FORTUNE INSTITUTE OF INTERNATIONAL BUSINESS

The strategy to bust sales of Hitachi air conditioners at Croma store

Project Report on

SUBMITTED BY: SUBMITTED

TO: Raj Chandrawanshi Dr. Mokhalles
Mehdi
ROLL NO -- 23PGDM157

Company Mentor: Designation:

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 Mr. Tarun Soni Regional Sales
Manager
Table of Contents

S.no. Contact Page no.

1 Title Page 1
2 Acknowledgment 3

3 Declaration by the Student 4

4 Executive Summary 5

5 Introduction 6
6 Industry Analysis 7

7 Product Range of the 11

Company

8 Growth Trends in the 12

HVAC Industry
9 Future Outlook 13

10 15
Characteristics of Industry
Maturity

11 Market Structure 22

12 Connecting Internship 27
Experience
13 Company Snapshot 30

10 Conclusion 41
11 References 42

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 ACKNOWLEDGEMENT

I would like to present this project report for Hitachi air conditioners with immense pleasure.
It has been an enriching experience for me to undergo my internship training at "Croma store
as a brand-promoter for Hitachi air conditioners", which would not have been possible
without the goodwill and support of the people around me. As a student of "The Fortune
Institute of International Business", I would like to express my sincere thanks to all those
who helped me during my corporate internship program. I would like to express my gratitude
to those who encouraged me to complete this project and for allowing me to work with a
prestigious organization.

I would like to thank Mr. Tarun Soni, Area Sales Manager, for allowing me to do my project
work in the organization and for lightening my way of progress with their guidance. My
sincere and deepest thanks to Dr. Mokhalles Mehdi, Faculty Member of "Fortune Institute of
International Business", New Delhi for having spared his valuable time with me and for all
the guidance given in executing the project as per requirements.

I would like to give my special thanks to my parents & my brother as their love, support, and
blessings enabled me to complete this project work. However, I accept the sole responsibility
for any possible error or omission and would be extremely grateful to the readers of this
project report if they bring such mistakes to my notice.

Raj Chandrawanshi
23PGDM157

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 DECLARATION BY THE STUDENT

I, hereby, declare that the work presented in this report, entitled “The strategy is to expand
the brand and boost sales of Hitachi air conditioners in the Croma store located at the New
palasia City Indore ” in fulfillment of the requirements for the PGDM Program, submitted to
Fortune Institute of International Business, New Delhi is an authentic record of my work and
is free from any type of plagiarism, carried out under the supervision of Mr. Pranav Rajan
Prasad (Corporate Mentor) and Dr. Mokhalles Mehdi (Faculty Mentor). I also declare that the
work is embodied in the present report.

(i) is my original work and has not been copied from any source, and

(ii) not been submitted for any other Degree or Diploma of any university/Institution

Raj Chandrawanshi
23PGDM157

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 Executive Summary

This internship report titled "Enhancing Customer Experience with Hitachi Air Conditioners
at Croma" details my comprehensive experience as an intern at Croma, focusing on the sales
and customer service aspects of Hitachi air conditioners. The report aims to provide insights
into the tasks and responsibilities handled, the skills developed, and the overall learning
outcomes from this practical experience.

During my internship, I had the opportunity to work closely with the sales team at Croma, a
leading retail chain in electronics and home appliances. My primary focus was on Hitachi air
conditioners, a prominent brand known for its quality and technological innovation. The
objective was to enhance customer experience through effective sales techniques, product
knowledge, and superior customer service.

The several key areas:

1. Assignment Performed: My daily tasks included assisting customers with product

inquiries, demonstrating the features and benefits of Hitachi air conditioners, managing
inventory, and supporting promotional activities. I was also involved in understanding
customer needs and providing tailored solutions to ensure customer satisfaction. Additionally,
I participated in training sessions to deepen my knowledge of the products and improve my
sales techniques.

2. Action Plan During the Work: An action plan was devised to achieve the internship
objectives effectively. This included setting daily and weekly goals, such as the number of
customer interactions, sales targets, and participation in promotional events. Regular
feedback sessions with my supervisor helped in tracking progress and making necessary
adjustments to the action plan. Emphasis was placed on continuous learning and adapting to
the dynamic retail environment.

3. Conclusive Experience and Suggestions: My internship at Croma was a highly enriching

experience. I gained valuable insights into the retail industry, particularly in sales and
customer service. I developed strong communication and interpersonal skills, which are
crucial for engaging with customers and understanding their needs. One of the key takeaways
was the importance of product knowledge in building customer trust and driving sales. Based
on my experience, I suggest that future interns receive more structured training on product
features and sales strategies at the beginning of their internship to maximize their
effectiveness.

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CHAPTER 1:

INTRODUCTION –
SIGNIFICANCE OF TOPIC UNDER STUDY

The strategy is to expand the brand and boost sales of Hitachi air conditioners at the Croma
store located in the New Palasia Indore:

Increasing Brand Awareness of Hitachi air conditioners holds significant importance for
several reasons: -

Market Expansion: The profitable market of Indore boasts a broad consumer base with a
strong purchasing power. Hitachi air conditioners may reach a wider audience and broaden its
business beyond its present clientele by raising brand awareness in this area.

Competitive Advantage: There are several well-known brands fighting for consumers'
attention in the fiercely competitive air conditioners sector. By increasing brand recognition
in Indore, Hitachi air may differentiate itself from rivals, possibly taking a bigger market
share and being the customer's favorite option.

Revenue Growth: A heightened brand awareness often correlates with increased sales and
revenue. By capturing the attention of Indore consumers and effectively communicating the
unique selling propositions of , Hitachi air conditioners can drive sales growth and maximize
profitability in the region.

Building Brand Equity: A brand's reputation and perceived worth are all part of its brand
equity, which is developed through a great brand awareness campaign. The increasing
recognition and familiarity of Hitachi air conditioners among consumers in Indore serves to
bolster the brand's overall reputation and fortify customer loyalty and trust.

Future Growth: Creating a solid presence in both Indore sets the stage for Hitachi air
conditioners' long-term growth and sustainability. By making an early investment in brand
recognition, the business can build enduring relationships with customers, get a competitive
edge in the marketplace, and maintain its success in the area over time.

Strategizing for brand expansion and sales upliftment of Hitachi products in the New Palasia
Region is crucial for leveraging the region’s economic potential, achieving competitive
advantage, and driving sustainable business growth.

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CHAPTER 2:

INDUSTRY ANALYSIS

For the hot climate of India, air conditioners have become the need of the modern-day life in
contrast to the earlier perception that it is a luxury product. Buyers search a lot of information
on the available brands in the market during their purchase. During selection of any brand
and purchase a lot of factors are influenced by the consumer in this activity. The main
objective of this study was to identify the most important factors consumers were looking for
while purchasing A.C. With the help of literature review, eight factors were identified. The
research was
conducted in Surat City with Sample size of 150 respondents. Non-Probability convenience
sampling was used and a structured questionnaire was used to collect data.
Key-Words: Air-Condition, hot & humid
Introduction to Air-Condition

History

Air conditioning actually has roots in second century China, where an inventor named Ding
Huane crafted a manually powered rotary fan. The concept of air cooling also intrigued the
great American inventor and statesman Benjamin Franklin, who in 1758 conducted
experiments with evaporation and alcohol to attain
freezing temperatures. The first modern air conditioner was invented in 1902 by Haviland
Carrier, a skilled engineer who began experimenting with the laws of humidity control to
solve an application problem at a printing plant in Brooklyn, NY.

Air conditioning is a system used to cool down the temperature in an inside space by
removing the existing heat and moisture from the room. Essentially, they work by taking
warm air into a system and dispersing cold air but there is much more to this process. The air
conditioner in a central heating and cooling system provides cool air through ductwork inside
your home, by providing a process that draws out the warm air inside, removing its heat.

