety of products from Refrigerators to Fabricate; from AirCon 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 ➢ Accessories

Strategy execution:

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The main strategy of the whirlpool is building strong brands which has a 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 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. 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, fueled with innovation, the company always attracts and retain loyal customers for life.

[2.2] Company Profile

Founded 1911

Headquarters Benton Harbor, Michigan, USA

Key people Jeff M. Fettig, Chairman & CEO

Michael A. Todman, President, Whirlpool North America Paulo F.M.O. Periquito, President, Whirlpool International

Industry Major Home Appliances, Small Scale appliances

Products Clothes washers and dryers, refrigerators, freezers, dishwashers, ranges, compactors, room air conditioners, microwaves ovens, counter top appliances.

Revenue ▲$20 Billion USD (2010)

Net income ▲ $500 Million USD (2010)

Employees 70,000

Website www.whirlpoolcorp.com

Company Growth:

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Whirlpool’s Vision

Every Home… Everywhere… with Pride, Passion and Performance

Vision reinforces that every home is our domain, every customer and customer activity our opportunity. This vision fuels the passion that we have for our customers, pushing us to provide innovative solutions to uniquely meet their needs.

Pride... in our work and each other

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

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

We bring this vision to life through the power of our unique global enterprise and our outstanding people... working together... everywhere.

Whirlpool’s Values

Values are constant and define the way that all Whirlpool Corporation employees are expected to behave and conduct business everywhere in the world.

Respect — we must trust one another as individuals and value the capabilities and contributions of each person.

Teamwork — we must recognize that pride results in working together to unleash everyone’s potential, achieving exceptional results.

Spirit of Winning — we must promote a Whirlpool culture that enables individuals and teams to reach and take pride in extraordinary results and further inspire the “Spirit of Winning" in all ofus.

[2.3] SWOT Analysis

Strength 1. Good quality products than other companies. 2. Brand name of the company. 3. More than 25% market share in India. 4. After sales service of company. 5. Company’s own R&D Department.
Opportunity
1. In India the penetration level of white goods (refrigerators, Air conditioners, Washing machines, speakers and audio equipments) is lower as compared to other developing countries. 2. Unexploited rural market. 3. Rapid urbanization. 4. Increase in income level, i.e. increase in purchasing power of consumers. 5. Easy availability of finance.
Weakness
1. High prices of products. 2. Low margin to retailers. 3. Less development of rural area.
Threats
1. Higher import duties on row materials. 2. Cheap imports from Singapore, China and from other Asian countries. 3. Increasing competition.

[2.4] 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 motor-driven 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 .

• 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 joint venture with N.V.Philips of Netherlands called Whirlpool Europe B.V. was formed to manufacture and market appliances in Europe.

• 1990: Company established joint 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.

