Consumer durable goods

2. UDAYBHANSINHJI REGIONALINSTITUTE
OF COOPERATIVE AGRI. BUSINESS MANAGEMENT
GANDHINAGAR,GUJARAT
(POST GRADUATE DIPLOMA IN MANAGEMENT)
BATCH 2018-2020
Topic – Consumer Durable Goods Industry
Submitted To-
Prof – Gincy Mathew
Submitted By-
Kunal Bhise-1818

3. Content
 Introduction
 Key Growth Drivers
 PESTLE Analysis Of CDG
 5 Force Porter’s Model
 OT Analysis
 Product Portfolio And Strategy Of Marketing
 Sony
 Samsung
 Whirlpool
 LG
 Videocon

4. Introduction
WHAT ARE CONSUMER DURABLES GOODS?
“Consumer durables are the products whose life expectancy is at least 3
years. These products are hard goods that cannot be used up at once.”

5. The Indian consumer durables can be segmented into three
key groups
Overview of India’s Consumer
Durables Market
White Goods Brown Goods
(Kitchen appliances)
Consumer Electronics
 Washing Machines.
 Refrigerator.
 Ac
 Speakers
.
 Audio Equipment
 Grinders
 Microwave Ovens
 Irons
 Electric Fans
.
 Cooking Range
Mobile Phones
 Televisions
 MP3 Players
 DVD Players
.
 VCD Players

6. Indian Market Size is over US$ 9.5 Billion
India has been ranked fourth in consumer electronics
Strong domestic economy and growing high-income
population
Urban consumer durables market growing at almost
10 %p.a., and the rural durables market growing at
25% p.a.
Huge domestic market and growing
Economic outlook : 8.5% growth in 2019.
Consumer Durable Industry In India

7. Rise in disposable income
Increased affordability of products
Increasing share of organised retail
Availability of easy financing schemes
Entry of heavy weight retail players is
increasing the competition
Key Growth Drivers

8. Political Economical Sociological Technological Legal Environment
Strong
Hue
Total Profit CSR
Activities
Information
Technology
Governme
nt Data
Indian Stock
Market
(Nifty)
Investment Consumption
Pattern
Environment
al Friendly
Approach
Softwares Economic
Prosperity
Environment
Political Geographical
Mix
Big Retailer Artificial
Intelligence
Fdi Commoditiza
tion
Extra Price
New
Organized
Shops.
Banking
Facilities
PESTLE Analysis of CDG

9. 5 Force Porter’s Model For Consumer
Durable Goods Industry Analyasis

10. 1. Potential Of New Entry
 Threat from new entrant- LOW
 The industryis highlycapitalintensive as new
manufacturers will require to setup their plants.
 Major players have developed brand equity so it is
difficult to position the new brand in the market.
 Brandloyaltyis moderate so the threat of
new entrants is low.
 Make in India policy

11. 2. Buyers
 Bargaining power of customer- HIGH
 Use of Internet to get all the information enables
customers to be powerful.
 Within the consumer durables industry where switching
cost are rather negligible and competing on price alone
is no longer a key to success brand recognition and
innovation helps to attract first-time customers.
 Online shopping has increased the bargaining power of
customers.

12. 3. Substitute
Threat from the substitute product- HIGH
Technology advancement
Buyers have huge propensity to substitute.

13. 4. Supplier
Bargaining power of supplier- LOW
Product differentiation is very low
sector.
By changing the input, firms cannot drastically
differentiate on price.

14. 5. Competitive Rivalry
Competitive rivalry within the industry- HIGH
Continuous innovation leads to intense rivalry
Homogeneity in product and low switching
cost

15. OPPORTUNITIES -
1. Out of all major countries in terms of penetration of recent
retailing formats India is least saturated economy.
2. Major global durable goods players one emerging across
formats and different categories of durable goods.
3. Raipur expansion facilities are available for all major durable
goods producers in India.
4. The organised sectors (i.e., shopping malls) are fast evolving.
5. Partnership is available for all durable goods brands, retailers,
franchisees, organized shops.

16. 1. F.D.I. barriers restrict other players except global players.
2. Limitation in exposure to best international practices is
found in Indian durable goods industry.
3. Infrastructure facilities are poor.
4. Retail growth is restricted in this sector.
5. Global financial crisis create most of the bad effects on this
industry.
6. Devaluation of Indian currency also creates problems.
Threats -

17. Sony
Product Price strategy Promotion Place
 Television And
Projectors
 Home Video
Audio & Home
Theater
 Games
 Cameras
 Video Camera
 It & Computing
 Robots
Skimming Strategy. Advertisement
Pictures
Advertisement
Applies Aida Model In
Its Advertisements.
Sales Promotion
Publicity Sponsorship
Direct Marketing
Retailer's Catalogue
Face To Face Selling
Internet Marketing
Intensive
Distribution Strategy
 Marketing Channel
Indirect Channel

18. Product Price Strategy Promotion Place
 Television And
Projectors
 Home Video Audio
& Home Theater
 Camera
 Washing Machine
 Refrigerator
 AC
 Mobile Sets
 Microwave Oven
Skimming And
Penetraion Strategy
 Brand Ambassador:
Aamir Khan
 Promotional Offers
Like Free Entry To The
Show Of ‘10 Ka Dum’
Organizing Contests
Like ‘Samsung Mobile
Festival’ Opening The
Samsung Fun Club For
Better Customer
Relationships.
 Free Online
Software Updates,
Tutorials And
Customer Service.
 Along With The
Launch Of New
Products, Samsung
Also Consolidated
Distribution System.
 Samsung Had State
Level Distribution
Offices And A Direct
Dealer Interface.
 The Direct Dealer
Interface Helped The
Company Get Quick
Feedback From
Dealers, And Enabled
It To Launch Products
According To
Consumer Needs.
Samsung

19. Product Price Strategy Promotion Place
 Washing
Machines.
 Refrigerator.
 AC
 Microwave
Oven.
 Water Purifiers
.
 Home Power
 Value-added
Pricing
Strategies.
 Whirlpool Has
Implemented A
Customer-centric
Strategy That
Focuses On
Making Sure Our
Products Are
Appropriate For
The Indian
Consumer.
 Emotional
Positioning In Ad
Campaign
 World wide
exclusive
store,distributer
and retailer.
E-commerce.
Whirlpool

20. Product Price Strategy Promotion Place
 Home Appliances
 Mobile
Communications
 Home
Entertainment
 Computer
Products
 Air Conditioning
 They Are Based
Keeping In Mind
The Pocket Size
Of The
Customers.
 Sources Like
Television, Radio,
Internet, Newspaper
And Magazine
 Distribution For
LG Is Through The
Local Stores.
 Like The Case Of
Reliance Outlets
For The Gadgets,
We Find That The
LG Products Are
On Display.
LG

21. Product Price strategy Promotion Place
Washing machine
 Refrigerator
 AC
 Mobile sets
 Microwave oven
1 ton and 1.5 ton
price ranges from
28539 -34190 in
rupees.
 Videocon
refrigerator price
ranges from 9490-
81000 in rupees.
(including single
door, double door) .
Through
advertisement in
news paper
 Use display
vehicles.
Videocon plaza
(retail outlet)
Digiworld (multi
brand)
Videocon