India is one of the fastest growing economies in the world having GDP growth rate above
7%. It is also having a hot tropical climate where the temperature easily rises up to 45 degrees
Celsius in summer. So, people manage this weather condition by 2 options- air conditioners
and air coolers. Constantly rising temperature along with
The increasing purchasing power, all households is helping to increase the growth of air
conditioner market. The pre-liberalization era of Indian economy has major Indian companies
like Godrej, Videocon, Voltas have the major market share but after liberalization, many
foreign players such as LG, whirlpool, Samsung, IFB, Daikin, Mitsubishi, Hitachi entered

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into the Indian market and create a dramatic change in the Indian market. Now Indian AC
market is highly competitive with the coming of domestic, international and unorganized
market
participant.

Consumer preferences are defined as the subjective (individual) tastes, as measured by utility,
of various bundles of goods. They permit the consumer to rank these bundles of goods
according to the levels of utility they give the consumer. Consumer preference is defined as
the subjective tastes of individual consumers, measured by their satisfaction with those items
after they’ve purchased them. This satisfaction is often referred to as utility.

Consumer value can be determined by how consumer utility compares between different
items. Consumer preferences can be measured by their satisfaction with a specific item,
compared to the opportunity cost of that
item since whenever you buy one item; you forfeit the opportunity to buy a competing item.

One of the research studies conducted on consumer preference towards purchasing air-
conditioners focuses on analyzing the factors influencing consumer decision making in this
specific product category (Chang et al., 2005).
The study examined various factors such as brand reputation, price, energy efficiency,
functionality, and aesthetics.

The findings of the study showed that consumers considered energy efficiency and
functionality as the most important factors when purchasing an air-conditioner. Additionally,
brand reputation was also found to have a significant impact on consumer preference.
Another study focused on understanding the relationship between design attributes, specific
emotions, and consumers' willingness to pay for air-conditioners.

The study found that design attributes such as aesthetics and environmental sustainability
have a positive effect on consumers' willingness to pay for air-conditioners (Chitturi, 2018).
Furthermore, the study highlighted the importance of firms developing expertise in
understanding and leveraging these relationships to maximize profit margins (Chitturi, 2018).

These findings suggest that consumers place a great emphasis on the energy efficiency,
functionality, and brand reputation when making a purchase decision for air-conditioners.
The research also found that aesthetics and environmental sustainability are important design
attributes that can influence
consumers' willingness to pay for air-conditioners. Overall, the literature review suggests that
factors such as energy efficiency, functionality, brand reputation, aesthetics, and
environmental sustainability play a significant

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role in shaping consumers' preferences and decision-making process when purchasing air-
conditioners.

Industry Overview: Johnson Controls-Hitachi Air Conditioning

Johnson Controls-Hitachi Air Conditioning operates within the heating, ventilation, and air
conditioning (HVAC) industry, a critical sector for residential, commercial, and industrial
applications. The HVAC industry is essential for maintaining indoor air quality, providing
thermal comfort, and ensuring the energy efficiency of buildings and infrastructure.

Current Status of the HVAC Industry

The HVAC industry has been experiencing steady growth driven by several key factors:

1.Increasing Demand for Energy Efficiency: With growing concerns about climate change
and rising energy costs, there is a significant push for energy-efficient HVAC systems. This
demand is driving innovation in the industry, leading to the development of advanced
technologies and smart systems that optimize energy use.

2. Technological Advancements: The integration of IoT (Internet of Things) and smart

technologies in HVAC systems has revolutionized the industry. These advancements allow
for better monitoring, control, and maintenance of HVAC systems, enhancing their efficiency
and reliability.

3. Urbanization and Infrastructure Development: Rapid urbanization and the expansion of

infrastructure projects, especially in emerging economies, are boosting the demand for
HVAC systems. The need for modern HVAC solutions in new residential, commercial, and
industrial buildings is propelling market growth.

4.Health and Comfort: The COVID-19 pandemic has heightened awareness about indoor
air quality and the importance of effective HVAC systems in maintaining healthy indoor
environments. This has increased demand for advanced air purification and ventilation
systems.

Johnson Controls-Hitachi Air Conditioning

Johnson Controls-Hitachi Air Conditioning is a joint venture that combines the technological
expertise of Hitachi in air conditioning with the global reach and operational excellence of
Johnson Controls. This partnership has positioned the company as a leading player in the
HVAC industry.

- Product Range: The company offers a wide range of air conditioning products, including
residential air conditioners, commercial air conditioning systems, and industrial cooling
solutions. Their products are known for their energy efficiency, innovative technology, and
reliability.

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- Market Position: Johnson Controls-Hitachi Air Conditioning has a strong presence in key
markets around the world, including North America, Europe, Asia, and the Middle East. The
company's commitment to sustainability and energy efficiency aligns with global trends and
regulatory requirements, enhancing its market competitiveness.

- Innovation and R&D: The company invests heavily in research and development to stay at
the forefront of technological advancements. Their focus on developing smart, connected
HVAC solutions ensures they meet the evolving needs of customers and industry standard.

Industry Analysis:

The HVAC (Heating, Ventilation, and Air Conditioning) industry plays a crucial role in
providing comfort and environmental control across various sectors, including residential,
commercial, and industrial settings. Understanding the current landscape of this industry is
essential to contextualize how your internship experience at Croma aligns with potential job
opportunities.

1. Technological Advancements:
- IoT and Smart Technologies: HVAC systems are increasingly integrating IoT capabilities,
allowing for remote monitoring, predictive maintenance, and energy optimization.
Companies are investing in smart solutions that enhance user experience and operational
efficiency.

2. Energy Efficiency Standards:

- Governments and regulatory bodies worldwide are enforcing stringent energy efficiency
standards. This trend drives innovation in HVAC systems towards sustainability, reducing
carbon footprints and operational costs for businesses and homeowners alike.

3. Health and Comfort Focus:

- The COVID-19 pandemic heightened awareness of indoor air quality. There's now a
greater emphasis on HVAC systems that improve ventilation, filtration, and air purification,
ensuring healthier indoor environments.

4. Market Expansion:
- Urbanization and infrastructure development in emerging markets are driving the demand
for HVAC solutions. Companies are expanding their footprint globally, offering tailored
products and services to meet diverse regional needs.

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PRODUCT RANGE OF THE COMPANY:

Hitachi offers a diverse range of air conditioning products tailored to various needs and
preferences. Here's an overview of their product range:

Residential Air Conditioners

Split Air Conditioners: These are the most common type, with a separate indoor and
outdoor unit. They come in various capacities and include features like inverter technology,
advanced filtration systems, and smart connectivity.

Window Air Conditioners: Compact units designed to fit into a window frame, suitable for
smaller spaces.

Portable Air Conditioners: Stand-alone units that can be moved from room to room,
offering flexibility in cooling different areas of a home.

Commercial Air Conditioners

Cassette Air Conditioners: Ceiling-mounted units that distribute air evenly across a room,
ideal for offices and commercial spaces.

Ducted Air Conditioners: These systems allow for discreet air conditioning through ducts,
providing a uniform temperature across large areas.

VRF (Variable Refrigerant Flow) Systems: Highly efficient systems that can control the
temperature of multiple zones independently, making them suitable for large buildings and
complexes.

Chillers: Used for large-scale cooling in industrial and commercial applications, these
systems can be air-cooled or water-cooled.

Specialized Systems

Heat Pumps: Dual-function systems that can provide both heating and cooling, offering
year-round climate control.

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Multi-Split Systems: Allowing multiple indoor units to be connected to a single outdoor
unit, these systems are ideal for homes with multiple rooms or small commercial buildings.

Key Features Across Models

Inverter Technology: Enhances energy efficiency by adjusting the compressor speed to

maintain the desired temperature.

Advanced Filtration: Systems like nano-titanium filters that remove dust, bacteria, and
odors.

Smart Connectivity: Many models offer smartphone app controls and compatibility with
home automation systems.

Energy Efficiency: High Energy Star ratings for lower electricity consumption. 5.Quiet
Operation: Designed for minimal noise, ensuring a comfortable environment.

