MARKETING MANAGEMENT ASSIGNMENT

Industry: Consumer Appliances

Submitted To: Prof. Varsha Khatri

Submitted by: - Group 9

Members:

• Aditi Arora (301003)

• Ankit Kumar Singh (301012)
• Divanshu Nagi (301019)
• Manglam Farsaiya (301024)
• Kaushik Kachare (301028)
• Kirti Goel (301029)
 Contributions – Phase I

Aditi Arora (301003) - 1. Technological Environment

2. Inferences on Technological Environment
3. Market Size Report
4. Growth Analysis on market
5. Trend Analysis
6. Industry Insight

Ankit Kumar Singh (301012) - 1. Socio-Cultural & Natural Environment

2. Inferences on above-mentioned environment
3. Michael Porter’s 5 forces analysis
4. Inferences on the 5 forces analysis
5. Major Marketing Costs
6. Sources of Revenue

Divanshu Nagi (301019) - 1. Economic Environment

2. Inferences on Economic Environment
3. Profile of main players, market shares &
strategies

Manglam Farsaiya (301024) - 1. Government Policies

2. Inferences on Government Policies
3. Interesting observations of the category
4. Product idea
5. Product feasibility research
6. Available technology for product

Kaushik Kachare (301028) - 1. Demographic Environment

2. Inferences on Demographic Environment
3. Identify Leader
4. List Challengers
5. Identify Followers
6. List Nichers

Kirti Goel (301029) - 1. Legal Environment

2. Political Environment
3. Inferences on Legal Environment
4. Inferences on Political Environment
5. Report Market Structure
6. Analyse need of product in market
 Contributions – Phase II

Aditi Arora (301003) - 1. Preparing the questionnaire & getting responses

2. Creating a product – need set
3. Implication for marketing decisions

Ankit Kumar Singh (301012) - 1. Preparing the questionnaire & getting responses
2. Defined stages in the purchase process
3. Describing the customer groups

Divanshu Nagi (301019) - 1. Preparing the questionnaire & getting responses

2. Reasons for purchasing the product
3. Describing the customer groups

Manglam Farsaiya (301024) - 1. Preparing the questionnaire & getting responses

2. Post Purchase Dissonance
3. Selecting the target segment

Kaushik Kachare (301028) - 1. Preparing the questionnaire & getting responses

2. Reasons for purchasing the product
3. Selecting the target segment

Kirti Goel (301029) - 1. Preparing the questionnaire & getting responses

2. Creating a product – need set
3. Implication for marketing decisions
 Contributions – Phase III

Aditi Arora (301003) - 1. Product Levels: Customer Value Hierarchy

2. Executive Summary

Ankit Kumar Singh (301012) - 1. Annual Turnover of the Company

2. Target Audience
3. Perceptual Map

Divanshu Nagi (301019) - 1. Target Audience

2. Positioning and Creative Strategy of
Communications

Manglam Farsaiya (301024) - 1. Product Characteristics and Consumer Benefits

2. Market Leading Brands

Kaushik Kachare (301028) - 1. Product Characteristics and Consumer Benefits

2. Market Leading Brands

Kirti Goel (301029) - 1. Product Levels: Customer Value Hierarchy

2. Executive Summary
 1(a) Environmental Forces

Demographic Environment

• Population Growth: The worldwide population is increasing at an explosive rate. The

population is forecasted to touch as high as 8.82 billion by 2040. However, this figure might be
misleading for businesses as they might interpret increasing population as an increasing market
size but population size is inversely proportional to consumer purchasing power (owing to
higher demand which translates into higher product prices). Marketers should realize that only
a positive increase in the purchasing power will generate a positive market sale. Samsung, thus
has to focus on measures such as CPI, GDP etc. to analyze the market potential.
• Population Age Mix: In India, as the young population of age group of 0-14 is 35.7 crores
(26.16%), the age group of 15-65 is 91.91 crores (67.27%) which is also the working population
and the age group of 65+ is 8.97 crores (6.57). The population growth has declined over the
decade but the standard of living has increased subsequently and thus the need for preservation,
storage, and hygiene for food and products has increased. Our target audience will be the
working population of tier 1 and tier 2. The average age of the target audience is approximately
28 years. But the product is used by both the non-working and the working population.
• Household Pattern: It is referred to the number of members in a household including husband,
wife, children, etc. In India, Nuclear family as a percentage of all families declined from 70.34%
to 70.11%. Meanwhile, Joint families have increased subsequently. Our target audience would
be both nuclear as well as joint families from tier 1 and tier 2 cities. The target audience would
be from tier 1 and tier 2: -
Tier 1 – Capacity of the fridge-250+ litres
The size of the family-4 to 8
Tier 2 – capacity of the fridge-150ltr to 250 litres
The size of family- 2 to 4 members
• Ethnic and other markets: India ranks 17 among 215 countries when it comes to ethnic and
cultural diversity and ranks 14 among 232 countries when comes to linguistic diversity. India
being a highly diverse country it becomes hard for companies to meet the requirement of
everyone. Companies are expected to redesign, refine, and adjust according to the need of
different cultures and races to increase the spread of the market to which they cater. Our product
will come with a Multi-lingual AI-based program. An extra shelf has been provided to the
 customer, the use of this extra self will defer from region to region and can be used according
to the requirement of the consumer.

Socio-Cultural Environment

• View of organization: The general perceptions about the organization in the public plays an
important role on the consumer buying behavior. The instances of corporate scandals and
unlawful behavior have increased over the years due to which brand loyalty has taken a serious
hit. Samsung, in order to promote a strong consumer confidence, has to follow an honest-
transparent approach in the activities it undertakes.
• View of nature: The modern-day consumers are not only rational from the utility aspect of the
goods and services they consume, but are also more socially responsible and environmentally
conscious. Hence, Samsung should focus on marketing a more “environment-oriented”
approach (green approach) to their products in order to catch the attention of the potential
consumers and generate positive response from their target market.
• Subcultures: Every society comprises of multiple segments which is a set of people who share
the same values, beliefs, preferences etc. Each such segment is called a subculture. Each such
sub-culture has a different consumption pattern or a different buying behavior stemming from
their own personal experiences. Samsung should focus on selective subcultures which can
generate relatively more demand as compared to others so as to maximize their revenue from
the operations. For example: Samsung can target their marketing efforts towards upper middle
class or the upper-class families in Tier I cities for the new refrigerator.

