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CHAPTER 1

COMPANY PROFILE

Founded in 1915 by Dr. Willis Carrier, the inventor of modern air-conditioning,

Carrier has developed into being the largest global manufacturer of air-conditioning,

heating and commercial refrigeration systems. Over the decades, the Carrier name

has become synonymous with reliability, innovation, commitment, superior

technology, cutting-edge manufacturing and world-class performance. Carrier started

its operations in India with the setting up of Carrier Aircon Limited in 1987 and

Carrier refrigeration in 1998. Its competitive advantage lay in the fact that for the first

time, the Indian consumer was provided access to advanced technology and

air-conditioning and refrigeration products from the worldwide product portfolio of

Carrier. Carrier Corporation owns96% of the equity in Carrier Aircon Limited and

100% of the equity in Carrier Refrigeration .

Carrier Air-conditioning Ltd., Gurgaon operations are spread across 20 acres having

full-fledged manufacturing facilities starting from Window Room Air conditioners,

Duct Free Splits, Ducted Splits and Chillers supported by strong R&D facility. The

Corporate office is also located in the same campus. Carrier Refrigeration, based in

Gurgaon has full fledged manufacturing and distribution facilities of cold chain

equipment: comprising of cold rooms/stores; Truck Refrigeration & Bus

Air-conditioning; Chest Freezers/Coolers and vise coolers. Carrier's mission is leadership

in every segment of the Indian air conditioning and refrigeration industry through

advanced technology, high quality service and a full range of air-conditioning&

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NAME OF THE COMPANY : CARRIER AIRCON LTD. ADDRESS : DELHI-JAIPUR HIGHWAY TEL.NUMBER : 911244825500

FAX NO. : 911242373241

E-MAIL ID

:

Source : Company Manual

Table no. 1.1- Company details

1.11 Air Condition Industry

Air Conditioners give respite from summer heat and have become a necessity. They

have made our lives comfortable. After a hard day's work you return home and switch

on your air conditioner and let the fresh air relax you and rejuvenate your spirits.

Once again you are ready to shop out with your family or help your spouse in

household work or spend some quality time with your kids. India you desperately

need an air conditioner. In this crouching heat it is only an air conditioner that can

give you some respite and make you livelier and energetic. Earlier buying an air

conditioner was not easy. It was very costly and middle class families can't afford but

now purchasing an air conditioner in India is no more tough and expensive. There

are various companies offering air conditioner like LG, Hitachi, Samsung, Onida,

Godrej, Sanyo, Carrier, Blue star, Voltas, Amtrex, O General etc. These companies

have various offices all over India. They have their own store and shops selling air

conditioner of all types .Air conditioner comes in various sizes and shapes. Some air

conditioner does not even look like an air conditioner especially ones offered by LG.

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air conditioners, split air conditioners, car air conditioners, ductless air conditioners,

air ceiling conditioner mount system etc.

1.2 BUSINESS OPERATIONS

1.21 Type Of Business

Company involved mainly into the design and manufacture of industrial equipment ,management and execution of air conditioning and public work projects, sourcing, installation and servicing of technology-based systems and representations of global technology leaders, serving diverse industrial sectors and applicants operations have been organized into three independent business-specific clusters. Each of these has its own

facilities for market coverage and service to customers. Namely :

a. Electro-Mechanical Projects & Services

i. Electrical, Mechanical, HVAC & Refrigeration Solutions ii. Electrical, Mechanical & HVAC Solutions

iii. Water Management & Treatment

b. Engineering products & Services i. Textile Machinery

ii. Mining & Construction Equipment iii. Machine Tools

iv. Materials Handling Solutions

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c. Unitary Cooling Products for Comfort & Commercial Use i. Cooling Appliances

ii. Commercial Refrigeration

1.3 COMPANY’S VISION AND MISSION

Mission: Defines the business , the needs of covering their products and services, the

market in which it is developed and the public image of the company. The mission of

the company is the answer of the question : why does the organization exists?

Vision: Defines and describes the future situation that a company wishes to have, the

intention of the vision is to guide, to control and to encourage the organization as a

whole to reach the desirable state of the organization. The vision of the company is the

response to the question of: What do we want our organization to be?

1.31 Mission and Vision of Carrier Aircon

a. To be recognized as the leader in every segment we operate in by:

b. Being ‗customer focused‘ in everything we do and following ACE diligently c. Delivering ‗best in class‘ quality in the product as well as aftermarket service d. Being ‗environmentally conscious‘ in areas of energy efficiency and pollution e. Establishing a performance culture that respects human values & team work f. Remaining embedded in our core values of EH&S and ethics

Thereby growing profitably and ahead of the market every year, making Carrier a

5 1.4 PRODUCT RANGE OF COMPANY

1.41 Types of Carrier Heating and Cooling Systems

The perfect Carrier system for your home depends on several factors, including the

physical specifications of your home. Whichever innovative products you and your

expert Carrier dealer select, there are 4 primary types of Carrier heating and cooling

systems: split systems,

hybrid heat split systems, ductless split systems and packaged systems.

a. Split Systems

The most typical and traditional heating and cooling systems are split systems. With a

Carrier split system, you have products that reside both inside and outside your home.

An innovative Carrier split system includes:

i. Air Conditioner—Cools refrigerant

ii. Furnace and Evaporator Coil, or a Fan Coil—Converts refrigerant and circulates air

iii. Ducts—Carry the air throughout your home

iv. Control or Thermostat—Your interface for controlling your system

v. Optional Air Quality Accessories such as Air Cleaners or Ventilators—Clean your air before it circulates throughout your home.

