120035738 Market Analysis of Daikin Air Conditioners

5/20/2018 120035738 Market Analysis of Daikin Air Conditioners

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THE INDIAN INSTITUTE OF PLANNING AND MANAGEMENT

NEW DELHI

THESIS ON

MARKET ANALYSIS OF DAIKIN AIR CONDITIONERS

SUBMITTED TO:

PROF. VIJAY BODDU

UNDER THE GUIDANCE OF:

MR. RAMAKAR JHA

SUBMITTED BY:

NITIN GUPTA

THESIS ID NUMBER: DF/09/11-M-314

BATCH FW-2009-11


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ABSTRACT

The thesis has been undertaken in a renowned company Daikin. The main objective

behind the thesis is to know about the consumer preference for the product when other

competitors like L.G WHIRPOOL are there in the market, and to get an insight into

the price strategy of the company as well as the post launch status of the company and

to find the various reasons because of which the company is able to survive the edge

cutting competition and what are the other marketing strategy of the company. A

survey has been done and data has been collected from various dealers all over Delhi

and thus a report has been prepared. There is a direct correlation between the income

groups and their purchase of Daikin air conditioners. The reason being that Daikin ac

are low priced. Hence cater to large market, so its logical that of high and middle

income groups. The dealers give promotional leverage to some brand of air

conditioners. They also give more the shelf space to those products as the shelf space

is directly correlated with the kind of margins received & schemes given to the multi

brand dealers i.e. more the margin more the space. Hence, one may conclude that

maximum promotional leverage is given to the brand giving maximum margins &

offering the best schemes.


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TOPIC APPROVAL LETTER

Dear Nitin Gupta,

This is to inform that your thesis proposal on Market Analysis of Daikin Air

Conditioners, to be conducted under the guidance of Mr.Shrijit Chandrawat is

hereby approved and the topic registration id number is DF/09/11-M-314

Make it a comprehensive thesis by ensuring that all the objectives as stated by you in

your synopsis are met using appropriate research design; a thesis should aim at adding

value to the existing knowledge base.

You are required to correspond with us by sending the thesis final draft Vijay Kr.

Boddu at [email protected] Ph.-011- 42789878 before the thesis submission

NB:

1) A thesis would be rejected if there is any variation in the topic/title from the one

approved and registered with us.

2) The candidate needs to handwrite at least 1200 to 1500 words on the summary of

thesis at the time of viva.

Regards,

Prof. Ramakar Jha

Department of Thesis

Address: Level 0, IIPM International Campus,

Satbari, Mehrauli-Chattarpur Road, Delhi, India

Phone: 91.11.42789919, 30168408

e-mail: [email protected];

web: www.iipm.edu,


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THESIS SYNOPSIS

Name: Nitin Gupta

Section: FP1

Batch: PGP- Fall-Winter- 09/11

Specialization: Marketing & HR

Phone No: +91- 9910705323

Email ID: [email protected]

DESIRED AREA OF RESEARCH

Marketing

TITLE OF THE THESIS

Market analysis of Daikin Air Conditioners

RESEARCH OBJECTIVE

To understand the Market Attractiveness Evaluation

Market sizing - estimating the size of a total market, how much is

accessible by the business, and/or what market share ambitions would be

realistic. Competitive presence and customer preference.

Channel trends, preferences, and allegiances.

To identify areas where there can be scope for improvement.

To understand customer needs, aspirations, buying behaviors, usage patterns,

decision models, preferences, favorability, intentions, etc


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LITERATURE REVIEW:

Market analysis is to determine the attractiveness of a market and to understand its

evolving opportunities and threats as they relate to the strengths and weaknesses of

the firm. Market analysis has a variety of purposes and a variety of data collection

methods might be used for each purpose. The particular data collection method that

you use during your market research depends very much on the particular information

that you are seeking to understand. Other steps follow

Identify opportunities to serve various groups of customers

Examine the size of the market

Market growth rate and profitability Investigate the competition

Clarify your unique value proposition

SCOPE:

Why in the particular period of Time Company haring more sales professional. Why

Employs left the organization, why not continue longer period of time. What is the

factor affecting the employs so that, they work with longer period of time with our

organization.

RESEARCH METHODOLOGY

Data Source

Primary Data : Through Questionnaires

Secondary Data : Through Internet, Journals, News papers.

Data Collection Procedure : Survey

Research Instrument : Structured Questionnaire.

Sample Size : 80

Sample Area : Work has done in Delhi/NCR Office.

Sample Procedure : Random sampling.


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Target Audience : Marketing officials / channel members/

customers

These will be some of the sources through which up-to-date and relevant data will be

collected. The information gathered will be tabulated and presented in the final report.

SCOPE OF THE STUDY

To define the process and activities while market analysis, research, strategies and

techniques of an organization. Every task is undertaken with an objective. Without

any objective a task is rendered meaningless.

