Global Citizen Leadership- Live Project on KORYO Brand Working on this project to find the management problems and how to increase the footfall of first time customers at the outlets selling KORYO Brand Products.

1. Global Citizen Leaders
Team - DHRUVA
Team Members
•Akshay Gharat
•Abhishri Patne
•Abhilash Gurjar
•Jella Rishikesh
•Santosh Yadav
•Omkar Mamidwar
•Snehal Nemane
•Abhishek Diyewar
•Abhinav Krishna
•Jaya Mahajan 1
Mentored by:
•Dr. Shraddha Purandare
•Mr. Naresh Warrier

2. What is in store
for us......
 Future Group
 Consumer durable industry: an overview
 Industry overview/trends
 Company overview: KORYO
 Organization “Pain” statement
 Management problem
 BCG Matrix
 Primary and secondary research
 Our findings
 Research Problems
 Investigative questions
 Research Questions and hypotheses
 Perceptual mapping
2

3. Future Group
 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
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.
3

4. 4

5. Team Dhruva
 D- Dedicated
 H- Humble
 R- Reliable
 U- Unique
 V- Versatile
 A- Achievers
Values
 Commitment
 Innovation
 Consistency
 Efficiency
 Passion
 Co ordination 5

6. Consumer durables industry: an
overview
6

7. What are consumer durables?
 Consumer durables refer to those consumer goods that do not quickly
wear out and yield utility over a long period of time. Some of the popular
and common examples of these kinds of items are electronic goods,
kitchen appliances, home furnishings and leisure equipment etc.
Consumer durables can be broadly categorized into the following 3 heads:
 White Goods(Consumer Appliances): White goods mainly include air
conditioners, refrigerators, and washing machines, DVD Players, MP3
players.
 Brown Goods(Consumer Electronics): include kitchen appliances like
chimneys, electric fans, grinders, iron, microwave ovens, mixers and
cooking ranges.
7

8. Consumer Durable Industry Overview
THE CONSUMER DURABLES MARKET IS SPLIT INTO TWO KEY SEGMENTS
Consumer durables
Consumer electronics
(brown goods)
Consumer appliances
(white goods)
Televisions Audio and
video systems
CD and DVD
players
Personal
computers
Laptops
Electronic
accessories
Digital
cameras
Camcorders
Air
conditioners
Refrigerators
Washing
machines
Sewing
machines
Electric fans
Microwave
ovens
Cleaning
equipment
Other
domestic
appliances
8

9. Consumer Durable Market in India
305 338
409
474 474
812
988
0
200
400
600
800
1000
1200
2011 2012 2013 2014 2015 2016 2017
FiguresinINRBillion
Years
9
Source :www.ibef.org

10. Consumer Durables Industry-India
 The consumer durable market was INR 812 billion in FY16,it is
expected that the market will be INR 1340 billion by FY20.
 This implies a growth rate of 14% CAGR. It is expected that India
would be the 5th largest consumer durable market in 2025 from
currently being the 12th largest.
 67% of the revenues in the consumer durable industry are
generated from urban markets and the balance from rural and
semi urban market.
 The rural and semi urban markets are growing at 25% CAGR and it
is expected that they will contribute 50% to the total consumer
durable market in the future.
10
Source :www.moneycontrol.com

11. White Goods Market-India
 The Indian white goods market is estimated to be INR 350-
400 billion by 2020.
 The Indian white good market is currently 9% of the market
in China.
 The white good market is expected to grow at 10-12 % in 2020.
11
Source :www.moneycontrol.com
Washing
machines, 40%
Refrigerators,
28%
ACs, 32%
MARKET SHARE

12. Air Conditioners
 Room AC market is 4.7 Million units in FY17, it has grown at CAGR of 13% since FY05.
 Expected market 7.2 Million units in FY20, growing by 15% CAGR.
 North India contributes 38% of sales, South 30% , West 20% and East 12%.
 70% of sales are in the 1.5 tonne category.
 Split AC contributes 87% of the industry sales in FY’17 with the balance being window AC sales.
 Voltas is leader in room AC market with 22% market share , LG 16% Lloyd electric, Daikin & Hitachi
13% each, Bluestar 12%, Samsung 8% and other 3% in 2017.
12
Source :www.moneycontrol.com
North , 38%
South, 30%
West, 20%
East , 12%
SALES %

