With the help of the below mentioned data we can understand the penetration and reach of a consumer durable like firefighter in comparison to a product like Television Set, car, bike or Grinder. This will help us in having a deeper knowledge of the placement of a retriever in the minds of the consumer in comparison to other consumer durables. With the analysis of the below shown chart we understand that refrigerators have been able to penetrate only 46% of the urban market on the other hand it has barely scratched the rural market by just reaching a meager 8%.
Overall most of the consumer durable shown below have a decent reach in the rural markets except for car and retractors, this helps us understand that there is an untapped market available in the rural areas for this specific consumer durable Ownership of consumer durables of household) Refrigerators Pressure cooker Bicycle Wrist watch Ceiling fan Mixer/Grin deer color TV Motorcycle Urban Rural PAYOFF-09 AIR/car industry market size 14,200 3.
0 | Reconditioning systems | 11,000 Commercial reiteration | 2,000 servicing I | * Approximately 69 per cent population resides in rural India, yet only sales is contributed by rural markets.
However, this sales contribution is expected to increase to 45% in near future * Rural Consumer durables markets s growing by 30 per cent currently, expected to grow by 45 per cent in IFFY 80 lacks Refrigerators sold last year and the market has grown by 12-15% (2010) Commercial Refrigeration Sector ; Growth during last 5 years: -10% ; Expected growth during medium term (3-5 years): 10-12% Looking at these figures we can see that the Domestic Refrigerator market in India is one of the fastest growing segments of the consumer durable industry and is witnessing significant growth on account of rising per capita income and improved social indicators.
The market is estimated to be worth INNER 97. 69 ban in 2010. Over 80% of the population of India does not use refrigerators. Refrigerators have been manufactured in India since sass. Till the 19805, players like Godard, Cultivator, Lankly and Volta controlled almost 90% tooth market.
Earlier, the white goods sector categorized as a luxury goods industry and was subject to oppressive taxation and licensing. The situation changed tater liberalizing of the economy in the early I egos, The Government removed all restrictions, and now there is no restriction on foreign investment, and licenses are no longer required, Post-liberalizing, a number foreign companies entered the market and many domestic players also diversified into refrigerators. PL and Evidence who already had a presence in the consumer electronics market, leveraged their strengths to enter the durables sector. In India, refrigerators have the highest aspiration’s value of all consumer durables, with the exception footlessness.
This accounts for the high growth rate of the refrigerator market Vichy has been growing at a rate of about per year, while the consumer durables industry as a whole has grown at almost 8%. The size of the refrigerator market is estimated to be 3. 5-4 million units approximately, valued at RSI. 50 ban. The domestic penetration rate Of refrigerators is about 9%. The penetration is considerably higher in urban areas, Which account for 75% Of the demand, With rural areas constituting the Other 25%. The demand is also higher in the northern and western parts of the country than in the east. A study by Schema in 2011 estimated the rural consumer durables market to grow at 40% in 2012 as a result of higher disposable income among rural consumers.
