Covid-19 Update: We've taken precautionary measures to enable all staff to work away from the office. These changes have already rolled out with no interruptions, and will allow us to continue offering the same great service at your busiest time in the year.

Assessing The Refrigerator Market in India

2533 words (10 pages) Essay in Marketing

03/05/17 Marketing Reference this

Disclaimer: This work has been submitted by a student. This is not an example of the work produced by our Essay Writing Service. You can view samples of our professional work here.

Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UK Essays.

The refrigerator market of the country is having a total share of 42.6% all over across the electronic items present in the country and is growing a pace rate of 6% half yearly. The refrigerator market has more than 100 players present.

LG REFRIGERATORS:-

LG, one of the famous brands in India and all across the globe was founded in 1958 in Korea and was known as “LUCKY GOLD STAR” before it changed its name to “Life’s Good” .

The brand is famous for making cell phones since 1965 and televisions since 1977. It has more than twenty thousand outlets all across the globe and has 15000 outlets in a single country.

The company started exporting in 1978 and entered India in the year 1999.It captured the market in 2001 with its first product- REFRIGIRATORS. The main objective of the company to enter the Indian market was to capture the Indian audience. They were targeting the middle class who need refrigerators in their homes and could not pay a premium price on electronic items like fridges. Hence, LG came up with new kind of technology in refrigerators at a cheap price in 2002, targeting the middle class Indian audience. To do so, it collaborated with various companies like Philips, Comrene etc. who were already the existing players in the Indian market. It established itself in the Indian market with its low price range of refrigerators.

LG’s Refrigerator Product range in India

LG has refrigerators in India range from 295 litres to 795 litres with a price point ranging from INR 20,000 to INR 2, 25,000. (http://www.lg.com/in/about-lg/corporate-information/overview/history.jsp)

The company also has various models like side by side door fridges, double door fridges, single door fridges etc. This was done to look into the minds of the consumers and sell the refrigerators according to the need of the consumer also to see how much the consumer is willing to pay and what is the most hot spot selling product out the refrigerators range present in the market to compete with the brands present in the market.

(http://www.indiahousing.com/lg-refrigerators.html)

Sale comparison of L.G and Samsung:-

The comparison of L.G sales with the other brands present in the market the above graph shows the sales of L.G and the other one the sales of competitor brand Samsung present in India.

Target market Segment:-

Segmentation:-

Segmentation is essentially the identification of subsets of buyers in the market that share similar needs and behaviour of the product present n the market.

(http://marketingteacher.com/lesson-store/lesson-segmentation.html)

The market segmentation of the L.G refrigerators was done according to the people all across the India according to the demographic, physiographic, the behavioural and the geographic segmentation of the country.

Looking into the segmentation:-

Demographic:-

Income:-

The income of the consumer depends on how much the consumer can spend on the product shown to him and how much is his capability to spend up on the product.

Occupation:-

The occupation of the consumer tells how much the consumer earns and how much is he capable of spending on the product of the company and what is the capability of the consumer to buy the product or the commodity shown to him.

Geographic:-

Tier 1 cities:-

The company looks into metro cities in which people are life style conscious and are having high standard of living.

Tier 2 cities:-

The company a looks into the cites in which people living are middle class and pay less for the refrigerators but need a refrigerator in their homes like suburbs.

Physiographic:-

Life style:-

The company targets people who are life style oriented that is the people who want to do or want a high end life style in their life and want relax and high quality and premium quality products in their homes and kitchens.

Personality:-

The personality of the company product is premium and middle class also so it targets people ranging from low to middle to high premium end people so as to look into the all kind of markets and cover the overall market of the country or the refrigerator market.

Behavioural:-

Value:-

The value of the product depends n the consumer what the consumer thinks about the product and how much the consumer is interested in the product.

Benefit sought:-

The benefit of the product depends on the usage and the selling of the product in the market and how much the consumer s buying the product from the market.

