IFB markrting management Report

N V Jagadeesh Kumar T

15DM016N V Jagadeesh Kumar T

IFB

Washing MachinesMarketing analysis

Introduction IFB (Indian Fine Blanking Industries Limited) Industries Limited is India’s leading home appliances and fine blanks producer. The company was known as Indian Fine Blanks Ltd. It started operations in 1974 in collaboration with HienrichSchmid AG of Switzerland. The company got listed on the BSE in 2000. Today, the company manufactures fine Blank components such as strengtheners, Decoilers and strip loaders as well as other engineering components, and home appliances such as washing machines, dishwashers, microwaves, hobs, Chimneys and other cooking appliances. Its manufacturing plants are located at Kolkata and Gangarampur (West Bengal), Selcete and IIhas (Goa), Bhopal (Madhya Pradesh) and Bangalore. Its registered and corporate office is located at Kolkata.

Scope of the study Learning is the best human activity Marketers want to learn about their company and

its customers and competitors to sustain in market My study is about the IFB which is market leader for Washing Machines it focuses mainly on Washing Machines market(sector analysis),company & customer

analysis, competitive strategies, and external environment factors effecting on IFB

Sector analysisWashing Machines market is the one of the fast growing market under home appliances. Washing Machine market and then goes on to segment the market based on various fronts, including regional markets. Each of these segments is studied in detail on the basis of volume or revenue to present a clear picture of the projected performance of each of these segments.

Products Front loaded Washing Machines Top loaded Washing Machines 100% Clothes Dryers

Company Analysis Vision

To be customers first choice


Mission To be the best in the eyes of our customers, Employees, Business Partners &

Shareholders For Customers – the best product to buy, an innovative product that consistently

outperforms peers and outstanding service that smiles every customer smile. For people – An environment where individuals can constantly learn,

grow and prosper. For business partners – IFB should be the first choice for their products and services. For Investors- The company should be acknowledged as one with the highest

standards of corporate transparency that delivers on promises given to share holders.Over two decades, we have grown in strength to become a word synonymous with

home solutions. Through a constant evolution of the very best washing Machines, 100% Clothes Dryers. We have helped usher in a lifestyle of convenience and freedom. Today, millions of Indian households use IFB products, making us one of the most trusted home appliances brands in the country. Our service network of 650+ franchises and 2,832+ service engineers ensures we deliver exceptional service across the country.

Customer AnalysisIFB is the market leader in front loader washing machine in India and we are putting all

our efforts and hard work to become the first choice when it comes to being an integral part of your household. We always keep customers’ convenience on top priority. Our washing machine and cloth dryer is ready to resolve your problem.

Customer Decision Making ProcessesTraditionally, consumer researchers have approached decision making process from a

rational perspective. This dominant school of thought views customers as being cognitive (i.e., problem-solving) and, to some but a lesser degree, emotional. Such a view is reflected in the stage model of a typical buying process (often called the customer information processing model) depicted in Figure.


Competitor Analysis

LG Corp is South Korea's second largest company that produces electronics, chemicals, and telecommunications products. The Home Appliances division makes products like refrigerators and washing machines. Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market. It also produces Mobile phones, Vacuum cleaners.

Samsung Electronics is the world's largest electronics company with 2009 revenue of $117.4 billion, Samsung Town, Seoul, South Korea. Samsung Electronics has achieved significant market share in recent years.

Whirlpool is a fortune 500 company and a global manufacturer and marketer of major home appliances with it’s headquarter in Benton charter township, Michigan, United States, near Benton harbor. The company has annual sales of approximately $20 billion more than 700000 employees and more than 70 manufacturing and technology research centre around the world.

