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Marketing Stratergies of Godrej and Whirlpool.
Prof: S.K KUMAR
Name of the Students:
V.G. ARUN PRAKASH & PRAJESH.R
Date of Submission:
APRIL, 5, 2010
TABLE OF CONTENT
Table of Content
Product mix of godrej and whirlpool
Marketing mix of godrej and whirlpool
Marketing Mix Which we like most
INTRODUCTION: Current Scenario of Indian Electronic Industry: In recent years the electronic industry is growing at a brisk pace. It is currently worth $10 Billion but according to estimates, has the potential to reach $ 40 billion by 2010. The largest segment is the consumer electronics segment. While is largest export segment is of components. Now, Electronics in India constitutes 0.7% of the global electronic industry. Introduction to Whirlpool & Godrej: Whirlpool is the world¶s no.1 manufacturer and marketer of home appliances which has set industry milestones and bench marks. In India it started its operation in 1980¶s with a joint venture with TVS group. Its headquarters is at Michigan in USA with a global presence over 170 countries and manufacturing operation in 13 countries and with 11 major brand names. In India, whirlpool holds a market share of 25%. Its annual turnover in the year ending March 2009 was Rs.1719 crores. Godrej is one of the India¶s most trusted brands which enjoy the patronage and trust of over 400 million Indian¶s every single day. Godrej & Boyce Mfg co Ltd established at Lalbaug Mumbai on 7th may 1897. 20% of godrej businesses are done overseas which has it presence more than 60 countries. Market share of godrej in 2009 is 28%. Godrej Appliances turnover is Rs. 2000 crores by December 2009. PRODUCT MIXES OF GODREJ AND WHIRLPOOL:
GODREJ & BOYCE Mfg.Co.Ltd
Furniture s Goods
Security equipment Division
Material Handling Equipment
Refrigerators Air conditioners Washing Machine Micro oven DVDs 3
Cup board Chairs Beds Carpet Interior decoration
Physical security Product Electronic security system Doors
Godrej has diversified his business in electronics in to many units¶ i.e. Home appliances, Furniture¶s goods, security equipment and Material handling equipment. It also diversified is businesses to Fmcg and real estate business. In home appliances more than 70% of revenue is achieved through Refrigerator. Godrej Mission is to operate in existing and new businesses which capitalize on the Godrej brand and corporate image of reliability and integrity. Its vision is ³Godrej in every home and work place´. Godrej objective is to delight its customer both in India and abroad. Godrej shall strive for excellence by nurturing, developing and empowering its employees and suppliers. It motto is ³We care the quality of your life´. Having a wide range of product line is an added on advantage to this company. Recent expansion of godrej real estate business has a greater advantage since their home appliances, furniture and Security equipment can be used in their business, and because of their real estate business they earn more profit to their own company.
Whirlpool s Product Mix
Direct Cool Frost Control Frost Free Fusion 24 Premier Professional 410 liter
Semi Automatic Fully Automatic (top load) Fully Automatic (front load) White Magic 800H
Solo Grill Convection Magic Cook 22c Jetchef
Sin Wave HUPS Sin Wave Platinum Silver Series Elanta-HUPS Gold Series
Whirlpool product mixes is not that much diversified as godrej. They have only diversified his businesses in only electronic goods that are home appliances, accessories, built-inn and UPS. But they have many varities in their products which is more than godrej. In home appliance they create more and new innovative idea and add more value to its product which attracts more modern age people who loves new changes.
