Submitted By: Group - 4

Sameeksha Verma (204)

Yogesh kumar Agarwal (202)

Amit Binwani (195 )

Paul Chandranath( 201 )

Anshul Kothari( 231 )

Soumya Sharma( 211 )

Shiva Ganesh( 212 ).

REFRIGERATORCompany: friOven.- Glitter of Innovation.

Introduction• Common household appliance & White Good.

• Applications :Domestic,Commercial and Industrial (Volume &

Product markets)

• Growth potential

• In 2012-13 more than 7.5 Million units Sold , which accounts at

around Rs 11,200 crores.

• 46 % of urban households And 8 % of rural households in India

own a refrigerator

Prominent Player:

• Videocon International Limited

• LG Electronics India Limited

• Samsung India Electronics Limited

• Whirlpool of India Ltd

• Godrej & Boyce Mfg. Co. Ltd

• Voltas Limited

About the Sector & Prominent Player

Market Analysis

Frost free29%

Direct cool71%

Category Wise Market Share

0

5

10

15

20

25

30

LG Samsung Godrej Videocon Whirlpool Others

Market Share of Companies

28.6%

18.6% 18.6%17.6%

12%

5%

Region wise Refrigerator Sales

North29%

East13%

West24%

South34%

SWOT Analysis Of Refrigerator Sector

Strengths

1.Generation of Employment in the

rural & urban areas.

2. FDI Support by government .

3.Existence of the product provide flexibility in adapting to brand- access to

markets.

Weakness

1.Downsizing margins .

2.Need to Regularly update the technology

3.Seasonal demand & Price Variations & Margins.

Opportunity1. Growing Middle class & micro families.

2. Potential Demanding Electrical & Appliances Markets .

3. India's Market Stretch & Resources .

4.Emerging E-commerce market .

5. Increase in Nuclear Family.

Threats

1. Heavy tax levied on consumers

2. Govt. Changing policies and rules

3. Increasing competition &Copyrights.

4.Increase in raw material cost .

5. Availability of power .

6. Fluctuations in Exchange Rates.

7.Technologies & Adherence to International Compliance Laws (ISO) etc.

Swot

SWOT Analysis Of Refrigerator Company

Strengths

1. Good Quality .

2. Enhanced Features (Micro-oven,

Control Panel etc.).

3. After sales Service & reverse logistics

framework.

4. Focus on a Specific region (Consolidating positioning).

Weakness

1.Contract channel Involvement .

2. Limited Line Offering .

3. High Operating Cost (Initial Start-up).

4. Product Variety is less.

5. Brand Positioning.

Opportunity

1. Improved Technology and Widening Product portfolio .

2. E-commerce( Direct Sales & Support Service).

3. Manufacturing & Operations at large scale.

4. Redesign, Improved Brand & Quality

Image.

Threats

1. Highly Competitive Industry Dynamics(LG , Godrej, Samsung etc ) .

2. Economics Instability .

3. Stagnant Market Demand .

4. High End products & Services .

5. Financial Support & Instances of false claims eroding value & Customer trust.

6.Current product design of competitors .

Swot

Operations Strategy

Location

Assembling

Infrastructure

Market Analysis

Product plan/div

Raw Material

Assembling

Distribution

Branding Promotion

Direct SalesDirect Sales Channel Sales

Customer Service Warranty Support

Location

Customer Retention

Supply Chain

Basic Operational Strategy

Press shop Paint shop Final Assembly Testing

Refrigerator – Manufacturing Process:

Basic Operational Strategy

Corporate Strategy

Business Strategy

Functional Strategy

Marketing Strategy:

• Product marketing concept

• Give advertisement in News paper on weekend

• participate in more exhibitions

• Introduction at least 4 new model of refrigerator in a year

• Focus on quality

Branding Strategy : • Brand Visibility by sponsored in Events

• Convey any good message by Logo

Networking Strategy: • Give Best after sales service

• Take the Reviews from customers via Email and phone

Growth Strategy:

• Societal Marketing

• Capture Emerging Markets and High-volume segments

• Expansion of B to B Business

• Launch New technology

STRATEGYSegmentation

• Demographic

Occupation-

Service and Business.

• Geographic

Noida

Delhi

Targeting

Upper class Segment and

middle class Segment

People who are More

concern on life style

product .

Positioning

Innovative Features

Touch Panel

Refrigerator with

microwave oven

Factor Related to Location

Location

(Delhi)

Land Cost/Rental

Charge

Availability of Raw

Material

Proximity of market

Labour Availability

Transport -ation

Facility

Power Availability

Export processing

Zone

Demographic & Pschographic

Factors.