.

b. Hybrid Heat Split System

A Carrier hybrid heat split system is a more energy-efficient variation of the

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option of electricity-fuelled heating and cooling, in addition to gas furnace heat. An

cost-effective Carrier hybrid heat split system includes:

i. Heat Pump —Cools and/or heats refrigerant

ii. Furnace and Evaporator Coil —Converts refrigerant and circulates air iii. Ducts —Carry the air throughout your home

iv. Control or Thermostat—Your interface for controlling your system

v. Optional Air Quality Accessories such as Air Cleaners or Ventilators—Clean your air before it circulates throughout your home.

c. Ductless Split Systems

Carrier ductless systems can be installed in places where conventional ducted systems

cannot go, or are an ideal complement to your ducted system. Carrier ductless systems

offer a matched combination of:

i. Heat Pump or Air Conditioner — Cools and/or heats refrigerant ii. A Compact Fan Coil—Converts refrigerant and circulates air iii. Refrigerant Tubing and Wires—Connects outdoor unit to fan coil iv. Control or Thermostat—Your interface for controlling your system

v. Optional Air Quality Accessories such as Air Cleaners or Ventilators —Clean your air before it circulates throughout your home.

d. Packaged Systems

If your home does not have the space for the multiple separate products typically

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units to entire home systems in a single package, Carrier has a variety of options,

including: i. Packaged Products ii. Window Ac iii. Hi-Wall iv. Ducted v. Slim pack vi. Cassette vii. Packaged AC

viii. Digital Scroll

e. Building systems and services

Building systems and services are the kind of products which are used in large

factories i.e. where there is large space and heavy work is carried out. Types

are as followes:

i. Air cooled chillers ii. Water cooled chillers iii. Absorption chillers iv. Airside Products

v. Controls

f. Refrigeration

Carrier provides a number of refrigeration products with its air conditioning

8 i. vise - Coolers

ii. Freezers iii. Cold rooms iv. Super Markets g. Transport

Truck refrigeration is a kind of mobile refrigeration i.e. moving cooling can be

provided to the products.

i. Truck refrigeration

1.5 SIZE OF CARRIER CORPORATION

Carrier is the world's leader in high technology heating, air-conditioning and

refrigeration solutions. Carrier experts provide sustainable solutions, integrating

energy efficient products, building controls, and energy services for residential,

commercial, retail, transport and food service customers. Founded by the inventor of

modern air conditioning, Carrier improves the world around us through engineered

innovation and environmental stewardship.

1.51 In Terms Of Turn Over

With 2011 revenues of $12.0 billion, Carrier has operations in more than 170

countries. Carrier distributes to and provides service to its customers via a worldwide

network of owned and independent distributors and dealers. Carrier is a part of UTC

Climate, Controls & Security, a unit of United Technologies Corp. (NYSE: UTX)

which provides high technology products and services to the building systems and

aerospace industries worldwide through its industry-leading businesses: Carrier,

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UTC Power. UTC was ranked 37th on the 2010 Fortune 1000 List of America's

Largest Corporations.

1.52 In terms of man power

Carrier has overall 43,000 employees serving customers in 170 countries on six

continents. Wherein, In India It has around 14000 working employees in

3 factories

1 Carrier owned Totaline outlets

25 Sales and service offices

1.6 ORGANIZATIONAL STRUCTURE

Source: Company magazine

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1.7 MARKET SHARE & POSITION OF THE COMPANY

The size of the air-conditioner industry in India is about Rs 2000 crores. The industry can be

sub-divided into non-ducted and ducted products. The demand for non-ducted products --

window air-conditioners and mini-splits -- comes from both households and

corporate. The demand for ducted products -- central plants, packaged air-conditioner

sand ducted splits -- is mostly from the corporate.

1.71 Market Share Of Carrier Aircon

Founded in 1915, carrier is the inventor of modern air-conditioning and has developed

itself into being the world‘s largest provider of air-conditioning, heating and commercial refrigeration systems (HVACR)

Carrier is also one of the first to adopt the energy efficiency label issued by

the Bureau of Energy Efficiency (BEE) Awarded the First prize for energy

conservation in Consumer Goods Sector in 2007 & 2008 by the Ministry of Power,

Govt. of India Like Hitachi most of Carrier ACs are having highest Energy

Efficiency Ratio (EER) in its category.

Indian air-conditioner market can be analyzed for the window and split AC, between

the major players in this category which are Carrier, LG, Voltas, Samsung, Hitachi,

Videocon and others

a. Lg : 41% b. Carrier : 19% c. Samsung : 13% d. Hitachi : 11% e. Voltas : 9% f. Others : 7%

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Source: Investors.info

Figure no. 1.2- Market Shares

LG has maintained its leadership position in the Indian AC market accounting for a

market share of 41%. The company achieved its milestone of sales of 500000 air

conditioner in 2005 and has been growing. LG is focusing on offering a

comprehensive range of air-conditioners that provide all indoor air quality solutions.

Whereas carrier follows up it by 19%.

As per Bureau of Energy Efficiency (BEE), around 38 brands of air conditioners are registered with BEE for star rating. The ones that are best known to us include LG,

Samsung, Whirlpool, Voltas Godrej, Carrier, Hitachi, Daikin, Panasonic, Blue Star,

Onida, Videocon, Haier, Sharp, Electrolux etc. LG has the largest share in the

room air conditioner market (22%) followed by carrier (20%) and Samsung (12%).

Voltas, a TATA product and Godrej are the Indian brands. Hitachi (7%) and Daikin

(4%), Japanese brands, have products in the premium segment.

