report on carrier air conditioning & refrigeration ltd

Table of Contents

ABSTRACT ............................................................................................................................................... 2

INTRODUCTION ....................................................................................................................................... 3

AIR-CONDITIONING MARKET IN INDIA ..................................................................................................... 4

MARKET SHARE ....................................................................................................................................... 5

COMPANY PROFILE.................................................................................................................................. 7

SERVICE QUALITY .................................................................................................................................... 8

MODEL OF SERVICE QUALITY GAP ........................................................................................................... 9

MAIN TEXT ............................................................................................................................................ 11

SWOT ANALYSIS .................................................................................................................................... 14

QUESTIONNAIRE DESIGN ....................................................................................................................... 15

APPENDIX .............................................................................................................................................. 16

REFERENCES .......................................................................................................................................... 21

ABSTRACT

Businesses have long sought to distract and attract the attention of potential customers

that live in a world of ever-increasing commercial bombardment. Indian air conditioning

industry is dominated by a number of players reflects the changing dynamics of

consumer behavior – luxury goods are now being perceived as necessities with higher

disposable incomes being spent on lifestyle products. There is a discernible shift in the

consumer preference in favor of high-end, technologically superior branded products, the

demand being spurred by increasing consumer awareness and preference.

This project focuses on studying the gaps in order to find out the needs of the dealer

enabling end-user satisfaction. Carrier, the world's largest producer of heating, ventilating

and air conditioning equipment, was UTC's second largest employer in India. In the US,

Carrier produces a residential air-conditioning unit every six seconds. It caters to

different market segments.

So my project focuses on studying the Kolkata AC market, where I have to study the

different competitors of Carrier air conditioners and do a comparative analysis with

Carrier. Than I have to proceed to the exclusive dealer Aircare Enterprises assigned to

me, where I have to do a day-to- day monitoring of the operations of the dealer, study

there organization structure, and to recommend a strategy for the business development.

This project would help the organization to recognize and reduce the various gaps that

exist between the dealer and the company, the dealer and the end customer; the important

variables which consumers do keep in mind while purchasing the air conditioner. All this

will lead to the formulation of a strategy for business development for the dealer,which

will in turn lead to the business development of the Organization.

INTRODUCTION

Objective of the Project : The objectives of the project are given inline :

To study the service quality of “Carrier”.

Analysis of SERVQUAL using 7-gap model. To identify

the key buying factors of the lost customers

To recommend the strategy for business development that

will cater to the current and future needs of the lost

customers of the respective dealer( Aircare Enterprises).

Methodology : Methodologies for this project are given below :

Collection of primary data from the exclusive dealer assigned to me.

Collection of data for competitor brands from all parts of Kolkata in

order to prepare a comparative chart with Carrier.

Network Analysis of the various dealers of Carrier as well as its

competitors in different parts of Kolkata.

Gap analysis in order to identify the needs of the dealer and the

customers.

Business Model Design( i.e. value proposition, target customer

segment)

Limitations: There are a few limitations to this study

Time Constraint: As the duration of the project is 14 weeks so the survey cannot be

conducted on a very large sample size.

Area : As the research is carried out in Kolkata,the result may not represent the same

views as in the other parts of the country.

Linguistic Barriers : Problem of communication for not having a grasp over the local

language.

Co-operation : Co-operation of the dealer as well as the customers cannot be predicted.

Plus the information provided by them is not always correct.

AIR-CONDITIONING MARKET IN INDIA

The size of the air-conditioner industry in India is about Rs 2,000 crore. 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-conditioners

and ducted splits -- is mostly from the corporate

AIR CONDITIONER- PRODUCT TREE

MARKET SHARE

MARKET SHARE OF SPLIT AC

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.

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. Within the split

segment the market condition is as shown below in the pie-chart.

lg41%

voltas19%

samsung13%

hitachi11%

carrier9%others

7%

Market Share of Split AC Market

MARKET SHARE OF WINDOW AC MARKET

LG rules the window AC segment again with 35%.Followed closely by Samsung with

14%. Voltas and Videocon have a share of 13% and 8% respectively. And Carrier is

growing fast with a 5% share.

lg35%

samsung14%

voltas13%

videocon8%

hitachi7%

carrier5%

others18%

Market Share of Windows AC Market

lg

samsung

voltas

videocon

hitachi

carrier

others

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 owns

96% 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 visi 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

& refrigeration solutions.

