1. Introduction 2. Company Overview 3. Performance of Industry 4. Demand and Supply 5. Competitors of Koryo 6. Market Share 7. Price Range and Strategy 8. Understanding Consumer Need 9. Product Line / Market Overview 10. SWOT Analysis 11. Demand for peer brands 12. Nature of consumer decision 13. Key consumer characteristics 14. Potential size of the market 15. Segmentation 16. Targeting 17. Positioning 18. Sales Forecast 19. Product Portfolio 20. Product Mix 21. Pricing Objective 22. PLC Stage 23. Pricing Strategies 24. Brand Positioning 25. Key Product Decision 26. Branding Strategies 27. Future Plans 28. Distribution Channel 29. Omni Channel Strategy 30. Promotion Mix and Strategy 31. ATL & BTL 32. Future Plans 33. Ethical and Social Issues 34. Costing of Portable AC (New Product) 35. Summary of Plan 36. Assessment of Current Market 37. Functional Plan 38. Marketing Objective 39. Marketing Strategy 40. Marketing Budget

1. Being the In-house Taiwanian brand of Big
Bazaar. At the end reader will get to know why
Koryo is so economical. Koryo is always been an
experimental brand of Big Bazaar since 2006 and
generate highestmargin profitfor Koryoand FRL.
Koryo Air Condition
Project Report
A detailed report on Koryo company and its
air condition ranges
By: - Aman Srivastava

2. TABLE OF CONTENTS
CHAPTER TITLE PAGE NO.
1 Introduction 5
Company Overview 5
Performance of Industry 6
Demand and Supply 6
2 Competitors of Koryo 7
3 Market Share 8
4 Price Range and Strategy 9
5 Understanding Consumer Need 9
6 ProductLine / Market Overview 11
7 New ProductDevelopment 11
8 SWOT Analysis 12
9 Demand for peer brands 13
10 Nature of consumer decision 13
11 Key consumer characteristics 14
12 Potential size of the market 15
13 Segmentation 15
14 Targeting 16
15 Positioning 17
16 Sales Forecast 17
17 ProductPortfolio 18
18 ProductMix 18
19 Pricing Objective 18
20 PLC Stage 19
21 Pricing Strategies 19
22 Brand Positioning 20
23 Key ProductDecision 20

3. 24 Branding Strategies 21
25 Future Plans 21
26 Distribution Channel 22
27 Omni Channel Strategy 23
28 Promotion Mix and Strategy 24
29 ATL & BTL 25
30 Future Plans 25
31 Ethical and Social Issues 26
32 Costing of Portable AC (New Product) 27
33 Summary of Plan 28
34 Assessment of Current Market 29
35 Functional Plan 31
36 Marketing Objective 32
37 Marketing Strategy 33
38 Marketing Budget 34

4. INTRODUCTION
Company Overview
The Future Group is an Indian private conglomerate, headquartered in Mumbai. The company is
known for having a significant prominence in Indian retail and fashion sectors, with popular
supermarket chains like Big Bazaar and Food Bazaar, lifestyle stores like Brand Factory, Central etc.
and also have a notable presence in integrated food and FMCG manufacturing sectors. It also
operates in the sectors of General Insurance, Consumer Electronics (Koryo, E-Zone) and lifestyle
fashion. Future Retail (initially Pantaloons Retail India Ltd (PRIL)) and Future Lifestyle Fashions, two
operating companies of Future Group, are among the top retail companies listed in BSE with respect
to assets, and in NSE with respect to market capitalization.
The Founder and the CEO of the Group is Mr. Kishore Biyani.
KORYO Consumer Electronics & Appliances Brand was launched in 2006 by Future Group in India.
It’s a Taiwanian brand.
KORYO, offers range of products like Air Conditioners, Microwave Ovens, Frost free Refrigerators,
Toasters, OTGs, Juicer Mixers, Citrus Juicers, Mixer Grinders, Room Heaters, Electric Cookers, Steam
Irons, Toasters, Electric Kettles, Fans and so on.
Today, the products are easily available in all leading retail outlets like E- Zones of Big Bazaar, Big
Bazaar online site, Koryo site (https://koryoworld.com/) and Amazon across the country.
The Future Group is building its presence in the consumer durables space under its private brand
Koryo, reports a business daily. Koryo gives the revenues of Rs. 150 crore today. The Future group
currently importing Koryo’s product from China. The Future Group may also look at manufacturing
its range of consumer durables in India.

