Consumer Durables

Goods

Good is defined as a physical (tangible)

product, capable of being delivered to a
purchaser and involves the transfer of
ownership from seller to customer.
 Consumer Durable
• Consumer durables are the products whose
life expectancy is at least 3 years. These
products are hard goods that cannot be used
up at once.
• Consumer durable industry is of 30,000 crore.
 Consumer Durables

Consumer Electronics
Moulded Clocks and Mobile Automobile
Luggage  Watches Phones sector
White Goods Brown goods
 Demand of Consumer Durables
14000
12000
10000
8000
6000 1995-96
2001-02
4000 2005-06
2009-10
2000
0
rs s rs
a cle r o s
C cy la rat od
o r gu e Go
ot R e rf ig i te
M C TV Re h
W
Trends Favoring the Growth of the Consumer
Durables Industry

Indian Consumer
Durables
Industry
Key Consumer Durables- Share by Volume

Sales
CTV's Refrigerators AC
Washing Machines Othres

34% 30%

5% 13% 18%
 demand drivers
• Distribution network
• Advertising and marketing strategy
• Brand image.
• Technology used
• Newer products and newer product features
• The discount schemes and consumer finance facility
• Market positioning  
• Cost competitiveness and pricing strategy of the company
• The financial strength of the players
 STRENGTH
      
      WEAKNESS
“Accessory
“Accessory toto Necessary”
Necessary” Air-
Air-
conditioners are no longer perceived to
    Supply continues to outstrip
be a item of luxury. Demand. Demand Cyclical and
seasonal.
       Advancement of technology which
gives the companies ability to introduce
new products and new product features.
       Volatile performance of the
      
       High
High Growth.
Growth. Key
Key drivers
drivers being
being Urban
Urban agricultural sector have a negative
and Rural.
impact on demand. The sector's
performance is highly dependent on
       Government Policies in favour of
Industry includes infrastructure monsoon and reforms, which has
development, reduction in excise duty
and so on. failed often.

OPPORTUNITY
  Diversification. Developing new
products for new markets.
       Easy availability of finance has
stimulated consumers to buy
durables.
THREATS
Dozen companies operating in the
white goods segment. Prices would
continue to remain depressed and
margins will be under pressure.

       Threats of cheaper imports from

       Changes in Consumer Outlook China and other South East Asian
from spend now-save later mentality countries
leading to high disposable income.
SUCCESS FACTOR FOR CONSUMER DURABLE INDUSTRY

1.  Technology
2.   Knowledge of the local market:
3.   Strong distribution network
4.   Good brand image:
 MAJOR PLAYERS
in Consumer Durable Industry
 TYPES OF CONSUMER PURCHASING DECISION

High Involvement Low Involvement

Purchase Decision Purchase Decision

Complex Decision
Decision Making Making Variety seeking
(Information Search, (Autos, Electronics (Cereals)
consideration of Appliances)
brand alternatives)

Habit Inertia
(Little or no Information Brand Loyalty
(canned Vegetables,
Search, consideration of (Cigarettes, Perfumes)
Paper Towels)
only one brand)
 THE BUYER DECISION PROCESS

Consumer Post
Need Brand
Information Purchase purchase
Arousal Evaluation
Processing Evaluation
 FACTORS AFFECTING CONSUMER
BEHAVIOR

• CULTURAL FACTORS
• SOCIAL FACTORS
• PERSONAL FACTOR
• PSYCHOLOGICAL FACTORS
 Marketing Plan
Marketing Plan for the EZ-CLEAN Dishwasher by
EZ-LIFE
 Introduction & Background
• EZ-LIFE is a home appliance company who designs, manufactures and
distributes its products throughout India.
• EZ-LIFE is located at Chakan, Pune,Maharashtra.
• EZ-LIFE is concerned about the current state of the environment and
therefore develops its products with an emphasis on decreasing energy
costs.
• We serve the Indian market and curtail to the average annual income
earner.
• We have been in the home appliance industry since 2000 .
• We are the company worth 1000 crore with workforce of 5000 employees.
• We are in the business of producing Refrigerator,Air conditioner,Washing
machine and Microwave.
 EZ-LIFE
VISION:
• · To maintain leadership position in our core commercial home appliance
business with focus on R&D to develop new products and technologies to
make us self reliant.

