CONSUMER DURABLES

Group MembersJasvinder Notra – 115

Karan Oshan – 116Rahul Pandey – 117Nikhil Pandit – 118

Hemika Parekh – 119Rahul Parui – 120Sahil Jhaveri - 66

SITUATION ANALYSIS

Consumer Durables

• Products purchased for long-term use• Few items in every household• Divided into the following 3 parts:

White goods Brown goods Consumer electronics· Air conditioners· Refrigerators· Washing Machines· Sewing Machines· Watches and clocks· Cleaning equipment· Other domestic appliances

· Microwave Ovens· Cooking Range· Chimneys· Mixers· Grinders· Electronic fans· Irons

· TVs· Audio and video systems· Electronic accessories· PCs· Mobile phones· Digital cameras· DVDs· Camcoders

Problems and Challenges• Forecasting rate of product

development• Adoption rate of new product• Imitators (Word of mouth)• Increasingly expensive raw

materials• Low margin – high volume

business• Competition• Changes in psychographic and

demographic profile of the consumer

Contribution to GDP

• 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

Trends

More about the Industry

• Major Players:Samsung, Whirlpool, LG, Godrej, Sony, Hitachi

• Market SizeConsumer Durables

Market Size (2012)

Mn units (2013E)

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

Market Share by Segments

PEST

Political Factors

• 36.05 % duty on import of high-end TV sets• Duty on consumer durables cut from 12% to

10 % in interim budget 2014

Economic Factors

• Growth of retail sector• Economic reforms by government –

higher purchasing power• Indian income to grow 3 fold in

coming 2 decades• Easy financial schemes to consumer• Emergence of organized retail

market

Social Factors

• Luxury is now necessity• Brand Image tarnished due to Security Attack• Expensive compared to local brands

Technological Factors

• Power efficient• Higher quality products• Technological advancements• Corp culture for investing in R&D

Marketing analysis

• Sony Corporation, Japan based• Operations in India Est. November 1994• Sony's turnover touched Rs 8,200 crore during the last

fiscal• Targeting a sales turnover of Rs 11,000 crore

nationally this fiscal• The company is aiming the number one position in

Flat panel TV market• 41,000 units sales of BRAVIA during the festival

period (Onam in Kerela), a 40% growth

Our Product

STPD Analysis

• Magnetic fluid Speaker• True Luminos Display• SimulView technology• Sony Entertainment

NetworkPlayMemories Studio

• Never Experienced• Experience Perfection• Brand Image

• Age Group • Upper middle

classes and upper class

• Income - Upper middle & upper class

• Geographical - Metro Cities & A tire

• Behavioural – People interested in new tech

• Physiographic – Social Class S T

DP

Product

• 55” and 65” available in all stores• 84” available on order• Best ever quality picture• Magnetic fluid speaker • Wi fi • Internet connectivity service

Pricing

• Penetrative Pricing

Sony Samsung LG

55” 3,15,000 3,30,000 3,30,000

65” 4,15,000 4,40,000 4,50,000

84” 17,00,000 28,00,000 17,00,000

Place

Distribution network 7000 channel partners 215 Sony World and Sony Exclusive outlets 21 direct branch locations 21 company owned, 172 authorized service

centers For UAE jumbo electronic

Promotion

• Network, email and advertisement.• Never Experienced• Experience Perfection• 4k movies and 4k galleries with TV• Advertisement

Strength

Weakness

• High prices compared to local players• Not much visible change compared to 1k• Limited content available• Network infrastructure availability

SWOT AnalysisOpportunities

• Increase in spending power• Duty on consumer durables decreased • Import duty on LEDs increased

SWOT AnalysisThreats

• Launch of Indian Brands in 4k Segment (Videocon)

• Panasonic entering the market• Launch 8k televisions ( Samsung & Sharp)• Fear of technological advancements• Convincing consumers

Competition Analysis

• LG and Samsung available at high prices and less features compared to Sony.

• Videocon 4k led TV recently launched but not available.

• Panasonic planning to launch in India

Competition Analysis

• Sony remains no 1 but still Samsung and other Chinese brands are coming up.

• Not many people prefer Sony and Samsung which are too costly .Some Chinese brands which have grown up.

2nd quarter 2013 4th quarter 2013

Sony 42.4% 18.2%

Samsung 3.8% 14.9%

Skyworth 13.9%

Chang Hong 11.4%

Hisine 10.5%

Direct Competition

4k Projectors

8 k TV

Indirect Competition

• Google Glass• Laptop• Curved LED

Suggestions

• Similar products with less features, hence less range

• Advertising campaigns with Star Sports, ESPN, Ten Sports, HBO, AXN Sports in theatre effect

• Target Hotels and Corporate houses• Tie up with upcoming 4g providers like Airtel

and Reliance

Suggestions (cont)

• Come up with HDMI 2.0 output• “Mastered in 4K” Blu-rays CD should have

resolution in 4K (and not just Full HD)• 4k Gaming content unavailability• Upscale DTH content to 4K