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Summer Internship Project Report
On
Analyze And Determine Consumer Buying Behavior for Hitachi Air-
Conditioner
Prepared By: - Abhijit Khuntia
Regd No-
(MBA 2022-24)
Under The Guidance of: -
Prof. (OSD) Samir Ranjan Panda Mr. Sunil
Department Of Business Administrattion,GIFT (Office Manager)
GANDHI INSTITUTE FOR TECHNOLOGY, (AUTONOMOUS) BHUBANESWAR.
ii DECLARATION I hereby declare that the Summer Training Report entitle “analyze and determine consumer buying behavior for Hitachi air-conditioner “is an authentic record of my own work as requirements of 8 weeks Summer Training during the period from June to August for the award of degree of MBA (Master of Business Administration, Gandi Institute of Technology, Bhubaneswar under the guidance of (OSD) Samir Ranjan Panda. Date Signature of student Name of Student Roll No.
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- CHAPTER 1: INTRODUCTION & COMPANY PROFILE...................................................................... TABLE OF CONTENTS - 1.1 INTRODUCTION........................................................................................................................... - 1.1.1 HISTORY OF AIR CONDITIONERS......................................................................................... - 1.1.2 INTRODUCTION OF AIR CONDITIONER.............................................................................. - 1.1.3 ANALYSIS OF AIR CONDITIONER INDUSTRY.................................................................... - 1.2 COMPANY PROFILE.................................................................................................................. - 1.2.1 SWOT ANALYSIS....................................................................................................................
- CHAPTER 2: JOB DESCRIPTION..........................................................................................................
- 2.1 JOB DUTIES AND TASKS............................................................................................................
- 2.2 JOB ACTIVITIES...........................................................................................................................
- 2.3 JOB SKILLS...................................................................................................................................
- 2.4 JOB ABILITIES.............................................................................................................................. - 2.4.1 JOB KNOWLEDGE, EXPERIENCE, EDUCATION..............................................................
- 2.5 JOB DESCRIPTION AT HITACHI................................................................................................
- CHAPTER 3: ANALYSIS OF JOB DONE..............................................................................................
- 3.1 AIR CONDITIONERS....................................................................................................................
- CHAPTER 4: LEARNING OUTCOMES.................................................................................................
- CHAPTER: 5 RECOMMENDATIONS & FINDINGS............................................................................
- 5.1 FINDINGS......................................................................................................................................
- 5.2 RECOMMENDATIONS.................................................................................................................
- LIMITATIONS & CONCLUSIONS.........................................................................................................
- ANNEXURE.............................................................................................................................................
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TABLE OF INDEX
TABLE 1: PREFERRED BRAND OF AIR CONDITIONER..................................................... 22
TABLE 2: PREFERRED PRICE RANGE WHILE BUYING AN AC........................................ 23
TABLE 3: TYPE OF AC PREFERRED....................................................................................... 24
TABLE 4: PREFERRED CAPACITY OF AC............................................................................. 25
TABLE 5: KEY FACTORS CUSTOMERS LOOKS FIRST WHILE BUYING AN AC........... 26
TABLE 6: RELATIONSHIP BETWEEN GENDER AND KEY FACTORS WHILE BUYING
AN AC........................................................................................................................................... 27
TABLE 7: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS
PERFORMANCE.......................................................................................................................... 29
TABLE 9: RELATIONSHIP BETWEEN PREFERRED BRAND OF AC AND ITS VALUE
ADDED SERVICES..................................................................................................................... 32
TABLE 10: COMPARATIVE RANKING OF AC COMPANIES.............................................. 34
A good amount of qualitative information is gathering from this study. In the
second phase, gathered a good idea of sales and customers behaviors in the retail
outlets. Some part of my project also included handling customer’s calls, stock
handling, demonstrations and installations booking. In the third phase, a structured
questionnaire was been generated to find out the brand awareness of the customer
and their most preferred brands in those two particular segments and along with
their buying behavior, which was also a part of the study
The major findings that emerged from the analysis were that Hitachi ranked second
when it comes to brand preference in air Conditioners but ranks lower in after sales
services. In addition, price, quality and brand image emerged out as significant
factors for air Conditioner and refrigerator purchase. Most the customers who prefer
Hitachi, they are mostly premium customers. Customers prefer Hitachi as a brand
because Hitachi gives some value addition in retail selling compared to its
competitors.
