CHAPTER 1 COMPANY PROFILE 1.1 INTRODUCTION Founded in 1915 by Dr. Willis Carrier, the
inventor of modern air-conditioning,
Carrier has developed into being the largest global manufacturer of air-conditioning, heating
and commercial refrigeration systems. Over the decades, the Carrier name
has become synonymous with reliability, innovation, commitment, superior technology, cutting-edge manufacturing and world-class performance. Carrier started its operations in India with the setting up of Carrier
Aircon Limited in 1987 and
Carrier refrigeration in 1998. Its competitive advantage lay in the fact that for the first time, the Indian consumer was provided access to advanced technology and airconditioning and refrigeration products from the worldwide product portfolio of Carrier. Carrier Corporation owns96% of the equity in Carrier Aircon Limited and 100% of the equity in Carrier Refrigeration . Carrier Air-conditioning Ltd., Gurgaon operations are spread across 20 acres having full-fledged manufacturing facilities starting from Window Room Air conditioners, Duct Free Splits, Ducted Splits and Chillers supported by strong R&D facility. The Corporate office is also located in the same campus. Carrier Refrigeration, based in Gurgaon has full fledged manufacturing and distribution facilities of cold chain equipment: comprising of cold rooms/stores; Truck Refrigeration & Bus Airconditioning; Chest Freezers/Coolers and vise coolers. Carrier's mission is leadership in every segment of the Indian air conditioning and refrigeration industry through advanced technology, high quality service and a full range of air-conditioning& refrigeration solution.
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NAME OF THE COMPANY
:
CARRIER AIRCON LTD.
ADDRESS
:
DELHI-JAIPUR HIGHWAY
TEL.NUMBER
:
911244825500
FAX NO.
:
911242373241
:
E-MAIL ID
[email protected]
Source : Company Manual
Table no. 1.1- Company details 1.11 Air Condition Industry Air Conditioners give respite from summer heat and have become a necessity. They have made our lives comfortable. After a hard day's work you return home and switch on your air conditioner and let the fresh air relax you and rejuvenate your spirits. Once again you are ready to shop out with your family or help your spouse in household work or spend some quality time with your kids. India you desperately need an air conditioner. In this crouching heat it is only an air conditioner that can give you some respite and make you livelier and energetic. Earlier buying an air conditioner was not easy. It was very costly and middle class families can't afford but now purchasing an air conditioner in India is no more tough and expensive. There are various companies offering air conditioner like LG, Hitachi, Samsung, Onida, Godrej, Sanyo, Carrier, Blue star, Voltas, Amtrex, O General etc. These companies have various offices all over India. They have their own store and shops selling air conditioner of all types .Air conditioner comes in various sizes and shapes. Some air conditioner does not even look like an air conditioner especially ones offered by LG. Their surfaces are too good looking and look like a beautiful scenery. There are room
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air conditioners, split air conditioners, car air conditioners, ductless air conditioners, air ceiling conditioner mount system etc.
1.2 BUSINESS OPERATIONS 1.21 Type Of Business Company involved mainly into the design and manufacture of industrial equipment ,management and execution of air conditioning and public work projects, sourcing, installation and servicing of technology-based systems and representations of global technology leaders, serving diverse industrial sectors and applicants operations have been
organized into three independent business-specific clusters. Each of these has its own facilities for market coverage and service to customers. Namely :
a. Electro-Mechanical Projects & Services i.
Electrical, Mechanical, HVAC & Refrigeration Solutions
ii.
Electrical, Mechanical & HVAC Solutions
iii.
Water Management & Treatment
b. Engineering products & Services i.
Textile Machinery
ii.
Mining & Construction Equipment
iii.
Machine Tools
iv.
Materials Handling Solutions
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c. Unitary Cooling Products for Comfort & Commercial Use i.
Cooling Appliances
ii.
Commercial Refrigeration
1.3 COMPANY’S VISION AND MISSION
Mission: Defines the business , the needs of covering their products and services, the market in which it is developed and the public image of the company. The mission of the company is the answer of the question : why does the organization exists?
Vision: Defines and describes the future situation that a company wishes to have, the intention of the vision is to guide, to control and to encourage the organization as a whole to reach the desirable state of the organization. The vision of the company is the response to the question of: What do we want our organization to be?
1.31 Mission and Vision of Carrier Aircon
a. To be recognized as the leader in every segment we operate in by: b. Being ‗customer focused‘ in everything we do and following ACE diligently c. Delivering ‗best in class‘ quality in the product as well as aftermarket service d. Being ‗environmentally conscious‘ in areas of energy efficiency and pollution e. Establishing a performance culture that respects human values & team work f. Remaining embedded in our core values of EH&S and ethics
Thereby growing profitably and ahead of the market every year, making Carrier a destination of choice for all within HVAC&R industry
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1.4 PRODUCT RANGE OF COMPANY 1.41 Types of Carrier Heating and Cooling Systems The perfect Carrier system for your home depends on several factors, including the physical specifications of your home. Whichever innovative products you and your expert Carrier dealer select, there are 4 primary types of Carrier heating and cooling systems: split systems, hybrid heat split systems, ductless split systems and packaged systems.
a. Split Systems The most typical and traditional heating and cooling systems are split systems. With a Carrier split system, you have products that reside both inside and outside your home. An innovative Carrier split system includes: i.
Air Conditioner—Cools refrigerant
ii.
Furnace and Evaporator Coil, or a Fan Coil—Converts refrigerant and circulates air
iii.
Ducts—Carry the air throughout your home
iv.
Control or Thermostat—Your interface for controlling your system
v.
Optional Air Quality Accessories such as Air Cleaners or Ventilators—Clean your air before it circulates throughout your home. .
b. Hybrid Heat Split System A Carrier hybrid heat split system is a more energy-efficient variation of the traditional heating and cooling split system. The inclusion of a heat pump allows the
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option of electricity-fuelled heating and cooling, in addition to gas furnace heat. An cost-effective Carrier hybrid heat split system includes: i.
