2. Market Analysis
• Gaffar market is located in karol bagh close to the hanuman
temple. It was mainly an electronics market which has now
diversified into various other avenues. The gaffar market is
home to the widest collection of electronic items in our
country that too at the most reasonable prices. It is
uncovered unlike malls so it does tend to get quite hot
particularly during the afternoons. It is a very large market
with around 500 shops. The shops range from large shops
selling premium items such as apple iphones
,macbooks,blackberry handsets etc. to small stalls selling
chinese and local goods at extremely low prices.
3. The market has many ATMs in the vicinity allowing for easy
withdrawal of cash. However the market does get congested
during the peak hours and parking is a real problem. Large
shops sell premium goods close the the normal market price
however the smaller shops which occupy a majority of the
market, sell chinese or local goods at very low prices. Most of
these shops are small and congested.
4. Consumer Types And Preferences
Most of the consumers are young mostly in their 20s.
Most of these young consumers come here with their friends
to pass time. Maximum number of consumers belong to the B
and C income groups with very few consumers in the A and D
bracket. The consumer population is largely male dominated.
They are looking for products with decent quality and cheap
prices especially the ones that come from relatively far places
just to get a good deal om their purchase. Most of the
consumers particularly the C and D and some of the B
category are looking for unbranded products with a short or
waranty and cheap price.
5. • However some of the B and almost all of the A category are
looking for branded products with good warranty and
reasonable price. Overall the majority of the consumers
are looking for mediocre quality goods at very cheap prices
and often settle for cheaper goods even at the cost of no
guarantee.
6. Livguard Retail Outlet
Overall I believe that livguard with its good quality
products,growing brand name and long warranty period
should price its goods very reasonably, preferably keeping the
starting price of batteries and chargers at Rs 100, covers and
screen guards starting at about Rs 75. the profit margin per
unit should be kept small as cheaper goods will attract a larger
number of consumers who would prefer to buy our better
quality branded goods with warranty over the poorer quality
unbranded goods being sold by other retailers in the market
without any guarantee. This is possible only if the price
between the goods is kept to a minimum.
7. Also I feel we should have a large outlet with a big hoarding or
banner at the front and 2 roadside stalls right in front of the
main shop. This is because most of the consumers seem to be
psychologically attracted towards such large shops and tend
to pay a higher price in such shops as they seem to trust
these shops more than the road sides stalls even if the goods
are more or less similar. The two front stalls tend to attract
more customers as they can see our products in open display
and the salesman can interact with all the consumers walking
by. The outlet should also be air conditioned as this would
provide the consumers with a sense of relief from the heat
outside particularly during the afternoons which might get
them into a good mood and encourage them buy something
they don’t need or a more expensive product than they would
otherwise.
8. Also the air conditioning might attract consumers who do not
wish to purchase anything into our outlet and once again may
promote them to purchase a product they might not have
otherwise. Livguard+ on the other hand should price its
products reasonably high as most the customers belong to the
A income group carrying expensive phones such as
blackberrys, samsungs, iphones etc. Hence if they are willing
to spend over Rs20,000 some even over Rs40,000 then they
should have no problem spending a little extra on accessories
for their phones as well particularly if they are of very good
quality and have a good warranty period. For example Belkin
phones cases cost as much as Rs 1000.
9. And many designer covers reach almost Rs 3000. The
livguard+ products should have a good packaging and in the
case of ear phones and phone covers the consumers should
be allowed to try them before their purchase.
10. Market Ratios And Patterns
A majority of the stores in the market and almost all the
roadside stalls sell chinese or second hand goods which forms
a part of the grey market. Infact most of the goods sold in the
gaffar market belong to the grey market as they are smuggled
into the country without paying the required duties and hence
can be sold at a much lower price while still maintaining a
good profit margin. China having the largest population in the
world provides the unique combination of easy availability of
good quality raw materials, excellent infrastructure as well as
skilled labour at very low wages. No other country in the
world can provide this unique blend of excellence in all three
departments
11. Making it next to impossible to compete with these chinese
goods at least as far as pricing goes. Batteries, hand sets, blue
tooth devices, phone covers, screen guards all made in china
are smuggled over to India and dominate this market.
Consumers much rather purchase these cheaper chinese
goods even though they often end up damaging their
handsets. This is mainly due to lack of consumer awareness as
well as the general indian perception of always giving
preference to cheaper goods regardless of quality particularly
among the lower income groups. This market is perfect for
people who want no bills, no guarantees and buy these
products in black with direct payment in cash at lower prices.
12. This market is also perfect for people looking to stay with the
times often selling electronic items before they arrive in india
and sometimes even before they are launched in europe.
These goods are in fact sold at prices higher than even their
market price in black. Gaffar market also provides facilities to
crack phones bought from other countries again at cheaper
prices without having to pay any duties and makes it possible
to operate these devices in india. Jailbreak for the iphone is a
perfect example of this kind of facility.
