Questions for Discussion – Godrej Appliances: Enhancing Value and Brand Image

1. What business is Godrej Appliances in?

Godrej’s product portfolio included refrigerators, air conditioners, washing machines and
microwave ovens.

2. What do you understand by “Value”?

3. How do you understand the dynamics in the consumer durables market in India?

 Refrigerators
Higher levels of income and changing lifestyles are propelling the demand for newer and
larger models.
Rural and urban area sales constitute 25 percent and 75 percent respectively
segments, direct cool (DC) and frost free (FF), with 83 percent and 17 percent market shares
 Washing Machines
India is dominated by semi-automatic washing machines with 70 percent market share.
Market penetration was 9.8 and 166 per thousand respectively in rural and urban areas.
LG occupies the lead position with 24 percent
 Air Conditioners
The unorganised market share reduced drastically.
Organised players have reduced their prices by a quarter.
Geographically the north accounts for 37 percent of sales, followed by the west with 33 percent, the
south with 22 percent and the east with 8 percent
 Microwave Ovens
The market share of convection type ovens is expected to increase steadily from the current 34
percent.
concerns about the health hazards of microwave ovens, which have not been proven, may stifle this
growth.

4. How do Indian consumers perceive the offerings from the durable industry?
The Marketing head opined that today’s customers were interested in the pleasing features
available in products but they were not willing to pay a premium for them.
So, Godrej should be able to bridge the gap between customers willingness to pay a premium for its
products vis-à-vis market leaders

Market shares of different players

S. No Company Name Refrigerator Washing Air Microwave

Machine Conditioner Oven
1 LG 25 34 25
2 Samsung 21 13 17
3 Videocon 17 18
4 Whirlpool 10 15 8
5 Godrej 19 9 8

5. What is the image Godrej having among consumers?

Even if Godrej’s lowest range products were cheaper than the competition, customers did not prefer
them due to low brand power.
Kamal Nandi replied that the younger generation was inclined to purchase products made in India.
brand Godrej awareness among target segments was low.

6. What positive (advantages) and negatives (disadvantages) you see in the products of
Godrej?
Unique customer experience was offered by proactively anticipating customer needs and
expectations, and exceeding them in each transaction.
call-centers operated 24X7
An SMS with a unique alpha-numeric code
A mobile app was introduced for Godrej technicians
Smartcare franchisee network
exchange schemes

Negative
portfolio gaps

What efforts were taken by Godrej in terms of making its product portfolio competitive.

Suggestion- they should make an integeretd app or siri shortcut to run their appliances on a voice
command or remotely just in one touch.

Suggest steps to revitalise the brand Godrej among the generation Z consumers using mass media
and social media in particular.

E commerce website- godrej already have that, 6 months extended warranty if vaccinated.

Brush Up On Influencer Marketing- consumers are having conversations with

their peers online long before they make a purchase. To be effective, brands
need to be a part of that dialogue.”
Tieup with teens brand like Nykaa- whenever someone purchases a nykaa
product , he gets a godrej voucher for free online photo sessions with godrej
product. With voucher customer can send his picture to godrej and will get
a beautiful e-refrigerator with pic pasted and written as brand hero on it. As
Dettol did it recently.

Discount on student id like apple.