SERVICE QUALITY

Managers in the different sector specially service sector are under increasing pressure to

demonstrate that their services are customer focused and that continuous performance

improvement is being delivered. It is therefore essential that customer expectations are properly

understood and measured and that, from the customers’ perspective, any gaps in service quality

are identified. This analysis then assists a manager in identifying cost –effective ways of closing

service quality gaps and of prioritizing which gaps to focus on.

One of the aims of this study involves the use of SERVQUAL instrument in order to

ascertain any actual or perceived gaps between customer expectations and perceptions of the

service offered.

Service quality can be defined as “the collective effect of service performances which determine

the degree of satisfaction of a user of the service”

Dimensions of service quality

Reliability

Tangibles

Responsiveness

Assurance

Empathy

SERVICE QUALITY DIMENSIONS: A PICTORIAL VIEW

Edvardsen, B., Tomasson, B. and Ovretveit , J. (1994), Quality of Service: Making it Really Work,

McGraw-Hill, New York, NY.

MODEL OF SERVICE QUALITY GAP

MODEL OF SERVICE QUALITY GAP

Parasuraman et al., Curry, 1999;Luk & Layton,2002

Gap 1: Customer’s expectations versus management perceptions: a result of the lack

of marketing research orientation, inadequate upward communication and too many

layers of management.

Gap2: Management perceptions versus service specifications: a result of inadequate

commitment to service quality, a perception of unfeasibility, inadequate task

standardization and an absence of goal setting.

Gap3: Service specifications versus service delivery: a result of role ambiguity and

conflict, poor employee-job fit and poor technology-job fit, inappropriate supervisory

control systems, lack of perceived control and lack of teamwork.

Gap4: Service delivery versus external communication: a result of inadequate

horizontal communications and propensity to over-promise.

Gap5: The discrepancy between customer expectations and their perceptions of the service delivered: a result of the influences exerted from the customer side and the

shortfalls (gaps) on the part of the service provider. In this case, customer expectations

are influenced by the extent of personal needs, word of mouth recommendation and past

service experiences.

Gap6: The discrepancy between customer expectations and employees’ perceptions: a result of the differences in the understanding of customer expectations by front-line

service providers.

Gap7: The discrepancy between employee’s perceptions and management

perceptions: a result of the differences in the understanding of customer expectations

between managers and service providers

What is Satisfaction?

Satisfaction = function of {Expectation and Perceived delivery}

A person is said to be dissatisfied when the perceived delivery is lower than expectation;

he/she is satisfied when they match; delighted when the delivery exceeds expectation and

astonished when the delivery far exceeds expectation. The following equations explain

these relationships.

Perceived Delivery < Expectation --> Dissatisfaction

Perceived Delivery = Expectation --> Satisfaction

Perceived Delivery > Expectation --> Delight

Perceived Delivery >> Expectation --> Astonishment

MAIN TEXT

This project focuses on studying the gaps in order to find out the needs of the dealer

enabling end-user satisfaction. The purpose of the report is to list down all the

information that will be gathered during the course of completion of the project. The

report talks about the company, the various aspects relating to customer needs, leading to

dealer satisfaction, finding out the gap between the expected and perceived service and

finally about how the company should position its product so as to cater the needs

efficiently to create “Customer Satisfaction”.

www.kiwipumps.com/customer-satisfaction.html

http://www.kiwipumps.com/customer-satisfaction.html

The following processes need to be accomplished in order to fulfill the aim of the project

successfully.

Understand the customer behavior particularly their key buying factors.

Analysis of the “gaps” between the different levels, that will be the basis for

customer satisfaction.

To recommend the strategy for business development that will cater to the current

and future needs of the lost customers of the respective dealer( Aircare

Enterprises).

NETWORK ANALYSIS - A network analysis of the air conditioning dealers all over

Kolkata is done in order to know the technical specifications, prices ,etc, of the various

competitor brands like LG, Hitachi, Samsung, Blue star, Voltas, Daikin. I collected

information from about 21 dealers from all over Kolkata, which I have presented in a

tabular form below. The various places visited in Kolkata were Garihat, Golpark, Behala,

Ultadanga, Maniktala, Park Street, AJC Bose Road, Beck Bagan Mithai, Howrah, Prince

Anwar Shah Road, Kankurgachi.

