Marketing and Refrigerators

martING bulge BIMM(PGDM-A) GROUP MEMBERS * BHOOMIKA JOSHI * HIRAL SAVLA * PRIYANKA VARDANI * SWATI DIXIT * SHRUTI SANCHETI * SNEHA UPADHAYA * RUMPA SARKAR INDIAN REFRIGERATOR pains ( food merc communicateise ANALYSIS) Refrigerator grocery in India Refrigerators experience been fabricate in India since 1950s. Till the eighties players like Godrej , Kelvinator , Allwyn & vitamin A international angstrom unitere Voltas controlled close to 90% of the grocery place. Earlier the white goods cuckold was categorized as a sumptuosity goods persistence and was subject to oppressive tax revenue & angstrom unitamp licensing. The situation changed subsequently the liberalization of the Indian economy in the early 1990s.The government removed both bulwarks and now there is no restriction on contradictory investments and licences argon no longer required. Post-liberalization , a progeny of foreign companies entered the food securities industry and many domestic players e xcessively diversified into iceboxs. BPL &amp VIDEOCON who already had a presence in the consumer electronics trade leveraged their strengths to enter the durables sector. The refrigerator, today, quite patently is an indispensable item of apieceday give. The refrigerator grocery has registered almost 40% step-up over the last 4 years from 3. 3million units in 2004/05 to 4. million units in 2008/09. With developing disposable incomes and a confused perceptivity train for the category (34% even in urban India), the market is set to flip ones lid in the coming atomic number 23 years. The pass on scenario in India is that refrigerators take a leak the most aspirational lever after televisions. This shows that the increment rate of refrigerator is high. Today refrigerators be being manufactured in twain basic designs which atomic number 18 a) Direct Cool Refrigerator b) icing Free Refrigerator In these two designs of refrigerators, the direct cool off design market is much(prenominal) more(prenominal) than the expensive frost-free stumpers.Although the fruit is marginal in the direct cool samples, the major factor for its growth is the availability of beginning belld pretences. Indian refrigerator market is value at Rs 4000 crore. Refrigerators hold provided 16% of consumer durable market that is valued at more or less Rs. 20,000-25,000 crore in India. Its market is growing at the rate of 7-8% annu aloney. study 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 feed Refrigerators * Samsung Refrigerators tangy Refrigerators * Siemens Refrigerators * Videocon Refrigerators * Voltas Refrigerators * SWOT analysis for Indian Refrigerator Industry Strengths 1. Presence of complete distribution internets in both urban and rural argonas 2. Presence of well- cognise cross outs 3. In recent years, organized sector has change magnitude its sh argon in the market vis a vis the unorganized sector. Weaknesses 1. Demand is seasonal and is high during festive seasonal 2.Demand is dep barent on good monsoons 3. Poor government expending on infrastructure 4. showtime buy occasion of consumers Opportunities 1. In India, the penetration level of white goods is lower as compared to unlike 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 terrors 1. high import duties on raw materials oblige in the Budget 2007-08 2. Cheap imports from Singapore, chinaware and some former(a) Asian countries COMPETITIVE FORCES IN INDIAN REFRIGERATOR INDUSTRYThe model of pure competition implies that risk-adjusted rates of hurl should be constant across firms a nd industries. However, many economic studies absorb affirmed that variant industries rump sustain diametrical levels of profitability part of this difference is explained by persistence structure. Refrigerators constitute the second astronomicst ingathering surgical incision within the Indian consumer durables sectors in India. On the foundation garment of Michael Porters five forces model an industry faces the following(a) competitive forces Diagram of Porters 5 Forces provider POWER Supplier concentration wideness of volume to supplierDifferentiation of inputs Impact of inputs on be or preeminence Switching cost of firms in the industry Presence of replacing inputs Threat of forward integration cost relative to total purchases in industry BARRIERS TO ENTRY Absolute cost advantages proprietorship learning curve accession to inputs organisation policy Economies of scale Capital requirements blade identity Switching costs Access to distribution Expected retalia tion trademarked increases THREAT OF SUBSTITUTES -Switching costs -Buyer inclination to backlog - equipment casualty-performance trade-off of substitutes BUYER POWER dicker leverageBuyer volume Buyer information stag identity Price sensitivity Threat of backward integration Product differentiation Buyer concentration vs. indusry. Substitutes available Buyers incentives gunpoint OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/ measure added -Industry growth -Intermittent over electrical capacity -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate put on the line Designing Competitive Strategies of Refrigerators A market with competition may typically be occupied by * merchandise LEADER- LG (29. 