Economic Environment

• Consumer Psychology: Consumers who are interested in buying the latest technology and
being upgraded with time are our target markets. Consumption Expenditure patterns of the
market can be determined by carrying out market surveys on the basis of which the target
market can be determined through STP analysis.
• Income Distribution: The top one per cent in India earned 21 per cent and the top 10 per cent
earned 56 per cent of the country's total income in 2019. This inequality is increasing year by
year. The bottom 10 per cent earned only 3.5 per cent. Wealth distribution tells a similar
story. The richest 10 per cent Indians owned 80.7 percent of wealth in 2019.
 As India comes into very low, very high incomes patterns. Our target market will be high
income groups as they can afford our products.
• Income, Saving, Debt, and Credit: If credits are easily available to the people of the economy,
it increases people's purchasing power. This increases the demand of the products in the
economy.
Saving is good for the economy as it provides investment to businesses but in the short run
saving will decrease consumption which leads to fall in demand. In the long run, saving leads
to growth in the economy so it will end up in an increase in consumption and demand. Samsung,
should closely monitor the savings and investment levels in the economy to come up with
pricing and other financing plans which can stimulate higher sales.

Political & Legal Environment

Political factors consist of those aspects which manages the public affairs and their respective
impact on business. Legal factor which defines the framework in which a business has to
perform as per the law of land.

Certification and clearance: As our product come under electrical appliances category, it need
to be certified from Bureau of Indian Standards (BIS) and accredited by NABL to ISO 17025
as per ministry of Electronics and Information Technology guidance.

Natural Environment

Pollution is one of the most dangerous killers across the globe, with over 100 million people
getting affected by it. This is comparable to the much-dreaded diseases like HIV and Malaria.

Talking about Samsung, it is very important for the company to integrate the environmental
issues into the strategic plans it undertakes, before launching the refrigerator so as to generate
a positive response from the market. Here are the important factors pertaining to the Natural
Environment that the company must address before launching the product: -

• The emission of halocarbons: Halocarbons are the Ozone Depleting Substances (ODCs)
which include CFCs, HCFs and HFCs – the major pollutants released into the environment by
refrigerators. With these emissions increasing at an alarming rate, it’s high time that company’s
 focuses on coming up with eco-friendly innovations (which it has already started in the past)
and curate their products to the environmental needs.
• Climate Change and contribution of the industry in same: Climate Change is one of the top
10 threats terrorizing the Mother Earth as per WEF’s Global Risk Report 2020. Synthetic
Compounds, which find their origin in the Electronic Appliances such as refrigerators are
released into the atmosphere contributing to the sharp spike of greenhouse gases and other
harmful ingredients in the environment.
• Sustainable Supply Chain: The optimization of supply chain is incremental to Samsung’s
success in the long run. Having a product portfolio as diverse as Samsung’s, it becomes
important for the company to ensure that it does not suffer from any fallacy such as the use of
child labor, under-compensation at the factory level etc.
• Efficient use of resources: From selling noodles and groceries to becoming a tech giant of the
modern world, Samsung’s product portfolio ranges from apparels to telecommunications
equipment, from medical equipment to home appliances. The way Samsung utilizes the
resources (mainly the non-renewables) that goes into the production of such a wide variety of
can play a significant role in its salability and profitability.

Technological Environment

Technological environment refers to a country’s state of science and technological

advancements and its related aspects such as institutional arrangements for development, rate
of technological progress, application of new technology, etc.

The following aspects give a better understanding of the effects of technological environment
on the consumer appliances industry:

• Unlimited Opportunities for Innovation: The advent of technological reforms brought with
it innumerable opportunities for innovation, at an accelerating pace of change. The time
between idea and implementation is shrinking. Owing to this, consumer appliances industry has
the ability to innovate the refrigerator category and launch a smart refrigerator that makes use
of an Artificial General Intelligence or Strong AI to gather consumers’ health information and
provide food refill recommendations for the refrigerator.
• Varying R&D Budgets: Progress in the Research and Development (R&D) work of an
industry can aid the process of creating innovative products, within it. The varying R&D
budgets, across countries, have affected the growth of consumer appliances industry. This is
evident in the case of South Korea. In 2020, it was the world's leading spender on R&D, as a
percentage of gross domestic product (GDP). This proved to be instrumental in paving a way
for South Korea to become the most innovative country in the world.
• Increased Regulation of Technological Change: Introduction of new technologies brings in
the need for increasing regulations on them. Government regulations ensure that the consumers’
personally identifiable data is not misused, especially by technology-driven industries.
Digitization and automation are also changing the way regulations are written and complied
with. New products are analysed by regulators to determine if they can be covered under
existing regulations or require to be subjected to new rules. Samsung, taking a lesson from
Facebook has to pay special attention so as to prevent any misuse of user data.

Government Policies

Government factors consist of those aspects which are uncontrollable in nature and change as
per government policy and approach.
• Tax and Economic Policies: As our product comes under Tax component of 28% of sale price
in our product as per GST Act. If any change in such rate by ministry of finance, it will have
major and direct impact on sales price of our product.
• Foreign Trade Regulations: Government of India providing many benefits for the setup of
industry like R&D costs subsidiary, no complicated process, relaxation in taxes, easy access to
funds and tax subsidiary. This would create ample of opportunities for industry setup.
 1(b) Industry forces as per Michael Porter’s Five Forces

In this part of the assignment our group has analyzed the industry forces which will play a
significant role in the product-introduction stage of the Samsung Refrigerator: -

• Threat of New Entrants: This threat is more prevalent in the industries which are
characterized by less-differentiated products. As a result, the new entries might challenge the
existing firms to decrease their prices to remain competitive which puts a cap on the profit
potential.
Threat of New Entrants – Low: Although, the cost of entering into the refrigerator market
in India is relatively low with quick access to the raw materials such as the metals, coolants
etc. and wide array of mediums to advertise the products, the threat remains quite insignificant.
This is mainly because Samsung has established itself as a leading player in this market and a
consumer when purchasing a high-priced consumer durable would rather invest in an
established and trusted brand rather than going for a new brand especially in the higher-price
bracket (>30,000).
• Rivalry Among Existing Competitors: An intense rivalry among the existing companies in
the industry might drive them to cut-down prices, spend more on promotion which brings down
the profitability. Rivalry might also be aggressively affected by the number of competitors,
high exit costs etc. Rivalry Among Existing Competitors – High: There are numerous
prominent companies competing in this industry such as Whirlpool, LG, Panasonic, Godrej
etc. Samsung will have to compete with them not only in terms of price, but also in terms of
technology, customer service etc. in order to remain viable.
• Bargaining Power of Buyers: High bargaining powers of buyers might bring down product
prices to maximize the value they receive out of the product. The powers are inversely
proportional to the size of the buyer market while directly proportional to the size of the seller
market. Bargaining Power of Buyers – Low: The refrigerator market in India is characterized
by a huge buyer market with millions of product demand generated every year. Moreover,
buyers of the high-end product models (such as the new Samsung refrigerator) are not price
sensitive and purchase such models for better comfort and also sometimes out of the Snob
Effect.
• Bargaining Power of Suppliers: Just as in the case of the buyers, the bargaining power of
suppliers is inversely proportional to the number of supplier choices available for the company.
Also, if switching cost involved in changing suppliers is high, the power of suppliers increases
significantly. Bargaining Power of Suppliers - High: Even though the raw materials (as
mentioned before) can be procured quite easily, the sources of such supply are quite limited.
Moreover, it will involve high switching costs for Samsung from one supplier to other such as
the transportation costs, uncertainty around the kind of services provided.
• Threat of Substitute Products: Substitute products which can provide a relatively high
performance at competitive prices pose a great threat to any business. Threat of Substitute
Products - High: Companies like LG and Whirlpool can manufacture refrigerators that
provide a unique value proposition which can create a lasting impact in the potential customer’s
minds. Hence, while launching the new refrigerator it will be very important for Samsung to
closely analyze the substitutes in the market to provide a unique value addition.
 1(c) Influence of the above-mentioned elements on Marketing Decisions

