International Market
OVERVIEW
• The consumer electronics industry manufactures and
distributes everything from telephones, stereo
components, televisions, alarm clocks, and calculators
to digital cameras, video cameras, VCRs, and DVD,
MP3, laptop PC are also now part of the industry.
• In 2005, in the U.S. alone, consumers spent more than
$75 billion on consumer electronics products, 8 percent
more than in 2004.
HOW THE INDUSTRY BREAKS DOWN
• The largest are multinational conglomerates with
more than 100,000 employees.
• The smallest often have only one office with fewer
than 50 employees focused on one product.
• In the middle are manufacturers that offer a range of
products within a certain category, such as speakers
and audio accessories.
• Industry observers usually break down the market by
product category rather than company size.
Source: CEA
• Consumer durables are items that provide a flow of services to a consumer over a period of
time. Examples include new cars, household appliances, audio-visual equipment, furniture
etc. The real level of spending on durables has surged in the last eight years.
SOME OBSERVATIONS
• Among the explanations are:
? Falling prices for many durable products – arising from
rapid advances in production technology and the effects
of globalization which means that we can now import many
of these durables more cheaply from overseas
? Low interest rates which have encouraged people to spend
more on “big ticket items” – there has been a surge in
demand for consumer credit
? Strong consumer confidence and borrowing levels. The
demand for consumer durables is more income elastic than
for non-durables which are usually staple items in people’s
monthly budget.
GLOBAL PLAYERS
Major Players
Top 10 Major Players, by 2005 Revenue
Rank Company Revenue ($M) 1-Year Change (%) Employees
1 General Electric Co. 148,019 –2.2 307,000
2 Siemens AG 90,670 17 461,000
3 Matsushita 81,298 13.0 334,752
4 Samsung Electronics Co., Ltd. 78,250 44.2 123,000
5 Sony Corp. 66,912 –7.2 151,400
6 Microsoft Corp. 39,788 8.0 61,000
7 Royal Philips Electronics NV 35,972 –12.4 231,161
8 Sharp Corp. 23,616 10.5 46,751
9 Sanyo Ltd. 24,174 –1.4 96,023
10 LG Electronics Inc. 23,542* 39.4* 66,614*
*2004 figures.
Sources: Hoover's; WetFeet analysis.
KEY FINDINGS
Key Findings
• Asia-Pacific region is the most lucrative area for the consumer electronics industry, as
most of the markets are still untapped.
• MP3 players continue to drive the audio market worldwide.
• Wi-Fi networking is expected to become a key enabler for the delivery and redistribution
of content in homes, particularly for retail consumer electronics hardware.
• Mobile camera phone market has emerged as the single largest market for image sensors,
surpassing the entire consumer electronics segment, including digital still cameras
worldwide.
• The strongest growth in consumer electronics segment is expected to come from China by
2010, as the demand for consumer electronics is rising with the rapid pace of economic
development and low cost consumer electronics manufacturing.
• On the back of this strong demand, China will become the second largest market for
consumer electronics, after US.
SOME KEY FINDINGS
CONSUMER APPLIANCES & ELECTRONICS
RETAILING IN CHINA
• The world’s fastest growing large economy, and foreign
investors and market
• High Competitive market, margins very tight and, until recently,
the available market was shrinking.
• Presence of Rural rebate scheme for reduced price goods to
rural consumers has made the available market a lot bigger
though, over the past few years.
• Official estimates for the CNY period show sales of household
electric appliances grew by 17.8% over the same period in
2008.
*CNY : Chinese new year2009
URBAN VS RURAL- CHINA
CHINA DEMOGRAPHICS
• 0-14 years: 20.1% (male 142,085,665/female
125,300,391)
• 15-64 years: 71.9% (male 491,513,378/female
465,020,030)
• 65 years and over: 8% (male
50,652,480/female 55,472,661) (2008 est.)
GLOBAL CONSUMER BEHAVIOUR
Changing trends in women
• A Consumer Electronics Association (CEA) study has found that women are
more comfortable with technology than ever before, are heavy users of CE
products, and have a major influence on technology purchases for the
household.
• Female customers are distinct in their beliefs about technology, in what they
desire from consumer electronics, and in the way that they shop for these
products, the study indicated.
• Women are less enamoured of gadgets and technology for its own sake.
• But the CEA study indicated that women are more open to advice, and when
shopping they focus on portability, functionality, reliability and simplicity.
TOP 5 EMERGING NATIONS
• BRAZIL
• CHINA
• INDIA
• MEXICO
• SOUTH AFRICA
HIGHLIGHTS
• The Top 5 Emerging countries contributed $37.6
billion to the global consumer electronics
industry in 2007, with a CAGR of 10.9% between
2003 and 2007
In 2012, the market is forecast to have a value of
$51.2 billion, with a CAGR of 6.4% over the 2007-
2012 period.
China is the leading country among the Top 5
emerging nations, with market revenues of $21.6
billion in 2007.
