CARDIFF METROPOLITAN UNIVERCITY

UNIVERSAL BUSINESS SCHOOL

NAME: ANIK GUIN

ROLL NO: CMBA2Y3-1912

Student Id: CST20192040

SUBMITED TO: Prof. Elora Basumatary

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 Contents

Introduction----------------------------------------------------------------------------------------- 3

Company backdrop--------------------------------------------------------------------------------- 3

Daikin India----------------------------------------------------------------------------------------- 3

A huge Success-------------------------------------------------------------------------------------- 3

Marketing a mark------------------------------------------------------------------------------------ 4

The intention of marketing in India------------------------------------------------------------- 4

Strategies implied----------------------------------------------------------------------------------- 4

Marketing mix of Daikin--------------------------------------------------------------------------- 5

Conclusion-------------------------------------------------------------------------------------------- 7

Bibliography------------------------------------------------------------------------------------------ 8

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INTRODUCTION
Going international is a technique shaped by a number of variables and usually extended over
time. Often a government may allow businesses to enter the market for their nation in an attempt to
build their economies.
Company Backdrop
The title on which Daikin Industries Ltd prides itself is 'World's Number 1 Air Conditioning
Firm'. Daikin had a long success story, dating back to Osaka, Japan, in 1924. It has since become the
largest Japanese air-conditioning and refrigeration equipment maker. Daikin operates globally today,
establishing manufacturing bases in 90 countries and selling its products in over 150 countries. Due to
vigorous research and development, Daikin has turned innovative cutting-edge technologies into one of
its best strengths. Daikin is leading the air conditioning industry in these 3 major innovations: heat
pump, inverter, and refrigerant control. Due to the various awards and distinctions, she has received over
the years Daikin has created a strong brand identity. [ CITATION Kok20 \l 1033 ]
Daikin India:
In India, through its "central production and central R&D for local consumption," Daikin has
grown rapidly over the past decade, leaving behind its previously developed competitors. By 2020, the
company plans to extend its manufacturing and distribution networks across the increasingly growing
subcontinent to more than 10,000 locations. "Japanese goods are viewed as excellent, value-for - money,
and Daikin is seen in both residential and commercial segments as a game changer AC brand in India,"
says KJ Jawa, CEO and MD, Daikin India and board member, DIL, Japan. Daikin’s success in India, he
explains, is based on various factors. "We do things straightforward and with energy. Our efforts are
focused on customer needs, as we nurture our brand perception of 'high image, high quality' with
products that are suited to Indian conditions. We have taken the lead in every field since 2009, be it
inverter technology, green refrigerants, VRV, chillers or skill development. "Jawa adds," After two
years of research and development, Daikin India is proud to launch an indigenously designed and
developed split room AC that will cost less than $230, for the growing middle class. [ CITATION New19
\l 1033 ]
A huge success:
With 100-120 sq ft of space nowadays a popular phenomenon across homes and workplaces, this newly
launched Daikin AC is the best choice for this evolving market segment and can meet the common
man’s compact cooling needs. With India's widespread electrification in recent years, this Daikin AC
offers customers an ideal option across all parts. Daikin also sees it as a catalyst for driving up AC
penetration in the remaining unaddressed 93 per cent market. "This Daikin AC would allow the
increasing Indian population to migrate from coolers and older technology with no major effect on
charges for electricity. The true India promise can only be realized with this pocket-friendly BIG-
SMALL AC that draws less than 3.5 ampere of energy, which is less than operating a hair dryer or
microwave at home, "Jawa said. [ CITATION Ked \l 1033 ]
Making a mark:
Making a hallmark of Daikin India's economic growth and leadership in thinking is remarkable, with
one of the biggest plants, training centers and warehouses in Neemrana, Rajasthan. "Our core strategy,"
Jawa says, "is to develop talents, extend our reach and create sustainability through our long-term
dream." Jawa credits the success of Daikin India to "Japanese brains and Indian brawn union." Daikin

