Abc case study

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ABC Case Study

ABC Case Study

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  • 1. Ranjeet Kumar Singh
  • 2. Company Position  Market leader in refrigerator field  Sells in 3 sizes to suit the needs of households.  Profitable over the last few years.  Owns service and sales depots in 12 cities.  Very good reputation for service.  Added deep freezers to its product line.  Sits on huge cash reserves.
  • 3. Market scenario  Can competitively price the AC brand.  ABC has competition from the following players:  Voltas, Arco, Fedders Lloyd, Friz Air, Kelvinator.  Friz Air is the market leader in this segment.  Attribute wise Durability played major role in buying any AC followed by Reliability and Price.  After sales service and Guarantee are major promotional factors in selling any AC.
  • 4. Analysis of Buyer Behavior  Initiator -- Head of the family or the wife.   Influencer -- Atmospheric condition followed by financial position. Consumer remembered the ad the most when it was published many times or in many places.  Almost half of the customers(48%) did not see an ad before buying.  Predominant source of information -- Users, Peers & Dealers.  Attributes seen by the consumer -- Reliability, Service & Capacity.  Top promotional factors -- After Sales Service & Guarantee Period.  Dissatisfaction Factor-- Frequent Breakdowns and therefore places a premium on reliability (durability) as an attribute.
  • 5. Marketing Strategy Formulation      ABC--Excellent Service Record, Presence in all major cities. It can leverage those dealers and service depots to disseminate information for its ACs. Marketing through business newspapers, magazines and pamphlets to establish brand recall. The coverage through these media was however able to cover only about half (52%) of the target audience hence other media e.g. television should also be tried. This could give the company an advantage in terms of reach. Appeal should be to the head of the family or housewife who comprise 80% of the target audience. Company should chose the dealers who have greater sales in the area. Reliability of the product, after sales service should be emphasized prominently by the dealer
  • 6. Market Segmentation  The market segmentation will be done based on the following differentiating characteristics:  Consumer’s disposable income.  Consumer’s profession.  Social Strata.  Nature of residence.  Buyer Behavior characteristics used for Segmenting:  The volume of products bought by buyers from different income groups.  The volume of products bought buyers from different professions.  Time taken for purchase by different groups.  Environmental stimuli.
  • 7. Thank you