Marketing and Refrigerators

grocery storeplaceING PROJECT BIMM(PGDM-A) stem MEMBERS * BHOOMIKA JOSHI * HIRAL SAVLA * PRIYANKA VARDANI * SWATI DIXIT * SHRUTI SANCHETI * SNEHA UPADHAYA * RUMPA SARKAR INDIAN REFRIGERATOR INDUSTRY (mart ANALYSIS) icebox grocery in India Refrigerators nominate been make in India since 1950s. Till the 1980s players same(p) Godrej , Kelvinator , Allwyn & angstrom Voltas controlled almost 90% of the tradeplace. rather the white goods sector was categorized as a luxury goods attention and was overcome to oppressive taxation & axerophthol licensing. The lieu changed after the liberalization of the Indian providence in the early 1990s.The government aloof on the whole restrictions and now there is no restriction on foreign investments and licences ar no longer required. Post-liberalization , a sum total of foreign companies entered the merc exitiseplace and many ho implement servant players as well as diversified into refrigerators. BPL & deoxyadenosine monophosphat e VIDEOCON who already had a presence in the consumer electronics foodstuff leveraged their strengths to enter the durables sector. The refrigerator, today, quite alone is an indispensable item of severallyday use. The refrigerator foodstuff has registered almost 40% ingathering over the last 4 long time from 3. 3million units in 2004/05 to 4. million units in 2008/09. With developing disposable incomes and a start discernment take aim for the category (34% even in urban India), the marketplace is set to split in the coming pentad years. The evidence scenario in India is that refrigerators gull the most aspirational shelter after televisions. This shows that the gain rate of refrigerator is graduate(prenominal). Today refrigerators argon being fabricate in 2 basic designs which be a) Direct Cool Refrigerator b) icing the puck Free Refrigerator In these two designs of refrigerators, the direct feeble design market is lots more than than the expensive frost-f ree lays.Although the reaping is marginal in the direct cool stupefys, the major factor for its growth is the availableness of little belld cases. Indian refrigerator market is wanted at Rs 4000 crore. Refrigerators hold just 16% of consumer durable market that is valued at nigh Rs. 20,000-25,000 crore in India. Its market is growing at the rate of 7-8% annually. 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 gyrate Refrigerators * Samsung Refrigerators lancinating Refrigerators * Siemens Refrigerators * Videocon Refrigerators * Voltas Refrigerators * SWOT analysis for Indian Refrigerator Industry Strengths 1. Presence of complete distribution lucres in both urban and rural atomic deem 18as 2. Presence of well-know prints 3. In recent years, organized sector has increase its sh atomic number 18 in the market vis a vis the unorganized sector. Weaknesses 1. Demand is seasonal and is high during festive seasonal 2.Demand is dep closureent on good monsoons 3. Poor government pass on infrastructure 4. lower-ranking acquire role of consumers Opportunities 1. In India, the penetration level of white goods is lower as comp bed to separate(a) developing countries. 2. Unexploited rural market 3. Rapid urbanization 4. Increase in income levels, i. e. increase in buying power of consumers 5. Easy availability of finance flagellums 1. high import duties on raw materials obligate in the Budget 2007-08 2. Cheap imports from Singapore, mainland China and another(prenominal) Asian countries COMPETITIVE FORCES IN INDIAN REFRIGERATOR INDUSTRYThe model of pure competition implies that risk-adjusted rates of supply should be constant across firms and industries. However, many economic studies spend a penny af firmed that several(predicate) industries buttocks sustain various levels of positiveness part of this difference is explained by pains structure. Refrigerators constitute the second sizablest ingathering element within the Indian consumer durables sectors in India. On the al-Qaida of Michael Porters five forces model an industry faces the pursual competitive forces Diagram of Porters 5 Forces provider POWER Supplier concentration immenseness of volume to supplierDifferentiation of inputs Impact of inputs on speak to or eminence Switching cost of firms in the industry Presence of commute inputs Threat of forward integration equipment casualty relative to total purchases in industry BARRIERS TO ENTRY Absolute cost advantages patented learning curve entranceway to inputs establishment policy Economies of scale Capital requirements taint identity Switching costs Access to distribution Expected retaliation trademarked outputs THREAT OF SUBSTITUTES -Switching cos ts -Buyer inclination to deputize - price-performance trade-off of substitutes BUYER POWER negotiate leverageBuyer volume Buyer information defect identity Price sensitivity Threat of backward integration Product contrastingiation Buyer concentration vs. indusry. Substitutes available Buyers incentives power point OF RIVALRY -Exit barriers -Industry concentration -Fixed costs/ revalue added -Industry growth -Intermittent overmental ability -Product differences -Switching costs -Brand identity -Diversity of rivals -Corporate jeopardize Designing Competitive Strategies of Refrigerators A market with competition may typically be occupied by * grocery store LEADER- LG (29. 4%) * MARKET CHALLANGER- WHIRLPOOL (25%) * MARKET FOLLOWER- GODREJ (22%) MARKET NICHES- HAIER (5%) MARKET LEADER (LG) STRATEGIES LG marketing dodging is to increase its market sh atomic number 18. LGs novel dodging aims to focus on the premium incision of the market that fetches greater margins as debate to volumes. The company claims this will put on its consumers, line of descent partners and stakeholders as it focuses on convergences that drive fast 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 accepted as a leading technology innovator in the information technology.LG is the adjudge trendsetter for the consumer durable industry in India with the high-velocity ever nationwide reach, latest planetary technology and product innovation. Indian challenges The challenges approach by LG when it entered the market in 1995 were Low brand aw arness about LG in India. One of the last MNCs to enter India. (Samsung, Sony antiophthalmic factor Panasonic entered in 1995 amp LG in 1997. ) extravagantly import duty. Competition from local players and other multinational companies in the consumer Electronics division Price sensitiveness of Indian consumers Factors for s uccesssophisticated marketing strategies (pre-emptive defense) To make itself a known brand in this sector, LG has taken modern 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 spirit historys good domainal subscriber line dodge and wide distribution network LG has adopted the regional distribution model in India. All the distributors work now with the company. This has resulted in quicker rotation of stocks, and improve penetration into the B, C, and D screen markets.LG in like manner follows the dodge of stock rotation, rather than dispose stocks on channel partners. LG has over 46 branch offices and a nonher 110 bea offices across the country. LG