MARKET SHARE

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When you are planning to buy a new air conditioner you are offered a large number of

choices by each of these brands. The long list of features for each of them has the

power to leave confused rather than convinced. We did some research on these brands

and found that many of them provide online tools to analyse the products offered by

them. They also help you in choosing the right air conditioner for you. Some these

links are provided below:

1.72 Position Of The Company

2011 UT Electronic Controls (UTEC), a unit of Carrier and the largest manufacturer of HVAC electronic controls for the original equipment manufacturer (OEM) market in the U.S., was the first electronics manufacturing facility to earn Leadership in Energy and

Environmental Design (LEED®) Gold certification under the LEED for Existing Buildings rating system

2011 Carrier‘s Monterrey, Mexico Commercial plant was the first industrial facility in the HVAC industry to be LEED Gold certified

2009 Carrier factories in North Carolina and Indiana became only the 10th and 11th in the world at that time to receive LEED green building rating for existing buildings

2009 Carrier's Carlyle Compressor Stone Mountain facility named one of the 10 best plants in North America by IndustryWeek magazine

2008 Awarded the Environmental Pioneer in Cooling award for carbon dioxide refrigeration systems (U.K.)

2008 Industry Week magazine names Carrier‘s Huntington facility a top 10 plant in North America

2008 First prize in India‘s National Energy Conservation Awards

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2008 Featured in six winning projects of the 2008 Builder‘s Choice Awards which showcase excellence in home design (U.S.)

2007 Ministry of Construction award for being one of the top 10 international companies for energy efficiency in China

2007 U.S. Environmental Protection Agency‘s Best-of-the-Best Stratospheric Ozone Protection award in recognition of the

company‘s achievements in helping restore the earth‘s ozone layer (U.S.)

2007 AHR (Air Conditioning , Heating and Refrigeration) Expo Innovation Award to Aqua force® chillers (U.S.)

2007 Home Magazine Building Product Awards for innovation and energy efficiency to Infinity™ system (U.S.)

2006 National Energy Conservation Award 2006: 1st Prize in "Consumer Goods sector" category presented by the Honorable President of India, Ms. Pratibha Patil.

2006 National Energy Conservation Award 2006: 1st Prize in "Consumer Goods sector" category

2006 National Energy Conservation Award 2006: 1st Prize in

"Manufacturers of BEE Star Labelled Appliances (air conditioner) Sector," Top Rank in "Consumer Goods sector" category

2006 National Energy Conservation Award 2006 : 2nd Prize in "Consumer Goods sector" category

Source : www.carrier.in

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1.8 PRESENT LEADERSHIP IN CARRIER AIRCONDITIONING AND REFRIGERATION TD.

Mr. Deepak Narula Chairman

Mr. Rajiv Nath Managing Director

Mr. Lokesh Mishra Assistant Manager Human resource Department

Ms. Manjeet kaur Group Operations Director

Mr. Kalpesh Chaudhry Chief Executive in refrigeration

Mr. Ranjan upadhayay Global Management Consultant

Source: Company manual

Table no. 1.3- Present leadership

1.9 SOURCES OF DATA COLLECTION:

To obtain the data free from errors, Company performed every step carefully while

collecting and recording information and tried to get complete, comprehensible and

consistent data.

The data for the present research study was collected through two methods:

Primary data collection method and Secondary data collection method

a. Books- The use of books starts before even we have select the topic. After selection of the topic books provide insight on how much work we have done on

the same topic and we can prepare our literature review. They are the most

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b. Magazines/Newspapers- They are the most reliable sources. They give us up to date and very useful information.

c. Published Electronic Sources- As internet is becoming more advance, fast, and reachable to the masses, it has been seen that much information that is not

available in printed form is available on internet.

d. Website of the company- websites include all the necessary details regarding the company.

e. Journals of the company- this includes all the data regarding the financial as well as others functional areas in details.

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CHAPTER 2

SWOT ANALYSIS

2.1 SWOT Analysis is a strategic planning tool to evaluate the a. Strengths,

b. Weaknesses, c. Opportunities, and d. Threats

Involved in a project or in a business venture or in any other situation of an

organization or individual requiring a decision in pursuit of an objective. It involves

monitoring the marketing environment internal and external to the organization or

individual.

2.11 Strengths - Strengths are the qualities that enable us to accomplish the organization‘s mission. These are the basis on which continued success can be made and continued/sustained. Strengths can be either tangible or intangible. These are what

you are well-versed in or what you have expertise in, the traits and qualities your

employees possess (individually and as a team) and the distinct features that give your

organization its consistency. Strengths are the beneficial aspects of the organization or

the capabilities of an organization, which includes human competencies, process

capabilities, financial resources, products and services, customer goodwill and brand

loyalty. Examples of organizational strengths are huge financial resources, broad

product line, no debt, committed employees, etc.

2.12 Weaknesses - Weaknesses are the qualities that prevent us from accomplishing our mission and achieving our full potential. These weaknesses deteriorate influences

on the organizational success and growth. Weaknesses are the factors which do not

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depreciating machinery, insufficient research and development facilities, narrow

product range, poor decision-making, etc. Weaknesses are controllable. They must be

minimized and eliminated. For instance - to overcome obsolete machinery, new

machinery can be purchased. Other examples of organizational weaknesses are huge

debts, high employee turnover, complex decision making process, narrow product

range, large wastage of raw materials, etc.

2.13 Opportunities - Opportunities are presented by the environment within which our organization operates. These arise when an organization can take benefit of

conditions in its environment to plan and execute strategies that enable it to become

more profitable. Organizations can gain competitive advantage by making use of

opportunities. Organization should be careful and recognize the opportunities and

grasp them whenever they arise. Opportunities may arise from market, competition,

industry/government and technology..

2.14 Threats - Threats arise when conditions in external environment jeopardize the reliability and profitability of the organization‘s business. They compound the vulnerability when they relate to the weaknesses. Threats are uncontrollable. When a

threat comes, the stability and survival can be at stake. Examples of threats are -

unrest among employees; ever changing technology; increasing competition leading

18 STRENGHTHS

 Exclusive dealer network.

 It has a strong set up to provide technological support to develop new products and upgrade the existing ones.

WEAKNESS

 Poor IMC techniques that leads to penetration among others.

OPPORTUNITIES

 Advent of internet provides an excellent opportunity to reach a large base of customers and cut costs.

THREATS

 Fierce competition.

 Unstable economic conditions.

 Increased threat from cheaper imports especially from china.

