Consumer Segmentation
It is impossible for a brand to think of a positioning strategy without at the same time considering the segment for which it wants to offer the benefit and whether that benefit is being offered by any other brand in the market..
This is so because all the aspects related to the positioning of the product such as the pricing, advertising and placement will be done keeping in mind the end consumer.
ACs are basically classified as the whitegoods which have a penetration as low as 2 % in a country like India. This is so because India is a developing country where majority of the population is lower middle class.
AC is targeted at the middle-middle class and upper classes because of its high purchase price and also high operating cost. According to the statistics given by Business World the middle income level group share
is going to increase by 2005 expanding the AC market. Already there are players such as National, Hitachi that appeal to the middle income group because of their pricing which ranges from 15,000 to 20,000 .
There are players which target the niche market such as LG, Samsung , Carrier and Hitachi with an average price of about 30,000.
Then there are players who are between the two markets such as Voltas, Godrej. In order to expand their markets already brands like LG, Carrier , Hitachi have started offering various finance options to their consumers.