White Appliances
Marketing Micorwave Ovens to a New
Market Segment
Group Members
Li Merlin (Merlin)
M987Z246
Huynh Than Phong
(phong) M987Z242
Victor Marbun
(victor) M987Z259
Nguyen Thi Thanh Nhan
(Nhan)M987Z232
Thidarat
Prasitpornphakdee
(Nok) M987Z245
江孟唐
(Johnson)M98C0242
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 Analysis
Internal Situation Analysis

White Appliances is an international company
that manufactures and markets appliances
globally. We has a line of microwave ovenssome manufactured in the U.S. and some in
Asia.
Situation Analysis
Internal 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 Analysis
Internal 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 Analysis
Internal 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 Analysis
Customer 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 Analysis
Customer 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 Analysis
Customer 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 Analysis
Customer Situation Analysis (con’t)

Behavioral Segmentation: Micron 1200 will
be most useful for heavy users whereas the
Micron 1000 for light users.
Situation Analysis
Customer 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 Analysis
External 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 Analysis
External 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 20022006.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 Analysis
External 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.
Situation Analysis
External Situation Analysis (con’t)
SWOT Analysis
A.
1.
2.
3.
B.
1.
2.
3.
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)
C.
1.
2.
3.
D.
1.
2.
Opportunities
Changing cutomer needs / tastes
Huge population (1.3 billion)
Economic condition and industry atmosphere is
good
Threats
Competitor
Sociocultural Trends
Analysis the SWOT Matrix
Strengths
1.
high technology
2.
use for long time
3.
high class image/lux
image
4.
easy to use
Opportunities :
1. huge population
(1.3 billion)means
more wide market
2. economic and
political
environment is
good in India
Threats
1. Competitor
2. Sociocultural
Trends (culture)
SO
-
-
with huge population in
India, the company can
markets their product to
wide people
simple to use, so user
will aesy to use and
simple
ST
- Competitor still small,
and easy to identificate
- With technology we
can make product
cheaper but in tolerate
price because of the low
buying power
- Change the habit will
impact the sales, when
they think the micro
wave is worthed they
will buy that for next
Weakness :
1. high cost expend for
production
2. high cost for
maintaining the
microwave
3. difficult change the
culture of cooking
4. not common or a little
bit complex to use
WO
high cost in
production will make
impact in quality and
R&D for long term
investment
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.
1.
2.
3.
4.
5.
6.
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.
7.
8.
9.
10.
11.
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.
Comparison
Conventional
Layer-by-layer, outside to inside
Cooking through Oil
Microwave
Even cooking, inside to outside
Cooking through Water molecules
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
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
1.
2.
3.
4.
5.
6.
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 ?
Answer