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REFRIGERATOR INDUSTRY
This document provides information about refrigerators as a product sector in India. It discusses key details such as prominent players in the market including Videocon, LG, Samsung, Whirlpool and Godrej. It analyzes the market share of companies and regional sales data. A SWOT analysis is presented for the refrigerator sector and individual companies. An operational strategy is outlined covering aspects like location, manufacturing process, marketing strategy and distribution strategy. The document also discusses components and pricing for single and double door refrigerator models. A plant layout, distribution approach and exit strategies are presented.
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REFRIGERATOR INDUSTRY
- 1. Submitted By: Group -4 Sameeksha Verma (204) Yogesh kumar Agarwal (202) Amit Binwani (195 ) Paul Chandranath( 201 ) Anshul Kothari( 231 ) Soumya Sharma( 211 ) Shiva Ganesh( 212 ). REFRIGERATOR Company: friOven.- Glitter of Innovation.
- 2. Introduction • Common householdappliance & White Good. • Applications :Domestic,Commercial and Industrial (Volume & Product markets) • Growth potential • In 2012-13 more than 7.5 Million units Sold , which accounts at around Rs 11,200 crores. • 46 % of urban households And 8 % of rural households in India own a refrigerator Prominent Player: • Videocon International Limited • LG Electronics India Limited • Samsung India Electronics Limited • Whirlpool of India Ltd • Godrej & Boyce Mfg. Co. Ltd • Voltas Limited About the Sector & Prominent Player
- 3. Market Analysis Frost free 29% Direct cool 71% Category WiseMarket Share 0 5 10 15 20 25 30 LG Samsung Godrej Videocon Whirlpool Others Market Share of Companies 28.6% 18.6% 18.6% 17.6% 12% 5% Region wise Refrigerator Sales North 29% East 13% West 24% South 34%
- 4. SWOT Analysis OfRefrigerator Sector Strengths 1.Generation of Employment in the rural & urban areas. 2. FDI Support by government . 3.Existence of the product provide flexibility in adapting to brand- access to markets. Weakness 1.Downsizing margins . 2.Need to Regularly update the technology 3.Seasonal demand & Price Variations & Margins. Opportunity 1. Growing Middle class & micro families. 2. Potential Demanding Electrical & Appliances Markets . 3. India's Market Stretch & Resources . 4.Emerging E-commerce market . 5. Increase in Nuclear Family. Threats 1. Heavy tax levied on consumers 2. Govt. Changing policies and rules 3. Increasing competition &Copyrights. 4.Increase in raw material cost . 5. Availability of power . 6. Fluctuations in Exchange Rates. 7.Technologies & Adherence to International Compliance Laws (ISO) etc. Swot
- 5. SWOT Analysis OfRefrigerator Company Strengths 1. Good Quality . 2. Enhanced Features (Micro-oven, Control Panel etc.). 3. After sales Service & reverse logistics framework. 4. Focus on a Specific region (Consolidating positioning). Weakness 1.Contract channel Involvement . 2. Limited Line Offering . 3. High Operating Cost (Initial Start-up). 4. Product Variety is less. 5. Brand Positioning. Opportunity 1. Improved Technology and Widening Product portfolio . 2. E-commerce( Direct Sales & Support Service). 3. Manufacturing & Operations at large scale. 4. Redesign, Improved Brand & Quality Image. Threats 1. Highly Competitive Industry Dynamics(LG , Godrej, Samsung etc ) . 2. Economics Instability . 3. Stagnant Market Demand . 4. High End products & Services . 5. Financial Support & Instances of false claims eroding value & Customer trust. 6.Current product design of competitors . Swot
- 6. Operations Strategy Location Assembling Infrastructure Market Analysis Productplan/div Raw Material Assembling Distribution Branding Promotion Direct Sales Direct Sales Channel Sales Customer Service Warranty Support Location Customer Retention Supply Chain
- 7. Basic Operational Strategy Pressshop Paint shop Final Assembly Testing Refrigerator – Manufacturing Process:
- 8. Basic Operational Strategy CorporateStrategy Business Strategy Functional Strategy
- 9. Marketing Strategy: • Productmarketing concept • Give advertisement in News paper on weekend • participate in more exhibitions • Introduction at least 4 new model of refrigerator in a year • Focus on quality Branding Strategy : • Brand Visibility by sponsored in Events • Convey any good message by Logo Networking Strategy: • Give Best after sales service • Take the Reviews from customers via Email and phone Growth Strategy: • Societal Marketing • Capture Emerging Markets and High-volume segments • Expansion of B to B Business • Launch New technology STRATEGY Segmentation • Demographic Occupation- Service and Business. • Geographic Noida Delhi Targeting Upper class Segment and middle class Segment People who are More concern on life style product . Positioning Innovative Features Touch Panel Refrigerator with microwave oven
- 10. Factor Related toLocation Location (Delhi) Land Cost/Rental Charge Availability of Raw Material Proximity of market Labour Availability Transport - ation Facility Power Availability Export processing Zone Demographic & Pschographic Factors. • Space-land, building and building services; • Fire protection; • Handling equipment including maintenance; • Staff; • Information management systems.