GLOBAL INDUSTRY POSITION
• Support voluntary, market-oriented programs and
initiatives, including industry-led standards,
which highlight and sustain energy efficiency in
the electronics industry
• Continue to work cooperatively with governments
in the development of energy efficiency initiatives
that complement and support voluntary
approaches and continued innovation, expanded
consumer choice, and enhanced product
functionality
• Oppose government-imposed approaches that
stifle innovation, reduce consumer choice, and
limit product features and services
INDIAN MARKET OVERVIEW
OVERVIEW OF INDIAN MARKET
• Pre liberalization dominated by a few domestic players like Godrej, Allwyn,
Kelvinator, and Voltas
• Post-liberalization many foreign companies have entered into India,
dethroning the Indian players and dominating the market
• Consumer durables sector is one of the fastest growing industries in India
• LG and Samsung, the two Korean companies have been maintaining the
lead in the industry with LG being the leader in almost all the categories
• The rural market is growing faster than the urban markets but penetration
level is very low
• CTV segment is expected to the largest contributing segment to the overall
growth of the industry
• The rising income levels, double-income families and increasing consumer
awareness are the main growth drivers of this industry
INDUSTRY CLASSIFICATION
• The consumer durables industry can be broadly classified as consumer
electronics and consumer appliances
• The consumer appliances category can be further segmented as white
goods and brown goods
CLASSIFICATION OF CITIES AND
TOWNS
The existing size of this sector stands at an
estimated USD 4.5 Billion with organized retailing
being at 5%
Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
RETAIL FORMAT IN CE MARKET
Sourse:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
Demographic Profile of India
Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
DEMOGRAPHICS OF INDIAN MARKET
INCOME GROUPINGS AND OWNERSHIP
(OWNERSHIP PER HOUSEHOLD)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
DEMAND OF CONSUMER DURABLES
(FIGURES IN '000)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
PENETRATION OF CONSUMER DURABLES
(NUMBER OF HOUSEHOLDS OWNING GOODS PER '000 HOUSEHOLDS)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
RURAL DEMAND- CONSUMER DURABLES
(% OF ALL INDIA)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
BUYING BEHAVIOR –CONSUMER
ELECTRONICS
• Price is a significant influence on purchase behavior but is not
always the most important factor.
• Consumer age, brand, type of product, current product
diffusion, and lifecycle stage of a product must be viewed in
concert with price to understand purchase process behavior.
• For example, buyers of certain products, including game
consoles, high-definition DVD players, DVRs, and photo
printers, are more likely to consider product features and
capabilities over price.
• Endorsed by opinion leaders – excellent
reviews in magazines, TV shows, on blogs, by
word of mouth by existing consumers, etc
• High on quality – brand name of apple assures
on quality, especially sound and music clarity
as well as product durability
• Associated with the ‘aspirational group’ for a
consumer – with a trend setting product like
an iPod, it has become a symbol of status and
‘cool’ and hence become a must-have to fit in
with the popular groups
BUYING BEHAVIOR (Contd)
• Lower duties, cheaper technology and strong
competition with low entry barriers ensure
competitive prices
• Increase in brand and product choice
• Value-for-money pricing lead consumers to
upgrade – from corded to cord-less phones,
from conventional CRT to flat-screen or
plasma/LCD TVs, from 15- to 17-inch
computer monitors, from 1- to 3-megapixel
cameras, from monochrome to colour phones,
etc
TRENDS IN TERMS OF TECHNOLOGY AND
PRODUCTS – INDIA
• Huge boom in mobile phone purchases with high
penetration even in rural markets (launch of
value for money, no frills, reliance phones gave an
impetus to rural penetration)
• With internet penetration also increasing along
with growing number of service providers, the
sales of modems, routers and accessories has
gone up.
• Shift from buying predominately during Diwali and
other festive seasons to year round purchasing
• Consumers more aware of brands
• Consumers more conscious of style, looks, technical
specifications
• More research is done on technically advanced
gadgets, but there has also been an increase in
impulse buying with increasing disposable incomes,
competitive prices and wide choice.
CONSUMER BEHAVIOUR TRENDS
KEY PLAYERS
SOME KEY STATISTICS
SWOT ANALYSIS
Strengths
1. Presence of established distribution networks in both urban
and rural areas
2. Presence of well-known brands
3. In recent years, organized sector has increased its share in
the market vis a vis the unorganized sector.
Weaknesses
1. Demand is seasonal and is high during festive season
2. Demand is dependent on good monsoons
3. Poor government spending on infrastructure
4. Low purchasing power of consumers
SWOT ANALYSIS (CONT)..
Opportunities
1. In India, the penetration level of white goods is lower as compared to
other developing countries.
2. Unexploited rural market
3. Rapid urbanization
4. Increase in income levels, i.e. increase in purchasing power of
consumers
5. Easy availability of finance
Threats
1. Higher import duties on raw materials imposed in the Budget 2007-08
2. Cheap imports from Singapore, China and other Asian countries
ENTRY BARRIERS
ENTRY BARRIERS (CONT)
• Restricted FDI entry
• China and Korean competitors
• Cultural Barriers
• Heavy tax duties on exported goods
• Competition through grey market like Alpha
• Lack of information
MISSION & VISION
VISION
• “To offer the most technologically advanced, reliable
and Greener electronic products and related services
of the highest quality to individual and institutional
consumers in the country and make these products
and services available at the most fair and
competitive prices, creating and sustaining the long-
term goodwill of the consuming public.”