Source: www.globalcarrier.com

Table no. 2.1- SWOT analysis of Carrier Aircon

2.3 BEST PRACTICES AT CARRIER AIRCON

2.31CRM Business Consulting Service

CARRIER AIRCON CNS Business Consulting Service provides CRM application

development guidelines with a comprehensive master plan. This service is directly

connected to the CRM Implementation project. With consulting service, you can

increase the implementation efficiency and minimize the application development

cost. Customer Support System carrier CNS Customer Support System automates

processes that are essential for responding service requests such as card issuance,

payment demand/ receipt transaction, and approval that occurring the Customer

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It supports your customer center to offer one-stop service that systematically

integrates the business system with the customer request.

2.32 Usps Under Marketing

a. Sales Support System

Carrier Sales Support System helps you keep track of the sales transaction ranging

from opportunity grasping to the sales conclusion stage. It enhances the possibility of

profit gain by providing all the data necessary for sales such as information on

customer, product, and competitor. Sales Support System also assists actual result

management and planning by providing sales status and estimates. Operational CRM

Solution Service carrier compares and evaluates a variety of CRM packages

applicable in the marketing, sales, and service field to provide you with the most

appropriate solution. Carrier CNS provides outsourcing service with our own CRM

solution that can cover either the entire business area (Suite) or specific field of your

business (Point).

b. Marketing Support System

Carrier CNS Marketing Support System provides marketing tools that effectively

analyze customer data. It provides fast and accurate market analysis by process

automation. Quality of customer service will greatly improve through analysis and

forecasting of customer behaviors and requirements. The Marketing Support System

also supports personalized marking activities to each customer in real time basis.

These marketing campaigns automatically collect and analyze customer information

20 2.33 USP under human resource management.

The ongoing process of systematic planning to achieve optimum use of an

organization's most valuable asset - its human resources. The objective of human

resource (HR) planning is to ensure the best fit between employees and jobs, while

avoiding manpower shortages or surpluses. The three key elements of the HR

planning process are forecasting labor demand, analyzing present labor supply, and

balancing projected labor demand and supply.

The planning process is done with future in mind. The human resources should

consider human resources planning and strategic planning for the whole organization.

Human resources planning and strategic planning are link in a manner so that major

objectives and comprehensive plan is developed. Human resources planning provide

inputs for strategic plan of the organization. It answers questions like does the

organization has required talent available to pursue its objectives. In these manner

Human resources planning is directly linked with strategic planning of the

organization. In addition to aligning the planning process, the linkage between

strategy and human resources also focuses on the development of core competencies.

These core competencies help the organization to gain advantage over their

competitors and they leverage this advantage by learning faster than others in the

industry. Organizations like Blue Star, Bilag and Hindustan Lever can be said to

behaving a complete formal system of Human Resource Planning as more than 95

percent of their respondents have stated it is almost always true for their organization.

Further, organizations like Reliance Industries Ltd., Aarti Industries, Enercon,

Blossom and Paper Product Ltd., having 99.4, 91.75, 90.72, 91.43 and 91.67 percent

responses respectively towards the positive end seem to have a somewhat formal

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Micro Inks Ltd. and Aarti Ltd. can be said to be having a formal system but of a little

lower degree as compared to the other organizations.

2.34 USP under Inventory management

Inventory management is primarily about specifying the size and placement of

stocked goods. Inventory management is required at different locations within a

facility or within multiple locations of a supply network to protect the regular and

planned course of production against the random disturbance of running out of

materials or goods. The scope of inventory management also concerns the fine lines

between replenishment lead time, carrying costs of inventory, asset management,

inventory forecasting, inventory valuation, inventory visibility, future inventory price

forecasting, physical inventory, available physical space for inventory, quality

management, replenishment, returns and defective goods and demand forecasting and

also by replenishment or can be defined as the left out stock of any item used in an

organization. Inventory Management allows users to track item levels and

movements or take physical inventories and cycle counts in the warehouse,

distribution center, stockroom or store. Using LXE‘s MX8 and Red beam‘s Inventory Control application, this solution allows users to:

a. Speed up inventory movements b. Reduce inventory levels

c. Minimize out of stock situations d. Increase accountability

e. Create one central inventory database

By optimizing purchasing, reducing shrinkage and minimizing paperwork, workers

will increase efficiency and productivity in the warehouse, allowing for a quick

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CHAPTER 3

DATA COLLECTION

3.1 MARKETING

3.11 Product Planning Process a. Idea Conception

New product planning typically commences with a great idea. Company

marketers, financial experts and engineers hold brainstorming sessions to decide

the types of products to add to their existing product lines. They may also plan

new lines of products. Whatever the case, company employees usually devise

product concepts to solve consumer problems or fill voids in the marketplace.

They then decide which types of customers are most likely to buy their

products. Sales and profitability are factored into the evaluation process to

determine whether the product idea is viable.

b. Concept Statement

Product marketers use input from the idea generation session to start drafting a

concept statement. A concept statement is a more specific version of the product

idea or concept. It is the stage where companies determine what the product will

look like, including special features, styles or dimensions. Product pricing and

distribution are also determined as are the types of advertising and promotions

that will be used to market the product. Many companies will create different

versions of products before narrowing their concept statement down to one

specific product. This allows for input from consumers who will ultimately

23 c. Focus Groups

Focus groups are used to present the product idea to a group of consumers,

according to Knowthis.com, an online marketing reference site. Focus groups

are usually run at focus group facilities. Managers observe how consumers react

to their product idea through one-way mirrors. The focus group session is

typically run by a professional moderator or interviewer. This person uses a

discussion guide or questionnaire to introduce the concept statement. They ask

consumers if they would like the product as it is presented and whether or not

they would purchase it. Companies use the input from focus groups to tweak

their product concepts with respect to features, styles and price points.

d. Marketing Research Surveys

Marketing research surveys help quantify whether consumers will like and

purchase the product. Companies often do hundreds of surveys to ensure that

their results are valid and representative of the average consumer. This better

ensures that the product will sell in the marketplace. Most companies hire

marketing research agencies to conduct surveys by phone, mail or via the

Internet. These professionals use experienced interviewers to conduct the

surveys and computer software to tabulate survey results.

e. Product Development

Companies will usually start producing their products on a small scale if the

survey results prove favourable. Companies start with smaller amounts of

products so they can evaluate sales in specific markets. This helps them avoid

high production costs if the product somehow fails. Products are usually

24 f. Beta Testing

Companies will usually sell the initial products in two are more cities that are

comparable in size and demographics like age and income. These tests can run

several months to one or more years. During beta tests, companies advertise and

promote their products as they planned when creating the concept statement.