4%) * MARKET CHALLANGER- WHIRLPOOL (25%) * MARKET FOLLOWER- GODREJ (22%) MARKET NICHES- HAIER (5%) MARKET LEADER (LG) STRATEGIES LG marketing system is to increase its market share. LGs freshly dodge aims to focus on the premium comp onent of the market that fetches greater margins as remote to volumes. The company claims this will turn a profit its consumers, direct partners and stakeholders as it focuses on crossings that drive quick growth and lead in their brand category to create value for customers. In India for more than a decade now, LG is the market leader in consumer durables and acknowledge as a leading engineering science innovator in the information technology.LG is the acknowledge trendsetter for the consumer durable industry in India with the smart ever nationwide reach, latest international technology and product innovation. Indian challenges The challenges approach 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. ) proud import duty. Competition from local players and other multinational companies in the consumer Electronics discussion section P rice sensitiveness of Indian consumers Factors for success ripe marketing strategies (pre-emptive defense) To make itself a known brand in this sector, LG has taken advanced(a) marketing and promotional initiatives 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 feels good functional channel schema and wide distribution network LG has adopted the regional distribution model in India. All the distributors work straightway with the company. This has resulted in quicker rotation of stocks, and dampen penetration into the B, C, and D physical bodyify markets.LG withal follows the strategy of stock rotation, rather than chuck out stocks on channel partners. LG has over 46 branch offices and another 110 area offices across the country. LG had set a level of developing 2,000 dealers in 2004, in increase to the existing 3,000 dealers all over India. LG MARKET variance marketplace subdi visionation flush toilet be done on the substructure of * Geographic naval division arena all metro cities and suburbs. * demographic breakdown Family coat 1-2, 3-4, 5+ sex male, female. Income 3, 00, 000Rs and above. friendly sept running(a) conformation, midsection curriculum and amphetamine berth midpoint class. Psychographic segmentation vitality-style destination oriented, health oriented. * Behavioural segmentation do festivals and regular occasions. Benefits shade, service. Loyalty status none, medium, strong, absolute. cockiness set unaware, aware, interested, desirous, intending to buy. LG MARKET TARGETING * LG has steered its market on the basis of the product that they are crack to the consumer, so they are following market specialization. * They are engineering * 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 targ et audience are those consumers, who want quality product as the ruff impairment. * LG is now going to rupture over to mid class segment and want to mass market their product. LG MARKET location SRATEGY * With the tagline Lifes easily ,LG situation is to differentiate their products on the basis of technology which appealed to the consumer on the basis of health benefits. * With the tagline Lifes Good its embodied philosophy to make piles 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 lecture about the value and changing lifestyles in their positioning strategy. LG PRODUCT RANGE LG refrigerators are divided into common chord categories - 1. Single room access refrigerators 2. Double door refrigerators 3. Side by side refrigerators Different models available infra each category are - 1 . sensation DOOR 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. iterate DOOR REFRIGERATORS (price range varies from 14750 to 60900 Rs) * 604 LT GR M712YSQ * 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) schema With 25% market share convolution is the Market challenger for the refrigerator Market Whirlpools international learning ability was initiated in 1958 when it entered Brazil, but it was the 80s that marked the beginning of Whirlpools aggressive strategy to be a world-wide competitor. India was identified as a growth market in late 80s when Whirlpool Corporation entered into a joint venture agreement with TVS stem to produce automatic washers at a plant set up in Pondicherry.This was a modest beginning was do to establish the Whirlpool brand in India. In 1995 Whirlpool Corporation acquired Kelvinator of India modified 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 unify to form Whirlpool of India Limited in 1996. Housewives The publicise tagline is Your fast one in Homemaking, which inspires the Indian housewife to buy its product. 6th reason modify 6th sense cooling is the patent technology of whirlpool, with which it is move to take prisoner market share of the Indian refrigerator market.Economy Whirlpool has understood Indian market real about and has been entryway products as per the requirement of the customer from different segments. Whirlpool segmented the market chief(prenominal)ly on the basis of price and capacity. Price has been kept keeping the demand and wants of the customer and product is knowing such that it is feasible to e precise 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. Social class working class, middle class and upper middle class. c)Psychographic segmentation Lifestyle culture oriented d)Behavioural segmentation Occasions festivals and regular occasions. Benefits quality, service, economically executable Loyalty status none, medium, strong, absolute. tact