MISSION
• “To constantly monitor international
developments in electronic products and
initiate efforts to source them to meet present
and emerging requirements in the market and
to delight and deliver beyond the expectations
of the consumers.”
MISSION OF THE FORMAT
• “To continuously enhance the competency
level of personnel through training and
motivation, to expand the sales and network
to serve a larger segment of consumers and to
render the best after-sales service possible.”
SHORT TERM STRATEGIC OBJECTIVES
• To promote and deliver energy efficient “greener
“ products to consumers and businesses over
time
• To differentiate from the competitors with
superior product quality, service and unmatched
shopping experience
• To Increase the awareness of the store in the
region.
• To Increase the footfalls in the store.
• To satisfy the unmet needs of the customers
LONG TERM OBJECTIVES
• To become a market leader through:
– Increased customer loyalty
– Exceeding customer expectations
– Supreme Vendor relations
• To expand to other potential areas
• To support and sustain the greener concept and
transform the market
• Drive the society towards a more greener
environment which would lead towards the
upliftment and wellbeing of the society
HIERARCHY OF OBJECTIVES
Company Mission/Vision
Corporate objectives
Corporate strategies
Divisional objectives
Divisional strategies
Product/brand objectives
Brand strategies
Program objectives
Tactics
Level I
Level 0
Level III
Level II
Level IV
FINANCIAL MODEL
MARKETING STRATEGY
SEGMENTATION
We have identified the segmentation variables
as:
• Geographic
• Demographic
• Psychographic
• Socioeconomic
CUSTOMER ANALYSIS
• Who the Customers Are:
– Primarily upper middle class and upper class
– Analytical and quantitative in nature
– Well educated
– Special focus on working class, specially
working women
MARKET SEGMENTS
Segment Size Characteristics Distinctive Attribute
Globetrotters 10% Age 45-54; mostly male;
employed in senior positions
Innovators, would prefer to buy
niche products like Laser TV's
Road Warriors 20% Mostly in corporate
management and sales,
property management and
real estate
Would prefer to buy high end
products, tech savvy
Corporate Wanderers 12% Travel less than Globetrotters
or Road Warriors; spend most
time visiting employees within
their own companies
Would prefer to buy high end
laptops and PDA’s
High e-mail users
MARKET SEGMENTS
Segment Size Characteristics Distinctive Attribute
Collaborators 8% Age 25-44
Well educated young professionals, tend to hold
advanced degrees
Team leaders, project managers
Innovators
Frequently change gadgets
Not very mobile but need mobile
products
Corridor Cruisers 15% Similar profile to Collaborators Not as likely to adopt new products as
Collaborators
Hermits 8% Least mobile;
Youngest segment (many under 35)
Seldom work with others
Mostly finance and telemarketing
Users of standard electronic goods
Prefer moderate purchase
Solo Practitioners 16% Like Hermits but older
Diverse collection of technical professionals in
small to medium-size companies
Typically connect to corporate network
when traveling so likely to buy
sophisticated gadgets via exhaustive
demonstration
Small-Site Bosses 11% Run small business Look for value-for-products
TOTAL PRODUCT CONCEPT
Generic
product
Expected
product
Augmented
product
Potential
product
Regular White
and Brown
Goods
New Brands &
Technologies
Latest
Products Laser
TVs &
Handheld PCs
CE spare
parts & add
ons
FIVE AREAS FOR
DIFFERENTIATION
1. Quality
2. Status and Image
3. Branding
4. Convenience and Service
5. Distribution
MARKETING STRATEGY
PRESENCE RELEVANCE
PERFORMANCE BONDING
MARKETING STRATEGY
Phase 1: Presence
A publicity drive would have to be undertaken to
create a buzzword in the markets by having stalls
in exhibitions and fairs, having a press release for
every market they enter into
Phase 2: Relevance
Next phase would be of reasoning our presence
in the market. Our brand proposition and
objectives would be conveyed through the
markets in this phase. Our marketing in this
phase would be through catalogues
MARKETING STRATEGY
Phase 3: Performance
After creating our niche in the market, we therefore, need to create a foothold and
respect in the market, and this can be done only via our financial reports. Our
financial reports should clearly mark us as a growing profitable and trustworthy
company in terms of product and prices.
Phase 4: Bonding
We are a successful brand by now, so our next step would be to create a
rapport/bond with our customers so as to make them feel prized and special. This
could be done by :
? Sending a small token of thanks on special days of their life like birthdays and anniversaries
? Getting a CRM team in place who would go that extra mile to please and win the trust of the
customers.
