A Research on ―Purchase Pattern of consumers for
Consumer Durables along with Preference towards Organized & Unorganized Retail Formats” In Partial fulfillment of MBA Program of Gujarat University (Batch: 2008-2010)
Submited By Priyam Mehta (08059) Umesh Lukhi (08052)
Submitted To Prof. Praneti Shah
N R institute Of Business Management
A GRAND PROJECT REPORT ON
―Purchase Pattern of consumers for Consumer Durables along with Preference towards Organized & Unorganized Retail Formats” IN PARTIAL FULFILLMENT OF TWO YEARS MASTER OF BUSINESS ADMINISTRATION PROGRAMME
Prof. Praneti Shah
Mehta Priyam (08059) Umesh Lukhi (08052)
N.R. Institute of Business Management
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Alwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items. However, there were still very few players in categories like vacuum cleaners, and dishwashers Consumer durables sector is characterized by the emergence of MNCs, exchange offers, discounts, and intense competition. The market share of MNCs in consumer durables sector is 65%. MNC's major target is the growing middle class of India. MNCs offer superior technology to the Consumers whereas the Indian companies compete on the basis of firm grasp of the local market, their well acknowledged brands, and hold over wide distribution network. However, the penetration Level of the consumer durables is still low in India. Indian Consumer durables market used to be dominated by few domestic players like Godrej, Voltas, Allwyn and Kelvinator. But post liberalization many foreign companies have entered into Indian market dethroning the Indian players and dominating Indian market the major categories being CTV, REFRIGRATOR, MICROWAVE OVEN and WASHING
MACHINES. India being the second largest growing economy with huge consumer class has resulted in consumer durables as the fastest growing industries in India. LG, SAMSUNG the two Korean companies have been maintaining the lead in the market with LG being leader in almost all the categories. The rural market is growing faster than the urban market, although the penetration level is much lower .The CTV segment is expected to the largest contributing segment to the overall growth of the industry. The rising income levels double-income families and consumer awareness were the main growth drivers of the industries.
We express our sincere thanks to Prof. Praneti Shah, our Grand Project guide to have given us the opportunity to work on such a challenging project. We also thank our institute N.R. Institute of Business Management for providing us all the necessary resources required in our study.
Again we would like to earnestly thank those all people who give us their valuable time for us in questionnaire survey. All the interaction with them was really a good experience and added some valuable knowledge and experience.
Last but not the least I would also like to thank our friends who took time off to share insights about their experiences this helped us...