DEALERS IN KOLKATA SAMSUNG LG HITACHI CARRIER OTHERS

GARIHAT

1. ANAND MELA YES YES YES YES

2.CAPITAL ELECTRONICS YES

YES

3.HEERA DEEP YES YES YES

GOLPARK 1.MULTICHANNEL ELECTRONICS YES YES

2.SHREYA DISTRIBUTORS YES

BEHALA

1.SALES EMPORIUM YES YES YES

2.FAIRDEAL YES

YES

3.JOY REFRIGERATION YES YES

4.CAPITAL ELECTRONICS

YES

ULTADANGA

1.ACCUMEN YES

2.CAPITAL ELECTRONICS YES

3.SALES EMPORIUM YES YES

MANIKTALA

1.GOLDEN TRADING CO. YES

PARK STREET

1.KHOSLA ELECTRONICS YES

AJC BOSE ROAD

1.CRYSTAL REFRIGERATION YES

BECK BAGAN-MITHAI

1.KHOSLA ELECTRONICS YES YES

HOWRAH

1. KHOLSA ELECTRONICS

PRINCE ANWAR SHAH ROAD

SPENCERS YES YES YES YES

KANKURGACHI

1.PANTALOONS YES YES YES

2.HEERA YES

SWOT ANALYSIS

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

Opportunities, and 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.

STRENGTH

1.First to develop exclusive dealer network.

2. It has a strong setup, Willis Carrier Engineering Center, to provide technological support to develop new products and upgrade existing ones.

WEAKNESS

1.Poor IMC techniques that leads to poor penetration among the masses.

THREAT

1.Likely to face fierce competition from domestic companies as they have well-acknowledged brands, an extensive distribution network and better insights about the local market conditions.

2.Increased threat from cheaper imports, especially from China

OPPORTUNITY

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

SWOT

QUESTIONNAIRE DESIGN

In this section I will discuss the various aspects of questionnaire format

There are basically three questionnaires

Key buying factors

Dealer feedback questionnaire

Gap analysis questionnaire

KEY BUYING FACTORS - This section comprises on questions where respondents were

asked to rate the different kind of attributes which they keep in mind while buying an air-

conditioner. They are asked to rate the attributes on the level of importance they attach to

them while buying an air-conditioner.

Different attributes are as follows

Brand

Price

Awareness

Output quality

Functional quality

DEALER FEEDBACK QUESTIONNAIRE – This section consist of feeback from the

exclusive dealer (Aircare Enterprises) on the attributes linked to Carrier which are

Promotional Scheme

Company Policy

Sales Support

Service Support

GAP ANALYSIS QUESTIONNAIRE – This questionnaire consist of questions based on

expectation and perception of service quality by the customers, which will be correlated

with customer satisfaction.This questionnaire will basically deal with the various gaps

that exist between the management, the dealer and the end customer.

After filling up of questionnaire the analysis will be done using statistical tools like

SPSS, in order to provide a proper recommendation to the Organisation, that will act for

the twin benefits of the company as well as the dealer and will cater to the needs of

business development.

APPENDIX

QUESTIONNAIRE FOR KEY BUYING FACTORS

Name:

Contact No.:

(Put mark on appropriate option)

Age: a) 20 – 30 yrs b) 30 – 40 yrs c) 40 – 50 yrs d) 50 yrs and above

Annual Income: a) below 3 lacs b) 3 – 6 lacs c) 6 – 12 lacs d) 12 – 24 lacs e) 25 lacs and above

1. What brand name comes to your mind when you hear of AIR CONDITIONER?

Samsung LG Carrier Hitachi Daikin Voltas Others(specify)

2. I agree that Brand name is important while purchasing an AIR CONDITIONER?

a) Strongly agree b) Agree c) Neither agree nor disagree d) Disagree e) Strongly disagree

3. I think advertisement affects my purchase intention while choosing any AIR

CONDITIONER?


4. I agree that price is an important factor while buying any AIR CONDITIONER?


5. I think quality of product is important while purchasing AIR CONDITIONER?


6. After sales service matters to me while purchasing an AIR CONDITIONER?


7. I think BEE star rating matters while purchasing AIR CONDITIONER?


8. I think AIR CONDITIONER should be eco-friendly?


9. I think quality of service affects your purchase intention while buying an AIR

CONDITIONER?


10. I think response time is important for purchasing any AIR CONDITIONER?


11. I think installation of AIR CONDITIONER matters during purchasing an AIR

CONDITIONER?


