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Korean Conquest: How LG and Samsung won over the Indian Market Presented by: M. Arsalan Sheikh (#7989) Ahsan Bham (#8106) Sobia Khan (#6316)

Indian White Goods Industry (Market Segmentation)

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Page 1: 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)

Page 2: Indian White Goods Industry (Market Segmentation)

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)

Page 3: Indian White Goods Industry (Market Segmentation)
Page 4: Indian White Goods Industry (Market Segmentation)

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.

Page 5: Indian White Goods Industry (Market Segmentation)

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.

Page 6: Indian White Goods Industry (Market Segmentation)
Page 7: Indian White Goods Industry (Market Segmentation)

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.

Page 8: Indian White Goods Industry (Market Segmentation)
Page 9: Indian White Goods Industry (Market Segmentation)

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

Page 10: Indian White Goods Industry (Market Segmentation)

Market Segmentation

• Psychographic

– Life style

– Personality

– Attitude

• Behavioral

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

Page 11: Indian White Goods Industry (Market Segmentation)

Product – 1:Television

Page 12: Indian White Goods Industry (Market Segmentation)

Trends in Television

Page 13: Indian White Goods Industry (Market Segmentation)

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

Page 14: Indian White Goods Industry (Market Segmentation)

Flat TV:Market Share(2008)

Samsung22%

LG25%Sony

24%

Other30%

Page 15: Indian White Goods Industry (Market Segmentation)

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

Page 16: Indian White Goods Industry (Market Segmentation)

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

Page 17: Indian White Goods Industry (Market Segmentation)

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

Page 18: Indian White Goods Industry (Market Segmentation)

LCD TV:Market Share(2008)

Samsung37%

LG23%

Sony22%

Other19%

Page 19: Indian White Goods Industry (Market Segmentation)

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

Page 20: Indian White Goods Industry (Market Segmentation)

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

Page 21: Indian White Goods Industry (Market Segmentation)

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

Page 22: Indian White Goods Industry (Market Segmentation)

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

Page 23: Indian White Goods Industry (Market Segmentation)

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

Page 24: Indian White Goods Industry (Market Segmentation)

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

Page 25: Indian White Goods Industry (Market Segmentation)

Product – 2:Refrigerators

Page 26: Indian White Goods Industry (Market Segmentation)

Refrigerator:Market Share(2006)

Samsung16%

LG29%

Whirpool24%

Other31%

Page 27: Indian White Goods Industry (Market Segmentation)

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

Page 28: Indian White Goods Industry (Market Segmentation)

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

Page 29: Indian White Goods Industry (Market Segmentation)

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

Page 30: Indian White Goods Industry (Market Segmentation)

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

Page 31: Indian White Goods Industry (Market Segmentation)

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

Page 32: Indian White Goods Industry (Market Segmentation)

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

Page 33: Indian White Goods Industry (Market Segmentation)

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

Page 34: Indian White Goods Industry (Market Segmentation)

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

Page 35: Indian White Goods Industry (Market Segmentation)

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

Page 36: Indian White Goods Industry (Market Segmentation)

Product 3:Washing Machines

Page 37: Indian White Goods Industry (Market Segmentation)

Washing Machines:Market Share(2006)

Samsung31%

LG18%

Videocon13%

Other38%

Page 38: Indian White Goods Industry (Market Segmentation)

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.

Page 39: Indian White Goods Industry (Market Segmentation)

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

Page 40: Indian White Goods Industry (Market Segmentation)

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

Page 41: Indian White Goods Industry (Market Segmentation)

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

Page 42: Indian White Goods Industry (Market Segmentation)

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

Page 43: Indian White Goods Industry (Market Segmentation)

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

Page 44: Indian White Goods Industry (Market Segmentation)

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

Page 45: Indian White Goods Industry (Market Segmentation)

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.