13. 13
Voltas
22%
LG
16%
Lloyd Electric
13%
Daikin
13%
Hitachi
13%
Bluestar
12%
Samsung
8%
Other
3%
MARKET SHARE
Market Share Of Air Conditioners

14. Company Price(INR)
LG 46,290
Whirlpool 35,790
Videocon 27,990
Koryo 27,990
1.5 Ton
Company Price(INR)
LG 51,229
Whirlpool 43,490
Videocon 40,800
Koryo 32,011
2 Ton
Price comparison of various
brands: Air Conditioners
14

15. Refrigerators
 Indian refrigerator market is estimated to be 9 Million units, of which 2.2
Million units are in double door segments by 2020.
 Market is estimated to be INR 93 billion in the value terms by 2020.
 Refrigerator market is expected to grow 20% CAGR for the next 4-5 years
and has grown in the range of 12-15% over longer period in the past.
 Urban areas account for 75% share in the refrigerator market.
 LG, Samsung, Whirlpool, Godrej and Haier are the top players in the
refrigerator market.
15
Source :www.moneycontrol.com

16. Company Price(INR)
LG 22,150
Whirlpool 22,400
Godrej 17,999
Koryo 11,111
225 liters
Price comparison of
various brands:
Refrigerators
Company Price(INR)
LG 66,990
Whirlpool 72,999
Godrej 56,499
Koryo 55,011
584 liters
16

17. Washing machines
 Industry size is expected to be 5 Million units by 2022.
 Two types of washing machine-Semi automatic and Fully automatic.
 Semi automatic machines comprise 70% of the washing machine segment.
 Fully automatic machines growing at +20% CAGR and semi automatic in the range
12-15%
 Overall industry to grow in the range of 15-20% in the coming years.
 LG , Samsung ,IFB, Whirlpool, Videocon and Godrej are major washing machine
players in India.
 Majority of Revenues come from North India ,East is the least penetrated market.
 Tier 2 & 3 towns contribute 40% of washing machine sales.
17
Source :www.moneycontrol.com

18. Company Price(INR)
LG 22,900
Whirlpool 34,500
Godrej 28,490
Koryo 14,790
7 kg, Fully Automated
Company Price(INR)
LG 9,999
Whirlpool 10,180
Godrej 11,630
Koryo 7,499
6.5 kg, Semi Automated
Price comparison of various
brands: Washing Machines
18

19. Consumer Electronics –Televisions(TVs)
 India’s electronics market stood at INR 6500 Billion in FY17.
 The consumer electronic market is estimated to be between INR 750-800 Billion by 2020.
 The television market forms the major component of the consumer electronics market ,it is estimated that
the TV market is between INR650-700 Billion by 2020.
 India is currently the third largest TV market in the world.
 It has grown at 12% CAGR over FY09-16 period ,it is expected that the TV industry will grow at 15% CAGR over
the next 3 years and stand at 1000 Billion.
 The Indian TV market is 12 Million units and is growing by 17% in 2017.
 60% of sales in the flat panel segment are in the 32+ inch category.
 Major sales of TV comes from North and West India.
 Samsung, LG and Sony are the market leaders in the TV market with combined market share of 70%.
 Samsung is the leader with 27% followed by LG and Sony which have market shares of 25& and 18%
respectively.
19
Source :www.moneycontrol.com

20. Company Price(INR)
LG 20,600
Onida 15,880
Sony 24,990
Koryo 16,600
32 Inches
Company Price(INR)
LG 41,280
Onida 27,999
Sony 69,900
Koryo 29,990
42 Inches
Price comparison of various
brands: Television sets
20

