3. The refrigerator market has
been growing at a rate of about
15% per year, while the
consumer durables industry as a
whole has grown at almost 8%.
The size of the refrigerator
market is estimated to be 3.5- 4
million units approximately,
valued at Rs 50 billion.
The domestic penetration rate of
refrigerators is about 9%.
The penetration of refrigerators
is considerably higher in urban
areas, which account for 75% of
the demand, with rural areas
constituting the other 25%.
Status Quo: Indian Refrigerator Industry
4. The refrigerator market which is broadly divided into two categories such as direct cool and frost free, both
segments would continue to be strong for future years however in long run frost free models will occupy the larger market
share.
The most common sizes are 180 litres in direct cool refrigerator and 250 litres in frost free refrigerators. Direct cool segment
models with capacities ranging from 185-225 litres have the highest market share however 165-184 litres are almost equally
preferable by Indian consumers. In frost free segment models with storage capacities ranging from 226 to 270 litres recorded
the largest sales while lesser capacity with less than 225 had modest market share.
The frost free refrigerator market of India is gaining massive popularity and momentum over traditional refrigerator models.
There is a trend for double door refrigerator which starts from 200 litre capacity to maximum 500 litres. The demand for
refrigerator in India is mainly from urban areas
Indian Refrigerator Industry
5. General Trends - Indian Refrigerator Market
Refrigeration appliances is expected to grow by a retail volume CAGR of 11%
and a 12% value CAGR at constant 2015 prices over the forecast period.
The penetration rate of refrigerator in India is still at very low when compared
to other emerging market or developed countries.
Southern region of India leads the refrigerator market in sales volume
followed by Northern, western and eastern region
Source: “India Refrigerator Market Overview“ – By Research and Markets Published May-2016
6. Major growth drivers of the Industry
Rising household income
Improving living standards
Rapid urbanization
Increasing number of nuclear families
Large untapped market
Environmental changes
Source: India Refrigerator Market Overview“ – By Research and Markets Published May-2016
7. Two Categories:
Direct cool and
frost free
Frost free is
more popular.
Urban area
accounts for 75
% Market Share.
Direct cool
refrigerator(180
liters)
Major Features
Energy star
rating
Capacity
Price
Brand
Appearance
& Colour
10. Battle of market leaders: LG vs Samsung
Both LG and Samsung, multinational companies from Korea have managed to
capture a combined 50% market share in the refrigeration industry in India.
LG has 24% volume share
LG has two refrigerator manufacturing units in India.
LG is the overall market leader in terms of mkt share.
Samsung has 23% volume share
Samsung has none and relies on imports to maintain its market share
Samsung holds maximum share in the frost free segment because of its
smart feature refrigerators and different variants.
11. Characteristics & Ratings
Brand 5 Star 4 Star 3 Star 2 Star 1 Star Grand Total
LG 22 33 34 10 0 99
Samsung 22 26 19 0 0 67
Whirlpool 13 6 4 8 0 31
Videocon 4 3 10 0 1 18
Electrolux 4 0 3 0 0 7
Panasonic 3 1 1 0 0 5
Godrej 2 6 3 4 3 18
Haier 2 3 5 10 0 20
Gem 0 8 6 0 0 14
Kelvinator 0 1 2 0 0 3
BPL 0 1 0 0 0 1
Hitachi 0 0 9 6 1 16
Bosch 0 0 2 6 3 11
Siemens 0 0 0 4 2 6
• The demand is also higher in the northern
and western parts of the country than in
the east. The south also has high demand
as the warmer weather of the south
requires a refrigerator running throughout
the year.
• Refrigeration appliances is expected to
grow by a retail volume CAGR of 11% and a
12% value CAGR at constant 2015 prices
over the forecast period.
• The improved economic situation, higher
disposable incomes and longer summers
will be key reasons for growth.
12. LG
USP: Energy Efficient
Whirlpool
USP: 6th Sense
Godrej
USP: Superior Quality & Affordability
Panasonic
USP: Depth & Diversity of Research
Capabilities
Videocon
USP: Technologically advanced products
Samsung
USP: Experience in Electronics
13. Price Range of various brands
• Capacity (In liters) is one of the most important factors in selection of a refrigerator.
• Below, we have compared the price range of the three most selling sizes in India
250-300 lts
300-400 lts
400+ lts
16. Brand Recall Analysis
• This was an open ended question, where we
tried to analyse the brand recall that the
respondents had towards various brands of a
fridge.
