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OF

(MARKETING PLAN FOR KELVINATOR TV “THE VISUAL”) TAG LINE;- BROWSE THE BEST, SEE THE BEST

Sub: Marketing Management Submitted to: Miss.Kanika Jhamb Submitted by; Mohammad Abbas Roll No. RS-1904A24 10906034

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Acknowledgements I am thankful to Miss.Kanika Jhamb for providing me the task of preparing the Term Paper on the marketing plan of Kelvinator Television. We at Lovely believe in taking challenges and the term paper provided me the opportunity to tackle a practical challenge in the subject of marketing. This term paper tested my patience at every step of preparation but the courage provided by my teachers helped me to swim against the tide and move against the wind. I am also thankful to my friends and parents for providing me help at every step of preparation of the Term Paper.

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Introduction about the company

KELVINATOR

“The coolest one “Kelvinator is an appliance

company owned by Electrolux of Sweden. Since 1986.It takes its name from William Thomas, 1st Baron Kelvin who developed the concept of absolute zero and for whom Kelvin temperature scale is named. The name was thought suitable for the company appliances. which manufactures ice-boxes and domestic

HISTORY;Kelvinator was founded in 1914 in detrait, Michigan by engineer Nathaniel B.Wales who introduced his idea for a practical electric refrigeration unit for the home to Edmund Copeland and Arnold Goss.

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Wales, a young inventor, secured financial backing from Arnold Goss, then secretary of the Buick Automobile company, to develop the first household mechanical refrigerators to be marketed under the name "Electro-Automatic Refrigerating Company”. In 1916, the name of the company was changed to "Kelvinator Company" in honor of British physicist, Lord Kelvin, the discoverer of "absolute zero". Kelvinator was among some two dozen home refrigerators introduced to the U.S. market in 1916. In 1918 Kelvinator introduced the first refrigerator with any type of automatic control. By 1923, the Kelvinator Company held 80 percent of the market for electric refrigerators. In 1926, the company acquired Leonard, which had been founded in 1881. In 1928, George W. Mason assumed control of Kelvinator. Under his leadership the company lowered its costs while increasing market share through 1936.

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1937, the company merged with Nash Motors to form NashKelvinator Corporation as part of a deal that placed Mason at the helm of the combined company. In 1952, it acquired the Altorfer Bros. Company, which made home laundry equipment under the ABC brand name. In 1954 Nash-Kelvinator became a division of American

Motors (AMC) when Nash merged with Hudson. Kelvinator introduced the first auto-defrost model side-by-side refrigerator in the early 1950s. In the 1960s, Kelvinator refrigerators introduced "picture frame" doors on some models allowing owners to decorate their appliance to match décor of their kitchens. Under the leadership of Roy D. Chapin Jr. AMC sold off its Kelvinator operations in 1968. In the early 1990s, the name of the Dublin, Ohio based holding company changed to Frigidaire Company. In 1986, Frigidaire Corporation was acquired by Electrolux and Carrier

Corporation acquired Kelvinator.

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Electrolux Kelvinator is a global leader in home appliances. It also manufactures appliances for professional use. Its products include refrigerators, vacuum cleaners, dishwashers, washing machines and cookers. Kelvinator’s esteemed brands are Electrolux, Eureka, AEG-Electrolux and Frigidaire. It also sells professional products like industrial kitchens, restaurants and laundries. The Group’s products are sold in more than 150 markets. Its products are found in the largest markets in Europe and North America. Electrolux Kelvinator started about 90 years ago when Axel Wenner-Gren spotted a vacuum cleaner in a shop window in Vienna, Austria and realized that these should be in every home. Thereby, the Lux 1 - the first vacuum cleaner and then the absorption refrigerator was created. In 1910 Electrolux was incorporated as

Elektromekaniska AB which merged with Swedish AB Lux in 1919. Electrolux manufactured the modern canister-type

vacuum cleaner and the absorption refrigerator during the early 20th century. In 1928, Electrolux was introduced on the London Stock Exchange. Then it comprised of five plants with almost twenty subsidiaries and 250 offices all over the world. In 1930,

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Electrolux was listed on the Stockholm Stock Exchange. Later in 1933 Vacuum cleaner production began in Old Greenwich, Connecticut, and USA. In this year the first air-cooled

refrigerator was produced. In 2000, Electrolux AB re-acquired the trademark and company name "Electrolux" and around the year 2003-04 the consolidation of brands accelerated.

