G.L.

Bajaj Institute of Management & Research

Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
PGDM BATCH-2023-25

A PROJECT REPORT ON
Understanding the consumer brand value of Hitachi cooling products through
B2C innovation in India.

Submitted in partial fulfillment of the requirements for the award of the two-year full-
time degree of

POST GRADUATE DIPLOMA IN

MANAGEMENT 2023-25

GUIDE BY: SUBMITTED BY:

Prof. Nishant Tyagi ANUJ KUMAR GUPTA

PGDMG23152

ROLL_N0-

1
 G.L. Bajaj Institute of Management & Research
Approved by A.I.C.T.E., Ministry of HRD, Govt. of India
Plot No. 2, Knowledge Park-III, Greater Noida
PGDM BATCH-2023-25

DECLARATION BY THE STUDENT

I declare that “Understanding the consumer brand value of Hitachi cooling

products through B2C innovation in India.” is the result of the project work
carried out by me under the guidance of Prof. NISHANT TYAGI in partial
fulfillment for the award of a two-year full-time degree of POSTGRADUATE
DIPLOMA IN MANAGEMENT from G L Bajaj Institute of Management and
Research, Greater Noida.

I also declare that this project is the outcome of my efforts and that it has not been
submitted to any other university or Institute for the award of any other degree
diploma or Certificate.

Place: Name:

Date: Roll No.

2
 CERTIFICATE

This is to certify that the dissertation titled “Understanding the Consumer Brand Value of
Hitachi Cooling Products through B2C Innovation in India.” is an original work of
Mr. ANUJ KUMAR GUPTA
(PGDMG23152) bearing ROLL Number _
and is being submitted in
partial fulfillment for the award of a two-year full-time degree in POST
GRADUATE DIPLOMA IN MANAGEMENT from G L Bajaj Institute of
Management and Research, Greater Noida.

The report has not been submitted earlier to this University /Institution for the fulfillment of the
requirement of a course of study.

Signature of

Guide Date

3
 ACKNOWLEDGEMENT

I would like to thank the following people without whom I would not have been able to complete
this SIP Project Report.

My heartfelt thanks to our Director Dr. Sapna Rakesh for providing an opportunity to work on
the project right from the first trimester of the program.

I convey my sincere thanks to my Faculty Guide Prof Nishant Tyagi for providing me the
constant support and guidance to carry out my project effectively and efficiently.

I would also like to convey my gratitude to my family members, all faculty members, and staff
for their support and guidance.

ANUJ KUMAR GUPTA

ROLL_
PGDM Batch 2023-25
GL Bajaj Institute of Management & Research

4
 TABLE OF CONTENTS

CHAPTER 1: Introduction

CHAPTER 2: Company Profile

CHAPTER 3: Literature Review

CHAPTER 4: Research Objective

CHAPTER 5: Research Methodology

CHAPTER 6: Data Analysis and Interpretation of Findings

CHAPTER 7: Suggestions

CHAPTER 8: Conclusion

5
 EXECUTIVE SUMMARY
Today Indian consumers now have diverse preferences, and products are
tailored to meet their specific likes and dislikes. The consumer durables
industry, particularly home appliances like air conditioners, focuses on
creating the right products for customers. In the past, air conditioners were
not common due to their high cost. However, liberalization and technological
advancements have significantly transformed the air conditioner market over
the past decade. Prices have become more competitive, and technology has
improved, giving consumers many options. The entry of foreign companies
after globalization has increased competition. Buying an air conditioner is a
significant investment, making it a challenging decision for consumers. With
minimal technological differences between brands in the same price range,
marketing is crucial for gaining a competitive edge. For Hitachi,
understanding consumer brand value through B2C (Business-to-Consumer)
innovation in India is essential. By focusing on customer needs and
preferences, Hitachi can create standout products and build strong brand
loyalty.

Johnson Controls Hitachi Air Conditioning, Ltd. is a Japanese

multinational engineering and electronics conglomerate company
headquartered in Chiyoda, Tokyo, Japan. Hitachi is a highly diversified
company that operates eleven business segments: Information &
Telecommunication Systems, Social Infrastructure, High Functional
Materials & Components, Financial Services, Power Systems, Electronic
Systems & Equipment, Automotive Systems, Railway & Urban Systems,
Digital Media & Consumer Products, Construction Machinery, and Other
Components & Systems.
6
The main objective of this study was to better understand the policies and
procedures of Hitachi, an attempt has been made to gain an insight into the air
conditioner and refrigerator industry, to study various parameters involved in
the air conditioners and refrigerator, to study retailers’ and customer
perception about various parameters like price, brand image, after-sales
service, etc.

