“A STUDY

ON

BRAND VISIBILITY”

A SUMMER PROJECT STUDY SUBMITTED IN PARTIAL

FULFILLMENT FOR THE REQUIREMENT OF THE TWO YEAR
POST GRADUATE DIPLOMA IN MANAGEMENT (2017-19)

BY

VINAY KUMAR YADAV

075/2017

LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT, DELHI

JUNE, 2018

1
Certificate

2
 Acknowledgement

I would like to gratefully acknowledge the contribution of all the people who took an active
part and provided valuable support to me during the course of this project. To begin with, I
would like to offer my sincere thanks to Mr. Vijay Mahadevan (Team Head BTL
Operations) & Mr. Manish Sehrawat (Senior Manager- Trade Marketing) for providing
me the opportunity to do my summer training at Panasonic India Pvt. Ltd. Without their
guidance, support, and valuable suggestions during the research, the project would not have
been accomplished.

My heartfelt gratitude also goes to the entire Employee Health and Benefits Team at Panasonic
India for their co-operation and willingness to answer all my queries, which made the project
possible.

It was a great privilege for me to work under the expert guidance of Dr. Sandhya Makkar,
LBSIM, New Delhi, who was always there to monitor my progress in the project and provide
me with ample suggestions and guidance to successfully complete this project.

Regards

Vinay Kumar Yadav

PGDM (General)

LBSIM, New Delhi

3
Table of Contents

1. Objective and Methodology

2. Scope of work
3. About Industry & Company
4. Literature Review
5. Data Collection
6. Field Work & Data Analysis
7. Perceptual Mapping
8. Conclusions
9. 5 Best Practices of the Company
10. Recommendations
11. References
12. Annexure

4
Objectives:

Objective 1: To identify & study the factors that affect the visibility of a
Brand

 Brand Visibility
 Product Visibility
 Above the Line Strategies
 Below the Line Strategies

Objective 2: Channel Partner Insights

 Top 3 expectations of Channel Partners

 Dealer Perceptual Map with respect to AC, TV & Refrigerator Brands
 Frequency of Changing/ Maintaining POSM by various Brands
 Suggestions on How Panasonic can improve their visibility

Objective 3: To do competitive analysis of the factors which affect the

visibility

 BTL Comparison
o W.r.to Other Industry
o W.r.to Consumer Durable Industry
 Comparison of USP communicated through POSM
 ‘ON-PRODUCT’ POSM expenditure with respect to Competitors
 Maintenance of POSM

5
Methodology

A combination of primary and secondary research techniques was used. As the first step of
Primary research, various market visits were conducted to understand ‘What are the possible
factors that makes a brand more visible than other brands’, after that various store
visits(Organized stores/ Local Chain Stores/ Sub-Dealers) were conducted to get insight
specifically about visibility with respect to Consumer Durables brands. After that 43 channel
partners were interviewed located in the vicinity. The source was offline only, i.e.- Direct and
Telephonic. Offline responses were collected from various Local Chain Store and Sub-Dealers
(multi-brand outlets) situated in Delhi/ NCR. These responses were then collated and analyzed.

To understand the market scenario, and to learn about competition product, Main focus was
on Consumer Durables.

For secondary research, Consumer Durables of the top brands in India and abroad were
studied. These products are available on various websites as well as magazines 7 newspapers.
Apart from this, ISHRAE’s report on various products was also used to research and study
the situation of consumer durables in India. Also a qualitative analysis of various reports,
Articles & news letter were carried out to draw out inferences & prepare deliverables as per
requirement of project.

6
Scope of work:

 Market Visits (as a mystery buyer)

 SOP (Standard Operating Procedures) for allocation
 GTM (Go to Market) Study
 VMD Guidelines (competitors)
 Study of Visual Merchandising for Other Industry (Fashion & Apparel, Automobile,
etc.)
 Questionnaire
 Conclusion
 Suggestions
 Feedback

7
About Industry:

Consumer electronics or home electronics are electronic (analog or digital) equipment’s

which are used for everyday use, typically in private homes. Consumer electronics include
devices used for entertainment (Video games, DVD players, , remote control cars, flat
screen TVs etc.), communications (telephones, E-mail-capable laptops, cell phones etc.),
and home-office activities (e.g. Paper shredders, Desktop computers, printers etc.). In British
English, they are often called brown goods by sellers and producers, to distinguish them from
"white goods" which are meant for housekeeping tasks, such as washing machine
and refrigerators. In the 2010s, this distinction is not always present in large box consumer
electronics stores, such as Best Buy, which sell both entertainment, communication, and home
office devices and kitchen appliances such as refrigerators.

Radio broadcasting in the early 20th century brought the first major consumer product, the
broadcast receiver. Later products included Televisions, telephones, and calculators, then
audio and video recorders and players, game consoles, personal computers and MP3 players.
In the 2010s, consumer electronics stores often sell GPS, automotive electronics (car
stereos), video game consoles, electronic musical instruments (e.g., synthesizer keyboards),
karaoke machines, digital cameras, and video players (VCRs in the 1980s and 1990s,
followed by DVD players and Blu-ray disc players). Stores also sell digital cameras,
camcorders, cell phones, and smartphones. As of 2016, some of the newer products sold

8
include virtual reality head-mounted display goggles, smart home devices that connect home
devices to the Internet (such as smartphone-controllable thermostats and lights) and wearable
technology such as Fitbit digital exercise watches.

In the 2010s, most consumer electronics have become based on digital technologies, and have
largely merged with the computer industry in what is increasingly referred to as the
consumerization of information technology. Some consumer electronics stores, such as
Best Buy, have also begun selling office and baby furniture. Consumer electronics stores may
be "bricks and mortar" physical retail stores, online stores, where the consumer chooses items
on a website and pays online (e.g., Amazon). or a combination of both models (e.g., Best Buy
has both bricks and mortar stores and an e-commerce website for ordering its products). The
CEA (Consumer Electronics Association) estimated the value of 2015 consumer electronics
sales at US$220 billion.