Major Competitors Whirlpool LG Electrolux Samsung Panasonic Godrej


Problem Recognition

Information Search

Evaluation and Selection of Alternatives

Decision Implementation

Post-purchase Evaluation

Onida Videoco

Strategies

Porter’s Five Force Model:

Threat of New Entrance (Moderate) Most current players are global players New entrants will need to invest in brand, technology, distribution

Power of Suppliers (Low) Indigenous supply base limited – most raw materials are imported

Power of Buyers (High) Multitude of brands across price points – wide variety of choice for customers

Availability of Substitutes (High) Unbranded products and cheaper imports could enter the market


Power of Suppliers

Power of Buyers

Threat ofNew

Entrance

Availabilityof

Substitutes

CompetitiveRivalry

Competitive Rivalry (High)

Number of well established players; several new players entering Good technological capability Many untapped potential markets

Overall, the sector is a dynamic one, with significant growth opportunities.

BCG Matrix:

IFB has high market growth rate as well as high relative market share. Therefore it is a star. Now being a star it leads to large amount of cash consumption and cash generation. It also requires heavy investment to maintain its market share. In the product life cycle it is at the growth stage. Therefore the company has a nice opportunity for growth in Indian market.

Product life cycle:BCG positions throughout the product life cycle


CASH COW

RELATIVE MARKET SHARE

CASH COW DOGS

QUESTION MARKSTAR

HIGH

HIGH

LOW

LOW

MAR

KET

GRO

WTH

RAT

E IFB

Ansoff Matrix:

Market PenetrationMarket penetration is the name given to a growth strategy where the business

focuses on selling existing products into existing marketsIt is been clear from the above definition that market penetration is the strategy

were company try to maintain its share in the existing market with its existing product. Having wide range of product in market IFB is already following this strategy of market penetration

Market DevelopmentMarket development is the name given to a growth strategy where the business

seeks to sell its existing products into new markets. IFB is now almost covered all states with its existing products. As far as rural market is concerned, It cannot capture it with its existing product due to high price.


Question Mark Star Cash Cow Dog

Introduction Growth Maturity Decline

Reve

nue

/ Pro

fit

Time

CASH COW

Existing Products

Existi

ng P

rodu

cts New Products

New

Pro

duct

s

Market Penetration

ProductDevelopmen

t

MarketDevelopmen

t

Diversification

Product DevelopmentProduct development is the name given to growth strategy where a business aims to

intoduce new products into existing markets. Now the company is ready to launch some new products.

DiversificationIt is the name given to the growth strategy where a business market new products in

new markets. The new products which are there in the pipe line can cover the new market also with its unique features and reasonable price

SWOT AnalysisStrength

Brand image in Home Appliances Division Innovative Product Compatible workforce Strong after sales service Healthy financial banking 4 Years 100% Warranty & 10 years spears part support

Weakness Less brand awareness Less number of dealers so eventually less availability of IFB’s products. Less promotional activities

Opportunity Scope for growth in the rural market Scope in semi-automatic washing machine segment Trust by valued and existing customers IFB has opportunities because expense on white goods is increasing day to day by

common people. The trust in company’s product by valued customers

Threats Aggressive and effective promotional market in initiatives used by competitors like TV

ads, hoardings etc. Preference of customers and dealers of other brands like LG, SAMSUNG etc. over IFB

machine etc.


PEST Analysis

Political Factor High import duty Plants in tax-incentive areas Export promotions schemes of the Indian government like EPCG & EOQ status

Economical Factor Increase in per capita income Growing GDP high disposable income Increase in spending power

Socio-cultural Factor Manufacturing eco-friendly product Increasing life style & comfort

Technological Factor Improvement in technology made the electronic product more featured Quality of product has been increased

ConclusionN V Jagadeesh Kumar T

Political FactorsEconomic Factors

Sociocultural FactorsTechnological Factors

IFB needs to create public awareness in the market & Should spend heavily on promotional activities. Need to increase number of dealers at Patna, search for New dealers in this every region. IFB try to come up with special customize shop only for IFB products. Give much concern to exhibition on different locations Dealer’s discounts and schemes should be maintained to satisfy dealers.

References http://www.ifbappliances.com/company-profile.html

http://www.moneyworks4me.com/indianstocks/small-cap/consumer-durables/consumer-durables-domestic-appliances/ifb-industries/company-info

http://www.slideshare.net/nahid786khan/a-summer-internship-report-on-ifb

Thanking You


IFB markrting management Report

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