Marketing and Refrigerators

Only available on StudyMode
  • Download(s) : 1186
  • Published : November 25, 2010
Open Document
Text Preview
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 market in India
Refrigerators have been manufactured in India since 1950s. Till the 1980s players like Godrej , Kelvinator , Allwyn & Voltas controlled almost 90% of the market. Earlier the white goods sector was categorized as a luxury goods industry and was subject to oppressive taxation & licensing. The situation changed after the liberalization of the Indian economy in the early 1990s. The government removed all restrictions and now there is no restriction on foreign investments and licences are no longer required.Post-liberalization , a number of foreign companies entered the market and many domestic players also diversified into refrigerators. BPL & VIDEOCON who already had a presence in the consumer electronics market leveraged their strengths to enter the durables sector. The refrigerator, today, quite simply is an indispensable item of everyday use. The refrigerator market has registered almost 40% growth over the last 4 years – from 3.3million units in 2004/05 to 4.5 million units in 2008/09. With growing disposable incomes and a low penetration level for the category (34% even in urban India), the market is set to explode in the coming five years. The present scenario in India is that refrigerators have the most aspirational value after televisions. This shows that the growth rate of refrigerator is high. Today refrigerators are being manufactured in two basic designs which are:

a) Direct Cool Refrigerator
b) Frost Free Refrigerator

In these two designs of refrigerators, the direct cool design market is much more than the expensive frost-free models. Although the growth is marginal in the direct cool models, the major factor for its growth is the availability of low priced models. Indian refrigerator market is valued at Rs 4000 crore. Refrigerators hold only 16% of consumer durable market that is valued at around Rs. 20,000-25,000 crore in India. Its market is growing at the rate of 7-8% annually.

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 analysis for Indian Refrigerator Industry
Strengths:
1. Presence of established distribution networks in both urban and rural areas 2. Presence of well-known brands
3. In recent years, organized sector has increased its share in the market vis a vis the unorganized sector. Weaknesses
1. Demand is seasonal and is high during festive seasonal
2. Demand is dependent on good monsoons
3. Poor government spending on infrastructure
4. Low purchasing power of consumers

Opportunities :
1. In India, the penetration level of white goods is lower as compared to other 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
Threats:
1. Higher import duties on raw materials imposed in the Budget 2007-08 2. Cheap imports from Singapore, China and other Asian countries...
tracking img