MINI PROJECT- 1

EMERGING TECHNOLOGIES IN AIR CONDITIONERS: CASE STUDY OF NEW

PRODUCT BY HITACHI HOMES AND LIFE SOLUTIONS (MODEL NO.
RAU018HPD)

Submitted in partial fulfillment of the requirement

For the award of the Degree of Masters of Business Administration
(2021-2023)

(Dr APJ AKTU Lucknow)

By Kunal Awana
Roll no. 21GIMMBA142
MBA Semester 2
(GIMT, Greater Noida)

REPORT SUBMITTED TO
UZMA HASAN

1
 CERTIFICATE

This is certified that the project entitled “Emerging technologies in Air Conditioners: Case
study of new product by HITACHI (MODEL NO. RAU018HPD)” is submitted by Kunal
Awana (Roll No: 21GIMMBA142), in partial fulfilment of the requirement for the award of the
degree of MBA, Galgotias Institute of Management, Greater Noida is a record of bonafide
research work carried out by him under my supervision. The project fulfils the requirements as
per regulations of this college and meets the necessary standards of submission. The content of
this project has not been submitted either in part or in full for the award of any other degree or
diploma of this University or any other University.

UZMA HASAN
(Supervisor)

2
 DECLRATION

I, hereby declare that the project entitled “Emerging Technologies in Air Conditioners: Case
study of new product by HITACHI (MODEL NO. RAU018HPD)” submitted in the
fulfillment of the project report; is my original work and is not submitted for the any other
degree, fellowship or similar title or prize.

Date-………. Kunal Awana

(21GIMMBA142)

3
 PREFACE

The is designed in such a way that student can grasp maximum knowledge and can get practical
exposure to the corporate world in minimum possible time. Business school of today realizes the
importance of practical knowledge over the theoretical base.

The research report is necessary for the partial fulfillment of and it provides an opportunity to
the researcher in understanding the industry with special emphasis on the development of skills
in analyzing and interpreting practical problems through the application of management theories
and techniques. It is a new platform of learning through practical experience, which incorporates
survey and comparative analysis. It gives the learner an opportunity to relate the theory with the
practice, to test the validity and applicability of his classroom learning against real life business
situations.

Marketing is too important to be left to the marketing department. David Packard of Hewlett Packed.
The Indian market is getting to be consumer-led. This is the reason behind the unprecedented boom
in advertising. Below the line marketing activities, fast distribution system and more sophisticated
consumer research. On the media front, satellite proliferation has trigged of a new genre of media
research, which is highly viewer ship based. Consumer satisfaction has become research worthily
Multinationals are pouring in precisely because of this new chapter in Indian consumerism. The
dilemma that all marketers are facing is getting the maximum done in the minimum possible time.
And with brand loyalty becoming a thing of the past, given the choice available to the consumer
pull. The consumer could be a purchaser of end products, or a financial investor, or even an
industrial purchaser. Everywhere, there is a new thrust on marketing and advertising. The hyper
activity in the market place is seeing a boom in support services, with a number of independent
agencies mushrooming to provide them. Co-related to the market book, services are well on their to
becoming a major industry. The creative leap is increasingly being governed by market realities and
consumer research. And Clint interface is no longer limited to the Clint service people, but including
all specialists in agencies. The entry multinational products in to the country are seeing more

4
emphasis aid world- class quality. This along with the loosening of regulations is seeing export
gaining ground. From thinking along the lines of merely exporting spares and raw material the
exporters and now looking towards finished products. A multiplier to this are the joint venture
companies looking at becoming export manufacturing bases. The scene has moved beyond the
threshold of global presence, inward and out ward. However, there are certain issue still dogging an
unhindered move forward something bound to happen when the economy is just opening up. These
need to be addressed. Nonetheless, India has taken the irrevocable step forward in becoming a part
of the global family. And in the process of growth, there are already and will be in future, quantum
jumps in progress.

5
 Acknowledgement

Project of such nature, for its successful completion needs co-operation and support of group of
people. I have been fortunate enough to get constant guidance and encouragement from many
which helped me to be successful in my efforts. Words will be hardly sufficient to express my
deep sense of gratitude to all of them.

I am deeply indebted to my faculty guide without whose constant help and support my project
would not be complete.

With sincere thanks.

6
TABLE OF CONTENTS

Chapter Particulars Page No.

No.

1. INTRODUCTION 9-10

2. OBJECTIVES 11-12

3. INTRODUCTION OF THE 13-22

ORGANISATION

4. IMPORTANCE OF THE STUDY 23-24

5. SCOPE OF THE STUDY 25-26

6. LITRATURE REVIEW 27-29

7. RESEARCH METHODOLOGY 30-37

8. DATA ANALYSIS 38-59

9. FINDINGS 60-61

10. CONCLUSION 62-63

11. RECOMMENDATIONS AND 64-66

SUGGESTIONS

7
12. SCOPE FOR FURTHER RESEARCH 67 -68

13. BIBLIOGRAPHY 69

8
CHAPTER-1
INTRODUCTION

9
 INTRODUCTION

Hitachi Home & Life Solutions (India) Ltd. Was established in 1984. Headquartered in
Ahmedabad, Gujarat, the company's manufacturing facility at Kadi is among the seven Hitachi
room air conditioner facilities worldwide. With a total installed capacity of 250,000 units a year
and turnover of over Rs.2800 million, Hitachi Home & Life Solutions (India) is amongst the top
air conditioning companies in India. It has a nationwide sale, distribution and service network. It
has 14 Branches, 250 Sales and Service Dealers, more than 800 Showroom dealers and 350
Service Points. I increased my knowledge regarding the Hitachi and its operations. The
importance of customer satisfactions which helps in building company’s image. The main
players in air conditioners industry and their relative market shares. Objectives of Hitachi
Company and their key competitors in the market. Hitachi’s share in the Indian market.

10
CHAPTER-2
OBJECTIVES

11
 OBJECTIVES

We are living in an electronic era. Air conditioners is something which

adds to the quality of life.

