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A deep dive into the home appliances market in India
Agenda for today’s presentation
 Overview of the Indian Market
 Market Size + Key players by value/volume
 Market Mix – Products, Pricing, Placement
 Current and Future trends
 Brand Overview : Branding in India market for top 5 players
 Introduction to Category Codes
 Current positioning of master brand
 Media mix + Seasonality
 Consumer Overview
 Understanding the Indian homemaker
Scope of Presentation:
“Major Appliances” Market in India
DishwasherDryers
Washing Machines
Cooking Appliances
& Microwaves
Refrigerator
Overview of the Market
Size + Key Players + Market Mix + Trends
1,141
1,316
1,547
1,874
2,299
2,761
3,154
3,590
4,061
4,561
5,087
5,931
6,725
7,756
9,377
11,467
13,404
15,571
17,979
20,540
23,212
25,945
0
5,000
10,000
15,000
20,000
25,000
30,000
0
1,000
2,000
3,000
4,000
5,000
6,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Sales ($ million) Sales ('000s) Column1 Column2
Euromonitor International
Sales of major Appliances in Value and Volume
The Average percentage growth for major appliances
from 2005 to 2011 is 15.6%
Key Player’s Share of Major Appliances
Euromonitor International
11% 11%
10% 10% 9%
10%
11%
12%
12% 12%
17% 17%
16%
17%
18%
15%
16%
19%
19%
21%
26%
24%
23%
25% 25%
0%
5%
10%
15%
20%
25%
30%
2006 2007 2008 2009 2010
Videocon Godrej & Boyce Whirlpool Samsung LG
• South Korean giants
LG and Samsung
have a major
presence with 25%
and 21% market
shares.
• While domestic
players have lost
steam and their
growth has been
sluggish.
Distribution Formats in India
Independent Retailers Branded Retailers
Branded MBO’s & Hypermarts – Electrical Goods
(Croma, Ezone) & Kitchen Specialists (Homestop)
Independent Electrical Goods Retailers and Kitchen
Specialists (regional)
Major Appliances by Distribution Format: % Breakdown 2005-2010
1.9 2.6 3.1 3.6 4.3 4.7
9.5 9.4 10.1 10.5 10.6 10.6
57.2 60.3 56.5 53.8 50.1 49.9
4
5.8 7.8 9.3 11.3 11.6
27.3
21.9 22.3 22.6 23.2 22.7
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010
Electrical goods retailers
independents
Electrical goods retailers
multiples (Chroma, E-Zone)
Kitchen specialists
independents
Kitchen specialists
multiples (Homestop,
Veneta Cucine)
Hypermarkets (Big Bazaar,
Dmart)
% retail volume
Even though the independent retailers have lost their share,
they constitute nearly 75% of the distribution.
Grocery
Retailers
Non-Grocery
Retailers
(Durable
goods
retailers)
Current and Future Trends
Major Appliances
Rising Nuclear Families Driving Growth
“An analysis of recently released census data reveals that the median household size in urban
India is now less than four for the first time in history. In addition, we are seeing a rise in
the number of nuclear families compared with multi-generational
families throughout India”
– The Times of India
Multi-Generational Families Nuclear Families
0
10
20
30
40
50
60
2008 2009 2010
Built-In-Hobs
Fridges
Window Air Conditioner
Fridge Freezers
Semi Automatic Washing
machine
Automatic Washing
machine
Dishwashers
With exposure to
different digital media,
a large number of
consumers are
replacing their old
appliances and
upgrading to products
with better, more
advanced features.
Shortening Replacement Cycle for Major Appliances
Replacement cycles - years
Escalating Demand for Higher Capacity Products
Since such products are long term
investments, especially large
appliances, keeping in mind
changing household needs, more
consumers are choosing to buy
high capacity models.
Hectic lifestyles and the paucity
of home help have prompted
consumers to look for such
appliances to help them with
their daily chores.
Demand for automatic washing machines is growing
faster than for semi-automatic washing machines
30 litre microwaves are increasingly popular.
Growing Need for Energy Efficient Products
Surging electricity prices and
increasing calls to use energy
efficient products by the
government have spurred the
demand for star rated appliances
in the country.
The star rating of a product is a
decisive factor in the purchasing
decision for refrigerators and air
conditioners, which are high-
energy consuming appliances.
New Era of Aesthetically Pleasing Products
Increased disposable income has
encouraged consumers to seek
aesthetically pleasing products.
More confidence to invest in
consumer appliances as lifestyle
products rather than consider
them only as chore simplifiers.
Along with features and
functioning, the looks and design
of a product is having an influence
on the purchasing decision.
In 2009, LG launched fridge freezers with eye-
catching exteriors such as marble, art flowers and
mirror black.
In 2010, Whirlpool of India launched aesthetically
appealing air conditioners.
Market Mix: Products (Refrigerator, Washing Machines & Microwaves)
SIDE BY SIDE
Refrigerators
(Rs 50K- Rs. 1.5 Lakh)
Double Door Refrigerators
(Frost Free)
(Rs. 10-30K)
Single Door Refrigerator
(Rs. 8K- 15K)
Front Load Washing
(Automatic/Semi-Automatic)
(Rs.25K-40K)
Top Load Automatic
(Rs. 17K-22K)
Top Load Semi-Automatic Washing
(Rs. 7K-10K)
Convection
(Rs.11K-15K)
Grill
(Rs.7K-9K)
Solo
(Rs.4K-5K)
Understanding the Product Categories
Product Category : Refrigerators
Info-graphic
of brands
(logos) and
size of share
Market Size
 In 2010, the sales of the refrigeration appliances
was $1642.79 million
Biggest Gainers & losers
 Refrigerator appliances dominated by MNCs.
Why this leadership?
 Wide product portfolio, extensive distribution
network and aggressive above-the-line
marketing
 Capitalizing on trend of higher capacity models
and to target the untapped rural market with
high capacity fridges.
What are the challenger brands and what is their
mantra?
 Samsung has heavily invested in R&D.
 Samsung’s unique selling point lies in Frrrunch’s
vegetable box which the company claims keeps
fruit and vegetables fresh for a longer period.
Product Category: Refrigeration Appliances
Current Market Size & Key Players
9.7 9.4
8.4
8.2 8.2
14.1
15.9
17.2
15.9 16.2
20.3 20.2
18.9 19.2
20.2
14.3
16.1
18.9
19.2
20.2
25
22.5
21.7
24.9 24.8
0
5
10
15
20
25
30
2006 2007 2008 2009 2010
Videocon Godrej and Boyce Whirlpool
Samsung LG
% retail volume
Company Shares of Refrigeration Appliances
2006-2010
 Product
 Demand for technologically advanced and higher capacity refrigerators.
 Energy efficient products.
 Placement
 Indians visit outlets to gain product knowledge in order to make informed
comparisons and choices.
 The majority of purchases occur in independent durable goods retailers.