The company basically targets the audience that are lower to middle and also the high end people basic target of the company is the high end people and in the refrigerator market the companies target is middle class people and the lower middle class people but it also has premium products for high end people who live a good and a luxurious life style in the personal lives.

The company also targets people who are health conscious and also the people

Who are need safety and precautions in their food from germs and other dust particles so it comes up in the middle class and in the high end people?

(http://www.slideshare.net/rajsinghprofessional/lg-marcom-plan-288132)

Competition in the Market:-

Indian Market Share (2009-2010)

Figure 1: Market Share

Global market share (2009-2010)

(uire/images/eX/esq-1-piechart-0310-lg.jpg&imgrefurl=http://www.esquire.com/features/republican-party-survey-0310&usg)

The market share of L.G refrigerators is 61% in the all over market in the world and if we talk about the Indian market it is 36% which is a big market share right now.

(http://www.google.co.in/images?um=1&hl=en&biw=1280&bih=709&tbs=isch:1&sa=1&q=market+share+of+lg+in+pie+chart&aq)

COMPETITOR BRANDS:-

The company L.G being the biggest and the eminent player in the market is having some major market players or competitors and they are:-

Samsung:- (http://www.google.co.in/images?um=1&hl=en&biw=1280&bih=709&tbs=isch:1&sa=1&q=samsung+refrigirators&aq=f&aqi=&aql=&oq=&gs_rfai=)

Born in 1996, Samsung, with 22% global market share has the second largest market share in the refrigeration industry. It enjoys 33% market share all over India in its appliances and in its refrigeration. The best selling model being frost free refrigerator its one of the best quality and best selling product in the market.

Target Market Segment: The marketing strategy of Samsung refrigerators was to come up with a fresh product targeting the middle class audience and also targeting the lower middle class who do not have refrigerators in their homes or flats etc. With building a team called Samsung India refrigeration team it targets and sells its products in the market.

Whirlpool:- (http://www.google.co.in/images?um=1&hl=en&biw=1280&bih=709&tbs=isch:1&sa=1&q=whirlpool+refrigirators&aq=f&aqi=&aql=&oq=&gs_rfai=)

The third most eminent player in the market and being the best player in the market and having the third largest share in the Indian and the world with 12% all over the world and in India 31% .

Target Market Segment: It follows full market coverage with its frost free and de-frost fridges in the market. It target premium segment conscious about their life style and also the middle class and the lower middle class consumers present in the market. Whirlpool a German based company was born in 1997.

Godrej:- (http://www.google.co.in/images?um=1&hl=en&biw=1280&bih=709&tbs=isch:1&sa=1&q=godrej+refrigirators&aq=f&aqi=&aql=&oq=&gs_rfai=)

Being the fourth largest player in the Indian market, it has 12% market share in India and 4% across the globe.

Target Market Segment: Godrej targets the middle class and the lower middle class people. It drives its products in the way that the target consumer buys its products and also the consumers gets what is needed by him. The company is an Indian based company and was born on 1998.

(http://www.slideshare.net/rajsinghprofessional/lg-marcom-plan-288132)

Intangible and Tangible Brand features of LG:-

There are various brand features which L.G refrigerator has due to which the consumer comes and buys the product. There are few tangible features and few intangible features that is few can be seen and felt and while just can be observed for good promotion and facilities people buy fridges of L.G company and those are:-

Tangible features:-

Green icon door cooling technology

External Micom

Child lock

Convertible vegetable box

Opti fresh

Vitamin plus

One touch twist ice tray

Catechin deotorizer

Cell fresh crisper

Humanity controller

Anti bacteria door gasket

Freezer lamp

VCM DOOR FINISH

These are few tangible features which are being given in the refrigerator of the company for attraction and showing how much the company is concerned about the health and wealth of the consumer.

(http://marketingteacher.com/lesson-store/lesson-segmentation.html)

Intangible features:-( http://marketingteacher.com/lesson-store/lesson-segmentation.html)

The service which the company gives and the company beholds is the best part for the consumers quick and fast services and best deals provided on the product or the refrigerator bought y the consumer

The 123 service package in which the service of the product is done on 1st call, 2nd reaching in 2 hours, 3rd giving back after service in 3 days the product or the refrigerator, and also giving discounts on the products bought.

