GROUP PROJECT

ON CARS

Hatchbacks
Brand 1: I10
Brand 2: POLO

Submitted by:
Group F (Section E)
Cynthia Moreau IE/17/002
Pragjyotika Nandan
PGP/17/030
Pooja Punjabi PGP/17/102
Reeshil N PGP/17/229
Gopika Pushpangadan
PGP/17/320

INDIAN CAR MARKET

The Indian car manufacturing industry has grown in recent years riding on increase purchasing power and new
emerging middle class, a phenomena observed after the economic liberalization of 1991.Barring few exceptions of
contraction like in 2013, The industry however returned strong growth in 2014 and 2015 and will accelerate and is
projected to continue to grow in value and volume terms through to 2020.
Domestic demand though has been driving production growth in India, but this is something of a waiting game for
manufacturers currently as rising incomes have st are unlikely to yield the kind of spending power required for a car
purchase. For example, in 2014 the percentage of the Indian population with an income above $20,000 (PPP) was
just 0.1% compared to 64% in the US.
According to a report by Marketline, The Indian car manufacturing industry had total revenues of $17.6bn in 2015,
representing a compound annual growth rate (CAGR) of 2.2% between 2011 and 2015. In comparison, the South
Korean and Chinese industries grew with CAGRs of 1.1% and 9.4% respectively, over the same period, to reach
respective values of $54.3bn and $172.2bn in 2015.
Industry production volume increased with a CAGR of 3% between 2011 and 2015, to reach a total of 3,418.6
thousand units in 2015. The industry's volume is expected to rise to 3,883.2 thousand units by the end of 2020,
representing a CAGR of 2.6% for the 2015-2020 period.
The performance of the industry is forecast to accelerate, with an anticipated CAGR of 5% for the five-year period
2015 - 2020, which is expected to drive the industry to a value of $22.5bn by the end of 2020. Comparatively, the
South Korean and Chinese industries will grow with CAGRs of 5% and 2.9% respectively, over the same period, to
reach respective values of $69.4bn and $199.2bn in 2020.

he industry produced a total 23,960,940 vehicles including passenger vehicles, commercial

vehicles, three wheelers, two wheelers and quadricycle in April-March 2016 as against
23,358,047 in April-March 2015, registering a marginal growth of 2.58 percent over the same
period last year.
The success of a product in India is not predictable as it is very difficult for market researcher to
understand the buying behavior of a consumer in India as their purchase decision is entirely different form
needs stated. For past few years due to countrys economic growth and increasing PPP( purchasing power
parity) households form middle and lower middle segment of SEC (socio-economic category) are able to
afford consumer durables like air conditioner. Air conditioner was once considered as a mark of luxury
and only upper socio-economic category household were able to afford it. According a Euro-monitor
article disposable income of Indian households are increasing but the air-conditioning industry is
increasing at even higher rate. According to All India Air conditioning & Refrigeration Association
(AIACRA) CAGR of air conditioning system is 15-20% which is highest among all the countries.

Source:
Euromonitor

Penetration rate of ACs are very poor in Indian household which is

Main reasons behind low penetration rate are low
income and load-shading in smaller cities and rural
areas. ACs have reached very small numbers of
households in small cities and towns on the other side
rural market is totally untapped and it would take quite
a time to penetrate in rural market.

less that 4%.

BUYING BEHAVIOR OF AC
IN INDIA
Due to increasing purchasing power parity, favorable weather
conditions, growing Indian economy, me-too attitude of
Indian consumers and other factors air conditioning is strengthening its foothold in Indian market. Buyer
make an informed decision as product like ACs are very high involvement product. To understand the
buying behavior of ACs in India lets understand the needs, usage, benefits and motivation behind
purchasing this product.