 Price
 Due to rising commodity prices, the average unit price increases by 2% in
current value terms in 2010
Opportunities for a new brand
 Instead of competing on price, companies can promote a
different unique selling point – health, hygiene and
freshness currently important
Current Market Trends
Product Category: Home Laundry
 Market Size
 The sales of home laundry appliances
was around $839.30 million in 2010.
 Emerging affluent middle class & easy
finance have fuelled the demand
 Expected new entrants
 GE Appliances is venturing into
automatic washing machines.
 Why does LG have leadership?
 LG’s extensive distribution network,
wide product portfolio, frequent new
product launches and aggressive
marketing strategies
 What are the challenger brands and what is
their mantra?
 Samsung has its own design & R&D.
 Competes on price and offering value
for money to its customers.
Product Category: Home Laundry
Current Market Size & Key Players
6.1 6.2 6.4 6.9 6.5
17.1
17.7 17.7
16.7
15
16 15.8
14.1
16.3
17.217.1
18.4
20.4
22.1
23.9
29.1
26.4
25.3 25.5 25.9
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010
Godrej & Boyce Videocon Whirlpool
Samsung LG
Company Shares of Home Laundry Appliances 2006-2010
% retail volume
 Product
 Consumers prefer automatic machines
as they consume less water & electricity
 Low Priced Semi-automatic models are
popular in II & III-tier cities.
 “Green” technology, colourful designer
appliances and high capacity models
 Pricing
 Rise in commodity prices and high
logistics cost has led to price increase
 Placement
 Consumers visit outlets to acquire
product knowledge & compare
 Opportunities for a new brand
 Offering tangible USP’s such as hygienic
cleaning, easy washing, energy and
water efficiency (besides price)
Current market trends
0
500
1000
1500
2000
2500
3000
3500
4000
2005 2006 2007 2008 2009 2010
Semi-Automatic
Washing
Machine
Atomatic
Washing
Machine
Sales of Home Laundry Appliances by Category: Volume 2005-
2010
'000 units
Product Category: Large Cooking Appliances
 Market Size
 Sales of large cooking appliances = $129.01
million in 2010.
 Key market trends –
 Exposure to global living standards and
changing lifestyles has boost the demand
 Domestic companies (Faber Heatkraft
Industries, Kaff Appliances, Sunflame
Enterprises) have major share (90%) due to
strong distribution and product presence.
 Expected new entrants
 IFB and Elica Group to venture into large
cooking appliances
 Why the leader has leadership?
 Faber Heatkraft’s designer range, products and
distribution has made it a leader
 What are the challenger brands and what is
their mantra ?
 Kaff Appliances is strengthening its distribution
network and launching customized products.
Product Category: Large Cooking Appliances
Current Market Size & Key Players
5.3 5.7 5.9 5.8 5.8
14.8 14.7 14.4
15.2 15.2
16.3 16.1 16.2
15.7 15.715.6
16.1 16.4 16.8 16.9
28.1
28.9 29.3
30.1 30.6
0
5
10
15
20
25
30
35
2006 2007 2008 2009 2010
Inalsa Sunflame Glen Appl.
Kaff Appl. Faber HeatKraft
Company Shares of Large Cooking Appliances 2006-2010
% retail volume
 Product
 Changing lifestyles and greater exposure
to global living standards
 Attractive products and desire to
accessorize the kitchen boosted demand.
 Pricing
 High commodity prices & excise duty has
caused increase in avg. unit price.
 Placement.
 Large cooking appliances are distributed
by durable goods retailers. Kitchen
specialists independents have major
share. Nonetheless, hypermarkets have
increased their share.
 Opportunities for a new brand
 As customers have become more
brand conscious, there is an
opportunity for premium brands
Current market trends
0
50
100
150
200
250
300
350
2005 2006 2007 2008 2009 2010
21.8 26.2 31.3 37.2 44.2 53.1
40.8 47.3 54.8 63.1 73.5 86.7
130.5
159.1
193.4
228.2
281.6
339.8
Built-In Hobs
Built-in Large Cooking
Appliances
Free-Standing Cooking
Appliances
'000 units
Sales of Large Cooking Appliances by Category: Volume 2005-2010
Product Category: Microwaves
 Market Size
 Sales of microwave in 2010 was $155.47
million
 Key market trends –
 Low household penetration boosts the
growth rate
 Why the leader has leadership?
 Wide distribution, innovation and a large
product portfolio have helped LG to
maintain its leading position.
 It is also launching customized products
which suits Indian style of cooking.
 What are the challenger brands and what is
their mantra ?
 On the back of new product launches
and aggressive promotions, Samsung
increased its share over the years.
Product Category: Microwaves
Current Market Size & Key Players
Company Shares of Microwaves 2006-2010
% retail volume
10.5
9.5
8.8
8.1 7.5
2.3
3.6
6.4
9.9 10.59.9
10.7 10.4 10.5 10.5
16.5 16.2
17.2
18
20
33.5
32.5 32.4
33.5 33
0
5
10
15
20
25
30
35
40
2006 2007 2008 2009 2010
Kenstar Whirlpool Bajaj Samsung LG
 Product
 Due to hectic lifestyles, time-poor consumers (working couples) are resorting to microwave cooking
 Companies are educating cooking using microwaves
 Rising number of working women has increased the demand for microwaves
 Variety of products and competitive prices have afforded consumers to choose higher capacity
models
 Built-in microwaves will mainly be upper-income consumers
 Pricing
 High commodity prices & excise duty has caused increase in avg. unit price.
 Placement.
 Microwaves are primarily sold through durable goods retailers.
 Department stores and hypermarkets are gaining importance
 Opportunities for New Brand
 In order to increase the use of microwaves for day-to-day cooking in
India, companies are advised to launch more customized options,
providing new Indian recipes to suit local cooking styles and dishes in
the forecast period.