• 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 registered profit & sold 1.2 million appliances. It also achieved the No.1 position in DC & FA. |
|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. |
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|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. |
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|[2.5] ACHIEVEMENTS |
|[pic] 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. |
|[pic] 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. |
|[pic] 2009: Hewitt ‘Best Employers in India’ 2009 Study |
|[pic] 2009: Named one of the “100 Best Corporate Citizens” by Chief Responsibility Officer (formerly Business Ethics) magazine in |
|2009 and from 2000-2007 |
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|[pic][pic] 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. |
|[pic] 2008: Named one of the “2008 World’s Most Ethical Companies” by Ethisphere magazine |
|[pic] 2008: Whirlpool OF India” was awarded the NDTV Profit Business & Leadership Award 2008 for “The Best Consumer Durables Company. |
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|2008: The year 2008-09 saw Whirlpool India achieve great milestones in our attempt to be an “Employer Of Choice”. |
|[pic] 2008: The Business Today - Mercer -TNS Study – 2008. ‘Top 20 Best Companies to work for in India’ |
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|[2.6] Organization of company |
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|WHIRLPOOL CORPORATION |
|JEFF FETTIG |
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|LARRY VETURELLI |
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|DAVID SWIFT MICHAEL TODMAN |
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|ARVIND UPPAL |
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|SYED SHAHZAD SHANTANU DAS TAMAL KANTI |
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|[2.7] Balance Sheet as at March 31, 2010 |
|Schedule As at March 31,2010 As at March 31,2009 |
|([pic] in Lacks) ([pic]in Lacks) |
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|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 |
|Unsecured Loans C 15.27 |
|11,023.54 |
|Total 36,686.03 41,514.21 |
|APPLICATION OF FUNDS |
|Fixed Assets |
|Gross Block D 72,221.47 |
|69,948.49 |
|Less: Accumulated Depreciation/Amortisation 43,270.86 39,363.55 |
|Net Block 28,950.61 |
|30,584.94 |
|Capital Work in Progress |
|including Capital Advances 1,327.19 |
|201.87 |
|30,277.80 30,786.81 |
|Intangible Assets E 33.21 |
|59.22 |
|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 |
|(i) 82,359.00 53,420.61 |
|Less: Current Liabilities and Provisions |
|Current Liabilities K 65,888.27 |
|45,184.66 |
|Provisions L 11,243.28 |
|5,915.51 |
|(i i) 77,131.55 51,100.17 |
|N et Current Assets (i-ii) 5,227.45 |
|2,320.44 |
|Miscellaneous Expenditure M − |
|940.42 |
|(to the extent not written-off or adjusted) |
|Profi t and Loss Account − |
|82.05 |
|Total 36,686.03 41,514.21 |
|Notes to Accounts T |
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|Chapter-3: 4Ps of whirlpool |
|[3.1] Products |
|[3.2] Price |
|[3.3] Place |
|[3.4] Promotion |
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|[3.1] Products |
|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. |
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|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 |
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|Heater |
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|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 User Interface and a host of other |
|exciting features |
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|Washing Machine |
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|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 |
|[pic] [pic] |
|[pic] |
|UPS |
|[pic] |
|Microwave |
|[pic] [pic] [pic] |
|[pic] |
|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 |
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|[pic] |
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|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 |
|The energy efficient machines comply with the stringent European safety standard. |
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|Water Purifier |
|[pic] |
|Accessories |
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|[pic] [pic] |
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|[pic] [pic] |
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|[pic] [pic] |
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|[pic] [pic] |
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|[pic] [pic] |
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|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 Premium |
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|MODEL MODEL DESK WORKING AUTO-CUT& WTY VOLTAGE |
|RANGE TIME DELAY INDICATOR |
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|VX-1640WD Automatic Voltage Stab for AC 160-280 Y 1Y Digital |
|Display |
|Upto 1.5 ton |
|LX-1640WD Automatic Voltage Stab for AC 160-280 N 1Y Digital |
|Display |
|Upto 1.5 ton |
|VX-1340WD Automatic Voltage Stab for AC 135-290 Y 1Y Digital |
|Display |
|Upto 1.5 ton |
|DX-1140D Automatic Voltage Stab for AC 110-280 Y 1Y Digital|
|Display |
|Upto 1.5 ton |
|DX-1150D Automatic Voltage Stab for AC 160-280 Y 1Y Digital |
|Display |
|Upto 2.0 ton |
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|AC Stabilizers Deluxe |
|MODEL MODEL DESK WORKING AUTO-CUT& WTY VOLTAGE |
|RANGE TIME DELAY INDICATOR |
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|LX-1640 Automatic Voltage Stab for AC 160-280 N 1Y |
|LED |
|Upto 1.5 ton |
|LX-1640V Automatic Voltage Stab for AC 160-280 N 1Y |
|Voltmeter |
|Upto 1.5 ton |
|VX-1640 Automatic Voltage Stab for AC 160-280 Y 1Y |
