Documente Academic
Documente Profesional
Documente Cultură
Presented By:
Ashish Bansal
NMiMS,Mumbai (India)
OUTLINE
INTERNATIONAL MARKET
OVERVIEW
The consumer electronics industry manufactures and
distributes everything from telephones, stereo components,
televisions, alarm clocks, and calculators to digital cameras,
video cameras, VCRs, and DVD, MP3, laptop PC are also now
part of the industry.
Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
RETAIL FORMAT IN CE MARKET
Sourse:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
DEMOGRAPHICS OF INDIAN
MARKET
Demographic Profile of India
Source:http://www.valuenotes.com/one-time/IndianRetailSector_11oct06.asp?ArtCd=86179&Cat=&Id
INCOME GROUPINGS AND
OWNERSHIP
(OWNERSHIP PER HOUSEHOLD)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of
Households
DEMAND OF CONSUMER
DURABLES
(FIGURES IN '000)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of
Households
PENETRATION OF CONSUMER
DURABLES (NUMBER OF HOUSEHOLDS OWNING GOODS PER '000
HOUSEHOLDS)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of
Households
RURAL DEMAND- CONSUMER
DURABLES
(% OF ALL INDIA)
Source: The Great Indian Market August 9, 2005 Results from the NCAER’s Market Information Survey of
Households
BUYING BEHAVIOR –CONSUMER
ELECTRONICS
Price is a significant influence on purchase behavior but is not
always the most important factor.
Consumer age, brand, type of product, current product
diffusion, and lifecycle stage of a product must be viewed in
concert with price to understand purchase process behavior.
For example, buyers of certain products, including game
consoles, high-definition DVD players, DVRs, and photo
printers, are more likely to consider product features and
capabilities over price.
BUYING BEHAVIOR (Contd)
Endorsed by opinion leaders – excellent reviews in
magazines, TV shows, on blogs, by word of mouth
by existing consumers, etc
High on quality – brand name of apple assures on
quality, especially sound and music clarity as well
as product durability
Associated with the ‘aspirational group’ for a
consumer – with a trend setting product like an
iPod, it has become a symbol of status and ‘cool’
and hence become a must-have to fit in with the
popular groups
TRENDS IN TERMS OF
TECHNOLOGY AND PRODUCTS –
Lower duties, cheaper technology and strong competition with
INDIA prices
low entry barriers ensure competitive
Increase in brand and product choice
Value-for-money pricing lead consumers to upgrade – from
corded to cord-less phones, from conventional CRT to flat-
screen or plasma/LCD TVs, from 15- to 17-inch computer
monitors, from 1- to 3-megapixel cameras, from monochrome
to colour phones, etc
Huge boom in mobile phone purchases with high
penetration even in rural markets (launch of value for
money, no frills, reliance phones gave an impetus to
rural penetration)
With internet penetration also increasing along with
growing number of service providers, the sales of
modems, routers and accessories has gone up.
CONSUMER BEHAVIOUR TRENDS
Shift from buying predominately during Diwali and other festive seasons to year round
purchasing
Consumers more aware of brands
Consumers more conscious of style, looks, technical specifications
More research is done on technically advanced gadgets, but there has also been an
increase in impulse buying with increasing disposable incomes, competitive prices and
wide choice.
KEY PLAYERS
STATISTICS
SWOT ANALYSIS
Strengths
1. Presence of established distribution networks in both urban and rural areas
2. Presence of well-known brands
3. In recent years, organized sector has increased its share in the market vis
a vis the unorganized sector.
Weaknesses
1. Demand is seasonal and is high during festive season
2. Demand is dependent on good monsoons
3. Poor government spending on infrastructure
4. Low purchasing power of consumers
SWOT ANALYSIS (CONT) ..
Opportunities
1. In India, the penetration level of white goods is lower as
compared to other developing countries.