21. Trends impacting the consumer durable
industry
21

22. Trends/growth drivers
 India is likely to emerge as the world’s largest middle class
consumer market with an aggregated consumer spend of nearly
US$ 13 trillion by 2030, as per a recent report by Deloitte titled
'India matters: Winning in growth markets’.
 With the continuous inflow of disposable income and the
advancement of technology, the need for the varied consumer
durable goods is increasing. This in turn is leading to a strong
competition among the different consumer durable brands
available in the nation as well as the price gap between the same
consumer goods of different companies are narrowing down.
 There is a downward trend in prices
22

23. Trends/growth drivers
 Focus on energy efficient and environment-friendly products.
 Growing luxury market.
 Advent of smart sensors leading to smart products.
 Enhanced consumer awareness about new and innovative
technologies via the Internet.
 Rise of e-commerce as well as brick-and-mortar retail chains with
high market penetration possibility.
 Infrastructural development (with respect to electrification,
broadband connectivity) in non-metro locations. (tier-1, tier-2
cities and rural area)
 Easy and affordable options for consumer finance.
23

24. About KORYO
24

25. About
 KORYO Consumer Electronics & Appliances Brand was launched in 2006
by Future Group.
 It’s a Chinese 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, Big Bazaar, Central, Big Bazaar Direct , Aadhar and Amazon across
the country.
25

26. Organization “Pain” statement
How to increase the footfall of first time customers at the outlets
selling KORYO products ?
But the story ahead is a bit different………
26

27. Management problem
 The Management problems are at two levels:
 At the “Corporate level” : represented through a BCG matrix
 At the “SBU” level
1. How to increase sales of KORYO products?
2. What should KORYO do to become a “significant player” in
the Indian Market with a “sizable” market.
27

28. BCG Matrix for Future Group
28
Market
Growth
Relative Market Share
Nilgiris
1905
Koryo
Future
Generali
Big
Bazaar
High
Low
LowHigh

29. Secondary research/literature review
 Our literature review lead us to three important determinants
of purchasing behaviour:
 The country-of-origin effect (COE), also known as the
made-in image or nationality bias, is a psychological effect
describing how consumers' attitudes, perceptions and
purchasing decisions are influenced by products' country of
origin. Consumers may confer a higher evaluation of product
quality on products produced in developed countries, owing
to the technological advances and competitive nature of the
markets in these countries.
29

30. Secondary research/literature review
 "Store image is the image or impression of a store in the
minds of customers. Good overall impression
of this nature in terms of products available in the store, the
store itself and the experience they expect when shopping
at the store "
 Consumers are affected by the store’s attributes and consider
image associations in order to assess perceived benefits and
attitudes. Store image makes an influence on the level of
perceived product value and recent research has shown that
perceived value is related to willingness to pay a higher price.
30

31. 31
Store image
Perceived
merchandise
value
Customer
characteristics
: gender,
income
Willingness to
pay a price
premium
Source : J Žemgulienė Relative importance of store image & consumer characteristics, 2014

32. Secondary research/literature review
 Literature has found a strong relationship between customer
satisfaction and employee satisfaction with their jobs. In
boundary spanning roles, the role of employees (who are in
direct contact with the customers) is very important and the
quality of this interaction distinguishes the superior
organizations from other organizations.
 Trained and loyal employees make a much greater effort in
providing services to help organizations achieve their goals.
32

33. Primary research
 Primary Research
1. Consumer survey (n=88)
2. Sales executives interviews
3. Interview of Mr. Ganesh Mokashi (Category Manager ,
Future group)
33

34. Investigative questions: store image
 How important are the following factors in deciding the store you plan to
buy from?
1. General layout
2. Store reputation
3. Access by car (roads)
4. Availability of multiple brands
5. Nice place to spend time
6. Cleanliness
7. Quality of stores
8. Availability of toilets
9. Friendly atmosphere
10. Helpfulness of staff
34

35. 35

36. Investigative questions: COE
 Do you consider a brand’s Country of Origin (COE) as important when it comes to
buying a consumer durable?
 Do you believe “Made in China” helps or hurts the Chinese brand?
 How likely are you to buy a TV/REFRIGERATOR/AIRCONDITIONER/MICROWAVE
OVEN in the future?
 How likely are you to buy a Chinese Product in the future?
 Based upon your own knowledge, please rate the Chinese consumer durables industry
1. Price
2. Prestige
3. Service
4. Innovation
5. Trust
6. Safety
7. Reliability
8. Overall value
36

