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Richa Srivastava MS11A044

Portable Refrigerator
MyFridge

PRODUCT
Specifications –

• Works on Compression model
• Comes bundled with an adapter • Removable baskets instead of one deep compartment • Inbuilt battery protection

Competitors TROPIcool® Mobile Fridge cum Warmer – Model Godrej Chotukool Haier portable fridge (if launched in India)

Market Research
 Current Big players in refrigeration industryLG, Samsung, Haier, Whirlpool & Godrej

 Only Godrej and Haier have portable fridges.
 Godrej Chotukool in India  Haier portable fridge in US
Market share of major players

Government Spending in Rural .

8000 crore Rs.15000 crore Rs. Construction material Total Source: CII Report (2008) Rs.65000 crore Rs. footwear etc.35000 crore Rs.173000 crore .45000 crore Rs.5000 crore Rs.Size of Rural Markets FMCG Agri-inputs Durables Automobiles (2 & 4 Wheelers) Clothes.

the proportion of young people going to university will increase from 12% at present to 30% by 2025 Historical data » Rural India Only 8% penetration in rural India. .Target » Students As per Indian government.

Target » » » » Proliferation of brands in urban High saturation levels in urban Greater awareness of brands in rural Ever-growing aspirations in rural » No brand caters to students’ needs of having a cooled drink at an affordable price 24 hrs in his room. . » Loyalty low but absence of competitors.

Cloning of successful technology. Low credibility of Chinese players in the market. Price wars with competitors. . Internal Factors Technological Innovation Aggressive advertising Product range Opportunities Rural India almost untapped market. Changing aspirations and income levels Potential for servicing other developing nations Threats Regular sized fridges New competitors. External Factors Growing college going student population in the country.SWOT Analysis Strengths Weakness Longer development cycles Higher cost of production due to heavy advertising.

16 0. Price wars with competitors.24 3.48 1 2 Regular sized fridges Cloning of successful technology. Changing aspirations and income levels THREATS 15% 15% 4 4 0.27 0. New competitors.45 0.26 3 4 . Growing college going student population in the country.External Factor Analysis Key External Factors OPPORTUNITIES 1 2 3 4 Weight Rating Weighted Score Rural India almost untapped market. TOTAL 8% 10% 15% 8% 1 2 3 3 3 0.3 0.6 0.6 9% 12% 3 4 0. Low credibility of Chinese players in the market.

 Growing college going student population in the country.  Changing aspirations and income levels Medium Low High Probability of Occurrence Low credibility of Chinese players in the market.  Cloning of Successful technology  New Competitors  Regular sized fridges Low . Medium  Potential for servicing other  Price wars with developing nations competitors.Issue Priority Matrix Probability of Impact on Corporation High  Rural India almost untapped market.

26 .92 1 2 3 3 0.45 0.15 0.Internal Factor Analysis Key Internal Factors STRENGTHS 1 Technological Innovation 17% 15% 10% 3 3 3 0.3 Weight Rating Weighted Score 2 Aggressive advertising 3 Product range WEAKNESSES 1 Long development cycles 2 Higher cost of production due to heavy advertising.4 0.45 0. 15% 20% 15% 8% 0.51 0.24 3 Setting up new distribution networks 4 Smaller pockets TOTAL 2.

26.26 EFE SCORE 2 1 IFE = 2.26 .IE Matrix IFE SCORE 4 3 2 1 3 2. 3.26 EFE = 3.

06 0.36 0.15 0.14 2.14 Rating 4 3 3 Weighted Score 0.12 0.42 Godrej Chotukool Rating 4 3 2 Weighted Score 0.48 0.24 0.24 0.36 0.4 0.12 0.12 0.Competitor Profile Matrix MyFridge Critical Success Factors Market Share Product Quality Price Weight 0.18 0.28 Advertising Customer Loyalty Brand Equity Financial Position Global Presence R&D Profit Margins Total 0.09 3 2 2 2 1 3 0.12 1 2.4 0.08 0.12 0.15 0.32 0.15 0.12 0.62 .06 0.12 4 2 3 4 3 3 0.36 0.

• Low credibility of Chinese players in the market. Product Development . • Price wars with competitors. • Setting up new distribution networks Environmental opportunities • Rural India almost untapped market. • • Evolving rural population and student demographics can be tapped through aggressive advertising R&D capabilities could be used to develop products best suited for developing and evolving geographic and demographics needs (Market and Line Expansion) • Could focus on cutting down the development cycles.TOWS matrix Organizational Strengths • Technological Innovation • Aggressive advertising • Product range Organizational Weaknesses • Long development cycles • Higher cost of production due to heavy advertising. • Changing aspirations and income levels • Potential for servicing other developing nations Environmental threats • Regular sized fridges • Cloning of successful technology. •Could use its R&D.Marketing and Distribution expertise for gaining competitive advantages in developing markets •Use early bird advantage and market knowledge to drive out the newer competitors •Use R&D capabilities and experience to shrink the cost structure in order to improve overall profitability •Could buy out low cost competitors. . • New competitors. • Growing college going student population in the country.

» It is trying to achieve a balance between low cost / low pricing and unique offering. .Porter’s 3 Generic strategies » The product targets two unique segments – students and rural India.

Grand Strategy Matrix Rapid Market growth Quadrant 2 • • • • Product development market development Market penetration Horizontal/ vertical integration Weak competitive position MyFridge Strong competitive position Slow Market growth .

Applications of SWOT Numerous environmental Opportunities MyFridge Conservative Strategy Aggressive Strategy Critical Internal Weakness Substantial Internal Strengths Defensive Strategy Diversification Major Environmental Threats .