Based on above findings it can be conclude that Hitachi has improved in brand
awareness among retailers and customers but it is yet to surpass Voltas in the
competitive market. Also sales team visits, ordering and after sales are a matter of
concern that can cause great loss to the company in future, if not corrected. The
actions recommended broadly include strengthening distribution network.
Improving incentives to sales forces and strengthening retail network of Hitachi.
CHAPTER 1: INTRODUCTION &
COMPANY PROFILE
Carrier’s invention made many technologies possible, especially in fields that required highly controllable environment such as medical and scientific research, product testing etc. Carrier claimed that while he was standing in a Pittsburgh train in 1902, he realized that saturating it with chilled water to induce condensation could dry air. Willis Carrier is known as the father of air conditioners. In 1928, Carrier developed first residential “Weatherman”, an AC unit for private houses.
1.1.2 INTRODUCTION OF AIR CONDITIONER
Air conditioning is the conditioning of air within a defined space, usually a residence or a place of business. Conditioning usually involves heating or cooling, humidifying or dehumidifying, and filtering or cleaning air. In a central air conditioner, the system cools and dehumidifies the defined space. Heating is accomplished by an add-on to the system (such as an electric heat strip) or by a separate unit, such as a furnace. There are four basic air conditioner types: window units, through-the-wall units, portable units and completely house/central air units. Window units come in models made for double-hung windows, sliding windows and casement windows. Through-the-wall and central air units require professional installation. Portable units are not typically as effective as window air conditioners and are best used only in situations where fitting into a window is not an option. Window air conditioners are very simple appliances. They operate on the exact same principles as a refrigerator, freezer, or dehumidifier. Cooling : All residential window air conditioners have a cooling system made up of four primary components, a compressor, an evaporator, a metering device, and a condenser. Air conditioner cooling systems are better understands if you think of them as devices that remove warmth from the air rather than cooling the air.
Blower fan: When the unit is running, the circulating fan and compressor are running simultaneously. The fan motor has two fan blades attached to it on either end. The fan blade on the inside part of the unit continually draws room air over the evaporator coils, which are cold. The fan blade on the outside part of the unit continually draws fresh outside air over the condenser coils, which are warm. Because the evaporator coils are cold, they cause moisture in the room to collect on them, much like a cup of ice water on a warm, humid day. When the amount of moisture increases, it begins to drip down off the coils into the bottom pan of the air conditioner. Thermostat Control : The thermostat on a window air conditioner works by sensing the air temperature entering the air conditioner. As the air, entering the unit reaches the set temperature it will cause the compressor to turn off. The blower may continue to run depending on the selection chosen on the control panel. Digital thermostats work on a similar principle but display a more precise temperature. Selector switches : The air conditioner selector switches allow the user to choose the fan speed. The compressor always runs at the same speed regardless of the settings. If low cool is, choose, for example, the fan runs at a slower speed but the compressor still offers the same cooling capacity Central air conditioners are split systems: an outdoor unit (the condenser unit) and an indoor unit (air handler). The function of an air conditioner is to transport heat from one station to another. The vehicle your system uses to carry the heat is calls a refrigerant, commonly referred to as Freon. The compressor in outdoor unit changes the refrigerant (or "Freon") into a high temperature, high pressure gas. As that gas flows through the outdoor coil, it loses heat and condenses into a high temperature, high pressure liquid. This liquid refrigerant travels through copper tubing into the evaporator coil. There the refrigerant expands. Its sudden expansion turns the refrigerant into a low temperature, low-pressure gas. This gas then absorbs heat from the air circulating in the ductwork. The cooled air is then distributes back through your house or place of business. Meanwhile, the heat absorbed by the refrigerant is carries back outside through copper tubing and released into the outside air.