5. Performance of Air Conditioner Industry
There are more than 30 players in AC industry. These companies are from all over the world. Earlier
there was slow growth in the market but as temperature is increasing day by day, demand for AC is
also increasing and hence the performance of this industry is also increasing at the rate of 38% (as
per LG electronics, India). Overall during the fiscal year 2019-2020 the sale has increased by 15%.
Demand and Supply
The demand for AC in urban areas is more than rural areas. As the electrification is increasing in rural
areas also so the demand is also increasing. The demand for window AC which earlier accounted for
80% market share is gradually decreasing and consumer is demanding other types of AC as they are
easier to install. These days the demand for high star rating AC has increased. Hence, the company
is supplying product as per the demand of the consumer.

6. Competitors of Koryo
1. Avoir
2. Blue Star
3. Carrier
4. Daikin India
5. Godrej
6. Haier
7. Haikawa
8. Hitachi
9. Hyundai
10. IFB
11. Impex
12. Intex
13. Koryo
14. LG
15. Livpure
16. Llyod
17. Micromax
18. Midea
19. Mitashi
20. Mitsubishi
21. O General
22. Onida
23. Panasonic
24. Samsung
25. Sansui
26. Sanyo
27. Voltas
28. Whirlpool
29. Electrolux
30. GREE
Hierarchy in the Indian room AC market
Premium • O General • Mitsubishi Electric • Toshiba • Hitachi
Popular • Voltas • Blue Star • LG • Daikin • Whirlpool • Panasonic • Lloyd Electric

7. Economy • Videocon • Electrolux • GREE
List of Companies with Market Share percentage:
Company Market Share %age
Voltas 21.00%
LG 16.00%
Blue Star 12.00%
Daikin India 11.00%
Llyod Electric 11.00%
Hitachi 11.00%
Samsung 7.00%
Carrier Midea 6.00%
Others 5.00%

8. Price Range of Koryo and Other Brands: Air Conditioner
1.5 TON 2 TON
Pricing Strategy
 To penetrate into Market Company kept low prices as compare to others.
 As the Koryo products are sold under the roof of Big Bazaar in India so the price and
profit margins can be reduced as to sell product.
 To compete with the competitors in market pricing are not kept very much low.
Koryo’s Special Features according To Consumer Needs
Koryo provides air conditioner at affordable prices and give some extra features according to the
consumer needs like:-
 Follow me mode: - The temperature censoring the remote controller senses its surrounding
temperature. When you stay close to the remote control, the unit will automatically change
the operation mode and adjust the room temperature accurately to give you more comfort.
 Active carbon filter: - This filter is made of layers of Active Carbon and Electrostatic Fibre.
Active carbon eliminates ammonia (NH3) and deactivates harmful chemical gases. The
electrostatic fibre layer traps small dust particles, smoke and pet fur to prevent allergic
reactions.
Company Price(INR)
LG 46,290
Whirlpool 35,790
Videocon 27,990
Koryo 27,990
Company Price(INR)
LG 51,229
Whirlpool 43,490
Videocon 40,800
Koryo 32,011

9.  Self-Clean Function: - In the self-cleaning mode, the indoor unit operates in cooling
mode with a low fan speed. Eventually, it turns to a fan-only mode and blows away
the wet air. The whole process cleans the indoor unit and prevents the breeding of
bacteria.
 Filter clean indicator: - The light indicator on this AC will glow to indicate when it is
time to clean the filter. This ensures that your AC continues to function right for the
times to come.
 Turbo function: - With this function, the air conditioner maximizes the cooling
capacity and attains the desired temperature in the shortest span of time by
maximising fan speed.

10. Product Line/Market Overview
Market →
Product Line ↓
Commercial Purpose Non - Commercial Purpose
Window × ×
Split × ×
Cassette ×
Portable ×
New Product Development
As our main focus is A.C. so we go for portable air conditioners for our new product
development.

11. SWOT Analysis
Strengths
• Affordableproducts
• Wide productportfolio
• Services
Weakness
• Poor brand image
• Lack of Promotional activity
Opportunities
• Better availability of electricity
• Rising temperatures
• Growing demand in tier 3 cities
Threats
• Stringentenergy efficiency norms
• Global warming and Ozone layer
depletion
• Increased competition from
Chinese brands
• Shortend summer
Why Koryo sell their product only through Big Bazaar?
Big Bazaar want to be the backward integration part and do not have any manufacturing unit so
they tied with Taiwanian Company Koryo for the cheap product.