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was the first to launch inverter ACs and green refrigerants in the world's second most population market,
with its advanced technology. "We use numerous Japanese educational systems to uplift and boost air
conditioning industry quality, and culture as a whole," Jawa says. "For example, we have founded the
Japan-India Institute of Manufacture's first all-women division. Daikin is an agency that is socially
conscious and India is a good example of how we bring it into action. We do as we say. [ CITATION
Ray20 \l 1033 ]
The Neemrana plant produces one thousand ACs per day for business, residential and industrial
use. Daikin's whose presence in India is demonstrated in many ways by the hustle and bustle at the
factory. In 2009 and 2010 Daikin sold thirty-four thousand ACs in India and was ranked seventh among
all AC growers. The number had risen to roughly four lakhs by 2012 and 2013, which is a remarkable
twelve times the amount. Any 85 per cent of the sales are for residential ACs.
The intention of Marketing in India
The selling variety of Daikin also increased-from Rs 440 crore in 2009 and 2010 to Rs 1,800 crore in
2012 and 2013. According to data available from the Registrar of Companies with the company, it is
now the second-largest producer of AC in India after Voltas in revenue terms. The company expects
revenues to clock 2,200 crore Rs in 2013 and 2014. According to industry estimates, the AC market is
expected to report a turnover of Rs 16,500 crore rising at 10 percent per annum next year.
Managing Director Kanwal Jeet Jawa is the man who oversaw Daikin's impressive turnaround.
He has been in the AC industry for 3 decades, and has been with the firm since April 2010. But
developing a large portfolio of products is only partially responsible for Daikin's growth. The business
has developed a five-point approach that includes not just goods but also staff, infrastructure, processes
and the brand.
The firm itself was going through a metamorphosis. It was a luxury AC manufacturer in the year
2000 when Daikin established its operations in India. The market for the medication was beyond the
common man 's control. Jawa realised this had to be changed if Daikin wanted to achieve a substantial
market share. So, it was a long trip. In 2004, Daikin acquired shares of the Siddharth Shriram Company
that owns the Usha brand to turn the Indian business into a wholly-owned subsidiary. This has been the
turning point in many ways and Daikin has begun to focus more on their Indian practices. Daikin then
imported ACs for residential use from Japan and Thailand. However, costly imports failed to allow them
to scale up and become a mass-market player.
In 2009, senior leadership at Daikin 's headquarters in Osaka brought together the organisation's
150-page vision plan for India, Fusion 2015. A new core team of 15, including Jawa, has been put in
place for its Indian operations. Daikin conducted a brand awareness poll that same year-56 out of 100
people who had not known about the product. This launched new Brand awareness strategies. But the
new management came to dominate, slashing retail prices by 40 percent in 2009 and launching a
collection of products in the price range of Rs 24,000. The plan succeeded, and in 2010 and 2011,
Daikin doubled its sales to Rs 850 Crore.
Though used in many industries, this trend was unusual in the consumer durables industry.
Multinational apparel brands like Reebok, Adidas, and Nike for example, have entered India at rates
higher than domestic competition. They gradually sell goods to boost sales at cheaper price points but
also at a relative premium to local brands like Action and Tuffs. "Daikin has the Indian ethic to get AC
right," says Harish Bijoor of Harish Bijoor Consults, a brand and market management consulting firm.