9
About Company:

Panasonic has been recently designated India as regional hub to drive growth and build
deeper inroads into the fast emerging Asiatic, Middle Eastern and Western economies.
Starting from India, the company wants to create a knowhow to address consumers who are
based out of India and then take the knowledge to emerging markets. India is the sixth
strategic region which will take care of SAARC nations, Middle East Asia and Africa.
Panasonic will aggressively and strategically invest in market research and product
innovation and will recruit/bring the best of global talent using its in-house open application
system and work in areas like energy, water, remote access and food.

Panasonic makes available in India its wide range of consumer electronics, home appliances
like Microwave Ovens, DVD players, Car Audio Systems, Home Theatre Systems,
Smartphones, Cameras, Camcorders, , Air Conditioners, High Definition Videoconferencing,
Refrigerators, LCD & Plasma TVs, Automatic Cookers, Washing Machines, Vacuum
Cleaners and a wide range of system products including communication ones like Mobile
Phones, Professional Audio Video products like Broadcast Cameras, Projectors and Displays,
Business Solutions including Printers, Whiteboards and Security Solutions. Panasonic has
aggressively focuses on market research, product innovation and talent hiring in India for
work in areas like energy, water, remote access and food. The company currently has a
workforce of about 12,500 in India.

10
Head Office Address 12th Floor, Ambience Tower, Ambience Island, NH-8,
Gurgaon -122002, Haryana

Head Office Address Tel +91-124-4871300

+91-124-4683800

Head Office Address Fax +91-124-4751333

Registered Address 12th Floor, Ambience Tower, Ambience Island, NH-8,

Gurgaon -122002, Haryana

Registered Address Tel +91-44-61089300

Registered Address Fax +91-44-61089899

President Manish Sharma

Date of Establishment Panasonic India Pvt. Ltd. (Consumer Sales Division)

was established on 14th July 2006.
Group Companies:

Panasonic Appliances (PAPIN): Established in 1988 for manufacturing, importing, marketing

and sales of kitchen appliances and small domestic appliances. PAPIN is headquartered in
Chennai, Tamil Nadu.
 Panasonic AVC India [PAVCI]: Established in 1996, for manufacturing of CRT
Televisions and LCDs. PAVCI is based in Noida, Uttar Pradesh
 Panasonic Energy India [PECIN]: Established in 1972, for manufacturing and selling of
dry cell batteries. PECIN is based in Baroda, Gujarat.
 Panasonic Carbon India [PCIN]: Established in 1982, for manufacturing and selling of
carbon rods. PCIN is based in Chennai, Tamil Nadu.
 Anchor Electricals: Headquartered in Mumbai, Anchor electrical Private Limited started
nearly five decades ago and became a subsidiary of Panasonic Electric Works (now
Panasonic Corporation) in 2007. It is one of the highest largest domestic manufacturers of
electrical construction materials with 4 manufacturing locations and boasts of 55 domestic
bases and has employee strength of 10,004. Its sales and operating profit are steadily
growing and it ended the last financial year with net sales of Rupees 13.5 billion and a

11
 stated capital of Rupees 4.8 Billion. It has a dominant market share in wiring devices and
it is constantly expanding its product range and growing market share in Circuit Breakers,
Lighting and Luminaries, Fans and Wires/Cables. Anchor aims to double this in the next
three years from the existing and some new product categories.
 Firepro Systems Pvt. Ltd: Incorporated in 1992, Firepro Systems has been at the forefront
of integrated solutions for fire protection, security and building management systems
Building Management Systems, Access Control, Video Surveillance, Intrusion Alarm,
Fire Suppression Fire Alarm and Detection. It is present in 14 locations across India.

Divisional Sales & Factories:

Divisional Sales under Panasonic India

 Panasonic Marketing India (PMIN): Vacuum cleaner, Water Purifier), HA (AC, WM, Ref.,
MWO, Beauty Care, CE (TV, Audio, Home Theatre) & Digital Imaging (Camera & Movie)
 System Sales Division (SSD): Toughbook projectors, telephones, PBX/KTS, fax
machines, security, makes available display and networking products.
 Panasonic Industrial Devices Sales India(INDD) or making available compressors, motors
for air conditioners and refrigerators, various batteries and many other industrial
applications, components for printed circuit boards, flat and plasma panel for flat TV and
plasma TV, heat exchanger for BTS relating applications, equipment’s for manufacturing
industry.
 Panasonic Automotive Systems India(PASI): Specializes in sales and support of in-car
equipment and systems that provide environmental protection, power management
solutions comfort, such as multimedia equipment and safety.

12
Trade marketing

Trade marketing is a field of marketing that relates to increase in the demand of wholesaler,
retailer, or distributor level rather than at the consumer level. However, there is a need to
continue with Brand Management strategies to sustain the need at the consumer end. A
shopper, who may be the consumer him/herself, is the one who identifies and purchases a
product from a retailer. To ensure that a retailer promotes a company's product against
competitors', that company must market its product to the retailers as well. Trade marketing
might also include offering various tangible/intangible benefits to retailers. The alignment of
sales and marketing discipline to profitability can be another explanation for trade marketing.

Trade marketing is the basic idea of marketing your products through the value chain and at
the point of sale i.e. the store. Consider it the idea of creating a demand for your products across
the channel and before it reaches the consumer. This traditionally exists in a brick and mortar
environment and can be argued to be one of the oldest forms of marketing

Trade marketing divided into 2:

1. ATL Activities
2. BTL Activities

13
ATL Activities: Above the Line (ATL) advertising is where mass media is used to promote
brands and reach out to the target consumers. These include conventional media, television and
radio advertising, print as well as internet. This is communication that is targeted to a wider
spread of audience and is not specific to individual consumers. ATL advertising tries to reach
out to the mass as consumer audience.

