Godrej Swot

Topics: Brand, Marketing, Brand management Pages: 7 (1418 words) Published: August 27, 2009
Godrej - Corporate Profile

Godrej is today one of the largest engineering and consumer products company in the country having varied interests from engineering to personal care products.


Established in 1897 by Ardeshir Godrej Started with lock-making.Then went on to make safes and security equipment of the highest order, and then stunned the world by creating toilet soap from vegetable oil.

Role of Dealers

Organizations that manufacture ACs are increasingly interested in retaining existing dealers, getting new dealers and increasing their sales through these dealers

SSDa, in case of products like ACs become important as dealers promote the product at the point of purchase.

Dealer satisfaction is an an abstract concept and the actual manifestation of the state of satisfaction will vary from dealer to dealer.

The state of satisfaction depends on a number of factors which correlate with satisfaction such as profit margins, credit and non-financial discounts.

An organisation with a strong dealer network can increase its sales and gain a name for itself as a brand in the market.

The project and fieldwork included the survey of the dealers of Godrej which also deal in other brands like LG, Samsung, Hitachi, Videocon, Voltas and then analyzing what kind of their customers are, their sales, the customer’s budget, percentage sales of split and window ACs.

Objectives of Research

To study the performance of Godrej AC sales through dealer outlets in Mumbai.

To study the factors that are important to increase sales of Godrej ACs through dealer outlets in Mumbai.

To study the sales of various brands of ACs through dealer outlets in Mumbai.

To find the best medium of promotion for ACs.

To find the effect of special schemes provided by a company to the dealer.

To determine position of Godrej as a brand as compared to its competitors- LG, Onida, Voltas, Videocon and Samsung.

Industry overview

The size of the air-conditioner industry in India is about Rs 2,000 crore.

The industry can be sub-divided into non-ducted and ducted products.

The demand for non-ducted products -- window air-conditioners and mini-splits -- comes from both households and corporate.

The demand for ducted products -- central plants, packaged air-conditioners and ducted splits -- is only from the corporate.

Industry Trends

Perception of an AC as an expensive luxury product but that's no longer true

The AC has moved from its luxury status to a necessity item just like any washing machine or refrigerator

Air conditioner companies see India as a potential gold mine as it offers a winning combination of rising disposable incomes and AC ownership levels of just 3 percent of households.

Average prices for air conditioners in India have dropped by about 20 percent over the past two years thanks to new companies entering the fray, making them more accessible to consumers. 

With average incomes rising, AC penetration to follow the same trajectory as colour TV ownership which is pegged at 24 percent of all households and whose sales have also been spurred by falling prices.

Indians bought 6.2 million colour TVs on an average every year from the year 2001 to 2007.

The Indian middle-class, estimated at between 60-80 million people, is the main target for air conditioner companies. AC sales grew 8.0-10.0% percent in 2007.

Industry Trends

The dismal supply of power where outages, lasting hours, are a part of life in large swathes of India, could still throw a spanner into the bullish hopes of AC companies.

The big problem is the quality of power supply and the cost of running an AC running costs are upwards of three rupees an hour depending upon electricity tariffs.

Also hurting growth is the unofficial "grey" market that accounts for close to 15 percent of the sales. But that is down from 70 percent a decade ago, as competition among established players and growing...
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