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1. CONSUMER DURABLES
• BY :- PRAVIN D JADHAV
• POOJA MISHRA
• JOSHUA CARLOS
• MANIDHAR REDDY
• SUHEL AHMMED

2. MEANING
• Manufactured items,
• Typically cars or household appliances
• That are expected to have a relatively long useful life after purchase.

3. SEGREGATION
BROWN GOODS
• ALSO KNOWN AS LIGHT
CONSUMER ELECTRONICS
• TELEVISIONS,LAPTOPS,
CAMERAS
WHITE GOODS
• KNOWN AS HEAVY
CONSUMER APPLIANCES
• KITCHEN
APPLIANCES,CLEANING
EQUIPMENTS,FANS ETC.

4. ECONOMIC DOMINANCE
• Valued at $12.5 billion as of 2016
• Grow to $20.6 billion by 2020
• The fifth largest in the world by 2025.

5. GROWTH PROSPECTS
Spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte
titled 'India matters: Winning in growth markets'.
• Compound annual growth rate (CAGR) of 14.8 per cent to US$ 12.5
billion in FY 2015 from US$ 7.3 billion in FY 2012.
• Urban markets holds 65% of total share of revenue .
• In rural markets, from US$ 2.1 billion in FY 2010, the rural market is
expected to grow at a CAGR of 25 per cent to touch US$ 6.4 billion in
FY 2015.

8. PROFITABILITY
According to (CEAMA) in 2016-17 the industry was expecting sales "of
air conditioners(4.10m), refrigerators(11.13m), televisions(16.5m) and
washing machines(5.27m)
Good festive sales this year coupled with factors such as good
monsoon and implementation of the Seventh Pay Commission.
"Progressive government policies gave upward CAGR of 10-12 per
cent.

10. INDUSTRY LIFE CYCLE

11. HHI
• Herfindahl-Hirschman index
• Commonly accepted measure of market concentration.
• It is calculated by squaring the market share of each firm competing
in a market, and then summing the resulting numbers, and can range
from close to zero to 10,000.
• Formula HHI= ∑(Market share)n

12. Example
• Calculate the Herfindahl Index
The beverage industry comprises 5 firms with market shares as follows:
• Co A has 30% market share
Co B has 30% market share
Co C has 20% market share
Co D has 15% market share
Co E has 5% market share.
• Calculate the Herfindahl Index for the beverage industry.
• Answer:
The Herfindahl Index is calculated as follows:
• (0.30)2 + (0.30)2 + (0.20)2 + (0.15)2 + (0.05)2 = 0.245

14. CONCENTRATION RATIO
• The concentration ratio is the measure of the percentage market share
in an industry held by the largest firms within that industry. For
example, suppose 3 firms dominate a specific industry, such as
beverages, holding 80% market share of the beverage industry. The
concentration ratio of the beverage industry would thus be 80%.

15. EXAMPLE
• Concentration ratio
The beverage industry is composed of 5 firms with market shares as
follows:
• Co A has 30% market share
Co B has 30% market share
Co C has 20% market share
Co D has 15% market share
Co E has 5% market share.
• Calculate the concentration ratio for the beverage industry.
• Answer:
The three-firm concentration ratio for the beverage industry is 80% (30% +
30% + 20%)

16. PORTER’S FIVE FORCES MODEL

17. PESTLE ANALYSIS

18. RECOMMEDATIONS
• Provide adequate knowledge regarding product warrantees, namely-
warrantees, guarantees and extended warrantees.
• Trade bodies like CII, Chamber of Commerce to involve in awareness
programs among the members and impress upon them to adapt product
warrantees. Governmental intervention in this area is highly plausible.
• The marketing managers of durable goods should recognize the
behavioural differences of consumers towards promotional programs,
allegedly on account of the peculiarity of their profession; as well as
due to the socio demographic class to which they belong.

19. CONCLUSION
• Although the consumer durables sector does not count among the
core sectors of the economy, it is immensely significant being a near
precise indicator of the nation's economic well-being, especially as a
pointer to the distribution of prosperity among different income
segments.

20. THANK YOU