Daikin case study_stp_marketing
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Transcript of Daikin case study_stp_marketing
1) Indian Climate Control Industry
2) About Us
3) Our Current Strength
4) SWOT
5) Business Plan
6) Environmental Analysis of Air Conditioning Market
7) Market Survey
8) Targeting Segment
9) Our Strategy
10) Positioning
Content
Climate Control directly refers to the process /mode of reducing the effect of climate
to make the human & material comfort.
Basic Technique to achieve this is called HVAC ( Heating, Ventilation & Air
Conditioning)
Industrial Segment– catered by Chillers & Air Handling Units
Commercial Segment- Catered by Ductable Splits
Residential Segment – Catered by Window/ Split AC
Air Conditioning Penetration in India (4%) is very low when Compared to other
developing countries like china ( 53%)
Air Conditioning Penetration is very Low (3%) in Middle Income Household when
Compared to other White Goods like TV (77%)
2
4
3
1
5
Indian Climate Control Industry
Indian Climate Control Industry Climate
Voltas
20%
LG
20%
Pansonic
15%
Daikin
12%
Hitachi
7%
Others
26%
BEE has upgraded the Energy Standard of Split AC
to higher level in line with energy Conservations.
R22 refrigerant being replaced by R410A to reduce
the green house effect.
New Technology are emerging to Fulfill the Consumer Needs like Energy efficient,
Health Conscious, Aesthetics, Operating Cost & Environmental Requirement.
6
7
9
Major Players
Split AC Variant Market Share is in Increasing trend ,
Captured almost 80% in 2013 % where as Window AC
Market Share is 20%
More Number of Players are Entering & Expanding in to Air Conditioning Market
to Capture the Untapped Market. Air Conditioning Market is expected to grow
CAGR of 13% (13~18)
10
8
Global leader in the manufacturing air-conditioning systems, founded in 1924
First Packaged Air Conditioner Introduced in Japan ,1951
World's first Variable Refrigerant Volume (VRV) system Introduced in 1982
Having strong Presence in Asia, North America & Europe
Daikin India is a 100% subsidiary of Daikin Japan, founded in 2002
Having superior technology solution for energy efficient air conditioning
Offering premium air conditioning solutions to the Indian Consumers
Captured 12 % Market Share in Very Short Period of time
Daikin
Global
Daikin
India
About Us
Multidimensional Overview
Mfg Plant Administration
Logistic Sales & Service
Finance Market Position
Net Sales – Rs 805 Crores
Investment in India – Rs 7,427 M
CAGR – 133 %
Market Share – 12 %
Serving Premium Market Segment
Daikin is India's No. 3 AC maker
Manufacturing Facility -1
Wide Range of AC Product
Branch Office- 11
Resident Offices- 13
Mother ware house- 4
Supporting Ware house- 17
Channel Partners-805
Authorized Service Providers-61
SWOT Analysis
• Manufacturing Facility in India
• More Localized Part
• Strong Logistic, Sales & Services
• Having Patented Technologies
• Indian Consumer Reminds us
Energy Efficiency Technology
• Multicultural Working Environment
• Communication Barrier
• Transfer of Technology
• Critical Parts are Knock down Parts
• Manufacturing Technology not in
India for Critical Process & Product
• Localization of Parts with Strategy
sourcing
• Commonization of Parts to reduce
the design cost
• Govt Policy on Retail Markets
• More no of Players Entering
• All players entering in budget
segment
• Brand Value may Reduce
• Stability of Govt.
Strength Weakness
Opportunity Threat
Environments Analysis
Increasing House Hold Disposable Income
Increase in Modern Housing & Multi storey Apartment. Demographic
Growing Middle Class especially in Tier 2 & Tier 3 cities
Growth in Retail Sectors & Easy Financial Option Economic
Consumer Perception is shifting from Luxurious to Need
Owning of Air-conditioning becomes social Status
Socia
Cultural
Energy Efficiency Consideration to Meet the BEE Requirement
Alternate Refrigerant to fulfill the Environmental Requirement Technology
Global Warming could be Driving Factors
Govt Policy Favoring towards the Retail Segment
Political -
Legal
1 Bundling Offer
2 Online Order
3 Visual Appearance : Look & Feel
4 Auto Features
5 Income/ House
6 No of Room
7 Preferred Brand & Reason
8 Bed Room Size
9 EMI Option Preference
10 Size of Family
11 Present Air Control System
12 Avg Electricity Bill
13 Discount Sales
14 How long staying in this City
15 Expectation from Air conditioner
Market Survey
Features
Convenien
ce
Life Style
Price
About Market Survey
Surveyed Conducted in 7 Major Cities, 15 Tier 2 Cities
& 10 Tier 3 Cities
10,000 Peoples were Covered
Targeted Annual Income Level Rs 75,000 to 10,00,000
Survey Covered both Existing Customer, Competitor
Customer & Alternative User
Price
Low High
Premium/Durability (VFM)
Low
High
Mitsubhishi
Daikin
Panasonic
Samsung/LG
Voltas
Haier
General
Onida
1 Ton AC , 3 Star Rating
Carrier
Base Variant
Our Current Position in Residential Air Conditioning
Gap
Daikin, Offering Premium Products To Premium Customer.