Brand Image Market Share Product Quality Customer Loyalty Opportunities for up-sell and cross sell Industry Strength -2 -1 -3 -4 Average = -2. Increasing inflation. Competitive advertising and distributing products -1 -1 -2 -3 -3 -4 Advantage Environmental Stability Improving trade-relations and conditions amongst economies. Customers becoming increasingly price sensitive.5 Average = -2. 2 3 2 1 Financial Strength Average = 3.33 .Strategic Position and Action Evaluation Matrix Industry Strength Evolving Demographics and Aspirations in developing markets Profit Potential Growth Potential 4 3 4 Financial Strength Strong financials Profit Margins Ability to raise capital Ease of exit from markets. esp in emerging economies. Price war between MyFridge and competitors. producing.66 Average = 2 Competitive Advantage Huge experience in innovating.

99.Strategic Position and Action Evaluation Matrix Financial Strength Financial Strength Competitive Advantage Advantage Competitive 1. -0.5 Industry Indutry Strength Strength 4.33. -0.5 Environmental Environmental Stability Stability .

Strategic Position and Action Evaluation Matrix Financial Competitive Strategies Strength » Horizontal Integration » Market Penetration » Market Development Competitive Advantage » Product Development Industry Strength Environmental Stability .

Imitation or Substitution of the product in market at cheaper price Economical Social Technological Environmental .More efficient and lean production of Competitor Threats:.Lean Production Process Threats:.Low acceptability in rural population Opportunities:.Environmental Threat and Opportunity Profile Factors Political Opportunities and Threats Opportunities: Improving Trade relations and condition amongst economics Opportunities: Evolving with the New Markets Threats: Price wars amongst Competitors. increasing price sensitivity of consumers Opportunities: Targeting the rural and students Threats:.

Strategic Advantage Profile Internal Area Marketing and Sales Competitive Strength/Weakness (+) Quality of products and services (-) Setting up distribution network from scratch (-) Longer time for product development (-) Weak financials (-) Cost of production can be brought further down (+) Operational efficiency from start Finance Operational .

Sum TAS 15% 15% 9% 12% 8% 4 4 2 3 3 17% 15% 10% AS 3 3 2 Strategy 1 Market Development stand TAS 0.21 3 2 4 3 0.3 0.45 0.68 0.45 0.3 Strategy 3 Product Development stand AS 4 4 3 TAS 0.16 8% 10% 15% 8% 0 1 3 2 0 0.68 0.QSPM Weight Strengths Technological Innovation Aggressive advertising Product range Weaknesses Long development cycles Higher cost of production due to heavy advertising.27 0.6 0.6 0.6 0.21 0.6 0. Changing aspirations and income levels Potential for servicing other developing nations Threats Regular sized fridges Cloning of successful technology.4 0.6 0.3 0.36 0.18 0.3 0. Price wars with competitors. Growing college going student population in the country.21 0 3 2 2 0 0.6 0.36 0.16 5.32 4 4 2 3 2 0.16 6 0 3 2 2 0 0. Setting up new distribution networks Smaller Pockets Opportunities Rural India almost untapped market.6 0.3 0.4 0.45 0.9 .2 Strategy 2 Market Penetration stand AS 4 4 3 TAS 0.21 2 2 4 3 0.3 0. Low credibility of Chinese players in the market.24 4 4 3 3 4 0.18 0.07 2 2 3 3 0.36 0. New competitors.3 0.45 0.3 15% 20% 15% 0.6 0.6 0.51 0.4 0.6 0.16 5.1 0.

Strategy to be followed » Market penetration ˃ Increase the customer base by aggressively advertising and launching new products. ˃ Target newer geographies/ regions .

Product  Has foldable flaps attached so that when expanded it acts as a small table as well to facilitate dining.  Has removable baskets instead of one deep compartment to provide compartmentalization  Comes with an AC/ DC adapter so that it can be plugged into electricity when needed. .

. Participate in college fests. difficult to dislodge them First mover advantages Participate in local events/ festivals.Promotion strategies » Contrary to popular belief people in Rural India are fiercely brand loyal ˃ Single Brand Villages » » » » Once converted.

+ ‘Laal Sabun’ – Lifebuoy + Peela Powder – Nirma . Nokia ‘Life Tools’ for farming and rural community ˃ Agri information to farmers in association with Reuters ˃ Imparting of knowledge of English language to students by teaching one new word every day » Build Recognition ˃ Rural folks understands symbols and colours better.Route to Brand Building in Rural » Build Customization » Build Empathy / Relevance ˃ Eg.

melas. post offices.Distribution Strategies » Build Access ˃ Distribution in rural India is not a nightmare ˃ For consumer durables reach towns with population of 50000+ and also ˃ Look at opportunities in haats. » Build word of mouth ˃ Through effective communication using specific communication package aimed at specific rural audience ˃ Importance of opinion leaders ˃ Educated village youth as opinion leaders ˃ Women and children as demand generators ˃ Customized events targeting specific groups with focused communication . public distribution system etc.

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Marketing channel Rural India » Rural Cinema » TV » Radio » Mass Media Students » Multiplexes » TV » Social Media » Online advertising » Promotion campaigns in/ near colleges .

Pricing Strategies » Low cost product » Easy affordability by both students and people in rural India. » Profit margins low to maintain low cost .

Communication Strategies Rural Communication » Keep the communication simple… ˃ No scope for gimmicks » Take time in communicating the message ˃ Quickies have no impact. » Think in the local language to capture the local spirit in the communication aimed at specific region. » Demonstration – a key element for success .

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» Take less time in communicating the message ˃ Long messages tend to lose out audience interest. » Demonstration – a key element for success .Communication Strategies Student Communication » Keep the communication flashy… ˃ Lots of scope for gimmicks.

. ..Thank you..