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"In India the connotation of value-for-money is very high, and the opportunity is on the mid-level
market."
It was also noted by Jawa that a number of towns and villages needed Daikin to be available. In
2010 he called the ITC Hotel in Agra for a conference with the dealers. With the arrival of an additional
dealer to go to Tier-II and Tier-III areas, approximately 350 dealers were accepted. "We had only been
catering to the ultra-rich at the time, which is a specialty," Jawa says. The network of distributors
exposed within one year. Daikin had 1,800 dealers as of the end of the last fiscal year. It grew from four
regional subway offices to eleven offices across the country and it also opened godowns and smaller
offices "We were an engineering company and then a marketing company now but we had to keep the
DNA of engineering intact," Jawa says. In 2012, Daikin unveiled a product — R32 refrigerant — that
allowed Daikin to use a smaller compressor, coil, and other components, cutting the AC size by 30
percent and offering it at a premium of just 15 percent over its South Korean rivals LG and Samsung.
The consumer durables market, meanwhile, advanced to the rating of stars, the criterion was
provided by the Bureau of Energy Efficiency. The more star numbers (maximum 5) the fewer resources
they'll require. Daikin then developed an energy-efficient machine capable of sensing the room
occupancy and controlling the tonnage for cooling and production accordingly. It was originally
introduced as a light commercial commodity but now finds a place in large apartments and villas.
Mitsubishi is the only rival with less rivalry in this space and Toshiba-Daikin has a good opportunity to
lead. Daikin has now cornered forty-five percent of China's AC market for light commercial products. It
appears to have reached half the market in India and is targeting fifty-seven percent by 2015.[ CITATION
Sen13 \l 1033 ]
In India, the turnaround in Daikin's fortunes is largely a result of higher localisation. Daikin only made
commercial ACs and chillers in India and, until around two years ago, imported all of his residential AC
systems from Taiwan and Japan. But Jawa realised in order to bring down the quality, it was important
to rely on local component manufacturers.
Daikin is now expected to step up activities. Rs 743 Crore was already spent in the plant at Neemrana.
The plant will generate up to five lakh ACs a year but the current capacity will be fully utilised by the
end of this fiscal year. Jawa also expected demand-beyond availability. He has Rs 300 crore authorized
by the parent to double the plant's capacity to one million units and to carry out other country expansion
plans.
Strategies implied :
The company has already launched 100 exclusive Daikin stores, and there is a lot more to the
pipeline. The firm has demarcated five acres of land within the plant for a center for soft skills and sales
training. For example, it is compulsory to pick up customer-care calls within 11 seconds. "We have our
bible," says Jawa. Daikin workers call it, which they abide by, the Blue Book. Japan's Daikin
management is obsessed about keeping track of production. Every quarter, Jawa says, the Japanese
parent does a review. There is an Indian management examination every month, and the zonal offices do
a weekly analysis. While some observers applaud Daikin 's progress, others take a critical view of him.
"This group is going fast towards commoditisation," says Arvind Singhal, chairman of the consultancy
company Technopak Advisors. "How much of environmental growth is not known." This is mostly
because, say, experts, no change can be made in the AC industry itself. Any technology that leaves no
identifying room is easy to reproduce too. For example, ACs with energy-efficient inverters are now in
the portfolio of every business. [ CITATION For19 \l 1033 ]

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 Jawa is dumbfounded. He just has one thing in mind — to meet the targets laid out in
Fusion 2015. The initial aim was to become India 's No.1 AC maker, in terms of sales, by 2015,
according to Fusion 2015. But Daikin India's president has a very different idea of that. He needs to do it
one year ahead of schedule. "We will be there with the present run rate before 2015," Jawa says with a
grin. And despite his track record, it's hard not to take him to heart.
Marketing Mix of Daikin Industries
The marketing-mix model is applied to discuss the Marketing Strategy of Daikin Industries.

Product

This Marketing Strategy aspect represents the solution to customer needs. Daikin Industries should
develop unique product design , name, and features to make it stand out in the competitive market.
Consideration should be provided to the development of the marketing strategy-price, selection,
functionality, packaging, brand name and expanded services.

Pricing
This Marketing Strategy dimension includes a value appraisal for targeted buyers of the goods. The
Daikin Industries pricing policy should depend on setting list price, credit conditions, payment duration,
and discounts.[ CITATION Har18 \l 1033 ]
 If Daikin Companies were to follow an industry consolidation strategy, the price of the
commodity would have to be smaller than the competition itself. The organisation will be able to gain
market share based on the discounted prices. But in the sense of an inevitable trade battle, management
must be aware of the potential revenge of the rivals.
 Choosing skimming techniques may involve consistent coordination on the basis of distinction
and whether the difference explains the increased expense.
Place

 · This marketing strategy aspect allows Daikin Industries to take some important decisions when
drawing up the delivery plan. It will decide: • Whether the organization decides to make the drug
accessible to specific market groups across its networks, or needs a delivery network to meet consumer
needs.
 · Either direct (no intermediaries involved) or indirect distribution. If the indirect sales approach
is implemented, then it is necessary to select the number of intermediaries (wholesalers, distributors,
etc).
 Conventional network of brick and mortar sales, internet delivery or a combination of both.
Some online stores like Amazon are eligible when the internet delivery approach is chosen. The
company will also be building a website to sell the drug online.