Hitachi's range of air conditioners caters to a wide array of needs, from small residential
setups to large commercial installations, combining advanced technology, energy efficiency,
and durability.

Growth Trends:

Emerging Markets:

The HVAC business has undergone a transformation thanks to e-commerce, which has
expanded its reach and ease. This shift in consumer behavior—many resorting to internet
platforms for their needs—was intensified by the COVID-19 epidemic.

Future Prospects: As internet penetration rises and logistical networks get better, it is
anticipated that online sales will keep expanding. To gain traction in this sector, businesses
are spending money on digital marketing, opening online stores, and forming alliances with
major e-commerce players.

2. Reaching Rural Markets:

Businesses are concentrating more on rural markets as a result of increased income levels,
better distribution networks, and government programs like building roads and electrifying

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rural areas. Businesses are reaching out to local dealers and preferences, distributing their
products to hitherto untapped rural areas, and offering their products in smaller, more cheap
volumes in an effort to capitalize on these markets.

3. Health:

Because of rising knowledge of lifestyle diseases and customer demand for healthier living,
there is a growing tendency among consumers to breathe healthy air. As a result of this
change in consumer preferences, businesses have developed PM 2.5, natural, and functional
filters in addition to concentrating on enhancing their offerings with eco- friendly use of
materials.

4. Sustainability and Ethical Consumerism:

Consumers of today are more concerned with how their purchases will affect society and the
environment. In response, businesses are implementing eco-friendly strategies including fair
labor standards, minimizing plastic use, and sustainable sourcing. Organic, Fair Trade, are
among the most popular ones.

5. Innovative Products and Packaging:

HVAC firms are constantly coming up with innovative concepts to make themselves stand
out. This includes developing novel product formulae, enhancing nutritional value, and
meeting dietary requirements. Using biodegradable materials, creating convenient resealable
packets, and creating eye-catching packaging are some examples of packaging advancements.

6. Technology and Digitalization:

Automation, AI, and data analytics are transforming the HVAC industry. These tools
facilitate the development of focused marketing campaigns, enhanced consumer experiences,
and supply chain optimization.

Regulatory Changes:

As governments place a greater emphasis on consumer safety and environmental protection,

businesses are required to abide by food safety requirements, packaging laws, and advertising

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guidelines. Keeping abreast with these standards enables businesses to evade fines and foster
customer confidence.
Future Outlook:
Emerging Markets:

The middle class in nations like China, India, and Southeast Asia is expanding, urbanization,
and increased disposable incomes are all contributing to growth.
Opportunities: Due to their low present market penetration and rising consumer buying
power, these markets have a lot of potential.

Personalization and Customization:

Consumer Preferences: Products that are made to meet specific wants and preferences are
becoming more and more popular.

Technological Support: Businesses can now offer customized products and personalized
recommendations, which increases consumer loyalty and happiness. This is made possible by
technological advancements.

Sustainable Practices:

Long-Term Perspective: Long-term prosperity depends on sustainability. Businesses may

increase consumer loyalty and brand reputation by implementing sustainable practices.

Initiatives: These include implementing the circular economy's tenets, cutting carbon
footprints, and employing renewable energy.

d) Health and Wellness:

Expanding industry: Due to customer demand for goods that promote both physical and
mental well-being, the health and wellness industry is expanding swiftly.
Product Development: Businesses are creating goods

Maturity of the Industry:

Most people agree that the HVAC sector is mature, particularly in developed economies. But
the degree of maturity might fluctuate greatly throughout various product categories and
geographical areas. This is a breakdown of the HVAC industry's maturity:

Market saturation: A significant section of the population usually purchases consumer

products such as air conditioners goods. These products are widely used in developed
markets, where there is a large number of available brands. Thus, there is less room for
substantial market expansion.

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Established brands and market leaders: Mature HVAC markets are often dominated by
well-established brands and market leaders. These brands have built strong customer loyalty,
brand recognition, and extensive distribution networks over the years. They have achieved a
significant market share and enjoy economies of scale, making it challenging for new entrants
to compete effectively.

Market expansion: Compared to new or developing markets, mature HVAC markets may
grow more slowly. The market penetration and population growth have leveled off, which
has resulted in a more steady and predictable demand for HVAC goods. The primary sources
of growth prospects include inflation, shifts in consumer tastes, and new product
development.

Rivalry between brands: As the HVAC sector matures, there is frequently fierce rivalry
between brands. Market share is actively contested by established players, who frequently use
aggressive marketing tactics, price promotions, and product differentiation to obtain an
advantage. Companies may have reduced profit margins and more pressure to hold onto
market share as a result of this rivalry.

Emphasis on operational efficiency: With a focus on cost optimization and operational

efficiency, mature HVAC companies seek to improve their supply chain, manufacturing
processes, and distribution networks. They aim to streamline operations, reduce costs, and
maintain profitability in the face of fierce competition and stagnant market growth.

Characteristics of Industry Maturity:

High Market Penetration: In mature markets, HVAC products are widely used. Most
households regularly buy essential items like food, beverages, personal care, and cleaning
products.

Stable Demand: Demand for HVAC products is steady and not much affected by economic
changes because they are essential goods that people need all the time.

Intense Competition: The HVAC sector is very competitive with many established brands.
Companies compete on price, quality, innovation, and brand loyalty.
Low Growth Rates: Mature markets have lower growth rates. Growth usually comes from
innovation, gaining market share, or expanding into new segments rather than increased
overall consumption.

Consolidation: Bigger companies often buy smaller ones to achieve economies of scale,
expand their product range, and enter new markets.

Brand Loyalty: Consumers in mature markets are very loyal to brands. Established brands
maintain market share through consistent quality and effective marketing.

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Regional Variations:

Developed Markets (e.g., North America, Western Europe):

High Maturity: These markets are very mature with saturated demand. Growth mainly
comes from premium products, innovation, and niche markets.

Focus on Innovation: Companies drive growth by focusing on health and wellness trends,
sustainable products, and personalized offerings.

Emerging Markets (e.g., India, China, Southeast Asia):

Growth Phase: These markets are growing with rising incomes, urbanization, and a growing
middle class driving demand.

Market Penetration: There is a lot of potential for increasing market penetration, especially
in rural areas.

Higher Growth Rates: These markets usually have higher growth rates compared to
developed markets.

Product Segment Variations:

Food and Beverages:

Mature Segment: This segment is generally mature with high market penetration and stable
demand. Growth is driven by innovation and health trends.
Personal Care:

Growth Opportunities: This segment sees growth in premium products and emerging
markets. Trends like natural and organic products are important.

Stable Demand: Demand is stable due to the essential nature of these products. Growth is
driven by innovation in eco-friendly products.

The HVAC industry, while mature in many developed markets, still has growth opportunities
through innovation, premium products, and expansion into emerging markets. Companies
need to adapt to changing consumer preferences, such as sustainability and health
consciousness, to stay competitive. In emerging markets, the industry is still growing, with

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significant potential for increased penetration and higher growth rates. The Hitachi air
conditioners operate in this dynamic environment and must leverage innovation and market
expansion strategies to capitalize on both mature and growing segments of the industry.

External Economic Factors and their Effect on the Industry:

Consumer Spending:
A growing economy gives people greater confidence and disposable income. They purchase
more HVAC products s, not just the necessities but also luxury and non-essential items.

Investment:
During periods of economic growth, businesses invest more in marketing, expansion, and
new products.

Cost of Goods Sold (COGS):

Inflation raises the price of labor, raw materials, packaging, and transportation, increasing the
cost of production for HVAC businesses.

Pricing Strategies:

Businesses may increase prices to offset these expenses, which may cause customers to
purchase less expensive goods or cut back on consumption.

e) Interest Rates:
Cost of Borrowing: Businesses that borrow money must pay a higher interest rate, which
restricts their ability to invest in marketing, research, and expansion.

f) Credit for consumers:

Increased interest rates may cause consumers to spend less, particularly on FMCG products
that are not necessities.