Demographic Environment

1. Even though the target audience would be the working force which is 39 % of the total
population, the end consumer will be both the working as well as the non-working population.
2. India is a highly diverse country. Samsung needs to maintain the ethnic and cultural factors in
order to cater and expand its market by providing- multilingual compatible products, products
adaptable to regional requirements.
3. In India, approximately 48.99% of the population are in a joint family system where there are
more than 4 members in a family thus the requirement of such a family is higher in terms of
capacity of fridge(litre) compared to nuclear families where there are lower number of family
members.

Socio-Cultural Environment

1. Taking the example of what Coca-Cola did upon re-entering the Indian market in 1993,
Samsung should simultaneously start working on projects which address the social issues in
the country. For example: Samsung can come up with a scholarship program for girls in the
rural areas to finance their higher education (post Class X) with criterion in terms of income
bracket, marks scored in Class X etc.
2. Continuous improvements in technology with a focus on reducing the pollution pressure on the
environment and limited use of resources will help the company to promote strong ethical
values and impart strong brand loyalty.
3. When launching the refrigerator, Samsung should try to come up with diverse color variations
to match the lifestyle and beliefs of the different subcultures which make up the target market.
For instance, a subtle color such as black or grey will attract groups with a more professional
outlook to their lives (age group of 30 and above) while eye-catching variations such as green
or red will influence groups with a funkier lifestyle (age group of 25-30).
 Economic Environment

1. Backed by market surveys, the new Samsung refrigerator will satisfy the urge of the target
consumers to stay updated with the latest technology and will positively influence the consumer
buying
behavior.
2. The refrigerator comes with state-of-the-art user interface to cater to the health needs of the
modern-day consumer. These new features will make it more expensive and hence the
consumers belonging to high income groups (upper middle class and higher class) will be able
to afford the refrigerator. Owing to the high electricity consumption factor, the product will be
more feasible in metro & Tier I and Tier II cities.
3. Since the product is high priced, Samsung can launch lucrative financing options for the
refrigerator (such as 0 cost EMIs). This will not only make the buying process more efficient
for the potential buyers but also increase the size of the target market to include those customers
who do not have ready funds available to buy the product.

Political & Legal Environment

1. As Samsung deals in western countries, it has very high perimeters of quality standards, it can
easily qualify the Indian legal standards.
2. Since the political dynamics of India is divided into Central and State sometimes which has
very adverse effect on the business.
3. Law regarding manufacturing and carbon discharge are not very harsh in India as compared to
European countries which will reduce the cost of production.

Natural Environment

1. Samsung already has an Eco-management value system in place since undertaking the Samsung
Environmental Declaration in 1992. Under this value system, the company focuses on making
its products through modern innovative technology which makes use of fewer resources and
contributes lesser emissions. Apart from this, Samsung can focus on curating their products to
individual countries by setting up manufacturing plants in the nations so that the products can
match the emission levels of respective countries. This is important because a product which
 can be environmentally sound in one country can’t be in another. Take the example of India
and Austria. Being country-specific, also promotes a strong brand loyalty.
2. Samsung should focus on maintaining a reduced Greenhouse Gasses (GHG) Emissions on the
new product just as it has done previously. A positive score on Climate Change KPI will help
the company to garner positive response from the target market. It can run marketing campaigns
on the positive environment performance of the new refrigerator to get the potential customers
hooked. For reducing the GHG emissions of the product, the company can use its already
established energy conservation systems and emission reduction facilities.
3. The company should pay special attention to ensure that all international and national standards
pertaining to criteria such as labor laws, management accountability etc. are complied with to
prevent any controversies in the product introduction stage. The company should deal with only
those suppliers who have a positive environment-friendly approach towards production. For
this purpose, the company can take into consideration measures such as the Fair Factories
Clearinghouse Score.

Technological Environment

1. Countries should not be reluctant in assigning R&D budgets for technological progress as it
would eventually help in innovation of their products. It can in turn help in better utilization of
its resources and in saving costs.
2. Samsung should make a judicious use of R&D data to incorporate innovation in the existing
industries as well as in the creation of newer, disruptive industries that can help further the
cause of improvement in living standards.
3. New government rules and regulations should be introduced that can cater to the growing
technological changes. It will help the consumer from being taken advantage of, by the various
industries.

Government Policies

1. As per Indian taxation policies (GST), our product comes under 28% tax category which is
very higher as compared to other countries and this will ultimately increase the price of our
product.
2. To promote MADE IN INDIA, government of India providing many benefits to foreign
manufacturers to establish their plant in India.
3. India is a good place to start business for foreign companies as Foreign Direct Investment (FDI)
policies are in the favour of big investors.

