Marketing and Refrigerators

commercialiseING PROJECT BIMM(PGDM-A) GROUP MEMBERS * BHOOMIKA JOSHI * HIRAL SAVLA * PRIYANKA VARDANI * SWATI DIXIT * SHRUTI SANCHETI * SNEHA UPADHAYA * RUMPA SARKAR Indian REFRIGERATOR labor (mart ANALYSIS) Refrigerator grocery place in India Refrigerators have been make in India since 1950s. Till the 1980s players like Godrej , Kelvinator , everywyn & international ampere Voltas controlled al almost 90% of the grocery. Earlier the white goods sector was categorized as a sumptuousness goods assiduity and was subject to oppressive taxation & licensing. The situation c bent-grassed aft(prenominal) the liberalization of the Indian economy in the early 1990s.The government aloof each restrictions and now there is no restriction on contrary investments and licences atomic number 18 no longer required. Post-liberalization , a number of foreign companies entered the grocery store and many domestic players also diversified into refrigerators. BPL & VIDEOCON who already had a presence in the consumer electronics market leveraged their strengths to enter the unchangeable goods sector. The refrigerator, at present, quite all when is an indispensable item of everyday use. The refrigerator market has registered almost 40% growth over the hold up 4 years from 3. 3one thousand thousand units in 2004/05 to 4. million units in 2008/09. With growing disposable incomes and a low penetration train for the category (34% even in urban India), the market is set to puff in the coming five years. The present scenario in India is that refrigerators have the most aspirational value after televisions. This shows that the growth prize of refrigerator is high. Today refrigerators argon being manufactured in deuce basic designs which ar a) localise Cool Refrigerator b) Frost Free Refrigerator In these two designs of refrigerators, the direct cool design market is much more(prenominal) than the valuable frost-free positions.Although the growth is marginal in the direct cool models, the major chemical element for its growth is the availability of low tolld models. Indian refrigerator market is cherished at Rs 4000 crore. Refrigerators hold only 16% of consumer durable market that is cute at around Rs. 20,000-25,000 crore in India. Its market is growing at the rate of 7-8% annu every last(predicate)y. MAJOR BRANDS OF REFRIGERATORS IN INDIA * Akai Refrigerators * Allwyn Refrigerators * BPL Refrigerators * Daewoo Refrigerators * Electrolux Refrigerators * Frigidaire Refrigerators * GE Refrigerators * Godrej Refrigerators Hitachi Refrigerators * Kelvinator Refrigerators * LG Refrigerators run Refrigerators * Samsung Refrigerators Sharp Refrigerators * Siemens Refrigerators * Videocon Refrigerators * Voltas Refrigerators * bring up analysis for Indian Refrigerator Industry Strengths 1. mien of established dispersal networks in both urban and arcadian aras 2. Presence of well-known stakes 3. In recent years, organized sector has increased its share in the market vis a vis the unorganized sector. Weaknesses 1. Demand is seasonal worker and is high during festive seasonal 2.Demand is dep destroyent on good monsoons 3. Poor government spending on infrastructure 4. Low purchasing power of consumers Opportunities 1. In India, the penetration direct of white goods is lower as compared to otherwise developing countries. 2. Unexploited rural market 3. Rapid urbanization 4. Increase in income levels, i. e. increase in purchasing power of consumers 5. Easy availability of finance Threats 1. Higher result duties on raw materials imposed in the Budget 2007-08 2. Cheap significances from Singapore, china and other Asian countries COMPETITIVE FORCES IN INDIAN REFRIGERATOR INDUSTRYThe model of pure competition implies that risk-adjusted rates of return should be unceasing across firms and industries. However, numerous economic studies have affirmed that divergent industries displace sustain diverse levels of pr ofitability part of this difference is explained by industry structure. Refrigerators constitute the second largest product incision within the Indian consumer durables sectors in India. On the basis of Michael Porters five forces model an industry faces the pursuit competitive forces Diagram of Porters 5 Forces SUPPLIER exponent Supplier concentration Importance of volume to supplier unalikeiation of inputs Impact of inputs on follow or specialty Switching cost of firms in the industry Presence of substitute inputs Threat of forward integration Cost relative to complete purchases in industry BARRIERS TO ENTRY Absolute cost advantages Proprietary education curve Access to inputs Government policy Economies of scale Capital requirements mail identity operator Switching costs Access to distribution Expected retaliation Proprietary products THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to substitute - bell-performance trade-off of substitutes buyer POWER Barga ining leverageBuyer volume Buyer information Brand identity Price sensitivity Threat of vertebral columnward integration Product differentiation Buyer concentration vs. indusry. Substitutes available Buyers incentives DEGREE OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/Value added -Industry growth -Intermittent overcapacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate stakes Designing agonistical Strategies of Refrigerators A market with competition may typic entirelyy be employed by * MARKET LEADER- LG (29. 