MARKETING MIX OF GODREJ AND WHIRLPOOL:
Mostly people or businesses will focus on Price, Place, Promotion and Product as their elements of marketing mix. But now the marketing mix is increased with Five P¶s and also to Seven P¶s. Regarding Godrej and whirlpool we are going to mostly concentrate with Four P¶s i.e. Price, Place, Promotion and Product. MARKETING MIX OF GODREJ: PRODUCT: Godrej product is there in much kind of businesses namely Home appliance (Refrigerators, Air-conditioners, Washing machine, Microwave and DVD¶s), FMCG (Cinthol, Hershey¶s chocolate syrup, Good knight, Hair colour and hair dye), Agri (Animal feeds, Oil palms, Plantation, Agro chemical and poultry), Furniture (Cup board, chairs, beds, Carpets and interior decoration), Real estate (Residential, Commercial and township) Security solution (Safety lockers, Banking automation product and electronic security system). Their product is very much trusted by people. It had created good brand loyalty over the periods. It has been form the late 1897. In home appliances more than 70% of his revenue comes from Refrigerators. In Fmcg they achieve most of their revenue through hair colour and dye. Almost many of the companies and firms and banks use godrej security system because it is a trusted one also same in the case of doors and locks which is used in houses also.
PRICE: There are many ways to price a product, they are Premium pricing, Penetration pricing, Economy pricing, Price skimming, Psychological pricing, Product line pricing, Optional product pricing, Captive product pricing, Product bundling price, Geographical pricing and Value pricing but Godrej philosophy had all been to deliver value for money to its customers despite being priced economically, Godrej maintained his product quality, so that is the reason many of the people do not consider about the price when they go for brand godrej. PLACE: It is also known as channel, distribution, or intermediary. It is the mechanism through which goods/services are moved from the manufacturer to the consumer.
Godrej home appliances are sold in retail outlets like Vivek&co, Vasanth&co. and Girias etc« In the case of Fmcg product it is given to the small store to big retail store like Big Bazaar through theirs distributors allocated in each state or city. In the case of security system and doors it is available in hardware stores and security system and banking automation services is fitted directly by Godrej. Godrej & Boyce Mfg.Co.Ltd has a network of 38 companies-owned showrooms and more than 2200 Wholesale dealers and more than 18,000 Retail Outlets. PROMOTION: This includes all of the tools available to the marketer for µmarketing communication¶. Promotions are done in four ways Advertising, Public relations, Personal selling and sales promotion. Godrej has a unique way of advertising their product. For example their DVD¶s advertisement is considered has funny advertising amongst the people. They advertise their Fmcg and home appliances product through outlets, through big banners in important cities, through television and internet advertisement and they have their own company websites through which people can get to know about all the products of godrej and also about their companies.
MARKETING MIX OF WHIRLPOOL:
PRODUCT: In India, refrigerators and other home appliances were long known before the 1990s; but Whirlpool¶s products stand out for innovative approaches to specific Indian contexts, and for a focus on customer relevant technology. One of its earliest product-innovations specifically addressed the sizeable segment of customers who bought smaller sized refrigerators. Whirlpool realized that a customer who bought a small capacity refrigerator would probably require greater flexibility and options in storage. Therefore, it introduced the Flexigerator, a refrigerator with adjustable and µdrop-down¶ shelves that gave unprecedented space options to customers. Again, Whirlpool realized that Indians have a propensity to store much larger amounts of water than most other cultures. Therefore, Whirlpool introduced shelves that could take 1.5 liter bottles, on specially strengthened doors. Subsequently, Whirlpool introduced its Ice magic refrigerators which made ice faster than other brands.In washer products, Whirlpool was again the first to come out with a Combimatic ± a single tub semi-automatic washing machine that did away with the hassle of shifting clothes from one tub to another. Whirlpool has a wide product portfolio ranging from air-conditioners to microwaves. Whirlpool¶s future products will be designed as an environmental friendly product in accordance to customer expectations
PROMOTION: Whirlpool's promotion strategy has introduced unique values in the home appliance market. As recently as the early 1990s, most consumer durables were promoted just as desirable accessories, and the purchase decision crystallized through the male breadwinner in the Indian family. Whirlpool¶s promotions broke new ground with reference to each of these longstanding premises in the Indian consumer market. Whirlpool created its marketing position around the tagline, µYou and Whirlpool