Fiscal Policy:

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Taxes: Adjustments to taxes have an impact on profitability. While higher taxes have the
opposite effect, lower taxes enhance discretionary income and spending.
Government investment: Increased government investment on social programmes and
infrastructure can stimulate the economy and increase consumer spending.

h) Tariffs and Trade Barriers: Trade Policies Raising taxes and other obstacles drive
increase the price of imported goods, mess with supply chains, and have an impact on
availability and manufacturing costs.

i) Free Trade Agreements: By lowering tariffs and streamlining trade, these cut costs and
create new markets for HVAC products

Technological Factors:

Technological advancements play a crucial role in shaping the HVAC industry, influencing
everything from production processes to consumer engagement. Here’s an in-depth look at
the technological factors impacting this sector, with specific insights relevant to Hitachi air
conditioners.

Key Technological Factors:

Automation and robotics: In the manufacturing sector, automation boosts productivity, cuts
expenses, and minimizes errors. Robots are more accurate and quicker at doing jobs like
quality checking and packaging. Automation may increase productivity, reduce labor costs,
and guarantee constant product quality for Hitachi air conditioners.

Artificial Intelligence (AI) and Data Analytics: By examining purchasing trends and
preferences, data analytics assists businesses in comprehending customer behavior. AI is able
to tailor marketing and forecast future trends. By controlling inventories and forecasting
demand, it also improves supply chains. Hitachi air conditioners can enhance its marketing
tactics, inventory management, and consumer insights by utilizing artificial intelligence and
data analytics.

Digital platforms and e-commerce: E-commerce has grown to be a significant sales

channel, enabling direct-to-consumer sales outside of traditional retail locations. Targeted
campaigns are made possible by digital marketing using email and social media. Increasing e-
commerce and digital marketing can help Hitachi air conditioners reach a wider audience,
boost revenue, and improve client relations.

Internet of Things (IoT): Real-time inventory monitoring using IoT devices helps to avoid
stockouts and overstocking. They also make it possible for smart packaging to have freshness
indications and product information. IoT use by Hitachi air conditioners can enhance supply
chain effectiveness, inventory management, and customer value.

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Sustainable Technologies: With recyclable and biodegradable solutions, eco-friendly
packaging innovations lessen their influence on the environment. Production methods that
use less energy result in reduced carbon footprints and operating expenses. Hitachi's
investment in sustainable technologies satisfies consumer demand for environmentally
friendly products and strengthens their reputation as a conscientious business.

Virtual reality (VR) and augmented reality (AR): allow customers to view products in
their homes and access interactive information while creating immersive shopping
experiences. Utilizing these technologies in marketing can result in memorable brand
experiences. By using AR and VR, Hitachi can improve the shopping experience, increase
consumer interaction, and differentiate their products.

(f) Regulatory, Political, and Legal Concerns:

Regulatory, political, and legal concerns significantly impact the HVAC industry, influencing
operational practices, market strategies, and overall business sustainability. For Hitachi air
conditioners), navigating these concerns is crucial for maintaining compliance, managing
risks, and capitalizing on growth opportunities. Here’s a detailed exploration of these factors:

Regulatory Concerns:

Product Safety and Standards:

Regulations: It is essential to abide by national and international standards for the quality,
safety, and labeling of products. This covers laws governing food safety as well as
requirements for hygienic practices and packaging.

Effect on Hitachi: To guarantee that all products fulfill regulatory requirements, Hitachi may
need to conduct routine audits, quality control inspections, and certification procedures.
Product recalls, fines, and reputational harm to brands can result from noncompliance.

Rules for Marketing and Advertising:

Regulations: Ads targeting children and other vulnerable groups are prohibited, as are health
claims and deceptive information. These guidelines apply specifically to food and beverage
advertising.

Effect on Hitachi: Hitachi air conditioners must ensure that all promotional materials are
truthful and not misleading by ensuring that their marketing plans comply with these
regulations. Advertising restrictions and fines may follow violations.

Environmental Regulations:

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Regulations: Increasing focus on sustainability has led to stricter regulations on waste
management, emissions, and the use of environmentally harmful materials.

Effect on Hitachi: It needs to adopt sustainable practices, such as reducing plastic usage,
improving waste management, and minimizing carbon emissions. Compliance may require
investing in eco-friendly technologies and sustainable sourcing practices.

Packaging Regulations: Clear and accurate labeling of ingredients, nutritional information,

allergens, and expiration dates is mandated by regulatory authorities.

Effect on Hitachi: It must ensure all product labels are accurate and comply with local and
international regulations. This involves regular updates to labeling practices and adherence to
new regulatory requirements.

Political Concerns:

Impact of Political Stability: Businesses are more willing to invest and run operations in
politically stable areas. However, political disturbances like as demonstrations or hostilities
can disrupt the production and distribution of goods and cause consumers to become
apprehensive about making purchases.

Effect on Hitachi: Hitachi s operations may suffer if their political situation becomes
unstable. As a result, they require backup plans and strategies for dealing with these hazards.

Impact of Government Policies: Governments set laws governing trade, taxes, and industry
support. Regulations that support local manufacturing, for example, can be beneficial to
businesses such as Hitachi.

Impact of International Relations: Trade agreements, import and export duties, and the
ease of doing business internationally can all be impacted by how well nations get along.
Trade restrictions or hostilities between nations may harm companies such as FCL.

Legal Concerns:

Intellectual Property (IP) Impact:

Protecting things like logos, inventions, and creative work is crucial to keep a brand's identity
and new ideas safe.

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Impact on Hitachi:
It needs to make sure its ideas and brand are protected everywhere it operates. This means
watching out for anyone copying or using their stuff without permission and taking legal
action if needed.

Consumer Protection Laws Impact:

Laws that protect customers' rights, like making sure products are safe and that warranties are
honored, are strict.

Impact on Hitachi:

It has to follow these laws to avoid legal problems and keep customers trusting them. They
have to give accurate info about their products and make sure warranties are honored if
something goes wrong.

Labor Laws Impact:

Rules about how employees should be treated, including fair pay, safe workplaces, and
respecting their rights, are important.

Impact on Hitachi:

FCL must treat their workers fairly and follow these rules in all their locations and with their
suppliers. Not following these rules can lead to legal trouble and hurt their reputation.

(g) Competitive Environment and Changes in the Hitachi air must comprehend the
competitive landscape in order to plan strategically and hold onto its market share in the
HVAC sector. Below is a detailed examination of the current state of the competition and
how it affects Hitachi:

The HVAC (Heating, Ventilation, and Air Conditioning) industry is a significant sector
within the broader construction and building services markets. It encompasses the
manufacturing, installation, and servicing of heating, ventilation, and air conditioning
systems for residential, commercial, and industrial applications. Here's a detailed overview of
the market structure and competition within the HVAC industry:

Market Structure

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1. Manufacturers
- Major Players: The HVAC manufacturing sector is dominated by a few large companies
that have a global presence. These include Carrier Corporation, Daikin Industries, Johnson
Controls, Trane Technologies, and Lennox International. These companies have extensive
product lines, significant R&D capabilities, and wide distribution networks.

- Mid-sized Companies: There are also numerous mid-sized manufacturers that serve
regional markets or specialize in niche products. Examples include Nortek Global HVAC,
AAON, and Bard Manufacturing Company.
- Specialized Manufacturers: Some companies focus on specific components or systems,
such as heat exchangers, air handlers, or thermostats.

2. Distributors
- National Distributors: Large national or international distributors, such as Watsco Inc.
and Ferguson Enterprises, handle a wide range of HVAC products and offer extensive supply
chain services.
- Regional Distributors: These are smaller distributors that operate within specific regions
or states, providing more localized service and support.

3. Contractors and Installers

- Large Contractors: Companies like Comfort Systems USA and EMCOR Group offer
comprehensive HVAC installation and maintenance services, often for large commercial or
industrial projects.
- Local Contractors: Many small businesses operate locally, serving residential and small
commercial clients. These contractors are crucial for installation, repair, and maintenance
services.
- Specialty Installers: Some contractors specialize in particular types of HVAC systems,
such as geothermal heat pumps or high-efficiency systems.