Needs of AC in India
Changing lifestyle: As Indian population is moving towards service sector from manufacturing and
agriculture sector, their lifestyle have changed over this transition period. Middle class population and
above are getting habituated of comfortable life and products like ACs fit right in place in these situation.
Hot and humid climate: Average temperature of India has been increasing over years which demands a
mode to keep the heat down. Households which cant afford ACs they use air cooler to keep the
temperature down.
Densely populated cities and pollution: Due to increasing population and industries in cities
temperature as well as pollutants in the air are increasing, which makes living difficult in the cities. At this
point need of ACs is felt strongly.
To keep the temperature of other electronic appliances down: Many industries run on heavy software
machines which increases the temperature of room. Sometime increasing heat of rooms and appliances
lead to overheating and appliances stop working.
Social Status: For Indian consumers it is really important to keep up to the society. If one household buys
some product it triggers a chain reaction of purchase in the society to prove their capability to own a
similar product.
Fresh air and lesser noise: ACs refines the air before emitting air which keeps a room fresh and cool. On
the other hand one need not open the doors and windows for fresh air which reduces noise level in the
room. Which gives a feeling of sanity in chaotic life of overcrowded cities.
Products like ACs cater to personal need and environmental wants.

Usage of AC in India
Major customers of air conditioner are commercial sectors. Almost all the offices, malls, big and medium
sized shops or market places are equipped with ACs. Apart from these commercial sector many household
have also started consuming ACs.
Penetration of ACs in Indian household in less than 4% which is very low numbers. This number is higher
in metro or tier 1 cities. Rural market is still untouched.

ACs in India are mainly used in the summer when heat and humidity is at its peak. Most of the Indian
households are cost driven. So, unless air conditions are indeed required most of the household refrain
from using it in order to save electricity bills.

Benefits from Using ACs

Middle class in India consists major chunk of population. And this SEC category is highly driven on cost.
Though disposable income of these households are increasing these households take every possible
measure to cut down the cost of running the household.
Jain et al. have showed in his research that energy labeling have very less impact on buying behavior of
consumers. Initial price and other social benefit outweighs the benefits derived from ACs consuming
lesser power.
Benefits derived from usage of AC can be manifold which have been listed below:
Social benefits: Me-too behavior and reputation in society yields major benefits for middle class families.
Clean and clear air: ACs help in keeping air clean in the house which reduces the chances of getting
breathing diseases.
Unaffected by weather and heat: This is the final benefit derived from using this product.
Maslow hierarchy of Needs
Indian consumers gives more weightage to social benefits than personal
benefit. And this is the main
reason behind high growth rate of ACs in Indian market.

Motivation
Motivation can be positive as well as negative. Impact of motivating factors may be long term as well as
short term.
Need is the major motivating factor behind buying ACs it can be safety, social or esteem. For upper class
its more of safety than social or esteem. On the other
hand. Social needs and esteem as major driving factors.
As discussed in the earlier section, these benefits play as
positive motivations for buying this product. Apart from
these factors reducing prices and new and innovative
technologies are also contributing towards positive
motivation. There could be negative motivating factors
as well as discussed below:
- Polluted air may lead to perilous respiratory
diseases
- Foul smell and suffocating environment may
lead to strain in the relations
- Inferior image in the society
Air conditioner is a high involvement product and before making a purchase of high end product
consumers carryout a thorough research. They keep needs, benefits and price points in consideration.

SAMSUNG: TELEVISION COMMERCIALS

Advert 1: https://www.youtube.com/watch?v=1cX4SOQdQoE Welcome Summer
Summers are generally vacation time for school going kids and youngsters, families also go on holidays.
The advertisement uses the same theme and shows what all people generally do in summers (playing,

hanging out with friends, eating summer food. It mainly focusses on Indian Summers which generally
means blazing hot sun.
Theme: Welcome Summer. Samsung AC, keeps Indian Summer outside
Central Character(s)
Personality and attributes
of central character(s)

Young couples and Kids

Carefree attitude of the characters irrespective of blazing hot sun and their
motivation to enjoy

Setting

The TVC depicts that you can do whatever you want even in Indian summers
because Samsung AC is there to keep your home cool
The ad begins with a lady opening the window through which sun shows. Then
guys are shown playing volley ball on the beach and then they look at the sun and
do hand action of Come On Sun. A lady is shown eating watermelon and other
one in an open jeep looking at the sun with her arms wide open for the wind, kids
are shown playing near a tree. Good music is used. Towards the end, benefits of ac
are conveyed like the SVC compressor which keeps the room cool irrespective
how hot it is outside and a happy young couple is shown sitting in living room
enjoying the ambience due to Samsung ac.
The advert is aimed at young population and families with kids

Drama

Inferred Consumer
Segment
Inferred Benefit Segment

This Ac comes with new(SVC) compressor which will keep the Indian Summers
outside and you can continue your activities as if there was no heat.