This project has been carried out in three phases. In the first phase, in an
attempt to gain insight into the air conditioning industry as to how it works,
and what all-competing brands are there, this study gave a fairly good idea
about the industry and the perception of retailers towards different brands.
This study helped to identify various parameters involved in the air
conditioner and refrigerator. A good amount of qualitative information is
gathered from this study. In the second phase, gathered a good idea of sales
and customer behaviors in the retail outlets. Some parts of my project also
included handling customer calls, customer relations processes, stock
handling, demonstrations, and installation booking. In the third phase, a
structured questionnaire was generated to find out the brand awareness of the
customer and their most preferred brands in those two particular segments
along with their buying behavior, which was also a part of the study.

The major findings that emerged from the analysis were that Hitachi ranked
second when it comes to brand preference in air Conditioners but ranks lower
in after-sales services. In addition, price, quality, and brand image and
7
services also emerged as significant factors for air Conditioner and
refrigerator purchases. Most of the customers who prefer Hitachi are mostly
premium Customers. Customers prefer Hitachi as a brand because Hitachi
gives some value addition in retail selling compared to its competitor's B2C
innovations.

Based on the above findings it can be concluded that Hitachi has improved in
brand awareness among retailers and customers. Still, it is yet to surpass
Voltas, Daikin, LG, Samsung, LLOYOD, OGENERAL, and many more in
the competitive market. Also, sales team visits, ordering, and after-sales are a
matter of concern that can cause great loss to the company in the future, if not
corrected. The actions recommended broadly include strengthening the
distribution network. Improving incentives to sales forces and strengthening
the retail network of Hitachi.

Chapter -1
8
 Introduction
Today Indian consumers are not limited to a set of needs. Products are today
customized keeping in mind various consumers’ likes and dislikes.
The consumer durables industry, which mainly comprises home appliances,
is highly influenced by the prospect of producing the right product for the
customer.
Previously air conditioners were not perceived as white goods due to the large
price difference between air conditioners and other white goods.
Now, thanks to Liberalization and growing technology, the air conditioner
market a decade back and that of today is entirely different. Be it price or
technology, consumer demand has seen a sea change.
Today buyer has plenty of options to choose from and different companies
are trying their best to lure the customer. This is mainly due to the entry of
foreign players after globalization. Air conditioner purchase involves a high
involvement decision; customers think a lot before buying a new AC as
investments are comparatively higher as compared to say FMCG.
This even complicates the task of various companies involved in a business.
Last but not least, since technological differences between brands of similar
price ranges are not significant, marketing is the only tool left for competitive
advantage.
The project aims to understand how much customers in India value Hitachi's
cooling products, like air conditioners and refrigerators. By focusing on
innovations that directly benefit consumers (B2C innovations),
the study will explore how new features and improvements make Hitachi's
products more appealing. It will look at how these innovations impact the
Brand's reputation, customer satisfaction, and overall market presence in

9
India. The goal is to find out what makes Hitachi's cooling products popular
and what can be done to make them even better for Indian consumers.

There are four basic air conditioner types: window units, through-the-wall
units, portable units, and completely house/central air units. Window units
come in models made for double-hung windows, sliding windows, and
casement windows. Through-the-wall and central air units require
professional installation. Portable units are not typically as effective as
window air conditioners and are best used only in situations where fitting into
a window is not an option.

Window air conditioners are very simple appliances. They operate on the
same principles as a refrigerator, freezer, or dehumidifier.

10
Cooling: All residential window air conditioners have a cooling system
made up of four primary components, a compressor, an evaporator, a
metering device, and a condenser. Air conditioner cooling systems are
better understood if you think of them as devices that remove warmth
from the air rather than cooling the air.
Blower fan: When the unit is running, the circulating fan and compressor
are running simultaneously. The fan motor has two fan blades attached to
it on either end. The fan blade on the inside part of the unit continually
draws room air over the cold evaporator coils. The fan blade on the
outside part of the unit continually draws fresh outside air over the warm
condenser coils. Because the evaporator coils are cold, they cause
moisture in the room to collect on them, much like a cup of ice water on a
warm, humid day. When the amount of moisture increases, it begins to
drip down off the coils into the bottom pan of the air conditioner.

Thermostat Control: The thermostat on a window air conditioner works

by sensing the air temperature entering the air conditioner. As the air,
entering the unit reaches the set temperature it will cause the compressor
to turn off. The blower may continue to run depending on the selection
chosen on the control panel. Digital thermostats work on a similar
principle but display a more precise temperature.

11
 Selector switches: The air conditioner selector switches allow the user to
choose the fan speed. The compressor always runs at the same speed
regardless of the settings. If low cool is, choose, for example, the fan runs
at a slower speed but the compressor still offers the same cooling capacity.