BTL Activities: Below the line (BTL) advertising is more one to one, and involves the
distribution of pamphlets, handbills, stickers, promotions, brochures placed at point of sale, on
the roads through banners and placards. It could also involve product demos and samplings at
busy places like malls and market places or residential complexes. For certain markets, like
rural markets where the reach of mass media like print or television is limited, BTL marketing
with direct consumer outreach programme do make the most sense.

14
Literature Review:

Research Paper 1 : Visual Merchandising Displays’ Effect On Consumers

Visual merchandising displays aid in the final stages of decision-making regarding the
purchasing of a specific product. However, there are other factors, like price, that also affect
the final decision. When visual merchandising displays are well designed and logical, the
participants tended to be attracted to the section of products that were emphasised in the
display. This illustrates that visual merchandising displays influence buying behaviour.
Secondly it was observed that good visual merchandising content will have a positive
influence, while bad visual merchandising content will have negative influence. Lastly the
visual merchandising displays are useful in promoting certain products, as it was seen that
people will notice their personal preferences whether the visual merchandising is there or not.
People will notice it subconsciously though, which include colours, textures, styles, décor,
sizes and others.

Research Paper 2 : VISUAL MERCHANDISING AND PURCHASING BEHAVIOR

FOR HIGH INVOLVEMENT PRODUCTS: A STUDY OF ELECTRONICS
OUTLETS

Composed retail contributes in excess of 8 % to add up to Indian retail industry, which is

fourth biggest after apparel, food & grocery and mobile, & telecom. Out of this consumer
durable items represents more than 8 %. Organized market is developing with a few
individual parts adding to its development. Electronics is a product category, which is a high
involvement product (HIP). Moreover, separation as far as item in this class is most
troublesome errand. Consequently, it ends up critical for the retailers to separate their
contributions with help of some imaginative show method. As far as consumer electronics,
the window show of stores can be made intelligent with the goal that a client encounters it
and draws in them inside the store. The factors that are not influencing buy can likewise be
made solid. Merchandise display, floor display, store layout and organization, shelf display
and wall mount display ought to be with the end goal that clients can undoubtedly find and
see the item and check its capacities. Gadgets item class buy more relies upon what is the

15
client's experience with respect to the items. Subsequently, the items ought to be orchestrated
such that the show of TVs, LED, LCD, Music framework, and so forth should give
extraordinary hedonic delight and experience, which prompts buy instantly.
Signages/illustrations ought to be clear with all points of interest which brings about
negligible obstruction of businessperson in buy choice. Additionally, the store condition
ought to be agreeable and alleviating with the goal that client remains in the store for longer
time and investigates more things, which again produce sales.

Research Paper 3 : Factors Affecting the Brand Recognition : An Exploratory Study

This research includes three factors which affect Brand Recognition, i.e. Brand Perception,
Brand Innovation and Product Quality. It was concluded that the strongest correlation was
between Brand Recognition and Brand Perception. This relation can be enhanced through
appropriate advertisement. Then comes Brand Innovation and then Product Quality. This
confirmed the famous law of nature "The survival of the fittest". A product which does not
align itself with latest needs and trends of the users is likely to be wiped out. As far as this
research is concerned respondents gave comparatively less weighted to quality. This
manifestation of the fact that the entire four products selected are of equally good quality and
therefore, quality is not a strong factor in brand recognition.

Research Paper 4 : Visual Merchandising : Window Display

“A successful window display includes an imaginative color scheme that will complement
the product, help enforce a brand or simply be used to support a window theme. Either way,
the visual merchandiser never underestimates the power of color, the aid the creativity.”

According to them, there are six factors that can make the Window Display attractive and
hence can increase the visibility of the Brand: Color, Graphics, Technology (lighting),
Window Display as a story teller, Seasonal Displays, Fashion Trends in Window Display.

There is no doubt that color is the most powerful tool in window design, it creates the
background and a window professionally designed transmits the right energy to the customer.

16
 Table 1 : Emotional Response to Color

(Source: http://www.ricksegel.com/blog/bid/78878/Recommended-Article-Visual-
MerchandisingTips-and-Techniques-of-Visual-Merchandising)

Article 1 : Visual Merchandising : An Integrative Review (Article in Indian Journal of

Applied Research)

Dr. Vijay Singh in his article stated that the following factors of Visual Merchandising leads
to impulsive buying and hence the visibility: Retail Branding & Store Image, Promotional
Management, Physical environment and store design, Sensory retailing, Interior Elements
and many more.

Article 2 : New Dimension in Brand Visibility

According to the article, ‘People remember 10 percent of what they hear, 20 percent of what
they read, and 80 percent of what they see and do’. Not an adage, but a fact. Multitasking
dimensional integrate data, grab attention, encourage repeat use and drive action when every
dollar counts.

17
Data Collection:

Objective 1: To identify & study the factors that affect the visibility of
Panasonic

 Product Visibility
 Brand Visibility
 ATL
 BTL

Product Visibility

Product visibility is a function of persistence, precision and repetition. Whether you're

planning a product launch, rollout or reintroduction, the message needs to be heard repeatedly
to rise above the background noise of daily business. The combination of advertising and
independent analyst content gives a well-balanced perspective on your products features and
benefits.

 By actually seeing the products being used in the Market

 Customer centric POSM messages
 Focus on Long-term messages

Brand Visibility

Brand visibility is the single, most powerful message that a consumer can receive, with a
message that says, this product is good and you can trust this brand. This brand visibility,
encourages and motivates the customer to look at the product along with the brand attributes.
Brand managers hire different media agencies with focus on out of home media, television
and broadcast, online marketing and others to increase the visibility of the brand. One should
focus on the subconscious mind of the customers while designing advertising messages.