SUMMER TRAINING DETAILS:

My summer internship topic was TrainingNeeds Assessment and Development of a

Training Calendar with Ambuja Cements Limited. I was directly involved in

studying the need and requirement that the company has in terms of training of its

employees. Also understood the importance of a Training calendar, since it becomes

very essential for the employees to be trained at all times so that they enhance their

skills and become more productive.

DETAILS OF THE EXTERNAL GUIDE

Name : MR. SHRIJIT CHANDRAWAT

Designation : SENIOR MARKETING MANAGER

Qualification : MBA - Marketing

Company Name : DAIKIN AIR CONDITIONING INDIA PVT. LTD


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ACKNOWLEDGEMENT

In a cooperative Endeavour there are many personalities to whom special

acknowledgement is due because of their special contribution, enlightened

suggestions during the various stages of report. Without their cooperation &

encouragement. I could never be able to give a monograph.

It is well-established fact that behind every achievement lays an unfathomable sea of

gratitude to those who have extended their support and without whom the project

would ever have come into existence.

I express my gratitude to IIPM, New Delhi for providing me an opportunity to work

on this thesis as a part of the curriculum.

I would also like to thank Mr. Ramakar Jha for his guidance and support.


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TABLE OF CONTENT

ABSTRACT ................................................................................................................... 2

TOPIC APPROVAL LETTER ...................................................................................... 3

SYNOPSIS ..................................................................................................................... 4

ACKNOWLEDGMENT................................................................................................ 7

TABLE OF CONTENTS ............................................................................................... 8

INTRODUCTION ........................................................................................................ 9

COMPANY PROFILE ................................................................................................ 13

REVIEW OF LITERATURE ...................................................................................... 24

RESEARCH OBJECTIVES........ 30

RESEARCH METHODOLOGY................................................................................. 31

DATA ANALYSIS AND INTERPRETATION..... 33

FINDINGS ................................................................................................................... 41

LIMITATIONS ............................................................................................................ 44

RECOMMENDATION........... 45

BIBLIOGRAPHY .................................................................................................... ...47

ANNEXURE................................................................................................................ 48


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INTRODUCTION

Market analysis is to determine the attractiveness of a market and to understand its

evolving opportunities and threats as they relate to the strengths and weaknesses of

the firm. Market analysis has a variety of purposes and a variety of data collection

methods might be used for each purpose. The particular data collection method that

you use during your market research depends very much on the particular information

that you are seeking to understand. Other steps follow

Identify opportunities to serve various groups of customers

Examine the size of the market

Market growth rate and profitability

Investigate the competition

Clarify your unique value proposition

MARKETING STRATEGIES

Marketing strategies serve as the fundamental underpinning of marketing plansdesigned to fill market needs and reach marketing objectives. Plans and objectives are

generally tested for measurable results. Commonly, marketing strategies are

developed as multi-year plans, with a tactical plan detailing specific actions to be

accomplished in the current year. Time horizons covered by the marketing plan vary

by company, by industry, and by nation, however, time horizons are becoming shorter

as the speed of change in the environment increases. Marketing strategies are dynamic

and interactive. They are partially planned and partially unplanned.

The field of marketing strategy encompasses the strategy involved in the management

of a given product.

A given firm may hold numerous products in the marketplace, spanning numerous

and sometimes wholly unrelated industries. Accordingly, a plan is required in order to

effectively manage such products. Evidently, a company needs to weigh up and

ascertain how to utilize its finite resources. For example, a start-up car manufacturing

firm would face little success should it attempt to rival Toyota, Ford, Nissan,


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Chevrolet, or any other large global car maker. Moreover, a product may be reaching

the end of its life-cycle. Thus, the issue of divest, or a ceasing of production, may be

made. Each scenario requires a unique marketing strategy. Listed below are some

prominent marketing strategy models.

A marketing strategy differs from a marketing tactic in that a strategy looks at the

longer term view of the products, goods, or services being marketed. A tactic refers to

a shorter term view. Therefore, the mailing of a postcard or sales letter would be a

tactic, but a campaign of several postcards, sales letters, or telephone calls would be a

strategy.

Marketing is defined in various ways by different people. The most suitable to the

present context is all the activities involved in moving products and services from

the source to the end user, including advertising, sales, packaging, promotion and

printing. The most critical entity implied by this definition is end user. The

definition of society suitable to this context is Society is made up of people, groups,

networks, institutions, organizations and systems. These aspects of society may

include local, national and international patterns of relationships. People belong to

informal and formal groups, and within and between these groups there are patterns of

interactions. The most critical entity implied by this definition is people.


