Case study # 4
Marketing Microwave
Ovens to a New
Market Segment
Group 6 Members
Ha Phuoc Vu
M997Z244
Nguyen Tran Thao Bien
M997Z213
Patlada Sae-Ching (Nan) Nuntanut Sae-Ching (Vee)
M997Z240
M997Z236
Bui Duy Duc
M997Z202
Thai Luong Thu
M997Z221
Outline
 Overview
 Situation
 Market value
 White Appliances - Introduction
 SWOT analysis
 Strategies
 Target Market Strategy
 4P’s in marketing
 Short-term and long-term strategies
 Conclusion
OVERVIEW
• Situation
• Market value
• White Appliances - Introduction
Situation
 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.
Situation
• Today, these players control the major share of the
consumer durables market. 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 were entering in the market with the
increase in income levels, easy availability of finance,
increase in consumer awareness, and introduction of new
models, the demand for consumer durables has increased
significantly. Products like washing machines, air
conditioners, microwave ovens, color televisions (C-TV)
were no longer considered luxury items.
Growth 2007 - 2008
MARKET VALUE
The Indian consumer electronics market
grew by 7.6% in 2006 to reach a value
of$3.8 billion. The compound annual
growth rate of the market in the period
2002-2006 was 11.1%.
Table of India Consumer Electronics Market Value
White Appliances - Introduction
• We are White Appliances - an international
company that manufactures and markets
appliances globally.
• The company has a line of microwave
ovens. We market several high-end
models in India which are manufactured in
US.
White Appliances - Introduction
• We believe that through technology innovation
today, we will find the solutions we need to
address the challenges of tomorrow. From
technology comes opportunity for businesses to
grow.
• It’s our aim to develop innovative technologies
and efficient processes that create new markets,
enrich people’s lives and continue to make
White Appliances a trusted brand.
STRENGTHS
•
•
•
•
High technology
Product is simple to use
Microwave oven is a convenient and
efficient way to cook
Use for a longtime
WEAKNESSES
•
•
High cost
expand for
production
The presence in
the Indian
market is limited
at this time
W
WEAKNESSES (Cont’d)
• High cost for
maintaining
the
microwave(for
user)
• Not common in
use in India
(strange tools)
OPPORTUNITES
Microwave companies seeks a lot of
opportunities that utilize their strengths
of innovation changing customer’s
demands and flavors has helped
Microwave companies launch it product
at a mass scale. Today most customers
are looking for new and updated product
is that provide maximum benefits at the
same time.
OPPORTUNITES
So Microwave companies see an opportunity
of its product’s being accepted at a
considerable pace. The second opportunity
Microwave companies is the huge population
of the targeted country so the consumer
base requiring such appliance is going to be
large.
OPPORTUNITES
Moreover the countries economic condition
and the industrial atmosphere is quite
healthy which also enhances the
opportunity for the company.
1. Changing customer needs / tastes
2. Huge population (1.3billion)
3. Economic condition and good industrial
atmosphere.
THREATS
Microwave companies has threat from its
competitors. More and more companies
entering into the microwave oven field is
increasing the competition level. Microware
companies is facing such competition which
has added in its threat.
THREATS
Moreover one more threat
Microwave companies is
facing is the Socio
Cultural Trends in the
society.
1. Competitor
2. Socio Cultural Trends
Competitors
• White Appliances competes directly with several
international companies like Samsung, Whirlpool
and LG Electronics India
• Microwave brands available in India
 LG
Godreg
 Samsung
IFB
 Whirlpool
Onida
 Sanyo
Haier
 Electrolux
Videocon
Strategies
Target Market Strategy
4P’s in marketing
Short term & Long term strategy
Target Market Strategy
Microwave companies utilizes the latest high
end technology to attract the customers. The
women in the age group 22-45 who are
looking for latest updated technology in
kitchen appliances constitutes the main
market target.
Target Market Strategy
To reach them feature are added that are
catching to these group of people. Although
women are the main target group, Sony does
not underestimate men either in their
importance as they can also influence the
housewives decisions and can also have
interest in cooking.
Product
• Tailoring product to suit with Indian market
 Size match with large Indian vessels
 Special cooking function for Indian food
• Ease of use
 The whole family can use it
• After sales service and call centers
• Saving energy product
Product
• Stylish design
• Using nutrition technology to retain
vitamins and food’s vital nutrients
• Offer several models to fit with each Indian
family (compact, medium capacity, large
capacity)
• Health wave system for health benefits
Price
• Wide range of price
 High-end (premium)
 Medium price for middle income consumer
 Low price for rural consumer
• Manufacture product in India and reduce
import content to cut cost
Place
• Focus on the top 16 Indian cities to promote
through new retailing activities.
• Urban Market
 Electronic specialty store, Malls and
Department Stores
 Give a brand shelf space
• Rural Market
 Direct selling
Promotion
•
•
•
•
•
•
•
Discount at festival time
Product placement
Advertising in cuisine books, magazines and
TV programs
Organizing Indian food cooking classes by
using our product
Offering Indian menu recipe books to customer
Installment Sale
Trade show booth to spread brand awareness
Short term & Long term strategy
• Short term strategy
 Penetrate rural market
 Maintain urban market
Short term & Long term strategy (cont’d)
• Long term strategy
 Continue to launch Microwave Oven with
new features
 Introduce new innovation products
Conclusion
The change in consumer habits create new opportunities
Pricing policy is one of the important factors
The development of technology is the key to success for the
market seems difficult
Style, size and product enhancements designed to suit each
market segment
Conclusion
The change in consumer habits create new opportunities
The new recipes has changed somewhat the habit of using
microwave Indians.
“To change the way you look, just change the way you cook”
was a recent tagline by one of the companies
What really drives the growth of this product will be a change
in eating habits
Conclusion
Pricing policy is one of the important factors
There is some difference of opinion on the righ price for the
ovens.
Microwave companies face a chicken-and-egg question on
price and sales.
Conclusion
Pricing policy is one of the important factors (cont’d)
Prices will not come down easily until volumes go up, while
volumes depend on prices
The price of the microwave is different. Each company has
a different pricing policy. Additionally, the support function is also
one of the factors which decide the price
Conclusion
The development of technology is the key to success for the
market seems difficult
Though the concept of microwave ovens is western, the fact
Is that microwave technology to day has advanced to a level
wherein even complex cooking like Indian cooking is very much
possible.
Conclusion
The development of technology is the key to success for the
market seems difficult (cont’d)
Microwave is now described as a multi-function device rather
than a warming device (a substitute to the Oven Toaster
and Grill).
Conclusion
Style, size and product enhancements designed to suit each
market segment
Q&A