4%) * MARKET CHALLANGER- WHIRLPOOL (25%) * MARKET FOLLOWER- GODREJ (22%) MARKET NICHES- HAIER (5%) MARKET LEADER (LG) STRATEGIES LG marketing dodge is to increase its market share. LGs pertly schema aims to focus on the premium segment of the market that fetches enormouser margins as opposed to volumes. The company claims this will benefit its consumers, stockpile partners and stakeholders as it focuses on product s that drive rapid growth and lead in their check category to take a leak value for customers. In India for more than a cristal now, LG is the market leader in consumer durables and recognized as a leading engine room innovator in the information technology.LG is the acknowledged trendsetter for the consumer durable industry in India with the fas taste ever nationwide reach, latishst globose technology and product innovation. Indian challenges The challenges faced by LG when it entered the market in 1995 were Low brand awareness about LG in India. One of the last MNCs to enter India. (Samsung, Sony amp Panasonic entered in 1995 amp LG in 1997. ) High import duty. Competition from local players and other multinational companies in the consumer Electronics segment Price sensitiveness of Indian consumers Factors for successInnovative marketing strategies (pre-emptive defense) To make itself a known brand in this sector, LG has taken innovative marketing and promotional initi atives Launch of new technologies in the sector. It has state of art, RampD labs in Pune and Bangalore. (position defense) LG with its motive of lifes good Regional channel strategy and wide distribution network LG has adopted the regional distribution model in India. All the distributors work directly with the company. This has resulted in quicker rotation of stocks, and better penetration into the B, C, and D class markets.LG also follows the strategy of stock rotation, rather than dumping stocks on channel partners. LG has over 46 branch offices and another 110 area offices across the country. LG had set a target of developing 2,000 dealers in 2004, in addition to the existing 3,000 dealers all over India. LG MARKET SEGMENTATION Market partition can be done on the basis of * Geographic division Region all metro cities and suburbs. * Demographic sectionalization Family size 1-2, 3-4, 5+ Gender male, female. Income 3, 00, 000Rs and above. complaisant class working class, mi ddle class and focal ratio middle class. Psychographic partitioning Lifestyle culture oriented, health oriented. * Behavioural segmentation Occasions festivals and fixing occasions. Benefits quality, service. Loyalty status none, medium, strong, absolute. Readiness leg unaware, aware, interested, desirous, intending to buy. LG MARKET TARGETING * LG has targeted its market on the basis of the product that they are offering to the consumer, so they are following market specialization. * They are targeting * Upper class segment * Upper end * They are targeting to those consumer who are more concern of style product. Their product is more of upper mid class and premium segment, their target audience are those consumers, who want quality product as the best legal injury. * LG is now way out to shift over to mid class segment and want to aggregated market their product. LG MARKET view SRATEGY * With the tagline Lifes Good ,LG place is to differentiate their products on the basi s of technology which appealed to the consumer on the basis of health benefits. * With the tagline Lifes Good its corporate philosophy to make communitys lives better, convenient and healthier. * Their positioning strategy is technologically intelligent and futuristic. As they are in upper and premium segment, so they are featuring that their brand is young, vibrant and premium. * They are talking about the value and changing lifestyles in their positioning strategy. LG PRODUCT RANGE LG refrigerators are divided into ternary categories - 1. super atomic number 82 door refrigerators 2. Double door refrigerators 3. Side by side refrigerators Different models available under each category are - 1. SINGLE threshold REFRIGERATORS ( price range varies from9400 to 15800 Rs) * 27O Lts GL- 281 (3models) * 235 LTS GL -245 (5models) * 215 LTS GL 225 (4 models) amp models ) 185 LTS GL 195 (6 models) 2. DOUBLE DOOR REFRIGERATORS (price range varies from 14750 to 60900 Rs) * 604 LT GR M7 12YSQ * 559 LT GR B652YSP * 491 LT GL 548 (2) * 466 LT GL 528 (3) * 422 LT GL 478 (2) * 390 LT GL 405 (2) amp GL 408 (2) * 350 LT GL 365 (2) amp GL 368 (3) * 320 LT GL 335 (4) amp 338 (2) * 290 LT GL 305 (3) amp GL308 (2) * 260 LT GL 27 (2), GL 275 (3) amp GL 278 * 240 LT GL258 (3), GL 255 (3) amp GL 254 3. SIDE-BY-SIDE REFRIGERATOR ( price range varies from 58000 to 175000 Rs) * 721 LT GR P267BTB * 693 LT GR P247JHM/ CSP 567 LT GCP227 (3) * 581 LT GCB21 (2) * 567 LT GC L217 (2) MARKET