had set a fool of developing 2,000 dealers in 2004, in plus to the existing 3,000 dealers all over India. LG MARKET air division securities industry particleation earth-closet be done on the pr at of * Geographic air division character all resistance cities and suburbs. * demographic variance Family size of it 1-2, 3-4, 5+ sexual practice male, female. Income 3, 00, 000Rs and above. favorable mob work line, centre course of action and stop number philia social class. Psychographic breakdown life style assimilation point, health oriented. * Behavioural segmentation do festivals and regular occasions. Benefits shade, service. Loyalty status none, medium, strong, absolute. zeal portray unaw ar, aware, interested, desirous, intending to buy. LG MARKET TARGETING * LG has ranked its market on the basis of the product that they are fling to the consumer, so they are following market specialization. * They are intenting * 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 prod uct as the beat price. * LG is now going to cant over to mid class segment and want to mass market their product. LG MARKET lay SRATEGY * With the tagline Lifes grievous ,LG put 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 incorporate philosophy to make hoi pollois 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 public lecture about the value and changing lifestyles in their positioning strategy. LG PRODUCT RANGE LG refrigerators are divided into 3 categories - 1. Single brink refrigerators 2. Double door refrigerators 3. Side by side refrigerators Different models available under(a) each category are - 1. wholeness DOOR REFRIGERATORS (price swan varies from9400 to 1580 0 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. soprano 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) dodging With 25% market share spin is the Market challenger for the refrigerator Market Whirlpools international brainpower was initiated in 1958 when it entered Brazil, but it was the 80s that marked the beginning of Whirlpools aggressive st rategy 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 crowd 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 circumscribed 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 merged to form Whirlpool of India Limited in 1996. Housewives The advertise tagline is Your witching(prenominal) in Homemaking, which inspires the Indian housewife to buy its product. 6th brain cooling 6th sense cooling is the patent technology of whirlpool, with which it is nerve-wracking to magnetise market share of the Indian refrigerator market.Economy Whirlpool has understood Indian market very(prenominal) fast and has been intro 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 unplowed keeping the ineluctably and wants of the customer and product is designed such that it is feasible to 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. 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 viable Loyalty status none, medium, strong, absolute. readying stage unaware, aware, interested, desirous, intending to buy. WHIRLPOOL MARKET TARGETING dodge * Whirlpool through its advertisements has been trying to target the housewives, trying to portray as a partner in family unitmaking. Hence, the prime target consumer for Whirlpool is Housewives. Whirlpool main targeting strategy is to provide economically viable kinfolk products. * They are excessively targeting in cost of capacity and usage nature of the consumers. comparable they accept 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 amount of income to dispose and different for the upper class or high class consumers, which includes people with high income and also 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 advertising tagline is Your fancy in Homemaking. This is Whi rlpools advertising tagline. Whirlpools in front tagline was You amp Whirlpool. The worlds best homemakers. It has been evolved to reflect the changed homemaker of today versus the yesteryears. by means of Whirlpools intensive consumer investigate Whirlpool found that todays homemaker believes in having everything perfect at home and takes pride in having achieved itShe has begun to encounter for that something exceptional, something additional in all the brands she chooses to encourage 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 thingummy 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 emphasised on the development of new technologies. It invests large amount of its time and animation in RampD.It goal towards m odify 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 leaders 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 head start complete range of refrigerators with 5 leading Energy Rating. By launching an entire range of 5 Star Rated Refrigerators, it has raised the bar on product efficiency while delivering the best financial value for the consumers.Thus it is successfully and efficiently pitiable 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 upper middle class. c) Psychographic segmentation Lifestyle culture oriented d) Behavioura l 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 system 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 classy frame. They can fit into even small flats and homes.These refrigerators are available in various colors, styles and sizes. aside from exterior designing, the interior of the Godrej refrigerators is designed ergonomically to adjure great convenience of use, so they are targeting middle and working class customers who desires stylish yet economicall y 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 move toward energy saving and providing more economically viable products, by becoming purlieu friendly.GODREJ POSITIONING STRATEGY The tagline of Godrej is Brighter Living. Godrej says that the but thing cooler than our fridges is the Kulfi we stash in our freezers. With several firsts swivel, a humidity lop dial, freezer air-current design Godrej refrigerators have not only stood the test time they have also run guide on to head in the race with modernity. Godrej EON fridges are available in a armament 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 speci alist 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 gaudy and of poor quality, but Haier break this Indian mentality by introducing high price product for upper premium class only, not compromising on the toll 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. Benefit s 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 drives better and reflects that in consumer offerings. It is a grammatical construction of todays young couple ups lifestyle which connotes speed, style and togetherness. It targets upper premium segment by manufacturing wine 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. precisely 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 universal 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 elysian by Life this is now evince as godly 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 attach 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 postulate better and reflects that in consumer 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.