Current market trends
Brand Overview : Communication
(split according to master brand – top 5 brands in India)
Brand Overview:
LG manufactures consumer appliances like
Refrigerator, Washing machine, Dryers,
Dishwashers, Microwave Ovens
Leading Product Category: Refrigerators
Products: Side by Side Refrigerators, Double Door Refrigerator, Single Door
Refrigerator
Market Share: 24.8%
Leading Product Category: Home Laundry
Products: Washer Dryer Combo, Front Load Washing Machine, Top Load Washing
Machine, Semi-Automatic Washing Machine
Market Share: 25.9%
Leading Product Category: Microwave
Market Share: 33%
Brand Overview: Communication Overview
Brand Overview: TVC Analysis
Usage of Popular Television
Actors
Branding Technology
World’s 1st Charcoal Lighting
Heater
Creating Clear Technological
Differentiation
‘Now make Tasty Food Healthy’
Branding Technology which
benefits the consumer
Woo the new age affluent
consumers
Exhibit Aesthetic Design
Unlike other brands, LG advertizes throughout the year
resulting in high brand recall
Brand Overview: Press Ads Analysis
Universalizing ‘Health’ for all Products
Tactical to a very high Degree
(emphasis on promotions,
festivals, energy efficiency, price
range)
India’s
Leader in
Consumer
Appliance
Branding
Technology
which benefits
the consumer
Brand Overview: Communication Analysis
Emotional Benefits
Makes your world healthy & happy
Rational Benefits
Design products with a substantial value
Core Insight
Delivering significant technology which
accommodates consumer’s intuitive needs
Reason to Believe
Branded Technology
‘Silent Washing Machine, Healthy Microwaves,
6 motion DD Washing Machine’
Life’s Good
Brand Overview: Overall Positioning
Micro-Localization + Premium Technology + Aesthetic Designs
(6 Motion DD washing machine, Silent Washing Machine, Healthy Microwave)
Delightfully Smart
Brand Overview:
Samsung manufactures consumer appliances like
Refrigerator, Washing machine, Air Conditioner,
Smart Oven, Microwave Ovens
Challenger Brand: Refrigerators
Products: Side by Side Refrigerators, Double Door Refrigerator, Single Door
Refrigerator
Market Share: 24.8%
Challenger Brand: Home Laundry
Products: Washer Dryer Combo, Front Load Washing Machine, Top Load Washing
Machine, Semi-Automatic Washing Machine
Market Share: 25.9%
Challenger Brand: Microwaves
Products: Convection, Grill, Solo
Market Share: 20%
Brand Overview: Communication Overview
Brand Overview: TVC Analysis
Endorsed by Bollywood Superstar Priyanka Chopra (refrigerator &
washing machine) and renowned Chef Sanjeev Kapoor (microwaves)
Accentuate Product Innovation
Underscoring Energy Efficiency
and Value for money
Brand Overview: Press Ads Analysis
Endorsed by Priyanka Chopra + Highly Tactical + Seasonal +
Energy Efficient + Accentuate Innovations
Brand Overview: Communication Analysis
Emotional Benefits
A catalyst of change to bring joy into
consumer’s life
Rational Benefits
Humanized and offers better personal
experience
Core Insight
Consumers desire to experience
innovation first hand
Reasons to Believe
Legacy of Innovation
(Ecobubble Technology, Dual Sensor Control,
Digital Inverter Compressor, Trio Technology)
Brand Overview: Positioning Overall
Aesthetic Designs + Affluent Buyers + Convenient Technology
New Technology + Innovative Products + Creative solutions
Live tomorrow’s Innovation
Brand Overview:
Whirlpool manufactures consumer appliances like
Refrigerator, Washing Machine, Air Conditioner,
Microwave
Brand Presence: Refrigerators
Products: Multi Door Refrigerators, Double Door Refrigerator, Single Door Refrigerator
Market Share: 20.2%
Brand Presence: Home Laundry
Products: Fully Automatic 360 Machine, Fully Automatic Machine (Top Load/ Front Load),
Semi-Automatic Washing Machine
Market Share: 17.2%
Brand Presence: Microwave
Products: Solo, Grill, Convention
Market Share: 10.5%
Brand Overview: Communication Overview
Brand Overview: TVC Analysis
Endorsed by Celebrities Couple Kajol & Ajay Devan (Washing Machine), Bollywood Actress Kiron Kher
(Microwave), Bollywood Actress Urmila Matondkar (Washing Machine) and Cricketer Irfan Khan (Microwave)
Shown Committed to the cause of homemakers and performs
prerequisite functions
Seasonal to a high extent
Brand Overview: Press Ads Analysis
Heritage Brand with Revolutionary
Innovations
Made for India’s Homemakers
Unique
Branded
solutions for
the basic
function
Tactical showcasing wide range of products
Brand Overview: Communication Analysis
Emotional Benefits
Sets you free and uplifts your spirit
Rational Benefits
Providing compelling solutions which are
valued by the consumers
Core Insight
Create solutions which accomplish
primitive needs of the consumers
Reasons to Believe
Unique Branded Solutions
(Whirlpool Ace Washstation, Whirlpool
IceMagic)
Brand Overview: Overall Positioning
Pure Convenience
Unique Branded Solutions + Primal Features
Brand Overview:
Godrej manufactures consumer appliances like
Refrigerator, Washing machine, Air Conditioner,
Microwave Ovens
Brand Presence Category: Refrigerators
Products: Frost Free, Direct Cool
Market Share: 16.2%
Brand Presence Category: Home Laundry
Products: Fully Automatic , Semi- Automatic
Market Share: 6.5%
Brand Overview: Communication Overview
Brand Overview: TVC Analysis
Added Product Benefit
(Washing Machine with Air Cleaning Technology, Washing Machine with 15 Degree Tilt, Refrigerator with FM
Radio and MP3 player)
Featuring its commitment to ‘Green Technology’
Brand Overview: Print Ad Analysis
Spotlighting on the Added Features + Featuring Youth + Highly Tactical +
Promoted along with Bollywood movie Ra-One
Brand Overview: Communication Analysis
Emotional Benefits
Puts you in a happy frame of mind
Rational Benefits
Helps you fulfill your intuitive needs
Core Insight
Create innovations on the basis of
underlying curiosity among the
consumers.
Reason To Believe
Inventive Thinking
(Godrej Eon-15 Degree tilted drum with Air
cleaning tecnology, Refrigerators with MP3 and
FM Radio)
Designed by Curiosity
Brand Overview: Overall Positioning
Thoughtful Products + Customized Innovations
Inventive Thinking
Brand Overview:
Videocon manufactures consumer appliances like
Refrigerator, Washing machine, Air Conditioner,
Microwave Ovens
Brand Presence Category: Refrigerators
Products: Double Door, Single Door
Market Share: 8.2%
Brand Presence Category: Home Laundry
Products: Front loading, Top Loading, Semi-Automatic
Market Share: 15%
Brand Overview: Communication Overview
Brand Overview: TVC & Press Ads Analysis
Technological
Trendsetter
India’s Pride
Brand Overview: Overall Positioning
Promoting Technological Breakthroughs + India’s Pride
The Indian Innovator
Brand Overview:
Faber manufactures Hoods, Hobs, Cooktops, Built-in-
ovens, Cooking range, Induction cookers,
Dishwashers, Exhaust fans
Leading Product Category: Large Cooking Appliances
Market Share: 30.6%
Brand Overview: Communication Overview
Brand Overview: Overall Positioning
India’s Leader + Heritage Brand + Aesthetic Design + Made by Experts
India’s Kitchen Experts
Brand Overview:
Kaff manufactures Cooker Hoods (Chimneys), Built-in-
Hobs, Induction Built-in-Hobs/Cooktops
Leading Product Category: Large Cooking Appliances
Market Share: 30.6%
Brand Overview: Communication Overview
Brand Overview: Overall Positioning
Lifestyle Statements + Aesthetic Designs +
Tactical + Emphasis on Performance
Stylish Performer
Consumer Understanding
The Indian Homemaker
Women In India
 Total Female
Population in India is
591,400,000
 Sex Ratio – 940
females per 1,000
males
 Life expectancy -
male: 65.77 years
female: 67.95 years
 No. of literate
females in India -
33,42,50,358
The Rural / Urban Divide
Rural Area constitutes major chunk of the population. As consumer
appliances have low penetration levels in these areas, they form an
important component for future growth.