 The main purpose of this project is to understand the importance of Customer & Dealers
satisfaction in the new product of HITACHI.

 To understand how the home appliances market is working.

 How the Hitachi is operating through its subsidiary Home & life Solution India Ltd.

 The present and future scenario of Air conditioners market in India.

 The rising demand in the Air conditioners market.

 We are living in an electronic era. Air conditioners is something adds to the quality of
life every one wants to use new technology so under in this project i want to find out the
mejor problems of customers & dealers .

12
 CHAPTER-3
INTRODUCTION TO THE ORGANISATION

13
 INTRODUCTION TO THE ORGANISATION

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.

Founded by Namihei Odaira as an electrical repair shop. Succeeded in first domestic

manufacture of three 5hp (3.6775KW) electric motors as the company’s first product.

HITACHI is one of the best companies in the electronic market which aims at bring a change in
this area of business by shifting there aim from product promotion to customer
promotion.Hitachi Home & Life Solutions (India) Ltd. was established in 1984. Headquartered
in Ahmedabad, Gujarat, the company's manufacturing facility at Kadi is among the seven Hitachi
room air conditioner facilities worldwide. With a total installed capacity of 250,000 units a year
and turnover of over Rs.2800 million, Hitachi Home & Life Solutions (India) is amongst the top
air conditioning companies in India. It has a nationwide sale, distribution and service network. It
has 14 Branches, 250 Sales and Service Dealers, more than 800 Showroom Dealers and 350
Service Points

14
 HISTORICAL DEVELOPMENTS OF HITACHI

1910: Founded by Namihei Odaira as an electrical repair shop. Succeeded in first domestic
manufacture of three 5hp (3.6775KW) electric motors as the
company’s first product.
1911: Completed 2 KVA transformer
1914: Began manufacturing of alternating current gaivanometers and
voltmeters.
1915: Completed 10000hp (7355KW) water turbin.
1916: Began manufacturing of electronic fans.
1924: Completed the first large-scale DC electric locomotives to be manufactured in Japan.
1930: Began the manufacture of pole-mounted transformer
1931: Completed 10,000 A hydraulic electrolytic cell.
1932: Began the manufacture of elevators. Completed Hitachi's first electric
refrigerator.
1933: Completed 23,600hp Ilgner set.
1940:Completed an automatic telephone exchange with 5,000 lines.
1943: Completed 85,000 kW Francis water turbine and 70,000 KVA
alternating current generator.
1951: Completed 6,500 kW Kaplan turbine and 7000 kVA alternating current
generator.
1952: Completed 21000 KW two-stage pump-turbine.
1953: Completed low-pressure 300m3/h air separator.
1954: Completed the first large-scale cold strip mill to be produced in Japan.
1955: Completed 10,00,00kW Francis water turbine and 93,000 KVA alternating current
generator.
1956: Hitachi Cable, Ltd. and Hitachi Metals, Ltd. Established.
1958: Electron microscopes awarded the grand prix at the World Exposition in
Brussels. Completed 6-transistor portable radio.

15
1959: Completed electronic computers based on transistors. Hitachi America, Ltd.
established.
1961: Developed fully automated washer. Completed experimental nuclear reactor.
1962: Hitachi Chemical Co., Ltd. Established
1963: Completed 265,000 kW impulse reheating-type, cross-compound turbine.Released the
first large-scale computer developed exclusively with Hitachi's own domestic technology.
1964: Completed the first cars for the Shinkansen (Bullet Train). Developed train seat
reservation system. Manufactured monorail running between Haneda Airport and
Hamamatsu-cho, Tokyo.
1965: Began mass production of color television tubes using rare earth
phosphor material.
1966: Developed LTP processing of a silicon transistor.

1967: Developed dry-type room air conditioner.

1968: Developed hybrid. Developed computer for controller's use &Developed 300m/min.
elevators for high-rise buildings.
1969: Completed on-line banking system. Developed and mass-produced all-transistor color
televisions
1970: Developed computer-aided traffic control system for the Shinkansen (Bullet Train).
Completed prototype of visual information processing robot.
1971: Completed file storage device with 1GB capacity.
1972: Completed file storage device with 1GB capacity.
1973: Developed new heat-resistant insulating materials

1974: Commercial operation began at Japan's first 460,000 kW nuclear power station.
Completed automated semiconductor assembly.
1975: Developed high-performance heat transfer tube.Hitachi High Crown Control Mill
developed.
1976: Succeeded in the world's first experiment of fiber optic communication systems
1977: Developed high-speed amino-acids analyzer. Construction of "FUGEN," the prototype
of a new converter reactor

16
1978: Completed world's first field emission electron microscope with record-
high resolution. Experimental color camera with solid-state miniature image device
developed. Released the world's largest and fastest computer at that
time.
1979: Completed world's first puffer type, 1-cycle gas circuit breaker
prototype.
1980: Completed 300 MW high-voltage direct current transmission between
Hokkaido and Honshu. Completed nuclear fusion equipment.
1981: Developed magnetic recording video camera Established color picture
tube dry process technology.
1982: Hitachi Europe Ltd. Established. Succeeded in world's first micro-level
observation of magnetic field by the use of electron beam holography.
Hitachi's first supercomputer announced Listed on New York Stock Exchange.
1983: Hitachi Australia Ltd. Established & Manufactured 1-megabit high-speed CMOS mask
ROM. Developed air conditioners with scroll compressors.
1984: Completed Japan's first model of improved standard-type boiling water reactor Started
mass production of 256-kilobit DRAMs

1985: Completed the "JT-60" large-scale Tekamah device for break-even plasma
experiments. Established the Hitachi Foundation to promote cultural, educational and
scientific exchanges between Japanese and the U.S. Developed CAD/CAE systems with
high-definition color displays.
The Hitachi Foundation was established to promote cultural, educational and
scientific exchanges between Japan and the U.S. Released the first large-
scale computer with fully applied LSI.
1986: Completed scanning electron microscope that can record electron spin.
1987: Put fuzzy control to a practical use. Completed rear-projection large liquid crystal
color display.
1988: Developed basic technology of neural network. Developed 4-legged robot.
1989: Developed world's fastest super conductive computer. Developed super conductive
MR imaging.