Central air conditioners are split systems: an outdoor unit (the condenser
unit) and an indoor unit (air handler). The function of an air conditioner is
to transport heat from one station to another. The vehicle your system uses
to carry the heat is called a refrigerant, commonly referred to as Freon.
The compressor in the outdoor unit changes the refrigerant (or "Freon")
into a high-temperature, high-pressure gas. As that gas flows through the
outdoor coil, it loses heat and condenses into a high-temperature, high-
pressure liquid. This liquid refrigerant travels through copper tubing into
the evaporator coil. There the refrigerant expands. Its sudden expansion
turns the refrigerant into a low-temperature, low-pressure gas. This gas
then absorbs heat from the air circulating in the ductwork. The cooled air
is then distributed back through your house or place of business.
Meanwhile, the heat absorbed by the refrigerant is carried back outside
through copper tubing and released into the outside air.

Consumers’ profile: Air conditioners

The room air conditioners can be divided into two categories.

1. Window air conditioners

12
 2. Split air conditioners

Consumers for room air conditioners can be divided as

A. Household consumers: If any segment of the consumer durables

industry has seen rapid growth in India in the last decade, it is the room air
conditioners industry. With growing incomes and higher standards of
living, the demand for air conditioners has been rising in the household
segment. The consumer profile is an upwardly mobile urban population
living in metropolitans and cities. The household market accounts for 70%
of the window A.C. market and 30% of the split A.C. market.

B. Industry Consumers: The government sector has been a major buyer

of air conditioners in the past but demand from the household sector is also
increasing. A sustained GDP growth, increased government spending and
industrial activity, cheaper consumer credit, etc. are driving the demand
for AC products in the industrial sector.

ANALYSIS OF THE AIR CONDITIONER INDUSTRY

AC industry is operating in an environment, which has changed a lot

during the last few years. The industry operates in a dynamic and complex
environment. Complex, because there are numerous factors affecting the
business like government budgetary policies, eco-friendliness of operation
and product part, changing lifestyles of consumers, demographics, etc. On
the other hand, it is dynamic because due to rapid changes in the
technological front aspects related to the environment are changing.

Political environment:

13
  Liberalization of the economy in the nineties saw the entry of

several foreign players.

 A fair amount of political stability.

 Consensus on target of higher growth of the economy.

 Political consensus on economic reforms.

Economic environment:
 Abatement from the retail price for levy of excise duty on air
conditioners lowered from 35 to 30%
 There are no worries about Tata Croma if there are fewer than 15%

There is a concept of no loss no profit.

 An increase in excise duty on raw materials like steel from 15% to

18% will adversely affect air conditioner manufacturers.

 With the lowering of duties on newer product categories, air

conditioners are now positioned as a retail product. Earlier with a

retail price of nearly 40,000 to 48,0000 of split AC and window AC
29,000 to 45,0000 after discount, it stood no chance against say a
CTV costing depending on croma percentage.
 The industry has been seasonal with four months (March to July)

generally accounting for 65-70% of total annual sales.

Social environment:
Rising disposable income and reduced prices are slowly making ACs a
necessary utility as opposed to being viewed as a luxury item.
 Increased spending on lifestyle-related products and the increasing

SOHO segment are increasing the demand for ACs.

 Increasing concern for t h e environment and health consciousness

will make people buy more eco-friendly products.

14
Technological environment:

Product technology: The key component of air conditioners, and

compressors (40% of the cost) is of two types i.e. reciprocating and rotary.
Rotary compressors account for 66% of the total market Split ACs are
major users of rotary compressors now dominate the Indian AC market.
The rotary compressor has the advantage of being energy efficient, less
noisy, and abuse proof India has two manufacturers, Tecumseh India and
Kirloskar Copeland for reciprocating compressors.

Rotary compressors are presently imported from China, Malaysia, Japan,

and Thailand. Window ACs range from 0.6T to 2 T. They are ideal for
small spaces like individual rooms in an office or residence. Split Air
Conditioners have good aesthetic features and are indispensable in rooms
without windows. In both AC inverter and non-inverter type.

Process technology: The industry intrinsically is highly capital intensive and has
a massive appetite for capital cost as well as working capital while a normal
0.1-
0.15 Million assembly plant costs 500 Million (without compressor line),
working capital cycle is 90 days. With high operating costs (around 800-1000),
technology especially power savings is a key advantage and market
differentiator.

15
History of Air Conditioners

16
On July 17, 1902, Willis Havilland Carrier installed the first air
conditioner at a printing press in Brooklyn N.Y. It was not to help the
workers at the factory though. It was to keep the paper cool and dry so it
would not curl in the mid-summer heat and humidity. That way, the
printing press could apply the ink properly. Mr. Carrier started a
revolution by doing that. Air conditioning allowed cities to develop in
deserts. It changed the designs of houses and skyscrapers.