Demographics
Age group female male
Children( 0-14) 165,415,758 187,450,635
15-64 372,719,379 398,757,331
65 + 33,998,613 30,831,190
Bulk of female population is seen to be in the age group
of 15 – 64. Home appliances are by and large bought
between this age group more between 25- 45
Trends
Things You Didn’t Know About Indian Women
The Indian Business Woman
 Indian women have carved a niche for themselves in the business world and
taken full advantage of the fruits of globalization
 The proportion of Indian women occupying senior positions in businesses
has catapulted from 9% in 2011 to 14% in 2012.
 The number of woman chief executives has jumped from 1% in 2011 to 10%
in 2012, when globally the number rose from 8% to only 9%.
She Is The Sole Decision Maker
 The home-maker in a
family is
predominantly a
woman in India.
 All purchase decisions
be it house hold
appliances, groceries,
clothes, linen are
dominated/governed
by the woman in any
house-hold.
The Work Life Balance
 Women in India play multiple roles.
 Work–life balance is the maintenance of a balance between
responsibilities at work and at home. Work and family have increasingly
become antagonist spheres, equally greedy of energy and time
 As a home – maker and as a dedicated employee, there is always a
struggle to maintain the perfect balance for both.
From Victims To Entrepreneurs
 The status of women in India has been subject to many great changes
over the past few millennia.
 From equal status with men in ancient timesthrough the low points of
the medieval period, to the promotion of equal rights by many
reformers, the history of women in India has been eventful.
The Multiple Talented Role player
 She starts as a daughter
then becomes a wife and
a daughter in-law to a
mother and a home-
maker.
 All these roles are played
by the same person at
the same time, which
makes it the most
challenging task.
A Day In The Life Of An Indian Home-maker
The Role Of An Indian House-Wife: A Full Time Job
Timings 5.30 – 11.30
She wakes up before the sun rises and even before the
rooster crows.
Not for herself but to make breakfast and pack lunch for
her children and husband. So the morning is dedicated
for her family.
An Indian family also consists of her husbands parents
i.e. her in-laws and possibly their aged parents too. So
her second job is to feed them and assist them at all
times. This is the most challenging job for an Indian
housewife as her in-laws can be extremely demanding.
By afternoon its time to pick up her kids from school,
give them a snack and rush them to their classes
(academic or extracurricular)
Then its time to make diner for the entire family, the
most important meal where the entire family sits
together.
Finally she puts her children to sleep, might have to press
her aging in-laws feet or head.
‘Delivering Comfort And Love Everyday’
A Day In The Life Of A Working Indian Woman
The working Indian woman
Her day begins early around 6 am since her first
priority is to make breakfast for the entire family as
well as prepare lunch and pack it for her self her
husband and her kid.
After sending her kids to work she gets ready for her
own job. During her strenuous 9 to 5 job she has to
coordinate with the caretaker of the house to make
sure the house is clean and the kids are picked up
from school.
As soon as she is back from work at 6 she has to
forget all her work pressures and begin making
diner for the entire family.
After wrapping up dinner and putting her kids to
sleep she gets some time with her husband and
probably some work to finish of for her job the next
day
‘Manager Of Time And Resources’
Role Of Home Appliances In The Life Of
An Indian Woman
House Hold Appliances – A Boon
 Gone are the days when the women of the house spent hours together in the kitchen
working tediously to cook a sumptuous meal for the family.
 Even the days when doing menial household chores like cleaning or laundry work,
devouring a major chunk of time, is today a thing of the bygone era.
 Today, you can manage your work, home and leisure at ease with technology of HOME
APPLIANCES
Semiotics Of Category
& Depiction Of Indian Woman In Advertising
Young Women Taking Charge
 Young women are the new
decision makers in a
household
 They take responsibility
and execute it with
excellence
 They are bold, spirited and
determined
Men And Women Are Now Equal At Home
 In the democracy of a household, the extensive use of home
appliances indicate the equality between man and woman
 With the emergence of the working woman, they are no
longer the sole care takers of the house and household
chores.
Yet Smarter Than A Man At Home
 Women today understand the importance and use of home appliances and
know how to apply them to make her life easier and better
 In intelligence both are equal. Man is aggressive and emotional. A woman is
patient, calm and receptive.
 She can bear more pain and has more tolerance than a man.
 She is stronger in conviction and in perseverance and hence in this day and
age where men and women are equal, women stand out and are able to
handle multiple responsibilities efficiently.
The Modern Indian Woman
 The modern Indian woman
is an epitome of power
where in she combines
tradition with modernity
 Indian Women are now no
longer in slumber. They are
awake and moving fast.
 She is smart, confident,
fearless and independent.
Compliment Machines
 Home appliances have turned out to be the Indian woman’s best friend.
 They empower her to make her family happy and comfortable at all times
 And more over are a huge compliment generator for her.
The Big Learning
The Transformation
The Indian home-maker has been transformed
by the technology of home appliances.
From the stereotypical introverted, subdued, caring mother and loyal wife
to…
An independent, smart & sensible working woman who can balance her life.
Thank You.
A Rediffusion Y&R Presentation

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Mabe Consumer Electronics Brand

  • 1. Mabe A deep dive into the home appliances market in India
  • 2. Agenda for today’s presentation  Overview of the Indian Market  Market Size + Key players by value/volume  Market Mix – Products, Pricing, Placement  Current and Future trends  Brand Overview : Branding in India market for top 5 players  Introduction to Category Codes  Current positioning of master brand  Media mix + Seasonality  Consumer Overview  Understanding the Indian homemaker
  • 3. Scope of Presentation: “Major Appliances” Market in India DishwasherDryers Washing Machines Cooking Appliances & Microwaves Refrigerator
  • 4. Overview of the Market Size + Key Players + Market Mix + Trends
  • 5. 1,141 1,316 1,547 1,874 2,299 2,761 3,154 3,590 4,061 4,561 5,087 5,931 6,725 7,756 9,377 11,467 13,404 15,571 17,979 20,540 23,212 25,945 0 5,000 10,000 15,000 20,000 25,000 30,000 0 1,000 2,000 3,000 4,000 5,000 6,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Sales ($ million) Sales ('000s) Column1 Column2 Euromonitor International Sales of major Appliances in Value and Volume The Average percentage growth for major appliances from 2005 to 2011 is 15.6%
  • 6. Key Player’s Share of Major Appliances Euromonitor International 11% 11% 10% 10% 9% 10% 11% 12% 12% 12% 17% 17% 16% 17% 18% 15% 16% 19% 19% 21% 26% 24% 23% 25% 25% 0% 5% 10% 15% 20% 25% 30% 2006 2007 2008 2009 2010 Videocon Godrej & Boyce Whirlpool Samsung LG • South Korean giants LG and Samsung have a major presence with 25% and 21% market shares. • While domestic players have lost steam and their growth has been sluggish.