Financial managers then evaluate sales and profits. They then meet with product

managers and engineers to determine whether further expansion is warranted.

Source: Company Manual

Figure no. 3.1- Product planning process

3.12 Pricing Strategies By Carrier Aircon

Pricing strategies for products or services encompass three main ways to improve profits. These are that the business owner can cut costs or sell more, or find more

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profit with a better pricing strategy. When costs are already at their lowest and sales

are hard to find, adopting a better pricing strategy is a key option to stay viable.

Merely raising prices is not always the answer, especially in a poor economy. Many

businesses have been lost because they priced themselves out of the marketplace. On

the other hand, many business and sales staff leave "money on the table". One

strategy does not fit all, so adopting a pricing strategy is a learning curve when

studying the needs and behaviors of customers and clients.

To increase annual subscriptions, for example, an online publishing client considered

bundling subscriptions with $25 worth of merchandise its target market valued. The

merchandise retailed on its Web site. The strategy instead decreased the value of my

client's subscription in subscribers' eyes. Customers considered the subscription worth

the full subscription price -- but minus the merchandise value.

a. Prices Of Different Models

S. No. Model MRP Minimum

customer price

Window air Conditioners

1. 1.0 tr Silencia 21490 18000 2. 1.5 tr Optima d e qr 19490 18490 3. 1.5 tr Optima d plus 2490 19790 4. 1.5 tr Celesta d 22990 20990 5. 1.5 tr Optima d 26990 20490 6. 2.0 tr Optima D 23990 22890 7. 2.0 tr Celesta D 27990 25490

26 Hi - Wall Split Airconditioners

8. 1.0 tr g x series 29490 26690 9. 1.5 tr kx series 32890 30090 10. 1.5 tr p s eries 38690 34990 11. 1.5 tr Gx series 41990 38990 12. 2.0 tr kx series 40590 37190 13. 2.0 tr p series 46390 41690 14. 2.0 tr Gx series 49290 45590 15. 3.0 tr kx series 63490 58990 16. 3.0 tr p series 75490 70990 17. 3.0 tr kx series 80990 77190 18. 4.0 tr kx series 70000 66400 19. 4.0 tr P series 77000 74390 20. 4.0 tr gx series 84000 80790

Sierra infinity (ceiling /Floor) Mounted splits 21. 1.0 tr Dn 29490 26690 22. 1.5 tr Dn 36154 32637 23. 2.0 tr Dn 42077 37981 24. 3.0 tr Dn 62 990 58290 25. 4.0 tr Dn 67000 64500

Slim pack (floor standing splits)

26. 2.0 tr s lim pack 67490 64490

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Cassette (Celling splits)

28. 1.5 tr cassettee 64900 61600

29. 2.0 tr cassette 71600 67690

30. 3.0 tr cassette 127990 119000

31. 4.0 tr cassette 118000 114000

Source: Company brochure

Table no.3.1- Prices of various products of Carrier Aircon

3.13 Channel Management & Planning

a. Channel decisions in relation to marketing strategy

Decisions relating to the channels of distribution for a product or service are part of

the strategic marketing plan. In that plan, the target market will have been specified

along with target levels of market share, market coverage, customer service and so on.

The channels of distribution used by an organisation must be capable of assisting in

reaching these targets. Moreover, the establishment of a distribution system can take a

long time, perhaps several years, and so decisions about the channels of distribution

cannot be taken lightly, and have to be taken with a view to the longer term since it is

not usually that easy to switch between channels.

A distribution channel may be defined as:

The importance of channel decisions has not always been recognised. For a long time,

marketers only gave thought to appropriate channels of distribution after the product

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―Modern distribution systems are based on strategic planning, adhere to the

marketing concept, focus on target markets, and are consistent and flexible.‖ b.Strategic planning: Distribution channels must be compatible with the strategic marketing plan. If, for instance, a skimming strategy has been adopted or the product

requires technical sales support, then mass marketing is probably inappropriate.

Alternatively, if large volume sales are required in order to achieve particular profit

targets, then selective distribution would be inappropriate.

3.14 Types of Distribution System

a. Direct marketing systems: Where distances between producers and consumers are short, direct transactions between the two groups can take place. Farmers who elect to

market their products directly have to trade off the benefits of doing so against the

time they are away from farming activities. In the case of industrial markets, direct

transactions are common where there are a relatively small number of customers (e.g.

equipment designed for abattoirs).

b. Retail institutions: The retail sector includes a wide range of outlets such as merchants, equipment dealers (in the case of farmers), department stores,

supermarkets and smaller grocery stores. They are characterised by their dealing with

the end user of the product or service.

c Wholesalers: Wholesalers make marketing systems more efficient by buying a variety of products, in fairly large quantities, and selling these items on to other

businesses who require relatively small quantities of a variety of goods. Wholesalers

may service consumer and/or industrial retail outlets. For instance, fruit and vegetable

wholesalers often sell to both grocery stores (consumer) and hotels, hospitals, schools,

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distribution functions such as selling, pre-delivery inspection (in the case of

machinery), technical advice, extension of credit, storage, and delivery. Other

wholesalers provide only a limited service. An example would be cash-and-carry

wholesalers who require customers to collect the goods and to pay cash. Patrons of

cash-and-carry wholesalers are usually compensated for the lower service levels by

lower prices.

d. Sales agents and brokers: Sales agents and sales brokers are distinguished from the other types of channel member already described in that they do not take title to

the goods. The role of agents and brokers is to facilitate distribution by bringing

buyers and sellers together. Sales agents often have close relations with particular

growers/processors/manufacturers and contract to sell on their behalf in return for a

commission. Some agents negotiate sales for a number of non-competing clients,

whilst others handle sales for only one client and usually have the exclusive right to

do so, within a specified geographic area. In many respects the sales agent behaves as

though he/she were an extension of the client's own sales organisation. Brokers, on

the other hand, earn a commission for informing buyers of possible sellers and

informing sellers of possible buyers. Clients use the services of a broker intermittently

since their supply of the product to the market is intermittent.