MARKETING MIX
Product
We would offer best quality differentiated products laced with advanced technologies like Laser
TV’s. Would also offer bundled products
Price
Pricing would depend from product to product, therefore no fixed price range. Price would be
correlated to unique products attributes. At the same time our prices would be competitive so
as to draw walk-ins in the store and have a higher conversion rate
Place
We would have company owned exclusive retail outlets in cities of the country. We would go
preferably for standalone shops where competition levels are low. We want to create our store
as a destination outlet and not any other roadside retailer
Promotion
For the initial years we would spend on advertising and branding activities till the time we have
created a niche market for ourselves. Based on the previous year‘s sales figures we would
contribute a certain % to promotional and marketing activities so as to reach the present year‘s
sales targets
PROMOTION MIX
The promotions would be carried out in the following ways:
?Trade fairs & Exhibitions: Would be best to way
demonstrate and advertise the product
?Advertisements through catalogues
This would be undertaken on a routine basis so as to
create relevance in the minds of the target group
?Billboards & Revolvers
One of the cheapest form of branding. Though the
conversion rate in this case would be debatable but it
would perfectly accomplish our goal of popularising the
brand.
BRANDING
FACTORS CRUCIAL FOR BRANDING
HOW BRANDING IS DONE?
Inside
Outside Around
Leadership
Culture
Processes
Competitors
Industry
Trends
Customer
Relationship
Dynamics
Our Brand
We would be
adopting proprietary
brand development
process
Branding would be
done based on 3
key factors:
? Internal
? External
? Service
TEN GUIDELINES FOR BUILDING BRANDS
1. Brand Identity
– Each brand should have an identity, a personality. It can be modified for
different segments.
2. Value Proposition
– Each brand should have a unique value proposition.
3. Brand Position
– The brand’s position should provide clear guidance to those implementing
a communications program.
4. Execution
– The communications program needs to implement the identity and
position, and it should be durable as well.
5. Consistency Over Time
– Product managers should have a goal of maintaining a consistent identity,
position, and execution over time. Changes should be resisted.
TEN GUIDELINES FOR BUILDING BRANDS (CONT.)
6. Brand System
– The brands in the portfolio should be consistent and synergistic.
7. Brand Leverage
– Extend brands and develop co-branding opportunities only if the brand
identity will be both used and reinforced
8. Tracking
– The brand’s equity should be tracked over time, including awareness,
perceived quality, brand loyalty, and brand associations.
9. Brand Responsibility
– Someone should be in charge of the brand who will create the identity and
positions and coordinate the execution.
10. Invest
– Continue investing in brands even when the financial goals are not being
met.
THE BRANDING EXERCISE
• The main USP behind our branding is the
service quality level & competitive pricing
• Our brand would reflect our mission & vision
along with our core competencies
• Keeping in mind the target group that we are
capturing, the brand would reflect the
element of niche marketing
• We would be adopting active branding
methodology, i.e. providing credibility through
our branding exercise
WORSE VALUE
PERCEIVED AS
EXPLOITATIVE
PREMIUM
PERCEPTION
HIGH VALUE
PERCEIVED – VALUE
ENHANCEMENT
C
o
m
p
e
t
i
t
i
v
e
Q
u
a
l
i
t
y
HIGH
LOW Relative Price
LOW
HIGH
Croma
Our
store
Vijay
Sales
Next
POSTIONING OF OUR BRAND
CATCHMENT ANALYSIS
JUHU TARA ROAD
PROFILE OF JUHU TARA RD
• Accessible by all modes of transport and easily travelled from
Santacruz, Vile Parle & Andheri stations
• The premium section of the society resides here, rather the
showbiz population
• Hugely dominated by higher middle class of the society
• Value for money is negligible, the only things that matter are
ambience, service levels and product quality
• Popular hangout for all classes of people in the form of Juhu beach
• A shopper’s paradise, thereby making it a highly visited locality for
the elites of the social class.
MALAD WEST
PROFILE OF MALAD(W)
• Dominated by SEC A1, A2 & B1
• First generation population
• Metropolitan suburb, consisting of Marathis, Sikhs, Gujaratis & Marwaris
(Rich Legacy Heirs & Spendthrifts), & Punjabis
• Construction hotspot favoured by companies, therefore major
infrastructure developments
• IT Hub of Mumbai, throwing light on the fact that the younger higher
disposable segment of the populations travels and some even reside in
this area
• Home to 7 malls, with InOrbit being touted as the largest mall of India.
• Therefore, perfect to enter and have a hefty pie of the wallet
COLABA
PROFILE OF COLABA
• Rich Indian industrialists and business people prominently reside
• Shoppers paradise again with all the well known brands having a
retail store in this area
• Major tourists destination, who are made for Indian arts and crafts
including jewellery and accessories
• Hippest neighbourhood in Mumbai serving as the major shopping
district for both tourists and locals.
• Hugely dominated by the elite class of the society
• Value for money is negligible, the only things that matter are
ambience, service levels and product quality.
