COMPETITION ANDCOMPETITION ANALYSIS OF REFRIGERATOR MARKET IN INDIA

GROUP 9

REFRIGERATOR MARKET IN INDIA manufactured in Refrigerators have been

India since 1950s. Till the 1980s, players like Godrej, Kelvinator, Allwyn and Voltas controlled almost 90% of the market. Indias consumer market is riding the crest of the countrys economic boom. Refrigerators have the second highest aspirational value of all consumer durables, with the exception of televisions. This accounts for the high growth rate of the refrigerator market .

 Earlier, the white goods sector was categorized as a luxury goods industry and was subject to oppressive taxation and licensing. Post-liberalization, a number of foreign companies entered the market and many domestic players also diversified into refrigerators.

MAJOR BRANDS IN INDIA

LG WHIRLPOOL SAMSUNG GODREJ ELECTROLUX VIDEOCON KENSTAR VOLTAS HAIER SIEMENS AKAI GE

Types of refrigerators

On the basis of technology the refrigerators are of two types : (a) Direct cool (b) Frost free

Direct cool refrigerators

Direct cool fridges only come with single door. need to be defrosted which can be automatic or semi automatic or manual defrosting. cheapest in running and service. Typically do not come in capacity more than 350 litres.

Frost free refrigerators

Cool air is continuously circulated so there is no ice build-up and hence no need to defrost. They are technologically far superior to direct cool fridges. They are easier to maintain, have less odour and maintain food fresh for longer duration. Frost free technology is restricted to double or higher number ofdoor refrigeratorsonly as this

C U S T O M E R S A T I FA C T I N S O I D EX N

C A T E G O R Y W I E S A LE S S

M A R KET SH A R E

Turn over- 2009-10 ( in billion Rs)

Videocon, 11.23 Whirlpool, 15.11 LG, 21 Haier, 1.85 godrej, 12.05

10

15

20

25

godrej

Haier

LG

Whirlpool

Videocon

LG
LG India is one of the very few companies in the country that has an internal Energy, Environment, Safety and Health Department. This function caters to activities like Energy Conservation, Environmental Issues, Work Place Fire and Safety as well as Occupational Health for the benefit of the employees. Its positioning statement is high volume and lower margin.

 During the year 2001, LG commenced the home production for its ecofriendly Refrigerators .
Special feature to preserve nutrition with green ion door cooling refrigerators. LG refrigerators has been rated 5 star by Bureau of Energy Efficiency (BEE).

Its corporate philosophy to make peoples' lives better, convenient and healthier like refrigerators have the ' PN System ', which preserve the nutrition in food.

PRODUCT SEGMENTATION
FROST FREE REFRIGERATORS DIRECT COOL REFRIGERATORS SIDE BY SIDE DOOR REFRIGERATORS TV-DIOS REFRIGERATORS

Frost free refrigerator

Intellocool refrigerators TARGET: Middle and middle upper class people. PRICE: Rs.14450 to Rs.39880

Contd

5 Star Rating Works without Stabilizer Green Ion Door Cooling Technology Vitamin Plus Convertible Box Freeze & Cook Box Cell Fresh Crisper with Humidity Controller Anti Bacteria Gasket Catechin Deodorizer

Direct cool refrigerator

Contd..
INTELLO COOL range of 175litres To 270litres. 14 models in this segment. TARGET: Middle and middle upper class people. PRICE: Rs.6500 to Rs.11800
4 /5 STAR Rating (BEE) Works without Stabilizer Intello Compressor

SIDE BY SIDE REFRIGERATORS

Two doors side by side. One side refrigerator and other side freezer with through the door ice / water dispensers. 580 750 litres are available. 5 models available in this segment. TARGET: Middle Upper and Upper / premium class people. PRICE: The price range varies between Rs.59900 to Rs.130000 4 /5 STAR Rating (BEE) Works without Stablizer

Side by side refrigerator

Wonder Door Home Bar Digital Sensors Horizontal Handle Gallon Storage Express Freezing

Tv dios refrigerator
Refrigerator with TV & Radio is also available. LG India launched the Worlds First TV Refrigerator TV DIOS with a 13-inch hidefinition TFT LCD TV installed at the center of its door. The 600 litres TV DIOS also has a built-in radio tuner providing access to FM stations and is supported by built-in speakers.

MARKETING and PROMOTION

Like the marketing of FMCG products, LG's marketing was heavily dependent on advertising. BRAND AMBASSADOR Abhishek Bachchan, the brand ambassador for LG promotes the LG INTELLO COOL range of refrigerators

RURAL MARKETING
LG India- tripled the number of its retail & distributor outlets in rural areas from 2004 to 2006

It also tapped local forms of entertainment like annual haats and fairs and made huge investments in infrastructure for distribution and marketing.

 Threats to the company

Despite the fact that refrigerators have immense utility to housewives and provide a solution to avoid food wastage, the penetration level is still below 20% and its market is growing at a very small pace. This may be because: People in small towns and rural areas do not consider it as a necessary product and are unaware of its utility value. Non-availability of power.

OPPORTUNITIES
Untapped market of rural India can be

whirlpool
Success mantra of Whirlpool : Know a customer a Be a customer Serve a customer

Who are the customers How to treat them How to add value How to create brand loyalty To share cust. Knowledge & insight Creating customer touch-point value Sharing empathy

 Whirlpool is transforming into a completely customercentered company where the customer lies in the core of every of our functions . The transformation is made up of five elements : Market leadership through customer loyalty Innovation Diversity with inclusion and core competencies Passion for customer excellence Operational excellence Whirlpool has swiftly moved from being a World Class Manufacturer to a World Class Marketer using the brandbuilding framework.