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A marketing strategy is a process that can allow an organization to concentrate its

(always limited) resources on the greatest opportunities to increase sales and achieve a

sustainable competitive advantage. A marketing strategy is most effective when it is

an integral component of corporate strategy, defining how the organization will

engage customers, prospects and competitors in the market arena for success. It is

partially derived from broader corporate missions, and corporate goals. They should

flow from the firm's mission statement. They are also influenced by a range of

environmental factors. A good marketing strategy should integrate an organization's

marketing goals, policies, and action sequences (tactics) into a cohesive whole. Many

companies cascade a strategy throughout an organization, by creating strategy tactics

that then become strategy goals for the next level or group. Each group is expected to

take that strategy goal and develop a set of tactics to achieve that goal. This is why it

is important to make each strategy goal measurable. Every marketing strategy is

unique, but if we abstract from the individualizing details, each can be reduced into a

generic marketing strategy. There are a number of ways of categorizing these generic

strategies. A brief description of the most common categorizing schemes is presented

below:

Strategies based on market dominance - In this scheme, firms are classified based on

their market share or dominance of an industry. Typically there are three types of

market dominance strategies:

Leader

Challenger

Follower

Porter generic strategies - strategy on the dimensions of strategic scope and strategic

strength. Strategic scope refers to the market penetration while strategic strength

refers to the firms sustainable competitive advantage.

Cost leadership

Product differentiation

Market segmentation


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Innovation strategies - This deals with the firm's rate of the new product development

and business model innovation. It asks whether the company is on the cutting edge of

technology and business innovation. There are three types:

Pioneers

Close followers

Late followers

Growth strategies - In this scheme we ask the question, How should the firm grow?.

There are a number of different ways of answering that question, but the most

common gives four answers:

Horizontal integration

Vertical integration

Diversification

Intensification

A more detailed schemes uses the categories:

Prospector

Analyzer

Defender

Reactor

The objective of many marketing strategies in the last 10 years has been building the

customers commitment to a brand or a dealer.


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COMPANY PROFILE

DAIKIN Global

Daikin Industries Ltd

Founded in 1924, Daikin Industries Limited is the global leader in the manufacturing

of commercial and industrial air-conditioning systems. Being the world's sole

manufacturer capable of developing a full line of dynamic products from refrigerants

to air-conditioners, Daikin has built a well-established and strong presence in Japan,

China, Southeast Asia, Europe as well as North America.

Pioneering products include the first packaged air-conditioner in Japan 1951, and the

world's first Variable Refrigerant Volume (VRV) system in 1982. Daikin is

committed to explore and adopt cutting-edge technology, in order to continually offer

value-added and solution-based products and services to customers. The Group

currently holds the prime share of the air-conditioning market in Japan, and is the

leading performer in VRV technology.

Daikin ensures safety comes first, and the Group is reputed for its quality products

and services. The Group also places much emphasis on "the fusion of the global

environment and business management".

In all aspects of its business operations, Daikin applies environmentally-friendly

practices, and actively promotes the development of new products and inventive

technologies that help to sustain and improve our global environment.


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DAIKIN INDIA

Daikin Airconditioning India Pvt. Ltd. ( DAIPL) is a 100% subsidiary of Daikin

Industries Ltd., Japan, a global leader in the manufacturing of commercial-use and

residential air conditioning systems. Backed by the superior technology, the

organization offers a wide range of energy efficient air conditioning solutions to the

Indian customers. It has been successfully offering premium air conditioning

solutions in the Indian market for large-scale projects. Robust growth is forecasted in

Indias air-conditioning market in the future and Daikin intends to further increase its

market share of residential and large-scale projects.

Daikin India Network

11 branch offices (sales & service)

13 resident offices

4 mother warehouses

17 supporting warehouses

Daikin Solution Plaza (DSP) - 68

Channel Partners - 1045

Authorized Service Providers (ASP)92

Daikin India Vision & Mission

Vision

Come first in customers mind as the most trusted air-conditioner brand

Mission

To contribute to the society by providing the most advanced air-conditioning

solutions

To ensure continuous customer satisfaction

To establish Daikin Brand as a brand of trust and confidence, which our

customers and dealers believe in.


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GROUP PHILOSOPHY

STRIVING TO BE A GROUP THAT CONTINUOUSLY EVOLVES

Create New Value by Anticipating the Future Needs of Customers

Our mission, and the essence of our existence, is to identify and realize our

customer's future needs and dreams, even those that they themselves may not yet be

aware of. We can accomplish, this goal by paying careful attention to changes in

social trends and conducting extensive marketing to win the hearts and minds of

customers. It is essential that we offer customers optimum convenience and comfort

that are always one step ahead of our competitors by providing customers with the

highest quality products, materials, and services for which we, as a manufacturer, will

be absolutely responsible. Moreover, we will continue offering products and services

that provide customers with fresh excitement and continued enjoyment.

We furthermore believe that these activities are an important source of increased

profit and business expansion for the Group.