12. DEMAND FOR PEER BRANDS IN AIR CONDITIONER MARKET
 The Indian AC market has been facing intense pricing pressure due to higher inventory in
the summer season.
 VOLTAS –
top selling 1.5 tonnes air conditioners average selling prices are dropped to 5-13% lower.
 HITACHI –
Its 1.5 tonnes (3 stars) dropped 13% to Rs. 37994 per unit between October 2018 and
September 2019.
 PANASONIC-
Panasonic 1.5 tonne (3 star) prices fell 10 per cent in the same period.
 The changes in prices by Voltas made an underlying demand of consumers for air
conditioners and it has split around 20-25% revenue growth for the AC segment in FY 20.
NATURE OF CONSUMER DECISION MAKING

13. KEY CONSUMER CHARACTERISTICS
 Compare different brands to find the best product (value for money)
 Influenced by other people to they consider
 Capacity: Nowadays customers are well aware of purchasing the correct capacity of air
conditioner for their residential and commercial purpose.
 Star Rating: Customer prefers for a high star rating so to cut down their annual electricity
bill so as to save the money.
 Maintenance and Installation: Customer look for easy and low-cost maintenance and
minimum or free of cost installation.
 Compressor: Compressor is estential part of AC so manufacturer in Koryo gives 5 years
warranty on the compressor with two times compressor gas refill free of cost which is highly
appreciated by the customers.

14. POTENTIAL MARKET SIZE:
 Air Condition market in India is 12 million units a year. In which 4.4 million units are for
residential and 7.6 million units are for commercial purpose.
 Middle class looking for style, convenience and low cost.
 India air conditioner market size is projected to grow at a CAGR of 12.2% during 2018-
2024.
 The industry growing at 14-15 per cent during FY2019-20.
 Around 5 per cent driven by the demand shift towards inverter AC.
SEGMENTATION:
 Demographic:Population ranging from age 1-70 years are segmented in the Air
conditioner market. Further, the consumers who are from 18-50 age are frequent buyers of
Air conditioners
 Type of air conditioner: Window/Split/Centralised air conditioners

15.  Purpose:Residentialor commercial
 Geographic:In total, there are 250+ stores of Big Bazaar in India and where Koryo
electronics brand is present.
In Lucknow, it has a presence in:
1. Saharaganj mall
2. Singapore mall
3. Pheonix mall
4. Eldee Shalimar plaza
5. Riverside mall
 Online presence:Koryo has its presence on an online platform too.
TARGETING:
 Homeowners
 Commercial building owners
 Property management firms
 Hospitals
 Hotels
Their business strategy is to:
TARGET NEW CUSTOMER SEGMENT:
 Targeting Segment- Middle-income family, age of 20-35 & family size of 3-4
 Targeting market- Tier 2 & Tier 3 Cities.
MARKET PENETRATION WITHNEW PRODUCT:
 Targeting existing market by introducing a new product.
 Repositioning of brands from just reasonable to value for money.
 Establishing the product as an all-season product.
EASY FINANCE OPTION:
 Easy Emi option to target Pre Urban customers
 Communication of finance options through Ads

16. POSITIONING:
SALES FORECAST
 Koryo’s overall growth rate is declined by 15.28% year on year 2019.
 Koryo is expecting to increase their sales revenue from INR 150 crores to INR 250
crores.
 Forecasting overall growth rate of 66.66% in the upcoming year.
 Koryo’s forecast for air conditioner is about 14-15%.
 Koryo’s forecast for a 5% increase in sales of air conditions due to new inverter &
smart ac technology.

17. PRODUCT PORTFOLIO
PRODUCT MIX OF KORYO
The existingproductmix of KoryoACcontainsSplitAC,Window AC, andPortable AC.
The Product mix of KoryoAC isnot veryhuge since theyaddeda portable ACandit wouldbe addingmore
innovative varietiesof AConthe basisof theircapacity andratings.
Theyoffers
 1Ton ACwith 3 star rating.
 1.5 Ton ACwith3 & 5 star rating.
 1.2 ton portable ACwith3 star (since it’sa new launched)
 2 Ton ACwith5 Star rating.
Theirproductmix pays attentiontothe uppermiddle andlowermiddle class.
PRICING OBJECTIVES
 Koryois an economical brandthathas adoptedaPenetration&Competitive Pricingpolicyforits
products.Thisguidesthe businessof Koryoinsettingthe costof a product for theirpotential
customers.
 For improvingthe brandpresence andidentity,Koryofollowscompetitive pricingeffectivelyand
efficiently.Inthis,theyselectastrategicprice pointstobesttake advantage of product or service
basedon marketcompetition
Air
Conditi
oner
Refriger
ator
Televis
ion
Washing
Machine
Dish
Washer
Geyser
&
Heater
Electronics