|Voltmeter |
|Upto 1.5 ton |
|LX-1630 Automatic Voltage Stab for AC 160-280 N 1Y |
|LED |
|Upto 1.0 ton |
|LX-1650 Automatic Voltage Stab for AC 160-280 N 1Y |
|LED |
|Upto 2.0 ton |
|LX-1440V Automatic Voltage Stab for AC 140-280 N 1Y |
|Voltmeter |
|Upto 1.5 ton |
|VX-1440 Automatic Voltage Stab for AC 140-280 Y 1Y |
|Voltmeter |
|Upto 1.5 ton |
|LX-1430V Automatic Voltage Stab for AC 140-280 N 1Y |
|Voltmeter |
|Upto 1.0 ton |
|LX-1450V Automatic Voltage Stab for AC 140-280 N 1Y |
|Voltmeter |
|Upto 2.0 ton |
|VX-1340 Automatic Voltage Stab for AC 130-280 Y 1Y |
|Voltmeter |
|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 |
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|MODEL MODEL DESC INPUT OUTPUT AUTO-CUT VOLTAGE |
|VOLTAGE VOLTAGE TIME DISPLAY INDICATOR |
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|LX0705V Automatic Voltage Stabilizer 75-290 160-260 N |
|Voltmeter |
|for Refs upto 450L Symphony |
|VX-1304D Digital Automatic Voltage Stabili- 130-280 190-250 Y |
|Digital |
|zer for Refs upto 310L Direct Cool |
|VX-1305D Digital Automatic Voltage Stabili- 130-280 190-250 Y |
|Digital |
|zer for Refs upto 450L Symphony |
|VX-1105D Digital Automatic Voltage Stabili- 110-280 180-250 Y |
|Digital |
|zer for Refs upto 450L Symphony |
|LX-1104 Automatic Voltage Stabilizer for 110-280 160-260 N |
|LED |
|Refs upto 310L Direct Cool |
|LX-1304 Automatic Voltage Stabilizer for 130-260 160-260 N |
|LED |
|Refs upto 310L Direct Cool |
|LX-1404 Automatic Voltage Stabilizer for 140-260 160-260 N |
|LED |
|Refs upto 450L Symphony |
|LX1404V Automatic Voltage Stabilizer for 140-260 160-260 N |
|Voltmeter |
|Refs upto 450L Symphony |
|DX-1404 Automatic Voltage Stabilizer for 145-260 160-260 Y |
|LED |
|Refs upto 450L Symphony |
|AX-1605 Automatic Voltage Protector for 160-260 160-260 Y |
|LED |
|Refs upto 450L Symphony |
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|SCOOP SERIES- POWER ACCESSORIES |
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|MODEL MODEL DESC INPUT OUTPUT AUTO-CUT VOLTAGE |
|VOLTAGE VOLTAGE TIME DISPLAY INDICATOR |
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|DX-1504 Automatic Voltage Stabilizer for 150-275 175-255 Y |
|LED |
|Refs upto 310L Direct Cool |
|DX-1505 Automatic Voltage Stabilizer for 150-276 175-256 Y |
|LED |
|Refs upto 450L Symphony |
|DX-1305 Automatic Voltage Stabilizer for 130-270 136-255 Y |
|LED |
|Refs upto 450L Symphony |
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|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.|
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|[3.2] Price |
|Importance of Pricing: |
|– knowing the market |
|– Elasticity |
|– keeping an eye on rivals |
|If we look upon the pricing strategies adopted by the consumer durable brands we can see that there is not much difference. Every |
|company is trying to give variable product option in variable prices to focus on different pool of customer incomes, and requirements |
|with the same brand. |
|The refrigerator of a company like LG which is a market leader is starting from 7500 in 175 liter capacity in direct cool refrigerator |
|category. They are so much of variable option in same segment to attract different type of customers one of the reasons is that LG |
|business is now is on such heights now due to mass production there landing manufacturing cost is coming comparatively much lesser than|
|their competitors. |
|There 6.2 kg washing machine is starting at RS 5990 much more lesser with respect to their competitors with same kind of features. |
|LG pricing strategy is totally matches with its corporate strategy. First they have created a kind of brand image where they don’t have|
|to depend upon their dealer and distributors, their products are getting sold itself in the market. They keep on capitalizing in their |
|strategy to push the product before a customer gets enters in the store in order to pull demand from the market. |
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|Samsung is also adopting same kind of pricing strategy but they are different from LG in respect to their price positioning they have |
|got the clue that modern day demand is pulled by the young aspiring middle class, they want lifestyle in their life and prefer life |
|style product and services, Samsung understood that fact and started to position as a lifestyle product brand and their price |
|positioning is accurately based upon it. With this they are so much of variable option in same segment to attract different type of |
|customers. |
|Samsung starting entry level refrigerator starts from 8200 with a clear differentiation with their competitors in this segment. |
|Godrej with a launch of new product line also want to create and to give a fresh look in to their brand with vibrant colors and design |
|and in order to come up from old Indian brand image. Godrej pricing is very much competitive in one way they are giving economical |
|models and they are also focusing on high end models with their new launch. Godrej is giving extra profit margin of 1.3% other then |
|what they are giving currently, with a wider focus on brand visibility and promotion. |
|Pricing Strategy of whirlpool : |
|Whirlpool has implemented a customer-centric strategy that focuses on making sure our products are appropriate for the Indian consumer.|
|Different versions of the product are priced differently, but not according to differences in their costs. |
|Whirlpool’s bigger success has been in the fully automatic segment (Rs. 12,000- 36,000). This is smaller with sales of 177,600 units in|
|2000 compared to 1.2 million units sold by Videocon (in the 7,000- 12,000 price range) |
|Whirlpool is having wider option both in refrigerator and washing machine they are also having highest no of refrigerators models. They|