BUSINESS MISSION:The aim to fuel growth by making Kelvinator the leading brand in television segment .Vision further positions Kelvinator as a market driven, people centric company with a strategy and a structure that fully reflect the needs of its customer base while also increasing shareholder value. And the company’ vision is to plan to offer the customer the world’s most technologically advanced products and to become the leading consumer durable brands in the country. To delight and deliver beyond expectations through ingenious strategy implied enterprenuership, impared technology,

innovative products, insightful marketing and inspired thinking about the future. THROUGH INGENIOUS STRATEGY;

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Only by taking recourse to advance planning and strategy that a business can hope to survive. PRODUCT DEVELOPMENT; Product development innovations and customizations are the tools Kelvinator uses to stay ahead of the competitors. INSIGHTFUL MARKETING: The market share depends a lot on the psyche of the customer. This means that those with deeper insights into the elusive mind of the buyer are likely to dominate. We will launch it in the metro cities in our first stage and then after being successful in these cities we will launch it in small cities and tier-II cities.

INSIGHTFUL THINKING ABOUT THE FUTURE:The future is unpredictable but not doing anything about it is the foolishness. Kelvinator extrapolates future trends on the basis of current changes in technology and preferences.

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We will upgrade the technology of our TV time to time according to the market trends MARKETING OBJECTIVE:The marketing objective is to strengthen the positioning of Kelvinator and with this television segment to grow from 5 percent to 15 percent. The main objective is to file survey during the project to find out the market share of the Kelvinator and to find out the potential dealer and development of these dealers. The objective was to find out that what are the parameters product. To enhance the knowledge about marketing and branding activity. To increase the knowledge of the customer about the product. We will positions our TV in the minds of the customers as the technology advanced and we will also considered the designing and packaging of our TV. which affect the customer while purchasing

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SITUATION ANALYSIS: INDUSTRY ANALYSIS:MARKET TRENDS;In the current situation the television is not now an only source of entertainment as the new and better source of

entertainment has come up in the market. With the advent of the I-phone the television manufactures are facing the tough time as now the person with I-phone will have a handy communication box rather than the bulky televisions. But here one thing is worth remembrance that the television market in India is still unexploited as nearly half of the population still has no color television sets. It is still a source of communication for the lower and middle class families. For a high income class group the television has attained the position of the ornamental stuff in the drawing room. So, the television industry has to change fast with the changing needs and utilities of the product for the customers. Kelvinator television has to be cute to fit the drawing room and good to fit the pockets of the middle class customers. The Kelvinator will

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have value set and the high definition and ambilite series is to suffice the needs of the ornamental value. The Indian Television industry is going through turbulent transformation. Companies are relooking at their strategies and are desperate for growth. The entrenched position of the Indian market leaders in CTVs’ like Videocon, BPL and Onida has been challenged by the MNCs such as LG, AIWA, Akai, Panasonic, Samsung, Sony, Philips and Sharp; some in a perceptible way and others threatening to do so. The changing environment demands fresh thinking to gain the cutting edge advantage. We will look at the various macro and micro environmental factors operating in the industry using the model of strategic analysis i.e. to analyse the bargaining power of buyers and suppliers, the threat of new entrants, threat of substitutes, intensity of rivalry, impact of technological changes, growth and volatility of the market and the influence of government and regulatory interventions. These variables affecting the industry have been categorised as favourable or adverse depending on the influence on the profitability of the industry. Some strategic initiatives, which

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can be adopted, to leverage the favourable forces and prevent the adverse ones have been identified. In the last five years colour television industry (CTV) has witnessed drastic changes in the intensity of competition. Exchange schemes, free gifts, price offs, prizes, deferred payment schemes and other incentives as promotional tools have been deployed by the players, which certainly have made the market, vibrant and pulsating. A major factor contributing to the growth has been availability of consumer financing schemes. Concomitantly, the industry has been witnessing a new scenario with a new market profile. The entrenched position of the Indian market leaders in CTVs’ like Videocon, BPL and Onida has been challenged by MNCs such as LG, Samsung, Sony, Philips, AIWA, Akai, Panasonic, Sansui and Sharp; some in a perceptible way, others threatening to do so. The industry is going through turbulent transformation.