Cognitive & Affective Components depicted through the TVC : Cognitive components

The clear description of new features of the AC, the revolutionary SVC compressor
Stabiliser is not required
Emphasises the scorching heat in India
Cognitive elements are used only towards the end of the ad where the features of this ac are mentioned
Cognitive & Affective Components depicted through the TVC : Affective Components

The characters are happy and enjoying the delicacies of summer

Need for tension reduction, Need for expression, Need for assertion, Need for identification, Need for modelling :
The ad uses these all conveying through the activities of the characters like their playfulness, sitting on the terrace
without tension, desirable lifestyle shown through the girl in the jeep

Communication along central & peripheral route of persuasion

Central route Only at the end of the advert, the features of the new ac are conveyed directly.
Peripheral route The characters serve this purpose by depicting how Samsung ac brings about
happiness in the lives with new technology. They are enjoying all their activities irrespective of
the weather thereby saying that Samsung ac allows you to continue with normal lifestyle and
activities.
Positive & Negative Reinforcement
Positive Reinforcement Respite from heat
No negative reinforcement visible

Advert 2: https://www.youtube.com/watch?v=3jTerYStE6Q
Theme: Samsung On savings On (Ultra efficient Samsung ACs)
Central Character(s)
A young family of 4 (two school going kids)
Personality and attributes
of central character(s)

No specific personality attribute has been used. Just a normal day in a Indian familys
life has been depicted

Setting

A normal day in an Indian familys life is shown though in fast forward mode.

Drama

The ad begins with the wife opening the window(which is below the ac), and asks the
husband to get ready for work, and the kids get ready for school. Then they have
breakfast together. After they leave, the wife sits in front of the ac to relax for a bit and
then again gets busy with household chores. Evening, everyone comes back home and
husband sits in front of the ac to relax for a moment then rushes again to change.
Everyone has dinner. The couple then has a private moment while sitting on the sofa and
are disturbed by kids. All this while the AC is on. Towards the end, the ad says life will
continue at this pace, but we have ultra efficient Samsung ac with multijet technology to
keep your home cool.
The advert is aimed Indian families

Inferred Consumer
Segment
Inferred Benefit Segment

The families who wish to relax in their long hectic days, Samsung ac provides them that
opportunity and feeling of relaxation

Cognitive & Affective Components depicted through the TVC : Cognitive components

The clear description of new features of the AC, the savings in electricity bill
Need for consistency, Need for Autonomy, Need for stimulation, Utilitarian need are shown by the hectic
lives of the characters and they need for some personal space and moments of peace
Need for stimulation is shown by the savings they make by using this ac
Affective Components
Need for tension reduction after work, Need for expression by love between the members of the family,
Need for affiliation by the care of the mother/wife has been shown

Communication along central & peripheral route of persuasion

Central route The ad clearly shows how hectic lives are these days for everyone is the family
thus ac is On all through the day. Also, the benefits of the new ac (Multi Jet technology, Ultra
efficient and stabiliser) which help in saving electricity.
Peripheral route The moments when the family members relax, the cool air coming out of the
ac is shown around the character using animation. Hence, conveying it is the air from ac which
helps one relax.
Positive & Negative Reinforcement
Positive Reinforcement Ease of life ->Happiness in the household Savings in electricity
bills
No negative reinforcement visible

NEWSPAPER ADS
Newspaper Ad 1

Newspaper Ad 2

Full page ad on the new Samsung ac with

Triple Protection Technology: Virus Doctor,
Stabiliser free and UTR plus. Special summer
offer with details of price of all models.

Full page ad on campaign Samsung On Savings

On launched in 2013 with free services offered
on purchase of acs during the offer period.

Detailed information regarding offers given for

new variants of ac with description of benefits
which consumers can logically process and
evaluate while considering purchase

Emphasis on messages like Its Now or Never

Offer, and offers like : Free installation, 0%
finance offer and 6 free services

Peripheral

Family care and protection used to convey the

new features. Virus Doctor, Air that Cares.
Pictures of a lady sleeping peacefully also
convey the benefits indirectly.

Uses the term Smart savings emphasising how

smart it would be to buy the ac now and
financing it wouldnt be a problem.

