Marketing Strategy for White Appliances Microwave Ovens Chien Luck Jay Ralph Mega Praew Outline India’s Quick Fact India Nowadays Research Information Market Segmentation Marketing Mix: 4Ps SWOT Analysis Short-term Marketing Strategy Long-term Marketing Strategy India’s Quick Fact India is the seventh largest country in the world. India's population is one billion making it the second most populous country after China. There are generally more children in a family. In some places girls do not attend schools and becoming housewives. The food of India is extremely diverse, as ingredients, spices and cooking methods. Mega India Nowadays Microwave is not the-first-option to cook in India compared to Europe countries or United States. Indian people prefer cook in kitchen rather than using microwave WHY? Mega India Nowadays (cont.) Indian food preparation versus Western food preparation Indian foods •use of various spices, herbs and vegetables •wide assortment of dishes and cooking techniques Western foods •Simple ingredients and put substantial emphasis on sauces as condiments, seasonings, or accompaniments •Less-simple cooking techniques The taste of the dishes will be different if cooked by hand manually or by microwave. Mega India Nowadays (cont.) Microwave is becoming an emerging trend in small towns in India, since the Indians already get the knowledge how to used microwave daily. Indians like novelty, so microwaves may replace the demand of goods like second television or big refrigerators. Mega India Nowadays (cont.) Today, kitchen is not for women only, men can cook as well. Soon, microwave is taking up a key role as one of the daily use home appliances in Indian homes. Mega Research Information Facts Providing the microwave manner Not convenient and efficient for Indian cooking A microwave oven is beginning to replace the demand for a 2nd television or bigger refrigeration The middle-income consumer comes looking for novelty, value and competitive pricing Delhi and Mumbai recording the highest sales of microwave oven. The microwave is beginning to be seen in smaller towns. Pitcha Research Information (cont.) Comments Housewife bought microwave because she had money. Men uses the microwave oven to cook routinely. Taste of food that cooked by microwave, does not the same. Marketers have to convince Indian consumer that microwaves are suited to Indian food Pitcha Market Segmentation Target customers Middle class Geography Urban Suburban Demography College graduated or higher Age 22-40 years old Income over Rs. 30,000 Lifestyle Modern cooking Hurry-up lifestyle Pitcha Marketing Mix: 4Ps Product Strategy Compact microwave oven: toast and grill function Medium size: 30-liter capacity Modern appearance User friendly with less-button Auto cooking Multi-stages cooking Easy-to-clean and rust free Child safety lock Burst of steam keeps food moist and evenly hot Ralph Marketing Mix: 4Ps Pricing Strategy A little lower to competition, to attract the market in its introductory stage. But can be adjusted through time, depending on market response (may go low or high) *based on the flapped of Kelvinator’s Magicook *the middle-earner people can afford this, attached to the ideology of being a novelty & value item for ones kitchen Variation of regular & smaller size to capture the ideal family size & working young professional market (man & woman living alone) *company must be careful to over production, to eliminate the issue of discounting to dispose much volumes *Rs.12,000 Ralph Marketing Mix: 4Ps Promotion Strategy Incorporate the use of this microwave oven in a popular cooking show that’s being aired in major cities in India, if not all over the country ▫ To create awareness that a certain product exist * Have a great talent or a very popular person to be an endorser Entice the idea in making a promotional ads that everyone can use microwave to cook good food effortless, which even can man prepare his own food ▫ To make an impact that microwave can be a part of usual Indian kitchen set-up * Ads should also be seen online especially in those kitchen related websites; Establish an after-sales customer service is also necessary Chien Marketing Mix: 4Ps Promotion Strategy (cont.) Demonstrate microwave utilization in major malls or widely known appliance stores, capitalizing to the product’s special feature ▫ To illustrate how useful it can be in daily life & that this item was made specifically to fit the need of Indian people A suggestive tagline can be : “Your dirty-kitchen, less the mess.” This item has it all. Chien Marketing Mix: 4Ps Place Strategy Electricity shop ▫ Company’s shops ▫ Special electricity shops Personal sales Chien SWOT Analysis Strength Easy-to-use High technology Functional; toasted, grill, heat Weakness Microwave maintenance cost is high. (for user) Lacking brand awareness and image Long-term usage Safety for child Easy-to-clean Call center service After-sale service Praewphan SWOT Analysis (Cont.) Opportunity Social change (The changing lifestyles and family structure) Huge population (1.3 billion) Labor pool Threat Consumer unclear of other microwave utilizations for dayto-day cooking. Competitor intentions Praewphan Short-term Marketing Strategy Introductory Stage To position the product in the market A little lower pricing to the existing competitor Highlight on the special feature of the microwave in launching a promotional ads (cooking shows, mall demos, personalized cooking class, etc.) Advertising and communicating ▫ Use a known personality to endorse the product ▫ Movie, regular ads, internet banner Door-to-door marketing in the most populated places in the 7 major cities, to create awareness that the product exist Ricardo Short-term Marketing Strategy (cont.) Post-Introductory Stage To adjust the positioning of the product depending on the reaction of the market if it gets a considerable positive response, the company can leveled the price with the existing competitor the company will put add-ons or freebies, so that the market won’t be shocked with the sudden increase promotional ads will also be lessen to cut costs in marketing * if the market didn’t respond well, the company needs to cut much costs in other operational procedure Ricardo Long-term Marketing Strategy Brand awareness and Brand loyalty The same pricing cut down the freebies, expecting that the product had captured their market share “bring your old microwave, and get the newest model with special price” campaign Membership with points collection and additional microwaveable tableware for new purchase Large-scale distribution on companies to have a repeat-order Corporate Philanthropy: donate the microwave to cooking school, small-scale industries, suburban housewives, etc. Ricardo