Some factors which affect Brand Visibility the most are:-

 Through repeated advertising: by doing so consumer becomes familiar with the

message of the brand and get a personal feel of the brand.

18
  Proper Marketing Mix
 Word of Mouth
 Be adaptable

Brand Visibility and Product Visibility can be further classified into three component. These
components was originally used to separate marketing activities which had mass penetration
(above the line) to those which had specific penetration (below the line). But then, because of
the increased competition and development in technology, emerged through the line
marketing activities which blurs the line and include the use of both ATL & BTL advertising
activities.:

1. Above the Line methods: It (often referred as Above the Line promotion/ Above the
Line marketing/ ATL marketing/ ATL advertising) consists of advertising activities
that are largely non-targeted and have a wide reach. ATL communication is done to
build the brand and inform the customers about the product. Conversions are given
less importance in above the line advertising. In a layman’s language it includes mass
marketing strategies which are largely untargeted and are focused on building the
brand.
ATL includes: -
 Television
 Radio
 Print Advertisements (Newspaper/magazine)
Advantages: -
 Wider Reach
 Better Connect with audience
 Brand Building

2. Below the Line methods: It (often referred as Below the Line promotion/ Below the
Line marketing / BTL marketing / BTL advertising) consists of very specific,
memorable and direct advertising activities focused on targeted groups of
consumers. Often known as direct marketing strategies, below the line strategies
focus more on conversions than on building the brand. In a layman’s language BTL
marketing include direct marketing strategies directed to specific target groups and
focused on conversions rather than building the brand.

19
 BTL includes: -
 Outdoor Advertising
o Flags
o Banners
o Balloons
o Wraps
o Billboards
 In Store Marketing
 Direct Mail advertising
 Sponsorship
 Brand Activation
 Gift Offers
 Coupons/ Rebates and many more.
Advantages:
 Personalised offers/messages (Tailor-Made)
 Better ROI
 Easy Control
 Extremely Targeted
3. Through the Line: It (often referred as Through the Line promotion/ Through the
Line marketing / TTL marketing / TTL advertising) involves the use of both ATL &
BTL marketing strategies. The recent consumer trend in the market requires
integration of both ATL & BTL strategies for better results. In a layman’s language in
TTL marketing, campaigns are developed with the vision of brand building as well as
conversions.

TTL includes: -

 Digital Marketing
 360° Marketing

20
Visual Merchandising: The process of designing retail floor plans and attractive in-store
displays in order to catch the attention of buyers and boost sales is called visual
merchandising. Several marketers advocate the theory of moments of truth. According to
them, there are two moments of truth for a consumer. The First Moment of Truth (FMOT) is
the one where a consumer sees a product and buys it. The Second Moment of Truth (SMOT)
comes when a consumer actually uses the product. Visual Merchandising aims at capturing
the FMOT so as to persuade a buyer into buying a particular product. In low involvement
products like confectionaries, placement of products in a store and their visibility plays a
huge part in their sales.

Some elements of Visual Merchandising:

1. Colour is King
2. Good Smell
3. Proper Lightning
4. Theme based music
5. Create a focal point
6. Tell a story
7. Use empty space wisely

21
Field Work & Data Analysis:

Objective 2: Channel Partner Insights in Delhi/NCR region

Definition: A channel partner is a third-party organization or individual that markets and sells
products, services or technologies for a manufacturer or service provider via a partnering
relationship. Channel partners can be Distributors, retailers, vendors, consultants. It’s a B2B
relationship.

The dealer is the first line of contact between the manufacturer and the customer. Often how
good, or how well-trained a dealer is, is the deciding factor between a happy customer and a
whining pain-in-the-back. After the experience with the actual product, it is the experience
with the dealer that becomes the focal talking point when the buyer communicates about the
product. After the advertisements, it is the experience with the dealer that decides positive or
negative word-of-mouth. That is the key factor governing success and failure six months after
the model has been launched in the market, the first six months having been run purely on
euphoria and adrenaline.

Dealers make or break sales. The way a dealer has been trained is a critical factor in deciding
the overall sales performance of any manufacturer. It is not surprising that the largest selling
brands also have some of the happiest customers.

At the same time, it is quite surprising that most multinational manufacturers still struggle at
the dealer front as customers often have horror stories to report about them. Many years of
presence has given them the time to hone their dealer training and inculcate systems and
discipline. However, in many cases the dealers fall short of the customer’s expectations.

22
TOP-3 expectations

After interviewing 43 Channel Partners of Delhi/NCR, TOP-3 expectations are :

1. Profitability or Dealer Margin

Out of 43 responses 41 stated Profitability or Dealer Margin as their top expectation from
the Brand.

Considering the enormous speculations expected to set up a dealership and partnered offices,
it is the producer's obligation to guarantee that its merchants remain gainful. Makers repay
merchants for deals execution, meeting and surpassing deals targets and through incomes
from benefit that the merchant is required to give. As a rule the genuine benefit on offering
the item is chosen by the producer and is a piece of the marketable strategy to guarantee that
the merchants make a sound ROI.

However, the business plan is made with the assumption that every dealer would sell a certain
number of products. This minimum number is what forms the basis of the dealer’s investment
and the OEM’s promise to deliver a certain ROI for the dealer.

2. After Sales Service / Customer Satisfaction

74% of the responses mentioned After Sales Service as their 2nd most important
expectation from the brands.

After sales service refers to various processes which make sure customers are satisfied
with the products and services of the organization. The needs and demands of the
customers must be fulfilled for them to spread a positive word of mouth. In the current
scenario, positive word of mouth plays an important role in promoting brands and
products. After sales service makes sure products and services meet or surpass the
expectations of the customers. After sales service includes various activities to find out
whether the customer is happy with the products or not? After sales service is a crucial
aspect of sales management and must not be ignored.