Cognitive Elements

New features of the AC are conveyed and also

says how the product is beneficial against
impure air, power fluctuations and extreme
heat. Prices of 4 different variants are also
mentioned with details of stores in different
areas of Mumbai. Very informative ad as is also
clearly specifies the details of all three new
features.
Uses the care aspect: Samsung ACs care for
your loved ones, just like you do. Also,
conveys how the product takes care of family
against heat and germs so that you can get care
uninterrupted
Purchase => Family protection + protection
from impure air and power fluctuations

Clearly stated benefits, however proper details

are not given. Describes the benefit of inbuilt
inverter and multi jet technology which helps in
saving electricity. The emphasis is mainly on
finances in this ad, from savings to free services
offered.

About the ad

Central Route
Persuasion

to

Affective Elements

Positive
Reinforcement ( No
negative visible)

The ad is highlighted by the word smart for

the savings made by this offer.

Purchase =>Savings + Free services + Saving on

electricity bill

MAGAZINE ADS
About the ad

Central Route to
Persuasion
Peripheral Route to
Persuasion

Magazine Ad 1

Magazine Ad 2

Latest technology -> protection from H1N1

virus apart from normal viruses. Claims
Samsung ac to be a virus doctor. Make your
home virus Free
Specifies the certification by 7 Health
associations. This ac not only protects from
normal viruses but also H1N1 is stated directly.

New Silver Nano health system in Samsung ac

that gives revitalizing, purer and cleaner air. It
is not an Indian ad.

Except for attractive Priyanka Chopra the ad

doesnt have anything concrete for low
involvement user.

Attractive female model and use of roses to

emphasize the revitalising air part

Clearly depicts the working to this ac to provide

cleaner air through the pictures.

Cognitive Elements

Very High Emphasis on Product features and

certification by health associations as details of
all associations are mentioned.

Details of parts of the ac which work to clean

the air shown through pictures to give
credibility to the product

Affective Elements

Low because it is an informative ad about the

new product proposition of protection from
h1n1.
No reinforcing element as its more of a factual
and informative ad

The use of red roses is an affective. The

peaceful and calm look on models face has
been used.
No reinforcing element as its more of a factual
and informative ad

Positive
Reinforcement ( No
Negative)

VOLTAS: TELEVISION COMMERCIALS

Advert 1: https://www.youtube.com/watch?v=12Fk-pmxtvc
Theme: VOLTAS All Weather AC
Central Character(s)

A middle aged couple and father of the lady

Personality and attributes of central

character(s)

The father is generally finding faults in his son-in-law

Setting

The TVC depicts how the AC will work even in Delhis hot weather and son-inlaw will impress the father-in-law with the Voltas Ac

Drama

The ad begins with a father of the girl arriving. He keeps on blaming the son-inlaw for various reasons. Even blames him for the heat in Delhi. At that point the
son-in-law says now I will turn the coffee into Kulfi with my Voltas All weather
AC. It works I sticky heat, normal heat and dry heat too.

Inferred Consumer Segment

The advert is aimed at middle class families

Inferred Benefit Segment

This Ac works in all kinds of weather. No matter how humid it is, the ac will serve
all purposes

Cognitive & Affective Components depicted through the TVC : Cognitive components

All Voltas ads generally convey the core value proposition of Voltas AC being suitable for all weather conditions.
In this ad too, the lead character says so
By showing a middle class family, the ad conveys the affordability of the AC
Cognitive & Affective Components depicted through the TVC : Affective Components
Shows the plight of all in-laws favouring their own child and finding faults in childs spouse
When blamed for Delhis hot weather, the son-in-law says if god has given this 50 degrees how is that his fault and
then is rescued by his Voltas AC and gains respect in eyes of father-in-law

Communication along central & peripheral route of persuasion

Central route The lead character says that his AC is suitable for all weather conditions and no matter
what temperature God creates outside, the AC will come to rescue. This has been conveyed using
central route.

 Peripheral route Impressing his father-in-law with the Ac, giving him respite in Delhis heat, the
lead character conveys the benefits of the Voltas Product indirectly. This is because generally it is not
easy to satisfy your in-laws.
Positive & Negative Reinforcement
Positive Reinforcement Respite from all kinds of heat
No negative reinforcement visible
Advert 2: https://www.youtube.com/watch?v=3q7AaQcXC3g
Theme: VOLTAS AC : Savings on electricity
Central Character(s)

Old parents

Personality and attributes of

central character(s)

Middle class parents who wont be able to afford the maintenance of a premium product
like AC

Setting

The son sends an AC to his parents. However, they have not used it as they are worried
about the bills.