MISSION:
• To provide highest customer satisfaction through our products and
services at competitive prices.
• To become complete solution provider through planned and continuous
improvement of products, process and people.
• To be fair to our associates and employees in growth and success with
conscious concern for the environment and society.
 OBJECTIVE
A lot of our success can be attributed to the vision which is
evident in the objective of our company.
• Provide higher quality equipment at the most competitive
prices.
• Provide a one stop shop to meet all the requirements of our
customers.
• Provide strong after sales service support.
• Contribute to society by being an environmentally conscious
company.
• Most importantly providing complete satisfaction to our
customers in our products and services and to our employees
in their work
 Situation Analysis
• To launch EZ-Clean dishwasher by APRIL 2010
• bringing this new innovative product onto the market place and
making our existing customer base , as well as new customers, aware
of our new product.

Market potential:
• Retail volume sales of dishwashers are predicted to increase by 10%
over the 2010 to 2015 period.
• The household penetration of domestic electrical appliances is very
well developed in most sectors of the Indian market.
• Dishwashers are a potential market for penetration, as they are
convenient for young families with two income earners.
• Household renovations, kitchen appliances, including dishwashers,
are among the most robust in the market for future growth potential.
 Competitive Environment
• The EZ-CLEAN is en extension of the current dishwasher market. The
competition is dishwashers that are energy efficient in their operations.
• The EZ-CLEAN will differentiate itself exceptionally well from the
competition, due to the fact that our dishwasher, unlike any other on the
market, addresses all environmental concerns, namely: water and energy
waste, chemical waste and noise pollution.

Competitors:
Siemens
LG
Whirlpool
IFB
Haier
Electrolux
 Technology
• uses cryogenic technology
• dry ice pellets allows for a clean method of removing dirt and grime
• does not produce any secondary wastes.
• based on the mass and velocity of the dry ice
• When the cold dry ice pellets impact with the dish surface, a small
thermal differential is established between the contaminant and the
substrate
• cracking and de-lamination
• As the dry ice impacts ,carbon dioxide gas (CO2) is released then it tends
to invade cracks and pores to get under the contaminant.
• it rapidly expands and pushes the contaminant from the dish surface.
●
Strength ●
Weakness

Environment Low customer

friendly, cost awareness ,
effective, Energy Space
& Water saver consumption

Large potential Competion from

market available existing brands

●
Opportunity ●
Threat
Objectives and Action Plans 
 Target Segment
• Middle & higher income group.
• Hotels & restaurants.
• Industry Canteens.
• Housing projects.
• Caterers.
 Place
• We plan to launch this product in the major
urban cities in India.
• The launch will coincide with the National Home
show occurring in each city.
Price
Price of dishwasher for household use=RS 20,000
Price of dishwasher for industrial use=RS 40,000
 Innovative marketing strategy
• Launch new technologies in consumer electronic and
home appliances.
• Product localization.
• The Website link provides the customer the
opportunity to view information on the product, as
well as complete any questionnaires, and contact EZ-
LIFE in order to provide feedback.
• Exhibitions are conducted from time to time.
• Hoarding, Posters, banners are used so as to grab the
attention of the costumers.
• Day to day advertisement in leading newspaper.
 Distribution
• Divide dealer in gold silver etc. category to
know the performance of the dealers.
• For dealer relationship arrange dealer meeting
at several time in the year.
• Keep sales persons at various sub dealer store
and at mordent trade store for particularly for
the promotion of the product.
 •
Financial
In order to determine the cost to manufacture and ultimately the selling and retail
price, the following analysis of the fixed costs, product launching costs, and unit
costs (variable costs) are analyzed.
The following table lists the yearly fixed costs (excluding product launch costs). The
numbers reflect the first year only. However, the same table was used to calculate
the fixed cost for subsequent years.
Fixed cost:
Fixed Cost Total cost Amortization period Annual cost
Factory and office 120000000 48 3,00,00,000
spare
Equipment 20,00,00,000 48 5,00,00,000
Trucks(20 ) 1,60,00,000 48 40,00,000
Office Furniture 4,40,00,000 48 1,10,00,000
Other fixed 13,00,00,000
cost(includes taxes,
utilites,employee
salaries etc)

Total 22,50,00,000
 • Product Launching Cost

Product Launch Cost Total Cost

Marketing 20,00,00,000
Implementing Quality Control 7,00,00,000
Training 5,00,00,000
Miscellaneous 7,00,00,000
Total 34,00,00,000

• Variable Cost:
No. Of Unit Production Cost
200 Per Day 14,00,000
50,000 per year 35,00,00,000
 Estimated P&L Statement
Predicted market Sales Cost Incurred Net Profit/loss
unit sales
2010-11 80,00,00,000 91,50,00,000 (11,50,00,000)
40,000
2011-12 88,00,00,000 67,50,00,000 20,50,00,000
44,000
2012-13 96,80,00,000 67,50,00,000 29,30,00,000
48,400
2013-14 106,48,00,000 67,50,00,000 38,98,00,000
53,240
Thank You