23
 After sales service plays an important role in customer satisfaction and customer
retention. It generates loyal customers. Customers start believing in the brand and get
associated with the organization for a longer duration. They speak good about the
organization and its products. A satisfied and happy customer brings more individuals
and eventually more revenues for the organization. After sales service plays a pivotal role
in strengthening the bond between the organization and customers.

According to a report by Motilal Oswal, Panasonic needs to increase its service centers so
that it can have a wider reach.

Service centers by company

Micromax
Lloyds Electric
Carrier
LG
Daikin
Hitachi
Blue Star
Voltas
Panasonic

0 50 100 150 200 250 300 350 400 450 500

(Source : Blue Star Report)

3. Timely Supply of Goods

And around 55% said that Timely Supply of Goods is their 3rd most important expectation
from the brands.

Nowadays with rapid increase in technology, demand for consumer durables is also
growing rapidly. It can be seen at the stores that if a person goes to a store to buy an AC
and that specific model is not available at that store, then consumer will automatically go
to another store, which is not good for Dealer as well as for the company, however in
some cases if the dealer has build some trust with the consumer, then the consumer will
choose another brand, which in turn affect the brand image.

24
 Further chances will be high that it will spread bad word of mouth about the company as
well as the dealer or he will just promote other dealer and other company.

4. Others

Apart from these 3 expectations, channel partners mentioned some other expectations
from the brands they are, or they will deal with in the future.

 Commercial Marketing (Aggressive Advertising): After top-3 expectations, channel

partners stated this as there 4th top most expectation. They want that advertising
should be of aggressive nature, be it Above the Line or be it Below the Line. They
said that company should focus on innovation and should target the feelings of end
user, so that people will start connecting the company with their feelings and they
think that it is a part of their life. Also, brands should mainly focus on communicating
there USP while promoting there products.
Like if we take an example of an AC: all air conditioners have cooling feature in
them, all of them will cool instantly these days. But consumers want what extra that
brand has to offer. Like LG’s USP is 100% copper condenser in all of there air
conditioners. USPs of all brand have been discussed below.
 Best Price for customers: It means that the price should be competitive enough that
price savvy customers should automatically go for it.
 Customer Oriented Brand: They want the brand should be customer oriented, which
means that brand should be innovative enough in improving their products with the
changing needs and requirements of the customers.
 Product/ Price/ Quality/ Design
 Discount Schemes: Timely and attractive discount schemes for customers, which
attract the consumers and can lead to impulsive buying at the time of purchase. One of
them said that the schemes should be of type that if a consumer comes with a mindset
of purchasing a product of certain brand, then by seeing the scheme he should jump to
another, which in the end will benefit the consumer as well the brand.
 Tackle online buying: With growing market share of online business, dealers also
stated that company should take care of dealers as well, like they should provide some
extra benefits to them or should start schemes that will benefit the channel partners.

25
Perceptual Mapping

AC Brands Perceptual Map

Air conditioner market is the least penetrated market among AC, REF and TV, which is only
3-4% up to FY17, according to a report by Bluestar.

AC Brands Perceptual Map

High Demand
Voltas
Lloyd
O-General
Daikin
Daikin

High Profitability
Hitachi
Low Profitability

LG
Whirlpool
Blue Star Voltas
Panasonic
O-General
Blue Star
LG Samsung
Lloyd Hitachi
Panasonic
Samsung
Whirlpo… .

Low Demand

(Source : Market Survey)

 Voltas is the market leader in Air Conditioner industry with 22% market share, followed
by LG, Daikin and Blue Star with market share of 16%, 13% and 12% respectively.
 Whereas Panasonic managed to get 7% market share and is targeting to 10% when it
launched its SKY Series and new Nanoe-g Air filter technology.
 Voltas, LG and Lloyd Electric are very channel partner oriented and offer high profit
margins compared to others.
 O-general provides lowest profit margin to the dealers, but its demand remains the same
because of high quality it offers. And also it falls under premium segment so it is a bit
costly than products of other brands.

26
 To sustain in the market one has to follow aggressive marketing techniques, which
includes high profit margin, strong dealer base, outstanding after sales service with 360
degree advertising, which can be seen as in the case of Voltas.

Refrigerator Brands Perceptual Map

The Indian refrigerators market is categorized into two product types' i.e. direct cool
refrigerators and frost-free refrigerators. Frost free refrigerators do not require manual
defrosting and on the contrary in direct cool refrigerators manual defrosting is needed. Direct
cool refrigerators dominate in the Indian market whereas frost free refrigerators are fast
becoming popular among urban households. There is a market penetration of only 33% by
refrigerators, so there is a huge scope in future.

Refrigerator Brands Perceptual Map

High Demand

.
Godrej
LG
LG
Low Profitability

High Profitability

Samsung Haier

Videocon Videocon
Godrej Whirlpool
Whirlpool
Panasonic
Panasonic
Haier Samsung

Low Demand

(Source : Market Survey)

 LG, Samsung, Videocon, Whirlpool, Godrej, Panasonic and Hitachi are the major players
operating in the Indian refrigerator industry.

27
 At present, LG and Samsung are the top two players in the market, where Samsung itself
is having 35% market share, according to a research report.
 Previously Godrej and Videocon were large players in the industry but with the passage
of time and technology, they lost their place due to the entry of many international giants.
 We can see that after LG and Samsung, Videocon and Godrej are having high market
share in the market.
 Samsung dominates the market because of various reasons like there aggressive
marketing techniques which includes providing high profit margin to channel partners &
various discount offers.
 Panasonic is still struggling in Refrigerator market because of its late entry and it does not
go economies of scale, i.e. Panasonic sells a large number of premium refrigerators than
normal ones, which limit the customer base of Panasonic up to a great extent.
 Here also, we can infer that if you are new entrant in the market you have to offer high
profitability to channel partners and have to have strong and wide channel partner
network.