12. What would be the best priced brand according to you?

LG Samsung Carrier Voltas Hitachi Others(Please

mention) if any

13. I agree that I see the ads of carrier?


14. Which brand’s ads do you like the most?

LG Samsung Carrier Voltas Hitachi Others(Please

mention) if any

15. I agree I have visited the website of carrier?

a) Strongly agree b) Strongly disagree

16. Which of the following brands give true value for money?

Samsung LG Carrier Hitachi Daikin Voltas Others(specify)

QUESTIONNAIRE FOR GAP ANALYSIS

Name:

Contact No.:

(Put mark on appropriate option)

Age: a) 20 – 30 yrs b) 30 – 40 yrs c) 40 – 50 yrs d) 50 and above

Annual Income: a) Below 3 lakhs b) 3 – 6 Lakhs c) 6 – 12 Lakhs d) 12 – 20 lakhs e) 20 lakhs & above

Please show the extent to which you think firm is offering.

( 1 – Strongly agree 2 – Agree 3 – Neither agree or disagree 4 - Disagree 5 – Strongly

disagree)

1. CARRIER INDIA should have up-to-date equipment. ( )

2. Their physical facilities should be visually appealing. ( )

3. Their employees should be well dressed and appear neat. ( )

4. The appearance of the physical facilities of these firms should be in keeping with the type of

services provided. ( )

5. When CARRIER INDIA promises to do something by a certain time, they should do so. ( )

6. When customers have problems, CARRIER INDIA should be sympathetic and reassuring. ( )

7. CARRIER INDIA should be dependable. ( )

8. CARRIER INDIA should provide its services at the time they promise to do so. ( )

9. CARRIER INDIA should keep their records accurately. ( )

10. CARRIER INDIA shouldn't be expected to tell customers exactly when services will be performed. (

11. It is not realistic for customers to expect prompt service from employees of this firm. ( )

12. Its employees don't always have to be willing to help customers. ( )

13. It is okay if they are too busy to respond to customer requests promptly. ( )

14. Customers should be able to trust employees of CARRIER INDIA. ( )

15. Customers should be able to feel safe in their transactions with its' employees. ( )

16. Its’ employees should be polite. ( )

17. Its’ employees should get adequate support from the firm to do their jobs well. ( )

18. CARRIER INDIA should not be expected to give customers individual attention. ( )

19. Employees of this firm cannot be expected to give customers personal attention. ( )

20. It is unrealistic to expect employees to know what the needs of their customers are. ( )

21. It is unrealistic to expect this firm to have their customers' best interests at heart. ( )

22. They shouldn't be expected to have operating hours convenient to all their customers. ( )

For each statement, please show the extent to which you believe Carrier India has the

feature

( 1 – Strongly agree 2 – Agree 3 – Neither agree or disagree 4 - Disagree 5 – Strongly

disagree)

1. CARRIER INDIA has up-to-date equipment. ( )

2. CARRIER INDIA's physical facilities are visually appealing. ( )

3. CARRIER INDIA's employees are well dressed and appear neat. ( )

5. When CARRIER INDIA promises to do something by a certain time, it does so. ( )

6. When you have problems, CARRIER INDIA is sympathetic and reassuring. ( )

7. CARRIER INDIA is dependable. ( )

8. CARRIER INDIA provides its services at the time it promises to do so. ( )

9. CARRIER INDIA keeps its records accurately. ( )

10. CARRIER INDIA does not tell customers exactly when services will be performed. ( )

11. You do not receive prompt service from CARRIER INDIA's employees. ( )

12. Employees of CARRIER INDIA are not always willing to help customers. ( )

13. Employees of CARRIER INDIA are too busy to respond to customer requests promptly. ( )

14. You can trust employees of CARRIER INDIA. ( )

15. You feel safe in your transactions with CARRIER INDIA's employees. ( )

16. Employees of CARRIER INDIA arc polite. ( )

17. Employees get adequate support from CARRIER INDIA to do their jobs well. ( )

18. CARRIER INDIA does not give you individual attention. ( )

19. Employees of CARRIER INDIA do not give you personal attention. ( )

20. Employees of CARRIER INDIA do not know what your needs are. ( )

21. CARRIER INDIA does not have your best interests at heart. ( )

22. CARRIER INDIA does not have operating hours convenient to all their customers. ( )

REFERENCES

http://www.emeraldinsight.com

http://www.carrierindia.com

http://www.google.com

http://www.wikipedia.com

Zeithmal A.V.,Bitner M.J.,Grembler D.D.,and Pandit A., 2008.Services

Marketing,4th Edition.New Delhi: Tata McGraw-Hill Publishing Co. Ltd.

Parasuraman A., Zeithmal A.V. and Berry L.L.,1985.A Conceptual Model of

Service Quality. Journal of Marketing

http://www.emeraldinsight.com/

http://www.carrierindia.com/

http://www.google.com/

http://www.wikipedia.com/

report on carrier air conditioning & refrigeration ltd

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