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White Appliances. Marketing Micorwave Ovens to a New Market Segment. Group Members. Victor Marbun (victor) M987Z259. Thidarat Prasitpornphakdee (Nok) M987Z245. Li Merlin (Merlin) M987Z246. Nguyen Thi Thanh Nhan (Nhan)M987Z232. 江孟唐 (Johnson)M98C0242. Huynh Than Phong (phong) M987Z242.
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White Appliances Marketing Micorwave Ovens to a New Market Segment
Group Members Victor Marbun (victor) M987Z259 Thidarat Prasitpornphakdee (Nok) M987Z245 Li Merlin (Merlin) M987Z246 Nguyen Thi Thanh Nhan (Nhan)M987Z232 江孟唐 (Johnson)M98C0242 Huynh ThanPhong (phong) M987Z242
Overview • Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market.
Overview • Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players are entering in the market.
Situation AnalysisInternal Situation Analysis • White Appliances is an international company that manufactures and markets appliances globally. We has a line of microwave ovens-some manufactured in the U.S. and some in Asia.
Situation AnalysisInternal Situation Analysis • For pandering to the India market, we can cut down own production costs by offshoring in Asia. And featuring ENERGY STAR products that use less energy, save money and help to protect the environment.
Situation AnalysisInternal Situation Analysis (con’t) • The Microwave Ovens available in the market are of following types: 1.Compact Microwaves 2. Countertop Microwaves 3.Convection Microwaves 4.Over the Range Microwaves (OTR microwaves) 5.Convection and Grill.
Situation AnalysisInternal Situation Analysis (con’t) • Create the designed product for the customers through extensive promotion in order to capture the potential market and try to convince customers to shift to our products.We have to add more value and add more features rather than increasing the price.
Situation AnalysisCustomer Situation Analysis Indian cuisine can be divided into two parts: • North Indian Cuisine Wheat is considered a staple part of North Indian meal. Usually a North Indian meal consists of Roti/Paratha/Naan (Indian breads) and sabji (gravy made with vegetables). However, on special occasions or when there is company, a four-course meal is served. First Course: Appetizers and drinks. Second Course: Salads, Any Indian bread and sabji. Third Course: Spiced rice (pilaf or pulav). Fourth Course: Dessert or sweets (or lassi).
Situation AnalysisCustomer Situation Analysis • South Indian Cuisine Rice is considered a staple part of South Indian meal. Usually a South Indian meal consists of rice and sambar (curry). Here again, on special occasions or when there is company a four-course meal is served: First Course: Appetizers and drinks. Second Course: Mixed rice and vegetables cooked with spices. Third Course: Plain rice, sambar, rasam and yogurt with pickles (appalam, added for crisper taste). Fourth Course: Sweets and paan.
Situation AnalysisCustomer Situation Analysis (con’t) • Geographical Segmentation: Urban and suburban regions of India. • Demographic Segmentation: We are targeting people with a stable income of over Rs. 3000.
Situation AnalysisCustomer Situation Analysis (con’t) • Behavioral Segmentation: Micron 1200 will be most useful for heavy users whereas the Micron 1000 for light users.
Situation AnalysisCustomer Situation Analysis (con’t) • Life-stage Segmentation: Our Micron 1000 model is targeted to single young people and newly married young couples. Micron 1100 is targeted towards Full Nest 1 (youngest child under 6) and 2 (youngest child six or over) While Micron 1200 is for Full Nest 3 (older married couple with dependent children) and Empty Nest (older married couple with no children living at home).
Situation AnalysisExternal Situation Analysis The major competitors are, in order: • Samsung India has emerged the leader in the 240,000-unit microwave oven market with a 33.6 percent share over October-March 2003. • LG was trailing Samsung with 31.3-percent market share. • Videocon International's brand Kenstar occupied the number 3 position with a 10.6 percent share of the market while National Panasonic's brand is placed next with 6.1 percent share. • Japanese major Sharp and Whirlpool are in a neck-and-neck race with a 4.2 and 4.3 percent share of the microwave oven market, respectively, while BPL Appliances & Utilities Ltd is placed at the lowest with 1.6 percent market share
Situation AnalysisExternal Situation Analysis (con’t) • The Indian Consumer Electronics market generated total revenues of $3.8 billion in 2006, this representing a compound annual growth rate (CAGR) of 11.1% for the period spanning 2002-2006.Video equipment sales proved the most lucrative for the Indian Consumer Electronics market in 2006, generating total revenues of $3 billion, equivalent to 80.8% of the market's overall value. • The performance of the market is forecast to accelerate, with an anticipated CAGR of 5.4% for the 2006-2011 period expected to drive the market to a value of $4.9 billion by the end of 2011.