(http://www.scribd.com/doc/40329763/Market-Report-on-Lg-Refrigerator)

(http://www.google.co.in/images?um=1&hl=en&biw=1280&bih=709&tbs=isch:1&sa=1&q=1+2+3&aq=f&aqi=g10&aql=&oq=&gs_rfai=)

BRAND IMAGE:-

The company L.G works on the brand image of latest technologies and latest life style and the brand focuses on people who are developing or are already developed like the high class or high end people are people who are developing like the middle class people who are booming more towards new home appliances and technologies and also it brands towards the health conscious people who are more concerned about their health.

We look in to the positioning of the company the company says that it is smart, highly technological electronic brand, enhancing life skills, increasing and improving life style, self expressive like said “LIFE IS GOOD” AND ALSO SELF CONFIDENT BRAND

Taking about the brand personality of the L.G company friendly, easy to use, good in style, good in structure, new innovative etc.

(http://www.scribd.com/doc/202017/LG-Brand-Guidelines)

((http://www.slideshare.net/rajsinghprofessional/lg-marcom-plan-288132)

Externalization:-

Physical facet:-

The company physically is strong and holds a big major chunk of share in the market and also it deals with the best kind of quality products and best kind of work and products to be given to the consumer.

Relationship

The personality of the product is that explains it is a new technological and an innovative product than the competitors present in the market like the main competitor in the market is Samsung so it is better and best that its competitors.

Reflection:-

The reflection that the company gives is care and good healthy and new life style products to the consumers for high end and good living in the world of new innovations.

Internalization:-

Personality:-

The personality of the product is that explains it is a new technological and a innovative product than the competitors present in the market like the main competitor in the market is Samsung so it is better and best that its competitors

Culture:-

The culture of the company s very aggressive and smooth going concern rates on one kind of consumer at one time like if it’s making life style good s so it would only concentrate aggressively on the high end consumers.

Self image:-

ƒ  The companies self image in the market is for good and high innovative and good health conscious and good products with quality assurance and best service provided towards the consumer.

SAMSUNG BRAND PRISM:-

GODREJ BRAND PRISM:-

(http://www.google.co.in/imgres?imgurl=http://www.emeraldinsight.com/content_images/fig/0960160101002.png&imgrefurl)

PERCEPTUAL MAP:-

Perceptual map can be said as the map which is linked with the consumer and tells everything what the consumer feels and thinks about the product he or she is willing to buy. In this case we take the case of the refrigerators what the consumer thinks while buying a refrigerator. Weather the emotions of the consumer are attached or whether it is the value which matters the most to the consumer. Taking various brands in it we explain the perceptual map shown below.

Dimensions used for making the perceptual map are:

Value: It defines the price of the product

Emotional Pull: it defines how much the consumer is emotionally attached to the consumer.

The map tells us that how high is the company on value and emotions of the consumer and how low are the other companies low emotionally and valuably towards the consumer.

Talking about the LG, the brand is high on the price as well as emotionally also high as the consumer is willing to buy the product because it is safe and the product is health conscious and also the more and more consumers weather the middle class or the high end class both are willing to buy the product .

Talking about the positioning in the market of the brand has the highest market share and also has the best and the most highly targeted consumers in its refrigeration market with the most selling and high quality refrigerators present in the market targeting all kind of audiences and all kind of people present in the market taking over the market share of whirlpool and gorderej in India and all across the globe.

(http://www.thehindubusinessline.com/2003/03/06/stories/2003030602290600.htm)

Get Help With Your Essay

If you need assistance with writing your essay, our professional essay writing service is here to help!

Find out more

Cite This Work

To export a reference to this article please select a referencing style below:

Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.
Reference Copied to Clipboard.

Related Services

View all

DMCA / Removal Request

If you are the original writer of this essay and no longer wish to have the essay published on the UK Essays website then please: