rakesh.s-0311-brand extension for hitachi

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HITACHI MPBIM 1 $ 678’< 21 TO RECOMMEND STRATEGY FOR BRAND EXTENSION OF “HITACHI”(AIR CONDITIONERS) TOWARDS DEVELOPING A BRAND EQUITY FOR HITACHI TELEVISION SETS $ 678’< &21’8&7(’ )25 Hitachi Home & Life Solutions (India) Ltd., Bangalore Submitted in partial fulfillment for the requirement of MBA Degree of Bangalore University Submitted by: RAKESH.S Register no: 03XQCM6078 Under the guidance of: Prof S.Ramgopal For Bangalore University 2003-2005 M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATE BHARATIYA VIDYA BHAVAN # 43, Race Course Road BANGALORE-560001

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Page 1: Rakesh.s-0311-Brand Extension for Hitachi

HITACHI

MPBIM 1

$�678'<�21 �

TO RECOMMEND STRATEGY FOR BRAND EXTENSION OF “HITACHI”(AIR CONDITIONERS) TOWARDS DEVELOPING A

BRAND EQUITY FOR HITACHI TELEVISION SETS

$�678'<�&21'8&7('�)25 �

Hitachi Home & Life Solutions (India) Ltd., Bangalore

Submitted in partial fulfillment for the requirement of MBA Degree of Bangalore University

Submitted by: RAKESH.S

Register no:

03XQCM6078

Under the guidance of:

Prof S.Ramgopal

For Bangalore University

2003-2005

M.P.BIRLA INSTITUTE OF MANAGEMENT ASSOCIATE BHARATIYA VIDYA BHAVAN

# 43, Race Course Road BANGALORE-560001

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DECLARATIONDECLARATION I hereby declare that project entitled “TO RECOMMEND STRATEGY FOR

BRAND EXTENTION OF HITACHI (AIR CONDITIONERS) TOWARDS

DEVELOPING A BRAND EQUITY OF HITACHI TELEVISION” has been

carried out by me under the guidance and supervision of Prof S.Ramgopal,

M.P.Birla Institute of Management, Bangalore.

I also declare that this project has not been submitted to any University/Institution for the award of any Degree/Diploma. Place: Bangalore Date: RAKESH.S

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GUIDE CERTIFICATE

I hereby declare that the research work embodied in the project entitled “TO RECOMMEND STRATEGY FOR BRAND EXTENTION OF HITACHI (AIR CONDITIONERS) TOWARDS DEVELOPING A BRAND EQUITY OF HITACHI TELEVISION.” Bangalore has been undertaken and completed by Mr.Rakesh.S under my guidance and supervision. I also certify that he has fulfilled all the requirements under the covenant governing the submission of dissertation to the Bangalore University for the award of MBA degree. Place: Bangalore Date: (Prof S.Ramgopal) MPBIM,

Bangalore-1

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PRINCIPAL CERTIFICATE I hereby certify that the research work embodied in this project entitled “TO RECOMMEND STRATEGY FOR BRAND EXTENTION OF HITACHI (AIR CONDITIONERS) TOWARDS DEVELOPING A BRAND EQUITY OF HITACHI TELEVISION.” Under the guidance of Prof S.Ramgopal, MPBIM, Bangalore (Internal Guide) and Mr.Prasanth.R of Hitachi Home & life Solutions (India) Ltd. Bangalore (External Guide). Place: Bangalore Date: (Dr. N. S. Malavalli)

Principal MPBIM

������

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ACKNOW LE DGEMENT I take this opportunity to sincerely thank Prof.S.Ramgopal who

introduced me to the intriguing subject of Brand Extension and sharing his

knowledge on the subject, which is going to be instrumental in shaping my

career in the area of Brand Management.

I sincerely thank Mr.Prasanth.R (Area manager-Cons Prod Sales, Hitachi

Home & life Solutions (India) Ltd.) Bangalore office for giving me this

opportunity to undertake marketing research for Hitachi appliances.

I also thank Dr N.S. Malavalli (Principal) for giving me the opportunity to

explore my areas of interest by consistently lending support in terms of his

expertise.

Lastly, I would like to express my heart-felt gratitude to my friends who

stood by me right throughout this project and have been a constant source

for support and strength.

RAKESH.S

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&217(176�

TITLETITLE PPAGAGE E NNOO..

INTRODUCTION

1-14

RESEARCH DESIGN

15-19

COMPANY PROFILE

20-23

DATA ANALYSIS & INTERPRETATION

24-55

FINDINGS, CONCLUSION & SUGGESTIONS

56-61

BIBLOGRAPHY

62-63

ANNEXURE

64-67

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INTRODUCTION ���������������

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,1752'8&7,21��

BRAND

A brand is a name, term, sign, symbol, or design, or a combination of

them, intended to identify the goods or services of one seller or group of sellers

and to differentiate them from those of competitors.

