Benchmark ifb mwo with competition

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A PROJECT ON

Benchmark IFB MWO with competition price and feature and recommend Action plan for regain of share in market

Prepared by: - Shyam Singh

Roll No. - 111314 SESSION- 2011-13

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ACKNOWLEDGEMENT

I sincerely thank IFB Industries Pvt. Ltd. for giving me the opportunity to pursue Summer Internship in their organization. It is indeed a great moment of pleasure to express my feelings. This project is an important part of our course and curriculum and it gives me a real and practical exposure of the corporate world. So I am deeply thankful and pleased to acknowledge the opportunity given by IFB Industries Pvt. Ltd. and guidance provided by :-

Mr Deepak Prakash (Branch Manager, IFB Industries Ltd, Patna),

Miss Tripti Jha (Business Manager, Domestic home appliances, IFB Industries Ltd., Patna),

Mr Ashish Mishra (Business Manager, Commercial appliances and Institutional sales, State of Bihar, IFB Industries Ltd, Patna) and

PROF. AK HALDAR(DEAN, INTERNATIONAL SCHOOL OF MANAGEMENT PATNA)

This entire project has been very encouraging and will certainly help me in building a

good carrier.

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CONTENTS

SL NO. PAGE NO.

1 EXECUTIVE SUMMARY 4

2 COMPANY PROFILE 5

3 IFB’S PRODUCTS 5,6

4 SOME MAJOR PLAYERS IN THE HOME APPLIANCES SEGMENT IN INDIA

7

5 RESEARCH METHODOLOGY 8

6 SAMPLING TECHNIQUE 9

7 SOURCE OF DATA COLLECTION 9

8 MARKET SHARE OF DIFFERENT COMPANIES DURING 2011-12 10

9 COMPARITIVE STUDY OF MWO 11-14

10 MARKETING STRATEGY OF DIFFERENT BRANDS 15

11 QUESTIONNAIRES ( EXISTING CUSTOMERS’ RESPONSE) 16-20

12 GRAPH BASED ON SURVEY REPORT 21-30

13 CONSUMER RESPONSE 31-33

14 SCOPE OF BETTER SHARE OF IFB MWO 34-37

15 SCOPE OF BETTER MARKET SHARE IN BIHAR 38-39

16 FROM DEALERS’ 40

17 GRAPH BASED ON DEALERS' RESPONSE 41-45

18 SERVICE 46

19 DEALERS' SATISFACTION 46

20 SWOT ANALYSIS 47

21 INFERENCE, LIMITATIONS 47

22 SUGGESTION 49

23 BIBLIOGRAPHY 50

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EXECUTIVE SUMMARY

Indian white goods markets is increasing day by day with domestic companies Like IFB, KELVINATOR, GODRAJ, VIDEOCON and MNCs like LG, WHIRPOOL, etc. IFB which is a major player in this segment has products like dishwasher, washing machine, dryer, microwave Ovens and other kitchen appliances. IFB is leader in front loader washing machine. Earlier it was holding very fine position in MWO segment. Now a day, challenging innovation is coming in market. This compels to do better .For this I have prepared a questionnaire. I collected data from sample size of 50.

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COMPANY PORFILE IFB Industries Limited is known as Indian Fine Blanks Limited. It started their operations in India during 1974 in collaboration with Hienrich Schmid AG of Switzerland. The product range includes Fine Blanked components, tools and related machine tools like Straighteners, Decoilers, Strip loaders and others. The Engineering divisions are located at Kolkata & Bangalore. The Bangalore unit, apart from Fine Blanked components, manufactures motors for White goods as well as automotive applications.

Vision IFB wants to be the synonymous with Innovation & Technology in its chosen fields of business activities.IFB wants to prove itself as globally incomparable technology.

Mission Continuously maximizing company's wealth by manufacturing and marketing best quality engineering products that go into daily life.

IFB’S PRODUCTS DISPLAY

Why IFB? IFB is the market leader in front loader washing machine in India and we are putting all our efforts and hard work to become the first choice when it comes to being an integral part of your household. We always keep customers’ convenience on top priority. We are innovating in technology to help in your invention in cooking. When you see our products, you can imagine how will it improve the internal beauty of your house? When a guest comes to your house, You think to serve dish in sparkling utensils. Our dishwasher is ready to do that. Also you don’t need to become worry about cleaned dried cloths whether it is winter or rainy season. Our washing machine and cloth dryer is ready to resolve your

problem.

