Surbhi Sabharwal

PGFA1957
Individual Assignment Product: Fan
Company: Havells India
Competitor Analysis and SWOT Limited
Geographical Area: Noida
Existing players in the market: Various air cooler and air conditioner
Orient companies that compete with fans in the
Crompton premium segment market, such as:
Bajaj Cooler by Symphony
Usha Blue Star Air Cooler
Hindware Cooler
Current players targeting the lower International brands trying to enter Indian
segment of the market: market such as:
Singer (unorganized player) Casablanca
Solimo by Amazon Minka Group
Gorilla (Atomberg technology) Hunter brand

1. Identifying the Competitors:

Target Market: Middle- High Income Group

Current

Potential
Direct Indirect

2. Understanding the Competitor (1)

Key Finding:
1. Crompton is the leading player in the Indian fans market. The company is now
focusing more on increasing its share in the commercial market.
2. Havells is a leading player in the premium fans segment and a well-known brand
across various consumer durables.
 3. Orient Electric is increasing its market share with continuous innovations and
introducing energy efficient fans.
4. Bajaj Electricals is one of the prominent players in fans, lighting, and luminaires
segment where fans contribute to 24% of its revenue.
5. Other major players in the market include Usha, Khaitan, and several unorganized
players.

3. Describing the competitor

Havells and its current competitors
Havells Orient Crompton Bajaj Usha

Oldest fan Wide product Well established Well established

Well established manufacturers in range to brand name brand name
brand name India. provide end to since 1952
end solutions
to customers
across various
segments

Leading player in Largest product Highly strongest Flexible price

premium fan portfolio committed workforce range, i.e. 800-
segment R&D and 50000
managerial
power
Strengths

Largest Leading Easy adoption price Consistent

manufacturing unit manufacturers of of new competitiveness customer
in tax free zone energy efficient technology satisfaction
fans.
Well established State of the art Prompt after Large product
R&D customer service sales service portfolio
centres

Strong distribution Good High liquidity Good foreign

network Largest understanding has enabled it to collaboration
distribution of markets invest in new resulting in
network conditions technologies access to cheap
raw material
First to offer Shifting focus
doorstep service from domestic
to commercial
market

Key Finding:
1. Havells and Orient fans compete intensely in the premium segment market. Both the
brands have priced their fans more than the other players in the market.
2. Havells is leading in premium segment due to large resources and focus on R&D.
 3. Orient is leading in energy efficient fans and is also trying to capture the premium
market by adopting new technologies.
4. Crompton, Usha and Bajaj compete in the economy and standard fan market.
5. Crompton’s also leading in the industrial and commercial segment.
6. Usha and Bajaj are very price competitive and offer a flexible price range.

Havells and its current competitors

Havells Orient Crompton Bajaj Usha

New in the fan The product Unable to Limited less

industry folio is easily match the market share promotional
replicated by the changing due to intense activities.
competitors technology. competition
Weakness

Higher price Price range is Less presence lesser number

range 15% more than in the premium of service
the industry. segment stations
market.

Key Finding:
1. While Havells and Orient are major players in the premium segment with a total
share of 16% and 12% respectively in the fan market, their products are easily
replicated by others.
2. Havells and Orient have priced its fans much more than the others due to which it
is not accepted by the customers who are price conscious.
3. Crompton though enjoys the largest market share, i.e, 22% in the fan market, still
it is unable to adapt the new technologies quick and therefore focuses more on the
economy and standard fan market.
4. Bajaj has 8% market share, and due to intense competition is unable to capture
more market.

4. Competitor Assessment Analysis

Competitor Assessment analysis will help identify the capabilities and resources that
Havells India limited possess that helps create a differential advantage for it. In order to
do so, we need to answer three major questions:
1. Do we have the resources?
Yes, Havells has one of the largest fan manufacturing plant in India.
2. Are we superior?
Yes, Havells fans are superior in the premium segment market. Due to a well-
established R&D available in every plant and head office, Havells continuously
 focuses on developing the best quality fans which have the latest technology and
design.
3. Would it be difficult for others to copy?
Though Havells enjoys easy adopts the new technology and provides the best quality
fans, Orient is another major player in the premium segment that is trying to capture
the market with its large product portfolio. Further, Orient essentially was fan
manufacturing company and therefore enjoys a better name in the market. Also, other
brand such as Crompton, bajaj and Luminous are also marking their presence in the
premium segment market.

Havells India Limited’s Competitive Analysis

A B C. Necessary capabilities/ Resources
Customer Customer
requirement Importance Efficient Access to low cost Well- On door
Needs, Values and Rank manufacturing raw material developed customer
benefits R&D service

Low Price 1
Better air 2
delivery *YYN
3
Better Quality of
blades *YYN
Low Power 4
Consumption *YN *YN *YYN
Customer 5
*YYN
Service

Better Design 6 *YYN

Better
7
technology *YYN

YN: Firms capabilities/resources match customer needs/benefits, but no

better than the competitor

YYN: Firms capabilities/resources match customer needs/benefits, the firm

has an advantage, but the competitor could match the firm relatively easy.