± the world¶s best homemakers¶. Based upon this premise, Whirlpool¶s promotions encouraged and helped women to consciously identify themselves as the real homemakers in the family. This strategy also took Whirlpool to the core of every home, as envisaged in the mindset of customers, thereby enabling instant connection with the brand. In the process of establishing such an emotional connects with the customer. Whirlpool¶s strategy of reaching out to its customers in unique ways was followed even in media .It changed the media trend for consumer durables advertising in India, which hitherto was heavily skewed towards print. Whirlpool was the first home appliances brand to orient its promotions towards television advertising. PRICE: Whirlpool India Ltd. has changed its strategy from being a premium-player to a mass-player. Whirlpool has been concentrating on becoming a brand for the massmarket and hence has introduced its products in all price categories. In order to increase their profit, they try to reduce their cost. Some of their actions are they closed several plants and streamlined organization in several group.Knowing the market well, structuring the elasticity¶s and keeping an eye on competitors by whirlpool has implemented a customer-centric strategy that focuses on making sure their products are appropriate for the Indian consumers. Different versions of their products are priced differently, but not according to differences in their costs. Whirlpool¶s bigger success has been in the full in the fully automatic segment. PLACE: Whirlpool aims at globalization to obtain more market share in home appliance industry by expanding globally. In Asia, where considerable perceived profit is locate. Asia is a promising market with great potentiality, where the population is huge while the labor is cheap compared with Europe and North America. Whirlpool put more efforts on its major markets (Europe, North America) to ensure its market position and profit, meanwhile, the investment in new market to support the globalization strategy should be undertaken cautiously and strategically according to the economy and resource condition and related cultural issues. Asia, Europe, Latin America and North America are the most profitable market for where Whirlpool is operating. Whirlpool India is also one of the largest exporters of home appliances from India. Godrej have three World class factories manufacturing a wide range of Refrigerators and Washing Machines .Their appliances are exported all over the globe from Australia & New Zealand in the East right up to Central America and the Caribbean islands in the West. Apart from World Class factories, Whirlpool has also set up its Global Product Development Centers in India where hundreds of engineers and technicians are working round the clock, developing product designs for the entire Whirlpool world.
MARKETING MIX ELEMENT WHICH I LIKE MOST: GODREJ: Marketing mix element which i like most in godrej is Promotion because they have unique way of promoting their product. In line with Godrej Masterbrand¶s promise of µBrighter Living¶, the godrej group has launched GoJiyo.com ± India¶s first online virtual world. GoJiyo will be platform for the godrej brand & it¶s portfolio to engage with
the restless, upwardly mobile Indian youth in powerful, experimental manner. They also advertise their product in very funny way that is advertising of its DVD¶s product and they advertise their product in such a way which is accepted by most of the people. Godrej is an Umbrella branding, so they have got a greater advantage because good promotion of one product will carry forward to other product also which create more brand loyalty to its entire product amongst the people. WHIRLPOOL: In the process of establishing such an emotional connects with the customer, Whirlpool¶s promotions have also generated memorable campaigns. Foremost among these is the µWhirlpool, Whirlpool«.¶ audio refrain, which is the hallmark of all audio-visual communications for this brand. Whirlpool has also created many memorable taglines for specific products, such as µIce, ice baby¶ for refrigerators, and µMummy ka magic chalega kya?¶ for washing machines which have become part of the colloquial µmarket-speak¶ in the country. CONCLUSION: Since Godrej is very trusted brand in India and because it came to India well before Whirlpool Godrej enjoys more advantage than whirlpool. Since godrej product diversification in Fmcg and also in real estate apart from electronic goods it enjoys growth in all the fields because of its expansion of businesses where as whirlpool dose not see that much growth because it has diversification business only in electronic goods. Because Godrej uses umbrella branding for its entire diversified product it creates huge brand loyalty amongst the people than whirlpool. The Godrej name yields powerful influence today¶s rapidly transforming social and economic environment.
www.elcina.com www.ndtv.com www.whirlpool.com www.godrej.com www.cengage.co.in Strategic marketing - Farrell.Hartline ± 2008
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