Companies are relooking at their strategies and are desperate for growth. This paper attempts to analyse the various macro and micro environmental factors operating in the industry to provide a basis for devising strategy.

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PORTER FIVE FORCES MODEL;-

DEGREE OF RIVALRY :-( very high) Degree of rivalry means the intensity of competition within the industry .LG is now the market leader with 26% market share which is followed by Onida and Samsung. India is one of the biggest markets for LG; therefore its strategies are much more aggressive to ensure growth. But Samsung is much successful than LG globally that’s why the strategies of Samsung is not much aggressive in India as compared to LG. On the other hand Videocon another major player has managed to hold its own in the middle of both these companies. Sony, Philips, Akai, Sansui,

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Aiwa, Toshiba and now Hyundai are the other foreign brands in the market.

THREAT OF NEW ENTRANT (Low) Threat of new entrant can be determined by the factor that how easily a entrant can enter into the market. And also by the entry barriers, which act to prevent new players to enter into the market .In a situation where a new entrant can easily enter into the market makes difficult for the existing producers and also affect the profit of that company. When profit increase, additional firms will enter the market to take advantage of the high profits levels. We will continuously analyze the market that there is new entrant which is entering into the market and give a fair competition. So to avoid this competition we will upgrade the technology and also our prices according to the technology upgraded.

THREAT OF SUBSTITUTE (Low)

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Substitute products refer to products in other industries. Internet is the substitute of TV. So the industry has responded to the future threat by introducing a TV that can also provide functions of internet along with regular features. We will also give some facility in our product to use internet and the consumers can browse internet through our product.

BUYER POWER :-( Very high) Buyer power influences the prices that a firm can charge. The TV market can be broadly segmented as up graders who want to upgrade their black and white TV to colour TV. The first time buyers who want to purchase colour TV for the first time. And multiple set purchasers who are purchasing more than one set because of the big family size. Lastly comes the replacement purchasers. SUPPLIER POWER :- ( Low) Supplier’s bargaining power influences the cost and quantity of input material. Higher supplier power raises the input cost, thereby reducing the profit of the industry.

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COMPETITORS;A detailed analysis of some of the major Players are done below: LG ELECTRONICS LG Electronics rightly understood the consumer motivations to create magnetic products, price them strategically, position them sharply and keep making the magnetism more potent. Having the finer differences in consumer motivations, it for sharp-arrow ‘reasons-to-buy’ differentiation over the ‘blanketall approach’ taken by most of the other players. It is an Aggressive marketer. It focuses on low and medium price products. SAMSUNG Initially the strategy of Samsung in India was to create premium image by emphasising global brand. After facing stiff competition from another Korean major- LG, Samsung also started playing price game. In 2004 it reverted back to its premium positioning, although it resulted in some loss of market share. In line with the Global Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital leadership in India by introducing its digital ready televisions

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like the 40" LCD Projection TV, 43" Projection TV and the Plano series of Flat Colour televisions. ONIDA (MIRC ELECTRONICS) Its popular devil ad although had engendered a strong emotional pull towards the brand, technologically it

represented no advancement. The company plugged the gap by touting its digital technology. Like Videocon, it has also been able to hold its market share. The world-class quality of Onida has enabled the company to make a breakthrough on the export front. Onida is a leading brand in Gulf market and also exports its models to Africa, Bangladesh, Sri Lanka and Nepal. It has technical tie-up with the Japan Victor Company, better known as JVC. So focused is Onida on positioning itself on the premium, high-tech plank that it is even planning to push its own envelope on obsolescence, much like Intel has been doing in its own industry. The strategy is aimed at further broad basing the product offering of the company, which has largely dominated the top-end of the television market, across multiple market segments. Besides understanding the strategy adopted by different players, several other factors- industry growth, concentration and balance, corporate stakes, fixed cost, and

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product differences need to be analysed to determine the extent of rivalry between the existing players.