4. Service Providers
- Maintenance and Repair Services: Many HVAC companies offer ongoing maintenance
and repair services, which provide a steady revenue stream and help maintain customer
relationships.
- Energy Efficiency Consultants: These providers focus on optimizing HVAC systems for
energy efficiency, often working with commercial and industrial clients.

Competition

1. Product Differentiation
- Innovation and Technology: Companies compete by developing advanced technologies,
such as smart thermostats, variable refrigerant flow (VRF) systems, and energy-efficient
models.

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 - Brand Reputation: Established brands with a history of reliability and performance hold
significant market share.

2. Pricing Strategies
- Cost Leadership: Some companies compete primarily on price, offering cost-effective
solutions for budget-conscious consumers.
- Premium Products: Other companies focus on high-end, technologically advanced
systems that command higher prices.

3. Distribution Channels
- Direct Sales: Large manufacturers often sell directly to large commercial clients or
through dedicated sales teams.
- Distributor Networks: Many products are sold through extensive networks of
distributors and dealers, which can affect pricing and availability.
4. Service Quality
- Customer Support: Excellent customer service and after-sales support are critical
competitive factors, particularly in the residential market.
- Service Contracts: Offering comprehensive service contracts for maintenance and repair
can differentiate companies in a competitive market.

5. Market Segmentation
- Residential vs. Commercial: The residential HVAC market focuses on individual
homeowners and small businesses, while the commercial market serves larger buildings and
industrial facilities.
- New Construction vs. Retrofit: Companies may specialize in new installations for
construction projects or retrofitting and upgrading existing systems.

6. Regulatory Environment
- Energy Efficiency Standards: Regulations promoting energy efficiency, such as the U.S.
Department of Energy (DOE) standards, drive innovation and competition in developing
compliant products.
- Environmental Regulations: Laws regulating emissions and refrigerants (e.g., phasing
out certain HFCs) also impact product development and competition.

7. Global vs. Local Competition

-Global Players: Large multinational corporations dominate the global market with
extensive R&D capabilities and broad product lines.
- Local Competitors: Small and mid-sized companies often have a strong presence in local
markets, offering tailored solutions and more personalized service.

Key Trends

1. Energy Efficiency and Sustainability

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 - Growing demand for energy-efficient and environmentally friendly HVAC systems is
driving innovation and competition.
- Government incentives and rebates for energy-efficient systems further stimulate market
demand.

2. Smart HVAC Systems

- The integration of IoT and smart home technology into HVAC systems is a significant
trend, with companies competing to offer advanced features such as remote monitoring and
control, predictive maintenance, and enhanced energy management.

3. Emerging Markets
- Rapid urbanization and industrialization in emerging economies are expanding the HVAC
market, with increasing demand for both residential and commercial systems.

4. Health and Indoor Air Quality (IAQ)

- The COVID-19 pandemic has heightened awareness of indoor air quality, leading to
increased demand for HVAC systems that offer improved ventilation, air purification, and
humidity control.

The HVAC industry is characterized by a complex market structure with significant

competition among manufacturers, distributors, contractors, and service providers. Key
competitive factors include product innovation, pricing strategies, distribution channels, and
service quality. The industry is also influenced by regulatory standards and evolving trends
such as energy efficiency, smart technology, and indoor air quality. Understanding these
dynamics is crucial for stakeholders looking to navigate the HVAC market successfully.

The HVAC industry faces several key challenges that impact its operations, growth, and
profitability. Here are the main challenges:

1. Regulatory Compliance

- Energy Efficiency Standards: Meeting increasingly stringent energy efficiency regulations

set by governments and international bodies can be challenging. Compliance often requires
significant investment in research and development.
-
Environmental Regulations: The phase-out of certain refrigerants due to their
environmental impact (such as those with high global warming potential) necessitates the
development and adoption of new, compliant technologies.

2. Technological Advancements

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- Keeping Up with Innovation: Rapid technological advancements in HVAC systems,
including smart technology and IoT integration, require continuous innovation and
adaptation. Companies must invest in R&D to stay competitive.
-
Cybersecurity: As HVAC systems become more connected and integrated with smart home
and building management systems, ensuring cybersecurity becomes increasingly important to
protect against hacking and data breaches.

3. Skilled Labor Shortage

- Training and Education: There is a shortage of skilled technicians and engineers in the
HVAC industry. Training and retaining qualified personnel is crucial but challenging.
- Aging Workforce: Many experienced HVAC professionals are approaching retirement age,
leading to a potential gap in knowledge and skills.
4. Supply Chain Disruptions

- Global Supply Chains: The HVAC industry relies on a global supply chain for
components and raw materials. Disruptions caused by geopolitical tensions, natural disasters,
or pandemics can lead to delays and increased costs.

- Component Shortages: Specific components, such as microchips for smart HVAC

systems, may face shortages, affecting production schedules and delivery times.

5. Market Competition

- Price Pressures: Intense competition, particularly from low-cost manufacturers, can lead to
price pressures and reduced profit margins.
- Differentiation: With many players in the market, differentiating products and services
through innovation and quality is essential but challenging.

6. Economic Factors

- Economic Cycles: The HVAC industry is sensitive to economic fluctuations. Recessions or

slowdowns in construction and real estate markets can reduce demand for new installations.

- Cost Management: Rising costs for raw materials, labor, and transportation can impact
profitability. Managing these costs while maintaining quality and competitiveness is a
continual challenge.

7. Sustainability and Environmental Impact

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- Sustainable Practices: There is increasing pressure to adopt sustainable practices
throughout the supply chain and product lifecycle. This includes reducing waste, improving
energy efficiency, and using environmentally friendly materials.

- Consumer Awareness: Growing consumer awareness about environmental issues means

that companies must balance sustainability with affordability and performance.

8. Customer Expectations

- Quality and Reliability: Customers expect high-quality, reliable HVAC systems that
require minimal maintenance and provide consistent performance.

- Service Expectations: There is a growing expectation for excellent customer service,

including prompt installation, maintenance, and repair services. Meeting these expectations
requires efficient operations and effective customer relationship management.

9. Technological Integration

- Compatibility: Ensuring that new HVAC systems are compatible with existing building
management systems and other smart technologies can be complex.
- User Training: Educating customers on the use of advanced HVAC systems and smart
controls is essential to maximize the benefits and efficiency of these technologies.

10. Health and Safety Concerns

- Indoor Air Quality (IAQ): There is increasing concern about indoor air quality,
particularly in the wake of the COVID-19 pandemic. HVAC systems must not only provide
temperature control but also improve ventilation and air purification.

- Safety Standards: Ensuring compliance with health and safety standards in both
manufacturing and installation processes is critical to avoid accidents and legal issues.

Navigating these challenges requires strategic planning, continuous innovation, effective

workforce management, and a strong focus on customer satisfaction. Companies that can
address these issues effectively are more likely to succeed in the competitive HVAC market.

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Connecting Internship Experience:

My internship at Croma provided hands-on experience and exposure to various facets of the
HVAC industry, particularly focusing on Hitachi air conditioners. Here’s how my internship
experience aligns with key aspects of an aspirational job description:

1. Customer Engagement and Technical Knowledge:

- Customer Interaction: During your internship, you assisted customers in understanding

and selecting suitable air conditioning solutions. This experience honed your ability to
communicate effectively, assess customer needs, and provide tailored recommendations.

- Product Knowledge: I have gained deep insights into Hitachi air conditioners, including
their features, technical specifications, and benefits. This technical expertise is crucial for
demonstrating product value and addressing customer queries effectively.

2. Sales and Marketing Support:

- Promotional Activities: I contributed to promotional campaigns and sales initiatives at

Croma. This involvement sharpened your skills in sales strategy execution, promotional
planning, and inventory management.