Industry Forces

• Threat of New Entrants: In order to tackle this threat, Samsung can: -

▪ Keep innovating and coming up with new products which will not only target new
customer groups, but also keep the existing ones satisfied by keeping change as the only
constant in their lives.
▪ Reduce the cost of production of their products so that they can pursue competitive or a
penetrative pricing policy to cut off the market competition. This can be achieved by
attaining economies of scale.
▪ Keep their R&D budgets high, to keep looking for new environmental opportunities to
capitalize on.
• Rivalry Among Existing Competitors: In order to tackle this threat, Samsung can: -
▪ Focus on creating lucrative product differentiation compared to the competitors.
▪ In the long run look for acquiring small competitors (nichers) who shows potential to not
only reduce competition but also add on to the existing customer base.
▪ Improve economies of scale that will help the company to face the competition better.
• Bargaining Power of Buyers: In order to tackle this threat, Samsung can: -
▪ Focus on building a large customer base in the 1st place since the size of the customer base
will be inversely proportional to the bargaining power of the buyers.
▪ Keep consistently innovating and coming up with new products will reduce the switching
rate of customers from Samsung to its competitors.
▪ Run promotional campaigns with price discounts and other offers on relatively older
products (launched a year back or so) can increase consumer inclination towards the
company.
• Bargaining Power of Suppliers: In order to tackle this threat, Samsung can: -
▪ Develop an efficient supply chain along with multiple supplier options in case of
emergencies and in order to keep the switching costs at a minimum.
 ▪ Experiment with different raw materials for the same product so that even when the price
of one raw material goes up, it always has other feasible options in the backdrop.
▪ Develop supplier relationships with those manufacturers, a large part (or whole) of whose
business depends on the company to reduce their bargaining power. Just like what Wal-
Mart or Nike was able to do.
• Threat of Substitute Products: In order to tackle this threat, Samsung can: -
▪ Focus on being service oriented as well (better after sale services) rather than just being
product oriented.
▪ Aim to satisfy the core customer need (user experience) rather than focusing on just what
the customer is buying.
▪ Attempt to increase the switching cost of the buyers.
 2. Study of the Competitive Behavior

2(a) What is the market situation: size of the market, growth rate and trends?

Size of the refrigerator market: Revenue in the refrigerators segment amounts to US $13,195
million in 2021. The market is expected to grow annually, with a CAGR (Compound Annual
Growth Rate) of 3.24% between 2021 and 2026. In the refrigerators segment, volume is
expected to amount to 27.80 million pcs. by 2026 and show a volume growth of 2.8% in 2022.
The average volume per person is expected to amount to 0.02 pieces in 2021.

Smart refrigerators market size is estimated to grow at the rate of 16.65% CAGR between 2019
and 2026. The global industry shipments are projected to reach 2 million units by 2026. Rising
smart home establishments, increasing penetration of intelligent appliances and growing
consumer awareness are driving the smart refrigerator market globally.

Growth Rate: The Indian refrigerator market has increased with a CAGR of more than 15%
over the last five years, and is expected to grow more in the coming years.

Environmental changes, huge untapped market, rising household income, easy availability of
credit, improved living standards, increased number of nuclear families and rapid urbanization,
have been the major growth drivers for the refrigerator industry.
 Trends: The refrigerator market is broadly divided into two product types, direct cool
refrigerators and frost-free refrigerators. Going by the trends, out of both the types, frost free
models will occupy a larger market share in the future. The most common sizes are 180-220
litres in direct cool refrigerators whereas in frost free refrigerators it is 225-300 litres. Direct
cool models with lower capacities have the highest market share and are mostly preferred by
middle-class Indian consumers. In frost free segment, models with larger storage capacities are
witnessing huge growth while lesser capacity models have a modest share.

2(b) What is the market structure for the chosen product category?

Samsung operates in a market that is clearly OLIGOPOLY.

Samsung Electronics plays a vital role within the electronics business in explaining the market
structure of oligopoly. The firm has numerous competitors such as Apple, LG, Sony,
Microsoft, Vivo and many more. Samsung Electronics, tend to be the dominant manufacture
and have the largest market share of electronics globally. Consequently, Samsung Electronics
underscores by functioning in an oligopolistic market. It is among the prominent manufacturers
of electronics globally, with one of their best-sold commodities being smartphones.

It is extremely difficult for outside firms to enter in this market due to the barriers, which
prevent the entry of new firms into the industry. Only those firms enter into industry which are
able to cross barriers. As a result, Samsung can earn abnormal profits in the long run.

Also, Samsung is interdependent on other electronic companies which means that the action
of one firm affect the actions of other firms.

Due to severe competition and interdependence of firms, Samsung involves in various sales
promotion technique used to promote sales of the product. Firms under the oligopoly relies
more on non-price competition.
2(c) Briefly describe the profile of the main players, market shares and the marketing strategies
followed by each.

India's Refrigerator Market

Other
15% LG
Godrej 31%
12%

Videocon
16%
Samsung
26%

LG Samsung Videocon Godrej Other

1. LG: Market Share: 31%

Segmentation of Product: The company has segmented based on the product usage like
tech-savvy generation used smartphones and families and couples used home appliances.
They make sure to have a wide range of products to increase their presence in the market.

Pricing Strategy: LG follows a “cost plus fixed mark-up” policy in which every factor is
thoroughly analysed, evaluating its own costing and the market research. Policy of price
competitiveness for the rural areas is being followed by companies to reach out to the rural
base in every nook and corner.

Promotion Strategy: The company aims to sell its products directly to consumers, so it
focuses on different advertising channels including magazines, newspapers, and the Internet.
Providing huge deals, they aim to increase sales of their product.

2. Samsung: Market Share: 26%

R&D and Product Development: Samsung invests heavily in innovation and R&D. They try
to bring innovation in the industry. Focus on the product development and design makes the
product worth the price. Samsung involves a team of designers who collaborate closely with
the firm’s engineers, manufacturing teams, and marketers.
Promotion Strategy: Samsung focuses on building brand image through various promotion
activities. Aims to bring new innovation, they also aim to talk about a new product with the
new features that can simplify your life.

3. Videocon: Market Share: 16%

Product Strategy: Videocon has more than 150+ products covering every nook and corner of
electronics products. It includes consumer electronics, home appliances, Compressors, office
automation
Place Strategy: In India, Videocon has seventeen manufacturing plants and it has
manufacturing units in Mexico, Italy, Poland and China. The company has developed an
organized networking channel which enables it to handle its distribution policies efficiently.
Pricing Strategy: Videocon has tried a penetration pricing policy in which lesser prices than
market is used to penetrate in the market to ensure easy affordability. Through this strategy,
the company tried to capture untapped consumers in rural areas.
Promotion Strategy: Company focuses on female promoters as they believe female
promoters are able to understand the products better to homeowners. They also organise free
camps to give better understanding of every product.
The company has a toll-free number 2-2-2 through which quick responses to all the queries
are addressed.

4. Godrej: Market Share: 12%

Distribution Strategy: The company’s distribution channel operates through Wholesalers
and Retailers, which help them to reach rural and urban markets. They have maintained
effective channel distribution with all Indian distributors.
Pricing Strategy: Godrej has decided to keep its pricing policy competitive and individual.
Because of keeping a good strategy, they are able to penetrate the market, maintain the
demand. They keep all the prices according to products as well as target audience.
Promotion Strategy: Godrej did their best to promote their product with various
advertisements. Various celebrities like Amir Khan, Hrithik Roshan represent and promote
their products.
Packaging: Godrej puts focus on packaging as it is the first encounter of a potential customer.
They have given a lot of thoughts and labelling of the products. Labelling is in three
languages made it comfortable for the consumer to understand the product.
2(d) Who is the leader, the challenger, the follower and nicher?

Leader: LG is the top refrigerator brand in India acquiring 31 % of the market share.

LG has come up with various innovations and technology like LG’s Inverter Linear
Compressor, providing 51% power saving as well as Insta view Door in Door technology which
has sleek mirrored glass with which consumers can see the product inside with just two taps on
the glass.

Challengers: Videocon: There are 50+ models ranging from 50 liter to 650 liter with direct
cool technology, the design which keeps the consumer intrigued in product and which has led
to acquiring 16% of the market share.
It is the third-best (after LG & Samsung) thus being an immediate competitor of Samsung.

Whirlpool: Whirlpool is among the top refrigerator brands in India acquiring 11% of the
market share. Whirlpool array of fridges includes single door, double door, multi-door, and
French door refrigerator.

Nicher: Godrej: Godrej ranks 4TH among the top 5 refrigerators in India acquiring 12% of the
market share. Godrej comes with Bottom mounted refrigerator, Frost-free refrigerator, and
Direct cool refrigerator which are the top products of Godrej in the refrigerator section. Godrej
targets the middle (& lower middle) class people for their refrigerator market.

Followers: The followers will include the other companies which comprise of rest of the 30%
of the market share. The company would be -Electrolux, Hitachi, Haier, Siemens, Sharp, Bosch,
Toshiba, Voltas’s refrigerator, Blue Star etc.

2(e) Any interesting observations of the category?

1. Samsung first introduced the refrigerator in 1995, soon after it started dominating the market
and in just 6 years it became the market leader.

2. Samsung has the world's biggest refrigerator manufacturing, is situated in Noida, which can
produce 3 million units per annum.

3. Samsung has two manufacturing plants in India one in Noida and the other in Sriperumbudur,
which in total employs more than 1,20,000 workers.
 4. Samsung invests a lot in Research & Development, in India it has 5 R&D centres which gave
employment to 40,000 genius minds.

5. Samsung has annual revenue of $211 billion (bigger than the GDP of 161 countries) and
annual profit is $21 billion (bigger than the GDP of 86 countries).

6. Samsung spends more than $10 billion just on marketing.

2(f) What must be the major source of revenue for this category?

The major sources of revenue from this category can be enumerated as follows:

• Direct Sales: Just like any other product or service category, the major source of revenue for
the new Samsung refrigerator will be the sales revenue it receives from the consumer market
after an effective STP Analysis.
• Product Upgradation: Another source of revenue for the company will be from those
customers who like to keep themselves updated with the latest trends in the market. For them,
Samsung can roll out an offer to upgrade their existing refrigerator with the new one by
exchanging their old product and paying the extra amount. The price of the old product will
be derived on the basis of the time of usage, year of launch, any damages etc.

2(g) What would be major marketing costs?

The major marketing costs incidental to the new product launch are as follows:

• Advertising: This is the most significant cost to be incurred by Samsung for the launch of the
product. Advertising costs will be necessary to reach out to the prospective customer base
with a relevant product message in different media channels such as print, broadcast etc.
• Sponsorships: It is very important for Samsung to make the customers aware about the
product before its launch so as to garner a positive response in terms of sales revenue. For
this, the company need to engage influencers (example: Instagram Influencers with
considerable number of followers), celebrities etc. which will form a part of sponsorship costs.
• Media Production: The company also needs to produce commercials and other marketing
media posts which form a part of customer interaction. The budget of these will be directly
 proportional to the sophistication of commercial’s background, the number of props involved,
fees of the parties involved etc.
• Other Promotional Activities: This can include the product launch event, direct mail
campaigns, providing additional offers and gifts with the product to increase popularity,
customer acquisition cost (market surveys) etc. are also the part of major marketing costs to
be incurred specifically for the new products.
 Consumer Behaviour, Segmentation and Targeting

1. Reasons for purchasing the product: -

Obvious Reasons:
▪ For storing and conserving food items to increase their shelf life
▪ For having a ready availability of cold water, ice cubes etc. especially in the hot seasons
▪ For keeping the perishable items such as fruits, vegetables and dairy products fresh

New Insights:

▪ Use for storing medicine, which need cooler temperature like insulin, eyedrop, etc.
▪ Use to store cosmetic products, to prevent dryness like lipstick, lip balm, foundation etc
▪ Curd compartment - Curd making is traditionally followed in India, providing a
compartment special for Curd fermentation which will maintain the proper temperature
and humidity which it requires

2. Consumer Buying Stages: -

Our respondents went through the following stages of purchase process while buying a new
refrigerator:

• Problem Recognition: During our survey, we gave the following problem statements to
choose from as a reason to decide on buying a new refrigerator: -
▪ Existing refrigerator is too old
▪ Existing refrigerator is malfunctioning and needs frequent servicing
▪ Require a larger capacity refrigerator
▪ Availability of a new model with better features in the market
Out of these options, majority of our respondents chose the malfunctioning of their existing
refrigerator as the primary problem, as a solution to which they decide on buying a new
refrigerator. Hence, their buying behaviour is influenced more by internal factors rather than
external (such as arrival of a new attractive model).
Time Taken in the stage: This being a psychological stage (customers identifying the need of
a new refrigerator), it happens almost instantaneously or over a short period time especially
when damage occurs over a period. Approximately: 2-3 days.

• Information Search: Focusing on information search, we asked our respondents on how

they gather information about the various choices available in the market. Based on the
responses, it is quite clear that even in this era of “digital revolution”, consumers still prefer
the personal touch, as visiting physical stores was chosen by the majority of the respondents.
Time Taken in the stage: This is one of the most time-consuming stages where the
consumers try to obtain as much information as they can (such as pros and cons of different
alternatives) before taking a decision especially for a premium priced product such as
refrigerator. Approximately: 10-15 days.
• Evaluation of Alternatives: We gave our respondents a wide variety of criterion as options
to choose from, on the basis of which they evaluate the different buying options
(refrigerators). They were as follows:
▪ Price
▪ Power Consumption Efficiency
▪ Brand
▪ Capacity
▪ Warranty and Guarantee
▪ Colour or Design
▪ Any other criteria

India being a price sensitive market, chose Price as the most decisive factor while assessing
the choices. This was followed closely by Power Consumption Rate which can be because
of the following reasons:
1. Perpetual Savings on Electricity Bill
2. Reducing the environmental impact of using appliances which use a lot of energy

Another important observation from the above graph is that color or design of the product
is the most insignificant factor for evaluating the available refrigerator options. This shows
that in case of technical products such as consumer appliances, buyers are more attracted by
the intrinsic features and specifications than the extrinsic look of the product. Another
 prominent example can be Laptops, where buyers prefer models with higher ram, better
processor as compared to a glossy and shiny exterior.
Time Taken in the stage: This is again a comparatively time-consuming stage where
consumers have to choose among products of different brands. This stage involves going
through customer reviews, expert reviews (such as on YouTube), opinions of acquaintances
(such as reference groups) before making an informed decision. Approximately: 1 week.

