Study on washingmachine

 

 

INTRODUCTION

The topic of our project is to study the washing machine industry. Here we have to gather information about different manufacturers of washing machine and which company covers more market share.

Ø  History of Washing Machines

       Ancient peoples cleaned their clothes by pounding them on rocks or rubbing them with abrasive sands; and washing the dirt away in local streams. Evidence of ancient washing soap was found at Sapo Hill in Rome, where the ashes containing the fat of sacrificial animals was used as soap.

         The earliest washing "machine" was the scrub board invented in 1797. In 1858, Hamilton Smith patented the rotary washing machine.

         In 1874, William Blackstone of Indiana built a birthday present for his wife. It was a machine which removed and washed away dirt from clothes. The first washing machines designed for convenient use in the home.

         The Thor was the first electric-powered washing machine. Introduced in 1908 by the Hurley Machine Company of Chicago, Illinois, the Thor washing machine was invented Alva J. Fisher. The Thor was a drum type washing machine with a galvanized tub and an electric motor. The Whirlpool Corporation started in 1911 as the Upton Machine Co., founded in St. Joseph, Michigan, to produce electric motor-driven wringer washers. In 1949, the Schulthess Group backed the invention of punched card control for washing machines. In 1951, production of Europe's first automatic washing machines started. In 1978, the first microchip-controlled automatic washing machines were produced.

Ø  Features of washing machine

1)    Load Type

       There are two types of washing machines, top-loading and front-loading. Top-loading washers are the conventional type washing machines where the tub is filled with water, and an agitator is used to clean the clothes. These generally work very well, and are great for their value. Front-loading washing machines, though a little pricier, perform better. Front loaders do not have agitators, but instead use tumbling as a method of cleaning clothes. Because an agitator is not used, front-loaders are gentler on fabrics and use less water.

2)    Washing Method

       Generally most front load machines will have a drum, where as many top load machines use activator. Drum machines will tend to use less water per wash as the tub will not need to be full in order to wash.

3)    Control Features

       Washing machine controls are becoming more sophisticated with the introduction of digital displays and one-touch selection. These controls help you clearly program or preset your washing needs. Simpler machines will have dial and/or push-button controls.

 

PROJECT PROFILE

1.    Name of project: -

      Study and analyze washing industry.

2.    Project Definition: - 

      The project helps to study which all brands of washing machine are available in India and what are the factors which affect the demand of particular brand in our country.  

3.    Project member & Enrollment No: - 

a)    Vibha Hinduja            [08OSB058]

b)    Sandhya Choudhary   [08OSB046]

c)    Bhoomi Suthar           [08OSB007]

d)    Astha Patel                [08OSB006]

e)    Dipika Patel               [08OSB013]

f)     Umesh Yadav            [08OSB056]

 

4.    Requirements for project: -

            Data related to project is collected from secondary data available from internet. We have also visited various showrooms of washing machine and collected data from several employees working there. We even gathered data from pamphlets which we collected from showrooms.

5.    Project Guide: -

      Respected mam Mrs. Pinky Christian.

 

SIGNIFICANCE OF PROJECT

 

1.            Project helped us to study washing machine industry.

2.            Project gave us the opportunity to visit various showrooms of washing machine.

3.            It was a good exposure for us to learn about various brands of washing machine sold in our country. 

4.            Project even helped us to relate the theoretical concept with the practical ones like Regression and ordinal scale.

5.            We even got chance to meet different employees of the showroom and interview them.

6.            Through this project we were able to enhance our knowledge on various business research methods like Regression and ordinal scaling used today for analysis of business.

 

NEED OF PRESENT STUDY

1)            The concept of latent demand is rather subtle. The term latent typically refers to something that is dormant, not observable, or not yet realized.

2)            Demand is the notion of an economic quantity that a target population or market requires under different assumptions of price, quality, and distribution, among other factors.

3)            The latent demand for washing machines and washer-dryers in India is not actual or historic sales.

4)            Nor is latent demand future sales. In fact, latent demand can be either lower or higher than actual sales if a market is inefficient (i.e., not representative of relatively competitive levels). Inefficiencies arise from a number of factors.

5)            Thus analyzing the factors which affect the sales of particular item is very important today.

6)            Thus if we clearly know about the factors, designing strategies for increasing sales become easier.

7)            Because of large competition today, good planning to increase the demand is necessary.

COMPANY PROFILE

Here is the list of the companies selling washing machine in the India and it is as follows:

1.        Electrolux:-

·         It includes 7 products in washing machine.

·         They are Electrolux-Fabriguard Turbo to Electrolux-Ultra care.

·         MRP Rs. 6,990(min) to Rs. 14,490(max).

·         Washing capacity ranges from 5 Kg to 7 Kg.

2.        Godrej:-

·         It includes 26 products in washing machine.

·         They are Godrej-GDS 400 to Godrej-GFT 700.

·         MRP Rs. 4,820(min) to Rs. 19,490(max).

·         Washing capacity ranges from 6 Kg to 7.5 Kg.

3.        Haier:-

·         It includes 13 products in washing machine.