The size of the home appliance market in India is pegged at 30,000 core, with air-conditioners, refrigerators and washing canines as the largest categories, though household generation levels are in low single-digits, Current Scenario in India, Retractors have the 2nd highest aspiration’s value of all consumer durables * High growth rate of the refrigerator market, ;k Refrigerators are manufactured in two basic designs which are referred to as Direct Cool (DC) and Pros Free (+) refrigerator Goddess’s share in the refrigeration market as shown below is 18 % Critical success factors for sketchbook: Let us study the critical success factors on the basis Of the up’s Of marketing Product: Designed specifically for rural consumer
Cooling Chip Runs on low power and investors Runs on battery when there’s load shedding Color chosen on the basis of consumer interest Else of unconventional cooling technology Compared to the 200 components of a refrigerator, it has only 20 components Power consumption is comparatively less (15 to AS W against 90 – MM) It has no moving components, is almost service free Sketchbook weights only egg and is therefore easy to move around and transport The operational cost is low The average electricity bill for running the Sketchbook is only RSI 60 to RSI 70 per month Sketchbook Product Variants 0 litter Specification I Internal capacity I : 30 litter I Weight Dimension I . 1 59. Comdex. Comdex. CM I Power VI SO AC VI DC I Current | 5 amperes I Wattage | 55 watts Accessories Included One Vertical separator One Power supply unit One car cord I 43 litter Internal capacity : 43 litter I Weights 1 8. Eggs : | 59. 8 comic. Comdex. CM I power source I : VI SO Haze | 0. 3 amperes I | 62 watts One Wire shelf I Price: Sketchbook sells at a retail price of RSI. 3790 It costs around RSI 3800/- that is 35% less than the prevailing brand which is the cheapest at present Place:
Godard decided to pilot the product in 4 districts to avoid competition Kiosks have been set up in post offices (in the 3 states where sketchbook has been launched) for demonstrations Promotion: Employed girls to distribute the product and they were entitled to a commission of RSI 150 per sale. By this the company says their distribution cost was reduced by 40%. Collaboration with Indian post Godard proposed to offer a discount of RSI. 300/- to the employees of India post Postmen were chosen to market Sketchbook in rural Pane region SQ What criteria should Godard use to evaluate its strategy on Sketchbook? Should Godard invest in this business? In the previous question we have seen the impact of ups in the sketchbook business, now to understand the sweater for Chokiest let us get an insight into the marketing challenges related to the rural context.
Marketing Tool I Marketing Challenge Product Acceptance Price Affordability Place Availability I Promotion I Awareness I Acceptance (Individual Product Strategy) Godard Sketchbook was perfected based on the feedback and suggestions given by the customer, sketchbook was designed for a specific purpose and to work in specific conditions and certain demography’s. As a product it had all the specification that a rural audience was looking for. The reaction to the launch of the product at rural meets proves the level of acceptance of the product in these areas. Launching of Godard Sketchbook in Parthian Division on 03. 062011 Affordability (P racing Strategy) There was always an aspiration to buy a refrigerator, but for a family that earns 7,000 RSI per month it was a costly affair. With the strategists pricing of 3, RSI, which id 50% cheaper than the lowest costing refrigerator available in the market. Sketchbook was set to make an impact. Availability (Place Strategy)
With the help of non-conventional ways of promoting and selling the product, Godard was successful in getting the product to those who needed it. Awareness (Promotion Strategy) Sketchbook was promoted through organizations like the Indian Post and also through various No’s and Other self help groups. India Post has signed an agreement with Godard and Boyce Manufacturing to sell “Sketchbook”, through post offices, The product would be sold at nearly 3,000 post offices in the Western Region, covering Combaters, Appalachia, Tripper, Erode, Namesake, Salem, Dramatic, Shrinkage and the Inklings Districts Post Master General of Western Region. A. N.
And According to the statistical figures we have here we can understand that the refrigerator business will grow in the coming years and moreover the penetration levels tort the same industry is very low in comparison to other goods. Also the product that has been made is set to revolutionize the refrigeration industry. The product has been tested and tried at various levels; customers have been involved in design and product aspect of sketchbook, The product has been aggressively and strategically priced in such a way to target the rural market. With the following head points it would be good for Godard to go forward and invest into this business, this would turnout to be a good business in the long Sumerian with chokiest Q. 3.
Is there a threat Of quick imitation by competitors that Godard should consider? If so, how? Godard sketchbook is not a patented product; in fact the technology was used in western countries as a bear cooler during barbeques. So if any company wanted to imitate the product it would have been easy, because it is an easy and low cost product to manufacture. But the challenge would be in getting the distribution and sales network configured. Major components of Sketchbook Blown Plastic Body * Cooling Chip Computer cooling Fans * Wiring Adapter If we look at all the key components of this product they are all easy to manufacture thus we come to the understanding that it would be easy to imitate the making of Sketchbook.
Infant Imitation had been a great example of a product that is eating away sketchbooks market, even though imitation is not electric and as advanced as Chokiest, it does get the work done for some consumers. SQ What is your take on the simultaneous pursue of two parallel business model in the same cooling solution industry? Does it entail any risk for Godard? Godard has been one of the key players of the refrigeration industry, and they have done so even With the corning of foreign players. When we are looking at the business model of two sectors, let us take the conventional fridge products Which are our traditional models in the refrigeration industry and second is the new product sketchbook which was primarily designed for the rural market. To answer the question let us understand the business model for both these sectors.