STORE NAME
• We propose to open our stores as
? Our Logo is
For Greener Tomorrow…
THE FUTURE STRATEGY
doc_924396087.ppt
OVERVIEW
• The consumer electronics industry manufactures and
distributes everything from telephones, stereo
components, televisions, alarm clocks, and calculators
to digital cameras, video cameras, VCRs, and DVD,
MP3, laptop PC are also now part of the industry.
• In 2005, in the U.S. alone, consumers spent more than
$75 billion on consumer electronics products, 8 percent
more than in 2004.
HOW THE INDUSTRY BREAKS DOWN
• The largest are multinational conglomerates with
more than 100,000 employees.
• The smallest often have only one office with fewer
than 50 employees focused on one product.
• In the middle are manufacturers that offer a range of
products within a certain category, such as speakers
and audio accessories.
• Industry observers usually break down the market by
product category rather than company size.
Source: CEA
• Consumer durables are items that provide a flow of services to a consumer over a period of
time. Examples include new cars, household appliances, audio-visual equipment, furniture
etc. The real level of spending on durables has surged in the last eight years.
SOME OBSERVATIONS
• Among the explanations are:
? Falling prices for many durable products – arising from
rapid advances in production technology and the effects
of globalization which means that we can now import many
of these durables more cheaply from overseas
? Low interest rates which have encouraged people to spend
more on “big ticket items” – there has been a surge in
demand for consumer credit
? Strong consumer confidence and borrowing levels. The
demand for consumer durables is more income elastic than
for non-durables which are usually staple items in people’s
monthly budget.
GLOBAL PLAYERS
Major Players
Top 10 Major Players, by 2005 Revenue
Rank Company Revenue ($M) 1-Year Change (%) Employees
1 General Electric Co. 148,019 –2.2 307,000
2 Siemens AG 90,670 17 461,000
3 Matsushita 81,298 13.0 334,752
4 Samsung Electronics Co., Ltd. 78,250 44.2 123,000
5 Sony Corp. 66,912 –7.2 151,400
6 Microsoft Corp. 39,788 8.0 61,000
7 Royal Philips Electronics NV 35,972 –12.4 231,161
8 Sharp Corp. 23,616 10.5 46,751
9 Sanyo Ltd. 24,174 –1.4 96,023
10 LG Electronics Inc. 23,542* 39.4* 66,614*
*2004 figures.
Sources: Hoover's; WetFeet analysis.
KEY FINDINGS
Key Findings
• Asia-Pacific region is the most lucrative area for the consumer electronics industry, as
most of the markets are still untapped.
• MP3 players continue to drive the audio market worldwide.
• Wi-Fi networking is expected to become a key enabler for the delivery and redistribution
of content in homes, particularly for retail consumer electronics hardware.
• Mobile camera phone market has emerged as the single largest market for image sensors,
surpassing the entire consumer electronics segment, including digital still cameras
worldwide.
• The strongest growth in consumer electronics segment is expected to come from China by
2010, as the demand for consumer electronics is rising with the rapid pace of economic
development and low cost consumer electronics manufacturing.
• On the back of this strong demand, China will become the second largest market for
consumer electronics, after US.
SOME KEY FINDINGS
CONSUMER APPLIANCES & ELECTRONICS
RETAILING IN CHINA
• The world’s fastest growing large economy, and foreign
investors and market
• High Competitive market, margins very tight and, until recently,
the available market was shrinking.
• Presence of Rural rebate scheme for reduced price goods to
rural consumers has made the available market a lot bigger
though, over the past few years.
• Official estimates for the CNY period show sales of household
electric appliances grew by 17.8% over the same period in
2008.
*CNY : Chinese new year2009
URBAN VS RURAL- CHINA
CHINA DEMOGRAPHICS
• 0-14 years: 20.1% (male 142,085,665/female
125,300,391)
• 15-64 years: 71.9% (male 491,513,378/female
465,020,030)
• 65 years and over: 8% (male
50,652,480/female 55,472,661) (2008 est.)
GLOBAL CONSUMER BEHAVIOUR
Changing trends in women
• A Consumer Electronics Association (CEA) study has found that women are
more comfortable with technology than ever before, are heavy users of CE
products, and have a major influence on technology purchases for the
household.
• Female customers are distinct in their beliefs about technology, in what they
desire from consumer electronics, and in the way that they shop for these
products, the study indicated.
• Women are less enamoured of gadgets and technology for its own sake.
• But the CEA study indicated that women are more open to advice, and when
shopping they focus on portability, functionality, reliability and simplicity.
TOP 5 EMERGING NATIONS
• BRAZIL
• CHINA
• INDIA
• MEXICO
• SOUTH AFRICA
HIGHLIGHTS
• The Top 5 Emerging countries contributed $37.6
billion to the global consumer electronics
industry in 2007, with a CAGR of 10.9% between
2003 and 2007
In 2012, the market is forecast to have a value of
$51.2 billion, with a CAGR of 6.4% over the 2007-
2012 period.
China is the leading country among the Top 5
emerging nations, with market revenues of $21.6
billion in 2007.