A brand is essentially a sellers promise to deliver a specific set of features,

benefits and services consistently to the buyers. The best brand conveys a

warranty of quality. But a brand is an even more complex symbol. It can convey

up to six level of meaning:

Attributes: a brand brings to a mind certain attributes. BMW suggests

expensive, well-built, well-engineered, durable, high prestige automobiles.

Benefits: attributes must be translated into functional and emotional

benefits. The attribute “durable” could translate into the functional benefit

“I won’t have to buy another car for several years. The attribute

“expensive” translates into the emotional benefits “the car makes me

important and admired”.

Values; the brand also says some thing about the producers’ value. BMW

stands for high performance, safety, and prestige.

BRAND EQUITY

Brand equity is highly related to how many customers are in class. It is also

related, according to the degree of brand name recognition, perceived brand

quality, strong mental and emotional associations, and other assets such as patents,

trade marks and channel relationships.

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BRAND EXTENSION

A company may use its existing brand name to launch new products in

other categories. Example Honda uses its company name to cover such different

products as automobiles, motorcycles, snowblowers, lawn mower, marine engines,

and snowmobiles.

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THEORITICAL BACKDROP

DEFINATION OF MARKETING AND OTHER CONCEPTS

Marketing management is the process of planning and executing the conception,

pricing, promotion and distribution of ideas, goods, and services to create

exchanges that satisfy individual and organizational goals.

For the marketing management to work efficiently, the marketer, who is

someone who is seeking a response from other party called a prospect, must try to

understand the target market’s need wants and demands. These terms can be

defined in the following ways:

NEEDS describe basic human requirements people and food, air , water,

clothing and shelter to survive. These needs become wants when they are directed

to specific objects that might satisfy the needs.

DEMANDS are the wants for specific products, which are backed by an

ability to pay for the same. Companies must measure not only how many people

want their product, but also how many would actually be willing and able to buy

it.

Marketers do not create needs. Needs preexist marketers. Marketers along with

other societal influences, influence wants. People satisfy their needs and wants

with products. A product is any offering that can be offered to satisfy a need or

want. A product can consist of many as three components namely good, service

and idea.

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MARKETING MIX

Marketing mix is the set of marketing tools that a firm uses in order to

pursue its marketing objectives.

McCarthy popularized a four-factor classification of these tools, namely the

“4 P,s”: Product, Place, Price and Promotion. A marketing mix must be made for

both the distribution channels as well as the final consumers.

Graphical representation of McCarthy’s 4 P’s concept Place

The most basic marketing mix tool is Product. A product is a firm’s tangible offer

to market, which is inclusive of product quality, design, features, branding, and

Marketing mix

Product Product variety Channels Quality Coverage Design Features Brand names Packaging size Services Warranties

Place Assortments Locations Inventory Transport

Price List price Discounts Allowance Payment period Credit terms

Promotion Sales promotion Advertising Sales force Public relations Direct marketing

Target marketing

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packaging. A product may carry supportive services, and this can provide a

competitive market.

Another tool is Price. This is the amount of money that customers pay for the

product. The company will have to decide on wholesale and retail prices,

discounts, allowances and credit terms. Its price should be in tune with the offer’s

perceived value. If it is not, buyers will turn to competitor’s product.

Place is another important element. This includes the various activities the

company undertakes to make the product accessible and available to target

customers. Therefore, it must understand the various types of retailers, wholesalers

and physical distribution firms and how they make their decisions.

The fourth tool, namely Promotion comprises of all activities that the company

undertakes in order to communicate and promote its products to the target market.

It has to setup communication and promotion programs consisting of advertising,

sales promotion, public relations and direct and online marketing.

PRODUCTS CLASSIFICATONS

Marketers have classified products on the basis of the following

characteristics: durability, tangibility, and use (be it industrial or consumer). These

characteristics can be further explained as follows:

• Durability and tangibility

Products can be divided in to 3 groups namely:

Non-durable goods: -

These goods are tangible goods, which are consumed in one, or for few

uses for example tooth paste. Since they are consumed frequently they are to be

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made available in many in many of the locations, charge small markup, and

advertise more often.

Durable goods: -

These are tangible goods, which survive many uses for instance clothing,

book, and bags. These goods usually require more personal selling and service

command a higher margin and require more seller guarantee.

Services: -

These are intangible and normally require more quality control, supplier

credibility and adaptability.

• Usage: consumer goods classifications

The goods, which consumers buy, can be classified on the basis of shopping

habits. They can be distinguished among convenience, shopping, specialty and

unsought goods.

Convenience goods: -

These goods that the customer usually purchases frequently, immediately

and with a minimum effort. These goods can be further divided into: -

Staples: are goods consumers’ purchases on regular basis.

Impulse goods: are purchased without any planning or search effort.

Emergency goods: are purchased when there the need is urgent.

These goods are generally placed in many outlets to capture sale

when the customer needs them

Specialty goods: -

These are goods with unique characteristics or brand identifications for

which a sufficient number of buyers are willing to make a special

purchasing effort. Specialty goods do not involve making comparisons;

buyers invest time only to reach dealers carrying the wanted products.

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Dealers do not need convenient locations, however they must let

prospective buyers know their locations.

