Samsung Case Study

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Microwave Ovens
Group Two
Group Two Members
Khuong
M997z212
Jarinthon
M997z225
Thao
M997z216
Rattaya
M997z230
Huong
M997z226
Son
M997z209
Contents
1
2
Introduction about Microwave Oven
Introduction about White
Appliances
3
Indian Food Preparation Versus
Western Food Preparation
4
Values and Customs
5
Marketing Mix
6
Market Data
7
Conclusion
Introduction About
Microwave Oven
 The heating effect of microwaves was discovered
accidentally in 1945 by Percy Spencer, an American selftaught engineer from Howland, Maine. Called the Radar
Range, the first microwave oven to go on the market
was roughly as large and heavy as a refrigerator (height
5 1/2 feet tall, weight over 750 pounds, and cost about
$5000 each).
 By late 1946, the Raytheon Company had filed a patent
proposing that microwaves be used to cook food.
In 1967 the first countertop, domestic
oven was introduced. It was a 100-volt
microwave oven, which cost just under
$500 and was smaller, safer and more
reliable than previous models.
In 1976, the microwave oven became a
more commonly owned kitchen appliance
than the dishwasher, reaching nearly
60%, or about 52 million U.S. households.
Introduction About
White Appliances
 White Consolidated Industries Inc. (WCI), part of
the Electrolux Group since 1986, manufactures and
markets a wide variety of appliances for Electrolux's
North American operations. Perhaps most
recognized in the United States among WCI's
holdings are the brand names of Viking and White
sewing machines, Eureka vacuum cleaners,
appliances under the Philco, White-Westinghouse,
and Tappan names, and Poulan/Weed Eater
chainsaws and trimmers.
 In 1975, with the purchase of Westinghouse's major
appliance business, WCI welcomed the opportunity
to purchase a brand that would help it compete with
appliance giants General Electric and Whirlpool.
 WCI bought the American Tool Company in 1980.
Between 1975 and 1985, its sales jumped from
$1.2 billion to more than $2 billion. In fact, by
1983, WCI was the nation's third largest
manufacturer of refrigerators, stoves, and air
conditioners. The company's 84 plants were
scattered across the continent, each run with
basic autonomy.
 The company focused on three divisions in 1985:
home products, which contributed about 76 percent
of sales; machine and metal-basting divisions,
providing 12.1 percent of sales; and the general
industrial and construction equipment division
pitching in the rest.
 AB Electrolux needed to widen its place in the U.S.
market. WCI seemed the perfect ambassador.
Electrolux approached WCI in 1986  the merger
took place.
 In the early and mid-1990s, home appliances and
products continued to WCI's largest sector.
Indian Food Preparation
Versus
Western Food Preparation
 There different ways of food preparation between Indian and
Western.
 Cooking Indian food is more complex and time consuming
because of the preparation required for the recipe while
Western food quite simple and easy.
 Characterized by its sophisticated and subtle use of many
spices and herb.
 It is very satisfying to make all the cuisines with one's own
hand and earn the appreciation of the person who will eat it.
 Indian cooking, like any other cuisine has its own list of
cooking techniques and equipments that are needed to get
thing working in the kitchen.
 Indian Cuisine can be categorized into two regions which are
North Indian Cuisine and South Indian Cuisine.
Indian Cooking in Northern Part
 A typical North-Indian meal would consist of chapatis or rotis
(unleavened bread baked on a griddle) or paranthas
(unleavened bread fried on a griddle), rice and an assortment
of assessories like dals, friend vegetables, curries, curd,
chutney, and pickles.
 They’re widely use in most dishes along with spices.
 Oil is generously used, as many people prefer deep fried
curries.
 Desserts are very similar in taste as they are derived from a
milk pudding or rice base and are usually soaked in syrup.
Indian Cooking in Southern Part
 South Indian food is largely non-greasy, roasted
and steamed.
 Rice is the staple diet and forms the basis of every
meal.
 Coconut is an important ingredient in all South
Indian food.
 Always use generous amount of spices that make
the food really tasty.
 Most non vegetarian dishes have fish as the main
ingredient.
Western Food
 Simple and easy way of
cooking.
 They cook the food by
Grilling: cooking food directly
over a sauce of dry heat.
 Baked Food : such as turkey,
cake, cookie, bread etc.
 Mix with vegetables and
Sauce for Salad.
 Bread, potatoes, meats and
vegetables the way
westerners eat.
Values and Customs that might
Affect Opinions about
Microwave Ovens
Good Affect To Customer’s Opinion
 All Indian dishes can be prepared in a microwave,
people only need to know how to use one.
 Some customer very surprised before its
performance:
- Saving cooking time.
- Easy to reheat food.
- Easy to clean.
- No need to keep on eyes on it.
- Retains nutrients and vitamins in the food.