Heat Pump —Cools and/or heats refrigerant
ii.
Furnace and Evaporator Coil —Converts refrigerant and circulates air
iii.
Ducts —Carry the air throughout your home
iv.
Control or Thermostat—Your interface for controlling your system
v.
Optional Air Quality Accessories such as Air Cleaners or Ventilators—Clean your air before it circulates throughout your home.
c. Ductless Split Systems Carrier ductless systems can be installed in places where conventional ducted systems cannot go, or are an ideal complement to your ducted system. Carrier ductless systems offer a matched combination of: i.
Heat Pump or Air Conditioner — Cools and/or heats refrigerant
ii.
A Compact Fan Coil—Converts refrigerant and circulates air
iii.
Refrigerant Tubing and Wires—Connects outdoor unit to fan coil
iv.
Control or Thermostat—Your interface for controlling your system
v.
Optional Air Quality Accessories such as Air Cleaners or Ventilators —Clean your air before it circulates throughout your home.
d. Packaged Systems If your home does not have the space for the multiple separate products typically found in a split system, Carrier offers several packaged solutions. From one-room
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units to entire home systems in a single package, Carrier has a variety of options, including: i.
Packaged Products
ii.
Window Ac
iii.
Hi-Wall
iv.
Ducted
v.
Slim pack
vi.
Cassette
vii.
Packaged AC
viii.
Digital Scroll
e. Building systems and services Building systems and services are the kind of products which are used in large factories i.e. where there is large space and heavy work is carried out. Types are as followes: i.
Air cooled chillers
ii.
Water cooled chillers
iii.
Absorption chillers
iv.
Airside Products
v.
Controls
f. Refrigeration Carrier provides a number of refrigeration products with its air conditioning products . following are some refrigeration products manufactured by carrier. 7
i.
vise - Coolers
ii.
Freezers
iii.
Cold rooms
iv.
Super Markets
g. Transport Truck refrigeration is a kind of mobile refrigeration i.e. moving cooling can be provided to the products. i.
Truck refrigeration
1.5 SIZE OF CARRIER CORPORATION Carrier is the world's leader in high technology heating, air-conditioning and refrigeration solutions. Carrier experts provide sustainable solutions, integrating energy efficient products, building controls, and energy services for residential, commercial, retail, transport and food service customers. Founded by the inventor of modern air conditioning, Carrier improves the world around us through engineered innovation and environmental stewardship.
1.51 In Terms Of Turn Over With 2011 revenues of $12.0 billion, Carrier has operations in more than 170 countries. Carrier distributes to and provides service to its customers via a worldwide network of owned and independent distributors and dealers. Carrier is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp. (NYSE: UTX) which provides high technology products and services to the building systems and aerospace industries worldwide through its industry-leading businesses: Carrier, Hamilton Sundstrand, Otis, Pratt & Whitney, Sikorsky, UTC Fire & Security and
8
UTC Power. UTC was ranked 37th on the 2010 Fortune 1000 List of America's Largest Corporations.
1.52 In terms of man power Carrier has overall 43,000 employees serving
customers in 170 countries on six
continents. Wherein, In India It has around 14000 working employees in 3 factories 1 Carrier owned Totaline outlets 25 Sales and service offices
1.6 ORGANIZATIONAL STRUCTURE
Source: Company magazine
Figure no. 1.1-Organizational Structure of Carrier Aircon
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1.7 MARKET SHARE & POSITION OF THE COMPANY
The size of the air-conditioner industry in India is about Rs 2000 crores. The industry can be subdivided into non-ducted and ducted products. The demand for non-ducted products -window air-conditioners and mini-splits -- comes from both households and corporate. The demand for ducted products -- central plants, packaged air-conditioner sand ducted splits -- is mostly from the corporate.
1.71 Market Share Of Carrier Aircon
Founded in 1915, carrier is the inventor of modern air-conditioning and has developed itself into being the world‘s largest provider of air-conditioning, heating and commercial refrigeration systems (HVACR) Carrier is also one of the first to adopt the energy efficiency label issued by the Bureau of Energy Efficiency (BEE) Awarded the First prize for energy conservation in Consumer Goods Sector in 2007 & 2008 by the Ministry of Power, Govt. of India Like Hitachi most of Carrier ACs are having highest Energy Efficiency Ratio (EER) in its category. Indian air-conditioner market can be analyzed for the window and split AC, between the major players in this category which are Carrier, LG, Voltas, Samsung, Hitachi, Videocon and others a. Lg : 41% b. Carrier : 19% c. Samsung : 13% d. Hitachi : 11% e. Voltas : 9% f. Others : 7% 10
MARKET SHARE
LG CARRIER SAMSUNG HITACHI VOLTAS OTHERS
Source: Investors.info
Figure no. 1.2- Market Shares LG has maintained its leadership position in the Indian AC market accounting for a market share of 41%. The company achieved its milestone of sales of 500000 air conditioner in 2005 and has been growing. LG is focusing on offering a comprehensive range of air-conditioners that provide all indoor air quality solutions. Whereas carrier follows up it by 19%. As per Bureau of Energy Efficiency (BEE), around 38 brands of air conditioners are registered with BEE for star rating. The ones that are best known to us include LG, Samsung, Whirlpool, Voltas Godrej, Carrier, Hitachi, Daikin, Panasonic, Blue Star, Onida, Videocon, Haier, Sharp, Electrolux etc. LG has the largest share in the room air conditioner market (22%) followed by carrier (20%) and Samsung (12%). Voltas, a TATA product and Godrej are the Indian brands. Hitachi (7%) and Daikin (4%), Japanese brands, have products in the premium segment.
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When you are planning to buy a new air conditioner you are offered a large number of choices by each of these brands. The long list of features for each of them has the power to leave confused rather than convinced. We did some research on these brands and found that many of them provide online tools to analyse the products offered by them. They also help you in choosing the right air conditioner for you. Some these links are provided below:
1.72 Position Of The Company
2011
UT Electronic Controls (UTEC), a unit of Carrier and the largest manufacturer of HVAC electronic controls for the original equipment manufacturer (OEM) market in the U.S., was the first electronics manufacturing facility to earn Leadership in Energy and Environmental Design (LEED®) Gold certification under the LEED for Existing Buildings rating system
2011
Carrier‘s Monterrey, Mexico Commercial plant was the first industrial facility in the HVAC industry to be LEED Gold certified
2009
Carrier factories in North Carolina and Indiana became only the 10th and 11th in the world at that time to receive LEED green building rating for existing buildings
2009
Carrier's Carlyle Compressor Stone Mountain facility named one of the 10 best plants in North America by IndustryWeek magazine
2008
Awarded the Environmental Pioneer in Cooling award for carbon dioxide refrigeration systems (U.K.)
2008
Industry Week magazine names Carrier‘s Huntington facility a top 10 plant in North America
2008
First prize in India‘s National Energy Conservation Awards
2008
Consumers Digest Premium Best Buy for Infinity™ heat pump (U.S.)
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2008
Featured in six winning projects of the 2008 Builder‘s Choice Awards which showcase excellence in home design (U.S.)
2007
Ministry of Construction award for being one of the top 10 international companies for energy efficiency in China
2007
U.S. Environmental Protection Agency‘s Best-of-the-Best Stratospheric Ozone Protection award in recognition of the company‘s achievements in helping restore the earth‘s ozone layer (U.S.)
2007
AHR (Air Conditioning , Heating and Refrigeration) Expo Innovation Award to Aqua force® chillers (U.S.)
2007
Home Magazine Building Product Awards for innovation and energy efficiency to Infinity™ system (U.S.)
2006
National Energy Conservation Award 2006: 1st Prize in "Consumer Goods sector" category presented by the Honorable President of India, Ms. Pratibha Patil.
2006
National Energy Conservation Award 2006: 1st Prize in "Consumer Goods sector" category
2006
National Energy Conservation Award 2006: 1st Prize in "Manufacturers of BEE Star Labelled Appliances (air conditioner) Sector," Top Rank in "Consumer Goods sector" category
2006
National Energy Conservation Award 2006 : 2nd Prize in "Consumer Goods sector" category
Source : www.carrier.in
Table no. - 1.2- Position of the company
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1.8 PRESENT LEADERSHIP IN CARRIER AIRCONDITIONING AND REFRIGERATION TD.
Mr. Deepak Narula
Chairman
Mr. Rajiv Nath
Managing Director
Mr. Lokesh Mishra
Assistant Manager Human resource Department
Ms. Manjeet kaur
Group Operations Director
Mr. Kalpesh Chaudhry
Chief Executive in refrigeration
Mr. Ranjan upadhayay
Global Management Consultant
Source: Company manual
Table no. 1.3- Present leadership
1.9 SOURCES OF DATA COLLECTION: To obtain the data free from errors, Company performed every step carefully while collecting and recording information and tried to get complete, comprehensible and consistent data. The data for the present research study was collected through two methods: Primary data collection method and Secondary data collection method
a. Books- The use of books starts before even we have select the topic. After selection of the topic books provide insight on how much work we have done on the same topic and we can prepare our literature review. They are the most authentic secondary source.
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b. Magazines/Newspapers- They are the most reliable sources. They give us up to date and very useful information. c.
Published Electronic Sources- As internet is becoming more advance, fast, and reachable to the masses, it has been seen that much information that is not available in printed form is available on internet.
d. Website of the company- websites include all the necessary details regarding the company. e.
Journals of the company- this includes all the data regarding the financial as well as others functional areas in details.
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CHAPTER 2 SWOT ANALYSIS 2.1 SWOT Analysis is a strategic planning tool to evaluate the a. Strengths, b. Weaknesses, c. Opportunities, and d. Threats Involved in a project or in a business venture or in any other situation of an organization or individual requiring a decision in pursuit of an objective. It involves monitoring the marketing environment internal and external to the organization or individual. 2.11 Strengths - Strengths are the qualities that enable us to accomplish the organization‘s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what you are well-versed in or what you have expertise in, the traits and qualities your employees possess (individually and as a team) and the distinct features that give your organization its consistency. Strengths are the beneficial aspects of the organization or the capabilities of an organization, which includes human competencies, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. Examples of organizational strengths are huge financial resources, broad product line, no debt, committed employees, etc.
2.12 Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences on the organizational success and growth. Weaknesses are the factors which do not meet the standards we feel they should meet. Weaknesses in an organization may be 16
depreciating machinery, insufficient research and development facilities, narrow product range, poor decision-making, etc. Weaknesses are controllable. They must be minimized and eliminated. For instance - to overcome obsolete machinery, new machinery can be purchased. Other examples of organizational weaknesses are huge debts, high employee turnover, complex decision making process, narrow product range, large wastage of raw materials, etc.
2.13 Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of conditions in its environment to plan and execute strategies that enable it to become more profitable. Organizations can gain competitive advantage by making use of opportunities. Organization should be careful and recognize the opportunities and grasp them whenever they arise. Opportunities may arise from market, competition, industry/government and technology..
2.14 Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization‘s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a threat comes, the stability and survival can be at stake. Examples of threats are unrest among employees; ever changing technology; increasing competition leading to excess capacity, price wars and reducing industry profits; etc
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STRENGHTHS
WEAKNESS
Exclusive dealer network.
It has a strong set up to provide
Poor IMC techniques that leads to penetration among others.
technological
support
to
develop
new
products and upgrade the existing ones.
OPPORTUNITIES
THREATS
Advent of internet provides
Fierce competition.
an excellent opportunity to
Unstable economic conditions.
reach
Increased threat from cheaper
a
large
base
of
customers and cut costs.
imports especially from china.