• Purchase Decision: We can’t assume that the consumers in the market are rational and base
their decision solely based on the criterion mentioned in the previous points. Their decision
is influenced by certain external factor as well. In our survey we asked our respondents such
factors that influence their buying decision, from the following options:
▪ Advertisement (Digital as well as Print)
▪ Buyer Reviews
▪ Opinion of closed ones

Based on their response, it can be concluded that consumers rely more on reviews of past
buyers, rather than depending on any other kind of advertisements. This is a clear indication
that companies need to focus more on a positive user experience (such as after sale services)
compared to any other form of marketing activities.

Time Taken in the stage: After deciding on the product to buy, purchase decision can either
happen instantaneously or the consumers can take some time for example: waiting for a
discount during festival season. Approximately: 2-3 days or can span longer such as a
month.
• Post Purchase Behaviour: We know, post purchase satisfaction occurs when the product is
able to meet the expectations of the consumers. To understand about the various satisfying
factors, we asked our respondents about the options that influence their satisfaction from the
refrigerator. With 1 being least influenced by that factor and 4 being highly influenced.

According to our responses, performance is the most important satisfying factor for the
consumers. On being asked for how long do they use a single refrigerator, majority of our
respondents stated the duration to be more than 5 years. This shows that the existing products
have been successful in meeting the desired expectations.

Time Taken in the stage: This is the most time taking stage as the consumers need to use
the product for a substantial period of time before they can form an opinion whether the
refrigerator was able to meet their expectations or not. Approximately: 1-2 months.
3. Post Purchase Dissonance: -

Post-purchase dissonance occurs when a customer feels unsatisfied after buying the product or
experiencing a service, because of deviation in actual product and customer expectation. This
results in customer regret or purchase return.

Post Purchase Dissonance in the long term leads to dilution of brand image. This is why brands
always prioritize quality and customer satisfaction over anything else.

As per our survey, we can see that after purchase of refrigerator customer satisfaction mostly
depend upon durability and performance followed by power consumption and after purchase
service which we can see in the graph above.

Customers want refrigerators with high durability as our survey shows. People generally use
one refrigerator for more than 5 years and the also consider performance as a major factor at
the time of purchase.

4. Product – Need Set: -

Based on our survey, we have been able to formulate the following product-needs set for the
refrigerator market:
1. Price
2. Power Efficiency
3. Capacity
4. Warranty and Guarantee
5. Durability
6. After Sales Services

Clustering customers with similar need sets:

1. Price: Majority of our customers, 80% consider price as the most desirable factor for
buying refrigerator. A low-cost refrigerator is more attractive in a developing economy
like India, which is characterized by a large middle-income customer base.
 2. Power Efficiency: Power consumption of the refrigerator directly affects the
consumer’s desirability factor as they are aware of the recurring costs arising due to use
of electricity.

3. Capacity: 53% of the respondents considered capacity as a major deciding factor for
their purchase. Even nuclear families, today, prefer buying refrigerators with a large
capacity as they relate capacity with luxury. Example: It is often observed in high
income earning nuclear families, that premium refrigerators are used with higher
capacities.

4. Durability: On an average, our respondents use their refrigerators for more than 5 years.
They have to incur heavy expenditure on consumer durables (such as refrigerators).
Hence, they favour products which can provide them with long term benefits in
exchange of their investment.

5. Describing Customer Groups: -

1. Price: The customers who responded that price is the most important deciding factor
for them while buying a refrigerator fall into the income bracket of 6-10 lakhs. This
sample holds true for the Indian customer market in general as well since most of the
consumers fall into the social class of lower middle to upper middle class. Also, the
majority of such respondents were working professionals with salary being their main
source of income.

2. Power Efficiency: The customer group of this category is similar to the one who chose
Price as a deciding factor as well. Apart from that, potential consumers who chose this
option fall into the age group of 20-25 which shows their strong social values as they
want to minimize the power consumption on their end, which bears on their sincere
personality.

3. Capacity: Consumers across all age and income groups chose this option which is
evident of the fact that capacity as a deciding factor is important to all customer groups
 irrespective of any demographic, psycographic or any other such factor.

4. Durability: Consumers who desire durability from the product are in the age range of
25-35 which is primarily the age group of newly married couples or consumers having
a family of 3-4. Such individuals experience a sudden increase in their overall
expenditure in the form of education, health etc. as they move from one life stage to
another. This is why they become more aware of the one-time expenditures which form
a major chunk of their income and want those expenditures to give returns in the long
term such as a refrigerator.

6. Target Segment: -

1. Segment Size: The majority of demand for refrigerator in India is from Urban area. The
consumption pattern of people from urban area is very different from the people of rural
area. Factors such as environmental changes, increase in income, increase in standard
of living. People with higher income and standard of living are tend to purchase smart
refrigerator.

2. Segment Growth Rate: Due to rapid urbanization, rising number of nuclear families,
increase in standard of living, improvement in technology have played a key role in of
driving the growth in refrigerator industry. The Indian refrigerator industry has shown
a growth of 9.3% from 2016-2021.
Increasing consumers disposable income, high standard of living, need to upgrade,
declining prices, and improvement in technology tend to grow the refrigerator market
in the upcoming years.

3. Segment Accessibility:
• Digital Media: With search engine optimization it has become easier to find when
someone is planning to buy new refrigerator so company can advertise on their social
media. Company also uses television advertisement and Ecommerce pop ups
advertisement.
• Print media: Company can increase their accessibility by advertising in newspaper
at the time of festive season as Indian are used to buy new electronics in festival
 season. Company also uses banners, posters, pamphlets, etc.

7. Implications for Marketing Decisions: -

We are planning to launch an AI-based refrigerator under the brand name of Samsung. It will
capture the health-related information of all the members of the family and provide
suggestions for the type of food to be consumed by them, to bring in healthy lifestyle changes.
As per our survey, more than 90% of respondents are willing to buy refrigerator with AI
(Artificial Intelligence).

