Marketing and Refrigerators

MARKETING PROJECT BIMM(PGDM-A) GROUP MEMBERS: * BHOOMIKA JOSHI * HIRAL SAVLA * PRIYANKA VARDANI * SWATI DIXIT * SHRUTI SANCHETI * SNEHA UPADHAYA * RUMPA SARKAR INDIAN REFRIGERATOR INDUSTRY (MARKET ANALYSIS) Refrigerator trade in India Refrigerators keep been pretended in India past 1950s. Till the 1980s players affect Godrej , Kelvinator , Allwyn & Voltas controlled approximately 90% of the trade. Antecedent the stainclose chattels sector was categorized as a dainty chattels diligence and was topic to heavy taxation & licensing. The attribute alterable aftercited the liberalization of the Indian husbanding in the confer-upon 1990s. The synod removed all neutralizations and now there is no neutralization on storder investments and licences are no longer required. Post-liberalization , a calcuadvanced of storder companies invadeed the trade and divers domiciliary players as-well dissecti-colored into refrigerators. BPL & VIDEOCON who already had a influence in the consumer electronics trade leveraged their strengths to invade the persistents sector. The refrigerator, today, truly simply is an essential item of unamazed use. The refrigerator trade has registered approximately 40% enlargement aggravate the ultimate 4 years – from 3. 3pet units in 2004/05 to 4. pet units in 2008/09. After a opportunity growing restricted allowances and a low acuteness plane for the kind (34% well-balanced in elegant India), the trade is set to fume in the herebehind five years. The confer-upon scenario in India is that refrigerators keep the most aspirational treasure aftercited televisions. This shows that the enlargement blame of refrigerator is lofty. Today refrigerators are naturalness pretended in two basic contemplations which are: a) Frequented Cautious Refrigerator b) Frost Free Refrigerator In these two contemplations of refrigerators, the frequented cautious contemplation trade is plenteous past than the dear frost-free kinds. Although the enlargement is final in the frequented cautious kinds, the significanceant content for its enlargement is the availability of low worthd kinds. Indian refrigerator trade is treasured at Rs 4000 crore. Refrigerators abide solely 16% of consumer persistent trade that is treasured at about Rs. 20,000-25,000 crore in India. Its trade is growing at the blame of 7-8% year-by-year. 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| Whirlpool Refrigerators| * Samsung Refrigerators| Sharp Refrigerators| * Siemens Refrigerators| * Videocon Refrigerators| * Voltas Refrigerators| * | SWOT separation for Indian Refrigerator Diligence Strengths: 1. Influence of customary disposal networks in twain elegant and pastoral areas 2. Influence of well-public infamys 3. In new-fangled years, arranged sector has augmentationd its divide in the trade vis a vis the unarranged sector. Weaknesses 1. Claim is seasonal and is lofty during gay seasonal 2. Demand is relying on cheerful monsoons 3. Scanty synod spending on infraerection 4. Low purchasing authority of consumers Opportunities : 1. In India, the acuteness plane of stainclose chattels is inferior as compared to other developing countries. 2. Unexploited pastoral trade 3. Accelerated elegantization 4. Augmentation in allowance planes, i. e. augmentation in purchasing authority of consumers 5. Facile availability of finance Threats: 1. Preferable purport duties on raw materials imposed in the Budget 2007-08 2. Low-priced purports from Singapore, China and other Asian countries COMPETITIVE FORCES IN INDIAN REFRIGERATOR INDUSTRY: The kind of unsullied pursuit implies that risk-adjusted blames of reappear should be stated athwart firms and industries. However, compact economic studies keep affirmed that irrelative industries can deeptain irrelative planes of profitability; dissect of this dissimilitude is explained by diligence erection. Refrigerators organize the succor bulkyst emanation section amid the Indian consumer persistents sectors in India. On the plea of Michael Porter’s five forces kind an diligence faces the aftercited competitive forces: Diagram of Porter's 5 Forces | SUPPLIER POWER Supplier strain Importance of book to supplier Differentiation of inputs Impact of inputs on require or irrelativeiation Switching requires of firms in the diligence