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 be
hind the thesis is to know about the consumer preference for the product when ot
her 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 co
rrelation between the income groups and their purchase of Daikin air conditioner
s. 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 promotiona
l leverage to some brand of air conditioners. They also give more the shelf spac
e to those products as the shelf space is directly correlated with the kind of m
argins 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 giv
en 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 Chan
drawat hereby approved and the topic registration id number is DF/09/11-M-314 Ma
ke it a comprehensive thesis by ensuring that all the objectives as stated by yo
u in your synopsis are met using appropriate research design; a thesis should ai
m 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 boddu.vijay@iipm.e
du Ph.-011- 42789878 before the thesis submission is
NB: 1) A thesis would be rejected if there is any variation in the topic/title f
rom 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 Internati
onal Campus, Satbari, Mehrauli-Chattarpur Road, Delhi, India Phone: 91.11.427899
19, 30168408 e-mail: ramakar.jha@iipm.edu; web: www.iipm.edu,
3
THESIS SYNOPSIS
Name: Nitin Gupta Section: FP1 Batch: PGP- Fall-Winter- 09/11 Specialization: Ma
rketing & HR Phone No: +91- 9910705323 Email ID: GNITIN19@GMAIL.COM
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 th
e size of a total market, how much is accessible by the business, and/or what ma
rket share ambitions would be realistic. Competitive presence and customer prefe
rence. Channel trends, preferences, and allegiances. To identify areas where the
re can be scope for improvement. To understand customer needs, aspirations, buyi
ng behaviors, usage patterns, decision models, preferences, favorability, intent
ions, etc
4
LITERATURE REVIEW: Market analysis is to determine the attractiveness of a marke
t 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 pa
rticular data collection method that you use during your market research depends
very much on the particular information that you are seeking to understand. Oth
er steps follow
Identify opportunities to serve various groups of customers Examine the size of
the market Market growth rate and profitability Investigate the competition Clar
ify your unique value proposition
SCOPE: Why in the particular period of Time Company haring more sales profession
al. Why Employs left the organization, why not continue longer period of time. W
hat is the factor affecting the employs so that, they work with longer period of
time with our organization. RESEARCH METHODOLOGY Data Source Primary Data Secon
dary Data Data Collection Procedure Research Instrument Sample Size Sample Area
Sample Procedure : : : : : : : Through Questionnaires Through Internet, Journals
, News papers. Survey Structured Questionnaire. 80 Work has done in Delhi/NCR Of
fice. Random sampling.
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 Target Audience customers
:
Marketing officials / channel members/
These will be some of the sources through which up-to-date and relevant data wil
l 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, r
esearch, 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 Training Needs Assessment
and Development of a Training Calendar with Ambuja Cements Limited. I was direct
ly involved in studying the need and requirement that the company has in terms o
f training of its employees. Also understood the importance of a Training calend
ar, 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 Designation Qualification Company Name : MR.
SHRIJIT CHANDRAWAT : SENIOR MARKETING MANAGER : MBA - Marketing : DAIKIN AIR CON
DITIONING INDIA PVT. LTD
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ACKNOWLEDGEMENT
In a cooperative Endeavour there are many personalities to whom special acknowledg
ement is due because of their special contribution, enlightened suggestions duri
ng the various stages of report. Without their cooperation & encouragement. I co
uld never be able to give a monograph. It is well-established fact that behind e
very achievement lays an unfathomable sea of gratitude to those who have extende
d 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 w
ork on this thesis as a part of the curriculum. I would also like to thank Mr. R
amakar Jha for his guidance and support.
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TABLE OF CONTENT
ABSTRACT .......................................................................
............................................ 2 TOPIC APPROVAL LETTER ...........
........................................................................... 3 SY
NOPSIS .........................................................................
............................................ 4 ACKNOWLEDGMENT...................
............................................................................. 7
TABLE OF CONTENTS ..............................................................
................................. 8
INTRODUCTION ...................................................................
