Case study # 4 Marketing Microwave Ovens to a New Market Segment
Jan 20, 2016
Case study # 4
Marketing Microwave Ovens to a New Market
Segment
Group 6 Members
Ha Phuoc VuM997Z244
Nguyen Tran Thao BienM997Z213
Bui Duy DucM997Z202
Patlada Sae-Ching (Nan)M997Z240
Nuntanut Sae-Ching (Vee)M997Z236
Thai Luong ThuM997Z221
Outline Overview
Situation Market value White Appliances - Introduction
SWOT analysis Strategies
Target Market Strategy 4P’s in marketing Short-term and long-term strategies
Conclusion
OVERVIEW
• Situation
• Market value
• White Appliances - Introduction
Situation Before the liberalization of the Indian economy,
only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market.
Situation• Today, these players control the major share of the
consumer durables market. Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items.
Growth 2007 - 2008
MARKET VALUE
The Indian consumer electronics market grew by 7.6% in 2006 to reach a value of$3.8 billion. The compound annual growth rate of the market in the period 2002-2006 was 11.1%.
Table of India Consumer Electronics Market Value
White Appliances - Introduction
• We are White Appliances - an international company that manufactures and markets appliances globally.
• The company has a line of microwave ovens. We market several high-end models in India which are manufactured in US.
White Appliances - Introduction
• We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunity for businesses to grow.
• It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make White Appliances a trusted brand.
STRENGTHS
• High technology
• Product is simple to use
• Microwave oven is a convenient and efficient way to cook
• Use for a longtime
WEAKNESSES
• High cost expand for production
• The presence in the Indian market is limited at this time
W
WEAKNESSES (Cont’d)
• High cost for maintaining the microwave(for user)
• Not common in use in India (strange tools)
OPPORTUNITESMicrowave companies seeks a lot of opportunities that utilize their strengths of innovation changing customer’s demands and flavors has helped Microwave companies launch it product at a mass scale. Today most customers are looking for new and updated product is that provide maximum benefits at the same time.
So Microwave companies see an opportunity of its product’s being accepted at a considerable pace. The second opportunity Microwave companies is the huge population of the targeted country so the consumer base requiring such appliance is going to be large.
OPPORTUNITES
Moreover the countries economic condition and the industrial atmosphere is quite healthy which also enhances the opportunity for the company.
1. Changing customer needs / tastes
2. Huge population (1.3billion)
3. Economic condition and good industrial atmosphere.
OPPORTUNITES
THREATSMicrowave companies has threat from its competitors. More and more companies entering into the microwave oven field is increasing the competition level. Microware companies is facing such competition which has added in its threat.
Moreover one more threat Microwave companies is facing is the Socio Cultural Trends in the society.
1. Competitor
2. Socio Cultural Trends
THREATS
Competitors• White Appliances competes directly with several
international companies like Samsung, Whirlpool and LG Electronics India
• Microwave brands available in India LG Godreg Samsung IFB Whirlpool Onida Sanyo Haier Electrolux Videocon
Strategies
Target Market Strategy
4P’s in marketing
Short term & Long term strategy
Target Market Strategy
Microwave companies utilizes the latest high end technology to attract the customers. The women in the age group 22-45 who are looking for latest updated technology in kitchen appliances constitutes the main market target.
To reach them feature are added that are catching to these group of people. Although women are the main target group, Sony does not underestimate men either in their importance as they can also influence the housewives decisions and can also have interest in cooking.
Target Market Strategy
Product
• Tailoring product to suit with Indian market Size match with large Indian vessels Special cooking function for Indian food
• Ease of use The whole family can use it
• After sales service and call centers
• Saving energy product
Product
• Stylish design
• Using nutrition technology to retain vitamins and food’s vital nutrients
• Offer several models to fit with each Indian family (compact, medium capacity, large capacity)
• Health wave system for health benefits
Price
• Wide range of price High-end (premium) Medium price for middle income consumer Low price for rural consumer
• Manufacture product in India and reduce import content to cut cost
Place
• Focus on the top 16 Indian cities to promote through new retailing activities.
• Urban Market Electronic specialty store, Malls and
Department Stores Give a brand shelf space
• Rural Market Direct selling
Promotion
• Discount at festival time• Product placement • Advertising in cuisine books, magazines and
TV programs• Organizing Indian food cooking classes by
using our product• Offering Indian menu recipe books to customer• Installment Sale• Trade show booth to spread brand awareness
Short term & Long term strategy
• Short term strategy Penetrate rural market Maintain urban market
Short term & Long term strategy (cont’d)
• Long term strategy Continue to launch Microwave Oven with new
features Introduce new innovation products
Conclusion
The change in consumer habits create new opportunities
Pricing policy is one of the important factors
The development of technology is the key to success for the market seems difficult
Style, size and product enhancements designed to suit each market segment
Conclusion
The change in consumer habits create new opportunities
The new recipes has changed somewhat the habit of using
microwave Indians.
“To change the way you look, just change the way you cook”
was a recent tagline by one of the companies
What really drives the growth of this product will be a change
in eating habits
Pricing policy is one of the important factors
Conclusion
There is some difference of opinion on the righ price for the
ovens.
Microwave companies face a chicken-and-egg question on
price and sales.
Pricing policy is one of the important factors (cont’d)
Conclusion
Prices will not come down easily until volumes go up, while
volumes depend on prices
The price of the microwave is different. Each company has
a different pricing policy. Additionally, the support function is also
one of the factors which decide the price
The development of technology is the key to success for the market seems difficult
Conclusion
Though the concept of microwave ovens is western, the fact
Is that microwave technology to day has advanced to a level
wherein even complex cooking like Indian cooking is very much
possible.
The development of technology is the key to success for the market seems difficult (cont’d)
Conclusion
Microwave is now described as a multi-function device rather
than a warming device (a substitute to the Oven Toaster
and Grill).
Conclusion
Style, size and product enhancements designed to suit each market segment
Q & A