Influence of commute inputs Threat of self-assertive integration Require not-independent to totalty purchases in diligence|  | BARRIERS TO ENTRY Independent require advantages Proprietary erudition deflexion Access to inputs Synod device Economies of flake Capital modifications Infamy individuality Switching requires Access to disposal Expected requital Proprietary emanations| | THREAT OF SUBSTITUTES -Switching requires -Buyer liking to commute -Price-deed trade-off of commutes| | BUYER POWER Bargaining leverage Buyer book Buyer instruction Infamy individuality Worth sensitivity Threat of ignorant integration Emanation irrelativeiation Buyer strain vs. indusry. Substitutes laborable Buyers' incentives| DEGREE OF RIVALRY -Exit barriers -Industry strain -Fixed requires/Value pretended -Industry enlargement -Intermittent aggravatemagnitude -Product dissimilitudes -Switching requires -Brand individuality -Diversity of rivals -Corpoblame stakes| Designing Competitive Strategies of Refrigerators: A trade after a opportunity pursuit may typically be shackled by: * MARKET LEADER- LG (29. 4%) * MARKET CHALLANGER- WHIRLPOOL (25%) * MARKET FOLLOWER- GODREJ (22%) MARKET NICHES- HAIER (5%) MARKET LEADER (LG) STRATEGIES: LG tradeing management is to augmentation its trade divide. LG's new management bequest to rendezvous on the recompense section of the trade that fetches significanceant margins as irrelative to books. The gang clbequest this allure utility its consumers, document dissectners and stakeholders as it rendezvouses on emanations that propel accelerated enlargement and bring in their infamy kind to invent treasure for customers. In India for past than a decade now, LG is the trade bringer in consumer persistents and recurrent as a bringing technology innovator in the instruction technology. LG is the unquestioned trendsetter for the consumer persistent diligence in India after a opportunity the fascriterion eternally nationbroad penetrate, ultimate global technology and emanation alteration. Indian challenges The challenges faced by LG when it invadeed the trade in 1995 were: • Low infamy consciousness about LG in India. • One of the ultimate MNCs to invade India. (Samsung, Sony ;amp; Panasonic invadeed in 1995 ;amp; LG in 1997. ) • Lofty purport commission. • Pursuit from topical players and other multinational companies in the consumer Electronics section • Worth sensibility of Indian consumers Factors for success: Innovative tradeing strategies (pre-emptive guard) To contrive itself a public infamy in this sector, LG has delayholdd innovative tradeing and promotional initiatives: • Expatiate of new technologies in the sector. It has propound of art, R;amp;D labs in Pune and Bangalore. (pose guard) LG after a opportunity its inducement of “life’s cheerful” Regional document management and broad disposal netcomaspect LG has adopted the regional disposal kind in India. All the distributors comaspect frequentedly after a opportunity the gang. This has ended in quicker turn of funds, and meliorate acuteness into the B, C, and D arorder trades. LG as-well follows the management of fund turn, rather than dumping funds on document dissectners. LG has aggravate 46 bough offices and another 110 area offices athwart the state. LG had set a target of developing 2,000 dealers in 2004, in restoration to the tangible 3,000 dealers all aggravate India. LG MARKET SEGMENTATION: Trade sectionation can be done on the plea of : * Geographic sectionation: Region: all metro cities and outskirts. * Demographic sectionation: Family size: 1-2, 3-4, 5+ Gender: hardy, effeminate. Income: 3, 00, 000Rs and aloft. Social arrange: compositioning arrange, medium arorder and excellent medium arrange. Psychographic sectionation: Lifestyle: refinement oriented, soundness oriented. * Behavioural sectionation: Occasions: festivals and stated occasions. Benefits: tendency, labor. Loyalty status: none, medium, sinewy, independent. Readiness stage: unconscious, conscious, zealous, sound, intending to buy. LG MARKET TARGETING: * LG has targeted its trade on the plea of the emanation that they are aid to the consumer, so they are aftercited trade specialization. * They are targeting: * Excellent arorder section * Excellent end * They are targeting to those consumer who are past matter of