GLOBAL INDUSTRY POSITION
• Support voluntary, market-oriented programs and
initiatives, including industry-led standards,
which highlight and sustain energy efficiency in
the electronics industry
• Continue to work cooperatively with governments
in the development of energy efficiency initiatives
that complement and support voluntary
approaches and continued innovation, expanded
consumer choice, and enhanced product
functionality
• Oppose government-imposed approaches that
stifle innovation, reduce consumer choice, and
limit product features and services
INDIAN MARKET OVERVIEW
OVERVIEW OF INDIAN MARKET
• Pre liberalization dominated by a few domestic players like Godrej, Allwyn,
Kelvinator, and Voltas
• Post-liberalization many foreign companies have entered into India,
dethroning the Indian players and dominating the market
• Consumer durables sector is one of the fastest growing industries in India
• LG and Samsung, the two Korean companies have been maintaining the
lead in the industry with LG being the leader in almost all the categories
• The rural market is growing faster than the urban markets but penetration
level is very low
• CTV segment is expected to the largest contributing segment to the overall
growth of the industry
• The rising income levels, double-income families and increasing consumer
awareness are the main growth drivers of this industry
INDUSTRY CLASSIFICATION
• The consumer durables industry can be broadly classified as consumer
electronics and consumer appliances
• The consumer appliances category can be further segmented as white
goods and brown goods
CLASSIFICATION OF CITIES AND
TOWNS
The existing size of this sector stands at an
estimated USD 4.5 Billion with organized retailing
being at 5%
Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
RETAIL FORMAT IN CE MARKET
Sourse:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
Demographic Profile of India
Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
DEMOGRAPHICS OF INDIAN MARKET
INCOME GROUPINGS AND OWNERSHIP
(OWNERSHIP PER HOUSEHOLD)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
DEMAND OF CONSUMER DURABLES
(FIGURES IN '000)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
PENETRATION OF CONSUMER DURABLES
(NUMBER OF HOUSEHOLDS OWNING GOODS PER '000 HOUSEHOLDS)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
RURAL DEMAND- CONSUMER DURABLES
(% OF ALL INDIA)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of Households
BUYING BEHAVIOR –CONSUMER
ELECTRONICS
• Price is a significant influence on purchase behavior but is not
always the most important factor.
• Consumer age, brand, type of product, current product
diffusion, and lifecycle stage of a product must be viewed in
concert with price to understand purchase process behavior.
• For example, buyers of certain products, including game
consoles, high-definition DVD players, DVRs, and photo
printers, are more likely to consider product features and
capabilities over price.
• Endorsed by opinion leaders – excellent
reviews in magazines, TV shows, on blogs, by
word of mouth by existing consumers, etc
• High on quality – brand name of apple assures
on quality, especially sound and music clarity
as well as product durability
• Associated with the ‘aspirational group’ for a
consumer – with a trend setting product like
an iPod, it has become a symbol of status and
‘cool’ and hence become a must-have to fit in
with the popular groups
BUYING BEHAVIOR (Contd)
• Lower duties, cheaper technology and strong
competition with low entry barriers ensure
competitive prices
• Increase in brand and product choice
• Value-for-money pricing lead consumers to
upgrade – from corded to cord-less phones,
from conventional CRT to flat-screen or
plasma/LCD TVs, from 15- to 17-inch
computer monitors, from 1- to 3-megapixel
cameras, from monochrome to colour phones,
etc
TRENDS IN TERMS OF TECHNOLOGY AND
PRODUCTS – INDIA
• Huge boom in mobile phone purchases with high
penetration even in rural markets (launch of
value for money, no frills, reliance phones gave an
impetus to rural penetration)
• With internet penetration also increasing along
with growing number of service providers, the
sales of modems, routers and accessories has
gone up.
• Shift from buying predominately during Diwali and
other festive seasons to year round purchasing
• Consumers more aware of brands
• Consumers more conscious of style, looks, technical
specifications
• More research is done on technically advanced
gadgets, but there has also been an increase in
impulse buying with increasing disposable incomes,
competitive prices and wide choice.
CONSUMER BEHAVIOUR TRENDS
KEY PLAYERS
SOME KEY STATISTICS
SWOT ANALYSIS
Strengths
1. Presence of established distribution networks in both urban
and rural areas
2. Presence of well-known brands
3. In recent years, organized sector has increased its share in
the market vis a vis the unorganized sector.
Weaknesses
1. Demand is seasonal and is high during festive season
2. Demand is dependent on good monsoons
3. Poor government spending on infrastructure
4. Low purchasing power of consumers
SWOT ANALYSIS (CONT)..
Opportunities
1. In India, the penetration level of white goods is lower as compared to
other developing countries.
2. Unexploited rural market
3. Rapid urbanization
4. Increase in income levels, i.e. increase in purchasing power of
consumers
5. Easy availability of finance
Threats
1. Higher import duties on raw materials imposed in the Budget 2007-08
2. Cheap imports from Singapore, China and other Asian countries
ENTRY BARRIERS
ENTRY BARRIERS (CONT)
• Restricted FDI entry
• China and Korean competitors
• Cultural Barriers
• Heavy tax duties on exported goods
• Competition through grey market like Alpha
• Lack of information
MISSION & VISION
VISION
• “To offer the most technologically advanced, reliable
and Greener electronic products and related services
of the highest quality to individual and institutional
consumers in the country and make these products
and services available at the most fair and
competitive prices, creating and sustaining the long-
term goodwill of the consuming public.”