Contribute to Society with World-Leading Technologies

In any era in any business field, a company can grow and develop only if it possesses

world-leading technologies.

Along with increasing our market share and creating new markets, we must devote

ourselves to strengthening our technological foundation since this enables us to

continuously launch highly differentiated products, high value-added products,

solutions-type products, and products with new applications through which we can

make contributions to society.

While refining our core technologies to a level of dominant superiority, we must also

adopt technologies that are cutting-edge, as well as of the highest world standard, and

integrate them with Daikin's own technologies in order to establish the "Daikin

Technology" recognized throughout the world.


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Realize Future Dreams by Maximizing Corporate Value

We must strive to maximize our corporate value by thoroughly implementing

management based on the mandates of capitalist philosophy.

Enhanced corporate value offers us a greater range of management options, enabling

us to realize new growth and making possible the establishment of a stable yet

flexible management foundation. Moreover, enhanced corporate value provides

increased investment opportunities through which to realize our future dreams.

Enhanced corporate value unquestionably responds to the expectations held by our

shareholders by providing them with stable dividends. It can also benefit other

stakeholders not only by providing our customers with leading-edge products and

solution made possible through enriched research and development, but also by

making contributions to the local communities in which we are based. We firmly

believe that enhanced corporate value especially leads to our employees and their

families enjoying more stable and fulfilling lives.

Think and Act Globally

Daikin's history has been one of continual global business expansion. As a

multinational company group that is substantially expanding its operations in every

region of the world, including Japan, we must propose, examine, and then implement

strategies and policies from a global point of view.

Therefore, we aim to systematically foster human resources appropriate to the

particular characteristics of each country and region; promote the appointment of

local human resources who understand Daikin's philosophy, traditions and culture,

and who can play a part in Group management; and promote exchanges of human

resources regardless of company or country.


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Be a Flexible and Dynamic Group

Flexible Group Harmony

By thoroughly promoting information sharing and the transfer of know-how

throughout the Group, individual Group companies must strive to develop and expand

their respective business operations, thereby enabling the entire Group to enjoy

synergetic effects.

The specific roles of Daikin Industries and the individual Group companies are not

fixed. These roles can be changed or adapted to flexibly respond to the particular

circumstances of the times and the characteristics of the individual Group companies.

With this as a premise and the Group Philosophy and policies as a base, Group

companies must contribute to the development of the entire Group by aligning their

visions and enhancing their individual capabilities, while fulfilling their own roles and

responsibilities and introducing new proposals.

Moreover, individual Group companies know best about the conditions particular to

each country and region. Based on our fundamental Group policy, each Group

company is expected to demonstrate autonomy and flexible action by promoting two-

way communication between themselves and Daikin Industries through information

sharing about their specific business fronts.

Build Friendly yet Competitive Relations with Our Business Partners to Achieve

Mutual Benefit

We must build friendly yet tense competitive relations with all our business

associates and alliance partners in all areas of management, including research,

production, and sales.

Such relations involve a high degree of trust in which parties motivate each other

toward improvement and, from within their own roles, fulfill each other's expectations

so that all parties can grow and develop together


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Be a Company that Leads in Applying Environmentally Friendly

Practices

As we continue developing our business operations in various fields, it is our mission

to proactively develop initiatives to respond to environmental issues. Incorporating

environmental initiatives throughout our management must be a priority for us.

In all aspects of our business operations, including product development,

manufacturing and sales, we need to formulate initiatives that sustain and improve the

environment.

Meanwhile, we need to promote the development of new products and the innovation

of technologies that will lead to a more environmentally healthy world.

Under the precept "environmental response is an important management resource,"

we must integrate environmental initiatives into our corporate management since they

can lead to business expansion, improved business performance, and further

enhancement of our credibility with outside parties. We intend to continue being a

leading company in the practice of "environmental management," thus contributing to

a healthier global environment as a good citizen of the earth.

QUALITY & ENVIRONMENTAL POLICY

Quality is the first priority

Quality First is clearly reflected in the value delivered - such as low noise level,

low power consumption, cooling efficiency, ease of installation, high reliability all

targeted to improve the quality of life.

DAIPL commits to protect the environment and ozone layer during the import,

marketing, sales & servicing of air-conditioning systems and spares through:

1. Deploying Group Management Philosophy & Environment guidelines

2. Adapting procedures for refrigerant handling, resource conservation and waste

management

3. Improving its Environmental Management System continually

4. Preventing pollution and adverse environmental impacts

5. Legal compliance


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CORPORATE ETHICS

Guidelines for Legal Compliance

1. Providing Safe, High Quality Products and Services.2. Free Competition and Fair Trading.

3. Observing Trade Control Laws.

4. Respect and Protection of Intellectual Property Rights.

5. Proper Managment and Utilization of Information.

6. Timely and Appropriate Disclosure of Corporate Information.

7. Preservation of the Environment.

8. Ensuring the Safety of Operations.

9. Respect for Human Rights Diversity in the Workplace and Observance of

Labor Laws.