phraseology emanation. Their emanation is past of excellent mid arorder and recompense section, their target hearers are those consumers, who failure tendency emanation as the best worth. * LG is now going to transfer aggravate to mid arorder section and failure to priority trade their emanation. LG MARKET POSITIONING SRATEGY: * After a opportunity the tagline Life’s Cheerful ,LG poseing is to irrelativeiate their emanations on the plea of technology which appealed to the consumer on the plea of soundness utilitys. * After a opportunity the tagline ‘Life’s Good’ its corpoblame philosophy to contrive pursuit’s lives meliorate, apt and soundnessier. * Their poseing management is technologically intelligent and futuristic. As they are in excellent and recompense section, so they are featuring that their infamy is puerile, vibrant and recompense. * They are talking about the treasure and changing personalitystyles in their poseing management. LG PRODUCT RANGE LG refrigerators are separated into three categories :- 1. Single door refrigerators 2. Double door refrigerators 3. Laterality by advancedrality refrigerators Irrelative kinds laborable subordinateneathneath each kind are :- 1. SINGLE DOOR REFRIGERATORS (worth order varies from9400 to 15800 Rs) * 27O Lts – GL- 281 (3models) * 235 LTS – GL -245 (5models) * 215 LTS – GL 225 (4 kinds) ;amp; kinds ) 185 LTS – GL 195 (6 kinds) 2. DOUBLE DOOR REFRIGERATORS (worth order 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 ( worth order 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) STRATEGY After a opportunity 25% trade divide whirlpool is the Trade warrior for the refrigerator Market: Whirlpool’s interdiplomatic eight was inaugurated in 1958 when it invadeed Brazil, but it was the ‘80’s that remarkable the inauguration of Whirlpool’s unsavory management to be a universe-broad antagonist. India was attested as a enlargement trade in advanced ‘80’s when Whirlpool Corporation invadeed into a knee experiment treaty after a opportunity TVS assembly to fruit effortclose washers at a introduce set up in Pondicherry. This was a fashioned inauguration was made to fir the Whirlpool infamy in India. In 1995 Whirlpool Corporation artificial Kelvinator of India Limited and invadeed into the Refrigerator trade in India. In advanced 1995 significanceantity tenure was gained in the TVS knee experiment and the two entities were merged to contrive Whirlpool of India Limited in 1996. Housewives: The advertising tagline is ‘Your sorcery in Homemaking’, which inspires the Indian housewife to buy its emanation. 6th discernment cautiousing: 6th discernment cautiousing is the ambiguous technology of whirlpool, after a opportunity which it is hard to delayhold trade divide of the Indian refrigerator trade. Economy: Whirlpool has subordinateneathshining Indian trade very air-tight and has been expatiateing emanations as per the modification of the customer from irrelative sections. Whirlpool sectioned the trade primarily on the plea of worth and magnitude. Worth has been kept guardianship the insufficiencys and failures of the customer and emanation is contemplationed such that it is practicable to eternallyy customer. Whirlpool has sectioned its refrigerators subordinateneathneath three section: WHIRLPOOL MARKET SEGMENTATION: a)Geographic sectionation: Region: all metro cities and outskirts areas. b) Demographic sectionation: Family size: 1-2, 3-4, 5+ Gender: hardy, effeminate. Income: 1,50,000Rs and aloft. Social arrange: compositioning arrange, medium arorder and excellent medium arrange. c)Psychographic sectionation: Lifestyle: refinement oriented d)Behavioural sectionation: Occasions: festivals and stated occasions. Benefits: tendency, labor, economically viable Loyalty status: none, medium, sinewy, independent. Readiness stage: unconscious, conscious, zealous, sound, intending to buy. WHIRLPOOL MARKET TARGETING STRATEGY: * Whirlpool through its advertisements has been hard to target the housewives, hard to depict as a dissectner in abodemaking. Hence, the excellent target consumer for Whirlpool is Housewives. Whirlpool deep targeting management is to stipudelayed economically viable houseabide emanations. * They are as-well targeting in stipulations of magnitude and deed naturalness of the consumers. Affect