Abstract

A survey was undertaken to analyze the market of fully automatic washing machines in Ludhiana city with the special reference to LG Electronics India Pvt. Ltd. This research was done in order to find out the consumer perception regarding fully automatic washing machines and regarding the different washing machine manufactures. This research has been done on the present customers to ascertain the brand loyalty among customers. The other objective of the research is to find out the display share of different companies in Ludhiana and to ascertain the market share in the present consumer durable industry. This report provides an overview of the industry in the current scenario and the future opportunities available with the different companies manufacturing and selling goods in Indian market. Also, this report provides information regarding the market share of different companies present in the Indian consumer durable market. For this purpose survey was conducted among the present customers in Ludhiana city. On the basis of research data, findings were drawn which provides the clear idea

of the perception of customer and dealers regarding the different manufacturers. Findings are that the customer walk in is mainly from rural sector and the customer mind set is already there that they want to purchase semi automatic washing machine because fully automatic machines are difficult to use and they are costly as compared to semi automatic washing machines. Other reasons given by customers are that servants usually handle machines and it is difficult for them to understand the working of the fully automatic washing machine. Other findings according to the dealers that they prefer to sell semi automatic because of customer demand that is mainly due to the lower price of semi automatic machines. Dealers said that customers are more brand cautious now they purchase only those products which appeals to them more. There is no pre set platform available for any company to sell there is wider competition in the market, so it is not easy to sell whatever they want.

Introduction
Consumer durables are the products whose life expectancy is at least 3 years. These products are hard goods that cannot be used up at once. The consumer durables sector can be segmented into consumer electronics, such as, VCD/DVD, home theatre, music players, color televisions (CTVs), etc. and white goods, such as, dish washers, air conditioners, water heaters, washing machines, refrigerators, etc The Indian consumer durables industry has changed a lot in the last couple of years. There is change in a life style, higher income makes the goods affordable and with the increase in the advertisement the consumer behavior has changed a lot towards consumer durable goods. Now the consumer purchases these goods and even they change their older variants with the new variants available in the market. One major constraint that is time has changed the consumer durable demand more than any other factor. Today the consumers have less time than before because they are busier with their day to day activities. This industry consists of those goods which are used for the daily routine purpose or we can say for the domestic purposes such as televisions, mobile

phones, washing machines, microwave ovens, refrigerators, music systems, etc. The growth in the consumer durables sector has been driven primarily by factors such as the boom in the real estate & housing industry, higher disposable income, decrease in the availability of time with the consumers, emergence of the retail industry in a big way coupled with rising affluence levels of a considerable section of the population.

Industry size, growth and trends

The volume share of the single largest consumer durable was color TVs at 30%, followed by refrigerators and air conditioners at 18% and 13% respectively. Washing machines and other assorted consumer durables captured a share in the total volume by 5% and 34% respectively.

Projected Growth rate Consumer Durables Air Conditioner Refrigerator Microwave Ovens Washing Machines Color Televisions (CTVs) Black & Televisions Consumer Electronics (Overall) Growth Rate 15-20% 5-10% 25% 5-10% 15-20%

White -20% 15%

The top 5 players in consumer durables sector are

Nokia India LG Electronics India Ltd. Philips India Titan Industries Samsung India Electronics

Literature Review

A washing machine or a clothes washer is a machine manufactured and used to wash the laundry that is cloths, towels and sheets. All the washing machines work by using mechanical energy, thermal energy, and chemical action. Mechanical energy is supplied to the clothes load by the rotation of the agitator in the top load washing machines, or by the tumbling feature of the drum in front load washing machine. Thermal energy is supplied by the temperature of the wash bath. According Corporation Intelligence), policy has to (Applied Country's encouraged Isuppli Market fiscal Indian