..................................... 9 COMPANY PROFILE ........................
........................................................................ 13 REVI
EW OF LITERATURE ...............................................................
....................... 24 RESEARCH OBJECTIVES ........ 30 RESEARCH METHO
............................................................ 31 DATA ANALYSIS AN
D INTERPRETATION.. ... 33 FINDINGS .............................................
......................................................... 41 LIMITATIONS .......
................................................................................
..................... 44 RECOMMENDATION ........... 45 BIBLIOGRAPHY ....
................................................................... ...47 ANNEXU
RE..............................................................................
.................................. 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 weak
nesses of the firm. Market analysis has a variety of purposes and a variety of d
ata collection methods might be used for each purpose. The particular data colle
ction method that you use during your market research depends very much on the p
articular information that you are seeking to understand. Other steps follow Ide
ntify 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 plans designed to fill market needs and reach marketing objectives.
Plans and objectives are generally tested for measurable results. Commonly, mar
keting strategies are developed as multi-year plans, with a tactical plan detail
ing specific actions to be accomplished in the current year. Time horizons cover
ed by the marketing plan vary by company, by industry, and by nation, however, t
ime horizons are becoming shorter as the speed of change in the environment incr
eases. Marketing strategies are dynamic and interactive. They are partially plan
ned and partially unplanned. The field of marketing strategy encompasses the str
ategy involved in the management of a given product. A given firm may hold numer
ous products in the marketplace, spanning numerous and sometimes wholly unrelate
d industries. Accordingly, a plan is required in order to effectively manage suc
h 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 reach
ing the end of its life-cycle. Thus, the issue of divest, or a ceasing of produc
tion, may be made. Each scenario requires a unique marketing strategy. Listed be
low are some prominent marketing strategy models. A marketing strategy differs f
rom a marketing tactic in that a strategy looks at the longer term view of the p
roducts, goods, or services being marketed. A tactic refers to a shorter term vi
ew. 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 st
rategy. Marketing is defined in various ways by different people. The most suita
ble to the present context is all the activities involved in moving products and
services from the source to the end user, including advertising, sales, packagin
g, 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 asp
ects of society may include local, national and international patterns of relati
onships. People belong to informal and formal groups, and within and between the
se 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 a
nd achieve a sustainable competitive advantage. A marketing strategy is most eff
ective when it is an integral component of corporate strategy, defining how the
organization will engage customers, prospects and competitors in the market aren
a for success. It is partially derived from broader corporate missions, and corp
orate goals. They should flow from the firm's mission statement. They are also i
nfluenced by a range of environmental factors. A good marketing strategy should
integrate an organization's marketing goals, policies, and action sequences (tac
tics) into a cohesive whole. Many companies cascade a strategy throughout an org
anization, 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 devel
op a set of tactics to achieve that goal. This is why it is important to make ea
ch strategy goal measurable. Every marketing strategy is unique, but if we abstr
act from the individualizing details, each can be reduced into a generic marketi
ng 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 ba
sed 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 st
rategic strength. Strategic scope refers to the market penetration while strateg
ic strength refers to the firms sustainable competitive advantage. Cost leadershi
p Product differentiation Market segmentation
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Innovation strategies - This deals with the firm's rate of the new product devel
opment and business model innovation. It asks whether the company is on the cutt
ing edge of technology and business innovation. There are three types: Pioneers
Close followers Late followers Growth strategies - In this scheme we ask the que
stion, How should the firm grow?. There are a number of different ways of answerin
g that question, but the most common gives four answers: Horizontal integration
Vertical integration Diversification Intensification A more detailed schemes use
s the categories: Prospector Analyzer Defender Reactor The objective of many mar
keting 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 manufactu
ring of commercial and industrial air-conditioning systems. Being the world's so
le manufacturer capable of developing a full line of dynamic products from refri
gerants to air-conditioners, Daikin has built a well-established and strong pres
ence in Japan, China, Southeast Asia, Europe as well as North America.