17
1990: Developed high-definition TFT color liquid crystal display.
1991: Developed inverter-controlled electric locomotive with the world's largest control
capacity.
1993: Developed Shinkansen (Bullet Train) with new maximum service speed 270km/h.
Developed atomic observation and manipulation technology using scanning tunneling
microscope.
1994: Hitachi (China), Ltd. Established Developed the new ATM which
enables bills to be pressed and disinfected.
1995: Developed Super TFT LCD module featuring ultra-wide viewing angles
1996: Developed MPEG camera
1997: Developed contactless IC Card system.
1998: Developed PAM control refrigerator/air conditioner.
1999: Established dependable autonomous hard real-time management
technology.
2000: Developed 52.5 GBits/in2 perpendicular magnetic recording method.
2001: Developed mobile web-gateway system.
2002: Developed world's first silent liquid-cooling notebook PC Developed
world's smallest 0.3 mm square contact less IC chip
2003: Developed and commercialized compact, highly accurate, high-speed
finger vein authentication system.

18
 LOGO

About “Inspire”
The word "inspire" has as its etymology, the Latin preposition in and the Latin verb spirare,
meaning "to breathe." As well as meaning "to breathe in," and "to encourage,"

“the Next”
the word "Next" inspire our stakeholders and all those that read our Corporate Statement

19
HITACHI HOME AND LIFE SOLUTIONS INC.
(a subsidiary of the Japanese major Hitachi)

Hitachi Home & Life Solutions (India) Ltd. was established in 1984. Headquartered in
Ahmedabad, Gujarat, the company's manufacturing facility at Kadi is among the seven Hitachi
room air conditioner facilities worldwide. With a total installed capacity of 250,000 units a year
and turnover of over Rs.2800 million, Hitachi Home & Life Solutions (India) is amongst the top
air conditioning companies in India. It has a nationwide sale, distribution and service network. It
has 14 Branches, 250 Sales and Service Dealers, more than 800 Showroom Dealers and 350
Service Points.

AC Category Products

Room Air Conditioners Window AC, Split AC, Tower

Packaged Air Conditioners Concealed Splits, Ductable, Ceiling, Cassette

Space makers Specific Telecom Cooling Solution

Set free Variable Refrigerant Volume System

Chillers Large Air-Conditioning Application

1991: Launched the first Side Throw AC

1992: Launched the first Hi Wall Mounted Split AC

20
1996: Launched the first Ceiling Mounted Split AC

1997: Introduced the first Home AC - Nidra

1999: Launched "HITACHI" Brand of Air conditioners in India

2000: Gave our customers comfortable sleep - Hitachi Kaimin

2001: First ever-mass marketing of AC with Remote Microprocessor controlled

Intelligence -Logicool

2002: Took the concept of personalized AC and user interface to a new level - Logicool I

2003: Gives customized cooling with the help of Auto Climate Technology – Logicool Air
conditioners

2004 March: Lambda Technology inspired the smallest split Air Conditioner in the world -
Hitachi Atom

2005 August: Twin Turbo Technology inspired the most Powerful & Silent Window AC –
Quadricool

2006 Feb: Launched Quadricool TM with Twin Motor technology, enabling benefits of

Split AC in a window AC

2007 Feb: Introduced UV Fresh technology in Atom, thus providing cleaner and healthier
environment

21
2008March:launched split air conditioner extra mild atom technology with extra cool with
healthier environment AC.

2008April:launched a new split air conditioner with 100% cool is any conditions technology
with extra cool with healthier environment AC protect consumer health and also refresh the air.

22
 CHAPTER-4
IMPORTANCE OF STUDY

23
IMPORTANCE

 To know the level of satisfaction Dealers & Customers.

 To collect primary or first hand data.

 To know the reach of product.

 To know the exact number of sales in the market.

 To make the future production planning.

 Increase in the liability among customers and dealers.

24
CHAPTER-5
SCOPE OF STUDY

25
 SCOPE

The given Project is to find out the Customers & Dealers satisfaction in New Product of
HITACHI HOMES & LIFE SOLUTIONS [SPLIT AIR CONDITIONAR modelno-
RAU018HPD].The scope for the research is very big .The area or say the premises of the
researcher was Delhi region.An information plays an important inanybusinesorganaisationnow
in this scenari.

AC has become apart of life and asconcern to this project DEALERS & CUSTOMER
satisfaction of new product of HITACHI HOMES & LIFE SOLUTIONS modelno-
RAU018HPD] I have taken BIGl survey. This survey throws light on many.Things like what
are the various TECHNOLOGY which is being used in courieSPLIT AIR CONDITIONER l by
which we can identify the effective and efficient use ofinformation about their custmers &
dealers.So I formed a questionnaire and asked 40 CUSTOMERS and 20 DEALERS respondent
to fill it.