Shopping goods: -

These are goods that the customer in the process of selection and purchase

characteristically compares on such basis as suitability, quality, price and

style. For example clothing, bags. These goods can be divided into:

Homogeneous shopping goods: these are similar in quality, but

different enough in price to justify shopping comparisons.

Heterogeneous shopping goods: they differ in product features and

services that may be more important than price. The seller of

heterogeneous shopping goods carries a wide assortment to satisfy

individual tastes and must have well-trained sales people to inform

and advice customers.

PRODUCT MIX

A product is any offering that can satisfy a need or a want and a product mix is the

set of all products and items that a particular seller offers for sale.

A company product mix has a certain width, length, depth and consistency:

The width of a product mix refers to how many different products line the

company carries.

The length of a product mix refers to the total number of items in mix.

The depth of a product mix refers to how many variants are offered in each

product in the line.

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The consistency of the product mix refers to how closely relate the various

product lines are in the end use, production requirements, distribution channels or

some other way.

Culture: the brand may represent a certain culture. The BMW represents

german culture: organized, efficient, high quality.

Personality: the brand can project certain personality. BMW may suggest a

no-nonsense boss (person), a reigning lion (animal), or an austere palace

(object).

User: the brands suggest the kind of consumer who buys or uses the

product. We would expect to see a 55-year-old top executive behind the

wheel of a BMW, not a 20-year-old secretary.

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THE INDIAN AIR CONDITIONING INDUSTRY

In the past, the air conditioning (AC) industry reeled under a regime of high

taxation, which effectively acted as a damper to growth. The scenario underwent a

dramatic change in the 90’s with economic reforms and liberalization. Growing

industrialization and an expanding middle class with higher disposable incomes

led to a growth in air conditioners demand. With the environmental conditions

deteriorating in many of our cities due to increase in traffic density, population

growth and reduction in foliage cover, the consumer demand for these gadgets has

registered a substantial increase. Secondly, with heavy investments coming in the

information technology and telecom sector and a renewed governmental initiative

on strengthening agricultural infrastructure (cold storage), institutional demand for

air conditioners (ACs) has increased.

TYPES OF ACs

Various air conditioners available in different capacities to cater to different needs.

The basic types of air conditioners available in the market are

Window air conditioners:

These are suitable for small rooms with a negligible heat load. These are

easily fitted on window openings. The most popular sizes of window air

conditioners are 0.75 ton, 1.5 ton and 2.0 ton.

Split air conditioners:

The basic difference between window and split AC is that the compressor

of the later is placed away from the room to be cooled and connected with the

room-cooling unit with insulated piping. These can be placed on walls, floors and

ceiling. And they can generally be located according to the shape and requirement

of the room not necessarily by the location of windows.

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Vertical split AC:

These are the vertical indoor units that can be placed near the corners the

room so that the cool sir can be evenly distributed. Cooled vertical because of

being vertical and cooling, these machines are available in 3-ton capacities and are

ideally suited for shops, showrooms, restaurant and plan offices and medium sized

public areas.

Ducted splits:

These are designed to give the ultimate comfort and style of central AC.

The costs of installing these are comparatively higher because of the need to build

false dealing and ducting. These units are comparatively hidden away from view.

Only the cooling comfort is felt.

Centralized AC:

The central AC segment is more technology intensive and project oriented.

It caters mainly to institutional clients where capacity requirements are usually 50

TR and upwards.

DEMAND & SUPPLY

Present installed capacity of the industry (for Window ACs) is in the region of

0.75 million nos per annum. Correspondingly, the industry registered a sale of just

over 0.7 million units during 2003-04, as shown below:

Sales of windows ACs

Company 2003-2004

Carrier 110000 Blue star 100000

Voltas 98000 Hitachi 97500

Samsung 88700

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LG 76300 Videocon 62000

Others 98900 TOTAL 731400

Over the next two years, additional capacities to the tune of 0.45 million units is

expected to be added, bringing the total installed capacity of window ACs in the

country to 1.50 million units.

Considering that the overall demand growth rate will be around 20%, it would

amount to only 1 million units per annum by the year 2005. With new players

crowding the market, this would result in fierce battle for market share. Future

growth for central ACs is dependent largely on new user industries like software;

telecom, hotels, and food processing etc. the industry may witness a shake out of

marginal players with those having established brand names, financial strength

and strong marketing credentials surviving the game.

Air conditioner market update

The performance of the economy, in general, also has an influence over AC

sales. In a high growth economy, rising profits would induce the infrastructure and

commercial sector to go in for air conditioning systems.

The nature of industry is changing, due to environmental and energy concerns.

Under the 1990 Montreal protocol, all producers of ACs have to stop using ozone-

depleting substances from 2003 onwards. Indoor air quality is also emerging as an

important issue, which may lead to paradigm shifts in technology for cooling air.