Drama

Inferred Consumer Segment

The ad begins with the father going to collect the parcel son has sent( a Voltas Split Ac).
However, the parents are not happy with the gift. Son calls the mother and with her
hesitant voice, he comes to know they have not used the ac. Then they read their sons
letter which says this new Voltas Ac saves lot if electricity and serves you with less
power usage
The advert is aimed at middle class families

Inferred Benefit Segment

There is saving on the electricity consumption

Cognitive & Affective Components depicted through the TVC :Cognitive components

The sons letter conveys how this new AC saves on the bill so middle class families need not worry about the
maintenance costs that come with buying the product
The efficiency and less power usage of AC is conveyed by a voice in background
Cognitive & Affective Components depicted through the TVC : Affective Components
Shows the plight of middle class people who are not able to use the AC worried about the expenditure it would
cost
At the end, the mother is happy and drying her nail polish in Acs air showing that how conveniently they are
using the AC now

Communication along central & peripheral route of persuasion

Central route The character(son) who gifts the AC to his parents says that they need not worry
about the electricity bill as the AC is ultra-efficient and consumes less power.
Peripheral route The peripheral route is followed by initially showing worried parents and
then how happy they are with convenient use of the ac after the sons conveys ACs less power
usage. Hence, the product is affordable to lower-end consumers as well.

Positive & Negative Reinforcement

Positive Reinforcement Respite from heavy electricity bills
No negative reinforcement visible

NEWSPAPER ADS
Newspaper Ad 1
The new split ac from Voltas with
savings upto Rs 16000 and
exchange benefits. Very detailed
and informative ad.

About the ad

Central Route
Persuasion

to

Peripheral

Cognitive Elements

Affective Elements

Positive
Reinforcement

Clearly states the financial

benefits of buying this new split
ac. Detailed breakup of MRP,
EMI, down payment for two
models
has
been
shown.
Customer care numbers are also
given
in
case
further
clarifications are required.
It is more of direct ad except for
the happy couple which features
in every Voltas Ad.
Informative about new offer on
savings and exchange but limited
details. Also, cashback offer on
Citibank card is mentioned.
None

Purchase => Rs 16000 savings,

No down payment, easy EMI
option, No processing charges

Newspaper Ad 2
Jagmag Desh Mera India ka dil, India ka AC This
was a new campaign for Votlas ACs which has
launched a series of 50 ACs this to suit the wallets and
requirements of our much heterogeneous Indian
market.
The man in the store with only one light bulb and
wearing normal clothes is shown. They want to
eliminate the thought of paying increasing electricity
bills that are often accompanied with the installation of
an AC and plays the role of a mental blockage and
prevents a customer from buying a new one. They have
positioned the brand as one that gives the user a feeling
of "Responsible Usage
India ka Dil. India ka AC" saying that this ac for all
kinds of Indian Customers. They have shown a man in
small shop, thereby emphasizing that even lower end
consumers can afford products like AC.
Doesnt use cognitive elements, use of affective
elements is higher as they want to build the perception
of An AC for all.
Clearly uses the affective elements of patriotism,
compassion and aspirations of normal Indian
Consumer. The man shown in the ad is someone with
whom lot of Indian consumers can identify with.
Purchase =>Affordable prices

MAGAZINE ADS
About the ad

Central Route to
Persuasion
Peripheral Route to
Persuasion

Magazine Ad 1
Voltas all weather air conditioners. It is a
simple ad with not much clutter. Conveys
4 features of the ac and shows a happy
couple with next door neighbours image
Emphasis on term all weather. 4 features
specified below the picture of ac.
A happy middle aged couple sitting in the
living room is featured. Not using celebrity
emphasises the product is for masses.

Magazine Ad 2
Ad with a very low information just stating
the proposition of the product that it works in
all weather conditions
Just a message saying that irrespective of the
weather, ac provides you comfort
Attractive female model has been featured.
She is smiling and looks at comfort in her
house.