18.  It focusesonhavingmore concentrationonincreasingthe salesrevenuebysome percentageswith
the helpof loweringof prices.
 In the air conditionermarket,Koryohassetitspricesasan affordable andlow price airconditioner
to reach maximumcustomerbase.
 The pricingstrategiesadoptedbyKoryohelpsandguidesthe companytodevelopitsmarketing
strategiesandgive directiontowhole pricingprocess.
PLC STAGE
From year2006 to 2013 the Koryo airconditionremainsinthe introductoryphase butafter2013 company
shifteditsgearandstartedgrowing.Thusafter2013 to till now the Koryo’sair conditionisinthe growth
phase.
Some expertalsosaidthatKoryois still the experimental phasewhichbringoutthe maximumprofitforthe
Big Bazaar or Future Retail Limited.
PRICING STRATEGIES
Quality
Price
High Low
High PremiumPricing SkimmingPricing
Low PenetrationPricing{Koryo} Economical Pricing
Koryo
A.C
KoryoAC
2006 2013

19. From the above table,Koryoprovide airconditionof highqualityonlow price whichisatypical strategyof
penetrationpricing.Onotherhandcompanyalsoprovide average qualityonlow price whichcomesunder
economical pricingstrategy.
Major Pricing Strategiesare:
1. PenetrationPricing:
2. Competitive Pricing
3. Cost BasedPricing
4. OTHERS: Psychologypricing,Promotionalpricing
BRAND POSTIONING
 PositionedasanEconomical Brand- theyhave positionedthemselvesasan economical brandpacked
with features.
 Using the tagline “More to life” there are trying to position themselves as a brand that promotes
comfortable living at affordable prices.
 Value for money products.
KEY PRODUCT DECISION
1. FeaturingKoryoACand otherproductsonlyinBig Bazaar storesinIndia.
2. No promotionof branddone byKoryo Company itself.Exceptunderthe bannerof BigBazaar.
3. Providingfree installationandaftersalesservicesforayearwhichcan be extended.
4. Decisionmayalsoinvolve:
ProductManufacturingProcess
Batch Flowline
Technologytouse
ProductQuality

20. KORYO BRANDING STRATEGIES
Pitching its private label Koryo against establishedMNCs such as Sony, Samsung and LG, the Future Group,
which is already doing backward integration for its foods business through its food parks, may also look at
manufacturing its range of consumer durables in India.
Future group is in the process of having a re-branding exercise for Koryo. There are plans to set up Koryo
cornersacross our retail formatstoshowcase the productswhichare 15-30 per centcheaperthanthe restof
the consumer durable brands.
It follows two branding strategy:
1. Fighting Brand- is a lower price offering launched by Koryo to take on, and ideally take out, specific
competitors that are attempting to under-price them.
2. Private Branding strategy- private brand is product that is exclusively manufacturedfor a retailer
(FUTURE GROUP). The retailer will market the product under its ownbrand name. Prices for private
brands are usually set cheaper than competing name brands. Consumers often think that private
brand are of lower quality, but that perception is changing.
FUTURE PLANS
 Most of the MNCs like Sony,Samsungand LG have alreadyset up theirmanufacturingbase in India.
Though Future group import most of Koryo’s products from China, Koryois seeking strategic tie ups
to source and make products jointly with Indian companies.
 Koryo is being sold through the speciality format of e-Zone and is likely to have more of a digital
presence through ezoneonline.in in the future than standalone brick and mortar stores.
 However, while Koryo is getting revamped with new products and branding, the Future Group’s
consumer electronics retail format eZone is getting restricted to the online platform. Unlike its
competitorsReliance Digital thathasalreadymarched up with1,500 stores eZone will rationaliseits
store count. “Today they get sales of ₹1 crore every month from Future Group online site. They are
also waiting for their Omni channel strategy to take off to reduce cost and increase sales.

21. DISTRIBUTION CHANNEL
Market BREAKUP BY DISTRIBUTION CHANNEL
• Supermarketorhypermarkets- bigbazaar
• Online- amazon,flipkart,paytm&bigbazaar.com
 Productsto be displayedatspecial zoneswithinitsretail formats.
 Koryois beingsoldthroughthe specialityformatof e-Zone andislikelytohave more of a digital
presence throughezoneonline.ininthe future thanstandalonebrickandmortarstores.
 Omni channel strategytotake off to reduce cost and increase sales