2. Unexploited rural market
3. Rapid urbanization
4. Increase in income levels, i.e. increase in purchasing power of
consumers
5. Easy availability of finance
Threats
1. Higher import duties on raw materials imposed in the Budget
2007-08
2. Cheap imports from Singapore, China and other Asian countries
ENTRY BARRIERS
ENTRY BARRIERS (CONT)
To differentiate from the competitors with superior product quality, service and
unmatched shopping experience
Divisional objectives
Level II
Divisional strategies
Product/brand objectives
Level III
Brand strategies
Program objectives
Level IV
Tactics
Microsoft Office
Excel 97-2003 Worksheet
SEGMENTATION
We have identified the segmentation variables as:
Geographic
Demographic
Psychographic
Socioeconomic
CUSTOMER ANALYSIS
Who the Customers Are:
Primarily upper middle class and upper class
Analytical and quantitative in nature
Well educated
Special focus on working class, specially working
women
MARKET SEGMENTS
Segment Size Characteristics Distinctive Attribute
Globetrotters 10% Age 45-54; mostly male; Innovators, would prefer to buy
employed in senior positions niche products like Laser TV's
Road Warriors 20% Mostly in corporate Would prefer to buy high end
management and sales, property products, tech savvy
management and real estate
Corporate Wanderers 12% Travel less than Globetrotters or Would prefer to buy high end
Road Warriors; spend most time laptops and PDA’s
visiting employees within their High e-mail users
own companies
MARKET SEGMENTS
Segment Size Characteristics Distinctive Attribute
Collaborators 8% Age 25-44 Innovators
Well educated young professionals, tend to hold Frequently change gadgets
advanced degrees Not very mobile but need mobile products
Team leaders, project managers
Corridor Cruisers 15% Similar profile to Collaborators Not as likely to adopt new products as
Collaborators
Solo Practitioners 16% Like Hermits but older Typically connect to corporate network
Diverse collection of technical professionals in small when traveling so likely to buy
to medium-size companies sophisticated gadgets via exhaustive
demonstration
Expected
product
New
Augmented Brands &
product CE spare Technologi
parts & es
add ons
FIVE AREAS FOR
DIFFERENTIATION
1. Quality
2. Status and Image
3. Branding
4. Convenience and Service
5. Distribution
MARKETING STRATEGY
Phase 4: Bonding
We are a successful brand by now, so our next step would be to create a
rapport/bond with our customers so as to make them feel prized and special.
This could be done by :
Sending a small token of thanks on special days of their life like birthdays and anniversaries
Getting a CRM team in place who would go that extra mile to please and win the trust of the
customers.
MARKETING MIX
Product
We would offer best quality differentiated products laced with advanced technologies
like Laser TV’s. Would also offer bundled products
Price
Pricing would depend from product to product, therefore no fixed price range. Price
would be correlated to unique products attributes. At the same time our prices would be
competitive so as to draw walk-ins in the store and have a higher conversion rate
Place
We would have company owned exclusive retail outlets in cities of the country. We
would go preferably for standalone shops where competition levels are low. We want to
create our store as a destination outlet and not any other roadside retailer
Promotion
For the initial years we would spend on advertising and branding activities till the time
we have created a niche market for ourselves. Based on the previous year‘s sales
figures we would contribute a certain % to promotional and marketing activities so as to
reach the present year‘s sales targets
PROMOTION MIX
The promotions would be carried out in the following ways:
We would be
Leadership adopting proprietary
Culture
Processes brand development
process
Branding would be
Customer done based on 3
Competitors Relationship
Industry Dynamics
key factors:
Trends
Internal
Around Outside External
Service
Our Brand
TEN GUIDELINES FOR BUILDING
BRANDS
1. Brand Identity
Each brand should have an identity, a personality. It can be
modified for different segments.
1. Value Proposition
Each brand should have a unique value proposition.
1. Brand Position
The brand’s position should provide clear guidance to those
implementing a communications program.
1. Execution
The communications program needs to implement the
identity and position, and it should be durable as well.
1. Consistency Over Time
Product managers should have a goal of maintaining a
consistent identity, position, and execution over time.
Changes should be resisted.
TEN GUIDELINES FOR BUILDING
BRANDS (CONT.)
6. Brand System
The brands in the portfolio should be consistent and synergistic.
6. Brand Leverage
Extend brands and develop co-branding opportunities only if the
brand identity will be both used and reinforced
6. Tracking
The brand’s equity should be tracked over time, including
awareness, perceived quality, brand loyalty, and brand
associations.
6. Brand Responsibility
Someone should be in charge of the brand who will create the
identity and positions and coordinate the execution.
6. Invest
Continue investing in brands even when the financial goals are not
being met.
THE BRANDING EXERCISE
The main USP behind our branding is the service
quality level & competitive pricing
Our brand would reflect our mission & vision along
with our core competencies
Keeping in mind the target group that we are
capturing, the brand would reflect the element of
niche marketing
We would be adopting active branding
methodology, i.e. providing credibility through our
branding exercise
POSTIONING OF OUR BRAND
HIGH Our
store
Croma
Competitive Quality
HIGH VALUE PREMIUM
PERCEIVED – VALUE
ENHANCEMENT
PERCEPTION
Vijay
Sales
Next
Our Logo is