Situation AnalysisExternal Situation Analysis (con’t) • With an estimated population of 1.2 billion,India is the world's second most populous country. India's GDP is US$1.237 trillion, which makes it the twelfth-largest economy in the world or fourth largest by purchasing power adjusted exchange rates. India's nominal per capita income US$1,068 is ranked 128th in the world.
SWOT Analysis • Strengths • High technology • Product is simple to use • Use for a longtime • Weakness • High cost expand for production • High cost for maintaining the microwave(for user) • Not common in use in India (strange tools)
SWOT Analysis (con’t) • Opportunities • Changing cutomer needs / tastes • Huge population (1.3 billion) • Economic condition and industry atmosphere is good • Threats • Competitor • Sociocultural Trends
Advantages • Microwave ovens rapidly cook foods, heat liquids and defrost frozen foods. • Some foods are better cooked in a microwave oven as they retain more flavour, texture and goodness. (eg. plain fish, soft fruit, peas, fat free cakes). • Microwaves are safe and economical on electricity with savings up to 50%. • No oven preheating is required and the kitchen stays cooler. • Cooking is cleaner with less odours. Washing up is reduced. • A microwave oven can be used with a conventional oven to speed up the cooking such things as bread.
Major Problems with Microwave ovens. • Food cooks very quickly and is liable to be overcooked. • Hot and cold spots can occur producing food that is unevenly cooked. • Microwaves cannot brown food as no heat is applied from the outside. • The outer edges of the food get hot while the centre remains cool. • Metal pans, plates, utensils etc. will permanently damage the microwave generator. • Cooking small quantities of food can damage the microwave generator.
Major Problems with Microwave ovens. • Never turn on an empty oven as it will damage the microwave generator. • Waste food left on the inside of the oven cavity absorbs energy. • Salt added at the beginning of cooking toughens food especially meat. • Not all foods can be cooked in a microwave. • The size of the oven cavity limits the quantity and size of the food to be cooked.
Layer-by-layer, outside to inside Even cooking, inside to outside Cooking through Water molecules Cooking through Oil More usage of Oil/Ghee Less Oily food More time consuming & tiring Less time consuming & enjoyable Separate utensils for cooking & serving Same utensils can be used to cook & serve Spoils the kitchen wall with sprinkling of oil Non- messy , more neat & clean kitchen walls Nutritional Value of the food is lost due to longer cooking Nutritional Value of the food is preserved Comparison Conventional Microwave
Marketing Mix • Product : Design product for suiting with India food Stylish of product Convenient and efficient to cook Can replace demand for a bigger refrigerator • Price: Flexible price: (Rs 7.000; Rs 18.000); (Rs 12.500; 15.000) and ( Rs 17.900 for an oven with grill functions)
Marketing Mix • Place: Top seven cities ( 70% of market with Delhi and Mumbai) Expanding to explore in nonurban market, semi- urban. • Promotion: • Changing awareness about benefits of Oven ( not only reheating but also cook well) by direct marketing: • Organizing cookery classes : with famous chef • Recipe contests, in-house demos • Giving away accessories such as glass bowls, aprons and gloves as freebies and hosting co – promotions
Marketing Strategy • Product and design innovation to make the microwave suited to India cooking • Local manufacturing facility to promote innovation • Continuing to import high-end models • Reducing import content to cut cost • Boosting volumes • Bringing down prices
Questions What is the most challenging factor for a Microwave Oven company to enter India Market?
Answer The most challenging factor for a microwave oven company to enter India market is the perception of Indians about microwave oven. Generally they think that microwave ovens are only used to cook Western-styled dishes and that they are not sutitable to prepare Indian complicated recipes. Hence, cracking the mindset that microwaves are not suited to Indian food holds the key to future growth.
Questions What kinds of Benefit that assure Indian market to choose microwave to cook ?