|are also focusing majorly on to give lifestyle feeling and their pricing is based upon it. |
|Whirlpool adopted quantity based pricing policy. They give higher discount on higher quantity. Recently one scheme is launched by |
|whirlpool for their retailers, in the month of March and April some discount given to the retailers according to quantity made by him. |
|For instance, on 7 pieces Rs.500 as discount, on 20 pieces Rs. 2200, on 30 pieces 4000 and on 50 pieces Rs.10101. |
|Price of various models of Duromax : |
|The price range of Duromax is from 2400 rs. To 6900 rs. |
|AC Premium stabilizers are available in range of 5500 rs. To 6900 rs. |
|AC Deluxe stabilizers are available from 3000 rs. To 5000 rs. |
|Refrigerator stabilizers are available from 2400 rs To 5000 rs. |
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|[3.3] Place |
|Whirlpool has manufacturing facilities at three locations in India to manufacture refrigerators and washing machines. Whirlpool has set|
|up a Regional Technology Centre (RTC) at Ranjangaon, Pune, India, which mainly focuses on India as a major manufacturing centre for the|
|Asia- Pacific Region. Whirlpool’s Pune research lab develops refrigerators and air-conditioners for Asia (including China), and |
|Australia. 40 per cent of Whirlpool’s Pune research lab’s resources are devoted to its core research on global projects Whirlpool also |
|has set up design centers at Pondicherry to meet the global business needs of the fabric care and small appliance divisions. Whirlpool |
|is exporting refrigerators and washing machines to South Asia, Asia-Pacific, Latin America and West Asia and is the largest exporter of|
|home appliances from India. The manufacturing unit at |
|Pondicherry exports small kitchen appliances under the ‘Kitchen Aid’ brand to the US market. Products under the brand include coffee |
|making machines, coffee grinders and portable ovens. |
|Distribution channel of whirlpool: |
|[pic] |
|[3.4] Promotion |
|Whirlpool’s advertising tagline is ‘Your magic in Homemaking.’ This is Whirlpool’s advertising tagline. Whirlpool’s earlier tagline was|
|“You & Whirlpool. The world’s best homemakers.” It has been evolved to reflect the changed homemaker of today vs the yesteryears. |
|Through Whirlpool’s intensive consumer research Whirlpool found that today’s homemaker believes in having everything perfect at home |
|and takes pride in having achieved it! She has begun to look for that something exceptional, something additional in all the brands she|
|chooses to help her achieve that. Whirlpool, as the brand that partners to this demanding homemaker of today, call this quality of hers|
|as ‘magic’ and wish to be the home appliance brand that helps her create her “magic in homemaking”. Hence the new tagline “Yours magic |
|in the homemaking”. |
|Recently Whirlpool India has appointed Contract Advertising to handle their business categories that are being identified for the next |
|phase of the company's growth strategy. Whirlpool would be spending Rs 70 crore on advertising and promotion, and around 40-45 per cent|
|of this will be taken up by above the line advertising. |
|Originally, Draft-FCB-Ulka was looking after the creative for the four categories in which Whirlpool is currently present: washing |
|machines, refrigerators, air conditioners and microwaves. |
|FCB-Ulka has done path breaking work to build the Whirlpool brand over the last decade. Positioning brand Whirlpool as a partner in |
|homemaking and creating the concept of a homemaker as against a housewife, marked a shift in the depiction of women in Indian |
|advertising. |
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|Ajay & Kajol are the brand ambassadors of Whirlpool. The association came about two years back. According to Whirlpool, they choose |
|Ajay and Kajol as brand ambassadors because Kajol represents what today’s woman aspires to be – balance work and home beautifully. Her |
|relationship with Ajay represents an ideal modern-day couple’s aspired relationship- one of equality, love and romance. Thus, they |
|embody the brand values Whirlpool has stood for. They are an integral part of Whirlpool’s strategy to take the brand positioning |
|forward. |
|On association with Whirlpool: |
|[pic] |
|"Whirlpool believes in providing world-class quality to its consumers. Whirlpool is a '‘Perfect partner to the demanding homemaker' of |
|today. Whirlpool's products are stylish, modern and contemporary with elegant looks and reflect the sense of pride homemakers take in |
|choosing them for their homes." |
|On association with Whirlpool: |
|[pic] |
|"Whirlpool brand has successfully emulated the dreams, aspirations and expectations of Indian home maker through the years. It |
|symbolizes a relationship based on equality, love and romance, which is why I agreed to represent the brand," declares Ajay Devgan. “We|
|are very pleased to be associated with Whirlpool – the leaders in home appliances”, he adds. |
|Let’s take examples of whirlpool’s advertise… |
|[pic] |
|Headline: What women want |
|Subhead: Someone with a spotless reputation |
|Body copy: The new Sensation from Whirlpool with Stain Wash, a unique program that cleans even the most stubborn stains, be it curry or|
|pickle, that other machines cannot. |
|Baseline: You and Whirlpool. The world's best homemakers. |
|[pic] |
|Headline: Barsaat main jhoom ja Stain ko bhool ja |
|Subhead: Starring Stain wash Daag dhoye aise ke phir bheeg jaane ka mann kare |
|Body copy: Whirlpool Stain wash washing machines ensure that stains disappear with the press of a single button. This range is equipped|
|with a special Stain wash function which comes hot wash and a unique 1-2, 1-2 hand wash action that removes 6 stubborn stains, like |
|shoe polish, red sand etc |