• Durability: Most of the consumers prefer to buy a new refrigerator once it starts
malfunctioning or requires frequent servicing. People are more likely to buy a new
product rather than continuously spending on the repairing costs. The product that we
would be launching will be made durable so that frequent servicing of the same would
not be required.

• Power Efficiency: Since power consumption is also one the major factors for
customer before buying refrigerator, our product will consume less power which will
make it more attractive among other alternatives available in the market.

• Advertising: Advertisements play a key role in making customers aware of the new
product launches in the market. So, to attract more customers the company can allocate
funds to advertise the product, both digitally as well as through print media.

• Product Availability: People mostly tend to buy heavy electronic products from
physical stores rather than relying on E-commerce platforms. Due to this reason, we
will maintain a strong presence in the physical electronic stores, along with making
our products available on online stores.

• Warranty and Guarantee: Before buying any expensive product, people usually take
its warranty period into consideration. Our product will provide two-year guarantee as
compared to the one-year guarantee provided by the competitors. Apart from this in
the third year of the product we will be charging only 50% of the servicing costs.
Based on our earlier reports, Samsung has a share of 26% in the Indian refrigerator market.
Samsung, thus is the market challenger to the current market leaders, LG. By launching our
product, Samsung will be launching a Flank attack against LG since it can be the first brand to
recognise the shift in focus of Indian consumers to a healthier lifestyle. This shift will create a
gap of refrigerators which focus on the well-being concept of the consumers, which can be
fulfilled by Samsung. Moreover, the refrigerator also comes with the AI feature, which will
give the much-desired personal touch to each of our buyers.
 Product and Communication Strategy

1. Product Characteristics and Consumer Benefits: -

Samsung is a market leader in the consumer appliances category. Every year, Samsung spends
billions of dollars to bring innovation in the market that will make consumer life easy. Last
year itself they spent around $14.6 billion in R&D. which is the 4th largest budget for R&D for
any company.
Samsung is dedicated to revolutionizing the consumer life with rigorous innovation in their
product. In this fast-moving world, where people find it difficult to have enough time to make
a conscious decision about their eating habits, Samsung would prove to be a game changer
with their new refrigerator (Cosmos). Cosmos comes with multiple sensors and artificial
intelligence to help consumers arrive at the right choice.
Cosmos connects with smart Samsung wearables which continuously monitor the health of
the user and sends this data to the refrigerator. Artificial Intelligence is used to provide the
best food suggestions on the screen of the refrigerator door. These suggestions are based on the
user's current heartbeat rate, blood pressure levels, cholesterol level, medical history, health
targets, and allergies. Cosmos also makes use of the Machine Learning algorithms to
personalize and improve the given suggestions. It comes with a Facial Recognition system
that detects which user is opening the door of the refrigerator to give suggestions accordingly.
Cosmos is loaded with sensors like
• Computer Vision: Cosmos has cameras inside the refrigerator that continuously
monitors contents available which has two major benefits:
1. The camera detects which food and beverages are expired from the markings
on food containers and beverage bottles.
2. It also helps the user to know the items that he/she is short on, in the refrigerator
and adds that to the shopping list automatically.
• Electrical Gas Sensors (EGS): It can detect the spoilage of food by measuring the
amount of ammonia and trimethylamine in the refrigerator and alert the user to remove
it.
Samsung refrigerator has many competitors but Cosmos has no current competition owing to
its innovative design and features. Such a model has not been launched in the market yet.
2. Product Levels: Customer Value Hierarchy: -

• Core Benefit: It is the service or a benefit, the customer is buying. For refrigerators,
the core benefits would be to keep beverages cold, make ice cubes, prevent food from
getting spoiled and make it last longer.
• Basic Product: The marketer must turn the core benefit into a basic product. Thus, a
refrigerator includes a freezer, vegetable tray, shelves, drawers, and ice cube trays.
• Expected Product: It includes a set of attributes and conditions that buyers normally
expect when they purchase a product. A refrigerator that uses less
electricity, gives better and long-lasting cooling, has a longer guarantee and warranty
period, and offers good after-sales services, would be an expected product.
• Augmented Product: It refers to a product that exceeds customer expectations. A
product that will provide a two-year guarantee compared to the one-year guarantee
provided by the competitors. Apart from this in the third year of the product if they
charge only 50% of the servicing costs, it might be termed as an augmented product.
• Potential Product: A product that encompasses all the possible augmentations and
transformations that the product or offering might undergo in the future, makes it a
potential product. Our refrigerator offers a facial recognition system that works along
with AI and machine learning algorithms to provide optimized suggestions to the users.
Also, it can detect the spoilage of food through electrical gas sensors.

3. Market Leading Brands: -

The top two market leaders are LG and Samsung acquiring 31% and 26% of the market share
in the refrigerator category in India.
• Differentiation: Both the brands provide almost similar styles and functionality in
refrigerators. But Samsung leads in innovation while LG leads in design. There is a
difference in the technology used by both the brands; Samsung uses a digital inverter,
whereas LG uses a linear compressor. Samsung refrigerator with its top-of-the-line
construction, design, innovation, and product quality has become one of the most
successful electronic companies in the world. LG is the only brand that stands up to
Samsung in terms of innovation, product quality and consumer services.
• Brand Positioning: It can be considered as the conceptual value that the company
wishes to create in the targeted audience or market. Samsung has the positioning
statement ‘look beyond the normal’, in which they have positioned themselves as not
only a visionary and leader but also innovative, creative and a brand which constantly
strives to grow and innovate. This helps in targeting the consumers who are looking for
up to date, latest technology and design. Whereas LG has positioned itself with the new
statement ‘it’s all possible’ set next to its ‘Life’s Good’ across all marketing activities.
LG wanted consumers to think of it as the brand with which life becomes easier and
enjoyable.
• Unique Brand Elements:
Samsung:
i. FlexZone technology is one of the unique features of Samsung
refrigerators, which temporarily converts your fridge to a freezer and vice
versa at the push of a button.
 ii. Autofill Water Pitcher, which automatically fills cold water in the container
ensuring consumers don't run out of the cold drinking water. It also has a
feature that allows the consumer to blend the flavor of their favorite fruit or
tea in water.
LG:
i. The InstaView door, a door with a glass panel that lights up the inside of the
fridge with two taps on the glass, allowing the consumer to view inside the
fridge without opening the door.
ii. LG LoDecibel Operation Technology is a technology that ensures that the
noise produced by the fridge rates from 44 decibels to 48 decibels, which
ensure that the fridge is quiet even if the compressor is running.
iii. One of the unique features of the high-end LG Refrigerator is that it
produces spherical ice, which is said to last longer than the usual ice cubes.
• Target Group: The target group of Samsung and LG are quite similar. LG is targeting
the consumer age group of 30-50 whereas Samsung is targeting consumer age group of
25-45. Both of the brands target the upper and middle-income group and they both
provide services to all income groups.