Source: www.globalcarrier.com
Table no. 2.1- SWOT analysis of Carrier Aircon
2.3 BEST PRACTICES AT CARRIER AIRCON 2.31CRM Business Consulting Service CARRIER AIRCON CNS Business Consulting Service provides CRM application development guidelines with a comprehensive master plan. This service is directly connected to the CRM Implementation project. With consulting service, you can increase the implementation efficiency and minimize the application development cost. Customer Support System carrier CNS Customer Support System automates processes that are essential for responding service requests such as card issuance, payment demand/ receipt transaction, and approval that occurring the Customer Interaction Center. 18
It supports your customer center to offer one-stop service that systematically integrates the business system with the customer request. 2.32 Usps Under Marketing a. Sales Support System Carrier Sales Support System helps you keep track of the sales transaction ranging from opportunity grasping to the sales conclusion stage. It enhances the possibility of profit gain by providing all the data necessary for sales such as information on customer, product, and competitor. Sales Support System also assists actual result management and planning by providing sales status and estimates. Operational CRM Solution Service carrier compares and evaluates a variety of CRM packages applicable in the marketing, sales, and service field to provide you with the most appropriate solution. Carrier CNS provides outsourcing service with our own CRM solution that can cover either the entire business area (Suite) or specific field of your business (Point). b. Marketing Support System Carrier CNS Marketing Support System provides marketing tools that effectively analyze customer data. It provides fast and accurate market analysis by process automation. Quality of customer service will greatly improve through analysis and forecasting of customer behaviors and requirements. The Marketing Support System also supports personalized marking activities to each customer in real time basis. These marketing campaigns automatically collect and analyze customer information for future customer relationship management.
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2.33 USP under human resource management. The ongoing
process of systematic planning to achieve optimum use of an
organization's most valuable asset - its human resources. The objective of human resource (HR) planning is to ensure the best fit between employees and jobs, while avoiding manpower shortages or surpluses. The three key elements of the HR planning process are forecasting labor demand, analyzing present labor supply, and balancing projected labor demand and supply. The planning process is done with future in mind. The human resources should consider human resources planning and strategic planning for the whole organization. Human resources planning and strategic planning are link in a manner so that major objectives and comprehensive plan is developed. Human resources planning provide inputs for strategic plan of the organization. It answers questions like does the organization has required talent available to pursue its objectives. In these manner Human resources planning is directly linked with strategic planning of
the
organization. In addition to aligning the planning process, the linkage between strategy and human resources also focuses on the development of core competencies. These core competencies help the organization to gain advantage over their competitors and they leverage this advantage by learning faster than others in the industry. Organizations like Blue Star, Bilag and Hindustan Lever can be said to behaving a complete formal system of Human Resource Planning as more than 95 percent of their respondents have stated it is almost always true for their organization. Further, organizations like Reliance Industries Ltd., Aarti Industries, Enercon, Blossom and Paper Product Ltd., having 99.4, 91.75, 90.72, 91.43 and 91.67 percent responses respectively towards the positive end seem to have a somewhat formal system of Human Resource Planning. With a few respondents on the negative end, 20
Micro Inks Ltd. and Aarti Ltd. can be said to be having a formal system but of a little lower degree as compared to the other organizations. 2.34 USP under Inventory management Inventory management is primarily about specifying the size and placement of stocked goods. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. The scope of inventory management also concerns the fine lines between replenishment lead time, carrying costs of inventory, asset management, inventory forecasting, inventory valuation, inventory visibility, future inventory price forecasting, physical inventory, available physical space for inventory, quality management, replenishment, returns and defective goods and demand forecasting and also by replenishment or can be defined as the left out stock of any item used in an organization. Inventory Management allows users to track item levels and movements or take physical inventories and cycle counts in the warehouse, distribution
center, stockroom or store. Using LXE‘s MX8 and Red beam‘s
Inventory Control application, this solution allows users to: a. Speed up inventory movements b. Reduce inventory levels c. Minimize out of stock situations d. Increase accountability e. Create one central inventory database By optimizing purchasing, reducing shrinkage and minimizing paperwork, workers will increase efficiency and productivity in the warehouse, allowing for a quick return on investment.
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CHAPTER 3 DATA COLLECTION
3.1 MARKETING 3.11 Product Planning Process a. Idea Conception New product planning typically commences with a great idea. Company marketers, financial experts and engineers hold brainstorming sessions to decide the types of products to add to their existing product lines. They may also plan new lines of products. Whatever the case, company employees usually devise product concepts to solve consumer problems or fill voids in the marketplace. They then decide which types of customers are most likely to buy their products. Sales and profitability are factored into the evaluation process to determine whether the product idea is viable. b. Concept Statement Product marketers use input from the idea generation session to start drafting a concept statement. A concept statement is a more specific version of the product idea or concept. It is the stage where companies determine what the product will look like, including special features, styles or dimensions. Product pricing and distribution are also determined as are the types of advertising and promotions that will be used to market the product. Many companies will create different versions of products before narrowing their concept statement down to one specific product. This allows for input from consumers who will ultimately determine the products' success.
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c. Focus Groups Focus groups are used to present the product idea to a group of consumers, according to Knowthis.com, an online marketing reference site. Focus groups are usually run at focus group facilities. Managers observe how consumers react to their product idea through one-way mirrors. The focus group session is typically run by a professional moderator or interviewer. This person uses a discussion guide or questionnaire to introduce the concept statement. They ask consumers if they would like the product as it is presented and whether or not they would purchase it. Companies use the input from focus groups to tweak their product concepts with respect to features, styles and price points.
d. Marketing Research Surveys Marketing research surveys help quantify whether consumers will like and purchase the product. Companies often do hundreds of surveys to ensure that their results are valid and representative of the average consumer. This better ensures that the product will sell in the marketplace. Most companies hire marketing research agencies to conduct surveys by phone, mail or via the Internet. These professionals use experienced interviewers to conduct the surveys and computer software to tabulate survey results.
e. Product Development Companies will usually start producing their products on a small scale if the survey results prove favourable. Companies start with smaller amounts of products so they can evaluate sales in specific markets. This helps them avoid high production costs if the product somehow fails. Products are usually produced for another phase of testing called beta testing.