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CLOTH DRYER When you see the drum of our washing machine it can be seen that this is full of holes. On comparing our drums with other it can be easily found that in other brands hole is tiny in size. People generally think drying is because of hot air. Excess use of hot air is not required and cloth is dried in safe

environment.

WASHING MACHINE There are two types of washing machines. These are front loader and top loader. We are leader in front loader with market share of 66%.we produce both commercial and industrial products. Our drum has

made fabric friendly. We have innovated a machine which is able for 100% dryness of cloths.

MICROWAVE OVEN IFB is veteran in the production of solo, grill and convection, all three types of MWO machines. We

are providing sufficient no of auto cook menu. Our machines are fully automatic. But you can also

use it manually. Its cavity is made of stainless steel. Some models have powder coated cavity. We

give sufficient no. of accessories, which help to cook different tasty foods.

DISHWASHER

IFB is producing both type of dishwasher, domestic and commercial. This machine is very efficient. It behaves environment friendly. It washes hygienically. It consumes very less amount of aqua and detergent. Twelve plates set can be washed simultaneously. It removes stub born dirt by using smart feature.

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Some of Major Players in the home appliances segment in India

1) The LG Corp is South Korea's second largest company that produces electronics, chemicals, and

telecommunications products. The Home Appliances division makes products like refrigerators and washing machines. Its 2007 sales totalled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market. It also produces Mobile phones, Vacuum cleaners.

2) Samsung Electronics is the world's largest electronics company with 2009 revenue of $117.4

billion, Samsung Town, Seoul, South Korea. Samsung Electronics has achieved significant market share in recent years.

3) Whirlpool is a fortune 500 company and a global manufacturer and marketer of major home

appliances with it’s headquarter in Benton charter township, Michigan, United States, near Benton

harbour. The company has annual sales of approximately $20 billion more than 700000 employees

and more than 70 manufacturing and technology research centre around the world.

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RESEARCH METHODOLOGY

MEANING

Research is an intensive and purposeful search for knowledge and understanding of social and

physical phenomenon. Research is the systematic and objective analysis .It is controlled observation

that may lead to development of generalisation, principles etc. Research is art of scientific

investigation.

OBJECTIVE

To identify the potential of IFB’S MICROWAVE OVEN

To identify buying pattern of MICROWAVE OVEN

To identify the scope of the IFB MICROWAVE OVEN and identification of factors which affect

MWO sales

To identify competitors range /price/features of MWO

SCOPE

My research is confined to Patna and Bihar.

I have considered MWO only.

RESEARCH DESIGN

DEFINITION

Research design is set of advance decision which specifies the methods and procedures for collecting

and analyzing the required information.

NEED AND IMPORTANCE

We collect information from customers, dealers, media etc. It helps in research to identify the need

of customers and competitors strategy. Now we use our effort to provide the best Solution to the

customers. This process is very important because it helps to achieve the objective.

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SAMPLING TECHNIQUE

CONVENIENCE SAMPLING:-

Convenience sampling is used in exploratory research. Where the researcher is interested in

getting an inexpensive approximation of the truth.

For my survey I had sample size of 50 customers.

SOURCE OF DATA COLLETION

(a) PRIMARY DATA

(b) SECONDARY DATA

(a) Primary Data :-

Primary data was collected by preparing questionnaire and contacted the consumers and

dealers’ to get their response and information.

(b) Secondary data:-

Secondary data consist of information collected from the internet, dealers, company

catalogue etc

STATISTICAL TOOL USED

I have used only pie chart.

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MARKET SHARE OF DIFFERENT COMPANIES DURING 2010-11

SALES UNITS (in Thousands) % MARKET SHARE

LG 400 28.98 SAMSUNG 250 18.12 ONIDA 150 10.87 IFB 148 10.72 GODREJ 120 8.70 WHIRLPOOL 120 8.70 VIDEOCON 79 5.72 KORYO 45 3.26 OTHERS 68 4.93

INFERENCE: - This graph says that customers’ first choice is LG, second is SAMSUNG, ONIDA and IFB is neck-to-neck, WHIRLPOOL IS 5th choice and so on. It seems consumers have more faith in brand LG and SAMSUNG.