Haier And Onida are offering cheapest air conditioner to lower middle income
Indian consumers.
Market is highly Competitive due to global players like Samsung, LG Haier &
Indian Company Voltas.
It Is Very Clearly Evident That , Huge Potential is Still Untapped by most of the
Players in Budged Air Conditioner With Mid Level Feature.
Tapping this Segment can be achieved through low Manufacturing cost, Localized
Parts, Innovation in technology to differentiate the product from other low cost
product portfolio.
Our Current Position in Residential Air Conditioning
Cities
Tier 2 Tier 1
AC Penetration/Utility
Low
High
Delhi
28%
Mumbai
35%
7%
Chennai
Delhi
4%
Kolkatta
4%
Hyderabad
3 Bangalore 1 1 1 1
Pune Indore Nagpur Patna
Other
Cities
15%
Air Conditioning Penetration in Indian Cities
0%
60 %
Tier 3
Chennai Hyderabad Pune Madurai Patna
Gap Gap
Tier 2 & 3 Tier 1
House Hold Income
Lo w (< 75 Thousand)
High (>10 Lakhs)
Urban
Bangalore
Pre Urban
Mid (1.5 ~ 3 Lakhs)
30%
26%
21%
10%
3%
32%
27%
20%
7%
10%
3%
7%
House hold income Vs Indian Cities Vs Air Conditioning Penetration
80%
market
Share
AC -
20%
market
Share
Air Cooler
-17%
Market
Share
Air Condition Makers are Mostly Concentrated only on Metros & other Tier 1 Cities.
Most of the Players have neglected the Tier 2 & Tier 3 Cities like Patna, Indore, Nagpur,
Madurai, Tirunelveli due to wrong perception about the Profitability.
Consumers in this segment are more sensitive toward the price.
Pre Urban Areas Offer huge Opportunity, House hold Income of those areas are equal to
Urban areas. Air Conditioner Maker have captured only 20% of the Market share from these
pre urban which is having same potential as like Urban area.
These Segment peoples are showing more interest toward the cheaper alternative like air
cooler which cost around only 5,000/- . Minimum Price of the air conditioner is around
16,000/- which is far higher than air cooler.
Operating cost of the air cooler is only 1/10 of the operating cost of Air Conditioner.
Air Cooler have 17 % market share from these segment, clearly pointing out high elasticity
in the Indian durable Market.
House hold income Vs Indian Cities Vs Air Conditioning Penetration
Low Exposure in financial Options are also contributing Factors for slow Growth in these
segment. Financing Option in consumer durable only 5-7% of total revenues of 2012, but in
contrast, the automotive has benefited in large scale around 72% of total revenue through easy
financing option.
It is clearly evident that High Price , High Operating Cost & High Initial Costs are the
concerns for air conditioning market.
Low Prices air conditioner with affordable operating cost can be achieved through
Innovative & Existing technology like inverter for Efficiency Seeker & Health Conscious.
Easy EMI Options & Communication of Options for lower Middle income People
Sourcing Strategy to achieve low cost for Price Conscious consumers.
Increasing income & Changing Life style of people in Pre urban/Semi urban will offer huge
opportunity to promote the brand & increasing Market Share from 12 % to 20 % .
House hold income Vs Indian Cities Vs Air Conditioning Penetration
Gap Found in Tier 2 & Tier 3
Cities
Serving only Premium Consumer,
Gap Found in Budgeted Air
Conditioner
Semi Urban Middle Income House
hold is not focussed
Summary from Perception Mapping
Business Strategy
Market Penetration with New Product
Easy Finance Option
Target New Customer Segment
Business Strategy
Target New
Customer
Segment
Business Strategy
Targeting Segment –Middle Income family,
– Age of 20~ 35 & Family Size of 3 ~4.
Targeting Market – Tier 2 & Tier 3 Cities
Targeting Product – Air Cooler Market
Market
Penetration
with New
Product
Targeting Existing Market by Introducing New Product
Repositioning of brands from Premium to Value for Money
Establishing the Product as all Season Product
Easy
Finance
Option
Easy Emi Options to target Pre Urban Consumers
Communication of Financial Options through Ads
Tie up with Leading Financial Institutions
Positioning
Home Appliance ^ HELPING CONSUMERS BUY THE APPLIANCE BASED ON NEED, FUNCTION AND STYLE
Hush…!!
Baby is Dreaming Sleep Easy, Dream Big…
Introducing Pure Air
Conditioners at your Budget
Energy
Efficient Eco
Friendly
Anti
Bacterial
User
friendly
3D
Air flow
Category Membership
Physiological Positioning
POD - Attitude
Pop- Category