22. OMNI CHANNEL STRATEGY
Customers are not passive agents, but intrinsic to the value creation process. Because retailers are the
customer’slinkto the marketplace theyare uniquelyplacedtodevelopvalue co-creationopportunitiesthat
give themselves a strategic advantage.Omni-channel retailingis a means to create an advantage by forging
deepercustomerrelationshipsandpotentiallydevelopingnew markets.Omni-channelretailingcanappeal to
the heterogeneity in customers’ shopping orientations with the aim of providing a seamless cross-channel
experience. However, without a clear strategic purpose, Omni-channel initiatives can easily result in
unbeneficial – or worse, counterproductive – investments. To address this, the purpose of this paper is to
formulate guiding principles to facilitate decision-making with respect to developing an Omni-channel
marketingstrategy.Consequently,twocomplementaryresearchstreamsare presented.The firstpertainsto
strategic considerations regarding Omni-channel retailing; the second pertains to value co-creation as seen
through a service-dominant logic lens. These research streams are then linked to derive five propositions–
along with examples and solutions – to assist retailing decision-makers when developing an Omni-channel
marketing strategy. These propositions underline the importance of viewing channels as value-facilitating
resources that should be aligned with the customer’s decision journey.

23. PROMOTION MIX & STRATEGY
Promotion Mix
• Advertising:Underthe bannerof FRL. KoryoAC’sare advertisedunderthe BigBazaar name as Koryo
itself do not promote in India. Sometime Koryo provides its product under some packages. For
Example:forone lakhrupeescustomerscangeta AC, Refrigerator,Television,WashingMachine and
fewkitchenAppliances.Same canbe donefornew productalso. We cancombine andmake packages
including new product.
• Personal Selling: No personal selling is done,if we are going for new product we will needpersonal
selling so as to inform or to make aware about products to the customers how are willing to buy
portable AC.
• Sales promotion: FRL providingcashback duringfestive session(like SS5D) whichaffectthe salesof
Koryo also.
• Direct Marketing: Before starting of favorable season. FRL text to its royal customers
Promotion Strategy
• Push Strategy: Koryotriesto influence itscustomersthroughpushstrategyandfor the new product
company should go for push strategy from store itself.
• Persuasive:For the newproductsales,store salesofficer shouldgoforpersuasive techniquesoasto
make more awareness about product and its specification.

24. Above the Line & Below the Line
 35 to 45% budgetisallocatedtoabove the line marketingpromotions.Theypromote theirproducts
throughYoutube,newspapers,etc.
 Keepingtheirtargetaudience theirmainfocusispromotingtheirproductsthroughbelow the line
marketingtechniquesi.e. bydistributingpamphlets,in-store promotionsbyputtingupbannersand
postersinBig Bazaar stores,45-50% budgetisallocatedtothis.
 But nowtheyare alsoplanningtotake advantage of variousotherabove the line andbelow the line
promotiontechniquesnamelysocial mediawebsites,affiliate marketing, emailmarketingetc.
Future Plans
• Barter or paidpromotional dealstobe made withinfluencerswhopromote the range of Koryo
productsand create mass impactfor the brand- Many of the promotional deal have tobe done to
recreate a brand image of the companywiththe collaborationof existingandnew influencerwho
are promotingorgoingto promote the range of Koryoproducts.
• To rope in Influencersandkickstartthe eventwithameetforall Influencers-Eventsare goingtobe
organizedforkickstart.
• Koryobelievesinthe tagline “More ToLife”
WOOT isto create campaignthat furtherenhance the visibilitytobrand.
WOOT understandthatthe mottoconveysthe message of a betterqualityof life andemphasizeson
one’spersonal lifeandnotspendingmuchtime ondailychores.
• Market Insight- thoughbrowngoodsholdamajor share of the urbansector,white goodsisa highly
penetratingmarket.
It isset to become the fifthlargestconsumerdurablesmarketinthe worldby2025.
ABOVE THE LINE MARKETING BELOW THE LINE MARETING
Carriedoutthrough Internet. Carriedoutthrough instore promotions.
Choice of mediadependsupontargetaudience,costand
product.
Dependsuponfootfallinstore.
Budgetallocatedis35%-45% Budgetallocatedis45%-55%