Pioneering products include the first packaged air-conditioner in Japan 1951, an
d 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 Gro
up 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 prod
ucts and services. The Group also places much emphasis on "the fusion of the glo
bal environment and business management".
In all aspects of its business operations, Daikin applies environmentally-friend
ly practices, and actively promotes the development of new products and inventiv
e 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 I
ndustries Ltd., Japan, a global leader in the manufacturing of commercial-use an
d residential air conditioning systems. Backed by the superior technology, the o
rganization offers a wide range of energy efficient air conditioning solutions t
o the Indian customers. It has been successfully offering premium air conditioni
ng solutions in the Indian market for large-scale projects. Robust growth is for
ecasted in Indias air-conditioning market in the future and Daikin intends to fur
ther increase its market share of residential and large-scale projects. Daikin I
ndia Network 11 branch offices (sales & service) 13 resident offices 4 mother w
rehouses 17 supporting warehouses Daikin Solution Plaza (DSP) - 68 Channel Partn
ers - 1045 Authorized Service Providers (ASP) 92
Daikin India Vision & Mission Vision Come first in customers mind as the most tru
sted air-conditioner brand
Mission To contribute to the society by providing the most advanced air-conditio
ning solutions To ensure continuous customer satisfaction To establish Daikin Br
and 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 Anticipatin
g the Future Needs of Customers
Our mission, and the essence of our existence, is to identify and realize our cu
stomer'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 i
n social trends and conducting extensive marketing to win the hearts and minds o
f customers. It is essential that we offer customers optimum convenience and com
fort that are always one step ahead of our competitors by providing customers wi
th the highest quality products, materials, and services for which we, as a manu
facturer, will be absolutely responsible. Moreover, we will continue offering pr
oducts and services that provide customers with fresh excitement and continued e
njoyment. We furthermore believe that these activities are an important source o
f 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 poss
esses world-leading technologies. Along with increasing our market share and cre
ating new markets, we must devote ourselves to strengthening our technological f
oundation since this enables us to continuously launch highly differentiated pro
ducts, 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 te
chnologies 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 manage
ment based on the mandates of capitalist philosophy.
Enhanced corporate value offers us a greater range of management options, enabli
ng us to realize new growth and making possible the establishment of a stable ye
t flexible management foundation. Moreover, enhanced corporate value provides in
creased 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 m
aking contributions to the local communities in which we are based. We firmly be
lieve 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 multi
national company group that is substantially expanding its operations in every r
egion of the world, including Japan, we must propose, examine, and then implemen
t strategies and policies from a global point of view.
Therefore, we aim to systematically foster human resources appropriate to the pa
rticular 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 re
sources 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 trans
fer of know-how throughout the Group, individual Group companies must strive to
develop and expand their respective business operations, thereby enabling the en
tire Group to enjoy synergetic effects.