  • 7. Distribution Formats in India Independent Retailers Branded Retailers Branded MBO’s & Hypermarts – Electrical Goods (Croma, Ezone) & Kitchen Specialists (Homestop) Independent Electrical Goods Retailers and Kitchen Specialists (regional)
  • 8. Major Appliances by Distribution Format: % Breakdown 2005-2010 1.9 2.6 3.1 3.6 4.3 4.7 9.5 9.4 10.1 10.5 10.6 10.6 57.2 60.3 56.5 53.8 50.1 49.9 4 5.8 7.8 9.3 11.3 11.6 27.3 21.9 22.3 22.6 23.2 22.7 0 20 40 60 80 100 120 2005 2006 2007 2008 2009 2010 Electrical goods retailers independents Electrical goods retailers multiples (Chroma, E-Zone) Kitchen specialists independents Kitchen specialists multiples (Homestop, Veneta Cucine) Hypermarkets (Big Bazaar, Dmart) % retail volume Even though the independent retailers have lost their share, they constitute nearly 75% of the distribution. Grocery Retailers Non-Grocery Retailers (Durable goods retailers)
  • 9. Current and Future Trends Major Appliances
  • 10. Rising Nuclear Families Driving Growth “An analysis of recently released census data reveals that the median household size in urban India is now less than four for the first time in history. In addition, we are seeing a rise in the number of nuclear families compared with multi-generational families throughout India” – The Times of India Multi-Generational Families Nuclear Families
  • 11. 0 10 20 30 40 50 60 2008 2009 2010 Built-In-Hobs Fridges Window Air Conditioner Fridge Freezers Semi Automatic Washing machine Automatic Washing machine Dishwashers With exposure to different digital media, a large number of consumers are replacing their old appliances and upgrading to products with better, more advanced features. Shortening Replacement Cycle for Major Appliances Replacement cycles - years
  • 12. Escalating Demand for Higher Capacity Products Since such products are long term investments, especially large appliances, keeping in mind changing household needs, more consumers are choosing to buy high capacity models. Hectic lifestyles and the paucity of home help have prompted consumers to look for such appliances to help them with their daily chores. Demand for automatic washing machines is growing faster than for semi-automatic washing machines 30 litre microwaves are increasingly popular.
  • 13. Growing Need for Energy Efficient Products Surging electricity prices and increasing calls to use energy efficient products by the government have spurred the demand for star rated appliances in the country. The star rating of a product is a decisive factor in the purchasing decision for refrigerators and air conditioners, which are high- energy consuming appliances.
  • 14. New Era of Aesthetically Pleasing Products Increased disposable income has encouraged consumers to seek aesthetically pleasing products. More confidence to invest in consumer appliances as lifestyle products rather than consider them only as chore simplifiers. Along with features and functioning, the looks and design of a product is having an influence on the purchasing decision. In 2009, LG launched fridge freezers with eye- catching exteriors such as marble, art flowers and mirror black. In 2010, Whirlpool of India launched aesthetically appealing air conditioners.
  • 15. Market Mix: Products (Refrigerator, Washing Machines & Microwaves) SIDE BY SIDE Refrigerators (Rs 50K- Rs. 1.5 Lakh) Double Door Refrigerators (Frost Free) (Rs. 10-30K) Single Door Refrigerator (Rs. 8K- 15K) Front Load Washing (Automatic/Semi-Automatic) (Rs.25K-40K) Top Load Automatic (Rs. 17K-22K) Top Load Semi-Automatic Washing (Rs. 7K-10K) Convection (Rs.11K-15K) Grill (Rs.7K-9K) Solo (Rs.4K-5K)
  • 17. Product Category : Refrigerators
  • 18. Info-graphic of brands (logos) and size of share Market Size  In 2010, the sales of the refrigeration appliances was $1642.79 million Biggest Gainers & losers  Refrigerator appliances dominated by MNCs. Why this leadership?  Wide product portfolio, extensive distribution network and aggressive above-the-line marketing  Capitalizing on trend of higher capacity models and to target the untapped rural market with high capacity fridges. What are the challenger brands and what is their mantra?  Samsung has heavily invested in R&D.  Samsung’s unique selling point lies in Frrrunch’s vegetable box which the company claims keeps fruit and vegetables fresh for a longer period. Product Category: Refrigeration Appliances Current Market Size & Key Players 9.7 9.4 8.4 8.2 8.2 14.1 15.9 17.2 15.9 16.2 20.3 20.2 18.9 19.2 20.2 14.3 16.1 18.9 19.2 20.2 25 22.5 21.7 24.9 24.8 0 5 10 15 20 25 30 2006 2007 2008 2009 2010 Videocon Godrej and Boyce Whirlpool Samsung LG % retail volume Company Shares of Refrigeration Appliances 2006-2010
  • 19.  Product  Demand for technologically advanced and higher capacity refrigerators.  Energy efficient products.  Placement  Indians visit outlets to gain product knowledge in order to make informed comparisons and choices.  The majority of purchases occur in independent durable goods retailers.  Price  Due to rising commodity prices, the average unit price increases by 2% in current value terms in 2010 Opportunities for a new brand  Instead of competing on price, companies can promote a different unique selling point – health, hygiene and freshness currently important Current Market Trends
  • 21.  Market Size  The sales of home laundry appliances was around $839.30 million in 2010.  Emerging affluent middle class & easy finance have fuelled the demand  Expected new entrants  GE Appliances is venturing into automatic washing machines.  Why does LG have leadership?  LG’s extensive distribution network, wide product portfolio, frequent new product launches and aggressive marketing strategies  What are the challenger brands and what is their mantra?  Samsung has its own design & R&D.  Competes on price and offering value for money to its customers. Product Category: Home Laundry Current Market Size & Key Players 6.1 6.2 6.4 6.9 6.5 17.1 17.7 17.7 16.7 15 16 15.8 14.1 16.3 17.217.1 18.4 20.4 22.1 23.9 29.1 26.4 25.3 25.5 25.9 0 5 10 15 20 25 30 35 2006 2007 2008 2009 2010 Godrej & Boyce Videocon Whirlpool Samsung LG Company Shares of Home Laundry Appliances 2006-2010 % retail volume
  • 22.  Product  Consumers prefer automatic machines as they consume less water & electricity  Low Priced Semi-automatic models are popular in II & III-tier cities.  “Green” technology, colourful designer appliances and high capacity models  Pricing  Rise in commodity prices and high logistics cost has led to price increase  Placement  Consumers visit outlets to acquire product knowledge & compare  Opportunities for a new brand  Offering tangible USP’s such as hygienic cleaning, easy washing, energy and water efficiency (besides price) Current market trends 0 500 1000 1500 2000 2500 3000 3500 4000 2005 2006 2007 2008 2009 2010 Semi-Automatic Washing Machine Atomatic Washing Machine Sales of Home Laundry Appliances by Category: Volume 2005- 2010 '000 units