Appliances is projected to grow exponentially at a compounded annual growth rate (CAGR) of 30%.Hi-technology durables are expected to introduce US$ 4.09 billion Indian durables market in 2009. According to FICCI, The sectors which have recorded excellent growth rates of more than 20 per cent in terms of quantity produced are Air Conditioners (25 per cent), Split Air Conditioners (42.6 per cent) Micro Wave Woven (27.3 per cent), DVDS (25 per cent) VCD/MP3 (20per cent), Colour Picture Tube (23 per cent,) The sectors which have recorded high growth rates between 10 and 20 per cent in April-March 2004-05 over the corresponding previous period are Colour Television (12%), Window Air Conditioners (18.8 per cent ), Washing Machines (18.1 per cent Watch (10%), Frost Free Refrigerators (13.8%). Washing Machines is estimated to have grown by 18.1 per cent from 1.35 million units in 2003-04 to 1.6 million units in 2004-05.

consumer electronic industry. The reduction on import duty in the year 2005-06 has benefited many companies, such as Samsung, LG, and Sony. These companies import their premium end products from manufacturing facilities that are located outside India. Also Isuppli predicts that market will grow to US$ 6.59 billion by 2011. In a study conducted by Frost & Sullivan and commissioned by India Semiconductor Association (ISA), the demand for Electronic

According to a recent research conducted by the Business Standard, the washing machine market in India is estimated to be about 1.95-2 million units and constitutes 33 per cent of the durables market. LG has maintained an overall leadership in washers with a 27 per cent share. IFB has replaced Whirlpool as the marked automatic leader in the fullywashing machine

category and LG clocked leading sales in semi-automatic washers (28.6 per cent), while Samsung bagged 17.8 per cent, followed closely by Videocon which bagged 17.3 per cent, knocking Whirlpool out of the top three. Of the 1.8 lakh washers automatic. sold, 1.4 was semi-

Research Objective

 To study the market to find out the different reasons for the less sale of the fully as automatic compared Washing to the machine

UNIT OF STUDY The sample or target customers mainly comprise of the washing machine owners those who have purchased semi automatic washing machines and full automatic washing machines. Also the sample or the target includes the dealers and distributors who full automatic washing machine. UNIVERSE OF STUDY The research was conducted in the Ludhiana city in Punjab. SAMPLING DESIGN Convenient Non Probability Sampling was used to choose sample out of the target population SAMPLE SIZE: A total of 160 people have been targeted for the purpose of obtaining questionnaires.

semiautomatic washing machine. To analyze consumers perception regarding LG electronics. To study why the market share of LG electronics is less in fully automatic segment as compared to semiautomatic washing machine segment. To know how much customer is aware of different functions available in different variants.

METHODOLOGY
RESEARCH DESIGN USED: This study is based on the exploratory research followed by descriptive research. Exploratory research is done in order to find the problem with fully automatic segment in Ludhiana region, why the sales of fully automatic washing machine is less as compared to the semi automatic washing machine. Descriptive research is done in order to get the exact reasons from the customers why they prefer more semiautomatic than fully washing automatic machine

Customer Type Customers

Number customers of 100

of

washing machine

Semiautomatic washing machine Customers of Fully 50 automatic machine Dealers Distributors Total washing & 10 160

DATA COLLECTION: Primary Data The primary data collection comprises of questionnaire understand which the is mainly to customer perception

regarding LG products and to know the different reason for their preference of semi automatic washing machine. Secondary Sources Internet Company data Newspaper Articles from Times of India, Economic Times. Based on the information obtained from the above sources concepts were developed on which analysis was made.

ANALYSIS & DISCUSSIONS

Following table shows the market share of different companies with respect to their volume size in the last year. Different segments are studied as shown color television, Refrigerator (FF), Refrigerator (DC), Air Conditioners, Microwave Oven, Washing Machine (SAWM), Top Load and Front Load

of LG Electronics is Samsung and Whirlpool with market share of 22.8% and 18.2% respectively. REASONS FOR THE PREFERENCE OF FULLY AUTOMATIC WASHING MACHINE

MARKET SHARE
Product C.TV Ref (FF) Ref (DC) A.C MWO SAWM T.L F.L LG 25.7% 30.2% 25% 26% 29.7% 25.6% 24.9% 27% Samsung 16.1% 22.4% 15% 16.4% 18.2% 14.7% 22.8% 7.7% Whirlpool 0% 22.7% 23% 3.9% 5.4% 15.3% 18.2% 5.2% Other 40.4% 16.8% 26% 37% 31.1% 15.8% 17.9% 5%