MISSION
• “To constantly monitor international
developments in electronic products and
initiate efforts to source them to meet present
and emerging requirements in the market and
to delight and deliver beyond the expectations
of the consumers.”
MISSION OF THE FORMAT
• “To continuously enhance the competency
level of personnel through training and
motivation, to expand the sales and network
to serve a larger segment of consumers and to
render the best after-sales service possible.”
SHORT TERM STRATEGIC OBJECTIVES
• To promote and deliver energy efficient “greener
“ products to consumers and businesses over
time
• To differentiate from the competitors with
superior product quality, service and unmatched
shopping experience
• To Increase the awareness of the store in the
region.
• To Increase the footfalls in the store.
• To satisfy the unmet needs of the customers
LONG TERM OBJECTIVES
• To become a market leader through:
– Increased customer loyalty
– Exceeding customer expectations
– Supreme Vendor relations
• To expand to other potential areas
• To support and sustain the greener concept and
transform the market
• Drive the society towards a more greener
environment which would lead towards the
upliftment and wellbeing of the society
HIERARCHY OF OBJECTIVES
Company Mission/Vision
Corporate objectives
Corporate strategies
Divisional objectives
Divisional strategies
Product/brand objectives
Brand strategies
Program objectives
Tactics
Level I
Level 0
Level III
Level II
Level IV
FINANCIAL MODEL
MARKETING STRATEGY
SEGMENTATION
We have identified the segmentation variables
as:
• Geographic
• Demographic
• Psychographic
• Socioeconomic
CUSTOMER ANALYSIS
• Who the Customers Are:
– Primarily upper middle class and upper class
– Analytical and quantitative in nature
– Well educated
– Special focus on working class, specially
working women
MARKET SEGMENTS
Segment Size Characteristics Distinctive Attribute
Globetrotters 10% Age 45-54; mostly male;
employed in senior positions
Innovators, would prefer to buy
niche products like Laser TV's
Road Warriors 20% Mostly in corporate
management and sales,
property management and
real estate
Would prefer to buy high end
products, tech savvy
Corporate Wanderers 12% Travel less than Globetrotters
or Road Warriors; spend most
time visiting employees within
their own companies
Would prefer to buy high end
laptops and PDA’s
High e-mail users
MARKET SEGMENTS
Segment Size Characteristics Distinctive Attribute
Collaborators 8% Age 25-44
Well educated young professionals, tend to hold
advanced degrees
Team leaders, project managers
Innovators
Frequently change gadgets
Not very mobile but need mobile
products
Corridor Cruisers 15% Similar profile to Collaborators Not as likely to adopt new products as
Collaborators
Hermits 8% Least mobile;
Youngest segment (many under 35)
Seldom work with others
Mostly finance and telemarketing
Users of standard electronic goods
Prefer moderate purchase
Solo Practitioners 16% Like Hermits but older
Diverse collection of technical professionals in
small to medium-size companies
Typically connect to corporate network
when traveling so likely to buy
sophisticated gadgets via exhaustive
demonstration
Small-Site Bosses 11% Run small business Look for value-for-products
TOTAL PRODUCT CONCEPT
Generic
product
Expected
product
Augmented
product
Potential
product
Regular White
and Brown
Goods
New Brands &
Technologies
Latest
Products Laser
TVs &
Handheld PCs
CE spare
parts & add
ons
FIVE AREAS FOR
DIFFERENTIATION
1. Quality
2. Status and Image
3. Branding
4. Convenience and Service
5. Distribution
MARKETING STRATEGY
PRESENCE RELEVANCE
PERFORMANCE BONDING
MARKETING STRATEGY
Phase 1: Presence
A publicity drive would have to be undertaken to
create a buzzword in the markets by having stalls
in exhibitions and fairs, having a press release for
every market they enter into
Phase 2: Relevance
Next phase would be of reasoning our presence
in the market. Our brand proposition and
objectives would be conveyed through the
markets in this phase. Our marketing in this
phase would be through catalogues
MARKETING STRATEGY
Phase 3: Performance
After creating our niche in the market, we therefore, need to create a foothold and
respect in the market, and this can be done only via our financial reports. Our
financial reports should clearly mark us as a growing profitable and trustworthy
company in terms of product and prices.
Phase 4: Bonding
We are a successful brand by now, so our next step would be to create a
rapport/bond with our customers so as to make them feel prized and special. This
could be done by :
? Sending a small token of thanks on special days of their life like birthdays and anniversaries
? Getting a CRM team in place who would go that extra mile to please and win the trust of the
customers.