Economic environment: Abatement from retail price for levy of excise duty on air conditioners lowered from 35 to 30% Increase in excise duty of raw materials like steel from 12% to 16% will adversely affect air conditioner manufacturers. With lowering of duties on newer product categories, air conditioners are now position as a retail product. Earlier with retail price of nearly 40,000, it stood no chance against say a CTV costing Rs15, 000. Industry has been seasonal in nature with four months (March to June) generally accounting for 60-65% of total annual sales. Social environment: Rising disposable income and reducing prices are slowly making ACs a necessary utility as opposed to being view as a luxury item. Increased spending on lifestyle related products and the increasing SOHO segment are increasing the demand for ACs. Increasing concern for environment and health consciousness will make people buy more eco-friendly products. Technological environment: Product technology: The key component of air conditioners, compressor (30% of cost) is of two types i.e. reciprocating and rotary. Rotary compressors accounting for 66% of the total market Split ACs are major users of rotary compressors now dominate the Indian Ac market. Rotary compressor has the advantage of being energy efficient, less noisy and abuse proof India has two manufacturers, Tecumseh India and Kirloskar Copeland for reciprocating compressors. Rotary compressors are presently imports from China, Malaysia, Japan and Thailand. Window ACs range from 0.6T to 2T. They are ideal for small space like individual rooms in an office or residence. Split Air Conditioners have good aesthetic features and indispensable in rooms without windows.
Process technology: The industry intrinsically is highly capital intensive and has massive appetite for capital cost as well as working capital while a normal 0.1-0.15 Million assembly plant costs 500 Million (without compressor line), working capital cycle is 90 days. With high operating costs (around 800-1000), technology especially on power savings is a key advantage and market differentiator. FIGURE 1: MARKET SHARE OF SPLIT AC VS WINDOW AC IN INDIA 1 Star 2 Star 3 Star 4 Star 5 Star 0 10 20 30 40 50 60 70 Window Split type
Communicate daily status to Coordinator about Sales & Attendance.
CHAPTER 2: JOB DESCRIPTION
- Set up and arrange displays and demonstration areas to attract the attention of prospective customers.
- Wear costumes or signboards and walk in public to promote merchandise, services, or events.
- Work as part of a team of demonstrators to accommodate large crowds.
- Suggest specific product purchases to meet customers' needs.
- Instruct customers in alteration of products.
- Learn about competitors' products and consumers' interests and concerns in order to answer questions and provide more complete information.
- Recommend product or service improvements to employers.
- Fully be aware of Target and track weekly achievement Vs. Target in both Unit and Amount.
- Work with customers to present them the benefits and competitive advantage of products.
2.2 JOB ACTIVITIES
- Performing for or Working Directly with the Public -- Performing for people or dealing directly with the public. This includes the Retail Sailing Solutions: Build Relationship Connect Explore Create Experience Close
- Selling or Influencing Others -- Convincing others to buy merchandise/goods or to otherwise change their minds or actions.
- Communicate with Persons outside Organization -- Communicating with people outside the organization, representing the organization to customers, the public, government, and other
external sources. This information can be exchange in person, in writing, or by telephone or e- mail.
- Establishing and Maintaining Interpersonal Relationships -- Developing constructive and cooperative working relationships with others, and maintaining them over time.
- Interpreting the Meaning of Information for Others -- Translating or explaining what information means and how it can be uses.
- Organizing, Planning, and Prioritizing Work -- Developing specific goals and plans to prioritize, organize, and accomplish your work.
- Handling and Moving Objects -- Using hands and arms in handling, installing, positioning, and moving materials, and manipulating things.
2.3 JOB SKILLS
- Speaking -- Talking to others to convey information effectively.
- Persuasion -- Persuading others to changes their minds or behavior.
- Active Listening -- Giving full attention to what other people are saying, taking time to understand the points being made, asking questions as appropriate, and not interrupting at inappropriate times.
- Social Perceptiveness -- Being aware of others' reaction and understand why they react as they do.
- Instructing -- Teaching others how to do something.
- Critical Thinking -- Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems.
- Active Learning -- Understanding the implications of new information for both current and future problem-solving and decision-making.
- Learning Strategies -- Selecting and using training and instructional method and procedure appropriate for the situation when learning or teaching new things.
- Complex Problem Solving-- Identifying complex problems and review relates information to develop and evaluate options and implement solutions.
- Service Orientation -- Actively looking for ways to helps customers.