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INDIAN TELEVSION INDUSTRY

India has the world’s larg est middle class of 200 million people of which 50

million are classified as big-ticket buyers. It is this group which is fuelling growth

in the economy. According to Socio Economic Classification, the groups SEC A

and SEC B represent educated urban consumers, making up 5.88 million

households in sixteen cities. More than 75% of SEC A and B homes live in eight

cities of India, and receive the greatest attention in respect of trendy and lifestyle

products. Today, over 35 million homes comprise the effective consumer base for

durables like automobiles, white goods, and consumer electronics

About 5 million color TV sets are sold in India each year. There are 51 million TV sets

in India and 30million Cable TV connections.

Competition hots up as more companies come in

In what is possibly the most fiercely competitive field in the country, involving

around 15 brands, it is the dramatic build-up of volumes that has sustained the

companies, especially in the last four years. During these years, the prices of

colour televisions have plunged while marketing costs have escalated

continuously, putting enormous pressure on the margins. Therefore, survival of

most of the colour television companies has meant increasing volumes

relentlessly. This was possible because the market grew at a compounded rate of

28 per cent for the last seven years.

25% growth in TV 18 Feb 2004

The Confederation of Indian Industry says in a survey that the leading drivers of

the country's manufacturing base are TV sets and computers, over the first six

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months of 2004. In the last six months of 2004, colour TV production expanded

25%, with the same order of growth expected in the first half of 2005.

Local TV brands dominate the domestic market, led by BPL, the market leader.

While Sony India markets itself as a premium brand, with a tiny share, Korea's LG

and Samsung have been making a strong challenge with aggressive advertising.

Indian consumers are extremely brand conscious, which has been a big help to the

Koreans but less so to Chinese TV makers. Despite low price offers, Chinese

companies have been hampered by poor joint venture partnerships, weak

distribution networking and inadequate investment in brand building.

Chinese TV makers entering the Indian market in the late 1990s included TCL,

Konka and Haier, but they have yet to hit anything like the potential that they have

found domestically on the Chinese mainland.

But with droughts easing, economists and manufacturers expect pent-up demand

to take up the trend for PC and TV sales strongly into the coming year.Indian TV

manufacturers are facing intense competition, not just from Japanese and South

Korean producers, but also from Chinese TV makers. A proliferation of satellite

and cable channels only appear to have gone so far in promoting demand, with

price cutting and greater choice of better models eating into profits.

Of the 12 or so Indian manufacturers, two companies are market leaders - BPL

and Videocon with a combined share of 28%. That's down from 35% in better

times.

South Korean producers LG and Samsung have been eating into market share,

with an aggregate 21%, relying on a wide range of models and sophisticated

distribution and after-sales services. These companies are also developing a local

manufacturing base to keep overheads down.

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Chinese TV makers have also made inroads, lead by TCL, Konka and Haier. But

despite offering lower prices than their foreign competitors, they appear to have

been let down by weak branding and distribution. Despite being price sensitive,

the Indian market is also very branding conscious. So the top Chinese brands have

been unable to meet the challenge provided by larger and more determined

marketing strategies.

Sony aims at flat screen demand

On the other hand, Japanese giant Sony has emphasized premium quality in

maintaining its admittedly small market share. Encouraged by the demand for flat

screen TVs, the company is considering concentrating only on these models. The

problem is that Sony's imported Trinitron picture tubes attracts a 35% import duty,

which puts the company at a disadvantage where it comes to price pressure.

BPL and Videocon have invested heavily in manufacturing plants and technology

to challenge foreign imports. The Indian giants also have wide distribution

networks and increasingly strong after-sales services on their side.

A wide range of products appears to be a key component to getting consumers to

switch brands. But this does contain a negative element, as retailers are an often

multi-brand dealer which means manufacturers have been forced to open exclusive

retail outlets, pushing up distribution costs.

A new trend seems to have emerged, as the Indian market has stagnated. Some

manufacturers, notably Samsung India, have been looking to take advantage of

low production costs to export TVs to Europe.

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RESEARCH DESIGN ��������������������������������

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��STATEMENT OF PROBLEM The nature of this research is to identify opportunities for introducing

Hitachi brand television sets to the market. Thus project work deals with research

of the market to enable recommendation of strategies for brand extension of

Hitachi (AC) towards developing brand equity of television.

SCOPE OF STUDY

The study is conducted in the city of Bangalore over a period of two

months. It is intended to provide Hitachi with a good idea of the advantage of

brand extensions.

If the extensions are feasible within the constraints present, then television sets of

Hitachi brand will be launched.

OBJECTIVES

Primary objective

To determine the feasibility of brand extension of Hitachi AC for Hitachi

televisions.

Secondary objective

To determine effective strategies for extensions from the company after a

thorough study.

To understand the consumers perception towards brand Hitachi.

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SAMPLING UNIT

The basic unit of study used here is members of households who are either

decision makers or influence purchase decision to a large extent.

SAMPLE SIZE

Keeping in view of limited time, a sample of 100 respondents is taken.

It includes a mix of people from different income groups and occupations.

TOOLS AND TECHNIQUES USED FOR DATA COLLECTION

Primary data: the primary tool used for data collection is a structured

questionnaire. It contained qualitative and quantitative research questions to

understand the consumer attitude and perception towards brand extension.