3.15 Marketing to middlemen

No matter how well a product meets the needs of customers, without effective and

efficient distribution it is unlikely to succeed in the marketplace. However, it would

be misleading to suggest that producers or suppliers were entirely free to choose

30

distribution strategy adopted by most producers more often reflects what is possible

rather than what is ideally desired. McVey4 underlines the point when he states that:

―The middleman is not a hired link in a chain forged by a manufacturer, but rather an independent market, the focus of a large group of customers for whom he buys.

3.2 PROMOTION ACTIVITY

A wide promotion activity is planned in order to attract as many trade visitors as

possible; such activity includes promotion

1 - On carrier aircon newsletters and target oriented mailings

2 - On Radio stations

3 - On TV stations

31 5 - On the major local

and national trade magazines

6 - On the major local and national newspapers

Source- Company manual

Figure no. 3.2- Promotional activity a.

b.

3.21 The Visitor Target Group

a. Architects and designers b. Building developers

c. Building trade and industry

d. Cooling, air conditioning technicians e. Cooperatives

f. Energy supply business g. Facility managers h. Heating specialists i. Industry management j. Network technicians k. Planners l. Plant operators m. Plumbers

n. Plumbing, heating and air conditioning technicians o. Safety experts

p. Sales representatives q. Site owners

32 3.3 HRM POLICIES

3.31 HR policy

The cornerstone of the Carrier Human Resources Management philosophy is the

conviction that the well-being of the company and of its people are

interdependent; and that the company's most valuable assets are its people.

3.32 Our commitment

a. To employ the most competent, on the basis of merit

b. To ensure that every employee is treated with dignity and respect, and in a fair, consistent and equitable manner

c. To create a stimulating, enabling and supportive work atmosphere d. To aid and encourage employees in realizing their full potential

We recognize that the success of this philosophy depends in a large measure on

the manner in which managers and their team members - at every level - carry

out their duties and obligations to each other and to the company. Without

mutual confidence and loyalty among employees, as well as respect for each

other as human beings, our philosophy will not work.

3.33 Managers at all levels are committed to the following principles Have knowledge of, and accept total responsibility for, the success of the

organisation's human resources philosophy, policies and procedures, and review

them with team members to ensure their total understanding.

Ensure consistent and fair application of all HR policies. Exercise leadership by

demonstrating integrity, professional knowledge, the courage of your

33

Establish a relationship with team members that encourages a free bi-directional

flow of information, permits open discussion of differing views, and allows

decision making at the most appropriate levels.

In the same context, all employees are expected to maintain certain standards in

relation to their work, and in representing themselves as the staff of Carrier.

They will :

a. Communicate constructive ideas and opinions to managers and team members either pro-actively, or on request

b. Accept and support decisions made contrary to their expressed positions

c. Apply the highest standards of ethics, integrity and honesty d. Comply with the company's policies and procedures

3.5 DATA PRESENTATION

According to the data in the above segment of different functional areas of carrier

Aircon. We conducted a survey on 26 top dealers of air conditioners in Delhi about

the prices , brand preferences n purchase behaviour of the public towards the brands

available in the Indian market.

3.51Research Methodology

Research in common parlance refers to search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific

topic. In fact, research is an art of scientific investigation. Some people consider it as

a movement from the known to unknown. It is actually a voyage of discovery. We all

34

and attain full and fuller understanding of the unknown. This inquisitiveness is the

mother of all knowledge of whatever the unknown, can be termed as research.

a. Research Tool

Questionnaire: A detailed questionnaire was given to dealers in Delhi to get the

information on AC market in Delhi.

Discussions and In-depth interviews of some Dealers in Delhi were conducted to get

the information on AC.

b. Sample Size

The sample size in total will include 25 dealers of air conditioners in New Delhi. All

the collected data was analyzed and is presented in this report.

c. Sampling Method

Random sampling method is used as a sampling technique.

d. Data Sources:

Information has to be gathered through primary and secondary sources.

i. Primary Data

It consists of original information gathered for the specific purpose. This data is

generally collected by observation and survey method.

ii. Secondary Data

It consists of information that already exists somewhere having been collected for

another purpose. They offer the advantage of low cost and ready availability.

35 Primary data sources are:

Questionnaire: A detailed questionnaire was given to dealers in Delhi to get the information on AC market in Delhi.

Discussions and In-depth interviews of some Dealers in Delhi were conducted to get the information on AC.

Secondary data sources: a. Internet sites

b. Company Annual Report e. Limitations Of The Research

i. Time was the biggest constraint as all the interviews were to be conducted in person to get actual views of AC users. But all efforts

were made to get information relevant to this project.

ii. There may be some discrepancies in views as some people might give false information in the Questionnaire, as they might not be

interested in filling the form.

