Yao Ju
M99Y0206
James
M99Z0216
Ninh
M997Z211
Melva
M997Z227
Nancy
M997Z228
Allison
M99Y0105
Market Research
I. Define the Target market
II. Target market analysis
SWOT ANALYSIS
MARKETING STRATEGY
I. Define the Target market
II. Target market analysis
I. Define the Target market
India microwave oven market
Competitors’ situation
Segmenting Indian market
Define the target customers
I. Define the Target market
Indian microwave oven market
• The penetration level of microwave oven
remains shockingly minuscule, under 1%, mainly
in big cities (70%)
• Competitiveness: There are many companies
producing microwave ovens in India.
I. Define the Target market
Competitors
LG
Electrolux
Godrej
Haier
Panasonic
IFB
Inalsa
Kenstar
Samsung
Sanyo
Sharp
Videocon
Whirlpool
(http://www.indiahousing.com/microwave-ovens-india.html_
I. Define the Target market
Competitors’ situation
• Their Target market: Large Urban area
• Product’s problem: irrelevant size
• The price of the Microwave Ovens can range
from less than 7000 Rupees to more than 21000
Rupees depending upon the desired features
→ competitiveness of other competitors in terms
of price pattern is very strong.
I. Define the Target market
Segmenting Indian market
based on the Administration area, Indian market
can be divided in to:
• Urban market: occupy 30% of population, high
and middle income generally, penetration of
competitors has existed
• Rural market: 70% of population, lower income,
gap market of microwave oven has been existed
I. Define the Target market
1. Indian Population: estimated population of
1.2 billion India is the world's second most
populous country. In 2001, about 285 million
Indians lived in urban areas while more than 70%
of India's population resided in rural areas.
2. Indian Population growth rate: 1.38% per
annum; there are 22.01 births per 1,000 people
per year.
→ From this (1&2), we can see the scale and
growth level of market is quite big
I. Define the Target market
Concept of rural sector
The "rural sector" means the area which meets
the following conditions:
A population of less than 5,000
Density of population less than 400 per sq km
andmore than "25 per cent of the male working
population" is engaged in agricultural pursuits.
I. Define the Target market
From conducting research:
“We know it’s an alien concept for the rural
consumers, but we want to do our homework
now to reap the benefits years later”
→ With the goal is market share leading for long
- term, our target market is rural habitants.
II. Target market analysis
Demography
Occupy more than 70% of India's population.
The national human sex ratio: 944 females
per 1,000 males
II. Target market analysis
Literacy rate: 64.8% (53.7% for females and
75.3% for males).
L ite ra cy R a te
illite ra cy
35%
L ite ra cy
65%
L ite ra cy
illite ra cy
II.Target market analysis
Language: The Constitution of India has
recognized 22 different languages that are
prevalent in the country, out of which, Hindi is the
official language and is spoken in most of the
urban cities of India.
Religious: As per the 2001 census, over 800
million Indians (80.5%) were Hindu.
• Indian religions form one of the most defining
aspects of Indian culture. Major dhármic religions
which were founded in India include Hinduism,
Buddhism and Jainism.
II.Target market analysis
 Traditional Indian family values are highly
respected, and multi-generational patriarchal joint
families have been the norm, although nuclear
families are becoming common in urban areas.
II. Target market analysis
 Indian cuisine
• Indian cuisine is characterized by a wide variety
of regional styles and sophisticated use of herbs
and spices.
• The staple foods in the region are rice
(especially in the south and the east) and wheat
(predominantly in the north).
• Spices, such as black pepper which are now
consumed world wide, are originally native to the
Indian subcontinent.
II.Target market analysis
• Chili pepper, which was introduced by the
Portuguese, is also widely used in Indian cuisine.
• People do not use chopstick or knife and fork to
eat, they eat by their hands.
II. Target market analysis
Perception of target market about microwave oven
Different perceptions of Indian citizens
about Microwave oven from the conducting
research
• Microwave oven is only suitable for Western
food, not relevant with Indian food.
• “We know microwave oven can help us to
prepare the meal, but we need know how to use
it”
II. Target market analysis
Perception of target market about microwave oven
• “The food doesn’t taste the same when cooked
in a microwave”
• “The food doesn’t taste the same when cooked
in a microwave”
• Microwave oven is more and more important
today. The middle – income consumer comes
looking for novelty, value and competitive pricing.
II. Target market analysis
Perception of target market about microwave oven
• Many people are still unclear about how to
utilize the microwave, or some of them just use it
as a food reheating product.
• The size of the microwave oven is too small &
irrelevant with the money have to pay.
II. Target market analysis
• The wrong understanding about microwave
oven makes the India microwave market
much calmer than it should be.