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f. Beta Testing Companies will usually sell the initial products in two are more cities that are comparable in size and demographics like age and income. These tests can run several months to one or more years. During beta tests, companies advertise and promote their products as they planned when creating the concept statement. Financial managers then evaluate sales and profits. They then meet with product managers and engineers to determine whether further expansion is warranted.
Source: Company Manual
Figure no. 3.1- Product planning process 3.12 Pricing Strategies By Carrier Aircon Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more
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profit with a better pricing strategy. When costs are already at their lowest and sales are hard to find, adopting a better pricing strategy is a key option to stay viable. Merely raising prices is not always the answer, especially in a poor economy. Many businesses have been lost because they priced themselves out of the marketplace. On the other hand, many business and sales staff leave "money on the table". One strategy does not fit all, so adopting a pricing strategy is a learning curve when studying the needs and behaviors of customers and clients. To increase annual subscriptions, for example, an online publishing client considered bundling subscriptions with $25 worth of merchandise its target market valued. The merchandise retailed on its Web site. The strategy instead decreased the value of my client's subscription in subscribers' eyes. Customers considered the subscription worth the full subscription price -- but minus the merchandise value.
a. Prices Of Different Models S. No.
Model
MRP
Minimum customer price
Window air Conditioners 1.
1.0 tr Silencia
21490
18000
2.
1.5 tr Optima d e qr
19490
18490
3.
1.5 tr Optima d plus
2490
19790
4.
1.5 tr Celesta d
22990
20990
5.
1.5 tr Optima d
26990
20490
6.
2.0 tr Optima D
23990
22890
7.
2.0 tr Celesta D
27990
25490
25
Hi - Wall Split Airconditioners 8.
1.0 tr g x series
29490
26690
9.
1.5 tr kx series
32890
30090
10.
1.5 tr p s eries
38690
34990
11.
1.5 tr Gx series
41990
38990
12.
2.0 tr kx series
40590
37190
13.
2.0 tr p series
46390
41690
14.
2.0 tr Gx series
49290
45590
15.
3.0 tr kx series
63490
58990
16.
3.0 tr p series
75490
70990
17.
3.0 tr kx series
80990
77190
18.
4.0 tr kx series
70000
66400
19.
4.0 tr P series
77000
74390
20.
4.0 tr gx series
84000
80790
Sierra infinity (ceiling /Floor) Mounted splits 21.
1.0 tr Dn
29490
26690
22.
1.5 tr Dn
36154
32637
23.
2.0 tr Dn
42077
37981
24.
3.0 tr Dn
62 990
58290
25.
4.0 tr Dn
67000
64500
Slim pack splits)
(floor
standing
26.
2.0 tr s lim pack
67490
64490
27.
3.0 tr slim pack
69990
68490
26
Cassette (Celling splits) 28.
1.5 tr cassettee
64900
61600
29.
2.0 tr cassette
71600
67690
30.
3.0 tr cassette
127990
119000
31.
4.0 tr cassette
118000
114000
Source: Company brochure
Table no.3.1- Prices of various products of Carrier Aircon
3.13 Channel Management & Planning a. Channel decisions in relation to marketing strategy Decisions relating to the channels of distribution for a product or service are part of the strategic marketing plan. In that plan, the target market will have been specified along with target levels of market share, market coverage, customer service and so on. The channels of distribution used by an organisation must be capable of assisting in reaching these targets. Moreover, the establishment of a distribution system can take a long time, perhaps several years, and so decisions about the channels of distribution cannot be taken lightly, and have to be taken with a view to the longer term since it is not usually that easy to switch between channels.
A distribution channel may be defined as: The importance of channel decisions has not always been recognised. For a long time, marketers only gave thought to appropriate channels of distribution after the product had been developed. However, Bennett2 claims that:
27
―Modern distribution systems are based on strategic planning, adhere to the marketing concept, focus on target markets, and are consistent and flexible.‖ b.Strategic planning: Distribution channels must be compatible with the strategic marketing plan. If, for instance, a skimming strategy has been adopted or the product requires technical sales support, then mass marketing is probably inappropriate. Alternatively, if large volume sales are required in order to achieve particular profit targets, then selective distribution would be inappropriate.
3.14 Types of Distribution System a. Direct marketing systems: Where distances between producers and consumers are short, direct transactions between the two groups can take place. Farmers who elect to market their products directly have to trade off the benefits of doing so against the time they are away from farming activities. In the case of industrial markets, direct transactions are common where there are a relatively small number of customers (e.g. equipment designed for abattoirs).
b. Retail institutions: The retail sector includes a wide range of outlets such as merchants, equipment dealers (in the case of farmers), department stores, supermarkets and smaller grocery stores. They are characterised by their dealing with the end user of the product or service.
c Wholesalers: Wholesalers make marketing systems more efficient by buying a variety of products, in fairly large quantities, and selling these items on to other businesses who require relatively small quantities of a variety of goods. Wholesalers may service consumer and/or industrial retail outlets. For instance, fruit and vegetable wholesalers often sell to both grocery stores (consumer) and hotels, hospitals, schools, prisons, etc. (industrial). Some wholesalers offer a full-service i.e. they perform all the 28
distribution functions such as selling, pre-delivery inspection (in the case of machinery), technical advice, extension of credit, storage, and delivery. Other wholesalers provide only a limited service. An example would be cash-and-carry wholesalers who require customers to collect the goods and to pay cash. Patrons of cash-and-carry wholesalers are usually compensated for the lower service levels by lower prices.
d. Sales agents and brokers: Sales agents and sales brokers are distinguished from the other types of channel member already described in that they do not take title to the goods. The role of agents and brokers is to facilitate distribution by bringing buyers and sellers together. Sales agents often have close relations with particular growers/processors/manufacturers and contract to sell on their behalf in return for a commission. Some agents negotiate sales for a number of non-competing clients, whilst others handle sales for only one client and usually have the exclusive right to do so, within a specified geographic area. In many respects the sales agent behaves as though he/she were an extension of the client's own sales organisation. Brokers, on the other hand, earn a commission for informing buyers of possible sellers and informing sellers of possible buyers. Clients use the services of a broker intermittently since their supply of the product to the market is intermittent.
3.15 Marketing to middlemen No matter how well a product meets the needs of customers, without effective and efficient distribution it is unlikely to succeed in the marketplace. However, it would be misleading to suggest that producers or suppliers were entirely free to choose which organisations should form the channel for their product (s). In reality, the
29
distribution strategy adopted by most producers more often reflects what is possible rather than what is ideally desired. McVey4 underlines the point when he states that: ―The middleman is not a hired link in a chain forged by a manufacturer, but rather an independent market, the focus of a large group of customers for whom he buys.
3.2 PROMOTION ACTIVITY A wide promotion activity is planned in order to attract as many trade visitors as possible; such activity includes promotion
1 - On carrier aircon newsletters and target oriented mailings
2 - On Radio stations
3 - On TV stations
4 - On street banners
30
5 - On the major local and national trade magazines
6 - On the major local and national newspapers Source- Company manual
Figure no. 3.2- Promotional activity a. b. 3.21 The Visitor Target Group
a. Architects and designers b. Building developers c. Building trade and industry d. Cooling, air conditioning technicians e. Cooperatives f. Energy supply business g. Facility managers h. Heating specialists i. Industry management j. Network technicians k. Planners l. Plant operators m. Plumbers n. Plumbing, heating and air conditioning technicians o. Safety experts p. Sales representatives q. Site owners 31
3.3 HRM POLICIES 3.31 HR policy The cornerstone of the Carrier Human Resources Management philosophy is the conviction that the well-being of the company and of its people are interdependent; and that the company's most valuable assets are its people.
3.32 Our commitment a. To employ the most competent, on the basis of merit b. To ensure that every employee is treated with dignity and respect, and in a fair, consistent and equitable manner c. To create a stimulating, enabling and supportive work atmosphere d. To aid and encourage employees in realizing their full potential We recognize that the success of this philosophy depends in a large measure on the manner in which managers and their team members - at every level - carry out their duties and obligations to each other and to the company. Without mutual confidence and loyalty among employees, as well as respect for each other
as
human
beings,
our
philosophy
will
not
work.
3.33 Managers at all levels are committed to the following principles Have knowledge of, and accept total responsibility for, the success of the organisation's human resources philosophy, policies and procedures, and review them with team members to ensure their total understanding.
Ensure consistent and fair application of all HR policies. Exercise leadership by demonstrating integrity, professional knowledge, the courage of your convictions,
and
concern
for 32
the
feelings
of
others.
Establish a relationship with team members that encourages a free bi-directional flow of information, permits open discussion of differing views, and allows decision making at the most appropriate levels.
In the same context, all employees are expected to maintain certain standards in relation to their work, and in representing themselves as the staff of Carrier. They will : a. Communicate constructive ideas and opinions to managers and team members either pro-actively, or on request b. Accept and support decisions made contrary to their expressed positions c. Apply the highest standards of ethics, integrity and honesty d. Comply with the company's policies and procedures
3.5 DATA PRESENTATION According to the data in the above segment of different functional areas of carrier Aircon. We conducted a survey on 26 top dealers of air conditioners in Delhi about the prices , brand preferences n purchase behaviour of the public towards the brands available in the Indian market. 3.51Research Methodology Research in common parlance refers to search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. Some people consider it as a movement from the known to unknown. It is actually a voyage of discovery. We all possess the vital instinct of inquisitiveness for, when the unknown confronts us probe
33
and attain full and fuller understanding of the unknown. This inquisitiveness is the mother of all knowledge of whatever the unknown, can be termed as research.
a. Research Tool Questionnaire: A detailed questionnaire was given to dealers in Delhi to get the information on AC market in Delhi. Discussions and In-depth interviews of some Dealers in Delhi were conducted to get the information on AC.
b. Sample Size The sample size in total will include 25 dealers of air conditioners in New Delhi. All the collected data was analyzed and is presented in this report.
c. Sampling Method Random sampling method is used as a sampling technique. d. Data Sources: Information has to be gathered through primary and secondary sources. i.
Primary Data
It consists of original information gathered for the specific purpose. This data is generally collected by observation and survey method. ii. Secondary Data It consists of information that already exists somewhere having been collected for another purpose. They offer the advantage of low cost and ready availability. The sources for the data collection were: 34
Primary data sources are: Questionnaire: A detailed questionnaire was given to dealers in Delhi to get the information on AC market in Delhi. Discussions and In-depth interviews of some Dealers in Delhi were conducted to get the information on AC.
Secondary data sources: a.
Internet sites
b.
Company Annual Report
e. Limitations Of The Research
i.
Time was the biggest constraint as all the interviews were to be conducted in person to get actual views of AC users. But all efforts were made to get information relevant to this project.
ii.
There may be some discrepancies in views as some people might give false information in the Questionnaire, as they might not be interested in filling the form.