|Baseline: Whirlpool. You’re magic in homemaking |
|Chapter-4: |
|Marketing strategy |
|of |
|whirlpool |
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|[4.1] Whirlpool marketing strategy |
|[4.2] Segmentation strategy of Whirlpool India LTD. |
|[4.3] Target customer for whirlpool |
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|[4.1] Whirlpool marketing strategy: |
|Focus on availability of products in market. |
|Focus on availability of product in the outlet. |
|Whirlpool products visible for consumers. |
|Regular market visit by market developer. |
|Distribution of product according to locality. |
|Extra focus on monopoly outlets. |
|Aggressive advertisement. |
|To be a brand. |
|Provide good quality of product to the consumers. |
|Scratch card schemes are launched to attract more customers. |
|More schemes are given on the festivals. |
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|[4.2]Segmentation strategy of Whirlpool India LTD. |
|Whirlpool has understood Indian market very closely and has been launching products as per the requirement of the customer from |
|different segments. Whirlpool segmented the market mainly on the basis of price and capacity. |
|Price has been kept keeping the needs and wants of the customer and product is designed such that it is feasible to every customer. |
|Whirlpool has segmented its refrigerators under three segments. They are: |
|Direct Cool, |
|Frost Control |
|Frost Free |
|Direct Cool: It is the basic segment. The most basic product under this segment covers almost all the features of this segment except |
|for modular shelves, all metal door and single metallic sheet body. |
|The capacity of the refrigerators in this segment ranges from 180 Lts to 230 Lts. Refrigerators from this segment can serve a small |
|family, small shops and can be used in |
|Offices where not much stuff is required to be stored. |
|The price range of this segment starts from Rs. 9500/- to Rs.13700/- |
|The base product of this segment is Masterpiece 19(180 Lts) with Unique Health Guard, Jumbo Bottle Rack and Thick Door Design. The |
|highest product from this segment is Genius XL Premier(230 Lts) with Unique health Guard, Jumbo Bottle Rack, Thick Door Design, Chill |
|Max and Modular Shelves features. |
|Frost Control: This segment is known as the Premier Segment. It has more features and more added values as compared to the basic |
|segment – Direct Cool. The refrigerators of this segment are more technically advanced and are aimed to reduce the frost formation in |
|the refrigerator. |
|The capacity of the refrigerators in this segment ranges from 180 Lts to 310 Lts. There are 12 models in this segment and each has |
|different features and targeted to specific Market segment. |
|The price range of the refrigerators in this segment starts from Rs. 11550/- to Rs. 17745/- The base product of this segment is fusion |
|19 Supreme which has all the features of Direct Cool plus has 6th sense Frost Control Technology which is the plus point of this |
|segment. |
|Frost Free: This segment is known as the Elite Segment. This is the most profitable segment from Whirlpool, which is evident from the |
|number of models that has been introduced in this segment. There are 21 models in this segment. The price and capacity has also been |
|increased for this segment. |
|The capacity of the refrigerators in this segment ranges from 220 Lts to 450 Lts. Whirlpool has not introduced any refrigerator having |
|capacity of 180 Lts in this segment. Whirlpool has clearly created these Elite models for the higher segment. The refrigerators with |
|capacity of 450 Lts are an added advantage as it would capture the business from supermarkets, malls and such places. |
|The price range of the refrigerators in this segment starts from Rs. 13755/- to Rs 36200/-. Whirlpool introduced the technology to make|
|the refrigerators frost free, 6th Sense Tower Cooling Technology. Also Whirlpool introduced 30 Ltr Crisper in its high end products. |
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|[4.3] Target customer for whirlpool |
|Indian refrigerator market is valued at Rs 4000 crore. Refrigerators hold only 16% of consumer durable market that is valued at around |
|Rs. 20,000-25,000 crore in India. Its market is growing at the rate of 7-8% annually. |
|Whirlpool's market target for “Direct Cool” segment is the consumers with requirements of not very big capacities, i.e. Households, |
|Small Shopkeepers and Bachelors etc. |
|Whirlpool’s market target for “Frost Control” segment is the middle class consumers who has average amount of income to dispose. |
|The target for “Frost Free” segment is the upper class or high class consumers, which includes people with high income and also |
|industries which requires storage capacity of more than 310 Lts. |
|This is in terms of capacity and usage nature of the consumers. In terms of income capacity, Whirlpool is focusing on Lower Middle |
|class, Middle class and Higher Class segment of the society. |
|Also Whirlpool through its advertisements has been trying to target the housewives, trying to portray as a partner in homemaking. |
|Hence, the prime target consumers for Whirlpool are Housewives. |
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|Chapter-5: Research methodology |
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|[5.1] Project profile |
|[5.2] Methodology |
|[5.3] Objective of the study |
|[5.4] Theoretical aspect of study |
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|[5.1] 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 Surat 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 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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|[5.2] 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 |