• For the graph, it shows that nearly 34% of the
respondents had a recall of LG.
• This was closely followed by Godrej at 22% and
whirlpool also at 22%
17. Brand Recall Analysis (Cont.)
• Here we tried to plot the brand recall at
various age groups of the respondents.
• In the age group of 18-21, there is no brand
recall at all, this is maybe because this age
group has never made a decision to buy a
refrigerator or has little say in the family
decision making process.
• In age 22-25, the bachelor group or the
young married couples, have a sincere recall
of L.G.
• The final group of 26-35 has a recall of LG
and whirlpool
18. Important Decision Making Factors
• When purchasing a fridge, we tried to map
the important factors that the people
consider while purchasing on the basis of
their occupation.
• The business people on an average looked
for high power saving, low price and high
capacity
• The salaried workers looked for high power
saving and low price
• The students did not clearly prioritize any
particular factor over the other. But brand
played an important role for them.
19. Important Decision Making Factors
• We did the same mapping for different age
groups.
• The people belonging to the age group of 18-
21 did not define any particular factor
• 22-25 age group gave importance to price
• The 26-35 age group gave importance to
brand.
20. Redundancy Of Extra Features
• With the refrigerator industry
stalling, companies start
innovating by adding features.
• Respondents rated ice cube maker
as the most important additional
feature that they wanted to see in
their fridge.
• The next most important
additional factor was a smart
refrigerator.
• The least important being freezer
on bottom.
21. Factor Analysis
F1 F2
[Brand] 0.464 0.136
[Power saving ]0.551 0.253
[Capacity (in litre)]0.575 0.525
[Price] 0.402 0.454
[Appearance and colour ]0.489 0.148
[Multi-door] 0.114 -0.289
[Freezer-on bottom]0.390 -0.500
[Smart Refrigerator ]0.328 -0.350
[Freezer-Refrigerator converter ]0.433 -0.260
[Ice-cube maker ]0.401 -0.178
[Inclusion of water purifier ]0.463 -0.501
The scree plot depicts the number of factors = 2
The Factor 1 contains all the items in bold in F1
and the same for F2
22. Factor Analysis
• In factor analysis, the interlinkage between the
different variables is understood.
• For example in factor 1 (F1), price, capacity,
power, brand, appearance are interlined and this
explains almost 18% of the variation in the data.
• When the customer makes a purchasing
decision it considers the following variables
while making the purchasing decision and the
shift in one variable of this factor influences the
shift in the other variable.
25. About Freeza
Analyzing the above factors and perceptual map, we identified that ‘Power
Savings’, ‘Affordability’ and ‘No. of Features’ are the most important factors for
customers while buying a refrigerators.
LG also banks on the USP of Energy Efficiency. So we intend to launch, ‘Freeza’,
going one step ahead and innovating the most advanced technology which can
help save energy.
The target market is the niche, which focuses more on the Power Saving
refrigerators at comparatively low price. The components used in the product
shall be eco-friendly and energy efficient.
27. DEMOGRAPHIC
Age group – 25 to 35
Marital Status – Married with kids
Family Income – 6 Lakhs p.a
Occupation – Salaried or Business
PSYCHOGRAPHIC
Open to try new brands (Early Adopters)
Very organized in his/her finances
Disciplined behavior
BEHAVIORAL
Quality conscious
Regular and potential users
Energy Efficient (Power Saving)
GEOGRAPHIC
Metros , Tier I & Tier II cities
SEGMENTATION
&
TARGETING
28. Positioning
Power
Saving
• Most efficient power saving refrigerator with 5 Star rating that reduces electricity bills by 20%
Eco-
friendly
• Body of the refrigerator made of recycled plastic
• Extremely low emission of CFCs and HFCs that lead to global warming
Price
• Our product will be priced at a slightly lower price that will not be a Smart Refrigerator but will
have all the basic features
As most of our respondents considered power saving to be the most important factor while buying a refrigerator,
we will position our brand in the following way:
Conclusion:
The people in India are very price conscious and they are always attracted towards products that help them save costs.
By positioning our product in the above mentioned way, we will be able to target the vacant space (Black Hole) in the
perceptual map i.e. Low price and basic features.
Editor's Notes
LG
Market Share : 29%
USP: Energy Efficient
Whirlpool
Market Share: 12%
USP: 6th Sense
Godrej
Market Share: 18%
USP:
Panasonic
Market Share: 5%
USP:
Videocon
Market Share:12%
USP:
Samsung
Market Share: 18%
USP: Experience in Electronics