- Market Awareness: Through my internship, you developed an understanding of market

dynamics, customer preferences, and competitive positioning of HVAC products. This
knowledge is vital for positioning products effectively in the market and driving sales growth.

Aspirational Job Description:

Based on the industry analysis and my internship experience, an aspirational job description
within the HVAC industry might emphasize the following:

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- Technical Expertise: Demonstrated proficiency in understanding HVAC products,
including their features, functionalities, and applications.

- Customer Relationship Management: Proven ability to engage with customers, assess

their needs, and deliver solutions that enhance satisfaction and loyalty.

- Sales and Business Development: Experience in supporting sales activities, contributing

to revenue growth, and implementing marketing strategies to promote HVAC products.

- Adaptability and Innovation: Capability to adapt to technological advancements,

integrate new solutions (such as smart HVAC systems), and drive innovation within the
organization.

- Problem-Solving and Team Collaboration: Skills in problem-solving, teamwork, and

collaboration to address challenges and achieve organizational goals effectively.

By aligning my internship experience at Croma with the requirements of an aspirational job

description in the HVAC industry, you present yourself as a well-rounded candidate equipped
with practical skills, technical knowledge, and industry insights. Your ability to engage
customers, leverage technical expertise, support sales initiatives, and adapt to industry trends
positions you as a valuable asset capable of making significant contributions to an
organization’s success in the dynamic HVAC market.

Business Model and MY Contribution:

How does Johnson Controls-Hitachi Air Conditioning generate

revenue and profits?
Johnson Controls-Hitachi Air Conditioning generates revenue and profits through a
multifaceted business model:
1. Revenue Streams:
- Product Sales: Revenue is primarily generated from the sale of air conditioning
units and related equipment to residential, commercial, and industrial clients.
- Service Fees: Additional revenue comes from providing installation, maintenance,
and repair services.
- Subscription Fees: Some customers may subscribe to ongoing maintenance
plans or extended warranties.
- Partnerships and OEM Agreements: Collaborations with other manufacturers and
companies to produce and sell co-branded products.

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- Energy Efficiency Solutions: Offering energy-efficient HVAC solutions that can
lead to cost savings for clients, sometimes incentivized by governmental energy
efficiency programs.

- Innovation and Technology:

2. Profit Generation:
- Cost Management: Effective supply chain management, operational efficiencies,
and economies of scale help keep production costs low.
Investment in R&D to create cutting-edge,
energy-efficient air conditioning systems that can be sold at a premium.
- Global Market Expansion: Expanding into emerging markets and increasing sales and
revenue and getting hands on new markets.

The Ansoff Matrix,

also known as the Product-Market Expansion Grid, is a strategic tool used to identify
and analyze growth opportunities. It provides four main strategies for growth: Market
Penetration, Market Development, Product Development, and Diversification. Let's
apply this framework to Johnson Controls-Hitachi Air Conditioning.

1. Market Penetration

This strategy focuses on increasing sales of existing products in existing markets.

For Johnson Controls-Hitachi, this could involve:
- Enhancing Marketing Efforts: Intensifying advertising and promotional
campaigns to increase brand awareness and drive sales.
- Competitive Pricing: Offering competitive pricing strategies or discounts to
attract more customers.
- Improving Customer Service: Providing exceptional after-sales service and
support to build customer loyalty and encourage repeat purchases.
- Increasing Distribution Channels: Expanding distribution networks to ensure
products are readily available to consumers.

2. Market Development
This strategy involves entering new markets with existing products. Johnson
Controls-Hitachi can pursue this by:
- Geographical Expansion: Entering new geographical regions or countries where
The brand has little or no presence.
- Targeting New Customer Segments: Identifying and targeting new customer
segments such as small and medium-sized enterprises (SMEs), educational
institutions, or healthcare facilities.
- Partnerships and Alliances: Forming strategic partnerships with local
distributors, retailers, or service providers to enter new markets more effectively.

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- Leveraging Online Platforms: Utilizing e-commerce platforms to reach a broader
audience, especially in regions where physical presence is limited.

3. Product Development

This strategy focuses on introducing new products to existing markets. For Johnson
Controls-Hitachi, this could involve:
- Innovation and R&D
: Investing in research and development to create new and
improved air conditioning solutions, such as smart ACs with advanced IoT features

CHAPTER 3:

COMPANY SNAPSHOT

JOHNSON CONTROLS–HITACHI AIR

CONDITIONING: MAKING COMPLEX SELLING
EASIER WITH A PRODUCT CONFIGURATOR

Johnson Controls-Hitachi Air Conditioning, a joint venture between Hitachi products and
Johnson Controls, is in the heating, ventilation, and air conditioning (HVAC) business.
The company has a group that produces scroll compressors that power air conditioning
and refrigeration systems. Scroll compressors work in a circular motion instead of an
up-and-down piston action and have a reputation for reliability and efficiency. Scroll
compressors are deployed in several different ways to meet the needs for efficiency,
comfort, and affordability – and therein lies the challenge. Finding a suitable scroll
compressor for a specific application requires understanding variables such as
refrigerant, rating conditions, and cooling capacity.
Source: Johnson Controls-Hitachi Air Conditioning

Johnson Controls–Hitachi Air Conditioning needed an interactive product configurator to

manage an ever-changing product catalog. The solution was a cloud-based selection tool,
accessible from anywhere. The configurator presents multiple selection criteria for
application, refrigerant, rating conditions, and cooling capacity. The configuration also
generates technical documentation based on specific customer input to download.

An interactive product configurator is ideal for companies that produce or distribute

highly configurable or customizable products, with multiple options and features
available for the same product. The importance of product configuration is currently
increasing dramatically for a wide range of industrial companies because of the growing
demand for individually specified products.

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Tom Parrish, Vice President, Compressor Business Unit at Johnson Controls-Hitachi Air
Conditioning, says, “We provide our clients with superior and quality engineered product
solutions that deliver outstanding performance. Our future growth strategy required a much
stronger customer interaction fueled by flexible and scalable digital tools – those that are able
to provide easy access, high responsiveness and improve the quality of our initial customer
engagements, particularly of new customers seeking newer Product applications.” When
choosing which solution would fit the needs of Johnson Controls-Hitachi Air Conditioning.
He continues by saying, “The team at Infosys has made this a reality by delivering a cloud-
based digital product selection tool that refreshes product data, introduces new models,
updates drawings or specifications instantly, helping us reach out to a global customer base.
We are very proud to provide this Transformational experience to our customers, and we
believe that it is beginning to pay off as we are
seeing higher win rates”.

SELECTING A STRATEGIC PARTNER

Custom software is complex and taking on product configurator development in-house
is challenging and most likely tricky, and more time-consuming than it may be
worth.Johnson Controls–Hitachi Air Conditioning decided to outsource the work to Infosys
based on trust and a long-standing relationship. Infosys understands the HVAC business and
has extensive experience in sales and product configuration. VijayNarayan, Senior Vice
President and Regional Head of Manufacturing—Americas,
Infosys, remarks, “Manufacturing Organizations are adapting Digitization in a big way and in
particular enhancing customer experience in every engagement. We at Infosys were thrilled
to take our partnership with Johnson Controls-Hitachi Air Conditioning a step ahead and help
simplify their complex selling processes with our advanced set of
Cloud-based Engineering solutions and services. Infosys has created digital catalogs to help
customers search for products based on
features and attributes. Infosys has a product configuration solution that accelerates the sales
cycle by enabling sales teams to accurately configure products and estimate
product costs. The solution captures customer requirements, automatically maps
requirements with the product portfolio, and optimizes pricing.
Infosys uses a program named Cobalt. Infosys Cobalt is a set of services, solutions,
and platforms for enterprises to accelerate the cloud journey. I have seen this in action with
several customers, and Infosys has an excellent rinse and repeat process to reduce the risk of
migration and the implementation time.

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A detailed SWOT analysis for Hitachi air conditioners:

Strengths
1. Brand Reputation:
- Hitachi is a well-established and reputable brand known for its quality and reliability,
which enhances customer trust and loyalty.