It took the pioneering genius of Willis Carrier to work out the basic
principles of cooling and humidity control and it took innovation by
thousands of engineers before air conditioners became a real benefit to the
average person. Carrier’s invention made many technologies possible,
especially in fields that required highly controllable environments such as
medical and scientific research, product testing, etc. Carrier claimed that
while he was standing in a Pittsburgh train in 1902, he realized that
saturating it with chilled water to induce condensation could dry air Willis
Carrier is known as the father of air conditioners. In 1928, Carrier
developed the first residential “Weatherman”, an AC unit for private
houses.

17
18
19
 Exclusive store of TATA CROMA
No D84, Geetanjali Marg, Main Market, Block C, Malviya Nagar, New Delhi, Delhi
110017

20
 Chapter -2
COMPANY PROFILE:
Johnson Controls Hitachi AC Limited- Johnson Controls Hitachi AC Limited
is a Japanese multinational air conditioning manufacturing company founded in
1910 and headquartered in Chiyoda, Tokyo that manufactures home appliances
and specializes in air conditioning and cooling technology. The company was
incorporated on 1st October 2015 in Tokyo, as a Joint Venture between Johnson
Controls and Hitachi Appliances. The Chief Executive Officer of the company is
Toshiaki Higashihara, Keiji Kojima. The chief Marketing Officer (CMO) is
Monica Kumar. The shares of its major subsidiary in India are traded on the
Bombay Stock Exchange under the symbol JCHAC. In India, Hitachi air
conditioners are manufactured and marketed by Hitachi Home & Life Solutions
India Ltd, which is a joint venture between Hitachi Home and the Johnson
Controls group based in Ireland. The company is headquartered in Ahmadabad,
Gujarat. It has another Global Development Center in Kadi, Gujarat. is among
the ten Hitachi air conditioner facilities worldwide. With a total installed
capacity of 9,00,000 RACs per annum (in a single shift) in addition to that, the

21
company can also manufacture 1,20,000 tons of Ductable units,9,000 VRFs
ODUs, and 300 chillers a year. HHLI is amongst the top air-conditioning
companies in India. It has a strong nationwide distribution consisting of 8
regional offices, 36 branch offices over 400 exclusive sales and service dealers
over 1,700 sales points and 500 stores of TATA Croma in India, 35 company-
owned service centers (HCS), and 700 other service points including multi-brand
S&S and franchisees. HHLI has a company-owned and operated 24x7 customer
care Centre. At Hitachi, we believe in simplifying life, which is why, we
constantly innovate, bring in excellent technology, and newer concepts, and
incorporate advanced features in our products to make life comfortable. The
word "inspire" has as its etymology, the Latin preposition in and the Latin verb
“spare”, meaning, "to breathe." As well as meaning "to breathe in," and "to
encourage," it also has various meanings associated with life itself, such as "to
uplift the spirit" and "to invigorate." Nothing was put after the word "Next" to
inspire our stakeholders and all those who read our Corporate Statement to
imaginatively fill in the blank that follows with words like "Era," "Society,"
"Idea," "Product," "System" or "Solution."

Having others share in the composition of our Statement is one of its primary
Aims

22
23
SWOT ANALYSIS

Strengths:

1. Diversified product portfolio and balanced revenue streams.

2. Strong focus on research and development.
3. Strategic acquisitions to strengthen market position.
4. Good Focus on sustainability and marketing.
5. Excellent global presence and top-of-the-mind recall.
6.

Weakness:

1. Over-dependent on the Japanese economy for revenue generation.

2. Due to intense competition and changing customer preferences, market share
is limited.
3. No promotion was undertaken to target the lower class of society.
4. Poor after-sales service- very few service centers in India.
Opportunity:

1. Growth in Air conditioners, Refrigerators, LED, and Washing machine markets.

2. Acquisition of smaller brands and global tie-ups to increase reach.

Threats:

1. Rapid technological changes and evolving industry standards.

2. Stringent government regulations.
3. Fluctuations of exchange rate.

As Student Promoters, we have certain responsibilities in our assigned

job and the responsibilities are
 Understand customer requirements for the Product.

24
 Actively demonstrate Hitachi Products.
 Handle Customer queries related to Products/Pricing/Schemes etc.
 Deliver the desired shopper experience to the consumer.
 Convert customer requirements into demand, hence sales conversion.
 Communicate daily status to the Coordinator about Sales & Attendance.

