Marketing Strategy for

White Appliances Microwave

Ovens

Chien Jay Ralph

Luck Mega Praew

Outline India’s Quick Fact

India Nowadays

Research Information

Market Segmentation

Marketing Mix: 4Ps

SWOT Analysis

Short-term Marketing Strategy

Long-term Marketing Strategy

India’s Quick Fact India is the seventh largest country in the world.

India's population is one billion making it the second most populous country after China.

There are generally more children in a family.

In some places girls do not attend schools and becoming housewives.

The food of India is extremely diverse, as ingredients, spices and cooking methods.

Mega

India Nowadays

Microwave is not the-first-option to cook in India compared to Europe countries or United States.

Indian people prefer cook in kitchen rather than using microwave

WHY?

Mega

India Nowadays (cont.) Indian food preparation versus Western food preparation

The taste of the dishes will be different if cooked by hand manually or by microwave.

Mega

India Nowadays (cont.)

Microwave is becoming an emerging trend in small towns in India, since the Indians already get the knowledge how to used microwave daily.

Indians like novelty, so microwaves may replace the demand of goods like second television or big refrigerators.

Mega

India Nowadays (cont.)

Today, kitchen is not for women only, men can cook as well.

Soon, microwave is taking up a key role as one of the daily use home appliances in Indian homes.

Mega

Research Information

Facts

Providing the microwave mannerNot convenient and efficient for Indian cookingA microwave oven is beginning to replace the demand for a 2nd television or bigger refrigerationThe middle-income consumer comes looking for novelty, value and competitive pricingDelhi and Mumbai recording the highest sales of microwave oven.The microwave is beginning to be seen in smaller towns.

Pitcha

Comments

Housewife bought microwave because she had money.

Men uses the microwave oven to cook routinely.

Taste of food that cooked by microwave, does not the same.

Marketers have to convince Indian consumer that microwaves are suited to Indian food

Research Information (cont.)

Pitcha

Market SegmentationGeography

Urban Suburban

Demography

College graduated or higher Age 22-40 years old Income over Rs. 30,000

Lifestyle

Modern cooking Hurry-up lifestyle

Target customers

Middle class

Pitcha

Product Strategy

Compact microwave oven: toast and grill function Medium size: 30-liter capacity Modern appearance User friendly with less-button Auto cooking Multi-stages cooking Easy-to-clean and rust free Child safety lock Burst of steam keeps food moist and evenly hot

Marketing Mix: 4Ps

Ralph

A little lower to competition, to attract the market in its introductory stage. But can be adjusted through time, depending on market response (may go low or high)*based on the flapped of Kelvinator’s Magicook *the middle-earner people can afford this, attached to the ideology of being a novelty & value item for ones kitchen

Variation of regular & smaller size to capture the ideal family size & working young professional market (man & woman living alone)*company must be careful to over production, to eliminate the issue of discounting to dispose much volumes

*Rs.12,000

Marketing Mix: 4PsPricing Strategy

Ralph

Incorporate the use of this microwave oven in a popular cooking show that’s being aired in major cities in India, if not all over the country▫ To create awareness that a certain product exist

* Have a great talent or a very popular person to be an endorser

Entice the idea in making a promotional ads that everyone can use microwave to cook good food effortless, which even can man prepare his own food▫ To make an impact that microwave can be a part of usual Indian

kitchen set-up* Ads should also be seen online especially in those kitchen related websites; Establish an after-sales customer service is also necessary

Marketing Mix: 4PsPromotion Strategy

Chien

Demonstrate microwave utilization in major malls or widely known appliance stores, capitalizing to the product’s special feature▫ To illustrate how useful it can be in daily life & that this item was

made specifically to fit the need of Indian people

A suggestive tagline can be :“Your dirty-kitchen, less the mess.” This item has it all.

Marketing Mix: 4Ps

Promotion Strategy (cont.)

Chien

Electricity shop▫ Company’s shops▫ Special electricity shops

Personal sales

Marketing Mix: 4Ps

Place Strategy

WHITE APPLIANCES

Chien

SWOT Analysis

Strength Weakness Easy-to-use

High technology

Functional; toasted, grill, heat

Long-term usage

Safety for child

Easy-to-clean

Call center service

After-sale service

Microwave maintenance cost is high. (for user)

Lacking brand awareness and image

Praewphan

SWOT Analysis (Cont.)

Opportunity Threat

Social change (The changing lifestyles and family  structure)

Huge population (1.3 billion)

Labor pool

Consumer unclear of other microwave utilizations for day-to-day cooking.

Competitor intentions

Praewphan

Short-term Marketing Strategy

To position the product in the market

A little lower pricing to the existing competitor

Highlight on the special feature of the microwave in launching a promotional ads (cooking shows, mall demos, personalized cooking class, etc.)

Advertising and communicating▫Use a known personality to endorse the product▫Movie, regular ads, internet banner

Door-to-door marketing in the most populated places in the 7 major cities, to create awareness that the product exist

Introductory Stage

Ricardo

To adjust the positioning of the product depending on the reaction of the market

if it gets a considerable positive response, the company can leveled the price with the existing competitor

the company will put add-ons or freebies, so that the market won’t be shocked with the sudden increase

promotional ads will also be lessen to cut costs in marketing

* if the market didn’t respond well, the company needs to cut much costs in other operational procedure

Short-term Marketing Strategy (cont.)

Post-Introductory Stage

Ricardo

Long-term Marketing Strategy

The same pricing cut down the freebies, expecting that the product had captured their market share

“bring your old microwave, and get the newest model with special price” campaign

Membership with points collection and additional microwaveable tableware for new purchase

Large-scale distribution on companies to have a repeat-order

Corporate Philanthropy: donate the microwave to cooking school, small-scale industries, suburban housewives, etc.

Brand awareness and Brand loyalty

Ricardo