  • 23. Product Category: Large Cooking Appliances
  • 24.  Market Size  Sales of large cooking appliances = $129.01 million in 2010.  Key market trends –  Exposure to global living standards and changing lifestyles has boost the demand  Domestic companies (Faber Heatkraft Industries, Kaff Appliances, Sunflame Enterprises) have major share (90%) due to strong distribution and product presence.  Expected new entrants  IFB and Elica Group to venture into large cooking appliances  Why the leader has leadership?  Faber Heatkraft’s designer range, products and distribution has made it a leader  What are the challenger brands and what is their mantra ?  Kaff Appliances is strengthening its distribution network and launching customized products. Product Category: Large Cooking Appliances Current Market Size & Key Players 5.3 5.7 5.9 5.8 5.8 14.8 14.7 14.4 15.2 15.2 16.3 16.1 16.2 15.7 15.715.6 16.1 16.4 16.8 16.9 28.1 28.9 29.3 30.1 30.6 0 5 10 15 20 25 30 35 2006 2007 2008 2009 2010 Inalsa Sunflame Glen Appl. Kaff Appl. Faber HeatKraft Company Shares of Large Cooking Appliances 2006-2010 % retail volume
  • 25.  Product  Changing lifestyles and greater exposure to global living standards  Attractive products and desire to accessorize the kitchen boosted demand.  Pricing  High commodity prices & excise duty has caused increase in avg. unit price.  Placement.  Large cooking appliances are distributed by durable goods retailers. Kitchen specialists independents have major share. Nonetheless, hypermarkets have increased their share.  Opportunities for a new brand  As customers have become more brand conscious, there is an opportunity for premium brands Current market trends 0 50 100 150 200 250 300 350 2005 2006 2007 2008 2009 2010 21.8 26.2 31.3 37.2 44.2 53.1 40.8 47.3 54.8 63.1 73.5 86.7 130.5 159.1 193.4 228.2 281.6 339.8 Built-In Hobs Built-in Large Cooking Appliances Free-Standing Cooking Appliances '000 units Sales of Large Cooking Appliances by Category: Volume 2005-2010
  • 27.  Market Size  Sales of microwave in 2010 was $155.47 million  Key market trends –  Low household penetration boosts the growth rate  Why the leader has leadership?  Wide distribution, innovation and a large product portfolio have helped LG to maintain its leading position.  It is also launching customized products which suits Indian style of cooking.  What are the challenger brands and what is their mantra ?  On the back of new product launches and aggressive promotions, Samsung increased its share over the years. Product Category: Microwaves Current Market Size & Key Players Company Shares of Microwaves 2006-2010 % retail volume 10.5 9.5 8.8 8.1 7.5 2.3 3.6 6.4 9.9 10.59.9 10.7 10.4 10.5 10.5 16.5 16.2 17.2 18 20 33.5 32.5 32.4 33.5 33 0 5 10 15 20 25 30 35 40 2006 2007 2008 2009 2010 Kenstar Whirlpool Bajaj Samsung LG
  • 28.  Product  Due to hectic lifestyles, time-poor consumers (working couples) are resorting to microwave cooking  Companies are educating cooking using microwaves  Rising number of working women has increased the demand for microwaves  Variety of products and competitive prices have afforded consumers to choose higher capacity models  Built-in microwaves will mainly be upper-income consumers  Pricing  High commodity prices & excise duty has caused increase in avg. unit price.  Placement.  Microwaves are primarily sold through durable goods retailers.  Department stores and hypermarkets are gaining importance  Opportunities for New Brand  In order to increase the use of microwaves for day-to-day cooking in India, companies are advised to launch more customized options, providing new Indian recipes to suit local cooking styles and dishes in the forecast period. Current market trends
  • 29. Brand Overview : Communication (split according to master brand – top 5 brands in India)
  • 30. Brand Overview: LG manufactures consumer appliances like Refrigerator, Washing machine, Dryers, Dishwashers, Microwave Ovens Leading Product Category: Refrigerators Products: Side by Side Refrigerators, Double Door Refrigerator, Single Door Refrigerator Market Share: 24.8% Leading Product Category: Home Laundry Products: Washer Dryer Combo, Front Load Washing Machine, Top Load Washing Machine, Semi-Automatic Washing Machine Market Share: 25.9% Leading Product Category: Microwave Market Share: 33%
  • 32. Brand Overview: TVC Analysis Usage of Popular Television Actors Branding Technology World’s 1st Charcoal Lighting Heater Creating Clear Technological Differentiation ‘Now make Tasty Food Healthy’ Branding Technology which benefits the consumer Woo the new age affluent consumers Exhibit Aesthetic Design Unlike other brands, LG advertizes throughout the year resulting in high brand recall
  • 33. Brand Overview: Press Ads Analysis Universalizing ‘Health’ for all Products Tactical to a very high Degree (emphasis on promotions, festivals, energy efficiency, price range) India’s Leader in Consumer Appliance Branding Technology which benefits the consumer
  • 34. Brand Overview: Communication Analysis Emotional Benefits Makes your world healthy & happy Rational Benefits Design products with a substantial value Core Insight Delivering significant technology which accommodates consumer’s intuitive needs Reason to Believe Branded Technology ‘Silent Washing Machine, Healthy Microwaves, 6 motion DD Washing Machine’ Life’s Good
  • 35. Brand Overview: Overall Positioning Micro-Localization + Premium Technology + Aesthetic Designs (6 Motion DD washing machine, Silent Washing Machine, Healthy Microwave) Delightfully Smart
  • 36. Brand Overview: Samsung manufactures consumer appliances like Refrigerator, Washing machine, Air Conditioner, Smart Oven, Microwave Ovens Challenger Brand: Refrigerators Products: Side by Side Refrigerators, Double Door Refrigerator, Single Door Refrigerator Market Share: 24.8% Challenger Brand: Home Laundry Products: Washer Dryer Combo, Front Load Washing Machine, Top Load Washing Machine, Semi-Automatic Washing Machine Market Share: 25.9% Challenger Brand: Microwaves Products: Convection, Grill, Solo Market Share: 20%
  • 38. Brand Overview: TVC Analysis Endorsed by Bollywood Superstar Priyanka Chopra (refrigerator & washing machine) and renowned Chef Sanjeev Kapoor (microwaves) Accentuate Product Innovation Underscoring Energy Efficiency and Value for money
  • 39. Brand Overview: Press Ads Analysis Endorsed by Priyanka Chopra + Highly Tactical + Seasonal + Energy Efficient + Accentuate Innovations