The specific roles of Daikin Industries and the individual Group companies are n
ot fixed. These roles can be changed or adapted to flexibly respond to the parti
cular 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 ba
se, Group companies must contribute to the development of the entire Group by al
igning their visions and enhancing their individual capabilities, while fulfilli
ng their own roles and responsibilities and introducing new proposals. Moreover,
individual Group companies know best about the conditions particular to each co
untry and region. Based on our fundamental Group policy, each Group company is e
xpected to demonstrate autonomy and flexible action by promoting twoway communic
ation between themselves and Daikin Industries through information sharing about
their specific business fronts. Build Friendly yet Competitive Relations with O
ur 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 oth
er toward improvement and, from within their own roles, fulfill each other's exp
ectations 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 m
ission to proactively develop initiatives to respond to environmental issues. In
corporating environmental initiatives throughout our management must be a priori
ty for us. In all aspects of our business operations, including product developm
ent, manufacturing and sales, we need to formulate initiatives that sustain and
improve the environment. Meanwhile, we need to promote the development of new pr
oducts and the innovation of technologies that will lead to a more environmental
ly healthy world. Under the precept "environmental response is an important mana
gement resource," we must integrate environmental initiatives into our corporate
management since they can lead to business expansion, improved business perform
ance, and further enhancement of our credibility with outside parties. We intend
to continue being a leading company in the practice of "environmental managemen
t," 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 deli
vered - 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, mark
eting, sales & servicing of air-conditioning systems and spares through: 1. Depl
oying Group Management Philosophy & Environment guidelines 2. Adapting procedure
s for refrigerant handling, resource conservation and waste management 3. Improv
ing 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 Ser
vices. 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 I
nformation. 7. Preservation of the Environment. 8. Ensuring the Safety of Operat
ions. 9. Respect for Human Rights Diversity in the Workplace and Observance of L
abor Laws. 10. Protection of Company Assets. 11. Proper Handling of Accounting P
rocedures. 12. Practising Moderation in Entertainment and Gift Exchanges. 13. Ma
intaining 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.Flexibi
lity in installation 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, Deodoris
ing
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SWOT ANALYSIS
Swot (strength, weakness, opportunity & threat) analysis of Daikin air condition
ers. 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 f

acility Product design

Weakness Low quality as compared to other brands Little presence in A class area

Opportunity Large market potential Wide production portfolio Consumer willingnes

s 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 (d
ealer network).
The centralized air-conditioning systems, the VRV (aircooled and watercooled) an
d 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
the residential 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
airconditioning space, plans to sell 300,000 room air-conditioners (ACs) this ye
ar.
While the heating, ventilation, and air-conditioning (HVAC) system market in Ind
ia is growing at a compounded annual growth rate of 15 per cent, the room AC seg
ment is clocking a 30 per cent growth rate.
"We have a product offering that starts from 0.8 tonnes to 2700 tonnes. We can o
ffer 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 laun
ch of 20 new products across residential, light commercial and commercial segmen
ts we are aiming the number one slot in the air-conditioning market in India ove
r a few year's time.", said Kanwal Jeet Jawa, managing director, Daikin India. D
aikin 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 ai
r conditioning (AC) market. The company plans to enter the Indian market with th
e 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 a
nd Raipu We are planning to enter the residential AC market and are here to compe
te with the existing players in the market, mainly Toshiba, said Kanwal Jeet Jawa
, deputy managing director and chief operating officer. The company recently par
tnered with
25
Gree, the Chinese AC major, and will be using their resource base for the furthe
r 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 co
nsolidated turnover of around $13 billion or Rs 58,500 crore, has decided to ram
p 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 spac
e in India, which is growing rapidly, said Jawa.
Daikin Industries is headquartered in Japan and has 95 subsidiaries in its netwo
rk. The company is a global leader, second to Carrier in the manufacturing of AC
s for commercial-use.
26
COMMERCIALS AIRED ON TV TARGETING THE CONSUMER: Segmentation and Targeting: Prem
ium 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 comman
ding a heavy premium in the Indian airconditioner market. The ad also won recogn
ition at Cannes Advertising Festival, Ad Club of India and the Effie Awards. Thi
s advertisement was launched between the end of the introduction phase and befor
e 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 an
d thus differentiates itself from the rest. This advertisement was launched duri
ng 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 t
he fact that it makes no noise in operation. This adverisement was launched duri
ng the growth phase
27
4.
Daikin 4(lifestyle):
This ad differentiates Daikin by way of the fact that inspite of the various lif
estyles that people lead, it fits into their lifestyle wherever they may go. Thu
s it gives a strong message that it is a distinguishing brand and that the custo
mers 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 residentia
l ACs (0.75-1.8 tonne) which will go by the FTE name. This is possible because D
aikin 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. I
t 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 soun
d 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.