10.Protection of Company Assets.

11.Proper Handling of Accounting Procedures.

12.Practising Moderation in Entertainment and Gift Exchanges.

13.Maintaining a Firm Attitude against Anti-Social Activities.

14.Observing Various Business Laws and Regulations.


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OUR PRODUCTS

SPLIT

They are always there, just like air.

CASSETTE

Quiet, decor-blending form and easy installation in new or old buildings.Flexibility ininstallation location. Installation is also simple.

FLOOR STANDING

The floor-standing configuration means the FVY is easy...


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DUCTED

Superior air distribution for comfortable living. Unit can be...

VRV

VRV system air conditions each room individually. Ideal for the...

CHILLER

We at Daikin take environment friendliness issue very seriously


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AIR PURIFIER

Air Purifier cleans the air in your room. Removes Allergens, Adjuvants, Deodorising


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SWOT ANALYSIS

Swot(strength, weakness, opportunity & threat) analysis of Daikin air conditioners.

It is no doubt about the fact that Daikin is considered to be huge marketing success.

A swot analysis of its marketing function is as follows:

Strengths

Premium pricing

Focus on technology & quality

In-house manufacturing facility

Product design

Weakness

Low quality as compared to other brands

Little presence in A class area

Opportunity

Large market potential

Wide production portfolio

Consumer willingness to change brand

Threats

Highly competitive market, therefore, a stiff competition from domestic and

other multinational companies


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LITERATURE REVIEW

MARKETING STRATEGY:

It sells the residential air conditioners mainly through its Channel Partners (dealer

network).

The centralized air-conditioning systems, the VRV (aircooled and watercooled) and

the Chillers (air-cooled and water-cooled) are sold mainly through the Opinion

leaders like Architects and the HVAC consultants.


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DAIKIN INDIA EYING HIGHER MARKET SHARE

Daikin Air-conditioning India private limited, a 100 per cent subsidiary of $13.5

billion Daikin Industries Ltd of Japan, is aiming to raise its market share in theresidential air-conditioning market in the country to nine per cent within this year

from a current five per cent. The company, a leader in the commercial air-

conditioning space, plans to sell 300,000 room air-conditioners (ACs) this year.

While the heating, ventilation, and air-conditioning (HVAC) system market in India is

growing at a compounded annual growth rate of 15 per cent, the room AC segment is

clocking a 30 per cent growth rate.

"We have a product offering that starts from 0.8 tonnes to 2700 tonnes. We can offer

solutions for cooling a kid's room to air-conditioning an airport, and the only company

in the country now to offer such a wide range. With the latest launch of 20 new

products across residential, light commercial and commercial segments we are aiming

the number one slot in the air-conditioning market in India over a few year's time.",

said Kanwal Jeet Jawa, managing director, Daikin India. Daikin currently enjoys a 10

per cent market share in the commercial ACs

DAIKIN AC MARKET IN INDIA

Daikin, the global cooling products company, is foraying into the residential air

conditioning (AC) market. The company plans to enter the Indian market with the

launch of its residential ACs (0.75-1.8 tonne) which will go by the FTE name.

Daikin is test marketing its products in Delhi, Mumbai and Chennai and may then do

so in 19 Tier-III and Tier-III towns and cities such as Ludhiana, Jalandhar and Raipu

We are planning to enter the residential AC market and are here to compete with the

existing players in the market, mainly Toshiba, said Kanwal Jeet Jawa, deputymanaging director and chief operating officer. The company recently partnered with


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Gree, the Chinese AC major, and will be using their resource base for the further

development of the ACs it will produce in India. The company has made a total

investment of about Rs 346 crore for this venture. Daikin, which has a global

consolidated turnover of around $13 billion or Rs 58,500 crore, has decided to ramp

up its operations at its manufacturing unit in India, at Neemrana in Rajasthan, for this

purpose. The plant has a capacity of 3,00,000 units per year.

Daikin, which entered the Indian market in 2000, is targeting a market share of 15 per

cent over the next three years and also doubling its market share from Rs 500 crore to

about Rs 1,000 crore in the next two years. Due to our partnership with Gree, we

have the expertise to further our brand in the residential AC space in India, which is

growing rapidly, said Jawa.

Daikin Industries is headquartered in Japan and has 95 subsidiaries in its network. The

company is a global leader, second to Carrier in the manufacturing of ACs for

commercial-use.


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COMMERCIALS AIRED ON TV TARGETING THE

CONSUMER:

Segmentation and Targeting: Premium market Customers

Positioning: Elite Product

1. Daikin Air conditioner 1(Monkey ad):

This was Daikin's TV ad in India during 2003-04. It positioned the airconditioner

firmly as a technological wonder that offered complete silence. The ad contributed in

a large measure to Daikin commanding a heavy premium in the Indian airconditioner

market. The ad also won recognition at Cannes Advertising Festival, Ad Club of India

and the Effie Awards.