LG 29%

SAMSUNG 18% ONIDA

11%

IFB 11%

GODREJ 8%

WHIRLPOOL 9%

VIDEOCON 6%

KORYO 3%

OTHERS 5%

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MARKET DYNAMICS

MWO market has been growing by 20-25 % constantly over last 4 Yrs since 2006. In 2010-11 it improved by 9.5% .This is equal to 1.38 million approximately. It is of cost Rs 800 crore. Convection model increased by 42-53 %. Grill is constant at 32 %. Solo model lost by 11 %.

COMPARITIVE STUDY OF MWO

Sl.No.

Basis of comparison

IFB LG SAMSUNG WHIRLPOOL GODREJ

1 Slogan set yourself free with IFB

Life's Good Live smart with Samsung appliances

happiness begins at home

take for granted and you will never know better

2 MWO Slogan Redefining cooking experience

Make tasty moments healthy

Explore delicious moments

Interesting khaana rozaana

All the flavours of the world

now in your home

3 Solo 2 4 4 2 1

4 Grill 3 11 7 3 6

5 Convection 9 18 17 12 10

6 Total no of models

14 33 28 17 17

7 warranty(in yrs) 1(on complete body),3(on cavity and magnetron)

1(on complete

body)

1(on complete body),5(on magnetron)

2(on complete

body)

3(on magnetron for selected models)

8 Features

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9 Motorised rotisserie

No Yes Yes No No

10 Fermentation No Yes No No No

11 Intellowave technology

No Yes No No No

12 Next step guide No Yes Yes No No

13 No of auto cook menu(maximum)

150 (in 38 SRC 1) 201(MJ3281BCG,MJ3281BPG)

219( in CE 117 PF –X, PF-B)

118( in 20 C 118)

161(in GMX 23 CAI MKM)

14 Easy to use For auto cook menu, Put menu no, push start button, for manually, select cooking category, power level temperature, time, push start button

Select menu no, push start button, for manually select power level, mode of cooking, temperature, time, push start button

For auto cook menu, Put menu no, push start button, for manually cooking select time, temperature, power level, push start button

For manual cooking Select menu no, select temperature, time, power level and go for start, for auto cook menu ,select menu no and push start button

Select menu no, push start button , for manually go for type of cooking, and required steps and push start button

15 Size of display Single rack digital LCD

Multi rack digital LCD

Multi rack LCD Single rack LCD

Single rack LCD

16 Charcoal lighting heater

No Yes No No No

17 Egg boiling/cooking(in cell)

not possible possible in MC8188HRC

not possible not possible not possible

18 Aesthetics Door is plain Designed door with attractive photo

Door is plain Door is plain designed door in some model

19 Cavity Stainless steel

Stainless steel

Ceramic enamel

stainless steel, magic clean, powder coated

Stainless steel

20 Voice Guiding No No Yes No No

21 Solar Dom No Yes No No No

22 Colour Single color-3(black, silver, mirror

Single color-4(white, silver, black, mirror

Single color-7(black, silver, white etc),mixed

Single color-2(black, white, silver),mixed

Single color-1(black),mixed colour-

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Finish),mixed colour -2

finish),mixed colour-5

colour-2 colour-2 2

23 Trio Technology No No Yes No No

24 Auto Deodoriser No Yes No No Yes

25 Dehumidification No Yes No No No

26 Humidity sensor No Yes Yes No No

27 Auto moving grill No Yes No No No

28 Keep warm No Yes No Yes(in some models)

Yes(in some models)

29 Tandoori delight No Yes No No No

30 Convection + Microwave

Yes Yes Yes Yes Yes

31 DES(Dual emission system)

No No No Yes No

32 Cavity clean Steam clean Steam clean Steam clean Magic clean(same like steam clean)

Steam clean

33 ACCESSORIES Hand gloves,

roaster, cook and serve with lid, grill rack, crisp cook tawa, skewer for rotisserie

Hand gloves,

two spoon, high rack, low rack, four glass bowl, non stick multi cook tawa

Hand gloves,

rectangular glass dish with handle, grill rack, crisp cook tawa, skewer for rotisserie, Idli stand

Hand gloves, grill

rack, skewer for rotisserie, microtawa, crust plate, Idli stand

Hand gloves,

grill rack, skewer for rotisserie, crust plate, vertical rotisserie, steam clean bowl, Idli stand,