VIDEOCON Videocon has always been a price player has an image of a low price brand. This entails providing more features at a given price vis-à-vis competitors. It has taken over multinational brands to cater to unserved segments, like Sansui- to flank the flagship brand Videocon in the low to mid priced segment, essentially to fight against brands like BPL, Philips, and Onida and taken over Akai- tail end brand for brands like Aiwa. Videocon is one of the largest manufacturers of television and its components in India and thus has advantages of economies of scale and low cost due to indigenisation. It has the widest distribution network in India with more than 5000 dealers in the major cities. It also has a strong base in the semi-urban and rural markets. Due to its multi-brand strategy, it has at present multiple brands at the same price

COMPANYPROFILE:Focused on providing value, Electrolux current ergonomically

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superior and technologically advanced products range in India includes refrigerators, washing machines, microwaves and Air conditioners. Committed to enriching the life of the Indian consumers, it is the only company in India producing products using the Life Nourishing System technology. Based on consumer insight and cutting edge technology, these life-nourishing products have been developed matching customer changing needs and desires.

With the consumer foresight and the understanding of the emerging customers needs, Electrolux is constantly developing innovating products to satisfy their expectations in terms of technology, aesthetics, design and functionality. The R&D facility at Shahjanpur is aimed at developing environment friendly and intelligent products, keeping in focus both the current and future customers.

Evidence of its marketing ingenious, its Ozone brand of refrigerator is today ranked as the fastest growing refrigerator brand in the country in the no-frost category. Company also

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launched Bijlee - World’s first fridge that runs even without electricity, Tamanna - World’s first fridge with FM radio and message recorder, Oxyaquaswing refrigerator - India’s first Hands-Free technology. Refrigerator with water-through-the-door

Not only this. Electrolux also launched World’s first talking washing machine, the Washy Talky, which is the winner of Ripley’s Believe it or Not and is also featured in “Limca book of Records”. It is now available in three regional languages, besides the existing English-speaking model. These three are Hindi, Kannada and Tamil.

Electrolux products in India are manufactured and distributed by Videocon Ltd. The Electrolux Group specifies the product range, design, quality and brand communications so that it conforms to the global standards of Electrolux.

Electrolux products in India are manufactured and distributed by EKL Appliances Ltd. The Electrolux Group specifies the

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product range, design, quality and brand communications so that it conforms to the global standards of Electrolux.

TECHNOLOGY:The manufacturing of electronic items relate mainly to

assembly line operations. Since this is a technology driven industry, companies need to constantly improvise, innovate and customise their products. Coloured cabinets, headphones, 3-D 360 degree sound technology, plasma TV and golden eye technology are just a few examples. Till now, TV makers have played with one or more of the three elements of a TV picture, sound, and features- on an analog signal. So one had a sharper picture with kelvinator’ Power chip , flatter screens in plasma TV, increased channels in hyper band, programme summary on screen, cordless headphones, top dome speakers and Nicam stereo sound inputs. Digital gives marketers a fresh platform to play with all of these features. The promotion strategies and product features of a majority of the players have emphasised more and more on the latest technology factors. All the players whether domestic or multinational are introducing

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technologically advanced and feature rich products. Salora International launched high-end televisions under brand name “Promax” which had 250-programme memory, 250 personal preference channels and a video lock to block undesirable content. Sony (Wega series) enjoys good brand equity, mainly because of its Trinitron picture tube. Samsung flat TV models are equipped with the 100 Hz scan, which reduces flickering of the screen and visibility of scanning lines. These are also equipped with game mode, a child lock and a sleep timer. LG Flatron models have features like PIP-2 tuner and woofer with 350 watts and 3 graphic games. Another model that the company is launching has swing speakers, advanced multi window PIP, a digital virtual Dolby, a PC and teletext. BPL has also launched flat TV models under sub brand name “matrix” which have all the features that come with systems of this range. Philips India has launched 29 inch TV incorporating its pioneering digital natural motion technology and priced it higher than industry levels following the strategy of low market share but high revenues. Hence the market players are investing in R&d and improving technology on a constant basis to offer innovative products. In the fiscal 2004-05, the market