Conventional fridges They are produced for urban plus aspiration’s rural consumers Bought more or sees by people who are well to do Cooling power is high, made to suit their cooling requirements Marketed through advertisements (which Increase its costs) Use traditional distribution links like distributed and dealers Area of sale is primarily cities Sketchbook Prices at 50% less of a standard fridge Cooling powers is low (suits the point of keeping the costs low) Cooling technology used, differs from the conventional method Designed specifically for first time users in the rural areas Distributed through individual distributors and Market through Gram-Saba programs Distributed and marketed through Indian Post. Thus when we study the different models of business which is related to both these streams Of refrigeration models, we can come to the conclusion that both these models are completely different and they wont affect each other. In fact both these models Will help Godard strengthen its base, both in the rural and urban markets. Thus solidifying its presence better at both fronts. Q. 5. How should Godard pursue its marketing strategy for Sketchbook? What are the implication for its brand and its overall corporate strategy?
The main prerogative of sketchbook was to keep the price of their product as owe as possible, so as to make it affordable to the customers. Hence it was not possible to do expensive marketing like television advertisement. So for the same even the distribution and promotion cost has to be kept low, Marketing and Promotion strategy for Sketchbook promotion through individual distributors to reduce distribution cost. Selected distributors should be selected in specific villages and the product should be directly delivered to the consumer’s house once the order is confirmed with the individual dealer Collaboration with Indian Post This is one of the vital steps that was taken by Godard and this proved to be the radical success factor even it came to promotion.
There was no other service which had a better reach that Indian Post in the rural areas Collaboration With No’s and Self Help Groups Self Help groups and No’s hue tremendous reach and accessibility in rural areas, it would only be fitting to make use of such gateways to reach to consumers Promoted As an Investment Fifth product is promoted as an investment that results in returns on a daily basis it would arouse the interest of the BIB Buyers, mainly Shopkeepers and small Pan shops. Promotion at Gram Saba Meets Such available avenues should be utilized to the fullest in promotion this product which is typically produced for their specific market. Summary about Godard Group Established in 1897, the Godard group has grown in India from the days of the charka to nights at the call centers. Our founder, Radishes Godard, lawyer- turned-locksmith, was a persistent inventor and a strong visionary who could see the spark in the future. His inventions, manufactured by his brother Pharaohs Godard, were the foundation of today’s Godard Empire.
One of Indian’s most trusted brand, Godard enjoys the patronage and trust of around SO million Indians every single day. Our customers mean the world to us. We are happy only venue we see a delighted customer smile. With 7 major companies with interests in real estate, r-MAC, industrial engineering, appliances, furniture, security and agric care – to name a few – our turnover crosses AS billion dollars*. You think of Godard as such an integral part of India – like the bangers or the Kurt – that you may be surprised to know that 26% Of our business is done overseas. Our presence in more than 60 countries ensures that our customers are at home vita Godard no matter ever they go.
With brands you can believe in, service excellence you can count on and the promise of brighter living for every customer, Godard knows what makes India tick today. ; Wisped As we See in the above summary that Godard is an international as well as a, well established brand. Branching its presence into various markets, fields and industries. With the launch of such a strong product like sketchbook, Godard would be able to establish its presence even in the rural markets of India Godard has by now made for itself a name in the rural market and so with newer products coming into the market; it would be easier for Godard o make an impact in the rural markets as the consumer is already familiar with the brand.
Also we need to remember sketchbook was considered as a product which would benefit consumers it wan considered to be built and developed for the benefit of the consumer; it therefore carries goodwill with it. This helps us strengthen our overall brand image and is a positive factor on the overall corporate strategy. What challenges do you envisage for Godard in penetration to various geographical markets across the country? Current Market of Sketchbook: Gujarat, Maharajah’s game; Andorra Pradesh Observing the above map we find that Godard has not really been aggressive in getting its product to all available markets. But if we look at sales it has done well in the past years. So it is only logical to moue to new geographical markets. New markets can be in both southern India as well as the states of northern India.