|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 Surat 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 |
|contact methods, not telephone survey because of higher response rate meaningful responses. This helped me to get the general feedback |
|in whirlpool etc. |
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|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 open- ended questionnaire where respondents could answer in their manner. Through this I was able to extract information from|
|the respondents about whirlpool and other brand competing each other. |
|5. Sampling Plan: |
|In designing a sampling plan following points where considered: |
|Sampling unit |
|It includes who is to be surveyed in research. I have surveyed retailers of Surat 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|
|Surat region like Varachha, Parvat patiya, Station area, Katargam, 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. |
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|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 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. |
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|[5.3] Objective of the study |
|Primary Objective: |
|“To study the competitive environment of stabilizer market” |
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|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 Surat. |
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|[5.4] Theoretical aspect of study |
|Scope of market research in view of modern global business. |
|Research methods provide you with the knowledge and skills you need to solve the problems and meet the challenges of a fast-paced |
|decision-making environment. Business research courses are a recognition that students in business, not-for-profit, and public |
|organizations – in all functional areas – need training in the scientific method and its application to decision making. Two factors |
|stimulate an interest in more scientific decision making: (1) the manager’s increased need for more and better information and (2) the |
|availability of improved techniques and tools to meet this need. |
|During the last two decades, we have witnessed dramatic changes in the business environment. Emerging from a historically economic |
|role, the business organization has evolved in response to the social and political mandates of national public policy, explosive |
|technology growth, and continuing innovations in global communications. These changes have created new knowledge needs for the manager.|
|Other knowledge demands have arisen from problems with mergers, trade policies, protected markets, technology transfers, and |
|macroeconomic savings – investment issues. |
|The trend toward complexity has increased the risks associated with business decisions, making it more important to have a sound |
|information base. Increased complexity means there are more variables to consider. The competition is more vigorous, with many business|
|downsizing to make competitive gains. Workers, shareholders, customers, and the public are better informed and more sensitive to their |
|self-interest. Government continues to show concern with all aspects of society. Each of these factors demands that managers have more |
|and better information upon which to base decisions. |
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|To do well in such an environment, you will need to be equipped with an understanding of scientific methods and a means of |
|incorporating them into decision making. You will need to know how to identify good research and how to conduct it. This book addresses|
|these needs. |
|As the complexity of the business environment has increased, there has been a commensurate, increase in the number and power of the |
|tools to conduct research. There is vastly more knowledge in all fields of management. We have begun to build better theories. The |
|computer has given us a quantum leap in the ability to deal with problems. New techniques of quantitative analysis take advantage of |
|this power. Communication and measurement techniques have also been enhanced. These trends reinforce each other and are having a |
|massive impact on business management. |
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|Sources of collection of primary and secondary data for market research. |
|This sources may be classified as either internal (organizational) or external sources of information. |
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|Internal Sources |
|Internal sources of organizational data are so varied that it is difficult to provide generalizations about their use. Accounting and |
|management information systems create and store much of the internal data. Research and development, planning, and marketing functions |
|also contribute. Examples are departmental reports, production summaries, financial and accounting reports, and marketing and sales |
|studies. The collection methods used are unique to the specific situation, and collection success depends on knowing just where and how|
|to look. Sometimes the information may exist in central files (i.e., at headquarters), in computer database, or in departmental |
|chronological files. |
|In other organizations, a central library keeps all relevant information. Systematic searches should be made through exploratory |
|interviews with everyone who handles the information. Often company librarians, MIS. PR/communications or departmental secretaries can |
|help in pinpointing critical data sources. Internal data sources may be the only source of information for many studies. |
|External Sources |
|External sources are created outside the organization and are more varied than internal sources. There are also better defined methods |