3.52 Dealers

a. Name of brand in which you deal in? DEALERS OF AC''S Name of dealers LG Hitac hi Amt rex CAR RIE R Ichba n Oge nera l Vid eoc on Whi rlpo ol Sam sun g Ass emb ling 1. Vibhu enterprise s

No No No No No No Yes Yes Yes No

2. Ultimate Aircon

36

3. Happy refrig

Yes No Yes No No Yes Yes No No No

4. Arkay engine No No No No No No No No No Yes 5. Mallaika No No No No No No No No No Yes 6. Swastic enter No No No No No No No No No Yes 7. Gems weather

No No Yes Yes Yes No No No No No

8. Bolton No No No No No No No No No No

9. Blton No No No No No Yes No No No No

10. Bliss Aircon

Yes No No No No Yes No Yes No No

11. Classic Aircon

No No Yes No No Yes No No No No

12. Voltesx ircon

Yes No No Yes No No No No No Yes

13. Dhruv aicon No No No No No No No Yes No Yes 14. Gupta aicon. co Yes No No No No No No No No Yes 15. Kaul engineers No No No No No No No No No Yes 16. Global Aircon No No No No No No No No No Yes

17. Harcomp No Yes Yes No No No Yes No No Yes

18. Trade link int No No Yes No No No Yes No No No 19. Pankaj elec. No No No No Yes No No No No Yes 20. Snowmax No No No No No No No No No No

37 refri 21. Surya Aircon Yes No No No No No No No No No 22. Surya refrig. Yes No No No No No No No No No 23. Allied techno. No No No No No No No No No No

24. Cool care Yes No No No No Yes No No No No

25. Sainy electronic Yes Yes No No No No No No No No 26. Concept aircon. Co. Yes Yes No No No

Source- Self observation

38 a.BRAND PREFRENCES

1. Which is the maximum selling brand from your showroom?

Brands Frequency % Assembled 10 40 LG 7 28 Samsung 1 4 O General 2 8 Videocon 2 8 Voltas 1 4 Ichban 1 4 TOTAL 25 100

Table no.3.3- Responses for maximum brand preferences

Figure no. 3.3- Maximum Brand preferences

Out of 25 dealers 10 prefer assembled, 7 for lg, 1 for Samsung ,2 for o

general and Videocon and 1 for ichban which implies dealers keep almost no

amount of carrier Aircon which can be dangerous for the firm

0 1 2 3 4 5 6 7 8 9 10

39 b. ON THE BASIS OF SALE PER YEAR

1..How much AC's do you sale per annum?

Table no. 3.4- Sales responses

Figure no. 3.4- Graph for sales responses Interpretation

OUT OF 25 dealers no one sell less than 100 , around 16 dealers sell

between 100-200 , 4 sell between 200-500 n 5 sell more than 500 which iz a good sign in air conditioner market.

Frequency %

Less than 100 NIL 0

100-200 16 64 200-500 4 16 More than 500 5 20 TOTAL 25 100 0 2 4 6 8 10 12 14 16 Less than 100 100-200 200-500 More than 500

40

c. ON THE BASIS OF SALES OF THE PRODUCT.

1. Which segment sells the best and most?

Frequency % Window AC 16 64 Hi-wall split AC 6 24 Ducted 3 12 Non-Ducted 2 8 TOTAL 25 100

Table no. 3.5- Responses for sales of different segments

Figure no. 3.5- Graph for responses of sales for different segments Interpretation

Out of 25 dealers window ac is sold in a huge amount , second goes the hi

-wall split AC , third goes the ducted and lastly non ducted.

0 2 4 6 8 10 12 14 16

41

2. In Hi-wall AC, which brands sells the most?

Frequency % LG 12 48 Daikin 3 12 Voltas 3 12 Assembled 7 28 TOTAL 25 100

Table no. 3.6- Responses for sales of Hi-wall AC

Figure no. 3.6- Graph showing responses of brand preference in Hi wall Interpretation

Majority of people are focussing on lg , assembled , o general, Videocon . the analysis shows lg is publics choice.

0 2 4 6 8 10 12

42

3.Which factors, you consider are most important factors in consumer purchase decision? Frequency % Quality of product 4 25 Dealer‘s margin 3 12 Advertisement 6 24 Warranty period 2 8 Consumption of power 10 40 TOTAL 25 100

Table no. 3.7- Factors for consumer purchase

Figure no. 3.7- Graph showing factors for consumer purchase Interpretation

Majority of the public demands for the best quality and secondly the

consumption of power. 0 1 2 3 4 5 6 7 8 9 10 Quality of product Dealer’s margin Advertisement Warranty period Consumption of power

43

4. In your showroom, which brands are mostly asked by the customers?

Frequency % LG 3 12 Voltas 9 36 Ichban 1 4 O General 3 12 Videocon 3 12 Samsung 6 24 Assembled Nil 0 TOTAL 25 100

Table no. 3.8- Preference for Brand

Figure no. 3.8- Graph showing responses for brand preference

Interpretation

ON the basis of customer demand Voltas is the most preferred brand followed by Samsung and Videocon.

0 1 2 3 4 5 6 7 8 9

44 CHAPTER 4

FUNCTIONAL ANALYSIS

4.1 MARKETING

The marketing mix and the 4 Ps of marketing are often used as synonyms for each

other. In fact, they are not necessarily the same thing.

"Marketing mix" is a general phrase used to describe the different kinds of choices

organizations have to make in the whole process of bringing a product or service to

market. The 4Ps is one way – probably the best-known way – of defining the

marketing mix, and was first expressed in 1960 by E J McCarthy.

The 4Ps are:

a. Product (or Service) b. Place

c. Price d. Promotion

A good way to understand the 4Ps is by the questions that you need to ask to define

your marketing mix. Here are some questions that will help you understand and define

each of the four elements:

4.11 Price

a. What is the value of the product or service to the buyer?

b. Are there established price points for products or services in this area? c. Is the customer price sensitive? Will a small decrease in price gain you extra

market share? Or will a small increase be indiscernible, and so gain you extra

profit margin?

d. What discounts should be offered to trade customers, or to other specific segments of your market?

45

e. How will your price compare with your competitors?