25
 Chapter-3
Literature Review
Since the pioneering work of Schumpeter, innovation has been widely regarded as
the most important driving force of economic development, while “creative
destruction” is often the product of “entrepreneurship”. Yu proposed that according
to Rogers, consumer-perceived innovation refers to the subjective perception and
judgment of consumers on product innovation, service innovation, or other forms of
innovation of enterprises. Barone and Jewell concluded that brand innovativeness
refers to the degree to which consumers perceive a brand to be innovative. Ravi and
Pascale defined brand innovativeness as “the extent to which consumers perceive
brands as being able to provide new and useful solutions to their needs”. Therefore,
questions in interviews are designed according to these previous definitions of
innovativeness. Additional functions, updates in the system, and changes in
appearance are taken into consideration.
Su believed that from the consumer perspective, customer brand loyalty refers to
the customary bias of consumers for the purchase of a branded product. Dick and
Basu proposed that loyal customers are those who not only have a good attitude to
repeat purchases but also can carry out repeat purchase behavior. Liu and Li
defined customer loyalty as the fact that customers, influenced by quality, price,
brand, service, and other factors, purchase a particular product or service several
times.
However, research about the impact of brand innovativeness on customer loyalty
is vague. Petersen et al. proposed that brand loyalty is an important brand
performance metric. Henard and Dacin only concluded that the perception of
innovativeness may lead to higher consumer involvement, which can indirectly
exert a positive impact on customer loyalty. In any case, organizations must
know that a devoted and fulfilled client can in all respects effectively change to a
contender on the off chance that they are offered superior esteem or quality.
There is no assurance that a fulfilled client will come back to the organization yet
it is practically sure that a disappointed client won't return. (Mcllroy et al, 2000).

26
Administration characteristics cause expanded consumer loyalty, expanded
consumer loyalty prompts more noteworthy client maintenance, and improved client
maintenance more noteworthy productivity. The estimation of consumer loyalty is
especially vital in the administration's area, for example, consumer durable white
products. Hoyer and MacInnis (2001) said that fulfillment can be related to
sentiments of acknowledgment, bliss, help fervor, and pleasure. There are a few
dimensions of client: Dissatisfied client Looking for another person to give item or
administration, fulfilled client open to the following better chance, faithful client
returns notwithstanding offers by the challenge. Hansemark and Albinsson, (2004)
express that "fulfillment is a general client frame of mind towards a specialist co-op,
or an enthusiastic response to the distinction between what client envision and what
they get, concerning the satisfaction of some need, objective or want". Vance
Christensen, (2006), found that consumer loyalty has little to do with client
dependability. A fulfilled client will remain until there is a superior option offered to
them - regardless of whether their desires are surpassed. Vance Christensen, (2006)
uncovers that consumer loyalty is altogether different from client devotion. One is a
necessity to work together; the other is the reason for supported productivity and
development. Xueming and Christian, (2007), surely concur that consumer loyalty is
a focal development in advertising research. Past examinations showed that
fulfillment's impact on dependability is increasingly evident in the clients who are
unpracticed with a brand than the individuals who are because of a transformative
procedure that drives loyalty. Pappu and Quester argued that brand innovativeness
acts as a signal that positively influences consumer perceptions of the quality of the
brand. Kunz et al. indicated an indirect relationship mediated by factors such as
satisfaction. Generally speaking, scholars have implied that brand innovativeness
may have a positive impact on customer loyalty.
27
Therefore, whether there is a negative impact still needs to be studied. According to
Alan and Emma, conversation analysis is the fine-grained analysis of talk as it
occurs in interaction in naturally occurring situations. They also noted that Narrative
Analysis is an approach to the elicitation and analysis of language.

Chapter-4
Research Objectives
Research Objectives of the consumer brand value of Hitachi cooling
products through B2C innovation in India.
1. Understand Consumer Preferences and Needs
 identify the specific preferences, likes, and dislikes of
Indian consumers regarding air conditioning products.

 Determine the key factors influencing the purchase

decisions of consumers in the Indian market.

2. Analyze Market Trends and Competition

 Study the current market trends and technological advancements in the air
conditioning industry in India.

 Evaluate the competitive landscape, focusing on the strategies and offerings of other
brands

3. Evaluate Pricing Strategies

 Assess the impact of pricing on consumer purchasing behavior.
28
  Develop pricing strategies that align with consumer expectations and
market conditions.

4. Assess Brand Perception and Loyalty

 Measure the brand perception of Hitachi cooling products among Indian
consumers.

 Identify the factors that contribute to brand loyalty and how they can be
enhanced.

5. Enhance Product Customization

 Explore ways to customize Hitachi cooling products to better meet the diverse
needs of Indian consumers.
 Develop new features and innovations that address specific consumer pain
points.

6. Improve marketing and Communication Strategies

 Analyze the effectiveness of current marketing and communication
strategies.
 Develop new marketing campaigns that resonate with Indian consumers
and highlight the unique selling points of Hitachi cooling products.