37. Investigative questions: COE
 Which following factors do you think are important to help
Chinese brands negate Country of Origin effects?
1. Competitive price
2. Partnership with a good Indian Brand
3. Reliable quality
4. High innovativeness
5. Effective marketing
6. Communication
37

38. Investigative questions: satisfaction with
responses from employees
 Did the employees at the store attend to you?
 Did the employees/store manager answer your queries?
 Did the KORYO employees have knowledge of KORYO and
competitor products?
38

39. Investigative questions: brand KORYO
Feedback about KORYO from current users.
 Do you think that you did the right thing when you bought this brand?
 Have you found using this brand to be a very satisfying experience?
 Do you think this brand has done a good job of satisfying your needs?
 Do you intend to continue using this brand in the future?
 Are you likely to repurchase this brand in the future?
 Will you encourage friends and relatives to use with this brand?
 Does the Usage of KORYO product X compromise my image?
39

40. General layout
Not
at all
10%
Slightly
20%
Moderatel
y
30%
Very
important
20%
Extremel
y
20%
Store reputation
Not at
all
10%
Slightly
15%
Moderatel
y
20%
Very
important
25%
Extremely
30%
Access by car
Not at all
15%
Slightly
20%
Moderatel
y
15%
Very
important
15%
Extremely
35%
Cleanliness
Not at all
0%
Slightly
0%
Moderatel
y
15%
Very
important
60%
Extremely
25%
Nice place to spend time
Not at all
5%
Slightly
40%
Moderatel
y
15%
Very
important
40%
Extremely
0%
Availability of brands
Not at all
15%
Slightly
10%
Moderate
ly
25%
Very
importan
t
35%
Extremel
y
15%
How important are the following factors in deciding the store you plan to buy from?
The aesthetic
features of the
stores play an
important role to
attract customers
40

41. Quality of stores
Not at all
0%
Slightly
10%
Moderatel
y
40%
Very
important
10%
Extremel
y
40%
Availability of toilets
Not at
all
10%
Slightly
20%
Moderatel
y
10%
Very
important
40%
Extremely
20%
Friendly atmosphere
Not at all
0%
Slightly
10%
Moderatel
y
20%
Very
important
30%
Extremely
40%
Helpfulness of staff
Not at all
0%
Slightly
0%
Moderatel
y
0%
Very
important
50%
Extremely
50%
How important are the following factors in deciding the store you plan to buy from?
The sales staff plays
a pivotal role in
converting prospects
into customers
41

42. Do you believe Made in China helps or hurts the Chinese Brand?
15.00%
10.00%
35.00%
15.00%
25.00%
DEFINITELY SLIGHTLY NEUTRAL SLIGHTLY HELPS DEFINITELY HELPS
20.00%
5.00%
10.00%
30.00% 35.00%
NOT AT ALL SLIGHTLY MODERATELY VERY LIKELY COMPLETELY
How likely are you to buy a TV/Refrigerator/AC/Owen in the future?
The perspective
about Chinese
brands is changing.
42

43. 0.00%
10.00%
50.00%
25.00%
15.00%
NOT AT ALL SLIGHTLY MODERATELY VERY LIKELY COMPLETELY
20.00%
30.00% 30.00%
5.00%
15.00%
NOT AT ALL SLIGHTLY MODERATELY VERY LIKELY COMPLETELY
Do you consider a brands Country of Origin as important when it comes to buying a
consumer durable
How likely are you to buy a Chinese product in the future?
43

44. Price
1
0%
2
0%
3
20%
4
35%
5
45%
Prestige
1
15%
2
20%
3
40%
4
15%
5
10%
Service
1
20%
2
45%
3
15%
4
15%
5
5%
Safety
1
25%
2
30%
3
20%
4
10%
5
15%
Trust
1
20%
2
40%
3
15%
4
15%
5
10%
Innovation
1
0%
2
10% 3
15%
4
35%
5
40%
Based upon your own knowledge please rate the Chinese consumer durables industry
on a scale of 1-5 against the criteria listed below (1 being least important & 5 being
extremely important)
44
Service & Safety
are the biggest
concern for the
customers