 Designing the microwave suited to Indian’s
cooking such as for example the reddish color,
scents, and ancient cuisine.
 To get the user to cook in the microwave oven
rather than use it for reheating food.
 Microwave’s features like novelty, value,
competitive pricing attracted middle-income
consumer.
 People use it to cook routinely because of its
convenient and efficient.
Bad Affect To Customer’s Opinion
 Some people say that food doesn’t taste the same
when cooked in a microwave oven.
 Eating habits of Indian changed.
 Food cooking by microwave ovens may change taste.
 Many experts warn that nutritious values of food will be
lost if cooking by microwave.
 Some reports show that a microwave oven will divest
the vitamin contents out of the food due to the
radiation.
 Some food cooked in microwave oven could be lead to
obesity and diseases.
Marketing Mix
 Product:
- Design product for suiting with Indian food
and culture.
- Modern style of product.
- Convenient, easy-to-use and efficient to cook.
- Can replace demand for a bigger refrigerator.
- Saving energy and space.
Price:
- Flexible price: (Rs 7.000; Rs 18.000); (Rs
12.500; 15.000) and ( Rs 17.900 for an oven
with gill functions).
Place:
- Top seven cities ( 70% of market with
Delhi and Mumbai).
- Expanding to explore in non-urban
market, semi-urban.
Promotion: Long-term
 Promotion programs focus on the health and
the convenience
- Showing out some researched evidences about
the safety for customer’s health if using White
Appliance microwave ovens.
- Promoting products to the customers through
the slogan: “less cooking time, more tasty dishes”
- Appoint 100 authorized wholesale distributors
who will cater to mini retailers in small and big
towns.
- Dealer network across the country, market
microwave ovens through those direct dealers.
Promotion: Short-term
 Offering Indian menu recipe books to show
customer on how to cook Indian dishes in
microwave oven.
 Giving away accessories such as glass bowls,
aprons and gloves as freebies and hosting co –
promotions.
 Inviting some well-known Indian chefs to
provide post-sales cooking experience by
microwave oven to women.
 Changing awareness about benefit of Oven
( not only reheating but also cook well) by
direct marketing.
MARKET DATA
Microwave ovens used to be a western
concept, but it is not so any longer.
The fact that microwave technology
today has advanced to a level
wherein even complex cooking like
Indian cooking is very much possible
The production of Microwave Oven in 20062007 was 675000 units.
In 2008, survey showed that microwave
ovens currently has about 1 billion users,
the domestic rate of urban households
have more than 95%.
The world market for microwave ovens is
projected to reach 72.5 million units by the
year 2015.
Europe and Asia Pacific dominate the global
microwave ovens market as stated by the
new market research report on microwave
ovens market.
China is the largest and the fastest growing
market across Asia Pacific, with an
estimated market share of over 37% in the
year 2009.
Key players include Alto-Shaam, Inc.,
Bakers Pride Oven Co. Inc., Bonnet
International, Frigidaire, GE Appliances,
Hoover Limited, Kenwood Limited, LG
Electronics, Inc., Manitowoc Foodservice,
Maytag Corporation, Panasonic
Corporation, Samsung Electronics Co Ltd,
Sharp Corporation, and Vulcan-Hart,
among others.
 Samsung India has emerged the clear leader
in the 2.6 lakh unit microwave oven market
with 33.6% share over October- March 2007.
 LG trailing at 31.3% market share, as per the
latest data made available by market research
agency ORG.
 Videocon International's brand Kenstar has
occupied the number three position with
10.6% share of the market.
National Panasonic's brand is placed next
with 6.1% share.
Japanese major Sharp and Whirlpool are in
a neck-and-neck race with 4.2% and 4.3%
share of the microwave oven market
whereas BPL is placed at the lowest with
1.6% percent market share, as per ORG
data.
Conclusion
 By Considering the factors:
- Differences in preparation of Indian Food to
Western Food.
- And the Values and customs that will effect the way
of cooking, the using of microwave ovens.
- With right products, good promotion programs and
right place in India, and a good price.
Microwave as a product has become a high
growth segment in Indian market only
recently, with the changing lifestyles and
family structure the product is finding more
and more acceptance among Indians.
 Microwave cooking is not suited to Indian way
of cooking , and with the changes made by
manufactures
to
incorporate
additional
features to accommodate our cooking styles
has also lead to its increased acceptance. The
projected production of microwave oven sin
the country is set to touch 1 million next
year.
 Considering the economic growth and the faster pace
of living of Indians in urban areas, the necessity of
microwave oven can be easily seen, thus the short
term plan is made.
 By introducing new ways of using the microwave
oven, Indians will eventually see the benefits and the
need to own one. Thus, since the urban areas are
familiar with the usage of the oven, it is easier to
penetrate the rural market areas.
Q&A
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