7. Sustainability and Energy Efficiency

 Research the importance of sustainability and energy efficiency in consumer
decision-making.
 Develop eco-friendly and energy-efficient products that appeal to
environmentally conscious consumers.

8. Technological Advancements
 Explore the latest technological innovations in air conditioning and their
potential applications in Hitachi products.
 Stay ahead of industry trends by integrating cutting-edge technology into
product development.
29
By focusing on these research objectives, Hitachi aims to strengthen its position in the
Indian market, better meet consumer needs, and build lasting brand loyalty through
innovative and customized cooling solutions.

30
 Chapter-5
Research Methodology
Research methodology gives an outline or framework of how the Research is
conducted. It guides us in the collection and analysis of the data. This section
provides us with the research procedures and methods that are to be adopted for
achieving the Project Objectives.

Objective of the Study: -

 Analyze factors that majorly influence Customer choice of Product
 To understand the effectiveness of Innovation as a tool for
Retaining Brand Value.
 To suggest measures based on factors preferred by the Customer that can
be adopted to enhance Product asper Customer preferences.

Scope of the Study:

“The marketers can build demand for a product by associating it with strong
drives, using motivating cues and providing positive reinforcement”. Marketers'
role in identifying the behavior, preferences, attention, perceptions, and habits of
the Consumers needs to be analyzed. The latter variables are the result of certain
processes in the brain which are explained and justified by the neuromarketing
technique.
 More likely to notice those which relate to the current need.
 More likely to notice those situations that they can anticipate
 More likely to notice those stimuli whose deviations are larger than the
normal size of the stimuli.

31
Research Methodology

PRIMARY DATA SOURCES:

In all, we collected information from a sample of store managers and up to 60
customers. And 81 surveys by Google Forms questionnaire mode. The Data is
collected through a self-administrated questionnaire which filled by them in the
soft copy of the questionnaire.

SECONDARY DATA SOURCES:

Secondary data is collected from various research literature for a similar
research question.

RESEARCH DESIGN
The overall purpose of this project is ―To analyze the performance of Hitachi as a
brand in the south Delhi Gitanjali road market TATA CROMA and to find out the
gaps to enhance their performance. I used a descriptive and exploratory Design.
SAMPLING
Since it is not possible to study all Hitachi Customers and all the buying dealers of
croma around Delhi NCR therefore I took the stores as per the company’s
preference for my research.

SAMPLING UNITS
Customers who have used Hitachi’s After Sales Services in the month of 15th May to July
2024 and buying dealers who are dealing with the brands mainly in AC. SAMPLING
TECHNIQUE. The Nonprobability Convenience Sampling Method has been used to gather
respondents.

SAMPLE SIZE

32
The sample size is 75 from the Customer’s perspective and 75 customers’ after-
sales service satisfaction

RESEARCH INSTRUMENT

Structured Questionnaires were developed to get the responses from the Sample
Population.

Research Survey on Air Conditioner Comparison

33
 Chapter-6
Data Analysis
Before we analyzed the data, we collected responses through a
questionnaire filled up by respondents, we will discuss the demographic
factors related to Respondents. The total no of our Respondents is 81.
These questions were asked: -
Data Analysis Technique:
After collecting data, it is being analyzed using Microsoft Excel. Data was collected from
a store of Tata and a brand store.

34
35
36
37
38
39
 Analysis of HITACHI’s Performance based on the dealer’s
perspectives.

Q1. COMPARATIVE ANALYSIS OF HITACHI’S AC WITH

COMPETITORS BASED ON ASSOCIATING FACTORS:

This is visible from the above analysis that service is a major reason why the
Buying dealers like to associate with other brands despite Hitachi. On the
other hand, other factors like the Quality of products Hitachi are far very
better than in every competitive. others just as Voltas, Lloyd, Haier, Blue
Star, Panasonic, Daikin, and many more Brands.
PREFERENCE FREQUENC PERCENTAG CUMULATI
S Y E VE
PERCENTA
GE
MARKETING 40 30.50 30.50

SERVICES 52 39.69 70.69

SALES 6 04.58 74.77
LOGISTICS 13 09.92 84.69
COMMERCIA 14 10.68 95.37
L

40
The major concern areas from the dealers or manufacturing of brand company of
Tata Croma's perspective are service and marketing which comprises gaps that are
responsible for the loss in the market because the customer did not wait for the
product if paid the money for the product and due to this the relationships were not
good because of the Problems dealers face due to these factors.
CUMULA
PERC
PREFERE FREQU TIVE
ENTA
NCES ENCY FREQUEN
GE
CY
ONCE A
47 35.87 35.87
MONTH
TWICE A
33 25.19 61.06
MONTH
THRICE A
20 15.26 76.32
MONTH

41
 WEEKLY 31 23.66 100
TOTAL 131 100

This analysis helped to understand the outcomings that Hitachi is facing

regarding the visibility and availability of marketing elements in the
stores. Many stores reported that the visits are as few as once a month
which is not enough to address their problems and even the availability
of the marketing elements in the stores for products and even the
training to the promoters or brand associates is not properly conducted
due to these less number of visits.