28
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 s
ystem 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 flexi
ble product that takes care of all the customer needs.The company projects itsel
f as one which develops and uses the highest technologies. This Video was launch
ed 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 an
d the Hotels. This video describes the new Daikin McQuay Magnitude 550 Ton Centr
ifugal Chiller. It positions itself as an energy efficient machine which is reli
able 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 Buildi
ng. 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 chill
ers has reached its maturity stage and thus Daikin acquired Mc Quay.
29
RESEARCH OBJECTIVE

To understand the Market Attractiveness Evaluation Market sizing - estimating th

e size of a total market, how much is accessible by the business, and/or what ma
rket share ambitions would be realistic. Competitive presence and customer prefe
rence. Channel trends, preferences, and allegiances. To identify areas where the
re can be scope for improvement. To understand customer needs, aspirations, buyi
ng behaviors, usage patterns, decision models, preferences, favorability, intent
ions, etc

SCOPE OF THE STUDY To define the process and activities while market analysis, r
esearch, stratergies and techniques of an organization. Every task is undertaken
with an objective. Without any objective a task is rendered meaningless.
30
RESEARCH METHODOLOGY
Research methodology stands for the ways & means that we adopt for conducting re
search. In this we study the various steps that are generally adopted by a resea
rcher 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 th
e concerned problem or in the form of certain generalizations for some theoretic
al formulation.
Type of Data Collected There are two types of data used. They are primary and se
condary data. Primary data is defined as data that is collected from original so
urces for a specific purpose. Secondary data is data collected from indirect sou
rces.
Primary Sources: These include the survey or questionnaire method, telephonic in
terview 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 unive
rse with a view to draw conclusions about that universe. A sample is a represent
ative of the universe selected for study.
Sample Size: The sample size for the survey conducted was 80 respondents.
31
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 d
ata is also neatly presented with the help of statistical tools such as graphs a
nd pie charts. Percentages and averages have also been used to represent data cl
early and effectively.
Data Source
Primary Data Secondary Data Data Collection Procedure Research Instrument Sample
Size Sample Area Sample Procedure Target Audience customers : : : : : : : : Thr
ough Questionnaires Through Internet, Journals, News papers. Survey Structured Q
uestionnaire. 80 Work has done in Delhi/NCR Office. Random sampling. Marketing o
fficials / channel members/
These will be some of the sources through which up-to-date and relevant data wil
l be collected. The information gathered will be tabulated and presented in the
final report.
32
DATA ANALYSIS AND INTERPREATATION
ANALYSIS ON THE BASIS OF SALES
ANALYSIS ON THE BASIS OF SALES
daikin
12% 9% 9% 8%
4%
lg voltas
40%
carrier
national hitachi
5%
13%
whirlpool ogeneral
The market survey showed that the sales volume of Daikin is the highest followed
by Lg, whirlpool, Hitachi, national, carrier Voltas and then Ogeneral.
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QUALITY OF AIR CONDITIONERS
QUALITY OF AIR CONDITIONERS
daikin
8% 0% 15% 10% 30% 8% 20% 9%
lg voltas carrier national hitachi whirlpool ogeneral
Hitachi serves as the top leader in providing best quality to its customers, fol
lowed by national and then Daikin.
34
CUSTOMER CONSIDERATION OF PRICE
CUSTOMER CONSIDERATION OF PRICE
NO. OF CUSTOMERS 25 20 15 10 5 0 YES NO CUSTOMER RESPONSE
CUSTOMER RESPONSE
According to the market survey conducted 20 customers considered price as a majo
r determinant while buying Daikin air conditioners, whereas 5 does not give pric
e the same weightage.
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POSITIONING OF DAIKIN AIR CONDITIONER IN THE MARKET
POSITIONING DAIKIN AIR CONDITIONERS
13% 13% 41%
Excellent Good Satisfactory
33%
Poor
Amongst the dealers surveyed 41 % agreed that the positioning of Daikin air cond
itioner in the market is excellent whereas 33 % feels that it is good , & 13 % s
ays that is satisfactory as well as poor.
