Group 12 presents strategies used by various companies:
1. Reliance Jio launched cheap tariffs to compete with telecom giants in India. Nokia phones are in decline due to Windows OS and competition from other brands. Patanjali is growing rapidly through product expansion and promotions.
2. Nestle is undertaking small product changes like packaging to maintain maturity. Brands leverage existing brands through new product lines. Price cuts can reduce brand appeal.
3. Companies use strategies like targeting local markets, retaining customers through price cuts, expanding product categories, and removing unprofitable customers. LG leads the Indian refrigerator market through innovations, distribution networks, and competitive pricing.
2. Reliance Jio has
launched a simplified
and cheap tariff
structure to compete
with telecom biggies
in the Indian
Market.
Consequence is
product
establishment and
Brand building.
Nokia Phones are in
the decline stage of
PLC.
Demand for Nokia has
sharply declined due to
non popularity of
Windows OS and more
innovation and
aggressive marketing by
competitors.
Patanjali is in the
growth stage of the
PLC with a turnover of
2000 Crores+.
There is rapid expansion
of product lines,
distribution channels
and promotional
expenditure to capture
more market share and
profits.
Nestle is in the
maturity stage where
it has declining sales
growth.
The Business is
undertaking stylistic
product changes in
packaging, heavy
dealer discounts and
increasing variants to
keep the range alive.
3. Brand Building:
Leveraging Strategy: Milking Strategy:
Using existing brand
strength to come up with
new product lines such
as Vim Liquid in addition
to Vim Bar.
Nestle follows the same
strategy for Nesquik.
Gionee has launched new handset models in
India to establish its presence. It has also
hired Alia Bhatt as a Brand Ambassador.
Similarly, Bosch is launching India – specific
products to establish the Brand.
Leveraging Strategy is also used by
Tropicana/ Sunsilk / Real to
introduce new variants and
flavours of existing products.
Price cutting strategy to popularize the
brand.
Adopted by Koutons; constantly reducing
prices in non – sale season.
Leads to reduced appeal for the Brand and
product as premium
4. Customer Acquisition Strategy: Micromax is launching a multilingual cell phone to tap into local
markets. This is to compete in smaller towns where people still prefer feature phones due to ease of
use.
Customer Retention Strategy: Airtel has joined the bandwagon of dropping prices. They announced 2
data packs for 3G & 4G data users by cutting their tariff by 80% to avoid customers from switching to
Reliance Jio.
Customer Expansion Strategy: FMCG companies like HUL & Procter & Gamble sell bundled offers of
shampoo and conditioner at reduced prices to expand the market for conditioners in India as Indian
customers do not use conditioner due to a tradition of hair – oiling.
Customer Deletion Strategy: Credit Card companies such as American Express and Bankers like Citi
removed thousands of credit card customers who did not pay their credit card dues on time. This was
done in order to increase profitability and clear bad loans.
7. • Largest segment of
kitchen appliances in
India.
• Rising disposable
incomes and longer
summers drive
refrigeration appliances’
growth in India .
• Grew by 14% in retail
volume terms and by
26% in retail in 2015 to
reach 12 million units
and Rs296 billion
respectively.
• Average unit price grew
by 10% in current value
terms in 2015, due to
inflation in the country
and increased demand
for better quality high-
priced products.
LG Electronics India Private Ltd continues to lead
refrigeration appliances with a 24% volume share in
2015
8.
9. Increased cooling
capacity for power cuts
during Indian summers
Capable of running on an
inverter
(Inverter Compressor Mode)
Easy to maintain free –
standing refrigerators that
are convenient to relocate or
shift
Marginally lower unit price tailored
to the cost conscious Indian
consumer
Specialized offices called Remote
Area Offices (RAOs) for efficient
distribution in rural areas and
smaller centers with lower
penetration
Increased expenditure on R&D –
only Indian refrigerator with a 4
star rating with highest savings
10. Innovative Market Strategy
All the year round
advertising
Regional Channel Strategy
Decentralized
distribution model
Direct Distributor
Model
Stock Rotation with
no dumping on
channel partners
Production Strategy
Local manufacturing
to reduce import
duty
Low Over heads
due to six sigma
strategy
Digitized
manufacturing
to cut cost
Consumer Centricity
Nano – antibacterial &
Deodorizing technology
Product Design as
per customer
feedback
Most competitive
pricing/ geographical
pricing
World’s first TV
refrigerator
In – built
speaker and
tuner for
kitchen
entertainment
14. LG has 26 Varieties of
Side by side
refrigerators in India,
Godrej has 1.
24% Market Share by
Volume,
25% Market Share by
Value
Highest Market
share across
every product
variant
category
15. India is the only market globally
where LG
scores over Samsung in
the Kitchen Appliance category
Top 5 most trusted brands of India
Higher Market share for the
Korean Giant than all Indian
manufacturers combined