4.12 Promotion

a. Where and when can you get across your marketing messages to your target market?

b. Will you reach your audience by advertising in the press, or on TV, or radio, or on billboards? By using direct marketing mailshot? Through PR? On the

Internet?

c. When is the best time to promote? Is there seasonality in the market? Are there any wider environmental issues that suggest or dictate the timing of your

market launch, or the timing of subsequent promotions?

d. How do your competitors do their promotions? And how does that influence e. The 4Ps model is just one of many marketing mix lists that have been

developed over the years. And, whilst the questions we have listed above are

key, they are just a subset of the detailed probing that may be required to

optimize your marketing mix.

Amongst the other marketing mix models have been developed over the years is

Boom and Bitner's 7Ps, sometimes called the extended marketing mix, which include

the first 4 Ps, plus people, processes and physical layout decisions.

Functional analysis under marketing department states that carrier Aircon has its very

less control over its promotion n pricing strategies.

4.2HUMAN RESOURCE MANAGEMENT

Managers at all levels are committed to the following principles

46

organisation's human resources philosophy, policies and procedures, and review them

with team members to ensure their total understanding.

Ensure consistent and fair application of all HR policies. Exercise leadership by

demonstrating integrity, professional knowledge, the courage of your convictions, and

concern for the feelings of others. Establish a relationship with team members that

encourages a free bi-directional flow of information, permits open discussion of

differing views, and allows decision making at the most appropriate levels. There are

a number of complains arising against the price issues from the dealers n the general

47

CHAPTER 5

SUMMARY AND CONCLUSIONS

With the fall in AC prices coupled with the increasing purchasing power of the middle

class and the perception that an AC is no longer a luxury but a necessity, the demand

for AC‘s has never been much better.

According to industry sources, 70-80% of the AC‘s sold are used for essential

industrial applications, hospitals and pharmaceuticals and not merely for comfort, as it

is widely believed. A large part of the demand comes from commercial and industrial

sector; even the govt. is a major customer.

The demand for AC‘s is expected to grow at the rate of 25% per annum. In this segment, the demand for windows AC‘s, which currently accounts for 80% of the total demand is likely to reduce to 70% by year 2005. Split AC‘s which are not very

popular now, are expected to pickup and account for 30% of the demand by 2005.

This means that out of a total of 34 lakh units of AC‘s sold in 2005, around 23 lakh will be window AC‘s and the remaining 11 lakh units will be split types.

Demand of AC‘s is expected to leap by 25%. Household segment, fastest growing segment with market share of 25% followed by industrial.

According to a study conducted by Refrigeration and AC Manufacturers Association,

India has a potential to emerge as one of the largest market in South East Asia.

The survey of twenty five dealers in Delhi showed that Assembled AC‘s still rule the market because of a major price difference between assembled and branded AC‘s. LG follows the list and other players sharing the rest of the AC market. The reason for LG

48

add to its sales. As per the dealers people go in for the quality of the product as far as

purchase of AC is considered and also look for the power consumption before making

the purchase decision. Dealers say that the features of all the branded AC‘s are almost similar and thus these two factors affect the buyer‘s buying decision.

5.2 LESSONS LEARNT

Internship at Carrier aircon ltd. started with the objective of gaining practical

knowledge on various aspects. As per the program, it was necessary to gain

knowledge about the product and services, it‘s features and other things about the industry and competitors. The opportunity to meet different people from

diverse backgrounds and occupations was important in gaining knowledge about

the company. 30 visits to various dealers in a short span of 6 weeks internship

was the task given. The main contribution of an employee to its organization

is to perform its responsibilities given with 100% effort and honesty. So the

major contribution was to prepare proposals for the potential clients of carrier

aircon. Further visiting, different organizations to sell the proposals was clearly

the most important and very tough task. . Seniors were happy with the

contribution made to the organization by the tasks performed.

5.3 RECOMMENDATIONS & SUGGESTIONS

Carrier Aircon must try to improve its market share by using better Marketing

strategies and must concentrate on quality and price to attract the customers.

It must also try to make a market presence by using advertising techniques and also a

promotion drive across the country to make people aware of its world class product

49

It must also try improve on relationship with dealers by adopting more dealer oriented

schemes to make them committed to carrier Aircon. It must also improve on after

Sales service for all its customers and also introduce customer oriented schemes to

attract new customers. And thus fulfill the commitment given to the customers during

50

BIBLIOGRAPHY

1) Kotler Philip. Marketing Management, Pearson Publishing House, New Delhi,

13th edition , P. 57,86,99

Manuals

1) Carrier Aircon‘s Manual

2) Company brochure Websites 1) www.google.com – (accessed on 26-07-2013) 2) www.globalcarrier.com – (accessed on 30-07-2013) 3) www.carrierindia.com –(accessed on 08-08-2013) 4) www.wikipedia.com – (accessed on 25-08-2013)

51

ANNEXURE 1

QUESTIONNAIRE

1. Name of brand in which you deal in?

LG  Ichban 

Samsung  Hitachi 

General  Assembled 

Amtrex  Whirlpool 

Videocon  Voltas 

2. Which is the maximum selling brand from your showroom?

LG  Ichban 

Samsung  Hitachi 

General  Assembled 

Amtrex  Whirlpool 

Videocon  Voltas 

3. How much AC d o you sale per annum?

Less than 100  100-200  200-500 

More than 500 

4. Which segment sells the best and most?

Window AC  Hi-wall split AC 

Ducted  Non-ducted 

1. In window AC, which brands sell the most?

LG  Ichban 

Samsung  Hitachi 

General  Assembled 

Amtrex  Whirlpool 

52

2. In hi-wall AC, which brands sell the most?

LG  Ichban 

Samsung  Hitachi 

General  Assembled 

Amtrex  Whirlpool 

Videocon  Voltas 

7. Which factor, you consider as most important factor in consumer purchase decision?

Quality of product  Dealer‘s margin 

Advertisement  Warranty period 

Consumption of power  After sales services 

8. In your showroom, which brand are mostly assed by customer?

LG  Ichban 

Samsung  Hitachi 

General  Assembled 

Amtrex  Whirlpool 

Videocon  Voltas 

9. Are you interested in dealing with Carrier Aircon?