4. Annual Turnover of the Company and Marketing Expenses (Advertising and

Marketing Communications): -

The annual turnover of Samsung for the financial year 2020-21 was $1,22,400.29 Billion. As
evident from the financial statement, the company’s turnover decreased by 1.86% from the
year 2019-20 ($1,24,730.96 Billion).
The advertising expenses incurred by Samsung for the financial year 2020-21 came to a net
total of $4.27 Billion. Sales promotion expenses for the same period were $5.87 Billion.

5. Target Audience for the new product: -

Since the refrigerator comes equipped with Artificial Intelligence, the price (the most decisive
buying decision factor) will be on the higher side in a range of ₹75,000 – ₹85,000. Hence, the
product will fall under the category of premium product and have a niche target segment, i.e.,
a single segment the customers of which have the following characteristics:

• Geographic Location: Owing to the fact that the new refrigerator is technologically
advanced as compared to the other refrigerators and focuses more on inducing a healthy
lifestyle, hence the potential consumers will generally belong to Tier-I and Tier-II cities.
• Social Class: Talking about the social class based on income groups, the target market
will be made up of buyers belonging to upper middles, lower uppers, and upper uppers.
Such classification is done to address the affordability factor of the refrigerator.
• Lifestyle: The product will mainly attract those customers who have a sophisticated
and health-oriented lifestyle. The product is a symbol of luxury and at the same time
caters to the health needs of the users.
• Generation: The potential consumers of our product will naturally be the Millennials
(or Gen Y) born in and after the 80s, as they are the generations of tech-savvy
individuals for whom, such a product will be of keen interest.
 A single-segment target market will help Samsung to gain deep knowledge of the segment’s
needs and achieve a strong market presence. First mover advantage combined with
concentrated marketing will help Samsung to capture segment leadership.

6. Perceptual Map for our product: -

The perceptual map provided below was developed by our group based on the relationship
between pricing and applications of modern technologies and innovations into the refrigerator,
in the context of consumer perceptions.

Notes: 1. The brand names mentioned are with respect to that company's normal product
offerings and are not exhaustive. For example, LG does offer refrigerator models in an
affordable pricing range with traditional specifications (to satisfy customer segment 2).
2. Samsung has been placed in the premium pricing coupled with the latest technology
(customer segment 3) in view of the new product launch.

7. Positioning and Creative Strategy of Communications: -

The brand positioning of the new refrigerator can be understood through the following Brand
Positioning Statement:
“It is advanced in both style and technology to make families healthy and provide their house
a stylish addition.” - The statement affirms that the refrigerator guides the families towards
healthier eating habits, giving their home a sophisticated look at the same time.

Competitive Frame of Reference: The company will mainly be competing with brands such
as LG, Whirlpool, Panasonic, etc. that offer products in the same category.
POPs with conventional refrigerators:
• Maintains the freshness of eatables and other perishable items
• The ready availability of ice cubes
 • Storage of cosmetic products
PODs with normal refrigerator:
• Stores important health-related data such as your heartbeat rate, blood pressure levels,
cholesterol level, etc.
• Comes with a highly interactive AI
• Every storage slot has a red-light signal which indicates when the respective item is not
edible anymore
Designing Creative Strategy of Communication: Our creative strategy for communication
will incorporate Informational Appeal rather than Transformational Appeal.
Informational Appeals Used: For generating appeal in the market for the product, Samsung
can release product demonstration ads (which communicate the new product specifications
and innovations). All the features that make a consumer's life easier and healthier would be
shown in the advertisements. Social Media can be another way of communicating product-
specific information to our target market. For two-sided communication, the refrigerator can
be placed in some populous venues (crowded shopping malls, supermarkets, etc.) to draw the
prospective consumers' attention towards it. They can use our product and get familiar with the
technicalities of the same.
A store executive will be present to explain the features and how they could be beneficial to
the particular person and his/her family. Proper training for the employees for managing
customer queries with a proper soft skills regime will be critical.
 Executive Summary

Samsung specializes in a wide variety of products in consumer and industrial electronics,

digital media devices, appliances, memory chips as well as integrated systems. On close
examination of the elements of macro-environment, i.e., Demographic, Socio-cultural,
Economic, Political, Natural, Technology, Government policies and Legal environment, we
were able to understand how they influence the marketing decisions. In India, few of these
environments like Demographic, Technology, Government, Socio-cultural and Natural are in
the favor of the company but other factors like Economic, Political and Legal are against it.
India has a huge market base for refrigerators as they have experienced an exponential growth
by tapping into the middle-class income segment, which has provided 15% growth over the
last decade. India has an Oligopoly market structure in consumer appliances as only few
companies hold the market. LG being the biggest market challenger of Samsung in the
consumer appliances category has a slim market difference of 5% points, as both cater to the
same target customer.
We had studied consumer buying pattern through the conducted survey. From the analysis we
could conclude that consumers give more preference to the durability and power efficiency of
the refrigerators. Hence, a company must focus more on improving these factors in order to
improve their consumer base.
Keeping the above factors in mind, we proposed that Samsung could introduce a new
refrigerator, Cosmos, which would connect with smart Samsung wearables to continuously
monitor the health of the user and would send this data to the refrigerator. Artificial Intelligence
will be used to provide the best food suggestions on the screen of the refrigerator door. These
suggestions will be based on the user's current heartbeat rate, blood pressure levels, cholesterol
level, medical history, health targets, and allergies. Cosmos will also make use of the Machine
Learning algorithms to personalize and improve the given suggestions.
These features provided by Samsung will help them in tapping a niche target segment, of people
generally belonging to Tier-I and Tier-II cities, who have an inclination towards a health-
oriented lifestyle. The company could use Informational Appeal as the strategy for
communication and release product demonstration ads to target these potential customers.
 References

• The official website of Samsung –https://www.samsung.com/in/

• An article on Assessing the Refrigerator Market in India on ukessays.com

• Analyzing Businesses through Porter’s 5 forces – www.investopedia.com

• A report forecasting growth, trends, Covid-19 impact of India Refrigerator Market –

www.mordorintelligence.com

• 25 examples of marketing costs – simplicable.com

• Marketing Mix of Videocon – www.marketing91.com

• Marketing Strategies of LG – Marketing Strategies of LG Marketing Essay

(ukessays.com)

• Samsung Financial Statement: Financial Statements│ Financial Information │ Investor

Relations │ Samsung Global |