26
CHAPTER-5
LITERATURE REVIEW

27
 LITERATURE REVIEW
Under the agreement announced, Hitachi will invest about Rs. 160 million (approximately 500
million yen) to acquire preferential shares of Amtrex bringing its shareholding on par with the
current promoters -- the Lalbhai group. Hitachi and Lalbhai Group will hold an equal stake of
35.2% each in the enhanced equity of Rs. 146.7 million (approximately 450 million yen) of
Amtrex.
Following Hitachi's investment, the company name is proposed to be changed to Amtrex Hitachi
Appliances Limited. The Amtrex board will be reconstituted with Hitachi nominating new
Directors, including a Joint Managing Director. The Chairman & Managing Director of JV
company will continue to be nominated by Lalbhai group. Hitachi will also assign expatriates to
work in the JV company in the areas of engineering, design & quality assurance.
Hitachi and Amtrex have been working together on new products for Indian market for the last
two years. Hitachi's equity participation will be followed by the first time entry of Hitachi brand
in the Indian consumer durable market just in time for the critical Indian summer of 1999.
Presently, Hitachi brand will co-exist with the current Amtrex brand, helping the JV company to
offer a comprehensive range of products for various market segments. Since the liberalizationof
Indian economic policies in 1991, room air conditioner market has steadily grown to about
400,000 units in fiscal 1997. It is expected to continue to grow at about 15-20% per annum to
cross one million units in the next five years. Hitachi and Amtrex have been working together in
the Indian market since 1990, through their technical collaboration arrangement. Focussing on
the changing needs of this high growth market, the relationship was further strengthened with a
new licensing arrangement concluded in April 1998. It covered provision of technology for
development of several new tropical models of window and split air conditioners suitable for
Indian conditions. The agreement also included assignment of Hitachi engineers and training of
Amtrex personnel at Hitachi facilities in Japan and elsewhere.
Commenting on Hitachi's investment, Kyohei Kasaba, Board Director and Group Executive,
Consumer Products Group, Hitachi, Ltd., said, "We expect to see a steady expansion of demand
in the Indian market. Hitachi's decision to expand its scope of co-operation from provision of
technology to participate in Amtrex equity has been taken from the long term view of harnessing
this market potential and growth. Looking to the future, we hope to further expand our co-
operation with Lalbhai Group."While announcing the partnership, Sanjay Lalbhai, Chairman,

28
Amtrex Appliances Ltd., said, "We welcome Hitachi's decision to play a greater and more active
role in Amtrex and India. The Lalbhai Group, together with Hitachi, is committed to build and
maintain a position of eminence in the room air conditioner market. We plan to further synergise
Amtrex's nation wide sales and service network together with the continuous flow of latest
Hitachi technology to expand our business in India. We hope to further extend our co-operation
with Hitachi to room air conditioner export business to some of the tropical countries and also
for other Hitachi products in the Indian market."
Amtrex Appliances Ltd., a part of the Lalbhai Group, one of India's leading Industrial
conglomerates, is headquartered at Ahmedabad in Gujarat. Founded in 1984 Amtrex has two
manufacturing facilities at Kadi and Silvassa to manufacture room air conditioners as per Hitachi
specifications. The funds generated out of increase in Amtrex equity will mainly be used to
further expand and upgrade its manufacturing facilities. Amtrex has a nationwide sales,
distribution & service network with five regional offices in major Indian cities, which will be
further strengthened and expanded to meet the intensifying competition in the Indian market.
With the new Hitachi brand models, upgrade of manufacturing and design facilities and
the invigorated sales and distribution network, Hitachi and Amtrex are confident of becoming
adominant force in the future room air conditioner market.

Hitachi, Ltd., headquartered in Tokyo, is one of the world's leading global electronics
companies, with fiscal 1997 (ended March 31, 1998) consolidated sales of 8,417 billion yen ($
63.8 billion (a)). The company manufactures and markets a wide range of products, including
computers, semiconductors, consumer products and power and industrial equipment. For more
information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp.
At an exchange rate of 132 yen to the U.S. dollar.

29
 CHAPTER-6
RESEARCH METHODOLOGY

30
 METHODOLOGY ADOPTED

 Primary data was gathered with the help of telecommunication.

 Secondary data was collected with the assistance’s of the industrial guide.
 Through the Internet more project based information was gathered.
 Analysis is done with the help of graph

METHODOLOGY
Research is a common language refers to a search of knowledge. Research is
scientific & systematic search for pertinent information on a specific topic, infect
research is an art of scientific investigation. Research Methodology is a scientific
way to solve research problem. It may be understood as a science of studying how research is
don’t scientifically. In it we study various steps that are generally adopted by researchers in
studying their research problem. It is necessary for researchers to know not only know research
method techniques but also technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step
determines the native of the last step to be undertaken. Why a research has been defined, what
data has been collected and what a particular methods have been adopted and a host of similar
other questions are usually answered when we talk of research methodology concerning a
research problem or study. The project is a study where focus is on the following points:

RESEARCH DESIGN
A research design is defined, as the specification of methods and procedures for acquiring the
Information needed. It is a plant or organizing framework for doing the study and collecting the
data. Designing a research plan requires decisions all the data sources, research approaches,
Research instruments, sampling plan and contact methods.
Research design is mainly of following types: -

1. Exploratory research.
2. Descriptive studies

31
 3. Casual studies

EXPLORATORY RESEARCH

The major purposes of exploratory studies are the identification problems,the more precise
Formulation of problems and the formulations of new alternative courses of action. The design
of exploratory studies is characterized by a great amount of flexibility and ad-hoc veracity.

DESCRIPTIVE STUDIES
Descriptive research in contrast to exploratory research is marked by the prior formulation of
specific research Questions. The investigator already knows a substantial amount about the
research problem. Perhaps as a Result of an exploratory study, before the project is initiated.
Descriptive research is also characterized by a Preplanned and structured design.

CASUAL OR EXPERIMENTAL DESIGN

A casual design investigates the cause and effect relationships between two or more variables.
The hypothesis is tested and the experiment is done. There are following types of casual designs:
I. After only design
II. Before after design
III. Before after with control group design
IV. Four groups, six studies design
V. After only with control group design.
VI. Consumer panel design
VII. Exposit facto design

B) DATA COLLECTION METHOD

32
 PRIMARY SECONDARY
Direct personal Interview
Indirect personal Interview
Published Sources Unpublished Sources

Information from correspondents Govt.publication

Mailed questionnaire Report Committees & Commissions
Question filled by enumerators Private Publication
Research Institute
PRIMARY DATA
These data are collected first time as original data. The data is recorded as observed or
encountered. Essentially they are raw materials. They may be combined, totaled but they have
not extensively been statistically processed. For example, data obtained by the peoples.

SECONDARY DATA
Sources of Secondary Data

Following are the main sources of secondary data:

1. Official Publications: Publications of the HITACHI and by the corporate office of

HITACHI.

2. Publications Relating to Trade: Publications of the trade associations, stock exchange,

trade union etc.

3. Journal/ Newspapers etc.: Some newspapers/ Journals collect and publish their own
data, e.g. Indian Journal of economics, economist, Economic Times.

