Indian White Goods Industry (Market Segmentation)

Korean Conquest:How LG and Samsung won over the Indian Market

Presented by:M. Arsalan Sheikh (#7989)Ahsan Bham (#8106)Sobia Khan (#6316)

Consumer Profile

• The Indian consumption patterns are slowly converging with global norms.

• There has been an impressive growth of the middle class.

• Around 70 per cent of the total households in India reside in the rural areas.

• Rural areas represents a huge potential market in the world with 153 million households. (2009-2010)

Consumer Profile

• Availability of lifestyle spending options is increasing for Indian consumers and that inducing higher spends on "status acquisition".

• Indian consumer buying behavior to a large extent has a western influence.

• Foreign brands have gained wide consumer acceptance in India and they are much more open for experimentation.

Consumer Profile

• The emergence of a larger middle and upper middle classes and the substantial increase in their disposable income has changed the nature of shopping in India from need based to lifestyle dictated.

• There is also an easier acceptance of luxury and an increased willingness to experiment with the mainstream fashion, resulting in an increased willingness towards disposability and casting out from apparels to cars to mobile phones to consumer durables.

MNCs in India

• India’s emerging middle class is driving this rapid growth, and companies must target that segment if they aspire to make the country a key market.

• To win these customers, MNCs must adapt their products, prices, and manufacturing processes to households with limited budgets and local tastes.

Market Segmentation

• Demographic– Income• Global

• Aspiring

• Struggling

– Social Class• Upper-Upper

• Lower -Upper

• Upper-Middle

• Lower-Middle

• Geographic– Tier 1 Cities

– Tier 2 Cities

– Tier 3 Cities

Market Segmentation

• Psychographic

– Life style

– Personality

– Attitude

• Behavioral

– User status– Benefit sought– Brand loyalty• High risk• Trapped• Accessible• True loyal

Product – 1:Television

Trends in Television

Television:Overview• Catering to a population of more than 1 Billion

people• It is predicted that the Indian audio/video consumer

electronics industry will grow to $6.59 billion by 2011

• Rising at a Compound Annual Growth Rate (CAGR) of 10.0 per cent from $4.5 billion in 2007

• Television continues to be the mainstay of the industry with the transition occurred towards newer technologies such as LCD, LED, and PDP

Flat TV:Market Share(2008)

Samsung22%

LG25%Sony

24%

Other30%

LG: Flat TV

• LG Flatron, LG UltraSlim• Price: Rs. 7,100 – Rs. 18,500• Size: 14” – 29”• Features:– Golden Eye– Woofer enabled

• Target– Upper-Middle– Lower-Middle

Samsung: Flat TV

• Samsung Flat, Samsung UltraSlimFit

• Price: Rs. 5,500 – Rs. 19,500• Size: 14” – 29”• Features:– Easy View– Super Natural Sound

• Target:– Upper-Middle– Lower-Middle

Sony: Flat TV

• Sony WEGA• Price: Rs. 12,950 – Rs. 29,900• Size: 14” – 70”• Features:– Surround Sound– 3LCD technology– High resolution

• Target:– Upper-Middle

LCD TV:Market Share(2008)

Samsung37%

LG23%

Sony22%

Other19%

LG: LCD/LED TV

• LG Jazz LCD, LG Scarlet LCD/LED• Models: 11• Price: Rs. 18,990 – Rs. 300,000• Size: 32” – 55”• Features:

– Dynamic Contrast Ratio– Full HD– TruMotion

• Target– Lower-Upper– Upper-Middle

Samsung: LCD/LED TV

• Samsung LCD/LED TV Series X• Price: Rs. 13,900 – Rs. 350,000• Size: 26” – 70”• Features:

– Game Mode– DLNA Wireless– Flash Memory

• Target– Lower-Upper– Upper-Middle

Sony: LCD TV

• Sony Bravia LCD TV• Models: 10• Price: Rs. 16,900 – Rs. 399,900 • Size: 22” – 60”• Features:

– BRAVIA Internet Video– Wi-Fi Integrated– Edge LED– Motionflow™

• Target:– Lower-Upper– Upper-Middle

LG: Plasma TV

• LG Plasma TV• Models: 2• Price: Rs. 46,990 – Rs. 469,990• Size: 42” – 60”• Features:

– Screen Resolutions– Full HD

• Target:– Upper-Upper– Lower-Upper

Samsung: Plasma TV

• Samsung Plasma TV• Models: 2• Price: Rs. 51,000 – Rs. 330,000• Size: 42” – 63”• Features:

– Game Mode– Full HD

• Target– Upper-Upper– Lower-Upper

3D LCD TV

• Samsung 3D LCD/LED/Plasma

• LG Infina 3D LCD/LED TV– Price: Rs. 170,000 – Rs.