45. Competitive price
Not at all
0%
Slightly
15%
Moderatel
y
15%
Very
important
35%
Extremel
y
35%
Partnership with good Indian brand
Not at all
0% Slightly
0%
Moderatel
y
10%
Very
important
30%Extremely
60%
Reliable quality
Not at all
0%
Slightly
5%
Moderatel
y
20%
Very
important
30%
Extremely
45%
Communication
Not at all
0%
Slightly
20%
Moderatel
y
30%
Very
important
35%
Extremely
15%
Marketing
Not at all
0%
Slightly
10% Moderatel
y
20%
Very
important
40%
Extremely
30%
Innovation
Not at all
0%
Slightly
0%
Moderate
ly
0%
Very
importan
t
40%Extremel
y
60%
Which following factors do you think are important to help Chinese brands counter
negative Country of Origin effect? (1 being least important & 5 being extremely
important)
45
Partnership
with a good
Indian brand,
Innovation &
Quality are the
most important
factors

46. Have you ever bought a Koryo product?
Yes
35%
No
65%
46

47. 41.94%
19.35%
9.68%
16.13%
12.90%
COMPLETELY DISAGREE DISAGREE NEUTRAL AGREE COMPLETELY AGREE
51.61%
16.13%
9.68%
12.90%
9.68%
COMPLETELY DISAGREE DISAGREE NEUTRAL AGREE COMPLETELY AGREE
Do you intend to continue using this brand in the future?
Do you think this brand has done a good job of satisfying your needs?
The quality and the
after sales service
has been
considerably poor
47

48. 25.81%
3.23%
22.58%
12.90%
35.48%
COMPLETELY DISAGREE DISAGREE NEUTRAL AGREE COMPLETELY AGREE
45.16%
25.81%
6.45%
9.68%
12.90%
COMPLETELY DISAGREE DISAGREE NEUTRAL AGREE COMPLETELY AGREE
Will you encourage friends and relatives to use with this brand?
Are you likely to repurchase this brand in the future?
The Trust has not been
established in the
minds of the consumers
48

49. Comments/Voice of customer
 Ineffective cooling to a scale of 2 to 3 times lesser than ideal.
(ACs)
 Noisy operation. (Washing machines)
 Unsatisfactory and non reliable. (TVs)
 Poor after sales service. (Overall)
 Worth buying it. (Electric iron)
 Non availability of peripheral devices in the market (TVs)
 Why should I buy if I don’t see anyone using it. (Overall)
49

50. Observation/Findings
 Country of Origin effects: It is not a very significant but it is something
which cannot be ignored
 Employee training: The sales executive need formal training in terms of
both technical & sales aspects
Sales executives were reluctant to attend customers.
They were not “selling” KORYO by highlighting features and benefits of
KORYO versus other brands
No formal training to sales executives.
 Store image: The overall store image and ambience is a very significant
factor.
 Brand KORYO: The perception of KORYO in the minds of consumers is
that of an unreliable and low quality brand.
 The overall aesthetics of the products from KORYO is poor and needs to
be improved 50

51. Research questions
 How should KORYO segment and target the market?
 What positioning strategies can be used by KORYO?
 Would better training and employee loyalty lead to increased
sales?
 Will better after-sales-service lead to higher sales
 How can KORYO negate the COE effects?
51

52. Hypotheses
 Improvement in after sales service will lead to higher sales
 Better aesthetics of the products will attract more
customers and increase first time buyers
 Rationalization of product line will lead to higher
profitability
 Better promotions will lead to awareness and ultimately
higher sales
 Formal training to sales person will lead to higher sales
 If other forms of product quality attributes are highlighted
during the product’s promotion and marketing campaigns,
country-of-origin effect will be negated
52

53. Low Quality
High Quality
High
Price
Low
Price
Perceptual Map
53

54. Questions
54

55. 55