TV Brands Perceptual Map

TV Brands Perceptual Map

High Demand

Samsung
Samsung LG
Low Profitability

High Profitability

Sony
LG Sony Panasonic
lloyd
Panasonic
.

lloyd

Low Demand

(Source : Market Survey)

28
 TV industry was around 12 billion US Dollars, in FY17 and it is expected to be worth of
21.09 billion US Dollars by 2020.
 According to reports, Samsung holds 30% market share in FY17, whereas Sony and
Panasonic hold 10% and 9% market share respectively.
 These five companies dominate Indian Television Market, we can see that Samsung
offers highest Profit margin to channel partners and is having highest demand as of now.
 Whereas demand of LG & Sony is more or less equal according to the channel partners,
but the profitability for channel partners is not same, which makes Sony ahead of LG in
the market.
 Although, LG and Panasonic offer same amount of profit margin but the demand of LG
televisions is greater than that of Panasonic. When we asked the reason behind it channel
partners said it can be because LG is having more number of company owned stores than
Panasonic and aggressive marketing techniques are followed by LG.
 With rising competition companies should try to be in the first quadrant, i.e. high
profitability and high demand.

Frequency of changing/ maintaining POSM by different brands

 LG: Weekly
 Carrier: Weekly
 Sony: Monthly
 Samsung: Monthly
 Panasonic: When New POSM
 Other brands: Monthly

29
Views & Insights

 Visibility & Merchandising

o Sony is the leader in terms of visibility and merchandising. It follows aggressive
advertising strategies. Sony is the only brand which gives incentive to channel
partners on maintaining their POSM, it is around 2-3% of there yearly sales. By
doing so they have channeled there funds of hiring a team which maintains and
keeps a check on Below the Line advertisements. Also there FIS (Friends in
Store) are trained about POSM and How to effectively maintain them.
o Followed by Samsung & LG. They have started their own ‘special zones’ areas
inside the store to attract the customers. And Samsung is also providing Glow
Sign Boards to each and every channel partner. Samsung has maintained an
application that keeps a check on every BTL activity and anyone of the
department can keep a check of the activity done by field boys. Also Samsung
spends largest amount on its advertisement and is very aggressive in doing do. It
also has largest and most stable dealer network and hence deepest penetration in
the Indian market which automatically increases there sales.
o Panasonic is gaining its pace slowly. When we talk about 3 P’s of Panasonic,
product and price are very competitive and doing good in the market. But it is
lacking with its promotion strategies. Like: in case of air conditioners, Samsung
and LG have started there seasonal offers in march and early April only, whereas
Panasonic’s Summer offer came in late April. This year air conditioner market
has gone down when compared to last year’s sales. People who need air
conditioners started buying in March only, Samsung and LG took lead initially
only by proving offers in the starting only. And also the offer should be unique
and attractive much that consumer automatically asks for it. It should also counter
online offers which is provided by various online platforms, like: amazon,
flipkart, etc. This does not end here. It should also focus on 360 degree
marketing. If you have launched a discount offer but people doesn’t know about
it, then it is of no use. Therefore instead of giving two or three offers, one should
focus on giving one offer that stands out amongst offers of other brands and
should be aggressively communicated.

30
 How Panasonic can increase the visibility as a Brand
o Consumers should be well aware of the product, specially about the USP of the
product even before they come to the store.
o They should focus more on ATL advertisements because they have more reach
than the store specific ones. Like Panasonic is offering best air filter technology,
i.e. Nanoe-g technology in there air conditioners only. But people are not aware
about it. And with rising pollution these days, they have to buy an air conditioner
as well as an air filter which costs around 8-12 thousand rupees. But if you buy
Panasonic’s air conditioner, you can save that cost.
o Also, word of mouth plays an important role in buying consumer durables, so
Panasonic should focus consumer satisfaction, like on excellent after sales service
and posting customer reviews on online/ social media platforms.

31
Objective 3: To do competitive analysis of the factors which affect
the visibility

 BTL Comparison
o W.r.to Other Industry
o W.r.to Consumer Durable Industry
 Comparison of USP communicated through POSM
 Comparison of Seasonal offers by various brands
 ‘ON-PRODUCT’ POSM expenditure with respect to Competitors
 Maintenance of POSM

32
Comparison of USP communicated through POSM

Panasonic:

USP of Panasonic Air conditioners:

Nanoe Technology (Deactivate bacteria up to 99%)

Different features:

 Aerowings

 Catechin Filter

 PM 2.5 Filter

 100% cooper

 Bigger & Powerful outdoor as compared to other brands.

33
 LG:

Life’s Good with LG and its range of products. Begin by transforming your TV viewing
experience and enjoy the thrill of premium TV/Audio/Video, with LG India’s superior TV
viewing technology. Enjoy the next level TV viewing with widest range of Super HD TVs, LED
and OLED TVs , 4K Resolution, and Smart TV.
Now being in touch with your loved ones is easier with LG’s stylish and advanced mobile
phones and accessories ranging from smartphones , tablets, mobile accessories and smart
watches.
Now browse guilt free with powerful operating system to your rescue and shine professionally
with latest computer products powered by Blu-ray technology.