CHALLENGER (WHIRLPOOL) system With 25% market share whirlpool is the Market challenger for the refrigerator Market gyrates international outlook was initiated in 1958 when it entered Brazil, but it was the 80s that marked the solution of gyrates aggressive strategy to be a creative activity-wide competitor. India was identified as a growth market in late 80s when Whirlpool Corporation entered into a mutual venture agreement with TVS group to produce automatic washers at a plant se t up in Pondicherry.This was a modest beginning was made to establish the Whirlpool brand in India. In 1995 Whirlpool Corporation acquired Kelvinator of India Limited and entered into the Refrigerator market in India. In late 1995 majority ownership was gained in the TVS joint venture and the two entities were coordinated to form Whirlpool of India Limited in 1996. Housewives The advertising tagline is Your trick in Homemaking, which inspires the Indian housewife to buy its product. sixth sense cooling 6th sense cooling is the patent technology of whirlpool, with which it is trying to capture market share of the Indian refrigerator market.Economy Whirlpool has understood Indian market very closely and has been launching products as per the requirement of the customer from different segments. Whirlpool segmented the market mainly on the basis of price and capacity. Price has been kept keeping the take ups and wants of the customer and product is knowing such that it is feasible t o every customer. Whirlpool has segmented its refrigerators under three segment WHIRLPOOL MARKET SEGMENTATION a)Geographic segmentation Region all metro cities and suburbs areas. b) Demographic segmentation Family size 1-2, 3-4, 5+ Gender male, female.Income 1,50,000Rs and above. kind class working class, middle class and upper middle class. c)Psychographic segmentation Lifestyle culture oriented d)Behavioural segmentation Occasions festivals and mending occasions. Benefits quality, service, economically possible Loyalty status none, medium, strong, absolute. Readiness stage unaware, aware, interested, desirous, intending to buy. WHIRLPOOL MARKET TARGETING STRATEGY * Whirlpool through its advertisements has been trying to target the housewives, trying to represent as a partner in base of operationsmaking. Hence, the prime target consumer for Whirlpool is Housewives. Whirlpool main targeting strategy is to provide economically viable dwelling house products. * They are also tar geting in terms of capacity and usage constitution of the consumers. Like they have different refrigerators for consumers with requirements of not very big capacities, i. e. Households, downhearted Shopkeepers and Bachelors etc, then different refrigerators for the middle class consumers who has average amount of income to draw and different for the upper class or high class consumers, which includes concourse with high income and also industries which requires storage capacity of more than 310 Lts.WHIRLPOOL MARKET POSITIONING STRATEGY Whirlpool has been trying to position itself as partner in al-Qaidamaking. This has been pretty much evident from the advertisements of Whirlpool. Whirlpools advertising tagline is Your magic in Homemaking. This is Whirlpools advertising tagline. Whirlpools originally tagline was You amp Whirlpool. The worlds best homemakers. It has been evolved to reflect the changed homemaker of like a shot versus the yesteryears. Through Whirlpools intensiv e consumer research Whirlpool erect that todays homemaker believes in having everything perfect at home and takes pride in having achieved itShe has begun to look for that something exceptional, something additional in all the brands she chooses to attend to her achieve that. Whirlpool, as the brand that partners to this demanding homemaker of today, call this quality of hers as magic and wish to be the home appliance brand that helps her create her magic in homemaking. Hence the new tagline Yours magic in the homemaking. MARKET FOLLOWER (GODREJ) SRATEGY The Godrej have always believed in the innovation. It has always forceful on the development of new technologies. It invests large amount of its time and slide fastener in RampD.It goal towards strengthening its presence in the market by introducing higher performance refrigerators for providing maximum benefit to consumers. The follower, Godrej is an arranger while following the leaders in the market. It has imitated the commer cial refrigeration proficiency i. e. , direct cooling from the leader of the market but on the other hand it is the Indias first complete range of refrigerators with 5 Star zilch Rating. By launching an entire range of 5 Star Rated Refrigerators, it has raise the bar on product efficiency while delivering the best financial value for the consumers.Thus it is successfully and efficiently moving towards its goal. Godrej marketing segmentation a)Geographic segmentation Region all metro cities and suburbs areas. b) Demographic segmentation Family size 1-2, 3-4, 5+ Gender male, female. Income 1,50,000Rs and above. fond class working class, middle class and upper middle class. c) Psychographic segmentation Lifestyle