34 Recipe book Nita Mehta Nita Mehta Sanjeev Kapoor

Company personal

Tarla Dalal

35 Starter kit papar roaster, Roti crisper, recipe book, rectangle glass dish with handle, lock- it 300 ml round, cook n serve with lid, Round dish

Idli stand, recipe book, steam chef, high rack, Roti crisper, dish with plastic cover

cooking glove, steam bowl, Idli stand, multi cook tawa, recipe book, micro proof bowl(2),roller ring, turn table

Recipe book, 4 lid , 2 plastic cover jar

Recipe book,1 lid,1 rectangular plastic covered box, 1 plastic cup

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with plastic cover, Idli stand

36 Round rack Yes Yes Yes No No

37 Multi spit No No Yes No No

38 Steam clean Yes Yes Yes Yes Yes

39 Square metal tray No No on selected model

No No

40 Rotisserie on selected model

on selected model

on selected model

No No

41 Steam bowl No No Yes No No

42 High rack No Yes No No No

43 Low rack No Yes No No No

44 Tawa Yes Yes Yes Yes Yes

45 Square tray No Yes No No No

46 Square rack No Yes No No No

47 Steam chef No Yes No No No

48 Metal tray Yes Yes Yes Yes Yes

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MARKETING STRATEGY OF DIFFERENT BRANDS

IFB LG SAMSUNG WHIRLPOOL

NO. OF DEALERS for MWO

34(includes all dealers)

7 9 14

NO OF EXCLUSIVE SHOWROOM

0 3 4 0

PRODUCT PLACEMENT

Generally 2/3 products placed on display




PRICE RANGE 10500-13290 5800-26500 (showroom has almost ranges)

11500-16990(showroom has almost ranges)

10800-11990

NO. OF RECIPES IN RECIPE BOOK

85 75 80 126

COOKING CLASS 0 3 0 0

IN SHOP BRANDING

It is available in very less no of shops

It is available in almost shops

It is available in almost shops

It is available in very few shops

POP It is present with all products

It is present with all products



DANGLERS Nowhere it is present

It is present in showroom only

It is present in showroom and dealers shops

Nowhere it is present

INFERENCE:-

Consumers think to buy from dealers’ point. This is psychology of customers’ buying. If it is nearer to its home so fine so good.

There are some customers who always prefer to buy from exclusive showroom. This gives mental satisfaction.

Some customers took decision on the basis of no of recipes available in recipe book. Now a day people need more convenient cooking which is also supported by way of cooking. They feel cool if it is available in regional languages.

Sometimes it is seen that customers change their decision after observing different models available in display.

When customers inter in shop, they try to collect all the information. In shop branding and pop provides very fast and easy information about the brand and product.

Danglers bring attention of customers. It has also impact on buying decision.

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SUGGESTION:- Dealer should be made in different parts of the city where potential customers live. Dealers must be encouraged to keep more products on display. Exclusive showroom should be opened. There must be 2/3 cooking classes in one month. Shopkeeper must be asked to use in shop branding. Recipe book must be available in regional languages. Brochure should have all the simplest and essential guidelines in all regional languages.

QUESTIONNAIRE (CONSUMERS’ RESPONSE) Sl No.

Model no

What is the reason to buy MWO?

What is the reason to buy IFB?

What is the reason to buy that particular model?

HOW often is MWO used?

For what purpose is the MWO used?

Which feature do you like to use?

Which feature don't you like?

Which feature are you lacking in your machine?

Would you like IFB to come with more colours? If yes please specify.

What problems do you face while using MWO?

