India's Refrigerator market estimated at Rs. 2750 Cr. is catered mainly by 10 brands. The annual capacity is estimated at around 4.15 million units is running head of demand of 1.5 millions. As there is a demand and a surplus supply, all the manufacturers are trying out for new strategies in the market. Times have changed and also the buying behaviour of the customer. Earlier it was cash and carry system. Now dealers play an important role in selling; now the systems is exchange for old “bring your old refrigerator and take a new one with many gifts”. A new company by name Electrolux has entered the market which has acquired Allwyn, Kelvinator and Voltas brand. Researchers have revealed that urban and city sales are declining and hence all manufacturers are trying to concentrate on rural markets. Electrolux strategy is customisation of market, with special attention to the Northern and Southern India markets, while Godrej the main player thinks that dealer network in rural market for sales and service will be beneficial and is trying to give more emphasis on dealer network, whereas Whirlpool has adopted the strategy of increasing the dealer network by 30%. The market shares of the major players are as follows: Godrej 30% Videocon 13% Kelvinator 12% Allwyn 10% Voltas 5% Whirlpool 27% Daewoo 1% G 1% Others 1% Questions Could the refrigerator market be segmented on geographical base planned by Electrolux? What would be the marketing mix for rural market? Would 125 L and 150 L models be an ideal choice to launch in rural market?
Customary Pricing
There are various types of pricing strategies followed in the market. They are psychological pricing, odd pricing, free onboard pricing, customary pricing, prestige pricing, dual pricing, ruling pricing, negotiated pricing, mark up pricing, etc. each one can be explained as follows:
Multiple Unit Pricing
“Multiple-unit pricing is a practice where a company offers consumers a lower than unit price if a specified number of units are purchased.”
India's Refrigerator market estimated at Rs. 2750 Cr. is catered mainly by 10 brands. The annual capacity is estimated at around 4.15 million units is running head of demand of 1.5 millions. As there is a demand and a surplus supply, all the manufacturers are trying out for new strategies in the market.
Times have changed and also the buying behaviour of the customer. Earlier it was cash and carry system. Now dealers play an important role in selling; now the systems is exchange for old “bring your old refrigerator and take a new one with many gifts”.
A new company by name Electrolux has entered the market which has acquired Allwyn, Kelvinator and Voltas brand. Researchers have revealed that urban and city sales are declining and hence all manufacturers are trying to concentrate on rural markets.
Electrolux strategy is customisation of market, with special attention to the Northern and Southern India markets, while Godrej the main player thinks that dealer network in rural market for sales and service will be beneficial and is trying to give more emphasis on dealer network, whereas Whirlpool has adopted the strategy of increasing the dealer network by 30%. The market shares of the major players are as follows:
- Godrej 30%
- Videocon 13%
- Kelvinator 12%
- Allwyn 10% Voltas 5%
- Whirlpool 27%
- Daewoo 1%
- G 1%
- Others 1%
Questions
- Could the refrigerator market be segmented on geographical base planned by Electrolux?
- What would be the marketing mix for rural market?
- Would 125 L and 150 L models be an ideal choice to launch in rural market?
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