- 11. Components Functional Parts : Partname Price Compressor Rs 4000 Over load Protector(OLP) Rs 350 Thermo State Rs 450 Touch temp. Panel Rs 900 Freezer fan Motor Rs1000 Thermal Bi Metel Rs 650 Heater Rs 750 Temperature Sensor Rs 250 Timer Rs 800 Single Door (215 ltr) Double Door (292 ltr) Body Part: •Door •chillers •Shelves •Drain Pan •Ice Maker Microwave oven Parts (20 ltr) Price Magnetron RS 900 PCV Rs 1260 H.T. Transformer Rs 900 Magnetron Rs 880 H.T. Capacitor Rs 90 Hand motor Rs 250 Body Rs 1100.
- 12. Single Door Price: Refrigerator Parts price Rs 9200 Microwave oven Parts price Rs 5380 Assembly labour charges Rs 1000 Others Rs 1000 TOTAL Rs 16580 Double Door Price : Refrigerator Parts price Rs 14150 Microwave oven Parts price Rs 5380 Assembly labour charges Rs 1200 Others Rs 1200 Total Rs 21930 Pricing Spend on Marketing - Rs. 5,00,000 / Month
- 13. Plant Rent -20 Rs Sq feet Total Plant area 11200 sq feet Total rent Rs 224000 Marketing person – 20,000/month + Incentives Service person - 10,000 Others charges 20,000 One month production - 1 day refrigerator Assembly – 3 by one labour So 3 labour work = 9 refrigerator (Single door - 5 , Double Door - 4 ) Total refrigerator in a month = 25 days * 5 Single door = 125 Refrigerator 25 days * 4 Double door = 100 Refrigerator One month spend for single door = Rs 1658000 double door = Rs 2741250 Marketing spend for one month = Rs 5,00,000 Rent for one month = Rs 2,24,000 Others Expenses = Rs 1,00,000 Extra Expenses Increase one refrigerator cost = 3000 Single Door Refrigerator Price = Rs 19,580 Selling price to retailers = Rs 21,500 + Tax Selling price to End Customer = Rs 24,999 + Tax Profit in one month = 1920 * 100 = Rs 1,92,000 Double Door Cost = Rs 24930 Selling price to Retailers = Rs 26,990 + Tax Selling price to End user customer = Rs 29,999+ Tax Profit in One month = 2060 * 125 = Rs 2,57,500 Total Money we need = 52,23,250 or Approx 53,00,000 Total Profit in a month = Rs 4,49,500
- 14. Plant Layout Office Raw Material /Components Assembly Line Performance testing Lab Warehouse Rawmaterial Testing 140 Ft 80 Ft
- 15. Distribution Strategy Manufacturing Unit Distributor E-commerce SmallRetailers Retail Chains Eg. NEXT Warehouse •Centralized Pooled System: Initial Distribution Strategy: Direct sell to retailers in Noida, Delhi,Gurgaon After 2 year Distribution Strategy: Manufacturing Unit . Warehouse. Retailers. Designing Infrastructure: • Internal Allocation Decision . • Increase in Multi Echelon Networks (locating Central warehouse & Downstream Customer facing Locations.) • Designing Interior Layouts • Order Line Distribution. ( Lines per order distribution- • Order Mix distribution (handling unit distribution & the order increment distribution.)
- 16. Core Competency Order qualifiersof the business: • Evaporator • Expansion valve • Condenser • Compressor • Refrigerant • Heat-exchanging pipes • Door • Icemaker Value added competencies / Order winners: • Refrigerator with Microwave • Refrigerator with Touch temperature control panel • Vegetable Shelf at the middle, not at the bottom
- 17. Point of Differentiation (POD): • No. and type of doors . • Crushed ice and water dispenser. • Quick chilling zones . • Multiple temperature zones . • Adjustable racks and shelves . • Multiple use compartments . • Refrigerant – CFC free Vs CFC . • Energy efficient compressor . • Freezer space vis-a-vis refrigeration space .
- 18. •Let It RunDry. •Sell Shares. •Liquidate •Go Public •Merge •Be Acquired •Sell . EXIT STRATEGY MERGER& ACQUISI- TION INITIAL PUBLIC OFFERING (IPO) CASH- OUT SELL STAKE CASH – COW (Working on Annuity) LiQUIDATI ON & CLOSE .
- 19.
Editor's Notes
- #2 ( ) represent Roll no. of individuals .
- #3 http://en.wikipedia.org/wiki/Refrigerator
- #4 http://www.currentweek.com/top-refrigerator-brands-in-india-2013-growth-market-share-of-top-companies/
- #5 http://www.productivity.in/knowledgebase/DIPP%20Sponosored%20Studies/1.%20Light%20Electrical%20Industry%20in%20India/1.Main%20Report.pdf
- #7 Group Designed .
- #8 7
- #9 Via source: Chapter 1 Basic Strategy Concepts copyright-Jones & Bartlett Publishers ,LCC .
- #10 Via source: Chapter 1 Basic Strategy Concepts copyright-Jones & Bartlett Publishers ,LCC & Other internet different sites contents.
- #11 Via PDf File Warehousing & Inventory Management Copyright with CII Institute of logistics ,Chennai (www.ciilogistics.com)
- #12 http://www.repairingwala.com/super/ ( Ask the price on Call )
- #13 Via Contact : Ashish Baranwal – 9650433339 ( linked To site B-B Model)
- #14 Via Contact : Ashish Baranwal – 9650433339 ( linked To site B-B Model)
- #15 Group Designed & Framed.
- #16 Via source : CII Institute of Logistics, Chennai (www.ciilogistics.com) & Edward Frazelle, World class warehousing.
- #17 http://www.ehow.com/list_7204329_main-working-parts-refrigerator_.html
- #19 18