1 30SC2

time saving

brand name

suitable to family size

daily heating, baking

fast heating

None can't say

No no problem

2 17PG1S

healthy cooking

brand name


daily Cooking

easy to use

Nothing

Nothing

No no problem

3 20PG3S

healthy cooking, time

brand name

price, feature of the model

almost daily

Heating

fast heating

no one

no problem

no no problem

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saving

4 25PG1S3

time saving

Aesthetics


almost daily

heating ,cooking, baking

easy to use

None Nothing

No no problem

5 30SC2

convenience

brand name

feature of the model

daily Heating

fast heating

None Nothing

No no problem

6 30SC2

healthy cooking

brand name



easy to use

Nothing

can't say

No feature not easy to understand

7 30SC2

convenience

brand name


almost daily

Heating

fast heating

Nothing

can't say

No no problem

8 20SC2

healthy cooking

brand name


almost daily

heating, baking

easy to use

No better baking

No no problem

9 20SC2

time saving

brand name


daily Heating

fast heating

No no problem

No no problem

10

25SC2

healthy cooking

referred to somebody


rarely Heating

easy to use

No can't say

No more comfortable with conventional mode of cooking

11

20SC2

time saving

brand name


daily heating,cooking,baking

fast heating

No can't say

No no problem

12

30SC2

healthy cooking

brand name


almost daily

Heating

easy to use

No Nothing

No no problem

13

20SC2

convenience

Aesthetics


almost daily

heating, baking

fast heating

No can't say

No no problem

14

20PG3S

healthy cooking

brand name


daily Cooking

easy to use

No Nothing

No no problem

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15

30SC2

healthy cooking

brand name


almost daily

heating, baking

easy to use

No None No no problem

16

30SC2

time saving

brand name


daily Heating

fast heating

No can't say

No no problem

17

30SC2

healthy cooking

brand name


daily Heating

fast heating

No Nothing

No no problem

18

30SC2

convenience

Aesthetics


almost daily

Cooking

fast heating

No bread making

No no problem

19

17PG2S

healthy cooking

brand name


daily Cooking

less oil consumption

No better baking

yes, maroon

Nothing

20

30SC2

time saving

brand name


daily Cooking


Nothing

bread making

No no problem

21

25SC2

time saving

Aesthetics


almost daily

baking fast heating

None making sattu pratha

No Nothing

22

20PG1S

healthy cooking

brand name


almost daily

heating, baking

fast heating

None better toast roasting

No Nothing

23

30SC2

healthy cooking

brand name


almost daily

Heating


No bread making like tawa

yes, sky blue

no problem

24

25SC2

time saving



almost daily

Cooking

fast heating

No egg boiling

No No

25

30SC2

healthy cooking

brand name




No tawa bread making

yes, white

No

26

17PG2S

time saving

brand name


almost daily

Heating


No egg boiling

No No

27

30SC2

healthy cooking



Daily Heating

fast heating

No can't say

No no problem

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28

30SC2

time saving



rarely Cooking


No Nothing

No no problem

29

30SC2

healthy cooking

brand name


almost daily

baking fast heating

No Nothing

No No

30

25SC2

healthy cooking



Daily Cooking



No no problem

31

25SC2

healthy cooking

brand name


Daily heating, baking


No Nothing

yes, maroon

no problem

32

25SC2

time saving

brand name


almost daily

Cooking

fast heating

No Nothing

No no problem

33

30SC2

convenience



Daily Cooking


No egg boiling

No Nothing

34

25SC2

convenience



Daily Cooking


No Nothing

No Nothing

35

25SC2

convenience

brand name


Daily Heating

fast heating

No Nothing

No no problem

36

30SC2

time saving

brand name


Daily Cooking


No Nothing

No no problem

37

20SC2

time saving

brand name


almost daily

Cooking

fast heating


No None

38

17PG2S

convenience



almost daily

heating,cooking,baking

fast heating

No No No no problem

39

20PG3S

time saving

brand name


almost daily

Cooking

fast heating

No No No no problem

40

30SC2

convenience



Daily Cooking


No No No no problem

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41

20sc2

convenience

referr

ed to

someb

ody

suitable

to

family

size

Daily Cooking


No No No no problem

42

30SC2

time saving

brand name

suitable to

family size

daily Heating


No can't say

No Nothing

43

25SC2

time saving

brand name

suitable to

family size

daily Heating

fast heating

No No No Nothing

44

30SC2

convenience

referred to

somebody

suitable to

family size

daily Cooking


No No No Nothing

45

17L. convenience

brand name


almost daily

Cooking

fast heating

No No No no problem

46

20PG2S

time saving

referred to

somebody

suitable to

family size

almost daily

Cooking


No No No no problem

47

20PG3S

convenience

brand name

suitable to

family size

daily Heating


No No No no problem

48

20SC2

convenience

referred to

somebody

suitable to

family size

rarely Cooking


No No No Nothing

49

30SC2

convenience

brand name

suitable to

family size

almost daily

Cooking

fast heating

No No No no problem

50

30SC1

convenience

brand name

suitable to

family size

daily Cooking


No No No no problem

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GRAPH BASED ON SURVEY REPORT

1. What is the reason to buy MWO?

Out 50 customers 15 said time saving, none said about energy saving, 17 said convenient and 18 said healthy cooking. INFERENCE: - People are becoming more health aware and have found the option to cook in less time. Also second major percentage of consumers feel MWO is convenient because it saves their time and extra effort. People are becoming more professional and they find this machine is helpful to save their time.