This advertisement was launched between the end of the introduction phase and

before the beginning of the Growth phase.

2. Daikin Air Conditioning 2 (Service Focus):

This ad tries to explain the importance of the timely Service and its Quality and thus

differentiates itself from the rest.

This advertisement was launched during the early growth phase.

3.

Daikin 3(Relaxation):

This ad stresses on the feel of relaxation and comfort that the customer will enjoy.

It also differentiates itself from the others by the fact that it makes no noise in

operation.

This adverisement was launched during the growth phase


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4. Daikin 4(lifestyle):

This ad differentiates Daikin by way of the fact that inspite of the various lifestyles

that people lead, it fits into their lifestyle wherever they may go. Thus it gives a strong

message that it is a distinguishing brand and that the customers should take pride in

themselves.

This advertisement was launched during the growth phase

Repositioning for Residential Use:

Daikin is repositioning itself as Product for common man in the Indian market with

the launch of its residential ACs (0.75-1.8 tonne) which will go by the FTE name.

This is possible because Daikin has recently acquired Gree, the Chinese AC major,

and will be using their resource base for the further development of the ACs it will

produce in India.

It is test marketing these products in Delhi, Mumbai and Chennai and may then do so

in 19 Tier-III towns and cities such as Ludhiana, Jalandhar and Raipur.

Introducing Pichon-Kun:

A mascot that will now represent the Daikin's innovative thrust into the future is

called "Pichon-kun". The new mascot of Daikin is so named because of the sound it

makes. Created in Japan, this dew droplet represents the "fresh as morning nature" of

Daikin's new range of air conditioners and air-purifiers. Pichon-kun symbolises the

best of nature -- fresh, natural and eco-friendly.

The Company still is in its Growth Stage of the PLC.


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Video/Presentation to target the Opinion leaders like the Architect or the HVAC

Consultants:

1. Daikin VRV III-opinion leader-1:

The Video is about the features of the VRV system which uses the Variable

Refrigerant Volume which is a patented technology of Daikin. This technology saves

energy consumption and uses non Ozone depleting refrigerant.This is a major

Differentiating factor from the rest of players in the airconditioning industry.

The company positions its product (VRV) as a flexible product that takes care of all

the customer needs.The company projects itself as one which develops and uses the

highest technologies.

This Video was launched when the market for VRV system had reached the end of its

growth stage.

2.

Daikin McQuay-opinion leader 2:

The target market for this is the Industry and the Hotels.

This video describes the new Daikin McQuay Magnitude 550 Ton Centrifugal Chiller.

It positions itself as an energy efficient machine which is reliable and les space

consuming yet efficient. This is also positions itself as an environmental friendly

product which does not deplete the Ozone and thus caring for the environment which

will help customers to get certified as a Green Building.

It also differentiates itself from the rest by the use of latest technology and the ease of

use and maintainence.

This is launched when the market for chillers has reached its maturity stage and thus

Daikin acquired Mc Quay.


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RESEARCH OBJECTIVE

To understand the Market Attractiveness Evaluation

Market sizing - estimating the size of a total market, how much is

accessible by the business, and/or what market share ambitions would be

realistic.

Competitive presence and customer preference.

Channel trends, preferences, and allegiances.

To identify areas where there can be scope for improvement.

To understand customer needs, aspirations, buying behaviors, usage patterns,

decision models, preferences, favorability, intentions, etc

SCOPE OF THE STUDY

To define the process and activities while market analysis, research, stratergies and

techniques of an organization. Every task is undertaken with an objective. Without

any objective a task is rendered meaningless.


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RESEARCH METHODOLOGY

Research methodology stands for the ways & means that we adopt for conducting

research. In this we study the various steps that are generally adopted by a researcher

in pursuing the research.

Research methodology consist of enunciating the problem, formulating the

hypothesis, collecting the facts of data, analyzing the fact and reaching certain

conclusion either in the form of solutions towards the concerned problem or in the

form of certain generalizations for some theoretical formulation.

Type of Data Collected

There are two types of data used. They are primary and secondary data. Primary data

is defined as data that is collected from original sources for a specific purpose.

Secondary data is data collected from indirect sources.

Primary Sources: These include the survey or questionnaire method, telephonic

interview as well as the personal interview methods of data collection.

Secondary Sources: These include books, the internet, company brochures, product

brochures, the company website, competitors websites etc, newspaper articles etc.

Sampling: Sampling refers to the method of selecting a sample from a given universe

with a view to draw conclusions about that universe. A sample is a representative of

the universe selected for study.