·         They are Haier-XPB60-235 to Haier-XQ5860JN.

·         MRP Rs. 6,990(min) to Rs. 34,990(max).

4.        Hitachi:-

·         It includes 3 products in washing machine.

·         They are Hitachi-SF-70FJ to Hitachi-SF-95FJ.

·         MRP Rs. 22,500(min) to Rs. 29,500(max).

·         Washing capacity ranges from 8 Kg to 12 Kg

5.        IFB:-

·         It includes 20 products in washing machine.

·         They are IFB-Diva (cold) to IFB-Digital 7 kg.

·         MRP Rs. 11,999(min) to Rs. 30,900(max) with consumer price index Rs. 11,700 to Rs. 28,400.

6.        kenstar:-

·         It includes 5 products in washing machine.

·         They are Kenstar-LS 55 to Kenstar-Tumble Top LF 2008E (e-wash).

·         MRP Rs. 6,490(min) to Rs. 19,990(max).

7.        LG:-

·         It includes 39 products in washing machine.

·         They are LG-WP-9220 to LG-WD-1457ERD.

·         MRP Rs. 6,750(min) to Rs. 72,990(max).

·         Washing capacity ranges from 6 kg to 11 kg.

8.        videocon:-

·         It includes 18 products in washing machine.

·         They are Videocon-SA 63RF to Videocon-K 5001FL.

·         MRP Rs. 6,190(min) to Rs. 19,990(max).

9.        whirlpool:-

·         It includes 27 products in washing machine.

·         They are Whirlpool-Superwash SI60, Whirlpool-Superwash E65 to Whirlpool-FSAH801.

·         Consumer price Index Rs. 6,900 to Rs. 18,000

·         MRP Rs. 7,440(min) to Rs. 22,390(max).

·         Washing capacity ranges from 6 Kg to 7 Kg.

10.       ONIDA:-

·         It includes 11 products in washing machine.

·         They are Onida-Liliput to Onida-Tumble 55.

·         MRP Rs. 3,490(min) to Rs. 19,990(max).

11.       PANASONIC:-

·         It includes 5 products in washing machine.

·         They are Panasonic-NA-F70G5LRQ to Panasonic-NA-F120E2HPQ.

·         MRP Rs. 16,790(min) to Rs. 32,990(max).

12.       SAMSUNG:-

·         It includes 33 products in washing machine.

·         They are Samsung-WT8202 to Samsung-WD7652C8.

·         Consumer price Index Rs. 6,990 to Rs. 37,900

·         MRP Rs. 6,190(min) to Rs. 32,900(max).

·         Washing capacity ranges from 5 Kg to 7.5 Kg.

13.       SANYO:-

·         It includes 11 products in washing machine.

·         They are Sanyo-ASW-80SRT, Aanyo-ASW-1150T to Sanyo-ASW-V1100T.

·         MRP Rs. 12,990(min) to Rs. 23,990(max).

 

14.       SHARP:-

·         It includes 2 products in washing machine.

·         They are Sharp-ES-S950F to Sharp-ES-S1000F.

·         MRP Rs. 21,990(min) to Rs. 23,990(max).

 

15.       SIEMEMS:-

·         It includes 3 products in washing machine.

·         They are Siemens-WM A0716 to Siemens-WM-2002XL.

·         MRP Rs. 22,490(min) to Rs. 30,990(max).

 

16.       TOSHIBA:-

·         It includes 7 products in washing machine.

·         They are Toshiba-VH-7201EKC (IU) to Toshiba-AW-D950SKC (WI).

·         MRP Rs. 9,990(min) to Rs. 34,000(max).

·         Washing capacity ranges from 6.5 Kg to 9.5 Kg

 

METHODOLOGY

1)       Product Definition and Data Collection

           Any study of demand requires that some standard be established to define “efficiently served”. Having implemented various alternatives and matched these with market outcomes, we have found that the optimal approach is to assume that certain key indicators are more likely to reflect efficiency than others. These indicators are given greater weight than others in the estimation of demand compared to others for which no known data are available.

 

2)       Filtering and Smoothing

           Based on the aggregate view of washing machines and washer-dryers as defined above, data were then collected for as many geographic locations as possible for that same definition, at the same level of the value chain. This generates a convenience sample of indicators from which comparable figures are available.

 

3)       Filling in Missing Values

          In some cases, data are available on a sporadic basis. In other cases, data may be available for only one year. Assuming that other factors are held constant, the missing years are extrapolated using changes and growth in aggregate national, state or union territory and city-level income.

4)       Varying Parameter, Non-linear Estimation

          Given the data available from the first three steps, the demand is estimated using a “varying-parameter”. Here the effect of income on demand is assumed to be constant unless there is empirical evidence to suggest that this effect varies. Another way of looking at this is to say that demand for washing machines and washer-dryers is more likely to be similar across states or union territories or cities that have similar characteristics in terms of economic development.

 

5)       Fixed-Parameter Linear Estimation

           Nonlinearities are assumed in cases where filtered data exist along the aggregate consumption function. Because India has more than 5,000 cities, there will always be those cities, especially toward the bottom of the consumption function, where non-linear estimation is simply not possible. For these cities, equilibrium demand is assumed to be perfectly parametric and not a function of wealth, but a function of current income.