3.52 Dealers
a. Name of brand in which you deal in? DEALERS OF AC''S Name dealers
of LG
Hitac hi
Amt rex CAR RIE R
Oge Ichba nera n l
Vid eoc on
Whi rlpo ol
Sam Ass sun emb g ling
1. Vibhu enterprise s
No
No
No
No
No
No
Yes
Yes
Yes
No
2. Ultimate Aircon
Yes
No
Yes
Yes
No
No
No
No
No
No
35
3. Happy refrig
Yes
No
Yes
No
No
Yes
Yes
No
No
No
4. Arkay engine
No
No
No
No
No
No
No
No
No
Yes
5. Mallaika
No
No
No
No
No
No
No
No
No
Yes
6. Swastic enter
No
No
No
No
No
No
No
No
No
Yes
7. Gems weather
No
No
Yes
Yes
Yes
No
No
No
No
No
8. Bolton
No
No
No
No
No
No
No
No
No
No
9. Blton
No
No
No
No
No
Yes
No
No
No
No
10. Bliss Aircon
Yes
No
No
No
No
Yes
No
Yes
No
No
11. Classic Aircon
No
No
Yes
No
No
Yes
No
No
No
No
12. Voltesx ircon
Yes
No
No
Yes
No
No
No
No
No
Yes
13. Dhruv aicon
No
No
No
No
No
No
No
Yes
No
Yes
14. Gupta aicon. co
Yes
No
No
No
No
No
No
No
No
Yes
15. Kaul engineers
No
No
No
No
No
No
No
No
No
Yes
16. Global Aircon
No
No
No
No
No
No
No
No
No
Yes
17. Harcomp
No
Yes
Yes
No
No
No
Yes
No
No
Yes
18. Trade link int
No
No
Yes
No
No
No
Yes
No
No
No
19. Pankaj elec.
No
No
No
No
Yes
No
No
No
No
Yes
20. Snowmax
No
No
No
No
No
No
No
No
No
No
36
refri 21. Surya Aircon
Yes
No
No
No
No
No
No
No
No
No
22. Surya refrig.
Yes
No
No
No
No
No
No
No
No
No
23. Allied techno.
No
No
No
No
No
No
No
No
No
No
24. Cool care
Yes
No
No
No
No
Yes
No
No
No
No
25. Sainy electronic
Yes
Yes
No
No
No
No
No
No
No
No
26. Concept aircon. Co.
Yes
Yes
No
No
No
Source- Self observation
Table no. 3.2- Dealers of Ac
37
a.BRAND PREFRENCES 1. Which is the maximum selling brand from your showroom? Brands
Frequency
%
Assembled
10
40
LG
7
28
Samsung
1
4
O General
2
8
Videocon
2
8
Voltas
1
4
Ichban
1
4
TOTAL
25
100
Table no.3.3- Responses for maximum brand preferences 10 9 8 7 6 5 4 3 2 1 0 Assembled
LG
Samsung
O General
Videocon
Voltas
Ichban
Figure no. 3.3- Maximum Brand preferences Out of 25 dealers 10 prefer assembled, 7 for lg, 1 for Samsung ,2 for o general and Videocon and 1 for ichban which implies dealers keep almost no amount of carrier Aircon which can be dangerous for the firm 38
b. ON THE BASIS OF SALE PER YEAR 1..How much AC's do you sale per annum?
Frequency
%
NIL
0
100-200
16
64
200-500
4
16
More than 500
5
20
TOTAL
25
100
Less than 100
Table no. 3.4- Sales responses 16 14 12 10 8 6 4 2 0 Less than 100
100-200
200-500
More than 500
Figure no. 3.4- Graph for sales responses Interpretation OUT OF 25 dealers no one sell less than 100 , around 16 dealers sell between 100-200 , 4 sell between 200-500 n 5 sell more than 500 which iz a good sign in air conditioner market.
39
c. ON THE BASIS OF SALES OF THE PRODUCT. 1.
Which segment sells the best and most? Frequency
%
Window AC
16
64
Hi-wall split AC
6
24
Ducted
3
12
Non-Ducted
2
8
TOTAL
25
100
Table no. 3.5- Responses for sales of different segments
16 14 12 10 8 6 4 2 0 Window AC
Hi-wall split AC
Ducted
Non-Ducted
Figure no. 3.5- Graph for responses of sales for different segments Interpretation Out of 25 dealers window ac is sold in a huge amount , second goes the hi wall split AC , third goes the ducted and lastly non ducted.
40
2. In Hi-wall AC, which brands sells the most?
Frequency
%
LG
12
48
Daikin
3
12
Voltas
3
12
Assembled
7
28
TOTAL
25
100
Table no. 3.6- Responses for sales of Hi-wall AC
12 10 8 6 4 2 0 LG
Daikin
Voltas
Assembled
Figure no. 3.6- Graph showing responses of brand preference in Hi wall Interpretation Majority of people are focussing on lg , assembled , o general, Videocon . the analysis shows lg is publics choice.
41
3.Which factors, you consider are most important factors in consumer purchase decision? Frequency
%
Quality of product
4
25
Dealer‘s margin
3
12
Advertisement
6
24
Warranty period
2
8
Consumption of power
10
40
TOTAL
25
100
Table no. 3.7- Factors for consumer purchase
10 9 8 7 6 5 4 3 2 1 0 Quality of product
Dealer’s margin
Advertisement
Warranty period
Consumption of power
Figure no. 3.7- Graph showing factors for consumer purchase Interpretation Majority of the public demands for the best quality and secondly the consumption of power. 42
4. In your showroom, which brands are mostly asked by the customers? Frequency
%
LG
3
12
Voltas
9
36
Ichban
1
4
O General
3
12
Videocon
3
12
Samsung
6
24
Assembled
Nil
0
TOTAL
25
100
Table no. 3.8- Preference for Brand
9 8 7 6 5 4 3 2 1 0 LG
Voltas
Ichban
O General Videocon SamsungAssembled
Figure no. 3.8- Graph showing responses for brand preference Interpretation ON the basis of customer demand Voltas is the most preferred brand followed by Samsung and Videocon.
43
CHAPTER 4 FUNCTIONAL ANALYSIS 4.1 MARKETING The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact, they are not necessarily the same thing. "Marketing mix" is a general phrase used to describe the different kinds of choices organizations have to make in the whole process of bringing a product or service to market. The 4Ps is one way – probably the best-known way – of defining the marketing mix, and was first expressed in 1960 by E J McCarthy. The 4Ps are: a. Product (or Service) b. Place c. Price d. Promotion A good way to understand the 4Ps is by the questions that you need to ask to define your marketing mix. Here are some questions that will help you understand and define each of the four elements: 4.11 Price a. What is the value of the product or service to the buyer? b. Are there established price points for products or services in this area? c. Is the customer price sensitive? Will a small decrease in price gain you extra market share? Or will a small increase be indiscernible, and so gain you extra profit margin? d. What discounts should be offered to trade customers, or to other specific segments of your market? 44
e. How will your price compare with your competitors? 4.12 Promotion a. Where and when can you get across your marketing messages to your target market? b. Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the Internet? c. When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your market launch, or the timing of subsequent promotions? d. How do your competitors do their promotions? And how does that influence e. The 4Ps model is just one of many marketing mix lists that have been developed over the years. And, whilst the questions we have listed above are key, they are just a subset of the detailed probing that may be required to optimize your marketing mix. Amongst the other marketing mix models have been developed over the years is Boom and Bitner's 7Ps, sometimes called the extended marketing mix, which include the first 4 Ps, plus people, processes and physical layout decisions.