4. Data Collected by Industry Associations: For example, data available with Hitachi
Homes and Life Solutions(India) Ltd..

5. Unpublished Data: Data may be obtained from several companies, organizations,

working in the same areas. For example, data on Hitachi Homes and Life
Solutions(India) Ltd.. magazines.

Period of Study:
33
This study has been carried out for a maximum period of 8 weeks.

Area of study:
The study is exclusively done in the area of marketing. It is a process requiring care,
sophistication, experience, business judgment, and imagination for which there can be no
mechanical substitutes.

Sampling Design:
The convenience sampling is done because any probability sampling procedure would require
detailed information about the universe, which is not easily available further, it being an
exploratory research.

Sample Procedure:
In this study “judgmental sampling procedure is used. Judgmental sampling is preferred because
of some limitation and the complexity of the random sampling. Area sampling is used in
combination with convenience sampling so as to collect the data from different regions of the
city and to increase reliability.

Sampling Size:
The sampling size of the study is 60.customers are 40 and Dealers are 20.

Method of the Sampling:

Probability Sampling
It is also known as random sampling. Here, every item of the universe has an equal chance or
probability of being chosen for sample.
Probability sampling may be taken inform of:

Simple Random Sampling

A simple random sample gives each member of the population an equal chance of being
chosen. It is not a haphazard sample as some people think! One way of achieving a simple

34
random sample is to number each element in the sampling frame (e.g. give everyone on the
Electoral register a number) and then use random numbers to select the required sample.
Random numbers can be obtained using your calculator, a spreadsheet, printed tables of random
numbers, or by the more traditional methods of drawing slips of paper from a hat, tossing coins
or rolling dice.

Systematic Random Sampling

This is random sampling with a system! From the sampling frame, a starting point is chosen at
random, and thereafter at regular intervals.

Stratified Random Sampling

With stratified random sampling, the population is first divided into a number of parts or 'strata'
according to some characteristic, chosen to be related to the major variables being studied. For
this survey, the variable of interest is the citizen's attitude to the redevelopment scheme, and the
stratification factor will be the values of the respondents' homes. This factor was chosen because
it seems reasonable to suppose that it will be related to people's attitudes

Cluster and area Sampling

Cluster sampling is a sampling technique used when "natural" groupings are evident in a
statistical population. It is often used in marketing research. In this technique, the total
population is divided into these groups (or clusters) and a sample of the groups is selected. Then
the required information is collected from the elements within each selected group. This may be
done for every element in these groups or a subsample of elements may be selected within each
of these groups.

Non Probability Sampling

It is also known as deliberate or purposive or judge mental sampling. In this type of sampling,
every item in the universe does not have an equal, chance of being included in a sample.

It is of following type:
Convenience Sampling

35
A convenience sample chooses the individuals that are easiest to reach or sampling that is done
easy. Convenience sampling does not represent the entire population so it is considered bias.

Quota Sampling
In quota sampling the selection of the sample is made by the interviewer, who has been given
quotas to fill from specified sub-groups of the population.

Judgment Sampling
The sampling technique used here in probability > Random Sampling.
The total sample size is 100 profiles.

Data Collection : -

Data is collected from various customers through personal interaction. Specific questionnaire is
prepared for colleting data. Data is collected with mere interaction and formal discussion with
different respondents and we collect data in HITACHI and face to face contact with the
persons from whom the information is to be obtained (known as informants). The interviewer
asks them questions pertaining to the survey and collects the desired information. Thus, the
we collect data about the working conditions of the workers of HITACHI we worked at
HITACHI CUSTOMER & DEALERS contact the workers and obtain the information. The
information obtained are first hand or original in character.

TOOLS USED IN SURVEY

The various tools used in conducting the surveys are as follows:-

 Observation method
 Personal interviews
 Questionnaire

1 OBSERVATION METHOD

36
Observation method in the most commonly used method in a survey. Observation becomes a
scientific tool and the method of data collection for the researcher, when it serves a formulated
research purposes systematically planned and recorded and is subjected to checks and controls
on validity and reliability. Under the observation without asking from the respondent.

2 INTERVIEW METHOD

The interview method of collecting data involves presentation of oral verbal stimuli and reply in
term of oral verbal responses. Personal interview methods in a face-to face contact to the other
person or persons. This method is particularly suitable for intensive investigations.

3 QUESTIONNAIRE

This method of data collection is quite popular in case of big enquires. In this method a
questionnaire is presented to a concerned person with a request to give answers of the questions.
A questionnaire consists of forms. The respondents have to answer the question on their own.

The general form of a questionnaire is concerned; it can either be structured or constructed

questionnaire structured or constructed questionnaire. Structured questionnaires are those
questionnaires in which these are definite, concrete and pre-determined questions. When their
characteristics are not present in a questionnaire, it can be termed as unstructured or non- –
structured questionnaire.

37
CHAPTER-7
DATA ANALYSIS

38
 DATA ANALYSIS

SURVEY ON CUSTOMER SATISFACTION

Hitachi homes & life solutions
A15, 1st floor , Mohan Co-operative
Industrial Area, Mathura Road
New Delhi - 110044

40 Customer

Questionnaire

(1) How likely are you to repurchase products from Company?

Responce
Frequency Percent

Excellent 20 50

Very Good 10 25

Good 5 12.5

Fair 5 12.5

Poor 0 0

Total 40 100.0

39
(2) How likely are you to recommend Company to a friend or relative?

Responce
Frequency Percent

Excellent 15 37.5

Very Good 12 30

Good 7 17.5

Fair 6 15

Poor 0 0

Total 40 100.0

40
41
(3) How satisfied are you with our company overall?

Responce
Frequency Percent

Excellent 15 37.5

Very Good 12 30

Good 8 20

Fair 5 12.5

Poor 0 0

Total 40 100.0

42
 DATA ANALYSIS

SURVEY ON DELARS SATISFACTION

Hitachi homes & life solutions
A15, 1st floor , Mohan Co-operative
Industrial Area, Mathura Road
New Delhi - 110044

20 Dealers

(1) What do you feel about credit period given by HITACHI?