  • 40. Brand Overview: Communication Analysis Emotional Benefits A catalyst of change to bring joy into consumer’s life Rational Benefits Humanized and offers better personal experience Core Insight Consumers desire to experience innovation first hand Reasons to Believe Legacy of Innovation (Ecobubble Technology, Dual Sensor Control, Digital Inverter Compressor, Trio Technology)
  • 41. Brand Overview: Positioning Overall Aesthetic Designs + Affluent Buyers + Convenient Technology New Technology + Innovative Products + Creative solutions Live tomorrow’s Innovation
  • 42. Brand Overview: Whirlpool manufactures consumer appliances like Refrigerator, Washing Machine, Air Conditioner, Microwave Brand Presence: Refrigerators Products: Multi Door Refrigerators, Double Door Refrigerator, Single Door Refrigerator Market Share: 20.2% Brand Presence: Home Laundry Products: Fully Automatic 360 Machine, Fully Automatic Machine (Top Load/ Front Load), Semi-Automatic Washing Machine Market Share: 17.2% Brand Presence: Microwave Products: Solo, Grill, Convention Market Share: 10.5%
  • 44. Brand Overview: TVC Analysis Endorsed by Celebrities Couple Kajol & Ajay Devan (Washing Machine), Bollywood Actress Kiron Kher (Microwave), Bollywood Actress Urmila Matondkar (Washing Machine) and Cricketer Irfan Khan (Microwave) Shown Committed to the cause of homemakers and performs prerequisite functions Seasonal to a high extent
  • 45. Brand Overview: Press Ads Analysis Heritage Brand with Revolutionary Innovations Made for India’s Homemakers Unique Branded solutions for the basic function Tactical showcasing wide range of products
  • 46. Brand Overview: Communication Analysis Emotional Benefits Sets you free and uplifts your spirit Rational Benefits Providing compelling solutions which are valued by the consumers Core Insight Create solutions which accomplish primitive needs of the consumers Reasons to Believe Unique Branded Solutions (Whirlpool Ace Washstation, Whirlpool IceMagic)
  • 47. Brand Overview: Overall Positioning Pure Convenience Unique Branded Solutions + Primal Features
  • 48. Brand Overview: Godrej manufactures consumer appliances like Refrigerator, Washing machine, Air Conditioner, Microwave Ovens Brand Presence Category: Refrigerators Products: Frost Free, Direct Cool Market Share: 16.2% Brand Presence Category: Home Laundry Products: Fully Automatic , Semi- Automatic Market Share: 6.5%
  • 50. Brand Overview: TVC Analysis Added Product Benefit (Washing Machine with Air Cleaning Technology, Washing Machine with 15 Degree Tilt, Refrigerator with FM Radio and MP3 player) Featuring its commitment to ‘Green Technology’
  • 51. Brand Overview: Print Ad Analysis Spotlighting on the Added Features + Featuring Youth + Highly Tactical + Promoted along with Bollywood movie Ra-One
  • 52. Brand Overview: Communication Analysis Emotional Benefits Puts you in a happy frame of mind Rational Benefits Helps you fulfill your intuitive needs Core Insight Create innovations on the basis of underlying curiosity among the consumers. Reason To Believe Inventive Thinking (Godrej Eon-15 Degree tilted drum with Air cleaning tecnology, Refrigerators with MP3 and FM Radio) Designed by Curiosity
  • 53. Brand Overview: Overall Positioning Thoughtful Products + Customized Innovations Inventive Thinking
  • 54. Brand Overview: Videocon manufactures consumer appliances like Refrigerator, Washing machine, Air Conditioner, Microwave Ovens Brand Presence Category: Refrigerators Products: Double Door, Single Door Market Share: 8.2% Brand Presence Category: Home Laundry Products: Front loading, Top Loading, Semi-Automatic Market Share: 15%
  • 56. Brand Overview: TVC & Press Ads Analysis Technological Trendsetter India’s Pride
  • 57. Brand Overview: Overall Positioning Promoting Technological Breakthroughs + India’s Pride The Indian Innovator
  • 58. Brand Overview: Faber manufactures Hoods, Hobs, Cooktops, Built-in- ovens, Cooking range, Induction cookers, Dishwashers, Exhaust fans Leading Product Category: Large Cooking Appliances Market Share: 30.6%
  • 60. Brand Overview: Overall Positioning India’s Leader + Heritage Brand + Aesthetic Design + Made by Experts India’s Kitchen Experts
  • 61. Brand Overview: Kaff manufactures Cooker Hoods (Chimneys), Built-in- Hobs, Induction Built-in-Hobs/Cooktops Leading Product Category: Large Cooking Appliances Market Share: 30.6%
  • 63. Brand Overview: Overall Positioning Lifestyle Statements + Aesthetic Designs + Tactical + Emphasis on Performance Stylish Performer
  • 65. Women In India  Total Female Population in India is 591,400,000  Sex Ratio – 940 females per 1,000 males  Life expectancy - male: 65.77 years female: 67.95 years  No. of literate females in India - 33,42,50,358
  • 66. The Rural / Urban Divide Rural Area constitutes major chunk of the population. As consumer appliances have low penetration levels in these areas, they form an important component for future growth.
  • 67. Demographics Age group female male Children( 0-14) 165,415,758 187,450,635 15-64 372,719,379 398,757,331 65 + 33,998,613 30,831,190 Bulk of female population is seen to be in the age group of 15 – 64. Home appliances are by and large bought between this age group more between 25- 45
  • 68. Trends Things You Didn’t Know About Indian Women
  • 69. The Indian Business Woman  Indian women have carved a niche for themselves in the business world and taken full advantage of the fruits of globalization  The proportion of Indian women occupying senior positions in businesses has catapulted from 9% in 2011 to 14% in 2012.  The number of woman chief executives has jumped from 1% in 2011 to 10% in 2012, when globally the number rose from 8% to only 9%.
  • 70. She Is The Sole Decision Maker  The home-maker in a family is predominantly a woman in India.  All purchase decisions be it house hold appliances, groceries, clothes, linen are dominated/governed by the woman in any house-hold.
  • 71. The Work Life Balance  Women in India play multiple roles.  Work–life balance is the maintenance of a balance between responsibilities at work and at home. Work and family have increasingly become antagonist spheres, equally greedy of energy and time  As a home – maker and as a dedicated employee, there is always a struggle to maintain the perfect balance for both.
  • 72. From Victims To Entrepreneurs  The status of women in India has been subject to many great changes over the past few millennia.  From equal status with men in ancient timesthrough the low points of the medieval period, to the promotion of equal rights by many reformers, the history of women in India has been eventful.
  • 73. The Multiple Talented Role player  She starts as a daughter then becomes a wife and a daughter in-law to a mother and a home- maker.  All these roles are played by the same person at the same time, which makes it the most challenging task.