2. Technological Innovation:
- Hitachi is known for integrating advanced technology into its air conditioning units, such
as inverter technology, smart controls, and energy-efficient designs.

3. Global Presence:
- Hitachi has a strong global presence, allowing it to tap into various markets and diversify
its revenue streams.

4. Product Range:
- The company offers a wide range of air conditioning products, including residential,
commercial, and industrial solutions, catering to diverse customer needs.

5. Energy Efficiency:
- Hitachi air conditioners are known for their energy efficiency, which appeals to
environmentally conscious consumers and helps in reducing operational costs.

6. Strong R&D Capabilities:

- Hitachi invests heavily in research and development, continuously improving its products
and staying ahead of technological trends.

Weaknesses

1. High Cost:

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 - Hitachi air conditioners tend to be priced higher than many competitors, which may limit
their appeal to price-sensitive customers.

2. Complex Technology:
- Advanced features and technology may be complex for some users to understand and
utilize fully, potentially leading to customer dissatisfaction.

3. Limited Market Penetration in Some Regions:

- Despite its global presence, Hitachi may have limited market penetration and brand
recognition in certain emerging markets compared to local competitors.

4. After-Sales Service:
- In some regions, Hitachi's after-sales service may not be as robust or widespread as that of
its competitors, which can affect customer satisfaction and brand loyalty.

Opportunities

1. Growing Demand for Energy-Efficient Products:

- Increasing global awareness of energy conservation and environmental sustainability
creates a significant opportunity for Hitachi's energy-efficient air conditioners.

2. Smart Home Integration:

- The growing trend towards smart homes presents an opportunity for Hitachi to expand its
smart air conditioning solutions and integrate them with other smart home systems.

3. Expansion in Emerging Markets:

- Expanding into emerging markets with growing middle-class populations and rising
demand for air conditioning can drive significant growth.

4. Government Incentives:
- Government incentives and subsidies for energy-efficient appliances can boost sales of
Hitachi's eco-friendly air conditioners.

5. Commercial and Industrial Segments:

- Increasing demand for sophisticated HVAC systems in commercial and industrial sectors
presents an opportunity for growth in these segments.

Threats

1. Intense Competition:
- The HVAC industry is highly competitive, with numerous well-established brands like
Daikin, Mitsubishi, and LG, which can impact market share and pricing power.

2. Economic Fluctuations:

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 - Economic downturns or fluctuations can reduce consumer spending on non-essential
appliances like air conditioners, affecting sales.

3. Technological Obsolescence:
- Rapid technological advancements may lead to obsolescence of current products,
necessitating continuous investment in R&D.

4. Regulatory Challenges:
- Compliance with varying international regulations and standards can be challenging and
may require additional investment.

5. Supply Chain Disruptions:

- Global supply chain disruptions, as seen during the COVID-19 pandemic, can impact
production schedules, increase costs, and delay product delivery.

Conclusion

Hitachi air conditioners have significant strengths, particularly in brand reputation,

technological innovation, and energy efficiency. However, they also face challenges such as
high costs and intense competition. By leveraging opportunities in emerging markets, smart
home integration, and growing demand for energy-efficient products, Hitachi can continue to
grow and maintain its competitive edge. Addressing weaknesses and mitigating threats
through strategic planning and investment will be crucial for sustained success.

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 CHAPTER 4:
…Research Project
Abstract: The purpose of the article is to determine how satisfied New Palasia city Indore
residents are with their air conditioners. With the use of the right methodology, two study
objectives were accomplished. The sample size was 50. In this study, convenience
sampling was used. It has been discovered that brand preference and other factors influencing
air conditioner purchase have an impact on customer satisfaction with air conditioners.
Customer happiness has been linked to brand loyalty towards air
conditioners, according to research. This leads to the conclusion that marketers and
distributors must develop the finest pricing strategies, star ratings, warranties, and guarantees,
among other things.

Keywords: Customer’s satisfaction, Air-Conditioner, strategies

INTRODUCTION

The AC market is currently one of the industries with the fastest growth rates worldwide and
in India. Consumption has been rapidly
rising in the modern world from year to year. The data demonstrates how consumers’ income
levels have changed over time. Currently,
ACs are utilized almost everywhere in the world. This is primarily due to compatibility. We
need comfort when we travel and we also
need comfort when we attend events. We needed comfort even when we were at home. ACs
are therefore necessary at home, in the
office, and elsewhere. Traveling, sporadic parties, etc. India is a semi-arid country, so it is
impacted by all four seasons, including
summer, rainy, and winter. A system called an air conditioner uses heat transfer to move heat
from a space to the outside in order to
chill it down. The cool air can then be circulated inside a building using ventilation.

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OBJECTIVES OF THE STUDY
➢ To study the socio-economic status of the respondents.
➢ To analyze the satisfaction level of customers towards A/c Brands.
➢ To know the brand awareness & brand loyalty towards A/c brands.
➢ To understand the factors that influence the buying decision of A/c brands.

STATEMENT OF THE PROBLEM

In this modern world, it is important to know about the needs and satisfaction level of the
customers, which helps the manufacturers to know what to produce. The representation of the
brands depends on the customer’s satisfaction level towards the product and services. The
study has been conducted to know about the satisfaction level and the factors influencing the
customers to choose the air conditioner brands.
SCOPE OF THE PROBLEM
The study is to analysis the customer satisfaction level towards the air conditioner brands
which helps to know about the level of
consumer satisfaction and the measures to increase the level to attract the consumer towards
their brand in future.

RESEARCH METHODOLOGY
Research methodology refers to the theoretical analysis of the methods appropriate to a field
of study or to the body of methods and
principles particular to a branch of Due to the limited period of study, only 50 customers
selected as sample units from the population.
The study is conducted on the basis of the response of the selected sample and findings are
drawn based on their responses.

Source of data:
Primary data:
The first-hand information was collected by the researcher after finalizing the study area.
Through well-structured questionnaire primary
data was collected. It was collected from 50 respondents.

Secondary data
The secondary data was collected from the study related websites, journals, and magazines. It
was collected through the library to
facilitate proper understanding of the conceptual frame work about the study.

Area of the study

The study is conducted in New Palasia indore.

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Area of period
The study is conducted period for a period 2nd May to June 31, 2023

Sample size:
Due to the limited period of study, only 50 customers were selected as a sample unit from
the population. The study is conducted on the basis
of the response of the selected sample and findings are drawn based on their responds.

Tools used by Analysis:

➢ Percentage analysis
➢ Chi square
Limitations:
➢ Selected Sample is limited to 50. Hence findings cannot be generalized.
➢ Respondents may be biased. So the collected data may not be reliable.
➢ Customers’ preferences and opinions are supposed to change from time to time.

REVIEW OF LITERATURE
A review of the literature is a search and assessment of the body of work on your selected
topic or issue. In the social sciences, a
literature review typically has an organizational pattern and combines summary and
synthesis, frequently within particular conceptual categories. It may simply consist of a
summary of important sources, though. A synthesis is a reorganization or rearranging of the
material in a way that influences how you are preparing to examine a research problem, as
opposed to a summary, which is a rehash of
the key information from the source.

➢ Farbod Souri (2017) to determine the relationship between total equity, total loyalty, and
client satisfaction. A sample of 384 clients
was selected for analysis as a stepwise group. Information was disseminated throughout the
population of applied math by using
normal form with 23 questions, which confirmed the quality and dependability of the data.
The study discovered a significant and
advantageous association between brand equity and customer loyalty and satisfaction.
➢ Study and market (2018) One of the biggest sources of market research, The Research and
Market, predicted that the AC market
will increase steadily by 12.2% between 2018 and 24. Also, it provided a perspective on the
potential impact new company entries
may have. Both on a national and international scale.