300,000~– Upper-Upper Class– Innovators– High brand loyals

Product – 2:Refrigerators

Refrigerator:Market Share(2006)

Samsung16%

LG29%

Whirpool24%

Other31%

Refrigerator:Overview

• Indian refrigerator market is valued at Rs. 40 Billion in the year 2007-08

• Refrigerators hold only 16% of consumer durable market that is valued at around Rs. 200-250 Billion in India

• Its market is growing at the rate of 7-8% annually

LG: Single Door

• LG Direct Cool Refrigerators• Price: Rs. 9,450 – Rs. 15,750• Capacity: 185 l – 270 l• Features:– Largest Vegetable Basket– Base Stand with Drawer

• Target:– Upper-Middle– Lower-Middle

Samsung: Single Door

• Samsung Direct Cool Refrigerators

• Price: Rs. 9,450 – Rs. 15,750• Capacity: 190 l – 230 l• Features:– Fresh Tech– Scratch resistant

• Target:– Upper-Middle– Lower-Middle

Whirlpool: Single Door

• Samsung Direct Cool Refrigerators

• Models: 2• Price: Rs. 8,850 – Rs. 12,700• Capacity: 180 l – 230 l• Features:

– Insulated chiller compartment– Transparent internals

• Target:– Lower-Middle

LG: Double Door

• LG Frost Free Refrigerators• Models: 8• Price: Rs. 14,300 – Rs. 60,900• Capacity: 240 l – 604 l• Features:

– Vitamin Plus– Anti Bacteria Gasket – Humidity Controller

• Target:– Lower-Upper– Upper-Middle

Samsung: Double Door

• Samsung Frost Free, Bottom Freezer Refrigerators

• Models: 8• Price: Rs. 14,300 – Rs. 60,900• Capacity: 375 l –570 l• Features:

– Cool Select Zone – Dispenser – Cool Curtain system

• Target:– Lower-Upper– Upper-Middle

Whirlpool: Double Door

• Samsung Frost Free, Frost Free Refrigerators

• Models: 9• Price: Rs. 11,550 – Rs. 36,925• Capacity: 375 l –570 l• Features:

– 6th Sense Fast Forward Ice system– Health Guard Door

• Target:– Upper-Middle– Lower-Middle

LG: Side-by-Side

• LG Side by Side Refrigerators• Models: 3• Price: Rs. 58,000 – Rs. 175,000• Capacity: 567 l – 721 l• Features:

– 8 Digital Sensors– Home Bar – Water & Ice Dispenser

• Target:– Upper-Upper– Lower-Upper

Samsung: Side-by-Side

• Samsung Side by Side Refrigerators• Models: 3• Price: Rs. 58,000 – Rs. 175,000• Capacity: 549 l – 756 l• Features:

– Dispenser– Display & Control– Twin Cooling

• Target:– Upper-Upper– Lower-Upper

Product 3:Washing Machines

Washing Machines:Market Share(2006)

Samsung31%

LG18%

Videocon13%

Other38%

Washing Machines:Overview

• The washing machine market is valued at Rs. 15 Billion and is growing at the rate of 22% the year 2007-08

• The fully automatic and semi-automatic sub category is growing at the rate of 40% and 17% respectively

• Washing machine sales is cyclical in nature and its sales commences with the onset of monsoon.

LG: Semi Automatic

• LG Semi Automatic Washing Machines

• Models: 3• Price: Rs. 7,190 – Rs. 10,300• Capacity: 6.2kg – 8.5kg• Features:

– Collar Cleaner– Soak– Anti rust

• Target:– Upper-Middle– Lower-Middle

Samsung: Semi Automatic

• Samsung Semi Automatic Washing Machines

• Price: Rs. 7,915 – Rs. 10,240• Capacity: 6.2kg – 8kg• Features:– Silver Nano– Double Storm pulsator

• Target:– Upper-Middle– Lower-Middle

Videocon: Semi Automatic

• Videocon Semi Automatic Washing Machines

• Price: Rs. 5,000 – Rs. 7,000• Capacity: 6kg – 7.2kg• Features:– Magic Filter– Multi pulsator

• Target:– Lower-Middle

LG: Fully Automatic

• LG Top/Front Loading Washing Machines

• Models: 3• Price: 11,240 – Rs. 38,490• Capacity: 5.5kg – 9kg• Features:

• Target:– Upper-Upper– Lower-Upper

Samsung: Fully Automatic

• Samsung Top/Front Loading Washing Machines

• Price: 10,690 – Rs. 34,190• Capacity: 5.5kg – 10.5kg• Features:

– Diamond Drum - 79% less fabric damage

– air wash– Silver Nano

• Target:– Upper-Upper– Lower-Upper

Videocon: Fully Automatic

• Videocon Top/Front Loading Washing Machines

• Models: 5• Price: 7,500 – Rs. 15,500• Capacity: 5kg – 7.8kg• Features:

– UV Light– Load imbalance sensor

• Target:– Lower-Upper– Upper-Middle

Perceptual MapHigh Quality

Low Quality

Expensive Less Expensive

LG CTV

LG LCDLG PDP

LG 3D LCD

Samsung 3D LCD

Samsung CTV

Samsung PDPSamsung LCD

Sony CTV

Sony LCD

LG Single Door Refrg.

LG Double Door Refrg.

LG Side-by-Side Door Refrg.

Samsung Single Door Refrg.

Samsung Double Door Refrg.

Samsung Side-by-Side Door Refrg.

Whirlpool Single Door Refrg.

Whirlpool Double Door Refrg.

LG Semi-Auto. Wash Mach.

Samsung Semi-Auto. Wash Mach.

Videocon Semi-Auto. Wash Mach.

LG Automatic Wash Mach.

Samsung Automatic Wash Mach.

Videocon Automatic Wash Mach.