  • 74. A Day In The Life Of An Indian Home-maker
  • 75. The Role Of An Indian House-Wife: A Full Time Job Timings 5.30 – 11.30 She wakes up before the sun rises and even before the rooster crows. Not for herself but to make breakfast and pack lunch for her children and husband. So the morning is dedicated for her family. An Indian family also consists of her husbands parents i.e. her in-laws and possibly their aged parents too. So her second job is to feed them and assist them at all times. This is the most challenging job for an Indian housewife as her in-laws can be extremely demanding. By afternoon its time to pick up her kids from school, give them a snack and rush them to their classes (academic or extracurricular) Then its time to make diner for the entire family, the most important meal where the entire family sits together. Finally she puts her children to sleep, might have to press her aging in-laws feet or head. ‘Delivering Comfort And Love Everyday’
  • 76. A Day In The Life Of A Working Indian Woman
  • 77. The working Indian woman Her day begins early around 6 am since her first priority is to make breakfast for the entire family as well as prepare lunch and pack it for her self her husband and her kid. After sending her kids to work she gets ready for her own job. During her strenuous 9 to 5 job she has to coordinate with the caretaker of the house to make sure the house is clean and the kids are picked up from school. As soon as she is back from work at 6 she has to forget all her work pressures and begin making diner for the entire family. After wrapping up dinner and putting her kids to sleep she gets some time with her husband and probably some work to finish of for her job the next day ‘Manager Of Time And Resources’
  • 78. Role Of Home Appliances In The Life Of An Indian Woman
  • 79. House Hold Appliances – A Boon  Gone are the days when the women of the house spent hours together in the kitchen working tediously to cook a sumptuous meal for the family.  Even the days when doing menial household chores like cleaning or laundry work, devouring a major chunk of time, is today a thing of the bygone era.  Today, you can manage your work, home and leisure at ease with technology of HOME APPLIANCES
  • 80. Semiotics Of Category & Depiction Of Indian Woman In Advertising
  • 81. Young Women Taking Charge  Young women are the new decision makers in a household  They take responsibility and execute it with excellence  They are bold, spirited and determined
  • 82. Men And Women Are Now Equal At Home  In the democracy of a household, the extensive use of home appliances indicate the equality between man and woman  With the emergence of the working woman, they are no longer the sole care takers of the house and household chores.
  • 83. Yet Smarter Than A Man At Home  Women today understand the importance and use of home appliances and know how to apply them to make her life easier and better  In intelligence both are equal. Man is aggressive and emotional. A woman is patient, calm and receptive.  She can bear more pain and has more tolerance than a man.  She is stronger in conviction and in perseverance and hence in this day and age where men and women are equal, women stand out and are able to handle multiple responsibilities efficiently.
  • 84. The Modern Indian Woman  The modern Indian woman is an epitome of power where in she combines tradition with modernity  Indian Women are now no longer in slumber. They are awake and moving fast.  She is smart, confident, fearless and independent.
  • 85. Compliment Machines  Home appliances have turned out to be the Indian woman’s best friend.  They empower her to make her family happy and comfortable at all times  And more over are a huge compliment generator for her.
  • 87. The Transformation The Indian home-maker has been transformed by the technology of home appliances. From the stereotypical introverted, subdued, caring mother and loyal wife to… An independent, smart & sensible working woman who can balance her life.
  • 88. Thank You. A Rediffusion Y&R Presentation

Editor's Notes

  1. Distribution Definitions Specialist multiples: or chains that specialise in electrical household appliances. A chain is defined by operating 10 or more outlets. Specialist independents: independent retailers specialising in the sale of domestic electrical appliances. Independents are defined by operating less than 10 outlets. Kitchen specialists: Retail outlets with several stores specialising in the sale of kitchens (usually fitted kitchens) that also sell appliances with the kitchens.
  2. Players such as LG Electronics India and Samsung India Electronics have already launched 5-star products in India and they are looking to convert their entire product portfolio to energy efficient appliances, by introducing star rated and recyclable models. Samsung has a policy of not using lead or mercury in any of its products manufactured in India. According to industry sources, star rated products accounted for one third of total sales of brands such as LG, Samsung, Voltas, Carrier and Godrej in the first half of 2010. FUTURE TRENDS: With soaring electricity prices and growing environmental awareness among consumers, the demand for energy efficient appliances is likely to escalate. In consumer appliances, the star rating was available only for air conditioners, refrigeration appliances and ceiling fans in 2010. However, in the forecast period, washing machines, microwaves and dishwashers, along with small appliances such as irons and small cooking appliances are expected to be star rated.
  3. Retail volume sales of refrigeration appliances grew by 15% in 2010 to reach eight million units. Key market trends – The demand for refrigeration appliances is expected to grow in rural and semi-urban areas, where the household rate is very low. Importantly, a large proportion of the Indian population still resides in such areas. Retail volume sales are projected to grow by a 13%, driving the household penetration rate of fridges to 28% and fridge freezers to 13% in 2015. Biggest Gainers & losers Refrigerator appliances is dominated by multinational companies. Godrej & Boyce Manufacturing and Videocon Industries were the only two domestic companies with significant retail volume shares in 2010. Expected new entrants Why the leader has leadership? With a 25% share of retail volume sales, LG was the leading player in refrigeration appliances in 2010. A wide product portfolio, extensive distribution network and aggressive above-the-line marketing have helped the company to retain its leading position over the review period. Samsung was the second-ranked playerwith a 21% share. In 2009, LG led both freestanding fridges and fridge freezers with retail volume shares of 23% and 28%, respectively. To capitalise on the trend of higher capacity models and to target the untapped rural market, where electricity supply is a big problem, LG launched 23 new high capacity static cool fridges in Q1 2010, according to trade sources. What are the challenger brands and what is their mantra But in 2010, LG was overtaken by Samsung in freestanding fridge freezers. Samsung. Has invested heavily in R&D and the launch of the five star Frrrunch range of fridge freezers has enabled the company to grow its share to 26%. According to trade sources, Samsung has launched 43 new frost-free models under its Frrrunch range. The unique selling point lies in Frrrunch’s vegetable box which the company claims keeps fruit and vegetables fresh for a longer period.
  4. Current market trends Product Freestanding fridge freezers is expected to remain the fastest growing type, with sales increasing by a 15% retail volume CAGR. This growth is based on the rising number of middle-income consumers, which is expected to stimulate upgrades from fridges to fridge freezers in the forecast period. With such strong growth, fridge freezer ownership is estimated to grow by seven percentage points over the forecast period to reach 13% in 2015. This growth is due to higher product availability and the upgrade trend among consumers. The expanding availability of fridges in smaller cities is expected to boost ownership to 28% in 2015, an increase of eight percentage points over 2010. Healthy economic growth coupled with increased purchasing power will drive the demand for technologically advanced and higher capacity refrigeration appliances in the country. This will boost the demand for high-end 3- and 4-door and side-by-side models, particularly in major cities. Pricing The growth of large chained durable goods retailers has given an opportunity to companies to showcase their product ranges. Most people visit these outlets to gain product knowledge in order to make informed comparisons and choices. However, the majority of purchases continue to occur in independent durable goods retailers, which accounted for a combined 75% share of retail volume sales in 2010. Opportunities for a new brand Instead of competing on price, companies are promoting unique selling points, with health, hygiene and freshness claims the most important propositions. Whirlpool has launched the frost-free Protton world series (with 300+ litre capacity), and an eco-friendly refrigerator with freshness booster system (FBS), which maintains the freshness of vegetables for more than one week.
  5. Companies can competeon price and product differentiation. In addition, customers have become more brand conscious.