Promotion

This is one of the most important aspects of the Business Campaign for Daikin Industries. Daikin
Industries should combine the advertising tactics above and below the line to achieve its marketing
goals. The above line promotion options are television , radio and print advertising for Daikin Industries.
Below the choices for line marketing are-catalogues, trade shows and directs mail promotions.
[ CITATION Dai19 \l 1033 ]

Daikin Industries Marketing Strategy's advertising strategy includes that the company weigh the
following factors:

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  Start by specifically identifying the innovative marketing ideas and explaining why the
commodity is wanted by consumers and how it is distinct from the current alternatives.
 · Construct messaging content and decide how the messaging generated will allow customers to
create a clear image of the delivered product. When designing the advertisement, consider AIDA
(awareness, curiosity, motivation, action). If the organization wishes to promote the product, the sales
tactics such as direct sale or high profile ads would match. The pull strategy would however entail the
creation of a reputable brand identity that could draw consumers towards the product offered.
[ CITATION Mei10 \l 1033 ]

Conclusion:
Survival in the highly competitive market needs Daikin Industries to create a strong base for
distinction that could offer an advantage to rivals. Marketing policy for Daikin Industries will
concentrate on finding single sale ideas (USPs). Best quality, lowest cost or individuality of concept are
some examples of USPs. Identifying USPs is not enough, because the success of Daikin Industries'
Marketing Campaign would depend significantly on the capacity of management to communicate the
specific sales proposals found. Besides concentrating on the domestic market, the company plans to
grow globally and boost exports. It has begun exporting to Sri Lanka , Bangladesh, Nepal and South
Africa in the early stages. It will be looking for other future foreign opportunities with the rise in output
capacity. With these proposals in the pipeline, Daikin strives to hit Indian market paramount and set a
precedent on the international stage. So, to become one of the top names in the air conditioning market.

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Bibliography
Daikin, 2019. An insight into the world of Daikin. [Online] Available at:
https://www.daikinindia.com/blog-details/insight-world-daikin [Accessed 09 May 2020].
Forbes, 2019. India's 100 Most Respected Consumer Tech brands. [Online] Available at: India's 100
Most Respected Consumer Tech brands [Accessed 10 May 2020].
Harvey, M., 2018. Marketing Strategy of Daikin Industries.
Kedia, S., 2019. Journey & Marketing Strategies Of Daikin India That Helped It Succeed. Marketing
Mind.
Kokemuller, N., 2020. Why Do Companies Go International.
Meissner & G, H., 2010. Strategic International Marketing.
Ray, A., 2020. Daikin India aims to be a ₹5,000-crore firm in FY20, looks for 20% growth. [Online]
Available at: https://www.livemint.com/companies/news/daikin-india-aims-to-be-a-rs-5-000-crore-firm-
in-fy20-looks-for-20-growth-1555254699196.html [Accessed 09 May 2020].
Sen, S., 2013. Business Today. [Online] Available at: https://www.businesstoday.in/magazine/case-
study/case-study-daikin-turnaround-industry-in-india-market/story/201092.html [Accessed 10 May
2020].
Times, E., 2019. New AC series, 3rd manufacturing facility: How Daikin India is charting a cool
growth trajectory. [Online] Available at:
https://economictimes.indiatimes.com/magazines/panache/new-ac-series-3rd-manufacturing-facility-
how-daikin-india-is-charting-a-cool-growth-trajectory/articleshow/68663621.cms [Accessed 09 May
2020].