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MAINTAINENCE OF GOOD PUBLIC RELATION
MAINTAINENCE OF GOOD PUBLIC RELATION
PERCENTAGE OF DEALERS
90% 80% 70% 60% 50% 40% 30% 20% 10% 0% YES NO
dealer's response
DEALER'S RESPONSE
According to the market survey conducted, About 84 % of the correspondent say th
at Daikin maintains a good public relation with its dealers whereas 16 % does no
t have the same response.
37
INSTALLATION AND OPERATION
INSTALLATION AND OPERATION
daikin lg voltas
5% 1% 24% 40%
carrier
11%
4% 5% 10%
national hitachi whirlpool ogeneral
According to the market survey conducted, Hitachi leads the market in providing
services in terms of installation & operation followed by Daikin, lg, carrier, w
hirlpool, national, Voltas and then ogeneral.
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ADOPTION OF VARIOUS PROMOTIONAL TOOLS
ADOPTION OF VARIOUS PROMOTIONAL TOOL
30% 5% 9% 56%
advertisement personal selling direct marketing sales promotion
Advertisement is regarded as one of the major promotional tools with a share of
56 % followed by sales promotion, personal selling and direct marketing
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MAINTAINENCE OF SUFFICIENT NETWORK
MAINTAINENCE OF SUFFIENT NETWORK
18%
YES
82%
NO
Amongst the dealers surveyed 82 % said that Daikin maintained a suffient network
whereas while 18% provided negative response.
40
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 lar
ge market share in the air conditioner market. 2. The dealer network of Daikin i
s very strong. This implies that Daikin maintains a good public relation with it
s 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, n
ational have better rating in the market. 4. Brand positioning of Daikin air con
ditioner is good i.e. the position in the minds of the consumer is quite appreci
able.
Individual findings for questionnaire are: -
Percentage of market share
Daikin serves as the market leader with highest sales volume & contributed to th
e 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 %. .
41
Consideration of price while buying Daikin A.C
About 80% of the respondent claimed that customers do consider the price of Daik
in 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 m
aintaining 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 in
stallation 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 di
rect marketing being at 9% and 5% respectively
42
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 m
aintain a sufficient network.
43
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 De
lhi. This may result in the sample not being true representation of the entire m
arket for air conditioners. 2. While all attempts have been made to keep the sur
vey free of the bias. There may be bias introduced in a few interviews. 3. The s
urvey was limited to few dealers, which form only a part of the entire market, i
t would have been more but due to the non-cooperation dealers the number is less
.
44
RECOMMENDATION
1. Improvement in quality
The company should try to position itself as a brand, which is not only affordab
le 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 companie
s have always been looking forward to as it reaches its wider audience & can cre
ate a stronger brand appeal. The company can always announce various incentives
& schemes during the commercials. For example, free passes for a film premiere o
r 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 a
head of its competitors for example Voltas has used any time service advertisement
s to make a strong brand image in the minds of the consumers. Using a brand amba
ssador 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 representa
tives of these dealers about various Daikin products. 2. Increase dealers margins
& offer better schemes to these dealers to receive good promotional leverage.
45
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 m
aintain and enhance this position by giving more value to the customers and offe
ring special replacement schemes. Also the company should make provisions regard
ing various financial schemes available to its customers, special off season dis
counts e.t.c.
46
BIBLIOGRAPHY
Books Consulted Journal of Marketing April 2002, Volume 66 Kothari, C.R. Research M
ethodology, (2002), Wishwa Publication Kotler, Philip (Singapore) Marketing Manage
ment (2002), Pearson Education
Web Sites visited: www.indiainfoline.com www.Daikin.com www.google.com www.india
times.com
47
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
48
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 inst
allation & operation?
49
 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?
_____________________________________________________________________ __________
___________________________________________________________ ____________________
_________________________________________________ ______________________________
_______________________________________ ________________________________________
_____________________________ _______________
50