This table shows that LG is on the top in the category of Color television, Refrigerator (FF), Refrigerator (DC), Air Conditioners, Micro wave oven, Washing machine (SAWM) and in Top Load with 25.7%, 30.20%, 25%, 26%, 29.7%, 25.6%, and 24.9% respectively. And in the segment of Fully automatic Front Load LG is on the second position with market share of 27%, IFB which is considered as the most trusted brand in this segment is on the top with almost 45% market share. In the Top Load segment main competitors Different preset programs (jeans, silk, wool, synthetic) The main reasons for the preference of fully automatic washing machine are following Comfort: it provides comfort you can just start the machine and can do your work or you can rest you need not to stand their waiting for cloth to get washed.

Delays start function.

purchased fully automatic because of its new and attractive looks, today designs are attractive and good enough that it can be placed in common room also in home. 29 customers told that fully automatic washing machine provides them the best wash function ever experienced with hot wash function. 22 respondents said they purchased the fully automatic washing machine because of its function known as Tumble wash. 26 customers interviewed said cloth. REASONS FOR THE PREFERENCE OF SEMI AUTOMATIC WASHING MACHINE they purchased fully automatic washing machine for deep cleaning of

Out of 50 customers 36 said that fully automatic washing machine provides more comfort as compared to semi automatic washing machine. 34 said that it has different preset programs which make their cleaning process easier than the semi automatic washing machine. 36 customers replied that delay start function makes their washing process more effective even if there is any power cut they need not to set the machine again. Other reasons for the preference of semi automatic washing machine as compared to fully are following: New technology Delicate cloth wash New designs/ Attractive looks Hot wash function Tumble wash Deep cleaning

Total 32 respondents agreed that they have purchased fully automatic because of its new technology which will provide them more results than semi automatic washing machine. 24 customers said they prefer fully automatic because of its delicate cloth wash. 33 respondents told that they The main reasons for the preference of semiautomatic following washing machine are

IT is difficult to operate full automatic washing machine.

dealer or what they have told by sales person. 31 said they took the opinion from their friends and relatives for the purchase of washing machine. 26 replied that semi automatic takes less time than fully automatic to wash the cloths. 30 said because servants handle machine thats why they have purchased semi automatic washing machine. 42 said that fully automatic use more detergent and water it comes out to be costly thats why they prefer semi automatic washing machine. Does the following factor plays an important role in buying decision? O Band name O Promotion Y Y N N N N N N

Less price than fully automatic Not willing to change/ handy with semi automatic washing machine

Out of 100 customers 67 said that it is difficult to operate fully automatic washing machine as compared to semi automatic washing machine. 52 said that it has lesser price than fully automatic thats why they prefer semi automatic washing machine. 62 said that they are using semiautomatic washing machine from long time and they do not want to shift. Other reasons for the preference of semi automatic washing machine as compared to fully are following: Dealers / Sales person influence on semi automatic Friends/Relatives opinion Takes less time to wash the cloths than the fully automatic machine Servants handle machine Can wash more cloths with same water and detergent Total 18 respondents told that they purchased what they have shown by the

O Washing Capacity Y O Aesthetics/ looks Y O Friends opinion Y O Prior knowledge Y

Above diagram shows that the main factor that plays the important role in the buying

decision of the customer are Brand name and Washing capacity. 116 customers said yes the brand name affects the buying decision and 115 customers said yes the washing capacity affects the buying decision. After that Looks, promotion and Opinion of friends and relatives considered to be the important factors with the positive response of 104, 97 and 91. Prior Knowledge is considered to be the least important as compared to the factors. This shows that customer is more brand cautious and they consider the main constraint washing capacity as the main factor that plays the important role in the buying decision. SATISFIED CUSTOMERS WITH THEIR PRODUCT

automatic washing machine and 75% customers of fully automatic washing machine customers are satisfied from the products and after sale service of the LG Electronics. About 7% of the customers of semi automatic washing machine and 25% of fully automatic washing machine customer are not satisfied from the product and after sale service. Reasons for selling other Brands
O Customer demand/ Awareness O Price of product O Unique Features O Brand cautious O After sale service O Other please specify