Secondary data: books, magazines and internet have been used as secondary

source of data.

PLAN OF ANALYSIS

The data was tabulated and analyzed. The data is then interpreted and analysis is

done.

LIMITATION OF STUDY

* The study is limited to Bangalore city only. Findings and interpretation

thereof may not be applicable to other geographical locations.

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* It is a one time study.

* Field error- respondents may have provided responses, which differ from

what is actually true or correct.

CHAPTER SCHEME

The overview of the chapter scheme is as follows:

Chapter 1 : Introduction

Provides details of the topic under study and presents a short

theoretical back drop for the study.

Chapter 2 : Design of the study

Gives details about the statement of the problem, the scope of

the study, its objectives, the sample studied, the tools and

techniques used for data collection.

Chapter 3 : Profile of Hitachi home appliances (India) ltd.

This chapter gives the details of the organization Hitachi

Company.

Chapter 4 : Analysis of data

Includes the analysis of the data collected in the survey.

Relevant inferences are drawn from the analysis and are

presented in the chapter.

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Chapter 5 : Summary of findings, conclusion and recommendations

This chapter gives the summary of the finding drawn from the

survey and the relevant conclusions arrived at the same. It

also includes some suggestions.

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COMPANY PROFILE ��

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Hitachi, Ltd. first started out in 1910 as a humble electrical repair shop for a

copper mining company in Japan. The name Hitachi literally means "sunrise",

reflecting the founding philosophy of contributing to people and society through

technology. This philosophy has helped Hitachi become one of the world's largest

corporations today, employing approximately 340,000 employees globally.

In Singapore, Hitachi started with a liaison office in 1963 and expanded its

operations in 1972 to manufacture a wide range of products. In 1989, Hitachi Asia

Ltd. (previously Hitachi Asia Pvt. Ltd.) was established as one of Hitachi's four

regional headquarters with the other three in America, Europe and China. In 1990,

the company was awarded the Operational Headquarters (OHQ) status by the

Singapore Economic Development Board (EDB).

Hitachi’s relationship with India began in the year 1948. Later in 1974, Hitachi

opened a liaison office in New Delhi. Hitachi India Pvt. Ltd. and Hitachi India

Trading Pvt. Ltd. were set up in1997 (after take over of Hitachi liaison office) as

wholly owned subsidiary of Hitachi Asia Ltd, Singapore (HAS). HAS is one of the

four regional headquarters for Hitachi’s worldwide operation, the other three being

in North America, Europe and China.

Hitachi India Pvt. Ltd. (HIL) markets and sells products ranging from power and

industrial systems, information systems to electronic components as well as takes charge

of international procurement of materials and components. Their products include

semiconductors, electronic tubes, elevators and escalators, air conditioning and

refrigerating equipment, computers, telecommunication equipment and plant and

industrial machinery .They also provide a wide range of technical services in support of

these products.

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Business Activities

As regional headquarters, Hitachi Asia Ltd. (HAS) co-ordinates the marketing and

sales activities for IT, industrial, electrical and electronic products and solutions,

as well as conducts international procurement for Hitachi's manufacturing plants

worldwide. Since its establishment, HAS has grown rapidly both in operations and

size. It now has a network of 12 offices in eight countries across Asia Pacific, and

an annual sales turnover of approximately S$4.7 billion in fiscal year 2004 (ended

31 March 2005).

To diversify and expand its business operations, HAS has also vested interests in

regional ventures ranging from manufacturing facilities to trading companies,

design and customer service centers. In 1998, HAS was converted from a private

limited to a non-listed public company and granted Financial Treasury Center

status by Monetary Authority of Singapore (MAS) to enable it to issue bonds. The

conversion was aimed at strengthening its ability to provide financial support to

the Hitachi group in Asia.

Hitachi brand ACs is being manufactured by amtrex Hitachi appliance limited in

India. A joint venture agreement was signed in January 1999, with amtrex and

Hitachi as equal partners, each holding a 35.2 percent share of equity. Amtrex was

renamed as “Amtrex Hitachi appliances limited”.

Hitachi Home & life solution (India) Ltd., a subsidiary of Hitachi Home & life

Solutions, Inc., Japan, was first established in 1984. Headquartered in Gujarat. The

company’s manufacturing facilities at kadi and silvassa are among the seven

Hitachi room air conditioner facilities worldwide. The Indian plant also exports

Hitachi room air conditioners to the SAARC, Middle East and other tropical

countries in addition to catering to the Indian market.

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With sales of Rs.256.48 crores during the year Oct. 01- Sept 02, Hitachi H & L

India amongst the top three room air conditioner companies in India and has a

nationwide sales, distribution and service networks with 14 branch offices in

major Indian cities. Hitachi H & L is also a significant player in the commercial

refrigeration business in India with its manufacturing facility in kadi and strategic

alliances with IMI Corneius, UK and Orford Refrigeration, Australia.