USP of LG Air conditioners:

Dual cool inverter technology.
The base model of LG is also with Inverter Technology
Other Features of LG Air conditioner:

Dual Invertor compressor

10-year warranty on compressor
Ocean Black protection
Mosquito away
Micro dust protection filter
Monsoon comfort

34
Samsung:

Samsung Electronics commenced its operations in India in December 1995 and is today a
leading provider of Consumer Electronics, IT and Telecom products in the Indian market.
Samsung India is the Regional Headquarters for Samsung’s South West Asia operations,
which provides employment to over 8,000 employees with around 6,000 employees being
involved in R&D. In 2010, Samsung India achieved a sales turnover of US$3.5 billion.

35
USP of Samsung Air conditioner:

 Single user mode

 We can convert 1.5ton AC to 1-ton AC in this mode, which ultimately increases
energy efficiency.

Other features:

 68% power saving

 43% Faster cooling
 Replacement warranty
 10-year compressor warranty
 5-year condenser

36
Hitachi:

Hitachi Home & Life Solutions (India) Ltd (HHLI), a subsidiary of Hitachi
Appliance Inc, Japan, is a listed company at BSE & NSE exchanges. Since its
inception HHLI has focused on developing and supplying high-quality products
and technology that contribute to the overall prosperity of the society. HHLI
manufactures various kinds of products, including Room Air-conditioners,
Commercial Air-conditioners, Chillers and into trading of VRF Systems,
Rooftops and Refrigerators.
USP of Hitachi Air conditioners:

Expandable inverter Air conditioner

Other features of Hitachi Air conditioner:
Wave blade design
Soft dry
Filter clean indicator
Wide angle deflector
100% cooper tubes
Stabilizer free operations

37
Offer Comparison:

LG:

38
Happy Hours (Everyday 4pm – 7pm)

• 7.5% cashback on Brand Shops on HDFC and ICICI bank

credit/debit Cards (up to Rs. 3000).

• 5% cashback on other Channels (up to Rs. 2500).

Samsung:

Smart plaza summer fest

• Bumper Lucky Draw

• 5% Additional Cashback on ICICI, HDFC, SBI and Citibank.

• Extended Warranty: 1+1

• 20-20 and 18x0 EMI options

39
Panasonic:

Summer Bonanza offer:

• Offer valid till 21st April, 2018- 30th April, 2018

• 5% cashback on HDFC bank
• Extended Warranty on fixed speed air conditioner
• Upgrade Exchange offer

40
‘ON-PRODUCT’ POSM expenditure with respect to Competitors

POSM stands for “Point of Sale Materials”. These are advertising materials that are
used to communicate product information to the consumers at the point of sale

Types of POSM:

1. Crowner
2. Wobbler
3. Danglers
4. Tent card
5. Table Mat
6. Posters
7. Gumming Tape
8. Standees
9. Face & Side Stickers
10. Leaflet

41
 POSM’s of Different brands of Air conditioner:

Panasonic

 No or 1 Face Sticker

 Crowner on Outdoor Unit

42
 LG

 4 Face and 1 Side Sticker

 Crowner : Dual Cool

 Wobbler : Same Day Installation

43
 Samsung

 3 Face Stickers

 Crowner : Digital Inverter/ Long Lasting Durability

44
 Hitachi

 3 Face Stickers

45
 Voltas

 4 Face Stickers

 Crowner : All Star Inverter AC

46
No. of air conditioners displayed at some stores

No. of Air Conditioners Displayed per Store

Carrier

Voltas

Samsung

O general

Blue Star

Lloyd

Hitachi

LG

Panasonic

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5

(Source: Market Observation)

47
Rate and no. of POSM used ‘ON-PRODUCT’ Air conditioner:

*we have assumed that all stickers are made by one manufacturer and of same material and then determining its value in
currency which will help us in comparing.

* Rates are taken according to Industry Standards by consulting industry experts.

Avg. market expenditure= Rs. 140 per product displayed

It is seen that in term of ‘ON-PRODUCT’ POSM Expenditure LG is spending the most which
is around Rs. 187 per product displayed and least by Hitachi, i.e. Rs. 80 per product displayed,
whereas Panasonic is spending Rs. 115 per product Displayed which is much below than the
average market expenditure.

48
Conclusions:
 LG and Voltas are the largest selling brands for most of the dealers. One of the reasons
for this is the large variety of models available in terms of features and designs and
there 360 degree marketing campaigns. Voltas is providing
 All companies are focusing on energy saving these days, but some brands have come
up with ‘How much money can you save in a year.’, which shows energy efficiency
only but is focusing on the end results.
 Hitachi is present only in the air conditioner industry whereas other brands like
Panasonic, LG, Samsung, etc. manufacture other electronic items (televisions,
refrigerators, etc.) too. So, Hitachi can focus only on Air conditioners in terms of R&D,
whereas it is difficult for other brands to do so, but there marketing campaigns can
increase the sales of other products as well.
 Top 3 expectations are:
o Profitability/ Dealer Margin
o After sales service/ Customer Satisfaction
o Timely supply of goods
 In case of Air conditioners and Televisions Panasonic is offering same amount of
profit margin as that of LG, but still it is having less market share than that of LG.
 Sony is the leader in terms of Visibility and merchandising, followed by Samsung
and LG.
 Panasonic is only focusing on Below the Line marketing strategies, because of the
better ROI. But in case of BTL also it is performing than majority of its competitors.
Like spending less than the industry average POSM expenditure and not having First
Mover advantage when we talk of discount offers. Also what dealers felt was
maintenance of POSM was the main problem in case of BTL.
 Also, only a few of POSM used talk about the USP of the products. Like LG is
highlighting more on its ‘100% copper’ feature and has golden background in all of
its POSMs, whereas Panasonic is not highlighting this feature even though it is
having the same features.
 Online Reviews, Word of mouth play the most important role in influencing the
buying decision of a customer.

49
  Nowadays people also look for what CSR activities is done by the company, like
Lloyd is focusing on donating Rs501 when every customers buys a Lloyd AC and
installing air conditioners at various hospitals.