This pie chart shows that all the dealers Objective of the above question is to obtain the information that whether the customers of LG Electronics India Pvt. Limited. Nearly 93 % customers of semi gave the reason for selling different brand is customer demand of different brands. 8 dealers gave the reason that the price of product is also important different customers have different budget for the

purchase so different price range should be available according to their demand. 3 dealers said different unique features of every company is important factor. 7 dealers said customer is brand cautious now they prefer specific brands. Brand name is important thats why they sell different brands. 5 dealers agreed that after sale service of different companies also considered as one of the reason for selling different brand.

different family size; every customer has different family size.

NUMBER OF FAMILY MEMBERS

The above diagram shows that the normal distribution curve is negatively skewed in nature with .140 values this is because the number of respondents vary in the family size. They have

CONCLUSIONS
According to the survey conducted following findings are drawn: From the above research the main thing which came out is that the customer is still focused on the traditional methods of washing. Mainly the customer walk in is from rural segment, many research organizations also said that rural market is still open to all the company , companies can grow more by focusing on the rural market. Customers than fully still prefer semi

Customers still thinks that the brand machine name, promotion the and buying washing capacity of the washing affects decision. Their prior knowledge of the brand today does not affect much because today the market is changing day by day now nothing is pre determined any one can sell their product in highly volatile market. According to the dealers customers are brand cautious and also they prefer quality product that can give value to their money invested. They sell the products of different brands in order to attract different customers. Most important factor which came out is that the customers do not have the proper knowledge of different brands and the functions different companies provide. The customers are satisfied with the products of LG and most of them do not want to change their product that means the customers of LG are brand loyal.

automatic washing machine more automatic of washing different machine because

reason but the main reason for that was the price of the product, its easiness to use the product and they are not willing to change their preference. Other reasons for the preference of semi automatic washing machine over fully automatic washing machine are that fully automatic washing machines are difficult to operate, and servants handle washing machines.

 Customer feedback should be taken at regular interval; this will build a healthy relationship between company and customer.

RECOMMENDATIONS
To compete with the other big brand LG Electronics India Pvt. Ltd. should encourage the dealers and distributor to focus on the fully automatic washing machine segment more. This segment needs more attention. ISD on the various locations should be told to convert the customers washing of semi automatic to fully machines

Company should revise the price of their washing machines with respect to other brand, because some companies offer their fully automatic washing machine at low prices. To promote the selling of fully automatic be given washing to machines and different promotional schemes can Distributors Dealers. Needs more display on multi brand showrooms and focus is required to cover the untapped rural market. Customers can be easily converted from semi automatic to top load if given proper knowledge of machines. More promotion is required for this segment. Advertisements should be given in the newspapers and on TV so that customer gets aware of the product.

automatic. For this purpose they need to have complete knowledge of each and every function of the washing machine. This will make their work easy to convert the customer to fully automatic. The customers do not have the proper knowledge for that the company should organize exhibitions or display on the most crowded places like the recently organized in the Flames. There customers should be given proper knowledge regarding the product.

Consumer-Electronics-Market-inIndia.html. http://www.managementparadise.co m/forums/business-environment-be/29377-industry-analysis-washingmachines-onida.html.

BIBLIOGRAPHY
www.lgindia.com

http://www.allbusiness.com/marketi ng-advertising/marketingtechniques/10511031-1.html. http://www.free-press-

www.wikipedia.org Economic Times Business Standard Ficci survey on consumer durable: http://www.ficci.com/surveys/consu mer-durable.pdf. Company Sources Market Research Report Preparation by N.K.Malhotra Magazine- Business Today www.org-marg.com Articles by org-gfk www.naukarihub.com http://www.bharatbook.com/Market -Research-Reports/Booming-

release.com/news/200812/12307223 20.html.