|for finding them. This discussion is restricted to published sources, although other sources of information may be useful. |
|Published sources of data can be classified into five categories. The newest and fastest growing one is computerized database. They are|
|composed of interrelated data files. The files are sets of records grouped together for storage on some medium. Access may be through |
|online search or CD-ROM. Online databases are often specialized and focus on information about a particular field. |
| |
|Major source of published information consists of diverse materials from special collections. Within this category there are many |
|reference books, each a compendium of a range of information. A second group includes university publications, of which there are |
|master’s theses, doctoral dissertations, and research records. A third group includes company publications such as financial reports, |
|company policy statements, speeches by prominent executives, sales literature, product specifications, and many others. There are |
|miscellaneous information sources consisting of the productions of various trade, professional and other associations. These |
|organizations often publish statistical compilation, research report, and proceeding of meeting. |
| |
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|Chepter-6: Observation and findings |
| |
|[6.1] Findings as per study of questionnaire |
|[6.2] Hypothesis testing |
| |
| |
| |
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| |
| |
| |
| |
| |
| |
|[6.1] Findings as per study of questionnaire |
|Type of business |
|PARTICULARS |
|NO. OF RESPONDENTS |
|PERCENTAGE |
| |
|Retailer |
|41 |
|82 % |
| |
|Distributor |
|1 |
|2 % |
| |
|Both |
|8 |
|16 % |
| |
| |
|[pic] |
| |
|INTERPRETATION |
|According to survey, 41 respondents are only retailers, only 1 respondent is distributor and 8 respondents are both retailer and |
|distributors. |
| |
|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 |
|[pic] |
|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 |
| |
|[pic] |
| |
|INTERPRETATION |
|16% retailers are aware of Mark stabilizers 15% are aware of SONIC 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 – 6 |
|Quality – 32 |
|Brand Name – 9 |
|Scheme – 3 |
|[pic] |
|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 |
| |
|[pic] |
| |
|INTERPRETATION |
|34% Others, 25% Mark, 15% Sonex, 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 registers maximum number of sale of stabilizers in |
|Surat. |
| |
| |
|When it is asked from the retailers about the profit margin they gets maximum from the company they replied: |
| |
|[pic] |
| |
|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. |
| |
| |
| |
| |
| |
|Retailers’ view about post sales service. |
|Excellent- 8 |
|Good- 20 |
|Average- 16 |
|Poor- 6 |
|[pic] |
|INTERPRETATION |
|When retailers are asked about the post sales service of companies, 16% says it is excelent, 40% says it is good, and 32% and 12% are |
|saiying it is average and poor respectively. |
| |
| |
| |
|When it is asked from the retailers whether there is any new brand enter into the market they replied: |
|Yes-19 |
|No- 31 |
|[pic] |
| |
|INTERPRETATION |
|In reference to this question we can find that 38% of retailers are says that they know that the bands which are new comer into the |
|market. We also asked the name of the brands that are, Elite, charan, stambh, Energy, ect. |
|Other 62% respondents were not knowing about such brands. |
| |
| |
| |
| |
|The awareness of Duromax is being surveyed by me and is shown in the chart drawn below |
| |
|Yes – 35 |
|No – 15 |
|[pic] |
| |
|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 – 33 |
|Affordable – 14 |
|Slightly Overpriced – 2 |
|Cheaper – 1 |
|[pic] |
|INTERPRETATION |
|Whirlpools’ stabilizers are expensive for customer in terms of price says maximum retailers . As 66% says it is |
|expensive in comparison to 30% says it is affordable, 4% says it is slightly overpriced and 2% says it is cheaper. |
| |
| |
| |
|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 |
| |
|[pic] |
|INTERPRETATION |
|Whirlpools’ stabilizers are not convenient to compete in market it says 80% of retailers in comparison to 20% says |
|it is convenient. |
|Suggestions given by retailer for increase the sale of its stabilizers. |
|To maintain good quality of product to satisfy the customers. |
|Provide some schemes so that customers can be attracted to by the product. |
|Prices are slightly higher than the local brands so maintain the price so than compete with local brands. |
|Some advertisement campaigns can be done to promote the product. |
|Provide some schemes. |
| |
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|[6.2] Hypothesis testing |
|50 respondents were being selected randomly from the areas visited and following interpretations were being drawn: |
|Affordable Not Affordable |
|Whirlpool – 33 17 |
|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 |
|Affordable |
|Cant Affordable |
|Total |
| |
|Whirlpool |
|33 |
|17 |
|50 |
| |
|V-Guard |
|40 |
|10 |
|50 |
| |
|Total |
|73 |
|27 |
|100 |
| |
| |
|On the basis of this hypothesis, the expected frequency corresponding to the number of person surveyed would be: |
|Observed frequency |
|Expected frequency |
|O-E |
|(O-E)^2 |
|(O-E)^2/E |
| |
|33 |
|50*73/100=36.5 |
|33-36.5= -3.5 |
|12.25 |
|3.5 |
| |
|17 |
|50*27/100=13.5 |
|17-13.5= 3.5 |
|12.25 |
|3.5 |
| |
|40 |
|50*73/100=36.5 |
|40-36.5= 3.5 |
|12.25 |
|3.5 |
| |
|10 |
|50*27/100=13.5 |
|10-13.5= -3.5 |
|12.25 |
|3.5 |
| |
| |
| |
| |
| |
|Therefore, ∑[(O-E)^2/E]=14 |
|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 |
| |
|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. |
| |
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| |
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| |