Responce
Frequency Percent

Very Good 12 60

Good 5 25

Satisfactory 3 15

Poor 0 0

Total 20 100.0

43
(2) What do you think about Promotion Activities given by HITACHI?

Responce
Frequency Percent

Very Good 10 50

Good 7 35

Satisfactory 3 15

Poor 0 0

Total 20 100.0

44
(3) What do you feel about Quality of HITACHI products?

Responce
Frequency Percent

Very Good 10 50

Good 6 30

Satisfactory 4 20

Poor 0 0

Total 20 100.0

45
46
 GRAPHICAL REPRESENTATION OF THE CUSTOMER

SATISFACTION

23%

sa tisfied
not satisfied

77%

47
 GRAPHICAL REPRESENTATION OF THE DEALER SATISFACTION

SATISFACTION LEVEL OF DEALER’S ON THE BASIS OF THE MODEL

NO-RAU018HPD

COUNT………

16%

Satisfied

84% Not satisfied

48
SWOT ANALYSIS

Strengths
 Have been in the air conditioners business for over a decade.

 Have prime dealer distribution network in India.

 Provides awareness about new technologies.
 Constant cash flow is generated due to which easy transactions.

Weaknesses
 Lacks motivated and efficient employees.
 Coordination among the different departments.

Opportunities
 Coming up with better and more efficient technologies in alliance with Amtrex.
 Becoming more customer oriented, ‘no chilling’ but ‘comfort’.

Threats
 Increasing competition with other companies like the Blue Star etc.

49
 COMPANY PROFILE

Name of Company : Hitachi Home & Life Solutions (India) Ltd.

AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2008

Eighteen
Nine
Quarter Quarter Year months
Months
S. ended ended ended period
Particulars Ended
No. 31.03.08 31.03.07 31.03.2008 ended
31.12.2007
(Unaudited) (Unaudited) (Audited) 31.03.2008
(Unaudited)
(Audited)

(a) Sales/Income
1 19,402.08 7,188.69 6,277.42 26,590.77 32,965.61
from operations

(b) Excise duty 2,289.11 701.55 688.81 2,990.66 5,130.06

Net Sales/Income
from operations [ 17,112.97 6,487.14 5,588.61 23,600.11 27,835.55
a-b ]

2 Other income 460.45 197.70 120.16 658.15 289.80

3 Total expenditure

(a) (Increase) /
Decrease in stock 186.56 (521.17) (210.73) (334.61) 832.17
in trade

(b) Consumption
11,041.71 5,076.90 3,903.79 16,118.61 18,088.95
of raw materials

50
 (c) Staff cost 1,063.13 340.98 386.31 1,404.11 2,355.73

(d) Other
4,309.91 1,508.57 1,357.25 5,818.48 7,611.55
expenditure

Total (a+b+c+d) 16,601.31 6,405.28 5,436.62 23,006.59 28,888.40

4 Interest 152.57 101.87 84.67 254.44 1,050.07

Depreciation &
5 341.22 86.59 113.84 427.81 669.66
Amortization

Profit / (Loss)
6 before tax [1+2-3- 478.32 91.10 73.64 569.42 (2,482.78)
4-5 ]

Extra Ordinary
7 - - 117.73 - -
Item

Provision for
8 - - - - -
taxation

Profit / (Loss)
9 478.32 91.10 191.37 569.42 (2,482.78)
after tax [ 6-7-8 ]

Paid –up Equity

10 Share Capital 2296.00 2296.00 2296.00 2296.00 2296.00
(Face value

51
 Rs.10/- per share)

Reserves
11 excluding 2.08 0.40 - (1,595.44) (2164.87)
revaluation reserve

Basic and Diluted

12 0.83 2.48 (15.48)
EPS*

Aggregate of non
13 promoters'
shareholding

- No. of shares 6910008 6910008 6910008 6910008 6910008

- Percentage of
30.10 30.10 30.10 30.10 30.10
shareholding

4P’s OF MARKETING

PRODUCT:

Hitachi Home & Life Solutions ( India) Ltd ( HHLI), has come out with a new range of window
and split ACs. The new range styled Quadricool TM is part of the company's consumer-led
technology. Some of the features of this product are as follows:


Split Air Conditionerl aerodynamically designed Twin Turbo fans drastically reduce air-
cuttingnoise making it possibly the world's most silent AC. This further reduces the
sound level down to 44 dB, the higest ever in the technology in Split AC category.

52
  LOWER PULL DOWN TIME- The unique air delivery system and the Twin Turbo
fans ensure a wide area of cooling at a faster rate reducing the pull down time.

 MORE COOLING FOR LESS

The new refrigeration cycle design coupled with Twin Turbo fans increases the
condenser side airflow by over 15% and raises the heat exchange capacity as well. This
results in an Energy Efficiency Ratio (EER) of over 10.5, maximizing cooling and
lowering power consumption.

 UNIFORM AIR DISTRIBUTION

The innovative air delivery mechanism enables spiral airflow, creating a 'whorl' effect,
ensuring no hot air pockets

Some of the ADVANTAGES of this product are:

1) Aesthetically designed
2) Backed by world-class engineering and know-how, Quadricool preserves
the aesthetics and integrity of any given structure with its elegant design and quite
operation.

PRICES:

HITACHI being a market leader has a smart ant responsive pricing strategy. The new range
launched Hitachi Quadricool is priced at Rs.26, 000 for a 1.5-ton window AC.

53
Model No. Model Description TR MRP (in Rs.)

RAV014GKD Window AC-Hitachi Quadricool (Non remote) 1.0 20975

RAV019GKD Window AC-Hitachi Quadricool (Non remote) 1.5 23375

RAV024GKD Window AC-Hitachi Quadricool (Non remote) 2.0 28175

RAV014EKDZ1 Window AC-Hitachi Quadricool (with remote) 1.0 22400

RAV019EKD Window AC-Hitachi Quadricool (with remote) 1.5 25300

RAV024EKD Window AC-Hitachi Quadricool (with remote) 2.0 29000

RAV014ELD Window AC-Hitachi Quadricool Twin Motor 1.0 24400

RAV018ELD Split air conditioner-Hitachi Quadricool Twin 1.5 27300

The company is focusing on consumer education. An air-conditioner is no longer just a cooling

machine but has evolved into a comfort machine. Prices may be high, but in the long run it will
be cheaper to own a Hitachi, as its product features would not only ensure better air-conditioning
but also help in saving electricity and money.

