1. Marketing Microwave Ovens to a New Market Segment
Case study # 4
Marketing Microwave Ovens to a New Market Segment

2. Patlada Sae-Ching (Nan) Nuntanut Sae-Ching (Vee)
Group 6 Members
Ha Phuoc Vu
M997Z244
Nguyen Tran Thao Bien
M997Z213
Bui Duy Duc
M997Z202
Patlada Sae-Ching (Nan)
M997Z240
Nuntanut Sae-Ching (Vee)
M997Z236
Thai Luong Thu
M997Z221

3. Outline Overview SWOT analysis Strategies Conclusion Situation
Market value
White Appliances - Introduction
SWOT analysis
Strategies
Target Market Strategy
4P’s in marketing
Short-term and long-term strategies
Conclusion

4. OVERVIEW
Situation
Market value
White Appliances - Introduction

5. Situation
Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer durables market, accounting for no less than 90% of the market. Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, and Aiwa came into the picture. Today, these players control the major share of the consumer durables market.

6. Situation
Today, these players control the major share of the consumer durables market. Consumer durables market is expected to grow at 10-15% in It is growing very fast because of rise in living standards, easy access to consumer finance, and wide range of choice, as many foreign players were entering in the market with the increase in income levels, easy availability of finance, increase in consumer awareness, and introduction of new models, the demand for consumer durables has increased significantly. Products like washing machines, air conditioners, microwave ovens, color televisions (C-TV) were no longer considered luxury items.

7. Growth

8. MARKET VALUE
The Indian consumer electronics market grew by 7.6% in 2006 to reach a value of$3.8 billion. The compound annual growth rate of the market in the period was 11.1%.

9. Table of India Consumer Electronics Market Value

10. White Appliances - Introduction
We are White Appliances - an international company that manufactures and markets appliances globally.
The company has a line of microwave ovens. We market several high-end models in India which are manufactured in US.

11. White Appliances - Introduction
We believe that through technology innovation today, we will find the solutions we need to address the challenges of tomorrow. From technology comes opportunity for businesses to grow.
It’s our aim to develop innovative technologies and efficient processes that create new markets, enrich people’s lives and continue to make White Appliances a trusted brand.

12. 1 1

13. STRENGTHS High technology Product is simple to use
Microwave oven is a convenient and efficient way to cook
Use for a longtime

14. WEAKNESSES High cost expand for production
The presence in the Indian market is limited at this time

15. WEAKNESSES (Cont’d) High cost for maintaining the microwave(for user)
Not common in use in India (strange tools)

16. OPPORTUNITES
Microwave companies seeks a lot of opportunities that utilize their strengths of innovation changing customer’s demands and flavors has helped Microwave companies launch it product at a mass scale. Today most customers are looking for new and updated product is that provide maximum benefits at the same time. 1 1

17. OPPORTUNITES
So Microwave companies see an opportunity of its product’s being accepted at a considerable pace. The second opportunity Microwave companies is the huge population of the targeted country so the consumer base requiring such appliance is going to be large. 1 1

18. OPPORTUNITES
Moreover the countries economic condition and the industrial atmosphere is quite healthy which also enhances the opportunity for the company.
Changing customer needs / tastes
Huge population (1.3billion)
Economic condition and good industrial atmosphere. 1 1

19. THREATS
Microwave companies has threat from its competitors. More and more companies entering into the microwave oven field is increasing the competition level. Microware companies is facing such competition which has added in its threat. 1 1

20. THREATS
Moreover one more threat Microwave companies is facing is the Socio Cultural Trends in the society.
1. Competitor
2. Socio Cultural Trends 1 1

21. Competitors
White Appliances competes directly with several international companies like Samsung, Whirlpool and LG Electronics India
Microwave brands available in India
LG                                 Godreg
Samsung                        IFB
Whirlpool                       Onida
Sanyo                            Haier
Electrolux                       Videocon

22. Strategies Target Market Strategy 4P’s in marketing
Short term & Long term strategy

23. Target Market Strategy
Microwave companies utilizes the latest high end technology to attract the customers. The women in the age group who are looking for latest updated technology in kitchen appliances constitutes the main market target. 1 1

24. Target Market Strategy
To reach them feature are added that are catching to these group of people. Although women are the main target group, Sony does not underestimate men either in their importance as they can also influence the housewives decisions and can also have interest in cooking. 1 1

25. Product Tailoring product to suit with Indian market Ease of use
Size match with large Indian vessels
Special cooking function for Indian food
Ease of use
The whole family can use it
After sales service and call centers
Saving energy product

26. Product Stylish design
Using nutrition technology to retain vitamins and food’s vital nutrients
Offer several models to fit with each Indian family (compact, medium capacity, large capacity)
Health wave system for health benefits

27. Price Wide range of price
High-end (premium)
Medium price for middle income consumer
Low price for rural consumer
Manufacture product in India and reduce import content to cut cost

28. Place
Focus on the top 16 Indian cities to promote through new retailing activities.
Urban Market
Electronic specialty store, Malls and
Department Stores
Give a brand shelf space
Rural Market
Direct selling

29. Promotion Discount at festival time Product placement
Advertising in cuisine books, magazines and TV programs
Organizing Indian food cooking classes by using our product
Offering Indian menu recipe books to customer
Installment Sale
Trade show booth to spread brand awareness

30. Short term & Long term strategy
Short term strategy
Penetrate rural market
Maintain urban market

31. Short term & Long term strategy (cont’d)
Continue to launch Microwave Oven with new features
Introduce new innovation products

32. Conclusion The change in consumer habits create new opportunities
Pricing policy is one of the important factors
The development of technology is the key to success for the
market seems difficult
Style, size and product enhancements designed to suit each
market segment

33. Conclusion The change in consumer habits create new opportunities
The new recipes has changed somewhat the habit of using
microwave Indians.
“To change the way you look, just change the way you cook”
was a recent tagline by one of the companies
What really drives the growth of this product will be a change
in eating habits

34. Conclusion Pricing policy is one of the important factors
There is some difference of opinion on the righ price for the
ovens.
Microwave companies face a chicken-and-egg question on
price and sales.

35. Conclusion Pricing policy is one of the important factors (cont’d)
Prices will not come down easily until volumes go up, while
volumes depend on prices
The price of the microwave is different. Each company has
a different pricing policy. Additionally, the support function is also
one of the factors which decide the price

36. Conclusion The development of technology is the key to success for the
market seems difficult
Though the concept of microwave ovens is western, the fact
Is that microwave technology to day has advanced to a level
wherein even complex cooking like Indian cooking is very much
possible.

37. Conclusion The development of technology is the key to success for the
market seems difficult (cont’d)
Microwave is now described as a multi-function device rather
than a warming device (a substitute to the Oven Toaster
and Grill).

38. Conclusion Style, size and product enhancements designed to suit each
market segment

39. Q & A