Sample Size: The sample size for the survey conducted was 80 respondents.


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Sampling Technique: Random sampling technique was used in the survey

conducted.

Plan of Analysis: Tables were used for the analysis of the collected data. The data is

also neatly presented with the help of statistical tools such as graphs and pie charts.

Percentages and averages have also been used to represent data clearly and

effectively.

Data Source

Primary Data : Through Questionnaires

Secondary Data : Through Internet, Journals, News papers.

Data Collection Procedure : Survey

Research Instrument : Structured Questionnaire.

Sample Size : 80

Sample Area : Work has done in Delhi/NCR Office.

Sample Procedure : Random sampling. Target Audience : Marketing officials / channel members/

customers

These will be some of the sources through which up-to-date and relevant data will be

collected. The information gathered will be tabulated and presented in the final report.


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DATA ANALYSIS AND INTERPREATATION

ANALYSIS ON THE BASIS OF SALES

The market survey showed that the sales volume of Daikin is the highest followed by

Lg, whirlpool, Hitachi, national, carrier Voltas and then Ogeneral.

40%

13%5%8%

9%

9%

12%4%

ANALYSIS ON THE BASIS OF SALES

daikin

lg

voltas

carrier

national

hitachi

whirlpool

ogeneral


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QUALITY OF AIR CONDITIONERS

Hitachi serves as the top leader in providing best quality to its customers, followed by

national and then Daikin.

15%

10%

8%

9%20%

30%

8% 0%

QUALITY OF AIR CONDITIONERS

daikin

lg

voltas

carrier

national

hitachi

whirlpool

ogeneral


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CUSTOMER CONSIDERATION OF PRICE

According to the market survey conducted 20 customers considered price as a major

determinant while buying Daikin air conditioners, whereas 5 does not give price the

same weightage.

0

5

10

15

20

25

YES NO

NO.OFCUSTOMERS

CUSTOMER RESPONSE

CUSTOMER CONSIDERATION OF PRICE

CUSTOMERRESPONSE


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POSITIONING OF DAIKIN AIR CONDITIONER IN THE

MARKET

Amongst the dealers surveyed 41 % agreed that the positioning of Daikin air

conditioner in the market is excellent whereas 33 % feels that it is good , & 13 % says

that is satisfactory as well as poor.

41%

33%

13%

13%

POSITIONING DAIKIN AIR CONDITIONERS

Excellent

GoodSatisfactory

Poor


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MAINTAINENCE OF GOOD PUBLIC RELATION

According to the market survey conducted, About 84 % of the correspondent say that

Daikin maintains a good public relation with its dealers whereas 16 % does not have

the same response.

0%10%20%30%40%50%60%70%

80%90%

YES NOPERCENTAGE

OFDE

ALERS

DEALER'S RESPONSE

MAINTAINENCE OF GOOD PUBLIC RELATION

dealer's response


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INSTALLATION AND OPERATION

According to the market survey conducted, Hitachi leads the market in providing

services in terms of installation & operation followed by Daikin, lg, carrier, whirlpool,

national, Voltas and then ogeneral.

24%

11%

4%10%5%

40%

5%1%

INSTALLATION AND OPERATION

daikin

lg

voltas

carrier

national

hitachi

whirlpool

ogeneral


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ADOPTION OF VARIOUS PROMOTIONAL TOOLS

Advertisement is regarded as one of the major promotional tools with a share of 56 %

followed by sales promotion, personal selling and direct marketing

56%

9%

5%

30%

ADOPTION OF VARIOUS

PROMOTIONAL TOOL

advertisement

personal selling

direct marketing

sales promotion


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MAINTAINENCE OF SUFFICIENT NETWORK

Amongst the dealers surveyed 82 % said that Daikin maintained a suffient network

whereas while 18% provided negative response.

82%

18%

MAINTAINENCE OF SUFFIENT NETWORK

YES

NO


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FINDINGS

The major findings of the research includes -

1. The brand awareness of Daikin air conditioners is very high. in this respect

Daikin have a better standing in the market as compared to other brands like

general. As a result it caters to a large market share in the air conditioner

market.

2. The dealer network of Daikin is very strong. This implies that Daikin

maintains a good public relation with its dealers and in turn receives a good

promotional leverage from its dealers.

3. The quality rating of Daikin is not high. in this respect brands like Hitachi,

national have better rating in the market.

4. Brand positioning of Daikin air conditioner is good i.e. the position in the

minds of the consumer is quite appreciable.

Individual findings for questionnaire are: -

Percentage of market share

Daikin serves as the market leader with highest sales volume & contributed to the

affordable price of Daikin air conditioners.

Best quality

Hitachi is providing the best quality air conditioners with a total share of 30 % as

compared to Daikin with the share of 15 %. .