MARKETING MIX
Product
We would offer best quality differentiated products laced with advanced technologies like Laser
TV’s. Would also offer bundled products
Price
Pricing would depend from product to product, therefore no fixed price range. Price would be
correlated to unique products attributes. At the same time our prices would be competitive so
as to draw walk-ins in the store and have a higher conversion rate
Place
We would have company owned exclusive retail outlets in cities of the country. We would go
preferably for standalone shops where competition levels are low. We want to create our store
as a destination outlet and not any other roadside retailer
Promotion
For the initial years we would spend on advertising and branding activities till the time we have
created a niche market for ourselves. Based on the previous year‘s sales figures we would
contribute a certain % to promotional and marketing activities so as to reach the present year‘s
sales targets
PROMOTION MIX
The promotions would be carried out in the following ways:
?Trade fairs & Exhibitions: Would be best to way
demonstrate and advertise the product
?Advertisements through catalogues
This would be undertaken on a routine basis so as to
create relevance in the minds of the target group
?Billboards & Revolvers
One of the cheapest form of branding. Though the
conversion rate in this case would be debatable but it
would perfectly accomplish our goal of popularising the
brand.
BRANDING
FACTORS CRUCIAL FOR BRANDING
HOW BRANDING IS DONE?
Inside
Outside Around
Leadership
Culture
Processes
Competitors
Industry
Trends
Customer
Relationship
Dynamics
Our Brand
We would be
adopting proprietary
brand development
process
Branding would be
done based on 3
key factors:
? Internal
? External
? Service
TEN GUIDELINES FOR BUILDING BRANDS
1. Brand Identity
– Each brand should have an identity, a personality. It can be modified for
different segments.
2. Value Proposition
– Each brand should have a unique value proposition.
3. Brand Position
– The brand’s position should provide clear guidance to those implementing
a communications program.
4. Execution
– The communications program needs to implement the identity and
position, and it should be durable as well.
5. Consistency Over Time
– Product managers should have a goal of maintaining a consistent identity,
position, and execution over time. Changes should be resisted.
TEN GUIDELINES FOR BUILDING BRANDS (CONT.)
6. Brand System
– The brands in the portfolio should be consistent and synergistic.
7. Brand Leverage
– Extend brands and develop co-branding opportunities only if the brand
identity will be both used and reinforced
8. Tracking
– The brand’s equity should be tracked over time, including awareness,
perceived quality, brand loyalty, and brand associations.
9. Brand Responsibility
– Someone should be in charge of the brand who will create the identity and
positions and coordinate the execution.
10. Invest
– Continue investing in brands even when the financial goals are not being
met.
THE BRANDING EXERCISE
• The main USP behind our branding is the
service quality level & competitive pricing
• Our brand would reflect our mission & vision
along with our core competencies
• Keeping in mind the target group that we are
capturing, the brand would reflect the
element of niche marketing
• We would be adopting active branding
methodology, i.e. providing credibility through
our branding exercise
WORSE VALUE
PERCEIVED AS
EXPLOITATIVE
PREMIUM
PERCEPTION
HIGH VALUE
PERCEIVED – VALUE
ENHANCEMENT
C
o
m
p
e
t
i
t
i
v
e
Q
u
a
l
i
t
y
HIGH
LOW Relative Price
LOW
HIGH
Croma
Our
store
Vijay
Sales
Next
POSTIONING OF OUR BRAND
CATCHMENT ANALYSIS
JUHU TARA ROAD
PROFILE OF JUHU TARA RD
• Accessible by all modes of transport and easily travelled from
Santacruz, Vile Parle & Andheri stations
• The premium section of the society resides here, rather the
showbiz population
• Hugely dominated by higher middle class of the society
• Value for money is negligible, the only things that matter are
ambience, service levels and product quality
• Popular hangout for all classes of people in the form of Juhu beach
• A shopper’s paradise, thereby making it a highly visited locality for
the elites of the social class.
MALAD WEST
PROFILE OF MALAD(W)
• Dominated by SEC A1, A2 & B1
• First generation population
• Metropolitan suburb, consisting of Marathis, Sikhs, Gujaratis & Marwaris
(Rich Legacy Heirs & Spendthrifts), & Punjabis
• Construction hotspot favoured by companies, therefore major
infrastructure developments
• IT Hub of Mumbai, throwing light on the fact that the younger higher
disposable segment of the populations travels and some even reside in
this area
• Home to 7 malls, with InOrbit being touted as the largest mall of India.
• Therefore, perfect to enter and have a hefty pie of the wallet
COLABA
PROFILE OF COLABA
• Rich Indian industrialists and business people prominently reside
• Shoppers paradise again with all the well known brands having a
retail store in this area
• Major tourists destination, who are made for Indian arts and crafts
including jewellery and accessories
• Hippest neighbourhood in Mumbai serving as the major shopping
district for both tourists and locals.
• Hugely dominated by the elite class of the society
• Value for money is negligible, the only things that matter are
ambience, service levels and product quality.
STORE NAME
• We propose to open our stores as
? Our Logo is
For Greener Tomorrow…
THE FUTURE STRATEGY
doc_924396087.ppt