Business and market analysis of Whirlpool company
Refrigerator is truly an integral part of every home. The choice of refrigerator brand and model you want to buy will depend on the number of people in the house as well as your income and their space available in the income. Mainly refrigerators are two types’ direct cool, frost control and frost free refrigerators.
Whirlpool develops the strategy of market segmentation ,target market ,distribution and manufacturing.
Whirlpool is the first manufactured product of home home appliances
The market share of whirlpool is above 25%
Whirlpool understood Indian market very closely,and launching products through customer needs. Its mainly basis on the technology,price,services.
When the customer needs and wants of the products are launched they are feasible to every customer.
Whirlpool has mainly 3 segments.
It is the basic segment. It covers all the features except for modular shelves, all of them are single metallic bodys.in this segment ranges from 180 to 230 litres.These type of refrigerators are small refrigerators and small shops.In this canot be stored in large capacity.The price varies from 8850 to 12700.In this master price is the base product with unique health guard,thick door design and jumbo bottle neck.In this genius xl premier is the higest product with unique health guard,thick door design,jumbo bottle rack,chill max and modular shelves features.
This segment is the premier segment. It has more feature values compared to the direct cool. This type of refrigerators are technically advanced and are aimed to reduce frost information in the refrigerator.Its ranging capacity is 180 to 310 litres.
In this price varies from 11550 to 17745.Its has mainly the 6th sense frost control technology and which is the additional point of this segment.
This segment is the elite segment. It is the most profitable segment in the whirlpool. In segment there are 21 models.Compared to other the price and capacity are more.
Its ranges from 220 to 450 litres.In this segment it has not introduced in the low capacity refrigerators.For elite models it has created the higher segment.Mainly the elite models are used for super markets and malls.The price varies from 13775 to 36200It has mainly introduced the 6th sense tower cooling technology for forst free refrigerators.for end products its also introduced 30 litre crisper.
The market that is valued for refrigerator is 4000 crores.In the consumer durable market then th market share is 16%.In market is growing annually at 7-8 %.
For the direct cool segments the consumer requirements are low capacity.
i.e house holds,small shop keepers, bachelors.
For the frost control segment is the average amount of income and is mainly targeted in the middle class.
For the frost free segment mainly targeted on the high income and also large storage capacity.
In terms of income it can be classified for 3 differrent strategies.In the whirlpool mainly advertising on the target of housewives.hence the primarily target for whirlpool is housewives.
Mainly its has trying to itself as a homemaker.Recently the whirlpool tag line for advertisements was your magic is home making.in earlier it was you & whirlpool.For advertising and promotion it spends 70 crores.Ajay and kajol are brand ambassadors of whirlpool. A relationship basedon equality,love and romance.
Success mantra of Whirlpool:
Know a customer
Be a customer
Serve a customer
The major competitors with whirlpool in the refrigerator segment are
The industrial structure mainly comes in the category of oligopoly market.
But the 3 of them having the major share.
The identity of brand is very crucial in this industry. The company with a strong brand can be definitely success in this industry.
Threat is very low.
Requires huge amount for advertising.
In india it was established in the year 1997. Special feature to preserve nutrition with green ion door cooling refrigerators.
LG refrigerators has been rated 5 star by Bureau of Energy Efficiency (BEE).
Recently they have launched the first TV-Refrigerator in India
There are 9 models available in this segment.
Middle and middle upper class people.
The price range varies between Rs.14450 to Rs.39880
4 /5 STAR Rating (BEE)
Works without Stablizer
PROMOTION / MARKETING STRATEGY
LG's marketing was heavily dependent on advertising.
Abhishek Bachchan, the brand ambassador for LG promotes the LG “INTELLO COOL” range of refrigerators.
LG India- tripled the number of its retail & distributor outlets in rural areas from 2004 to 2006
For this year expecting to expand refrigerator channel by 25%
The market share for last year is 15.8 and it is extracted to 18 percent for this year.
Strategy is value driven, not price driven.
Expecting leadership on the basis of top quality, leading edge technology, priced competitively and backed by strong after sales service
Samsung is mainly the technology leader and they mainly competiitn with others is technology.
Twin Cooling S ystem - uses two independent evaporators that provide optimum level of cooling to the refrigeration compartment and the freezer.
Mainly it is around cooling action.
Silver Fresh Technology- The Silver ions inside the refrigerator, achieve 99.9% removal of bacteria and create the perfect environment to keep food super fresh.
Side By Side
Target : Middle Class
No. of models : 6.
Available both in 180/200 ltrs. capacity.
Low price due to high competition
Rs.8,700 to Rs.10,900
Frost Free Refrigerators
Category Frost Free (Less Than 350 L) Frost Free (Greater Than 350 L) Frost Free (Bottom Freezer ) No. of Models 6 6 3 Price Rs.13,000-Rs.22,000 Rs.29,000-Rs.56,000 Rs.38,000 & Rs.56,000
Side By Side
Target: Premium Product Targeted
at Niche Market.
No. of Models: 13
Capacity: 545 Ltrs to 880 Ltrs
Price: Rs. 56,000 – Rs. 1,41,000
After Sales Service
They started the own service centres and helpline numbers.
‘ 10 second to loose a customer, 10 years to gain them back’ forms the guiding principle for Samsung Service Team as it strives to satisfy the growing expectations of Indian customers.
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