Post on 16-Jul-2015
MARKETING APPLICATIONS
Session 5
Industry Dynamics…..
Size:Rs 350 billion Categories: White goods, Brown
goods, Consumer electronics Margins: lower depend on volumes Competit ive scenario: Dominated by
Korean majors like LG & Samsung
White goods Brown goods Consumer electronics Air conditioners RefrigeratorsWashing Machines Sewing MachinesWatches and clocksCleaning equipmentOther domestic appliances
Microwave OvensCooking RangeChimneysMixersGrinderElectronic fans Irons
TVsAudio and video systemsElectronic accessoriesPCs Mobile phonesDigital camerasDVDsCamcoders
Indian Consumer Durables Industry Segment
What are Consumer Durables?
Consumer durables involve any type of products purchased by consumers that are manufactured for long term use
Classification…1.Consumer Electronics includes VCD/DVD, home theatre, music
players, color televisions (CTVs), cameras, camcorders, portable audio, etc.
2.White Goods include dishwashers, air conditioners, water heaters, washing machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, tumble dryer, personal care products, etc.
3. Molded Luggage includes plastics
4. Clocks and Watches
5. Mobile Phones
Some FACTS… India 4th largest economy in the world as
per PPP (purchasing power parity) 50% of population below the age of 25
years 56 million people in the middle class Growth seen at 23% from 2007
onwards
Consumer Durables
Market Size (2010)
Mn units (2011E) Growth (%)
Flat Panel TV 2.8 4.5 61
Refrigerator 9.0 12.0 33
Washing Machines 5.0 6.0 20
Air Conditioners 3.4 4.4 29
Microwave 1.0 1.5 44
Source:CEMA
Market Growth…..
Key Factors responsible… Changed lifestyle Higher disposable income Changed taste Affordable prices Boom in housing and real estate industry Widened market- expansion of rural market Increased scope for advertising Easy financing- zero interest EMI Easy loans and credit card purchases Festival deals and discounts
Now Then
Flat Panel (LCD, LED) TVs
Frost Free RefrigeratorsConvection Microwave
Blue Ray DVD Players, MP3s
CRT TV
Direct Cool RefrigeratorBasic Microwave
Cassette Players
Market Trends…..
Key Growth Drivers….. Continued economic growth demonstrated through 8.4%
CAGR growth in GDP over last 5 years Favorable demographics; 64% of the population in working
age category Increasing Urbanization, nuclear families Increase in disposable incomes; which drives consumption Increasing affordability coupled with declining prices of
products Lower consumer product penetration Availability of new products and technologies, Easy financing schemes and Increase in organized retail
Investment Options Identified…
High-end color TV Split Ac`s Mobile phones
Key Factors…(manufacturers perspective)
Product technology Distribution & service network Innovation in advertising & promotion Attractive locations
SWOT Analysis…
STRENGTHS Established distribution network in both
urban & rural areas Presence of well known brands Organized sector has increased its
market share against the unorganized sector
SWOT Analysis…
WEAKNESSES Demand is seasonal & high during
festive season Demand relative to good monsoon Poor government spending on
infrastructure Low purchasing power of consumers
SWOT Analysis…OPPORTUNITIES Penetration level low as compared to
developed countries Unexploited rural market Rapid urbanization Increase in purchasing power Easy finance
SWOT Analysis…
THREATS
High import duties on raw materials Cheap imports from China, Singapore &
other Asian countries
Scope…
India 24%
Brazil 11%
China 98%
US 333%
France 235%
Japan 250%
Penetration level of Colour TV's
Scope…
1995-96 2005-06 2009-10
Demand 3.43 million 8.72 million 13.14 million
Penetrat ion Level
149 per 1,000 households
319 per 1,000 households
451 per 1,000 households
Major Players… Nokia India LG Electronics India Ltd. Philips India Titan Industries Samsung India Electronics Godrej Whirlpool Appliances Siemens Sony India Hitachi Videocon Industries Blue star Toshiba Sharp India
Print Ads…
Print Ads…
Print Ads…
Print Ads…
Tag Line…
The rural scenario??? Current growth rate 45% approx 69% of India resides in rural areas &
contributes only 35% of sales Improves infrastructre,agro reforms,
power availability, entry of private labels will boost further growth
Key Challenges….. Intense competition among players - leading to higher ad
spends and lesser pricing power, thereby lowering margins Increase in raw material prices – major raw materials
(metals) are exhibiting increasing trend posing margin pressures; however, shift in product mix to partially offset increase in input costs over the medium term
Changes in technology - making product lifecycles short Rural distribution - availability of products to masses is
difficult as 69 per cent of India’s population still lives in rural areas.
Entry of cheap products - as private labels in organized retail
MARKETING APPLICATIONS
Cadbury- The King of Indian Chocolate Market Cadbury is a leading global
confectionary with headquarters in UK It began its operations in India since
1948… Per Captia Consumption-India (Urban) 160 gmUK 8 kg
Cadbury- The King of Indian Chocolate Market “Creating brands people love”- core
purpose of Cadburys operations Indians traditionally prefer MITHAI to
chocolates… Cadburys work for change in mindset
Cadbury- The King of Indian Chocolate Market
THE Journey… Transformation from “just for kids” to
“the kid in all of us” “Khane walon ko khane ka bahana
chahiye” “Kuch meeta ho jaye” “Pappu pass ho gaya” “Rishte pakne do”
PRODUCT ANALYSIS Recommended by IMA (Indian Medical
Association) India's most TRUSTED Brand (ORG
MARG Brand Equity Survey) Since 1933
Market Offerings
Dettol Solutions Finder Antiseptic Liquid Soaps Liquid Hand wash Body Wash Shaving Cream Plaster
SOAPS
Dettol Original Dettol Skincare Dettol Cool Dettol Fresh
CUSTOMER ENGAGEMENT Dettol Surakshit Parivar
3 LEVELS… New Mother Programme School Hand washing Programme Hospital Programme
REACH:Delhi, Mumbai, Kolkata,
Chennai,Banglore & Hyderabad