25. While otherbrandsstruggle topositionthemselves,aggressivelyinwhite goodsmarket,Koryoplansto
initiate withpositioningitself asa “HouseholdName”
Ethical and Social Issues
 Koryo always adhere to professionalism and ethics and provide services at a nominal cost.
 The ethical and social issues related to its marketing communication includes:
 Truth in advertising:
Koryoholds viewof beingtruthfulandreal while beingexposedtoitscustomerswhetherbe itonline
or offline.Itsethical lawsdoesn’tpermitstobe misleadingoruntruthful tothe customer.The price,
product features and the benefits of the product are demonstrated appropriately along with
evidences.
 Advertising harmful products:
The government rules and policies on several electronic companieslimits the level of advertising
done for a product. In fact, some products advertisementswhich might be dangerous and not safe
for consumersare made to attach a warninglabel tohave a more cautiousapproach while handling
the product.
These restrictions were put in place because of past advertising campaigns designed to mislead
consumers into thinking products known to be dangerous were actually safe or even beneficial to
health.
 Advertising tactics and challenges:
Koryois takingadvantage of portabilityandaffordability.The tacticsand strategiesusedbythemis
concentrating on grabbing attention of the customer quickly. The major revenue of Koryo comes
fromthe BigBazaar e zone where theyare displayedandcustomerafterpurchasingmerchandise of
differentcategoriesmightgetinterestedinbuyingsome affordable anddurable electronicsaswell.
 The pricing of Koryo is the baseline tactic followed by the company for its marketing plan.
 Packaging safely:
The electronicsbeingfragileinnature are keptinsuchamannerthatthe cornersof the productdoes
not touchthe packagingto avoidanydamage.The safe deliveryandtransferof productsfromstore
to customer are taken care of by Koryo.
As the air conditioner boast high performance and high efficiency compressors the safety of each
part of air conditioner should be taken care of.
 Environmental implication:
The e-waste and the hazardous material are harmful to the environment as well as people and to
overcome this, waste management is adopted by Koryo.

26. Costing of New Product (Portable AC)
Sr
No.
Item Traceability Behaviours Element Cost (in INR)
1 Compressor Direct Variable Material 2800/-
2 Fan motor Direct Variable Material 1800/-
3 Condenser Direct Variable Material 1150/-
4 Evaporator Direct Variable Material 1250/-
5 Refrigerent(R410A) Direct Variable Material 400/- per kg
6 Blower Direct Variable Material 350/-
7 Air Filter Direct Variable Material 450/-
8 Thermostat Direct Variable Material 1000/-
9 Exhaust pipe Direct Variable Material 215/- per meter
10 AC Valve Direct Variable Material 130/-
11 PCB Direct Variable Material 500/-
12 Housing Direct Variable Material 2000/-
13 Labour Cost Direct Fixed Labour 142/- per hour
14 OtherFixedExpenses Indirect Fixed Expense 3000/-
Total Cost 15187/-
Profit 13803/-
Selling Price 28990/-
Portable AC 1.2 Tons @ 28990/- Rs.

27. Market Potential
Q = Total Market Potential n = Numberof Buyersforproductunder givenassumption
q = Quantitypurchasedbyaverage buyers p = Price of the unit
Formula: Q = n * q * p
Currentbuyersof KoryoAC inLucknow= 45000
EstimatedbuyersforKoryoPortable AC@ 5% = 45000*2% = 2250
n = 2250, q = 1, p = Rs 28990/-
Q = 2250 * 1 * 28990
Q = 6,52,27,500/- INR
Break- Even Quantity = FixedPrice / (SalesPrice – Variable Cost)
BreakEven Quantity= 3850 units {3850 * 28990 = 11,16,11,500/- Rs}
Summary of Plan
 For the sale of portable AC our group is aiming for FY 2020-21.
 With the same cost with little upgradation in graphics.
 Meeting the break even quantity in first quarter of the FY. And then going for profit making.
 Targeting for 5600 units to be sold in the year, creating approx. 45% of profit.
Profitable units are : 5600 – 3850 = 1750 units
Profitable amount : 5,07,32,500 Rs
 Allotmentof propermarketingbudgettobe done for promotionof the product,product awareness,
additional discounts to be given on important days (like festivals, Sabse Saste 5 din).