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Consideration of price while buying Daikin A.C

About 80% of the respondent claimed that customers do consider the price of Daikin

air conditioners while buying, whereas 20% says that it does not affect their purchase

decision.

Positioning of Daikin A.C in the market

According to the survey conducted, the dealers of Delhi were interviewed it was

found that 41% rates the positioning of Daikin A.C as excellent, 33% claimed it as

good, where as 13% say that it is satisfactory 13% say it is poor.

Maintenance of good public relations with dealers

The survey conducted in Delhi shows that 84% of the dealers say that Daikin is

maintaining good public relations with its dealers, where as only 16% of dealers say

that it is not maintaining good public relations.

Provision of services in terms of installation and operation

Hitachi once again as serves out to be best in providing services in terms of

installation and operation followed by Daikin, L.G, Carrier and then National.

Adoption of various promotional tools

The most popular promotional tool is Advertising with total share of almost 56%

followed by sales promotion with a share of 30%. Further personal selling and direct

marketing being at 9% and 5% respectively


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Maintenance of sufficient network

The percentage of respondent who claim that Daikin maintains a good & sufficient

network with its dealers is about 82% and only 18% feels that Daikin does not

maintain a sufficient network.


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LIMITATION

The study had the following limitation mainly in the survey work that was done.

1. The survey sample is only from a small geographical area, a few dealers in

Delhi. This may result in the sample not being true representation of the entire

market for air conditioners.

2. While all attempts have been made to keep the survey free of the bias. There

may be bias introduced in a few interviews.

3. The survey was limited to few dealers, which form only a part of the entire

market, it would have been more but due to the non-cooperation dealers the

number is less.


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RECOMMENDATION

1. Improvement in quality

The company should try to position itself as a brand, which is not only affordable but

also provides good quality air conditioners to its customers, which will create brand

loyalty in their minds.

2. Brand Positioning Through Advertisement

An advertisement in electronic medium is one of the popular medium. The

companies have always been looking forward to as it reaches its wider audience &

can create a stronger brand appeal.

The company can always announce various incentives & schemes during the

commercials. For example, free passes for a film premiere or free installation services

from the company on first come first served basis.

Also it can feature its one of its distinguishing service that makes it a foot ahead of its

competitors for example Voltas has used any time service advertisements to make a

strong brand image in the minds of the consumers.

Using a brand ambassador is another good idea to promote the brand name of air

conditioner

Dealers

For dealers the company can resort to one of the following ways to increase the sales:

1. The company should conduct separate workshops for the sales representatives

of these dealers about various Daikin products.

2. Increase dealers margins & offer better schemes to these dealers to receive

good promotional leverage.


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Provision of schemes & offers

The company is well placed amongst its competitors as the survey results showed that

it is best & most preferred air conditioner. So the company should try to maintain and

enhance this position by giving more value to the customers and offering special

replacement schemes. Also the company should make provisions regarding various

financial schemes available to its customers, special off season discounts e.t.c.


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BIBLIOGRAPHY

Books Consulted

Journal of Marketing April 2002, Volume 66

Kothari, C.R. Research Methodology, (2002), Wishwa Publication

Kotler, Philip Marketing Management (2002), Pearson Education

(Singapore)

Web Sites visited: -

www.indiainfoline.com

www.Daikin.com

www.google.com

www.indiatimes.com
http://www.indiainfoline.com/http://www.samsung.com/http://www.google.com/http://www.indiatimes.com/http://www.indiatimes.com/http://www.google.com/http://www.samsung.com/http://www.indiainfoline.com/


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ANNEXURE

Questionnaire

NAME OF THE DEALER: _________________________________

ADDRESS OF THE DEALER: _________________________________

CONTACT NO: _______________________________________

Q1. How many air conditioners do you sell?

20

20 - 50

50 - 70

70 - 100

Above 100

Q.2 Which brands of air conditioners do you sell?

DAIKIN

LG

VOLTAS

CARRIER

NATIONAL

HITACHI

OGENERAL


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Q.3 Which companies do you think is providing the best quality air conditioners?

DAIKIN

LG

VOLTAS

CARRIER

NATIONAL

HITACHI

OGENERAL

Q.4 how would you rate the positioning of Daikin air conditioners?

Excellent

Good

Satisfactory

Poor

Q.5 Is Daikin maintaining good public relation with its dealers?

Yes

No

Q.6 Which company would you rate the best in providing services in terms of

installation & operation?


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DAIKIN

LG

VOLTAS

CARRIER NATIONAL

HITACHI

OGENERAL

Q.7 Do you think Daikin has sufficient network as compared to its competitor?

Yes

No

Q.8 give your suggestion in improving the sale of air conditioners?

_____________________________________________________________________

_____________________________________________________________________

_____________________________________________________________________

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120035738 Market Analysis of Daikin Air Conditioners

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Transcript of 120035738 Market Analysis of Daikin Air Conditioners