culture oriented d) Behavioural segmentation Occasions festivals and regular occasions. Benefits service, economically viable Loyalty status none, medium, strong, absolute.Readiness stage unaware, aware, interested, desirous, intending to buy. GODREJ TARGETING STRATEGY Go drej produces wide range of refrigerators to cater to the different demands of different character of users. In each category, it produces large number of models. Each model has different features and different capacities. While purchasing a refrigerator, determine your requirements and preferences. Godrej refrigerators are designed to have very attractive looks and designs. They have very sleek and chichi frame. They can fit into even small flats and homes.These refrigerators are available in various colors, styles and sizes. Apart from exterior designing, the interior of the Godrej refrigerators is designed ergonomically to offer great convenience of use, so they are targeting middle and working class customers who desires swish yet economically viable products. They have also introduced 5 star energy rating, it is the first complete range of refrigerators with five star rating. Therefore, they are taking steps toward energy saving and providing more economically viable product s, by becoming environment friendly.GODREJ POSITIONING STRATEGY The tagline of Godrej is Brighter Living. Godrej says that the only thing cooler than our fridges is the Kulfi we stash in our freezers. With several firsts swivel, a humidness jog dial, freezer air-current design Godrej refrigerators have not only stood the test time they have also run head to head in the race with modernity. Godrej EON fridges are available in a innkeeper of dashing colors to go with decor and mood. There are polybag suspenders to hang up veggies in fridge.So every day, they are trying to make the world brighter place, with their services and also cooler. Therefore, goes with their tagline brighter living. MARKET NICHER (HAIER) STRATEGY It is quality price specializer as Haier operates at the highest end of the market. Haiers strategy mainly concentrates on their constant efforts towards internationalization. Several Chinese manufacturers who entered India priced their products low by compromising on quality, thinking that Indian consumers preferred to buy low priced irrespective of their quality.This gave Indian consumers the impression that anything made in China would be cheap and of pitiable quality, but Haier break this Indian mentality by introducing high price product for upper premium class only, not compromising on the terms of quality. HAIER MARKET SEGMENTATION a)Geographic segmentation Region all metro cities and urban areas. b) Demographic segmentation Family size 1-2, 3-4, 5+ Gender male, female. Income 8,00,000Rs and above. Social class upper middle class, Upper lower class and upper-upper class. c) Psychographic segmentation Lifestyle culture oriented ) Behavioral segmentation Occasions festivals and regular occasions. Benefits service, quality oriented. Loyalty status strong, absolute. Readiness stage unaware, aware, interested, desirous, intending to buy. HAIER TARGETING STRATEGY Their targeting strategy is more customer-oriented. Haier understands the cons umer needs better and reflects that in consumer offerings. It is a manifestation of todays young couples lifestyle which connotes speed, style and togetherness. It targets upper premium segment by manufacturing wine coolers in the society.It is the nook segment in the Indian society as the use of the wines in the Indian houses is very less. Only few (very small in number as compared to the market) use the wines and thus Haier in the wine cooler segment caters the need of the only those customers that manufactures wine coolers (which are very few in the total with a particular unique demand) thus they are serving the niche segment. Hence their targeting strategy is to target upper premium segment. HAIER POSITIONING STRATEGY Life is very involving and everyday it offers you new challenges.Haier has peeped into life and come up with ideas that make living enjoyable and joyous. The main brand Idea was that Haier products are godlike by Life this is now expressed as Inspired Living. T here is also another perspective on Inspired Living. All Haier products are the result of closely studied actual usage patterns of home appliances, i. e. , inspired by everyday life. For example, Haier was the first to launch a interpenetrate Mounted Refrigerator in the country. It is based on a undecomposable insight that refrigerator shelves are used far more very much than the freezer shelf.So Haier has put the freezer at the bottom and refrigerator racks at convenient heights, so that you dont have to bend your back frequently. As a late entrant into the category, Haier understands the consumer needs better and reflects that in consumer offerings. This is how they write the positioning statement Haier is better than all other brands for slowly adopters because it offers them benefits that help them lead a better life as a result of our endeavour to understand life better and work technology around it.