EXECUTIVE SUMMARY

Refrigerators are house hold common appliances used commonly for storing perishable goods such as vegetables and for having chilled water. Currently major players in Industry are LG, Samsung, Godrej, Videocon, Whirlpool and Panasonic. LG is the market leader in the refrigerator segment followed by challenger Samsung. Panasonic sells products to a niche segment which require freezer as lower compartment. The major objective is to device a marketing strategy with clear defining the customer segments and price points for the same. Segmentation of rural and urban population is done based on the behavioral and demographics aspects of Indian customers. They are clearly classified into a total of nine segments with 5 urban and 4 rural. The attributes which each segment looks for is clearly identified and products are positioned accordingly. We can make the product offering to each targeted segment as identified. The majorly populated segments U2,U3 and R2 are most profitable as per the present trend increasing number of middle class people in India. As most of the product offering from all the players in the market our strategy is to make service as a differentiator. LG & Samsung take service as a cost model where as Godrej and Whirlpool operates it as revenue model. More funds are to be invested in service department to enhance it to next level and provide ace service to customers. Close monitoring of service parameters like first visit time, close visit time and days pending will enhance the customer satisfaction.

Segmentation of Indian Market Market: Urban Segmentation:

U1 U2 U3 U4 U5

Top 10% of urban population Self actualisation needs Foriegn life style and luxury brands High Per capita Income

High level of education or occupation Upper Middle class High in population and geographically spread High disposable income Self-Esteem needs Modest Education and usually shop owners These are core customers Price sensitive & Low disposable income Social needs

Not finshed schooling Self employed or blue collar workers Safety needs

Below poverty line Pyschological needs

Rural Segmentation:

R1 R2 R3 R4

High income house holds Old people with children doing job in urban areas Have hedonic needs

Employees of Medium scale indutries Medium disposable income Nuclear Family Safety needs

Farmers with good yield Self employed rural population Pyschological needs

Daily wage workers Farmers working on contract basis Pyschological needs

TARGETING & POSITIONING:

Segment

Price Concern

Aesthetic preference High

Power consumption Yes

Environment Concerns Yes

After Sales service Require ACE service Want to be treated as premium customer Not a criteria Not a criteria Not bothered Yes Not bothered Not bothered Not bothered

U1

No

U2

15000-25000

High

Yes

Yes

U3 U4 U5 R1 R2 R3 R4

10000-18000 10000-14000 5000-8000 12000-22000 10000-15000 12000-20000 5000-10000

Medium High Low High High High Low

Yes No No Yes No Yes No

No No No No No No No

Capacity requirement depends on the number of households.

KEY TO SUCCESS: SERVICE AS DIFFERENTIATOR

Recommendations: Dealer level: o Immediate service to dealers damaged and defective stock helps him to improve his cash-to-cash cycle. It motivates him to purchase and promote your product. o Joint visits to counters by sales and service personnel will give confidence to both dealers and employees. It solves the pending issues and differences at all levels. o Replacing highly damaged stock which cannot be made saleable will gain dealers confidence. Customer level: o Providing ACE service response to all the U1 & U2 customers will attract these segments as they give major importance to product as well as service. o LGs 4-1-1 concept of service and Godrejs ACE call service are some initiatives which made differentiation. o Replacing/Exchanging the machine with calls pending more than 15 days will improve brand image