Functional analysis under marketing department states that carrier Aircon has its very less control over its promotion n pricing strategies.
4.2HUMAN RESOURCE MANAGEMENT Managers
at
all
levels
are
committed
to
the
following
principles
Have knowledge of, and accept total responsibility for, the success of the
45
organisation's human resources philosophy, policies and procedures, and review them with team members to ensure their total understanding.
Ensure consistent and fair application of all HR policies. Exercise leadership by demonstrating integrity, professional knowledge, the courage of your convictions, and concern for the feelings of others. Establish a relationship with team members that encourages a free bi-directional flow of information, permits open discussion of differing views, and allows decision making at the most appropriate levels. There are a number of complains arising against the price issues from the dealers n the general public side.
46
CHAPTER 5 SUMMARY AND CONCLUSIONS 5.1 CONCLUSION With the fall in AC prices coupled with the increasing purchasing power of the middle class and the perception that an AC is no longer a luxury but a necessity, the demand for AC‘s has never been much better. According to industry sources, 70-80% of the AC‘s sold are used for essential industrial applications, hospitals and pharmaceuticals and not merely for comfort, as it is widely believed. A large part of the demand comes from commercial and industrial sector; even the govt. is a major customer. The demand for AC‘s is expected to grow at the rate of 25% per annum. In this segment, the demand for windows AC‘s, which currently accounts for 80% of the total demand is likely to reduce to 70% by year 2005. Split AC‘s which are not very popular now, are expected to pickup and account for 30% of the demand by 2005. This means that out of a total of 34 lakh units of AC‘s sold in 2005, around 23 lakh will be window AC‘s and the remaining 11 lakh units will be split types. Demand of AC‘s is expected to leap by 25%. Household segment, fastest growing segment with market share of 25% followed by industrial. According to a study conducted by Refrigeration and AC Manufacturers Association, India has a potential to emerge as one of the largest market in South East Asia. The survey of twenty five dealers in Delhi showed that Assembled AC‘s still rule the market because of a major price difference between assembled and branded AC‘s. LG follows the list and other players sharing the rest of the AC market. The reason for LG to be a success in this emerging market seems to be the price and advertisements that 47
add to its sales. As per the dealers people go in for the quality of the product as far as purchase of AC is considered and also look for the power consumption before making the purchase decision. Dealers say that the features of all the branded AC‘s are almost similar and thus these two factors affect the buyer‘s buying decision. 5.2 LESSONS LEARNT Internship at Carrier aircon ltd. started with the objective of gaining practical knowledge on various aspects. As per the program, it was necessary to gain knowledge about the product and services, it‘s features and other things about the industry and competitors. The opportunity to meet different people from diverse backgrounds and occupations was important in gaining knowledge about the company. 30 visits to various dealers in a short span of 6 weeks internship was the task given. The main contribution of an employee to its organization is to perform its responsibilities given with 100% effort and honesty. So the major contribution was to prepare proposals for the potential clients of carrier aircon. Further visiting, different organizations to sell the proposals was clearly the most important and very tough task. . Seniors were happy with the contribution made to the organization by the tasks performed. 5.3 RECOMMENDATIONS & SUGGESTIONS Carrier Aircon must try to improve its market share by using better Marketing strategies and must concentrate on quality and price to attract the customers. It must also try to make a market presence by using advertising techniques and also a promotion drive across the country to make people aware of its world class product range.
48
It must also try improve on relationship with dealers by adopting more dealer oriented schemes to make them committed to carrier Aircon. It must also improve on after Sales service for all its customers and also introduce customer oriented schemes to attract new customers. And thus fulfill the commitment given to the customers during the purchase.
49
BIBLIOGRAPHY Books
1) Kotler Philip. Marketing Management, Pearson Publishing House, New Delhi, 13th edition , P. 57,86,99
Manuals 1) Carrier Aircon‘s Manual 2) Company brochure
Websites 1) www.google.com – (accessed on 26-07-2013) 2) www.globalcarrier.com – (accessed on 30-07-2013) 3) www.carrierindia.com –(accessed on 08-08-2013) 4) www.wikipedia.com – (accessed on 25-08-2013)
50
ANNEXURE 1 QUESTIONNAIRE
1. Name of brand in which you deal in? LG
Ichban
Samsung
Hitachi
General
Assembled
Amtrex
Whirlpool
Videocon
Voltas
2. Which is the maximum selling brand from your showroom? LG
Ichban
Samsung
Hitachi
General
Assembled
Amtrex
Whirlpool
Videocon
Voltas
3. How much AC d o you sale per annum?
Less than 100 More than 500
100-200
200-500
4. Which segment sells the best and most? Window AC Ducted
Hi-wall split AC
Non-ducted
1. In window AC, which brands sell the most? LG
Ichban
Samsung
Hitachi
General
Assembled
Amtrex
Whirlpool
Videocon
Voltas
51
2. In hi-wall AC, which brands sell the most? LG
Ichban
Samsung
Hitachi
General
Assembled
Amtrex
Whirlpool
Videocon
Voltas
7. Which factor, you consider as most important factor in consumer purchase decision? Quality of product
Dealer‘s margin
Advertisement
Warranty period
Consumption of power
After sales services
8. In your showroom, which brand are mostly assed by customer? LG Ichban Samsung
Hitachi
General
Assembled
Amtrex
Whirlpool
Videocon
Voltas
9. Are you interested in dealing with Carrier Aircon? Yes
No
52