PLACE

Hitachi markets its products through a large dealer-retailer network. Distribution is through
redistributors (stockiest/merchantwholesalers/exclusive dealers) to retailers.

The company first selects the geographical unit and then identifies the potential customers within
this region. Then territories are created by the company with a view to equalize the sales work
load so that each sales representative can cover his/her territory adequately. It has a strong
distribution network with about 500 distributors in North India.

PROMOTION

 Hitachi is targeting the high-end segment of the market as it is the fastest growing
segment in India, because consumers are increasingly looking at upgrading.
 Hitachi launched Quadricool in off-season by changing the trend of market.

54
 Hitachi incorporates the split technology in window ACs, which makes the Quadricool
more efficient.Hitachi offered cool summer pricing strategy in order to attract consumers.
 Hitachi gave 7 years warranty on compressor and 2 years comprehensive warrannty.
 The turbo technology helps reduce electricity bills by at least 45 per cent, giving
customers long-term benefits.
 Hitachi is following unique selling proposition ‘No Chilling, But Comfort’ in promoting
Quadricool.

STRATEGIC ALLIANCE

The strategic alliance between Hitachi and Amtrex includes:

 Supply of latest technology for new models of Window & Split AC's

 Upgradation of the manufacturing & design facilities of Amtrex to meet Hitachi

standards.

 Marketing of the new models in India under the new brand identity of Amtrex-Hitachi.

 Upgradation of the Amtrex sales & service network in line with Hitachi's international
standards.

REPORT ON AIR CONDITIONERS MARKET

Financial Daily from THE HINDU group of publications

Thursday, Apr 04, 2008

A view to a chill

ALTHOUGH sales were far from encouraging last year (mainly on account of a bad
summer), consumer durable manufacturers are pinning their hopes on the air-conditioner

55
segment to drive growth for the sector this year. According to the Consumer Electronics and
Television Manufacturers Association (CETMA), the air-conditioner segment is expected to
grow at 20 per cent this year, which is much higher than the expected growth rates for other
consumer durables such as washing machines (at 5 per cent) and refrigerators (at 10 per
cent).

The reasons are not difficult to understand. "An overall pick-up in the economy, low
penetration levels, growing popularity of the AC-equipped small office concept and
especially the changing attitude of the common man towards air-conditioners will be factors
driving growth for the category this year," says Suresh Khanna, Secretary General, CETMA.

Another factor expected to boost growth is the decrease in prices of air-conditioners as

companies were left with huge inventories last year. Buying an air-conditioner is increasingly
being perceived as a necessary investment rather than a luxury. Says a leading industry
analyst, "In fact, all recent research done in the market has shown that the air-conditioner is
rapidly moving up the list of household goods consumers intend to buy." Not surprisingly,
many new players are making a beeline for the seven lakh units a year making air-
conditioner market, while existing ones are busy redefining their strategies.

Siemens, for instance, plans to launch its premium range of air-conditioners in the market
during April this year. Says Mr S. N. Tripathi, Executive Director & Chief Operating Officer,
Voltas Ltd, "Manufacturing for the Siemens ACs will be done by Universal Comfort
Products Pvt Ltd (UCPPL), the 50:50 manufacturing joint venture between Voltas and US-
based Fedders International." The company is expected to launch air-conditioners in both
window and split variants in select cities.

Meanwhile, Fedders International too plans to launch air-conditioners under the Fedders
brand name in April. Recently, Whirlpool India also announced its foray into air-
conditioners. The company is aiming to garner a market share of 10 per cent in its first year
of operations. Says an industry analyst, "The market is big enough to absorb new entrants.
Since the base of the market is very small, there is much potential for growth."

56
Apart from new brands coming in, existing players too are doing their bit to grow the market
through launches of new models, heavy discounts, offering attractive promotional schemes
and increasing emphasis on improving the distribution network. Samsung India, for instance,
is planning to grow the total number of customer retail points stocking its air-conditioners by
35 per cent this year. The company's distribution network will also be strengthened with
Samsung recently beginning local production of air-conditioners in India. Says R. Zutshi,
Vice President, Sales, Samsung India Electronics, "The domestic production of Window
ACs, which commenced last month, will give us the flexibility and the range to consolidate
our position in the AC market this year. We are targeting a growth of around 35 per cent in
volume terms in our AC business this year." The company also plans to start manufacturing
split air-conditioners by the middle of the year. For this year, Samsung has already added
four new air-conditioner models to its range.

The Rs 1,000-crore Voltas Ltd too is looking to aggressively increase its share in the Indian
air-conditioner market. It has recently launched a new range of air-conditioners under the
brand name of Voltas Vertis. With this launch, Voltas, which has been strong in the
institutional segment, aims to push up sales in the retail segment as well. Says Tripathi,
"Currently, 80 per cent of sales come from the institutional segment while 20 per cent come
from retail. We want to increase the share of the retail segment. Further, with this launch, we
will now have air-conditioners available in every range."

On the distribution front, Voltas will be increasing its dealer and retailer network. It plans to
raise the number of its exclusive outlets from 640 to 1,600 next year.

Voltas has also charted out an aggressive marketing strategy to increase its market share.
"This year, we will increase our spends on advertising and marketing from Rs 8 crore to Rs
20 crore, making us the highest spenders in the category. The media we will be using include
television, radio, outdoor, transit and so on," says Tripathi.