stage unaware, aware, interested, desirous, intending to buy. WHIRLPOOL MARKET TARGETING strategy * Whirlp ool through its advertisements has been trying to target the housewives, trying to portray as a partner in understructuremaking. Hence, the prime target consumer for Whirlpool is Housewives. Whirlpool main targeting strategy is to provide economically viable kinsperson products. * They are withal targeting in damage of capacity and usage nature of the consumers. akin they bear different refrigerators for consumers with requirements of not very big capacities, i. e. Households, Small Shopkeepers and Bachelors etc, then different refrigerators for the middle class consumers who has average fare of income to dispose and different for the upper class or high class consumers, which includes people with high income and to a fault industries which requires storage capacity of more than 310 Lts.WHIRLPOOL MARKET POSITIONING scheme Whirlpool has been trying to position itself as partner in homemaking. This has been pretty much evident from the advertisements of Whirlpool. Whirlpools ad vertising tagline is Your supernatural in Homemaking. This is Whirlpools advertising tagline. Whirlpools primitively tagline was You amp Whirlpool. The worlds best woman of the houses. It has been evolved to reflect the changed homemaker of today versus the yesteryears. through and through Whirlpools intensive consumer explore Whirlpool found that todays homemaker believes in having everything perfect at home and takes pride in having achieved itShe has begun to hold back for that something exceptional, something additional in all the brands she chooses to dish out 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 thingamajig 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 exclamatory on the development of new technolog ies. It invests large amount of its time and capacity in RampD.It goal towards beef up its presence in the market by introducing higher performance refrigerators for providing maximum benefit to consumers. The follower, Godrej is an adapter while following the leading in the market. It has imitated the commercial refrigeration technique i. e. , direct cooling from the leader of the market but on the other hand it is the Indias prime(prenominal) complete range of refrigerators with 5 wizard Energy Rating. By launching an entire range of 5 Star Rated Refrigerators, it has raised the bar on product efficiency while delivering the best monetary value for the consumers.Thus it is successfully and efficiently mournful 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. Social class working class, middle class and u pper 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 scheme Godrej produces wide range of refrigerators to cater to the different demands of different type 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 snazzy frame. They can fit into even small flats and homes.These refrigerators are available in various colors, styles and sizes. away from exterior designing, the interior of the Godrej refrigerators is designed ergonomically to broaden great convenience of use, so they are targeting middle and working class customers who desires stylish 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 locomote toward energy saving and providing more economically viable products, by becoming surround friendly.GODREJ POSITIONING STRATEGY The tagline of Godrej is Brighter Living. Godrej says that the only if thing cooler than our fridges is the Kulfi we stash in our freezers. With several firsts swivel, a humidity tramp dial, freezer air-current design Godrej refrigerators have not only stood the test time they have also run well to head in the race with modernity. Godrej EON fridges are available in a swarm 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 specialist 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, sentiment that Indian consumers preferred to buy low priced irrespective of their quality.This gave Indian consumers the impression that anything do in China would be bald-faced and of poor quality, but Haier break this Indian mentality by introducing high price product for upper premium class only, not compromising on the equipment casualty 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 segme ntation 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 consumer unavoidablenesss better and reflects that in consumer offerings. It is a presentation of todays young braces lifestyle which connotes speed, style and togetherness. It targets upper premium segment by manufacturing vino coolers in the society.It is the niche segment in the Indian society as the use of the wines in the Indian houses is very less. unless 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 numbers 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 occasional 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 excite by Life this is now explicit as shake Living. There 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 Bottom mount Refrigerator in the country. It is based on a simple insight that refrigerator shelves are used far more often 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 inescapably better and reflects that in consum er offerings. This is how they write the positioning statement Haier is better than all other brands for easy 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.