Cognitive Elements

Mention of 4 product features

Affective Elements
The happy couple
No reinforcement visible

Voltas all weather ac the message has been

written with name neha thus saying that this
is review of the customer.
The happy and smiling girl, customer review

CONSUMER LEVEL DATA

In order to analyze the decision process for the purchase of air conditioners, customer survey was
conducted in 2 households in Kunnamangalam. The products of our concern, Voltas and Samsung AC
were spotted in households which belonged to the SEC A2 category of the social economic classification.
The product was viewed as a luxury item in the area where the survey was conducted and the households
owning the product were one of the high income households and exhibited great similarity in the
consumption decision making process

SAMSUNG A/C
The household is 7 member household with the decision being taken by the son who is a manager of a
private firm. The household has been using the particular product for the last 1 year.
1.Identification of need: The need for the purchase of the air conditioner was identified
a. Hot climate: The purchase was made during the summer season due to the high temperature.
b. Better comfort: The manager was insistent in the installation of an AC since he was used to it at the
office also.
c. Better cleanliness: The house being on the roadside, keeping the windows was not a good choice as
all the dust was swept into the rooms quickly making it dirty. So, AC was considered as an efficient
alternative.
2.Information search
a. Internet: The customer review of the product was looked up. Further, the websites of the some of the
brands were visited to make the decision about the purchase.
b. Dealer Shop: Enquiries regarding the sale, and the complaints received of the different brands of AC
were made to the salespersons of Kannankandy home appliances shop, a renowned shop in the town.
3.Evaluation of Alternatives
a. The different brands under consideration were LG, Daikin and Samsung. The value for money
parameter was taken as that of important parameter for comparing the 3 options.
b. A 5 star energy rating was also given priority in order to avoid high electricity bills.
c. Designs available was also taken into consideration while choosing the product
d. Compactness of the product was taken since there was a chance for house shifting in the near future.
4.Purchase Process: Samsung was purchased due to the following reasons:
a. Samsung had service center close to the location
b. The compactness of the split AC was taken into consideration
c. TV, Microwave oven, and laptop used in the household were of Samsung brand and did not have any
major complaints till date.
d. The product was available in black and white color which was much more attractive
5.Post purchase evaluation:
a. The product has a slow pace of cooling the room, though no other major problems have occurred so
far.
b. The servicing done by the company is impressive

c. Electricity bills have surged very high during the summer season despite the 5 star rating.

VOLTAS A/C
The household under study is a 4 member family where the head of the family is a NRI and the decision
for the purchase is done by the college going son. The family has been using the product for the last 1.5
year.
1.Identification of need: The need for the purchase of the air conditioner was identified
a. The first floor of the house was too hot especially in the summer season.
b. AC was considered to be one of the necessary items in the future with the rising temperature
2.Information search:
a. Opinion of friends: Highly positive review was obtained about the product from the peer group of the
college going son
b. Advertisements: The advertisements were noticed in order to understand the popularity of the brand
before making the choice.
3.Evaluation of Alternatives:
a. LG, Voltas and Samsung were the choices under consideration
b. Lowest price alternative was preferred.
c. Since the AC was intended for installation in the master bedroom, a higher capacity AC was the
preference
4.Purchase Process
a. Voltas AC was a relatively new launch and had promised some attractive features like provision for
switching of the display light of the AC etc. which was absent in others.
b. The brand had offered heavy discounts during a festive season when the purchase was made.
c. Brand was believed to specialize in AC and hence perceived as a better product.
d. Highly recommended by the ac dealers from where the purchase was made
5.Post purchase evaluation:
a. The product had the complaint of water leakage which was not rectified even after servicing
b. The servicing also was not commendable since there was a long delay after the complaint was made

MANAGERIAL IMPLICATIONS: SAMSUNG

Product category aspects
Multi jet technology for efficient, fast cooling, easy
installation
For efficient sleep and energy saving

Powerful tropicalized rotary compressor at 52

degrees

Full HD bacteria filter collects upto 60%

5 star rating to save on electricity bills
No need of stabilizer with built in inverter

Brand communication
Ads show youngsters enjoying the summer sun and
little kids playing at the beach
It conveys the message of being carefree and be
indifferent to scorching heat outside
It shows that AC can run all day long suiting Indian
requirements
Virus doctor denotes keeping the dust and germs away,
keeping air fresh
smart savings denotes saving in form of servicing and
electricity bills
smart AC captures stabilizer to avoid expenditure

Gaps in communication and perception

According to the interviews conducted, Its perceived as a luxury item, but the ads projects itself
as very economical by showing savings

Though the ads suggests that AC will freshen up the room in minutes, the customers faced a delay
in the performance

Though the ads claim to reduce electricity bills, the consumers faced surging bills in summer
months

Insights WRT consumption behavior

Consumers gave high importance to location of service centre and their quality of service which
has not been highlighted by the company in their services or communicated by means of ads

Misuse of rating mechanism by companies which neither shows the right size of AC nor the
electricity consumption

External influences

Internal Influences

Culture: the product places itself as a necessity.