Vision and mission The pervasive vision of Whirlpool is Every Home, everywhere, with pride, passion and performance .

Market segmentation
The segmentation variables for refrigerator market are Age/ lifecycle stage Marital status : eg: Refrigerator is a very necessary household for newly married people. Social class and income . Occupation : eg: Instant cool feature is convenient for working women families.

Targeting and positioning

Whirlpool is targeting the women of every Indian families and accordingly it has successfully positioned itself as the best homemaker in the world. The positioning statement is You and whirlpool the worlds best home maker The USP for the frost free segment is its 6 th sense cooling system which automatically adjusts the level of cooling .

Products
The products in refrigerator category includes Direct cool : Low range products. Product variants are named as Genius. Frost control : Medium range products. Product variants are named as fusion. Frost free: Premium and high capacity products. Product variants are named as Professional, ice bergs , masterminds and delight.

Whirlpool spends less in promotion and advertising than the competitors like LG . They have been spending the money smartly. Instead of giving ads every day, they are skewing their ads towards weekends when the customers go to shops and make enquiries. Their ads are frequently coming on days such as Dussehra, Karva Chowth, Dhanteras, etc So they deal with competitors with greater muscle power in terms of money through smart buying and smarter planning.

 Samsung has launched nine new refrigerator models, both frost-free and direct-cool. Samsung, which is the market leader in the over-350 litre frost-free refrigerator segment, is seeking to consolidate its position by launching three new, advanced, feature-rich models in 375 litres, 400 litres and 704 litres in the Indian market. The company currently has a range of 42 frost-free models priced between Rs13,000 and Rs 1.5 lakh. In the direct cool refrigerator segment, the company has extended the category by introducing two new models of 180 litres

 Samsung plans to reach out to more tierII cities. Showcasing products in 135 cities this year against 120 last year. The South had emerged as a key contributor to the company's overall revenues. The share of Southern sales has gone up from 24 per cent to 31 per cent, equaling the contribution from the Northern States. In a bid to cash in on the growing interest in the South, the company has lined up 11 `Dream Home' roadshows in the region this year. The number of `brand shops' would go up by 30 per

POSITIONING
Samsung positions itself as technology leader and not only as a volume player and a price warrior. Strategy is value driven, not price driven. Expecting leadership on the basis of top quality, leading edge technology, priced competitively and backed by strong after sales service," Global CEO Yun Yong's vision: "We want to be the Mercedes of home electronics. The drivers this time at Samsung -- in fact, the company has put these well above the traditional 4 Ps of marketing -- are design and innovation. "Good designs and innovative technology will be the most important differentiator for Samsung from competition "If you are able to deliver the latest technology at an

 To tackle this issue, the company started the Samsung Marketing Academy, which conducts regular training programmes to educate the sales forces, shop-owners and company employees on the company's technology and design, how it is different from what competitors are offering, and how to better explain the difference to the consumer. By equipping the salespeople to sell knowledge-oriented lifestyle products, the company is hoping to provide customers a more informed buying

TECHNOLOGY AND INNOVATIONS Twin Cooling S ystem uses two independent evaporators that provide optimum level of cooling to the refrigeration compartment and the freezer. The i-Cool System- is an intelligent cooling system with three cold air outlets-at the back and on the right and left sides of the refrigerator interior, resulting in all round cooling action. Silver Fresh Technology-

DIRECT COOL
Target : Middle Class No. of models : 6. Available both in 180/200 ltrs. capacity. Price Low price due to high competition Rs.8,700 to Rs.10,900

Direct cool refrigerator

FROST FREE REFREGERATORS

Frostfree refrigerator

Category Frost Free (Less Than 350 L)Rs.13,000Rs.22,000 Frost Free (Greater Than 350 L)Rs.29,000Rs.56,000 Frost Free (Bottom Freezer )- Rs.38,000 & Rs.56,000

SIDE BY SIDE
Side by side refrigerator

Target: Premium Product Targeted at Niche Market. No. of Models: 13 Capacity: 545 Ltrs to 880 Ltrs Price: Rs. 56,000 Rs. 1,41,000

ENRICHING THE RETAIL EXPERIENCE

To display Samsung products in a more lifestyle ambience and to communicate the product benefits in a more interactive manner, Samsung India has set up a widespread network of Samsung Digital Worlds, Digital Homes and Digital Plazas all over the country.

The Samsung Brand shop network complements the over 8500 retail points for Samsung products located across the length and breadth of the country. Samsung plans to continue enhancing its penetration levels in the country to reach out to more and more

RETAINING CUSTOMERS
Samsung considers 'After Sales Service' as a key differentiator for Samsung products. In order to deliver prompt and easily accessible service, Samsung India has set up a widespread network of company owned as well as Authorized Service Centers to service its customers. The Samsung Service Plazas, as the Company owned

AFTERSALES SERVICE
Speed, Smile, Sure is the motto for Samsung Service, as the Company seeks to satisfy more and more of its customers with prompt and accurate service. A Service Helpline number gives access to Samsung Service throughout the country. Samsung India organises a Free Service Camp on an All India basis, every year, for proactively reaching out to customers and servicing their Samsung products. 10 second to loose a customer, 10 years to gain them back forms the guiding principle for Samsung Service

PROMOTION
Future Scenario With easy availability of finance, emergence of doubleincome families, fall in prices due to increased competition, government support, growth of media, availability of disposable incomes, improvements in technology, reduction in customs duty, rise in temperatures, growth in consumer base of rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is projected in the future, too. The penetration level of consumer durables is very