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for high-end televisions witnessed a phenomenal growth over 2003-04, though the market base still remains very small. The market for projection TVs is estimated at 13, 500 units followed by plasma TVs and LCD TVs at 6, 700 and 2, 850 units respectively. The projection TV market is highly competitive. At present, Sony leads the projection TV segment with sales of 4,000 units in 2004-05. LG occupies the second position with sales of 3000 units. Samsung and Philips closely follow with sales of 2,500 and 2,200 units respectively. Onida and Toshiba are then other major players in this segment. LG is the leader in plasma TV segment with a market share of 30 per cent, followed by Samsung at 22 per cent. LG and Samsung have been engaged in competition for numero Uno position for LCD TV, which has also been growing significantly. For the next few years, the markets for high-end televisions will continue to grow phenomenally and it is estimated that by the end of 2007 the market for high-end TVs would cross 100,000 units milestone.

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SWOT Analysis:-

Strengths

1. Promoter pedigree - The Company is a subsidiary of AB Electrolux, Sweden, one of the world’s leading producers of household appliances and products for professional use. 2. Ongoing technical collaboration agreement with AB

Electrolux, Sweden enabling the Company to have access to technological Advances, technical and management expertise of Electrolux group. 3. The products of the Company are being marketed under international brand like ‘Electrolux’. 4. A widespread network of distributors/ direct dealers and a large loyal network of retailers spread across the country. 5. A wide range of international quality refrigerators, covering all applicable price points in the market. Weakness

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1. The Company is making losses and the accumulated losses of the Company as on September 30, 2003 stood at Rs. 48,369 Lakh as per audited results and as at January 31, 2004 stood at Rs. 61,502 Lakh (unaudited results). 2. Weak performance in home appliance categories apart from refrigerators. 3. Poor distribution network in washing machines category. 4. Declining market share – from 20% (Apr-Dec’ 02) to 16.1% (Jan-Sept’03) in the refrigerators segment. Opportunities 1. ABE global experience in new product development. 2. The growing middle class and increasing consumer

disposable income. 3. Possibility of leveraging refrigerator distribution network for other categories. Threats 1. Faces competition from other established players in the market. 2. Entry of cheap imports. 3. Pressure on margins due to intense competition.

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MARKETING MIX:Marketing mix is a major concept in modern marketing and involves practically everything that a marketing company can use to influence consumer perception favorably towards its product or service so that consumer and organizational objectives are attained i.e. Marketing mix is a Model of crafting and implementing strategy.

Marketing mix variables are –
i.

Product Price Place (Distribution ) Promotion

ii.

iii.

iv.

PRODUCT:-

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NAME OF THE PRODUCT:We are launching the television which name is “THE VISUAL”. The first market mix element is product. A product is everything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a need or want. Product decision normally base on brand name, Functionality, Styling, Quality, Safety, Packaging, Repairs and Support, Warranty, accessories and Services. These product attributes can be manipulated depending on what the target market wants. Also, customers always look for new and improved things, which are why marketers should improve existing products, develop new ones, and discontinue old ones that are no longer needed or wanted by the customer.

PROMOTION:Promotion is a key element of marketing program and is concerned with Effectively and efficiently communicating the decisions of marketing strategy, to favourably influence target customers’

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perceptions to facilitate exchange between the marketer and the customer that may satisfy the objective of both customer and the company. A company’s promotional efforts are the only controllable means to create awareness among publics about itself, the products and services it offers, their features and influence their attitudes favourably. Kelvinator will spend Rs.20 lakh in the promotion and advertising because we cannot spend much time in the promotion of the product because Kelvinator brand is now facing the hard time in the market. And good businessmen always assume 80 % loss in the starting of the new business and always assume 20% profit.