Since the consumer was used to it in office, he
bought one for home as well

Demographics: the young gets to decide the

brand of AC by doing research

Social status: though portrayed as a necessity, it

is perceived as a luxury item in the locality of
interview
Marketing activities: Samsung markets itself as
the Smart AC which cleans air, reduces bill
&has new technology fast cooling system

Perception: people perceived it as an energy efficient, fast cooling and

stylish product
Learning: customers learnt about the flight jet compressor for fast
cooling and the 6 step design for clean air
Memory: the customer associated past experience with other Samsung
products and extended it to the purchase of this one
Motives: motive of purchasing this AC is cooling during scorching
summer heat and clean air inspite of pollution by maintain low bills
Personality: is Smart AC with fast cooling, low bill, clean air
Emotions: relaxation and happiness
Attitude: consumers who are carefree but make smart choices by
taking care of functional requirements smart AC captures the
inbuilt stabilizer to avoid expenditure

MANAGERIAL IMPLICATIONS: VOLTAS

Product category aspects

Brand communication

AC comes with 1.5 ton capacity

Wall mounted rotary compressor

Anti fungus, anti bacterial filter

Additional features like remote control, LED display,
sleep mode & auto restart

Less noise due to cross flow vane

Hydrophilic Aluminium fin and self grooved copper

tubes

The brand revolves around leaving an impression even from an

unexpected person
Aimed at middle class families depicting easily affordable
Focusses on revamping the perception of AC as a necessity with
affordable electricity bills instead of something flamboyant
Suitable for people who have to face sticky heat, dry heat &
normal heat
Highlights on the tag India ka AC focusing on scorching heat
and tight electricity bills. Portrays itself as All weather AC

Gaps in communication and perception

Even though the brand clearly shows an AC for all weather, people still perceive it as only for rising
temperatures and not to control humidity or dryness
Voltas terms itself as economical in the overall process of purchase and use, since it claims to have better
energy ratings. But, the consumer focused only the low cost feature and didnt include the incentive due
to electricity bills
External & internal influences
External influences

Internal Influences

Culture: the product places itself as a necessity and a

problem solver no matter what the size and location
be

Demographics: the young gets to decide on AC brand

by doing research by either talking or going through
feedback on the net
Social status: showcases itself as an affordable and a
necessity at minimum cost
Marketing activities: Voltas markets itself as India ka
AC suitable for all types of heat with minimum
electricity bills

Perception: people perceived it as an energy efficient, fast cooling

and stylish product
Learning: customers learnt about the flight jet compressor for fast
cooling and the 6 step design for clean air
Memory: the customer associated past experience with other
Samsung products and extended it to the purchase of this one
Motives: motive of purchasing this AC is cooling during scorching
summer heat and clean air inspite of pollution by maintain low
bills
Personality: is Smart AC with fast cooling, low bill, clean air
Emotions: relaxation and happiness
Attitude: consumers who are carefree but make smart choices by
taking care of functional requirements smart AC captures the
inbuilt stabilizer to avoid expenditure

Insights WRT consumption behavior

Consumers gave high importance to location of service centre and their quality of service which has
not been highlighted by the company in their services or communicated by means of ads

Misuse of rating mechanism by companies which neither shows the right size of AC nor the
electricity consumption

References

[1]. AIACRA. (n.d.). Retrieved from http://www.aiacra.com/growth.html

[2]. Jain, A., Garg, A., & Singal, S. (2012). Impact of Energy Labeling on Consumer Buying Behavior of
Air Conditioner. Available at SSRN 2142999.
[3]. India to Become a Competitive Hot Spot in Air Conditioners- Euromonitor

APPENDIX : SAMSUNG MAGAZINE ADS:

SAMSUNG NEWSPAPER ADS:

VOLTAS MAGAZINE ADS

VOLTAS NEWSPAPER ADS