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 According to the above analysis, Best was rated by only 22 stores or
brand stores, and Tata stores out of 131 and even Good was rated by 24
which is less than the rating for Bad which is given by 36 stores as
there are issues related to visits and for the solving of issues, slow
response rate. Therefore the interaction needs that can take place when
the visits to the store will increase.

ANALYSIS OF CUSTOMER SATISFACTION

REGARDING AFTER-SALES SERVICES.

Q2. WHERE DID YOU CALL CUSTOMER CARE EXECUTIVES

ACCESSIBLE?

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 PREFERE FREQU PERCEN CUMULATIVE
NCES ENCY TAGE PERCENTAGE
YES 76 44.97 44.97
NO 93 55.02 100
TOTAL 169 100

Table: Customer Care Accessibility

The very first step taken by the customer whenever they face any
issue is to interact with customer care or CHD(CUSTOMER HELP
DESK) to resolve the issues as per the data presented the customers
who face problems getting access to customer care easily 55%
which is higher than the people who are satisfied with their access
to the customer care. It needs to improve as it creates a bad
impression in the minds of the customers which is related to bad
word of mouth about the brand.

Q3.HOW MANY TIMES YOU HAD TO CALL

CUSTOMER CARE TO RESOLVE YOUR CONCERN?

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 PREFERENC No. of PERCE CUMULA
ES Customer NTAGE TIVE
(FREQUE FREQUE
NCY) NCY
1 TIME 14 8.28 8.28
2 TIMES 2 1.18 9.46
3 TIMES 64 37.86 47.32
MORE 89 52.66 100
THAN 3
TIMES
TOTAL 169 100

Q4.What is your preferred price range for AC Nowadays customers

buying?

Most of the customer prefers Rs.35000-45000. In these price ranges, most of the
option available for Hitachi that is the main reason customers mainly prefer
Hitachi compared to other brands.

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Q5. Which brand do you prefer in terms of buying an air conditioner?

This graph figure shows the strongest point of Hitachi i.e. brand preference.
Hitachi scored a whopping 45.7% points when it came to brand preference. The
other two brands, which are faring well in terms of brand preference, are Voltas
(21%) and Haier(6.2%), and Blue Star (4.9%) therefore Hitachi has always
stressed aggressive marketing and have hefty advertising budgets and now
Hitachi has its new game plan of Big Bang strategy.

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People of South Delhi Malviya Nagar Croma customers mainly prefer
1.5 tonnages AC because of room size. The customer gets most of the
product options in 1.5 tonnage class AC.
Tonnage Class Efficient in Square ft. area

Less than 1 ton Less than 100 square ft. area

1 ton Around 100 square ft. area

1.2 ton Around 120 square ft. area

1.5 ton Around 150-180 square ft. area

2.0ton Around 200 square ft. area

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 CHAPTER-7

S U G G E S T I O N S & RECOMMENDATIONS
FINDINGS

After interacting with customers, it can be analyzed that though Hitachi has
improved in certain areas, like top-of-the-mind recall, distribution network,
and service, brand awareness still a lot of work needs to be done.

 The major findings that emerged from the analysis were that Hitachi
ranked second in brand preference in the case of air conditioners but
ranked lower in after-sales service, ordering, and sales team visits.
 In the case of AC, people are still unaware of the brand.
 Most of the customers who prefer Hitachi, they are mostly are
premium customers.

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  Customers prefer Hitachi as a brand because Hitachi gives some
added features compared to its competitors such as ice cleaning,
cooling sensors, light ambiance, and many more features.
 In Home appliances, industry service is the most important thing,
because most of the customers look for after-sales services.
 Retailers as well as customers were also not satisfied with the
sales force's visit to the Hitachi store or any Tata store.
 After Sales Service of Hitachi is rated as poor by most of
the customers.

RECOMMENDATIONS

 The supply side can be improved by keeping a proper capacity

cushion, especially in April to July since 60-65% of sales occur in
this period. Companies need to make sure that there is no dearth of
supply and always have a stock full of any models which will also
help the organization to shred its laid-back image.
 Attractive displays should be in good manners with clean dust
particles placed at the retail outlets to create a distinction from other
brands. This will help Hitachi build strong brand equity at the store
level.
 The number of retail counters should be increased substantially to
increase Hitachi’s penetration.
 Companies can organize a retailer meeting regularly, which will
increase their interaction with company officials.
 The frequency of the sales team, which visits the outlets, should be
increased substantially so that things can be sorted out on the spot.