they keep irrelative refrigerators for consumers after a opportunity modifications of not very big capacities, i. e. Households, Diminutive Shopkeepers and Bachelors etc, then irrelative refrigerators for the medium arorder consumers who has medium aggregate of allowance to enjoin and irrelative for the excellent arorder or lofty arorder consumers, which includes pursuit after a opportunity lofty allowance and as-well industries which requires storage magnitude of past than 310 Lts. WHIRLPOOL MARKET POSITIONING STRATEGY: Whirlpool has been hard to pose itself as dissectner in abodemaking. This has been moderately plenteous indisputable from the advertisements of Whirlpool. Whirlpool’s advertising tagline is ‘Your sorcery in Homemaking’. This is Whirlpool’s advertising tagline. Whirlpool’s antecedent tagline was “You ;amp; Whirlpool. The universe’s best abodemakers. ” It has been evolved to return the alterable abodemaker of today versus the yesteryears. Through Whirlpool’s intensive consumer scrutiny Whirlpool plant that today’s abodemaker believes in having eternallyyman mature at abode and takes conceit in having terminated it! She has begun to seem for that bigwig rare, bigwig restorational in all the infamys she chooses to succor her terminate that. Whirlpool, as the infamy that dissectners to this claiming abodemaker of today, wheedle this tendency of hers as ‘magic’ and wish to be the abode arrangement infamy that succors her invent her “sorcery in abodemaking”. Hence the new tagline “Your’s sorcery in the abodemaking”. MARKET FOLLOWER (GODREJ) SRATEGY: The Godrej keep orderlyly believed in the alteration. It has orderlyly emphasized on the harvest of new technologies. It invests bulky aggregate of its spell and essential-capacity in R;amp;D. It motive inlands strengthening its influence in the trade by introducing loftyer deed refrigerators for providing ultimatum utility to consumers. The attendant, Godrej is an adapter opportunity aftercited the bringers in the trade. It has imitated the commercial cooling technique i. e. , frequented cautiousing from the bringer of the trade but on the other laborer it is the India's primitive full order of refrigerators after a opportunity "5 Bigwig Essential-capacity Rating. " By expatiateing an total order of 5 Bigwig Rated Refrigerators, it has aggravated the bar on emanation competency opportunity delivering the best monetary treasure for the consumers. Thus it is successfully and efficiently affecting inlands its motive. Godrej tradeing sectionation: a)Geographic sectionation: Region: all metro cities and outskirts areas. b) Demographic sectionation: Family size: 1-2, 3-4, 5+ Gender: hardy, effeminate. Income: 1,50,000Rs and aloft. Social arrange: compositioning arrange, medium arorder and excellent medium arrange. c) Psychographic sectionation: Lifestyle: refinement oriented d) Behavioural sectionation: Occasions: festivals and stated occasions. Benefits: labor, economically viable Loyalty status: none, medium, sinewy, independent. Readiness stage: unconscious, conscious, zealous, sound, intending to buy. GODREJ TARGETING STRATEGY: Godrej fruits broad order of refrigerators to furnish to the irrelative claims of irrelative kind of users. In each kind, it fruits bulky calcuadvanced of kinds. Each kind has irrelative features and irrelative capacities. Opportunity purchasing a refrigerator, state your modifications and preferences. Godrej refrigerators are contemplationed to keep very beautiful seems and contemplations. They keep very smug and tawdry fashion. They can fit into well-balanced diminutive flats and abodes. These refrigerators are laborable in manifold colors, phraseologys and sizes. Adissect from outward contemplationing, the inland of the Godrej refrigerators is contemplationed ergonomically to extend exalted unoccupied-date of use, so they are targeting medium and compositioning arorder customers who desires tawdry yet economically viable emanations. They keep as-well introduced 5 bigwig essential-capacity rating, it is the primitive full order of refrigerators after a opportunity five bigwig rating. Therefore, they are entrance steps inland essential-capacity sparing and providing past economically viable emanations, by beherebehind environment kindly. GODREJ POSITIONING STRATEGY: The tagline of Godrej is ‘Brighter Living’. Godrej says that the solely man cautiouser than our fridges is the Kulfi we stash in our freezers. After a opportunity sundry primitives : swivel, a dampness jog dial, freezer air-current contemplation – Godrej refrigerators keep not solely shining the criterion spell they keep as-well run section to section in the pursuit after a opportunity modernity. Godrej EON fridges are laborable in a army of showy colors to go after a opportunity decor and temper. There are polybag suspenders to suspend up veggies in fridge. So eternallyy day, they are hard to contrive the universe brighter attribute, after a opportunity their labors and as-well cautiouser. Therefore, goes after a opportunity their tagline brighter subsistence. MARKET NICHER (HAIER) STRATEGY: It is tendency worth specialist as Haier operates at the loftyest end of the trade. Haier’s management primarily concentrates on their stated efforts inlands interdiplomaticization. Sundry Chinese manufacturers who invadeed India worthd their emanations low by compromising on tendency, thinking that Indian consumers preferred to buy low worthd irrespective of their tendency. This gave Indian consumers the collision that anyman “made in China” would be low-priced and of scanty tendency, but Haier sever this Indian mentality by introducing lofty worth emanation for excellent recompense arorder solely, not compromising on the stipulations of tendency. HAIER MARKET SEGMENTATION: a)Geographic sectionation: Region: all metro cities and elegant areas. b) Demographic sectionation: Family size: 1-2, 3-4, 5+ Gender: hardy, effeminate. Income: 8,00,000Rs and aloft. Social arrange: excellent medium arrange, Excellent inferior arorder and excellent-excellent arrange. c) Psychographic sectionation: Lifestyle: refinement oriented ) Behavioral sectionation: Occasions: festivals and stated occasions. Benefits: labor, tendency oriented. Loyalty status: sinewy, independent. Readiness stage: unconscious, conscious, zealous, sound, intending to buy. HAIER TARGETING STRATEGY: Their targeting management is past customer-oriented. Haier subordinateneathstands the consumer insufficiencys meliorate and returns that in consumer aids. It is a representation of today’s puerile couple’s personalityphraseology which connotes expedite, phraseology and togetherness. It targets excellent recompense section by manufacturing wine cautiousers in the sociality. It is the niche section in the Indian sociality as the use of the wines in the Indian houses is very close. Solely few (very diminutive in calcuadvanced as compared to the trade) use the wines and thus Haier in the wine cautiouser section furnishs the insufficiency of the solely those customers that manufactures wine cautiousers (which are very few in the calculates after a opportunity a dissecticular uncommon claim) thus they are serving the niche section. Hence their targeting management is to target excellent recompense section. HAIER POSITIONING STRATEGY: Personality is very involving and unamazed it extends you new challenges. Haier has peeped into personality and after up after a opportunity ideas that contrive subsistence pleasant and gladdening. The deep infamy Idea was that Haier emanations are Orthodox by Life: this is now explicit as Orthodox Living. There is as-well another perspective on Orthodox Living. All Haier emanations are the end of air-tight thought-out objective deed patterns of abode arrangements, i. e. , orthodox by unamazed personality. For specimen, Haier was the primitive to expatiate a Ground Mounted Refrigerator in the state. It is based on a sincere recognition that refrigerator shelves are used far past regularly than the freezer rejection. So Haier has put the freezer at the ground and refrigerator racks at apt heights, so that you don’t keep to incline your end regularly. As a advanced entrant into the kind, Haier subordinateneathstands the consumer insufficiencys meliorate and returns that in consumer aids. This is how they transcribe the poseing propoundment: Haier is meliorate than all other infamys for facile adopters owing it extends them utilitys that succor them bring a meliorate personality as a end of our endeavour to subordinateneathstand personality meliorate and comaspect technology about it.