• Space-land, building and building

services;

• Fire protection;

• Handling equipment including

maintenance;

• Staff;

• Information management

systems.

Components

Functional Parts :

Part name Price

Compressor Rs 4000

Over load Protector(OLP) Rs 350

Thermo State Rs 450

Touch temp. Panel Rs 900

Freezer fan Motor Rs1000

Thermal Bi Metel Rs 650

Heater Rs 750

Temperature Sensor Rs 250

Timer Rs 800

Single Door (215 ltr)

Double Door (292 ltr)

Body Part:•Door

•chillers

•Shelves

•Drain Pan

•Ice Maker

Microwave oven Parts (20 ltr) Price

Magnetron RS 900

PCV Rs 1260

H.T. Transformer Rs 900

Magnetron Rs 880

H.T. Capacitor Rs 90

Hand motor Rs 250

Body Rs 1100.

Single Door Price :

Refrigerator Parts price Rs 9200

Microwave oven Parts price Rs 5380

Assembly labour charges Rs 1000

Others Rs 1000

TOTAL Rs 16580

Double Door Price : Refrigerator Parts price Rs 14150

Microwave oven Parts price Rs 5380

Assembly labour charges Rs 1200

Others Rs 1200

Total Rs 21930

Pricing

Spend on Marketing - Rs. 5,00,000 /

Month

Plant Rent - 20 Rs Sq feetTotal Plant area 11200 sq feet

Total rent Rs 224000Marketing person – 20,000/month + Incentives

Service person - 10,000Others charges 20,000

One month production - 1 day refrigerator Assembly – 3 by one labour So 3 labour work = 9 refrigerator (Single door - 5 , Double Door - 4 )

Total refrigerator in a month = 25 days * 5 Single door = 125 Refrigerator 25 days * 4 Double door = 100 Refrigerator

One month spend for single door = Rs 1658000double door = Rs 2741250

Marketing spend for one month = Rs 5,00,000Rent for one month = Rs 2,24,000Others Expenses = Rs 1,00,000

Extra Expenses Increase one refrigerator cost = 3000Single Door Refrigerator Price = Rs 19,580

Selling price to retailers = Rs 21,500 + TaxSelling price to End Customer = Rs 24,999 + Tax

Profit in one month = 1920 * 100 = Rs 1,92,000

Double Door Cost = Rs 24930 Selling price to Retailers = Rs 26,990 + TaxSelling price to End user customer = Rs 29,999+ Tax

Profit in One month = 2060 * 125 = Rs 2,57,500

Total Money we need = 52,23,250 or Approx 53,00,000 Total Profit in a month = Rs 4,49,500

Plant Layout

Office

Raw Material

/Components

Assembly Line

Performancetesting

Lab

Warehouse

Raw materialTesting

140 Ft

80 Ft

Distribution Strategy

Manufacturing Unit

Distributor

E-commerceSmall Retailers

Retail Chains

Eg. NEXT

Warehouse

•Centralized Pooled System:

Initial Distribution Strategy: Direct sell to retailers in Noida, Delhi,Gurgaon

After 2 year Distribution Strategy:

Manufacturing Unit

. Warehouse. Retailers.

Designing Infrastructure:

• Internal Allocation

Decision .

• Increase in Multi

Echelon Networks

(locating

Central warehouse &

Downstream Customer

facing Locations.)

• Designing Interior

Layouts

• Order Line

Distribution.( Lines per order

distribution-

• Order Mix distribution(handling unit

distribution & the order

increment distribution.)

Core Competency

Order qualifiers of the business:• Evaporator

• Expansion valve

• Condenser

• Compressor

• Refrigerant

• Heat-exchanging pipes

• Door

• Icemaker

Value added competencies / Order winners:• Refrigerator with Microwave

• Refrigerator with Touch temperature control panel

• Vegetable Shelf at the middle, not at the bottom

Point of Differentiation

(POD) :

• No. and type of doors .

• Crushed ice and water dispenser.

• Quick chilling zones .

• Multiple temperature zones .

• Adjustable racks and shelves .

• Multiple use compartments .

• Refrigerant – CFC free Vs CFC .

• Energy efficient compressor .

• Freezer space vis-a-vis

refrigeration space .

•Let It Run Dry.

•Sell Shares.

•Liquidate

•Go Public

•Merge

•Be Acquired

•Sell .

EXIT STRATEGY

MERGER& ACQUISI-

TIONINITIAL

PUBLICOFFERING

(IPO)

CASH-OUTSELL

STAKE CASH –COW

(Workingon

Annuity)LiQUIDATI

ON &CLOSE .

THANK YOU.