Key Finding:
Havells India limited, have all the resources and capabilities to satisfy the needs of its
customer but its competitive advantage is not sustainable and can be easily replicated by
others.

5. Brand perception in the market

 The table below shows the perception that various retailers have about different brand
competing against each other in the market.
Retailers play a major role in the fan industry, since they influence the choice of the
consumer to a great extent.

Brand Name Retailer’s Comment

Havells Small retailers are much inclined towards other brand in

comparison to Havells, especially when selling economy and
standard fans. According to them Havells is a new entry and has
been able to survive the market due to its existing brand name.
Further, Havells fans are most expensive in the market. While the
standard fan starts from Rs. 1400 while other big brands such as
Usha, Crompton, Orient offers fans that starts from Rs. 950.
Therefore, they only prefer keeping Havells fan that are in the
premium segment.
Havells, has better quality, is fancier looking and is much better
than its competitors when it comes to technology
Usha It is preferred more in the economy and standard segment.
Though Usha has premium segment fans, but the economy and
standard fans sell more. Usha also is more preferred in the
small size and wall mounted fan segment. Usha is also
preferred in exhaust fans.

Bajaj Bajaj is present both in the lower and middle- high income segment. It
offers fans that are cheap. It has an established name and retailers
prefer selling Bajaj since they have never received any complaint
regarding Bajaj fans. Bajaj is preferred more in simple fans category.

Orient Crompton was considered one its biggest competitor but due to its
shift from consumer market to industrial market, Orient has captured
the domestic market. Orient was essentially a fan manufacturer and
therefore Orient fans are best when it comes to quality. It has the
best collection. Orient however is costly, it is priced 15% more than
the industry rate.
Orient has the largest collection and is readily available is all
colours, design and technology.
Crompton Crompton, which was one of the biggest sources of competition in
the domestic fam market has shifted its focus from consumer
market to commercial and industrial market. Crompton has an
established brand name and is preferred by most customers. Also,
it provides great options for people looking for fancy and
decorative fans at very low price.
Competitor Market Share Level of Competitor Competitor Havells’ Strategy
Competition Objective Strategy

Crompton 22% Strong To Hold market The company is now To maintain its
share focusing more on leadership in the
increasing its share premium segment
in the high-end market by
product category. positioning its fans
as better quality.
Orient 12% Strong To be a leader in Continuous More focus on R&D
premium innovations and to manufacture
segment market introducing fans technologically
which include lesser advanced fans
wear and tear, before the
reduced competitors.
electromagnetic
interference,
noiseless operation,
improved efficiency,
increased reliability,
and a longer
lifespan.
Bajaj 8% Favourable To increase its Flexible price range
market share. to penetrate the
middle-income
group social class.
Others – Usha 4% Favourable To increase 1. By highlighting
market share. how Usha Fans will
make consumer life
To increase better by providing
profits. better choice,
innovation and
value.
2. Aggressive
advertising (15
crore budget), and
new packaging.
3. new range of 25
fans in the Rs. 1095-
Rs.40,000 price
range.
6. Summing it Up
 SWOT ANALYSIS
After analysing the internal and external analysis the following could be determined for
Havells India Limited
Internal Environment:
Strengths
 Well established brand name
 Strong distribution network
 First to offer doorstep service
 Leading player in premium fan segment
 Largest manufacturing unit in tax free zone
 Well established R&D
Weakness
 New in the fan industry
 Higher price range
External Environment
Opportunity
 Growing fan industry
 Chinese firm acquisition to reduce the cost of manufacturing
 Integration into retail outlet concept
 Housing for all scheme 2020 can increase demand.
Threat
 Unorganized market players
 Environmental laws on fan industry
 Competition among existing player.
Bibliography
1. C.S electronics Co. – 95120431105
2. Mr Rawat, Kay Dee electronics- 870044678
3. Mr. Manmeet singh- 9818318342
4. Home utility Traders- 98101735457
5. Mr. Amar Rai- 9911514261
6. Mr Ram Maheshwari- 9873334486
7. Mr. Vikrant Bakshi- 9811946565
8. Ankur Electronics- 9899862564
9. Lights and Things- 0120433525
Reference:
(1) https://ww2.frost.com/wp-content/uploads/2018/09/Dynamics-of-the-Indian-Fan-
Market_EDT.pdf
(2) https://www.orientelectric.com/vision-mission-values
(3) https://www.havells.com/en/consumer/fans.html
(4) https://www.bajajelectricals.com/home-essentials-appliances/fans/
(5) https://www.crompton.co.in/about-us/