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Refrigerators

Refrigerators Industry
Market Analysis
Key Growth Drivers
Segmentation
Positioning
Strategic Branding
Product Market Analysis
Marketing Strategy

Sumant Kumar
IMBA 6th semester
CUJ/I/2012/MBA/34

REFRIGERATOR INDUSTRY

Major Players
LG, Samsung, Whirlpool, Godrej Haier and Videocone.
They command about 85 % of the total market share.
In 2012-13 more than 7.5 Million units Sold , which
accounts at around Rs 11,200 crores.

Godrej
Operates in diverse sectors such as real estate,
consumer products, industrial engineering, appliances,
furniture, security and agricultural products.
Stands third in the refrigerator market share
Facing huge competition from Global players like LG
and Samsung

MARKET ANALYSIS
Competitors Analysis
LG holds 30% of the market Share with most energy
saving models.
Samsung is bigger in capacity, lighter on pocket with
second most market share followed by Godrej.
Whirphool is the cheapest brand of all.
Haier

Customer Analysis
Customers are mainly from Lower segment of Socioeconomic classification.
Customers are first time users of the product.
Largely influenced by the Companys location and type of
organisation.
Customers show Dissonance buying behavior as there is
High purchase involvement and few differences between
Brands.

SWOT ANALYSIS
Strengths
1. Good Quality
2. Enhanced Features (radio mp3
player etc)
3. After sales Service & reverse
logistics framework.
4. Focus on a Specific region
(Consolidating positioning).

Opportunities
1. Improved Technology and
Widening Product portfolio
2. E-commerce (Direct Sales &
Support Service).
3. Manufacturing & Operations at
large scale.
4. Redesign, Improved Brand &
Quality Image.
5. Change in lifestyle and family
structure

Weaknesses
1.
2.
3.
4.
5.

Contract channel Involvement.


Limited Line Offering
High Operating Cost
Product Variety is less.
Brand Positioning.

Threat
1. Highly Competitive Industry
Dynamics (LG , Godrej,
Samsung etc )
2. Economics Instability.
3. High End products & Services
4. Financial Support & Instances
of false claims eroding value
& Customer trust.

KEY GROWTH DRIVERS

Consumer spending on refrigerator is increasing.


Change in demographics and lifestyle.
Shift towards higher value products.
Different strategy for rural market with more focus on
volume generation.
Share of sales from modern retail channels will grow as
FDI in retail licks in.
Industry will continue to remain price competitive.
Newer technologies will also lower per-unit cost.

SEGMENTATION
Demographic
Occupation, Income,
Family size & Gender

Psychographic
Social Class
Lifestyle

Behavioral
Purchase occasion, User
status & Attitude
towards the product or
service

Geographic
Rural
Semi Urban
Urban

POSITIONING
High Price

Brand

Low Price

Strategic Branding

Revitalizes Master Brand strategy and identity for


greater synergies across business and brand portfolio.
Outlines a new portfolio management strategy to
maximize the value of the Godrej brand and
associated businesses.
Godrej has been differentiated with its competitor in
the terms of
Product Differentiation:
Through its variants in product (Create your kitchen into a
dance floor)

Service differentiation:
Through Godrej Smart Care.

Image differentiation:
Ideas that make life brighter

PRODUCT MARKET ANALYSIS


MARKET
OLD

PRODU
CT

OLD

NEW

NEW

MARKETING STRATEGY
PRODUCT
Direct Cool
Frost free
Medical refrigerators

PRICE
Market penetration Strategy
Value for money

PLACE
Hub and spoke model
Godrej Ghar

PROMOTION

Online Advertising
Strategic Tie Ups
Television & Print Ads
Leverages brand name