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Case Study2

The refrigerator market in India is estimated at Rs. 2750 Cr. and is served by 10 brands with an annual production capacity of 4.15 million units, exceeding demand of 1.5 million. As supply exceeds demand, manufacturers are pursuing new strategies. Times and customer buying behaviors have changed from cash-only to dealers playing a key role and exchange programs. A new company, Electrolux, has acquired several brands. Researchers found urban sales declining so manufacturers are focusing on rural markets. Electrolux's strategy targets Northern and Southern India specifically. Godrej and Whirlpool aim to expand their dealer networks in rural areas. The major players' market shares are listed, led by Godrej, Videocon, and Whirl

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385 views1 page

Case Study2

The refrigerator market in India is estimated at Rs. 2750 Cr. and is served by 10 brands with an annual production capacity of 4.15 million units, exceeding demand of 1.5 million. As supply exceeds demand, manufacturers are pursuing new strategies. Times and customer buying behaviors have changed from cash-only to dealers playing a key role and exchange programs. A new company, Electrolux, has acquired several brands. Researchers found urban sales declining so manufacturers are focusing on rural markets. Electrolux's strategy targets Northern and Southern India specifically. Godrej and Whirlpool aim to expand their dealer networks in rural areas. The major players' market shares are listed, led by Godrej, Videocon, and Whirl

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only_rushi4ever
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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 behavior of the customer. Earlier it was cash and
carry system. Now dealers play an important role in selling; now the system 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 customization 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% | L.G 1% | Others 1%
Questions
A. Could the refrigerator market be segmented on geographical base planned by
Electrolux?
B. What would be the marketing mix for rural market?
C. Would 125 liter and 150 liter models be an ideal choice to launch in rural market?

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