Context Analysis Part II

Submitted By:

Gaurav Khatri

PGFA1918

Company: Havells India Ltd.

Product: Fan

Objective: The objective of this analysis is to find out the change in need of consumer due
change in environmental trends and if there is a change we have to find out whether it is
creating an opportunity or a threat for the firms.

Forces Important Potential Impact on the firm

Exemplars
The GST Rate has been reduced from 28% to 18%
to make the fans affordable and it will help
Political GST rate industry to target the rural market.

The new generation prefers nuclear families and

Demographic therefore either buy new houses or rented flats this
trend leads to an increase in sales of fans.
Sociocultural
Increase in Online With the increase in e-commerce people prefer
users buying online.

There has been an increase in demand for the smart

fans in the market recently so the firms should use
these new technology to meet the current demand
Technological IoT in the market.
Internet of things is the current new technology in
the market it let you control your electric
equipment from anywhere and in current market
the demand for this technology is starting to grow.
So it is a technology which the firms need to use in
their fans.

BEE (Bureau of Currently the BEE norms are not mandatory in the
 Environment Energy fan industry but in the coming year it is suspected
Efficiency) norms that it will become mandatory and once it become
mandatory it will led to increase in cost of
manufacturing which will result in rise in the price
of fans.

Opportunities for the Business:

1) With a rapid increase in the use of internet, E-Commerce is rising at a very fast pace. So,
it is a great opportunity for the firm to focus on selling fans online.
2) Further GST reduction will result in reduce price of fans which will make it easier for the
firms to penetrate the rural market.
3) Technologies like IoT enabled fans are presenting a great opportunity in the market and
so the firm should focus on these new technology.

Challenges for the Business:

1) With fluctuations in the economy it has become difficult for the fan industry to manage the
cost of fans while the cost of raw material is changing.
2) With the ever-so-growing technological advancements like IoT, AI etc. It has become a
challenge for the firm to cope up with the technological competence because it takes a huge
amount of capital and research and development.
3) The firms in the industry have to follow BEE norms while producing fans and it will result
in increasing the price of fans which will result less demand.

Conclusion:

From, the above analysis it can be seen that there are various opportunities and challenges for the
firms in fan industry and by keeping in mind these opportunities and challenges the marketing
plan of Havells India Limited will be made for 2020-21.