 

6)       Aggregation and Benchmarking

           Demand figures are estimated for all major cities in India. These are then aggregated to get state or union territory totals. The purpose is to understand the density of demand within a state or union territory and the extent to which a city might be used as a point of distribution within its state or union territory.

 

FACTS & OBSERVATION

Ø  Washing Machine Brands in the world:

AEG
Ariston
Bauknecht
Beko
Bosch
CDA
Creda
Dyson
GE
Hoover
Hotpoint
Indesit Electrolux

 

 

Kenmore
LG
Maytag
Miele 
Philips
Samsung
Servis
Siemens
Smeg
Tecnik
Whirlpool
Zanussi



      Some of the companies in the world who produces washing machines are as follow

 

Ø  Demanded washing machines in the world

       Some of the washing machine companies which are demanded more in the different countries of the world are as follows.

 

Company

 

Country

 

Whirlpool

 

United States

 

Electrolux

 

Sweden

 

GE Appliances

 

United States

 

Matsushita

 

Japan

 

Bosch-Siemens Hausgeräte

 

Germany

 

Merloni/Indesit

 

Italy

 

Maytag

 

United States

 

LG

 

Korea, India

 

Haier

 

China

 

Arçelik

 

Turkey

 

Fagor

 

Spain

 



 

 

Ø  Evaluating growth rate of washing machines in different countries

 

 

Washing machines

 

 

Unit sales,

2004

 

Unit

sales,

2009

 

%

growth

 

US

 

8,274         

 

9,773

18.1

China

 

12,245

 

20,977

 

71.3

 

Brazil

 

1,151

 

1,465

27.3

Japan

 

3,954

 

4,311

9.0

Germany

 

2,550

 

2,866

12.4

India

 

1,662

 

2,705

62.8

UK

 

2,122

 

2,384

12.4

France

 

2,323

 

2,638

13.6

Russia

 

1,725

 

2,308

33.8

Turkey

 

1,536

 

2,143

39.5



 

 

Ø  Reference for purchase

         Naturally, it may be a little overwhelming when you look at a list of all the washing machine manufacturers and need to pick one out, but there are several ways to single out the machine that will be best for your home

1)    Consult friends and relatives: find out what brands they use and see what they have to say about them.  Ask them about maintenance and repairs, local dealers and technical assistance.  Getting their opinions may help you avoid machines that you won't be able to find serviceable parts for in your town. 

2)    Check out the warranties on machines in local stores:  Find out which brands offer longer warranties and what types of damages are covered.

3)    Do not rely solely on advice from sales clerks: Sales clerks typically recommend you buy things that they are trying to get off their hands or that might grant them a larger commission.

4)    Decide exactly what it is you need in a machine before buying one: Once you have decided on the features you want, shop around, and compare prices and brands on machines offering the characteristics you desire. 

Ø  Main players of washing machine in India

·         LG

·         Whirlpool

·         Samsung

·         Videocon

·         Hitachi

·         Electrolux

Ø  Factors affecting the purchase of washing machines

·         Price

·         Brand

·         Features

·         Volume

·         Service

·         Marital status

·         Income levels

Ø  India’s No. 1 choice for washing machines

 

 

CONCEPT RELEVANCE

 

                    Conceptual and practical are much related to each other. We had compared all practical and conceptual concepts. We studied about the following relevant concepts:

 

 

1)        Here we have chosen ordinal measurement scaling to assign ranks to different brands on the basis of more demanded brand.

 

2)        We have learnt theoretically how to use ordinal scaling, but know by applying this scaling technique on several variables in our project helps us to determine the relevance of theoretically concept with the practically.

 

3)        Hence theoretical and practical concepts are more or less same.

 

4)        We have even use factor analysis research method to determine which factors affect more in demand of the washing machines in particular country.

 

5)        In this analysis also practical working is highly relevant to the theoretical concept.

 

Future Opportunities & Potentialities

 

Ø  Rising rate of growth of GDP

 

Ø  Preference for sophisticated brands

 

Ø  Penetration in rural market

 

Ø  Improving lifestyles

 

Ø  Power availability

 

Ø  Easy availability of consumer loans, expansion of hire purchase schemes

 

Ø  Moreover Rural India

   70 % of number of households has a penetration of 0.5 % for washing machines from 2005.

CONCLUSION

 

 

 

           As explained earlier, washing machine industry is getting vast and highly competitive market in India. In earlier years the market of washing machine was not good. But now entrepreneur entering in this field have good scope. However the washing machine industry has vast market from several years in several countries of the world. The prices have been continuously declining and new models have been entering market and replacing old ones every day. The new models entering in the market have several new features to attract customers. We can predict that in the near future the washing machine industry will grow very high. 

 

 

BIBLIOGRAPHY

 

 

 

 

·         http://knowledge2.wharton.com.cn//index.cfm?fa=viewArticle&Articleid=1111.

·         www.google.com

·         www.rediffmail.com

·         Business Research Methods book from ICFAI center for management research.