_ GROUP 7 MARKETING MICROWAVE OVENS

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MARKETING
MICROWAVE OVENS
TO A NEW MARKET SEGMENT
_GROUP 7_
Hoang Thi Ngoc Huyen
M987Z239
Hyacintha FAUSTINO
M997Z
Krissapon Apinyaupatum
M997Z241
Antun Paradzik
M997Z223
Nguyen Thi Thu Trang
M997Z210
Le Van
M997Z246
I. INTRODUCTION
II. INDIAN MARKET DATA
III. INDIAN DEMOGRAPHICS
IV. 4P’s IN MARKETING
V. ADVANTAGES AND DISADVANTAGES
VI. CONCLUSION
INTRODUCTION
 A microwave oven is a kitchen appliance that cooks
or heats food by dielectric heating
 The microwave oven was a by-product of another
technology
 Cooking food with microwaves was discovered
accidentally in the 1940s. Percy Spencer, a self-taught
engineer, was building magnetrons for radar sets with
the company Raytheon.
He was working on an active radar set when he
noticed that a peanut chocolate bar he had in his
pocket started to melt. The radar had melted his
chocolate bar with microwaves
 The first food to be deliberately cooked with
Spencer's microwave was popcorn, and the second
was an egg, which exploded in the face of one of the
experimenters
 To verify his finding, Spencer created a high density
electromagnetic field by feeding microwave power
into a metal box from which it had no way to escape.
When food was placed in the box with the microwave
energy, the temperature of the food rose rapidly

On October 8, 1945 Raytheon filed a U.S. patent for
Spencer's microwave cooking process and an oven that
heated food using microwave energy was placed in a
Boston restaurant for testing.

In 1947, the company built the Radarange, the first
microwave oven in the world. Tall: 6 feet tall, weigh: 750
pounds, cost :US$5000 each & consumed: 3KW

An early commercial model introduced in
consumed 1600W and sold for 2,000- 3,000 USD.

In 1965, Raytheon acquired Amana, which introduced the
first popular home model, the countertop Radarange in
1967 at a price of US$495..
1954,
In the 1960s, Litton bought Studebaker's Franklin Manufacturing assets and developed a new
configuration of the microwave, the short, wide shape that is now common and magnetron feed was also
unique
The new oven was shown at a trade show in Chicago, and helped begin a rapid growth of the market for
home microwave ovens. Sales volume of 40,000 units for the US industry in 1970 grew to one million by
1975. Market penetration in Japan, which had learned to build less expensive units by re-engineering a
cheaper magnetron, was faster.
Litton was particularly well known in the
restaurant business.
By the late 1970s the technology had
improved to the point where prices were falling
rapidly.
 Often called "electronic ovens" in the 1960s,
the name "microwave ovens" later became
standardized, often now referred to informally
as simply "microwaves."