28. Assessment of current marketing plan and SWOT Analysis
Air conditioners are an important part of our home interiors. Not only do they help in regulating the
atmosphere around you but also help in cutting out the pollution in the air. Whenbuying an air conditioner
for your home or office apart from the brand name, there are other considerations like capacity, price,
dimensionsandsoonwhichinfluence yourbuyingdecision.Ason30thMarch 2020, there are over19 models
of Koryo Air conditioners that you can opt for as a cooling solution for your home or office. If you are still
unsure about which Air conditioner you should go for, then Koryo is certainly a brand you should be
considering. Apart from the latest features that you would be looking for in your air conditioner, Koryo air
conditionersare availableatdifferentbudgetsstartingfrom25K.Mostof these are splitairconditionerswhich
are considered to be one of the most premium and effective in today's day and age.
Strengths in The SWOT analysis of Koryo
Strengthsare definedaswhat each businessdoesbestinits gamut of operations whichcan give it an upper
hand over its competitors. The following are the strengths of Koryo:
 Futuristicvision:Koryohas a future drivenoutlookinitscore values andphilosophy.Thevalue created
by the business is through anticipating the future needs of the business. The company envisages to
maximize corporate value and also emphasizes on the importance to the environment.
 Strong focus on air conditioningsystems: Koryohas undeterredfocusonthe HVACsystemsand does
not think beyond air conditioners., It is this focus that has helpedin becoming a market leader in the
domain.
 Commitmentto environmentand society: Koryo manufacturesairconditionerswhichare highlyrisky
for the environment primarily because of the emissions it creates. The company tried to apply
technologies that are environmentally friendly and these become the benchmark in the industry.
 High level ofethics:The companyfollowsastrictcode of ethicsandthe guidelinesforlegal compliance
lookat variousaspectslike the safetyof products,faircompetitionandtrading,protectionof IPrights,
the disclosure of information and adherence to labor laws.
 Certifications: Some of their certifications include OHSAS18001 for Quality Safety Management,ISO
14001, ISO 9001, AHRI for Quality and ASME U Stamp.
Weaknesses in The SWOT analysis of Koryo
Weaknessesare usedtorefertoareaswhere the businessorthe brandneedsimprovement.Some of the key
weaknesses of Koryo are:
 Changing demographics of customer: The customers are ever changing and their demand is also
changing continuously. This is creating a huge challenge for consumer durables business.
 Increased cost of raw materials: Koryo sources its raw materials from various parts of the world and
this is increasing the costs of sourcing. The costs of raw materials are highly fluctuating which is
creating pricing challenges.
 High prices: In the consumer segment and household segment, Koryo is a premium player and in
comparison to popular brands like IFB and Voltas the customer perceives Koryo as over priced. This
affects the volumes of the business.
 Poor promotions: In comparison to competitors Koryo is not a very well known name. The company
suffers from poor brand recall and low recognition. This has affected the overall branding of the
business.

29.  Poor presence in other consumer durables segments: Koryo has strong presence in air conditioners
but unlike their competitors who have the strong presence in other domains like smartphones,
refrigerators which gives them higher goodwill in comparison to Koryo.
Opportunities in The SWOT analysis of Koryo
Opportunities refers to those avenues in the environment that surrounds the business on which it can
capitalize to increase its returns. Some of the opportunities include:
 Increasedmarket potential for HVAC segment: The HVACsegmentisexpectedtogrow at a rate of 22
% to CAGR to get to an annual potential of USD 174 billion by the year 2022. Cooling equipment will
own the major share in the HVAC market.
 Growth in APAC markets: The HVAC segmentispredictedtogrow the sharpestin the APACmarkets.
The steepest growth will be in countries like China and Japan. This makes it imperative that Koryo
should look at APAC seriously.
 IOT: In the consumerdurablesmarket,the nextbig thingis goingto be Intenetof Things.In IOT there
will be a surge in demand for self-controlled gadgets that are smart.
Threats in The SWOT analysis of Koryo
Threats are those factors in the environmentwhichcan be detrimental tothe growthof the business.Some
of the threats include:
 Competition: The main competitors of Koryo are Hitachi, LG, Samsung, Whirlpool, IFB, Carrier,
and Panasonic etc.
 Unpredictable trends:Mostcountriesacrossthe worldare inastate of financialturbulence.Inaddition
tothis,there isfluctuationinmaterialcostsandthe currencyandexchange rate fluctuationsthe market
is highly dynamic.

30. Functional / Action Plan of Koryo
Production Plan
 For the year: As per now we are targeting 5600 units to be sold in the year which is creating a
approximate profit of 45%.
 For the sale of potable ac our group is aiming for the financial year 2020-21.
 Yearly: 5600 units to be produced and the company will reach break even at 3850 units and the
remaining profitable units will be 1750 units which is good because the number of competitorsare
less.
Distribution Plan
 As first we are going to launch our product in the developed or metro cities because the income of
the people in those cities are higher and the demand of the product will be more.
 Our service network will be same and the product will be sold through Big Bazaar.
 You can book the new portable ac from amazon.in , koryoworld.com or through Big Bazaar future
group.
 Omni channel strategy to take off to reduce cost and increase sales.