Managerial Implications:

Main aim of this study was to address the problems faced by Panasonic in this competitive
environment in terms of its visibility. It is done by interviewing employees, various channel
partners and by direct observations. The first major practical contribution of the present
research is that it provides much needed qualitative data when it comes to insights about the
visibility of the brand from most its stakeholders. What must be taken care of when it comes
to BTL and it will allow them to re-design their documents and procedures carefully. Also
when it comes to being ahead in terms of visibility, one should not restrict himself only to
BTL strategies. There should be a mix of ATL and BTL and considering all factors which
affects the visibility. In this sense, although this research falls short of developing a fully
formed diagnostic methods, it clearly signposts the main dimensions of a framework for
reflecting on the visibility of a brand.

5 Best Practices of the Company:

 Organizational Culture
 Rewards & Recognitions
 Creating a caring and inspiring workplace
 Access to best facilities: like Gym, Snooker and Table Tennis
 Team Lunch every week

50
Recommendations:

 Panasonic should start by focusing on Top-3 factors which are indicated by channel
partners. Along with it, they should increase their counter penetration all over India.
Having aggressive and good trade partners is a necessity in this competitive world.
 Panasonic should focus on building strong relationships with its customers by
improving their after sales service (like: regular checkup call, low response time and
they should come up with something innovative like Voltas has come up with 5-
years all round service) and on building strong relationships with its customers by
coming up with customer engagement program (like: royalty programs, referral
discounts- discount on the service of product who refers and monetary discount who
buys the new product), so that customers feel satisfied on their purchase and also
recommend it to others.
 With growing market and increasing competition Panasonic should focus more on
360-degree marketing, i.e. ATL and BTL going hand in hand, along with social
media.
 When it comes to ATL, Panasonic should target on the end result that the product
offers and what extra it gives. Like: all air conditioners have efficient cooling
systems, but people buy those which provide some extra with respect to competitors,
air filtration technology in case of Panasonic which saves increase there life because
of less pollution and saves cost of air filter also.
 When it comes to BTL, first of all USP communication must be the main motive,
instead to communicating generic messages. After that some serious steps need to be
taken towards maintenance of POSMs. They can have some incentive plans for FIS
(Friends in Store) if they properly maintain POSMs at their respective store. This
will save the cost of hiring people specially for maintenance.

 Proper VMD guideline should be made with respect to different POSMs used by
Panasonic and every FIS should be taught about the importance of visual
merchandising, like- placing products and various POSMs at shoulder level and on
the right side at the entrance. It will benefit both- company as well as FIS.

51
 Also, company can increase the visibility by sponsoring various events, like: air
pollution campaigns in which they can distribute masks when the pollution is very
high, which will promote there air filtration technology as well, sponsoring cricket
teams is very costly these days, but they can sponsor Football or Kabaddi teams,
which is gaining importance these days. Some low cost advertising includes Cinema
advertising: over 27,000 movie screens run advertisements and it is handled by local
advertisers which is comparatively cheap.

52
References:

1. https://www.motilaloswal.com/site/rreports/HTML/636288151341015916/index.htm
2. https://www.prs-invivo.com/knowledge/3-principles-effective-posm/#knowledge
3. https://www.prs-invivo.com/wp-content/uploads/2017/03/Will-Amazon-Kill-Impulse-
Shopping.pdf
4. http://www.ergostore.pl/can-pos-materials-increase-sales-in-your-store/?lang=en
5. Research Project on Consumer Behaviour towards Electronic Durables(LOTUS) :
https://www.scribd.com/doc/12653654/Research-Project-on-Consumer-Behaviour-
towards-Electronic-Durables-LOTUS
6. Optimization of the promotion mix in the healthcare industry:
https://www.emeraldinsight.com/doi/pdfplus/10.1108/IJPHM-03-2013-0008
7. Achieving high satisfaction in supplier‐dealer working relationships:
https://www.emeraldinsight.com/doi/full/10.1108/13598540310484627\
8. Supplier involvement and dealer satisfaction: implications for enhancing channel
relationships:
https://www.emeraldinsight.com/doi/abs/10.1108/08858629510147033?journalCode=
jbim
9. An examination of the relationship between service quality, customer satisfaction, and
store loyalty: https://www.emeraldinsight.com/doi/full/10.1108/09590550010315223
10. How to achieve brand visibility: "A great design isn't great if no one sees it" :
http://web.a.ebscohost.com/ehost/detail/detail?vid=0&sid=0ce1f4b0-db7c-4322-b212-
b9b47c6b149d%40sessionmgr4007&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#
AN=110414535&db=bth
11. New dimensions in brand visibility :
http://web.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=0&sid=0f802f67-533f-
4746-bb39-f74b1ee52920%40sessionmgr4010

53
Annexure : Questionnaire

Dealer Satisfaction Survey S.No-_______

1. As a dealer please state your TOP-3 expectations from the brands you are associated
with.
a. ___________________________________________
b. ___________________________________________
c. ___________________________________________
2. Views and insights: -
a. Visibility & Merchandising
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___
b. Marketing Support to increase demand (e.g.: consumer/influencer contact
program/schemes)
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___
c. Attractiveness & relevance of trade incentive/schemes etc.
__________________________________________________________________

54
 __________________________________________________________________
__________________________________________________________________
___
d. Frequency of Trade Incentives.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___
e. Regular & pro-active communication of product launches/ re-launches/ features/
attributes/ benefits etc.
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
___
3. Which brand gives you maximum satisfaction? And why?
________________________________________________________________________
________________________________________________________________________
4. Frequency of changing/maintaining POSM by different brands.
________________________________________________________________________
________________________________________________________________________

Name of the store:

Address of the store:

5. Why don’t do you deal in Panasonic products?

___________________________________________________________________________
___________________________________________________________________________

Other Comments: -

55