Indian Refrigerator Market India\'s Refrigerator market estimated at Rs. 2750 Cr
ID: 435463 • Letter: I
Question
Indian Refrigerator Market India's Refrigerator market estimated at Rs. 2750 Cr. is catered mainly by 10 brands. The annual capacity is estimated at around 4.15 million units is running head of demand of 1.5 million. As there is a demand and a surplus supply, all the manufacturers are trying out for new strategies in the market. Times have changed and also the buying behaviour of the customer. Earlier it was cash and carry system. Now dealers play an important role in selling; now the systems is exchange for old "bring your old refrigerator and take a new one with many gifts". A new company by name Electrolux has entered the market which has acquired Allwyn, Kelvinator and Voltas brand. Researchers have revealed that urban and city sales are declining and hence all manufacturers are trying to concentrate on rural markets. Electrolux strategy is customization of market, with special attention to the Northern and Southern India markets, while Godrej the main player thinks that dealer network in rural market for sales and service will be beneficialExplanation / Answer
1. Indian geography has vast diversity in terms of climate as well. If the company Electrolux is focussing on customization and is targetting mainly northern and southern parts of India then obviously geography can be used as basis for segmentation.
Northern parts of India have distinct features as compared to southern parts. Oone important feature is climatic condition. The cimate of Southern part is much hotter than northern which influencethe consumption pattern of refrigerator. In southern part refrigerators is in used at full function and capacity through out the year unlike northern region. For example in winters the northern region people find it very difficult when the freezer of their refrigerator get jammed with unwanted ice blocking. Similarly types of food and edible they refrigerate also differ across the two region which require different cooliing system.
Hence segmenting geographically can be done.
2) Marketing Mix for rural market -
Product Mix : The refirgerator of rural areas should be customized according to the need and the environemnt. Generally there is electricity shortage in Indian rural areas and the voltage is not enough good to support the working of refrigerator.Hence these factors should be kept in mind while designing refrigerator for rural market. Stabilizer can be attahaed with the refrigerator and the cooling instruments should be supportinig long cooling without supply of electricity for long hours. Size should be small and convenient.
Price Mix : When pay cash and take system is used then the price should not be marginalized much. There should be minium margin at first to peneterate the market. Skimming is not possible under rural market of India.
Place Mix: Distrbution should be handle with utmost care. There should be strong distribution netwrok with distributors and wholeseller to which strong supply chain management strategy need to be acquired. Generally the rural Indian trust their local distributors than any firm's actual store point sales men hence opening up various stores would not make much benefit but connecting with local distributors wil payoff much.
Promotion: Mass media tools like telecastong advertismenets on local rural channels on TV and Radio will be helpful. Additionally positive word of mouth would play significant role in promotion in rural market.