31. Promotion Plan
 Social media platform will be used for advertisements.
 First three services will be free for the customers.
 Their last campaign was regarding portable ac https://youtu.be/2WcWJs9K5V4.
 Providing the information of the product through newspaper, television, magzines and you tube.
Marketing Objectives Of Koryo
Overview of marketing objectives
• Businesssetsgoalswhile promotingtheirproductsor servicesto theirpotential consumersthatis needed
to be achieved within a time frame.
• According to Retail strategy, future group president, Koryo itself provides them with revenue of Rs. 150
crore.
• Increasing sales revenue:
Marketingobjectivesare alignedwiththecompany’sgoalsandobjectives,andthereafteraplanforincreasing
their sales to Rs. 250 crore is been made.
• Point of reputation:
koryo air conditioners are sold at well reputed stores in India that is BIG BAZAAR by future group, so the
companywantsto distinguishtheirproductfromthe local competitorswhoare already sellinginthe market.
Koryo wants to create a sense of class in their product.
• Targeting customer segment:
Mainlymillennials,astheyare constantlyonthe move.
Middle andlowermiddle class; andlowerclass.
• Establishing the company name:
koryohas alreadysetupinthe marketwherethe demandfortheirproductispre-established.Thismeansthat
theyare aware of the factthatpeople come tothatstore whenevertheyare willingtopurchase andare ready
for a gooddeal.Koryo understandsthe customersegmentandhave establisheditself where ahuge amount
of customers come to purchase items in large numbers.
• Gets a push from “BIG BAZAAR” brand name:
Koryois presentinBIG BAZAARstoresandtheygeta pushin termsof marketingtheirproductsas BigBazaar
also promotes koryo.
• Bargaining power of customers:

32. Koryoexperiencesthattheircustomershave low bargainingpowerwhichgivesthemadvantage.Itmeansthat
theyhave lesscontrol toput pressure onkoryoas theyalreadyhave verylow prices set for their customers.
• Tie-ups and new technologies:
Koryo is looking forward to have tie-ups with several other Indian companies since they want to bring new
technologiesintheirproducts.Thiswill helpkoryo grow andbe sustainable inthisdynamicenvironment,and
also be known to several new potential customers.
• Affordable pricing:
Koryo looks forward to make best technological products with affordable prices. They want to differentiate
themselvesfromrestof the competitorslikeLG,Voltas,Panasonicetc.onpricingasall these competitorshave
relativelyhighpricing.Theyare alsoplanningto setup theircorners across retail to showcase theirproducts
would be comparatively 15-30% cheaper than other brands.
• Omni-channel strategy:
koryo is seeking to have their omni-channel to run soon as their online site gives them around Rs. 1 crore
sales.Asthis wouldreduce the cost and wouldeventuallyincrease sales,koryoiswaitingforthisstrategyto
be implemented successfully in a short period of time.
Marketing Strategy
Target market
 People whokeepshiftingfromone place toanother.Asitis a portable producttheyneednotbuyit
everytime theyshifttoa newplace.
 Mainlymillennials,astheyare constantlyonthe move.
 Middle andlowermiddle class; andlowerclass.
Positioning
 A productthat promotesconvenience andcomes withvariousotherbenefitsata reasonable cost.
 Value formoneyproposition.
Marketing Mix
Product- We will be launchingaportable airconditioner.
Price- Our product will come intwovariants;1 and 1.2 tonns.Theywill be pricedatRs 25,990 and 28,990
respectively.
Place- It will be soldinthe Bigbazaar stores.People canalsobuy themonline onAmazon.in, Flipkart.com,
BigBazaar.comand Koryoworld.com.
Promotion- We will use bothabove andbelow the line techniquesforpromotingourproduct.We will
promote ourproduct online onmediasharingsites,throughnewspapersandbydistributingpamphlets.

33. Marketing Budget
Total Cost of one AC (RS) 15187
For the sale of the ACwe use Big Bazaar and e-commerce platform.Soforthiswe use differenttypesof
advertingsuchas social mediaadvertisingfollowedbyeventsandpaidadvertisement.
The calculationis done onthe basisof per unit.
Particulars Cost in % Amount
Product marketing 10.00% 1518.7
Paid Advertisement(Above the
Line) 7.00% 1063.09
PublicRelation 4.50% 683.415
Branding & Creative 8.00% 1214.96
Events 1.50% 227.805
After Sale Services 3.00% 455.61
Total 34.00% 5163.58
Apart fromthisthe keydistributorforourproduct isBig Bazaar whichcharge the accordingto slotgivenby
them.
Cost 15187
Add:- sellingExpenses 5163.58
Total Cost 20350.58
SellingPrice 28990
Profit 8639.42
Total costfor the ac isincurrednearlyby 15187 whichnotindirectexpensesi.e.sellingexpensesaccording
to our assumptiontoincrease the sale of productor compete withtopplayerwe have toinvestmore onthe
sellingexpense whichisnearly35-34% of cost of AC.Afterthat total cost of our AC is 20350.58 the selling
price of ACis 28990 so the profitincurredof perunitis 8639.42.