Formerly found only in large industrial applications, microwave ovens were
increasingly becoming a standard fixture of most kitchens.
The rapidly falling price of microprocessors also helped by adding electronic
controls to make the ovens easier to use.
By 1986, roughly 25% of households in the U.S. owned a microwave, up from
only about 1% in 1971.
Current estimates hold that over 90% of American households have a microwave
Indian Market Data
-
LG is the leader of this segment
Has a 33.5 % market share
Eight models and price range between 8,500-19,000
Kelvinator Magicook- to expensive and not manageable to
use
- Adjust to the specific Indian market needs
- In the long term try to change eating habits
Indian Market Data
 Customers Still Need To Get Knowledge Of The Microwave
Ovens Possibility's
 Future projection is positive
 Modern technology nowadays allowed
Indian food
to cook complex
 Some experts still think than it will take long time to
overcome the problems with the indian market
INDIAN DEMOGRAPHICS
POPULATION
• India has 2.4 % of total area of the world and being
second populous country in the world in 2010
• India has population of 1.18 billion people ,which is 17.31 %
of the world’s population. (estimated by April, 2010)
• India is projected to be the world’s most populous country by 2025
http://en.wikipedia.org/wiki/Demographics_of_India
AGE STRUCTURE
• 0-14 years:
• 15-64 years:
• 65-over:
31.1%
63.6%
5.3%
Out Target
http://en.wikipedia.org/wiki/Demographics_of_India
LITERACY IN INDIA
• The survey in 2008 by NSSO, adult population (age 15+) had a
literacy rate of 66 %
• Male literacy rate is 76.9 % > Female literacy rate is 54.5 %.
* (NSSO) National Sample Survey Office
*When we provide the advertising, we will not focus on women (housewife) only because there
high possibility of the men’s readership / circulation
INDIAN FOOD / WESTERN FOOD
Indian Cooking
• Complex, and Take certain time of
preparation
• Based on spices and herbs.
• Healthy Food
Western Cooking
• Simple and Easy to prepare
• Meat and Bread
• Grilling / Toaster
SAMPLE WEBSITE
Providing “how to” make Indian Dish through Microwave
http://www.indianfoodforever.com/microwave-cooking/
PRODUCT
A microwave oven is a kitchen
appliance that cooks or heats food by
dielectric heating.
A microwave oven uses microwaves
(radio waves).
In 2003: The new microwave ovens
on display were measured in passive
standby and where applicable, off
modes.
Example: CM1069, INDIA''S NO.
1 MICROWAVE OVEN. Cooks Fast
Real Fast. Available in 5 different
Models.
PRICE
• The strength of microwave oven
sales is attributed to the steady
price reduction from Rs 7,000 for
the lowest priced to Rs 5,000.
• One company prices its ovens
between Rs 7,000 and Rs 18,000.
another between Rs 12,500 and
15,000, and an oven with grill
functions goes for Rs 17,900.
PLACE
• The top seven cities
comprise nearly 70
percent of the market
with
Delhi
and
Mumbai
(Bombay)
recording the highest
sales.
• The good news is that
the
microwave
is
beginning to be seen in
smaller towns.
PROMOTION 1/2
They must first sell the idea.
The consumer is convinced a microwave
can actually be part of daily cooking.
Apart from styling and competitive
pricing, marketers acknowledge that
cracking the mind-set that microwaves are
not suited to Indian food holds the key to
future growth.
There are expand the Indian market and
design innovation to make the microwave
suited to Indian cooking,
……..PROMOTION 2/2……..
• In local manufacturing facility promote innovation while continuing to
import high end models, reduce import content to cut costs, boost
volumes and bring down prices.
• Promotions: giving away accessories such as glass bowls, aprons, and
gloves.
“To change the way you look, just change the way you cook” was a recent
tagline by one of the companies.
ADVANTAGES OF MICROWAVE OVEN
A microwave oven has many positive features and few negative aspects as well.
It depends on the usage and need of the individual to go for this type of oven.
Time saving:A microwave oven has a timer which enables
us to set the time for cooking food. When timer runs out, the
oven turns off automatically. Different times are set to cook
different types of food items.
Safe to use: Everyone ca use a
microwave, even a child or an
old person
Costefficiency on electricity
ADVANTAGES OF MICROWAVE OVEN
Reduce cooking odors :To get
rid of the smell of food, boil the
bowl of water in the oven with a
few drops of lemon juice in it
and your oven is ready to use
again.
No need to wash, justwiped off the
dirt and food
No need to keep an eye :
Place the food, set the time, stir in
between if necessary and
remove the food once it is done
DISADVANTAGES OF MICROWAVE OVEN
 Over cooking of the food
 Not suitable to all types of food
or materials ( Iron, foil, thin
plastic…)
 It is important to adjust the
heating time as a food or product
may become hot in seconds
 Never give the same result as a
cooking oven
 Some people are scared because
it emits waves that can be
harmful if not properly sealed,
but the current standards want all
microwave ovens comply with
strict rules of safety
CONCLUSION
 Thanks to the advanced technology of
microwave, nowadays it’s possible to
cook Indian food
 There is a wide price range, so almost
every household can own a microwave
 The challenge now will be: how to
“Westernize” the eating habits of
households
 India will become the world’s most
populous country by 2025.
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