• In fact, microwave oven has more other
benefits which the Indian consumers haven’t
discovered yet.
II. Target market analysis
Benefits of using microwave oven
Microwave oven:
• Saves time
• Easy to heat food
• Easy to clean
• Does not need to keep a watch
• Retains nutrients and vitamins in the food
• Safe for user
• Saves power much more than Oven toaster and Grill
→ Direct marketing – oriented an approach to create right awareness
about the benefit of microwave oven is very important
Strength
• Define target market based on the conducted
research
• Have resource and ability in producing
microwave oven
• Have experience in microwave oven
manufacture in USA, Asia and Europe
• Do marketing research carefully and gain
experience from competitor’s failure
Weakness
• The presence of company in Indian market is
limited at this time
• The products appear the introduction stage in
Indian market must be experimental and
improved after that.
• White appliances have less experience in Indian
Market
• The company could have minus benefit in the
first stage
• It’s difficult to change target customers’
perception about microwave oven
Opportunity
•
•
•
•
Big market with potential demand in long – term
Big gap market with few competitors
Get big benefit in long – run
It’s not too difficult to set up and develop the
image in rural market because of earliest
penetration
• Very strong policies of Indian government to
develop rural areas (finance, house, road,
electricity, water system)
Threats
• Limitation of Indian customers’ perception about
microwave oven
• Low income of target market may make the
profit increase slowly
• Appearance of potential competitors when the
products begin to be accepted in the target
market
MARKETING – MIX (4Ps)
•
•
•
•
PRODUCT
PRICE
PLACE
PROMOTION
Sales and benefits
Introduction
Stage
PRODUCT’S LIFE CYCLE
Decline Stage
Maturity
Stage
Growth
Stage
Sale
Benefit
0
t1
t2
t3
t (time)
PRODUCT
Product Design
Name: Microwave oven
Appearance: eye – catching
Size: Large size to meet the needs of a large
family
Colors: various colors, avoid the colors which
are considered unlucky by the Indian.
Package: well – protect the products, good
looking
Usage: User – friendly
Good and clear instruction (at least in Hindi and
English)
PRODUCT
Product policy
Credit: apply installment payment policy
Good After- sales
Good Guarantee
PRICE
Apply cost driven – competitive strategy, follow
the target long – term profit.
Acceptable price with rural consumers
PLACE
Chose reliable deliverers, base on wholesaler
and mainly on retailers to supply customers with
product conveniently
Pull marketing mix: stimulate the demand of
target customers by promotion, and they will
have request to buy products
deliver products mainly by land
Good inventory system organization
Ensure delivering product quickly, timely, exactly.
PROMOTION
Advertisement: In introduction stage,
advertisement focus on introduce the function
and the benefits of microwave oven
Consider TV and radio the main media because
internet has not been very popular yet.
Organize some big event related to product that
may attracted many consumers and leave a
good impression
→Take advantage of WOM kind (Words Of Mouth)
PROMOTION
Attach cookery accessories with products (the
accessories made from relevant material with
microwave oven)
Promotion programs specially head towards the
housewives
Sales is always parallel with consulting
In long - term
There will be some adjustments for 4Ps for each
stage of Product life cycle.
Sales and benefits
Introduction
Stage
PRODUCT’S LIFE CYCLE
Decline Stage
Maturity
Stage
Growth
Stage
Sale
Benefit
0
t1
t2
t3
t (time)
Introduction Stage
• P1: Producing a good product follow the perfect
design; launching the products to the market
with limited number to fathom the attitude of
target customers; special pay attention to their
response and focus on completing all dimension
of product.
• P2: No high price all the time, acceptable price
with rural customers
• P3: Create tightly distribution system with
selective channels
• P4: Change Indian perception about microwave
oven through announcement advertisement and
some promotion programs.
Growth Stage
• P1: Producing with larger quantity because at
this time, microwave oven is accepted by target
customers; there maybe some adjustments in
product so that it can meet customers’ need
more and more.
• P2: Price should be keep constant
• P3: Enlarge distribution system, always pay
attention to quality of the service
• P4: Continue advertising following the direction
of attracting more and more customers.
Maturity Stage
• P1: There should be some improvements in
product to make it new and more attractive in
customers’ eyes
• P2: Price should be keep constant to make profit,
or may be decreased a little bit to stimulate the
demand
• P3: Maintain current distribution system but always
discover new other market segment, pay attention
to quality of the service.
• P4: Continue advertising, there should be
something new in the performance, give presents
with product, …
Decline Stage
Specially pay attention to P3 !!!
• P3: Never forget to check distribution situation
which reflects the status of product’s existence
in the market
• P4: apply reminding advertisement and some
others promotion forms.