Marketing Strategy for Indian Refrigerator Players

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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
Segmentation of Indian Market:
Urban Segmentation:

U1

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

U2

• High level of education or occupation
• Upper Middle class
• High in population and geographically spread
• High disposable income
• Self-Esteem needs

U3

• Modest Education and usually shop owners
• These are core customers
• Price sensitive & Low disposable income
• Social needs

U4
U5

• Not finshed schooling
• Self employed or blue collar workers
• Safety needs

• Below poverty line
• Pyschological needs

Rural Segmentation:

R1

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

R2

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

R3
R4

TARGETING & POSITIONING:

• Farmers with good yield
• Self employed rural population
• Pyschological needs

• Daily wage workers
• Farmers working on contract basis
• Pyschological needs

Segment

Price Concern

Aesthetic
preference

Power
consumption

Environment
Concerns

After Sales
service

U1

No

High

Yes

Yes

Require ACE
service

U2

15000-25000

High

Yes

Yes

Want to be
treated as
premium
customer

U3

10000-18000

Medium

Yes

No

Not a criteria

U4

10000-14000

High

No

No

Not a criteria

U5

5000-8000

Low

No

No

Not bothered

R1

12000-22000

High

Yes

No

Yes

R2

10000-15000

High

No

No

Not bothered

R3

12000-20000

High

Yes

No

Not bothered

R4

5000-10000

Low

No

No

Not bothered



Capacity requirement depends on the number of households.

KEY TO SUCCESS: SERVICE AS DIFFERENTIATOR

Recommendations:


Dealer level:
o Immediate service to dealer’s 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 &...
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