| |
|Chepter-7 : Competitive Analysis |
| |
|[7.1] Porter’s five force model |
|[7.2] BCG Analysis |
|[7.3] SWOT Analysis |
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[7.1] Duromax Competitors’ analysis based on Porter’s five force model

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 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.

[7.2] BCG Analysis

Relative Market Share

HIGH LOW

[pic]

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 SONIC 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.

[7.3] SWOT Analysis

STRENGTHS:

• Whirlpool is world’s no. 1 company in consumer durable products, so it has a good reputation in the market.

• 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 Surat 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.

Chepter-8: Limitations of the study

• The research was conducted in very small area.

• 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.

Chepter-9: Suggestions 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 contacts with retailers.

➢ 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 registered 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.

Chepter-10: 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.

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.

Bibliography

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

PUBLISHERS, REVISED 2nd EDITION

⇨ CHERUNILAM FRANCHIS , BUSINESS ENVIRONMENT, HIMALAYA

PUBLISHING HOUSE

WEB SITE

⇨ http://www.google.com/

⇨http://www.whirlpoolindia.com/

⇨http://www.whirlpoolindia.com/product_details.aspx?catid=1

Dear Sir,

I am a student of M.B.A. perusing my academic research report on “A study on Competitor Analysis Of Whirlpool Corporation With Special Reference To The Stabilizer Market In Surat”. I would appreciate if you could spend some time in filling this questionnaire.

Questionnaire

1) How many brand of stabilizer are you aware of?

One Two Three

More than three

2) Name the stabilizer brand you are aware of.

1. 2. 3. 4. 5.

3) What is the important parameter for more sale of stabilizer?

Price Quality

Brand name Schemes

4) Which is the brand of stabilizer that mostly sold from your shop?

Ans.:

5) Which company’s stabilizer gives you high profit margine?

Ans. __________________________________

6) How is it’s post sales service?

Excellent Good

Average Poor

7) Does there any new brand enter in stabilizer market?

Yes No

If yes, then name that brand

8) Are you aware about whirlpool’s stabilizer (DUROMAX)?

Yes No

9) How do you feel whirlpool’s stabilizers are priced?

Expensive Slightly overpriced

Affordable Cheap

10) Do you feel that whirlpool stabilizers are convenient for the competency?

Yes No

11) Your suggestion. [pic]

Name of the organization: ________________________________

Name of the owner: ______________________contact no.:___________________

Address:

Thanks for giving me your precious time.

-----------------------
Consumers

(Chairman, President & CEO)

(VP & Controller)

Director & President

(North America)

Director & President

(International)

Managing Directing

(India)

SAHU

V.P

Sales

GUPTA

V.P

Corporate Affairs & Strategies

AKHTAR

V.P

Sales, Marketing & Export

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.

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

The revolutionary range of Whirlpool’s RO water purifier comes with 6th sense purify and protect Technology.

Fridge Aid Defrost Timer

Freshonizer Stabilizers

Pedestal Fab O Soft

Fabricare kit Lemon n Onion Box

Calfre Trolley

[pic]

Threat Of New Entrants –

Pagaria

Bargaining Power of Buyers - Good Quality & Service

Industry competitor-

LG, Kenstar,

Mark,SONIC

Bargaining Power of Suppliers-

Profit Margin

Threat of substitutes -

Inbuilt stabilizers on AC & Refrigerator

QUESTION MARK- V-Guard ?

STAR

Mark,SONIC

DOG - Whirlpool

[pic]

CASH COW[pic]Sterlite

Retailers

Company

Distributors

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