Says an industry analyst, "It has been observed in this category that sales are proportionate to
the amount spent on creating awareness." It should come as no surprise thereby, that
currently the market leader in the segment, LG Electronics, is also the highest spender with

57
an estimated expenditure of Rs 15 crore on the category. The company has recently launched
its new range of Gold Fin air-conditioners. LG's communication strategy too has undergone a
revamp. "Our communication strategy will now focus on the benefits derived from
technology. Also, we are trying to connect with women through our advertising," says
Ganesh Mahalingam, General Manager, Marketing, LG Electronics India. The company is
looking to increase its market share to 31 per cent this year from 26 per cent and is targeting
sales of 1.5 lakh units this year.

Videocon too plans to step up its advertising efforts for air-conditioners this year. Says Nipun
Gupta, Chief Operating Officer - Air-Conditioners, Videocon, "We are proposing to spend
approximately Rs 4 crore this year. We will also launch three new TV commercials this year
unlike last year during which we did not come out with any TVCs." The company recently
launched 12 new models of air-conditioners and has also decreased the pricing for it ACs.
"The prices are benchmarked with the competition, especially looking at the aggressive
prices offered by LG recently. As a consequence, there has been an approximately 10 per
cent price decrease since last year," says Gupta. HITACHI is targeting sales of 75,000 units
in the next fiscal.

Other major players in the segment include Carrier, Electrolux, Daikin Shriram, and Hitachi.
However, in spite of the optimistic outlook, there is still a big challenge from the grey
market. Says a market analyst, "The grey market is still very active, simply because the price
differential is too big. For instance, a 1.5 ton split air-conditioner in the grey market is
available for Rs 22,000 to Rs 24,000, while otherwise, the price would be around Rs 15,000
higher. The grey market will continue until the price differential comes down to about Rs
3,000-4,000 from the current Rs 10,000-15,000."

Further, it has been found that the popularity of the grey market varies from region to region.
For instance, in Delhi, more than 50 per cent of the air-conditioners are from the grey market.
While in the South, though the demand for premium models is low, people prefer to go in for
branded air-conditioners rather than assembled ones, says an analyst.

58
 However, recent surveys by CETMA have been encouraging. Says Khanna, "The overall
share of the grey market has reduced.

According to our estimates, it is not more than 25 per cent of the air-conditioner segment."
And as prices come down, the share of the unorganised market is expected to decline even
further.And make summers much cooler for the hot and bothered marketers.

LIMITATIONS

 Customers were not ready to give feedback.

 There were inadequate customer data.

 The interaction between the customers and service department was n

59
CHAPTER-8
FINDINGS

60
KEY LEARNING’S

 I increased my knowledge regarding the Hitachi and its operations.

 The importance of customer satisfactions which helps in building company’s
image.
 The main players in air conditioners industry and their relative market shares.
 Objectives of Hitachi Company and their key competitors in the market.
 Hitachi’s share in the Indian market.
 The philosophy and the process followed by the Hitachi Company for selling
and buying a air conditioner.
 Learned about the future plans of the company.
 The training made me come across a number of marketing and administrative
heads of different Firms.
 Getting questionnaires filled by customers helped me gain more confidences
and improved my speaking ability.
 I got to know how to handle problems at a work place and the importance of
feedback.

61
CHAPTER-9
CONCLUSION

62
CONCLUSION
After analyzing the questionnaire we can conclude that:

 HITACHI is having a good market in A.C segment.

 60% People prefer cash purchase but 51% also said that they would like to avail finance
option if given.
 Price of the product has a direct effect on the purchase decision of a consumer. People
prefer to purchase product ranging between 20-25 thousand in case of A.C.
 Brand ambassador doesn’t make much of difference in buying decision of consumers but
television plays a vital role in creating awareness among people rather than other media.
 After sales service is the most important criteria on the basis of which consumer take
their decision of buying the particular product, then comes the price followed by brand
name.
 I increased my knowledge regarding the Hitachi and its operations.
 The importance of customer satisfactions which helps in building
company’s image.
 Getting questionnaires filled by customers helped me gain more confidences and
improved my speaking ability.
 I got to know how to handle problems at a work place and the importance of feedback.

63
CHAPTER-10
RECOMMENDATIONS

64
 RECOMMENDATIONS

 Hitachi needs to build strong qualified technical staff to ensure smooth acceptation of
their new product by the customers. Across the survey of 1441 consumers, so many are
facing operational problems.

 It should handle all customer contacts in a friendly, efficient and professional manner,
ensuring all enquires and complains are resolved to the customers satisfaction, in a timely
manner.

 Accurately record all customer details into the customer service system. Provide positive
feedback by meaningful report, making recommendations, to the relevant personnel, to
communicate the changing demands of the customer.

 It should treat every Customer as ‘special’, to build respect and retain loyalty
 HITACHI should work more on after sales service, as it is an important -criteria on which
consumer look upon before buying any new product.
 HITACHI should keep reasonable price so that consumers can afford it as consumers are
price sensitive.
 HITACHI should come up with more to television advertisements as it is a good medium
for promotions.

65
 SUGGESTIONS

 Number of HITACHI Showroom should Increase.

 Motivate to all Multi Showroom Dealer & Sales and service dealer to improvement of the
sales.
 The company should also concentrate on targeted Customers.
 The company should introduce new schemes like Buy Back old models of
the company.

66
 CHAPTER-11
SCOPE FOR FUTURE GROWTH

67
 SCOPE FOR FUTURE GROWTH

The scope of research in HITACHI is better in comparison to other companies. and

for further research i would like to give my 100% to do research in HITACHI and
contribute my skills and knowledge for further growth of this reputed organization
and for above research project I have gain so much knowledge which will help in my
future and for further research. Many factors predetermined Company strategy,
hierarchy etc. Make a company’s frame work pretty different from others thus there
are many assumptions inherent in the nature of the case itself.

68
 BIBLIOGRAPHY

1- Internet sites

 www.Scribed.com

 www.economictimes.com

 www.in.lge.com

 www.ficci.com

 www.hitachi.com

 www.Scribed.com

2-Magazines and Newspapers.

 Economic Times
 Business India
 Business Standard
 The Times of India

3-Books
 Marketing Management- By Philip Kotler
 Research Methodology-C. R. Kothari

69