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➢ SHARE IT (2015) According to a report published in 2015 by Israel, which looked into
market size, consumer preferences, and
market growth in the Indian market for air conditioners, the market for ACs may expand by
15% annually. And in 2014, the market
for air conditioners was around 15,000 crores. Consumers select 5star inverter AC for their
future needs, from their point of view.

OVERVIEW OF THE STUDY

AIR CONDITIONERS
The process of removing heat from an enclosed space to create a more comfortable interior
environment is known as air conditioning,
and it is frequently abbreviated as A/C (US), AC (US), or air con (UK). In some instances, it
also involves strictly controlling the
humidity of the interior air. A mechanical “air conditioner” or alternatively a number of other
techniques, such as passive cooling or
Ventilated cooling can be used to provide air conditioning. The systems and methods that
supply heating, ventilation, and air
conditioning includes air conditioning (HVAC). Heat pumps resemble air conditioners in
many ways, but they can heat and cool an
enclosed space simultaneously by using a reversing valve. The majority of air conditioners,
which use vapor-compression refrigeration,
come in a variety of sizes, from tiny ones used in cars or small rooms to enormous ones that
can chill huge structures. In cooler climes,
air source heat pumps—which may be used for both cooling and heating—are becoming
more prevalent. The International Energy
Agency (IEA) estimates that as of 2018, there were 1.6 billion air conditioning units installed,
accounting for an estimated 20% of the
electricity used in buildings worldwide. By 2050, this number is expected to rise to 5.6
billion. The United Nations urged the adoption
of alternatives such passive cooling, evaporative cooling, selective shading, wind catchers,
and greater thermal insulation in addition to
calling for more environmentally friendly technology.

LG AIR CONDITIONERS

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These air conditioners quickly chill your room so you won’t feel hot or cold. Using
environmentally friendly refrigerants, LG air
conditioners help you cut down on your carbon footprint. Moreover, an LG AC won’t require
an external stabilizer. It returns the cooled
air to the indoor space, and transfers the unwanted heat and humidity outside. LG Air
Conditioning Technologies is a leading
manufacturer in the global air conditioning market with innovative commercial and
residential air conditioners and building
management solutions. The cold side of an air conditioner contains the evaporator and a fan
that blows air over the chilled coils and
into the room. The hot side contains the compressor, condenser and another fan to vent hot air
coming off the compressed refrigerant to
the outdoors.

SAMSUNG
In India, Samsung is one of the most widely used smartphone manufacturers, but the
company also leads the market for air conditioners.
Samsung air conditioners include clever features that allow them to cool your house or
workplace while yet utilizing minimal power.
Using the most recent convertible technology, they give users far more versatility than
standard inverter ACs. The abundance of safety
and health features that Samsung air conditioners offer sets them apart from the competition.
Here’s everything you need to know. The
Tricare Filter that Samsung air conditioners are equipped with removes big dust particles,
fibers, and animal hairs. A Zeolite Coated
Filter also collects fine dust and gets rid of bacteria, viruses, and allergies. The Triple
Protector Plus technology included in Samsung
split air conditioners also guard against harm from electrical current fluctuations and surges.

PANASONIC
According to a statement from Panasonic Corporation, its Heating & Ventilation A/C
Company successfully acquired all of the
outstanding shares of Systemair AC SAS, Systemair S.r.l., and Tecnair S.p.A., which run
commercial air-conditioning businesses and
are owned by Systemair AB (“Systemair”), a significant Swedish manufacturer of air quality
and air-conditioning equipment.
Manufacturer in the ventilation and commercial air-conditioning industries, will be acquired
by Panasonic Corporation’s Heating &
Ventilation A/C Company for an enterprise value of 100 million Euros, according to the
company’s announcement.

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DAIKIN
Most homeowners undoubtedly choose affordability, effectiveness, and dependability. Yet, if
you’re searching for a system that is both
dependable and quiet, Daikin can be a suitable option for you. On the market right now,
Daikin offers some of the quietest and most
dependable air conditioning units. Most homeowners undoubtedly choose affordability,
effectiveness, and dependability. Yet, if you’re
searching for a system that is both dependable and quiet, Daikin can be a suitable option for
you. On the market right now, Daikin offers
some of the quietest and most dependable air conditioning units. As all Daikin air
conditioners feature energy-saving inverter
technology, you can be confident that your electricity costs will remain low all year round.
Your energy-saving, whisper-quiet Daikin air conditioner is built to use energy in such a way
that waste is virtually eliminated. This will enable you to save money on your energy
costs for years to come.
HITACHI
With a wide range of goods available in the Indian market, Hitachi air conditioners are
simply the best. The top Hitachi air conditioners
are detailed below for your consideration. Hitachi is a well-known Japanese company that
produces consumer home equipment with a
focus on air conditioners. A joint venture between Johnson Controls International plc and
Hitachi Appliances, Inc. led to the
establishment of Johnson Controls-Hitachi Air Conditioning in October 2015. (now Hitachi
Global Life Solutions, Inc.). Your Hitachi
air conditioner may be rattling for a variety of causes, all of varying intensity. Rattling noises
are frequently a sign that the components
in your air conditioner are beginning to wear out and become loose. Twigs, however, could
also be the cause of the rattle. Given the
company’s standing in the consumer electronics industry, Hitachi TVs are renowned for their
dependability. You may rely on them to
provide dependable TVs even though they aren’t the best option. Hitachi TVs can operate
continuously for up to seven years before
showing symptoms of wear.
Data Analysis And Interpretation
Percentage Analysis:

TABLE 1
DESCRIBES DEMOGRAPHICS VARIABLE ON GENDER
S.NO GENDER GROUP RESPONDENTS PERSENTAGE
1 Female 31 62.0
2 Male 19 38.0
TOTAL 50 100.0

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Interpretation:
The above table shows the gender wise classification of the respondents. 62%of the
respondents were female. 38% of the respondents
were male.

TABLE 2
DESCRIBES DEMOGRAPHICS VARIABLE ON AGE
S.NO AGE GROUP RESPONDENTS PERSENTAGE
1 18-20 24 48.0
2 20-30 13 26.0
3 30-40 13 26.0
TOTAL 50 100.0
Interpretation:
The above tablet shows that 48% respondences belonged the age group of 18 to 20. And 26%
respondences belonged the age group of
20 to 30. And 5% of respondents belonged to the age group of 30 to 40.
Chi-Square analysis:
DESCRIBE THE RELATIONSHIP BETWEEN AGE AND GENDER
Ho: There is no significant relationship between air conditioner brands' age and gender.
H1: There is a significant relationship between air conditioner brands' age and gender.

CONCLUSION:
1. Brand reputation and reliability: Customers value air conditioner brands that have a
good reputation for reliability, durability, and
quality.
2. Price and affordability: The price of the air conditioner is an important consideration for
customers, and affordability is often a key
factor in their purchase decision.
3. Energy efficiency: Customers are increasingly concerned about the energy efficiency of
air conditioners and prefer brands that are
eco-friendly and energy-efficient.
4. After-sales service and support: Customers value brands that offer excellent after-sales
service and support, including warranty,
repair, and maintenance services.
5. Features and technology: Customers are attracted to air conditioner brands that offer
advanced features and technologies such as
remote control, smart home integration, and air purification.

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 References

1. Chang, et al. (2005). Consumer Decision Making in the Air-Conditioner Market.

2. Chitturi, R. (2018). Design Attributes and Consumer Willingness to Pay.
3. Carrier, W. (1902). The Invention of Modern Air Conditioning.
4. Franklin, B. (1758). Experiments with Evaporation and Alcohol.
5. Huane, D. (2nd Century). The Rotary Fan.
6. Johnson Controls-Hitachi Air Conditioning. Company Reports and Market Analysis.
7. HVAC Industry Overview. Retrieved from HVAC.com
8. Energy Efficiency Standards. Retrieved from Energy.gov
9. Market Expansion in Emerging Economies. Retrieved from MarketWatch
10. Technological Advancements in HVAC. Retrieved from TechCrunch
11. Health and Comfort Trends. Retrieved from Healthline

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