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DATA ANALYSIS & INTERPRETATION

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The research has been conducted to recommend a strategy for brand

extension of Hitachi (air-conditioners) towards developing brand equity of

televisions. The data has been collected through respondents’ responses to a

structural questionnaire issued to a random selection of customers of ‘Hitachi’ air -

conditioners.

The database of ‘Hitachi’ customers was obtained from Hitachi Home & Life

Solutions (India) Ltd. Further, the respondents have been chosen carefully in such

a manner that randomness has been ensured in their selection. The responses

collected through the questionnaire have been tabulated and analyzed.

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TABLE - 1

TABLE SHOWING THE RESPONDENTS AGE GROUP

AGE NO OF RESPONSES PERCENTAGE (%)

21-25 13 13

26-30 22 22

31-35 21 21

36-40 25 25

40 & above 19 19

TOTAL 100 100

Analysis: From the above table it can be noticed that age group of 36-40 years are

major respondents for our research with 25%. And then it is followed by age

group of 26-30 and then by 31-35. But the brand awareness about the brand

HITACHI is finding in all age group.

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GRAPH-1

GRAPH SHOWING THE RESPONDENTS AGE GROUP

NO OF RESPONSES

0

5

10

15

20

25

30

21-25 26-30 31-35 36-40 40 & above

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TABLE-2

TABLE SHOWING THE GENDER OF RESPONDENTS

GENDER NO OF RESPONSES % Male 67 67 Female 33 33

TOTAL 100 100 Analysis: From table it is clear that males are the major respondents with 67% and

followed by females with 33%. Though there is huge difference in male and

female percentage but the response of male and female are taken considered

equally for the analysis.

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GRAPH-2

GRAPH SHOWING THE GENDER OF RESPONDENTS

0

10

20

30

40

50

60

70

80

NO OF RESPONSES

MaleFemale

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TABLE-3

TABLE SHOWING THE MARITAL STATUS OF RESPONDENTS MARITAL STATUS NO OF RESPONSES %

SINGLE 27 27 MARRIED 73 73

TOTAL 100 100 Analysis: The above table indicates that 73% of our respondents are married and 27%

of our respondents are unmarried. Majority of respondents are married and more

of double incomes couples and thus it is clear that income plays major role in any

purchases.

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GRAPH-3

SHOWING THE MARITAL STATUS OF RESPONDENTS

0

10

20

30

40

50

60

70

80

NO OF RESPONSES

SINGLEMARRIED

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TABLE-4

WHAT ARE THE CONSUMER DURABLES YOU HAVE PURCHESED LAST 3-5 YEARS?

DURABLES NO OF RESPONSES Mobile phones 72 Others 56 Television 39 Music systems (VCD/DVD) 34 Washing machine 21 Refrigerator 19 Analysis: From the table we can see that maximum of our respondents have brought

mobile phones with 72 respondents out of 100 then followed by others with 56

responses which includes ACs, mixture, & so on. Television is the next

consumer durable with 39 respondents purchased in last 3-5 years. Purchasing

mobile phones in last 3-5 years, reason for this would be that mobile phones

are becoming necessities. Next followed by music systems and televisions.

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GRAPH-4

0

10

20

30

40

50

60

70

80

NO OF RESPONSES

Television

Refrigerator

Mobile phones

WashingmachineMusic systems(VCD/DVD)Others

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TABLE-5

DO YOU KNOW THE BRAND “HITACHI”?

AWARENESS NO OF RESPONSES % Yes 88 88 No 11 11

Total 100 100

Analysis: From the above table we can analyze that 88% of our respondents know the

brand Hitachi. Only a small percent of our respondents are not aware of brand

Hitachi.11% of respondents are not aware of the brand HITACHI. And it is

noticed that there is high percentage of unawareness in male.

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GRAPH-5

0102030405060708090

100

NO OF RESPONSES

YesNo

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TABLE-6

HOW OFTEN YOU CONSIDER REPLACING A TELEVISION?

YEARS NO OF RESPONSES % 2-4 11 11 5-7 49 49 8-10 27 27 10 & above 13 13

TOTAL 100 100

Analysis: The table above shows that our respondents feel replacing their television

after 5-7 years. About 27% of our respondents said that they replace their

television after 8-10 years. The reason we find is that, change in technology with

fall in price. And it again depends on the individual perception towards the

television.

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GRAPH-6

0

10

20

30

40

50

60

NO OF RESPONSES

2 to 4 yrs5 to 7 yrs8 to10 yrs10 & above

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TABLE-7

WHO INFLUENCES THE MOST WHILE PURCHISING THE TELEVISION?

NO OF RESPONSES % Children 36 36 Wife 12 12 Husband 9 9 House holds/entire family 13 13 Friends 13 13 Others 17 17

TOTAL 100 100 Analysis: From the above table we can notice that children lead in decision-making

while purchasing television with 36% & rest of the members of the family shares

almost equal percent of decision making in purchase. Children in a family play a

major role in purchasing the television. Reason for this above result are- high

percentage of our respondents is married.