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  Proper margins and incentives should be given so that
intermediaries can facilitate long-term relations.
 Make Service/ franchisee networks stronger.
 The company should launch some lower price range products,
which can be affordable by all.

Chapter-8

CONCLUSIONS
LIMITATIONS

 A duration of two months was not enough for an in-depth study

of issues.
 Biases might have crept up on the part of the customers while
giving answers.
 Absolute sanctity of data can be a cause of concern as many
retailers did not ponder much over giving points, ranks, etc.
 The sample size for customers was small due to time constraints.
The analysis, findings, and results are limited to the Delhi market only which
might not have reflected the true picture of the entire Indian
market.

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51
Based on the above findings you can conclude that Hitachi has improved its
brand awareness among retailers and customers. Still, it is yet to surpass Voltas
and Lloyod, Daikin, LG, CROMA AC which is its brand of Tata Croma, and
many more, in that respect Also, the sales team and brand-associated TL which
visits for review, ordering, and after-sales are areas of concern that can cause
great losses to the company in the future. Hitachi also needs to redesign its
marketing strategies and improve its pricing strategy for dealers to make a
success in India. If Hitachi improves the services & incentive scheme for dealers
whose brand associates face the problem of completing of target if Hitachi will
give less target and with good incentives then there are good chances of a grand
success, as the Indian air conditioner market is growing very fast. Finally, we can
conclude that the success (or Sales) of Hitachi AC is dependent on after-sales
service & incentives provided to dealers as they are the ones who push your
brand. Indian customers will not buy it just because it is their brand, but they
expect value for money and satisfaction with valuable things and products.

BIBLIOGRAPHY AND REFERENCES

Books:

• Philip Koltler etal.(2013), “Marketing management”,

Pearson Education (13thEdition)

• Ries Al, Ries Laura(2000), “22 Immutable laws of

marketing”, Harper Collins Business (7thEdition)

• Ries Al, Trout Jack(2005), “Positioning the battle for your

mind”, McGraw Hill Book Company (8th Edition )

• Chawala, Sondhi(2011), “Research Methodology”, Vikas

Publishing House Pvt.
Ltd(3rd Edition)

Newspapers:
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 • The economics times(Brand Equity),3rd page,24th June 2014
• The financial express,2nd page,25th June 2014

Web sites:

• http://en.wikipedia.org/wiki/Brand
• http://www.afaqs.com/
• http://indiabudget.nic.in/ub2012-13/cust.htm
• http://www.equitymaster.com/
• http://www.hitachi-hli.com/

ANNEXURE
Survey

Untitled form for Air Conditioner Preference

Survey

1. Name

………………………………………

2. Age Group
Please select your age group:

 Under 18

 18-24

 25-34

 35-44

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  45-54

 55-64

 65 and above
…………………

3. Gender
Please select your gender:

 Male

 Female

 Prefer not to say

4. Income Group
Please select your annual income group:

 Less than 1,00,000

 More than 3,00,000

 More than 6,00,000

 More than 12,00,000

5. Preferred Air Conditioner Brand

Which air conditioner brand do you prefer?

 VOLTAS

 HAIER

 HITACHI

 PANASONIC

 DAIKIN

 O-GENERAL
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  SAMSUNG

 LG

 BLUE- STAR

6. Price Range for Air Conditioner

In which price range you are looking to buy an air conditioner?

 Under 35,000

 Under 45,000

 Under 60,000

7. Maximum Selling Category

Which category of air conditioners do you think sells the most?

 Window AC

 Split AC

 Portable AC

 Central AC

8. Most Attractive Feature

What feature attracts you the most in an air conditioner?

 Energy efficiency

 Cooling speed

 Smart connectivity

 Noise Level

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 9. Frequency of Use
How often do you use your air conditioner?

 Daily

 A few times a week

 Weekly

 Rarely

10.What attracts you the most to a product?

 PRICE

 QUALITY

 CUSTOMER SERVICE

 BRAND REPUTATION

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57
TEAM MEMBER OF TATA CROMA MALVIYA NAGAR, NEW DELHI

After completion of the end of my internship.

I would like to extend my heartfelt gratitude to:

 Store Manager Sir

 Assistant Manager Sir
 ADM Manager Maam
 TATA CROMA Senior HR Maam
 All members of the Brand Association
 All members of the Croma staff, Executive team, and housekeeping Members

Thank you very much for supporting me throughout my two-month work internship.

A special thank you to the Team Leader of Hitachi, Sir Lovely Chouhan.

THANK YOU

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