ADVERTISING:Advertising is any form of non-personal mass communication through various media to present and promote product, service and ideas etc. by an identical sponsor. We will advertise our products through many different ways and media. Through TV

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we will broadcast different advertisements of our product. We will also advertise our products by targeting those favorable TV programs like sports, series and also in theatre while running the movie. Through Times of India Kelvinator will advertise product it offer to its customer. And also through poster a message will be sent to a lot of people to be aware of the product which Kelvinator offers.

SALES PROMOTION:Sales promotion is a marketing discipline that utilizes a variety of incentives techniques to structure sales – related programs targeted to customers, trade, and/or sales levels that generate a specific, measurable action or response for a product or service. Sales promotions for example includes free samples, discount, rebates, coupons, contents and sweepstakes, premiums,

scratch cards, exchange offers, early bird prizes, etc.

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We

will

promote

our

product

through

different

sales

promotional strategies. For example after the release of the sony Bravia TV sets, sony promoted them by earl bid prizes by saying that all Bravia full HD LCD TVs purchased during July 2008 and registered within two weeks of purchases qualify for a bonus Play station 3 as long as the customer claims is one of the first 35000 received and validated by Sony.

Public Relations and Publicity Public relations is a broad set of communication activities employed to create and maintain favourable relationship with employees, shareholders, 17 suppliers, media, educators, potential investors, financial institutions, government agencies and officials and society in general. Through our website, we will provide contacts for those customers who will be in need of any information from the company. In this way Kelvinator will create a mutual

relationship with the customer and ensure that it serves the wishes and demands of its customer.

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PLACE (DISTRIBUTION):Decisions with respect to distribution channel focus on making the product available in adequate quantities at places where customers are normally expected to shop for them to satisfy their needs. Depending on the nature of the product, marketing management decides to put into place an exclusive, selective or intensive network of distribution, while selecting the appropriate dealers or wholesalers. Kelvinator will practise selective distribution channel of its product from the selective dealers because the company positions itself as a seller of durable and high end products. Kelvinator will distribute its product in various channels. It will use Zero level channel, one level and two level channels.

Manufacture --------Retailer-------Customer

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Through the internet, Kelvinator will help its customer to find the nearest retail shop where they can buy the Kelvinator product.

PRICE:Pricing decisions are almost always made in consultation with marketing management. Price is the only marketing mix variable that can be altered quickly. Price variables such as dealer price, retail price, discounts, allowances, credit terms etc. influence the development of marketing strategy, as price is a major factor that influences the assessment of value obtained by customers. Customer directly relate price to quality, particularly in case of products that are ego intensive of technology based. Kelvinator being a company which emphasizes product quality. It tends to sell its products with price range from moderately high to high price, depending on the use and the targeted customer. Our product‘s price will be 15000 because we are providing the best technology available in the market. And we are targeting the higher class. Implementation of the marketing plan and control:

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The last step is the implementation of the marketing plan. The implementation will include the controls and modifications necessary for the programme to be effective. For the marketing plan of the Philips television to be successful following steps and controls will be required:

1) regular analysis of sales. 2) Regular analysis of the sales. 3) Regular check on the expenses. 4) Regular customer feedback. 5) Regular analysis of the competitor policies. Marketing organization will include the chief marketing officer and the marketing managers. The marketing executives and the sales persons will implement the strategies in the field. The focus will always be on the customer welfare so their membership will be necessary for the success of the marketing plan. Conclusion and Contingency planning: The contingency planning will include:

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1) Regular seasonal offers and bumper offers when the sales are down. 2) Reduction in the cost spends on the expenses and the improvement in the working capital. 3) Tie up with the DTH service providers that will help the sales to pick up. 4) Every time scope for change and customerization. Thus, marketing plan will have all the effective checks and controls to increase the success of the marketing plan.
REFERENCES;-

http://en.wikipedia.org/wiki/Kelvinator#cite_note-modern-2 http://www.ximb.ac.in/ximb_journal/Publications/Article-1213.pdf www.scribd.com/doc/6037365 www.scribd.com › Research › Business & Economics

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www.deloitte.com/assets/Dcom.../dtt_tmt_BePrepared_0105200 6 (4).pdf www.cs.cmu.edu/afs/cs/user/lsl/Nice/UrduMT/code/.../merged.hist

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