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GRAPH-7

0

5

10

15

20

25

30

35

40

NO OF RESPONSES

Children

Wife

Husband

Households/entirefamilyFriends

Others

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TABLE-8

RATE THE FOLLOWING FACTORS YOU CONSIDER BEFORE MAKING YOUR PURCHASING DECISION ON TELEVISION?

Very important Fairly important Not important BRAND 81 12 7 PRICE 57 30 13 FEATURES 50 48 2 AFTER SALES SERVICE 68 27 5 IMAGE OF SHOWROOM 23 24 53 GURANTEE/WARRANTY 90 10 -

Analysis: Above table clearly shows that brand and guarantee is very important for

our respondents. Then comes the after sales service. Image of showroom is not a

major consideration for our respondents. Consumers also prefer for brand, & after

sales service in any purchase of television.

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GRAPH-8

0

10

20

30

40

50

60

70

80

90

100

BRAND

PRICE

FEATURES

AFTER SALE

S SERVIC

E

IMAGE O

F SHOW

ROOM

GURANTEE/WARRANTY

Very importantFairly importantNot important

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TABLE-9

WHAT ARE THE TELEVISION BRANDS ARE YOU AWARE OF?

BRANDS NO OF RESPONSE % Samsung 24 24 LG 21 21 Sony 17 17 Philips 6 6 Videocon 9 9 Others 23 23

Analysis: From the table we can notice that Samsung and LG brands are well-noticed

brands in television. Samsung with 24% & LG with 21%. Maximum respondents

are aware of Samsung & LG; reason for this would be the advertisements that they

are giving.

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GRAPH-9

0

5

10

15

20

25

30

NO OF RESPONSE

SamsungLGSonyPhilipsVideoconOthers

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TABLE-10

DO YOU FIND ANY SIGNIFICANT DIFFERENCE BETWEEN THE FEATURES OFFERED BY DIFFERENT BRANDS? NO OF RESPONSE % Yes 52 52 No 48 48

TOTAL 100 100 Analysis: From the table we can notice that there is not much difference in the

respondents view to this questionnaire. Since every brand gives almost the similar

features in their television, it’s really hard to come to the conclusion from the

above data.

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GRAPH-10

46

47

48

49

50

51

52

NO OF RESPONSE

YesNo

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TABLE-11

DO YOU USE ANY OF HITACHI PRODUCTS? IF YES, MENTION THE PRODUCT? NO OF RESPONSES % Yes 32 32 No 68 68 Analysis:

Only 32 out off 100 respondents are using HITACHI products at their

homes. Since air conditioning is the only product available in Indian market our

maximum respondents are using this product. Only few of our respondents are

using products like television & music systems other than air conditioning.

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GRAPH-11

0

10

20

30

40

50

60

70

80

NO OF RESPONSES

YesNo

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TABLE-12

WOULD YOU CONSIDER BUYING TEEVISION OFFERED BY THE HITACHI? NO OF RESPONSES % Yes 88 88 No 12 12 Analysis:

From the data collected we could come to conclusion that 88% of or

respondents would like to buy HITACHI television. But in this 88% of

respondents would consider as a second option or an additional to their family

requirement. But 12% of respondents said that they don’t want to consider Hitachi

television even for second option because they feel that Hitachi television cannot

be good as brands like Sony, Samsung and soon.

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GRAPH-12

0102030405060708090

100

NO OF RESPONSES

YesNo

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TABLE-13

WHAT OTHER NEW PRODUCTS OF HITACHI WOULD YOU CONSIDER BUYING? NO OF RESPONSES % Television 30 30 Music system 15 15 Kitchenware 12 12 No response 43 43 Analysis:

Other than television our respondents even like to have a products like

music systems and kitchenwares. Maximum of our respondents were not able to

think of any products under brand HITACHI.

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GRAPH-13

05

101520253035404550

NO OF RESPONSES

TelevisionMusic systemKitchenware No response

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TABLE-14

WHAT ARE THE FEATURES WOULD YOU LIKE TO HAVE IN YOUR NEW TELEVISION?

RESPONSES Personal folder 11

Design/attractive 6 No response 63

Analysis: Most of our respondents could not able to answer to this question. A very

few respondents could think about and said they like to have personal folder and

impressive design.

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GRAPH-14

0

10

20

30

40

50

60

70

RESPONSES

Personal folderDesign/attractiveNo response

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TABLE-15

WHERE DO YOU PREFER TO PURCHASE TELEVISON? NO OF RESPOSES % Company showroom 23 23 Multi brand show room 67 67 Exhibition/trade show 4 4 Exclusive sales service 6 6

TOTAL 100 100

Analysis: From the above table we can analyze that about 67% of respondents want

to make their purchase in multi branded show room then followed by company

show room with 23%. Consumers like to compare their choice of television before

they confirm purchasing of one particular brand and hence they to purchase

television in multi branded showroom.

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GRAPH-15

0

1020

3040

50

6070

80

NO OF RESPOSES

CompanyshowroomMulti brandshow roomExhibition/trade showExclusivesales service

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FINDINGS,

CONCLUSION & SUGGESTIONS

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The research has been conducted to recommend a strategy for brand

extension of Hitachi (air-conditioners) towards developing brand equity of

televisions. The data has been collected by way of structural questionnaire.

The responses collected through the questionnaire have been tabulated and

analyzed. The relevant findings and observations are presented in this chapter.

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SUMMARY OF FINDINGS

• Majority of respondents are married and more of double incomes couples.

• Maximum of our respondents have purchased mobile phones in last 3-5

years, reason for this would be that mobile phones are becoming

necessities. Next followed by music systems and televisions.

• 88% of our respondents are aware of brand HITACHI. And 11% of

respondents are not aware of the brand HITACHI.

• 49% respondents considered replacing their appliances every 5 to 7 years.

• Children’s in a family plays a major role in purchasing the television.

• Most of our consumers would give preference for brand, after sales service

and guarantee in any purchase of television.

• Only about 32% of our respondents are using Hitachi products compared to

the brands like Samsung, LG and soon.

• 88% of our respondents are willing to purchase Hitachi television. But 12%

of our respondents said that they don’t want to consider Hitachi television

even for second option because they feel that Hitachi television cannot be

good as brands like Sony, Samsung and soon.

• Consumers like to compare their choice of television before they confirm

purchasing of one particular brand and hence they to purchase television in

multi branded showroom.

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• Brands such as LG, Samsung, Sony, Philips and BPL enjoyed very high

customer awareness.

• High percentage of respondents agreed that id a brand offers more products;

it gains more attention of the buyer.

• Respondents consider dealers’ advice as being fairly important which

indicates that modern customer considers himself well informed and thus

feels confident of making the right choice on his own.

• Consumers would seriously consider buying other products of a brand if

they were extremely satisfied with one product of the brand. This indicates

that brand extension has worked as an effective strategy in the Indian

consumer durable market.

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CONCLUSION

The primary objective of this study was to determine the feasibility of brand

extension of television for Hitachi appliances.

The findings were recorded based on collection of data and analysis. Based on the

analysis and findings, the following conclusions have been made:

This study has enabled me to understand the various intricacies that go into

understanding buyer behavior regarding consumer durables. The industry, which

had hitherto few major players, has today exploded into a battleground with major

players vying with each other to get buyers’ attention.

The customer today is bombarded with advertisements and endorsements that

promise value for money. Most respondents even seemed confused at the mélange

of brands in the market today.

Brand extension seems to have worked exceedingly well for brands like LG &

SAMSUNG though it remains to be seen whether the market is saturated for such

a strategy. On the whole respondents did showed a positive response towards

brand Hitachi.

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SUGGESTIONS

• Television presents the most promising opportunity for Hitachi in

terms of brand extension. Hence there is still huge lower middle

class market, which is untapped.

• Company must work on its image. Emotional advertising has

worked well for the other brands and while suggesting that it may

be stupid for the company to change its marketing pitch

overnight, it would be useful for Hitachi to make advertisements

that appeal to the masses emotionally while promoting the

technology strength of the product.

• An innovative display of television definitely appeals to eye of the

discerning buyer. Since most respondents preferred making a

purchase from multi-brand showrooms where different brands are

displayed.

• An innovative sales promotion schemes effectively timed during

peak or festive seasons. Because nothing catches the attention of

the Indian buyer as much as a lucky draw or other sales promotion

offers.

• As mentioned in the study, performance, durability, after sales

service and guarantee/warranty are the main factors besides

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brands that determine the product that the customer will purchase.

A product that fulfils the expectations of the customer with respect

to the above mentioned factors.

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BIBLIOGRAPHY

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%%,,%%//,,22**55$$33++<<����

BOOKS: Philip kotler; Marketing Management; The Millennium Edition; Prentice Hall

of India Pvt. Ltd.; New Delhi; 2000.

S.A.Sherlekar; P.N.Reddy; H.R.Appanaiah; Essentals of Marketing

Management; Fourth Edition; Himalaya Publishing House; Mumbai;1993

WEBSITES: www.hitachi-hli.com www.project.com

��

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ANNEXURE

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QUESTIONNAIRE

Age- Sex- Marital Status- What are the consumer durables you have purchased in last 3-5 years? Television Refrigerator Mobile phones Washing machines Music systems (VCD/DVD) Others Do you know brand HITACHI? Yes No How often you consider replacing a television? YEARS 2-4 5-7 8-10 10 & above Who influences the most while purchasing the television? Husband

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Wife Children House holds/ entire family Friends Others Rate the following factors you consider before making your purchase decision on television? VERY

IMPORTANT FAIRLY IMPORTANT

NOT IMPORTANT

Brand Price Features After sales service Image of showroom Guarantee/warranty What are the brands are you aware of in televisions? Do you find any significant difference between the features offered by different brands? Yes No Do you use any of HITACHI products? If yes, mention the product? Would you consider buying television offered by the HITACHI? Yes No What are the other products of HITACHI would you consider buying?

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What are the features would you like to have in your new television? Where do you prefer to purchase television? Company showroom Multi-brand showroom Exhibition/trade show Exclusive sales & Service