Time saving 30%

energy saving 0%

Convenience 34%

Healthy cooking 36%

What is the reason to buy MWO?

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2. What is the reason to buy IFB?

Out of 50 customers, 32 said brand name, 10 said referred by somebody, 8 said aesthetics INFERENCE: - 64% trust on brand, 20% believes in others advice and 16% buy because of look. Word of mouth plays great role to affect the consumers’ buying decision. People’s perception is greatly affected by brand name. They interpretate, expose, pay attention and integrate before buying decision.

Husband choice 0%

Brand name 64%

Referred to some body

20%

Aesthetics 16%

What is the reason to buy IFB?

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3. What is the reason to buy that particular model?

Out of 50 customers 31 said suitable to family size, 12 said feature of the model and 7 said gifted by somebody. INFERENCE: - Customers identify their need exactly then go for buying. Some customers select some model on the basis of feature. Some consumers get in gift.


62%

suggested by shopkeeper

0%

feature of the model 24%

Gifted by some body 14%

what is the reason to buy that particular model?

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4. How often is MWO used?

Out of 50 customers 25 said daily, 19 said almost daily, 3 said rarely and 3 said not using. INFERENCE: - Consumers want to do anything conveniently. They are recognising the use of machine fastly.

Daily 50%

almost daily 38%

rarely 6%

not using 6%

How often is MWO used?

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5. For what purpose is the MWO used?

Out of 50 customers 21 said heating, 21 said cooking, 2 said baking and 6 said all of the Above. INFERENCE: - Heating and cooking are most frequent work of kitchen. So 42% customers use MWO for heating and 42% customers use for cooking. 12% consumers use it in cooking, baking and heating. 4% customers use it in baking only.

Heating 42%

Cooking 42%

Baking 4%

All the above 12%

For what purpose is the MWO used?

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6. Which feature do you like to use?

Out of 50 customers 23 said fast heating,17 said less oil consumption,6 said easy to use and 4 said other things. INFERENCE: - Fast heating is common and frequent need for daily life. Fast heating is liked by maximum persons. Now a day due to hectic life schedule consumers want to take less oily foods. MWO is able to cook in such condition. Some persons like MWO because it is convenient in use.

fast heating 46%


34%

easy to use 12%

others 8%

which feature do you like to use?

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7. Which feature don’t you like?

Out of 50 customers all features have been liked by all. INFERENCE: - Customers want to know what they don’t know. They don’t bother from non using feature.

0%

100%

which feature don't you like?

yes

no

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8. Which features are you lacking in your machine?

Out of 50 customer 7 said we can’t say,7 said tawa bread and sattu pratha,3 said egg boiling and 33 said nothing. INFERENCE: - Customers feel the features provided are sufficient. Some need to have feature for more common dish tawa bread/sattu pratha.

Nothing 66%

tawa bread/sattu

pratha 14%

can't say 14%

egg boiling 6%

Which feature are you lacking in your machine?

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9. Would you like IFB to come with more colours? If yes please specify.

Out of 50 customers 47 said no and 3 said yes among of which 2 persons required maroon and 1 sky blue. INFERENCE: - Customers needed machines of good quality and essential features, don’t need more colours. Customers were satisfied from aesthetics.

No 94%

Yes 6%

would you like IFB to come with more colours?If yes please specify.

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10. What problem do you face while using a MWO?

Out of 50 customers 48 told no problem and 2 said about proper demo. INFERENCE: - Customers take interest in learning new thing themselves after being guided once or twice.

Proper demo given

4%

No problem 96%

What problem do you face while using a MWO?

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CONSUMERS’ RESPONSE

SL No.

Do you know about MWO?

Do you feel the need of this machine?

What is the barrier in buying of MWO?

Which brand MWO would you prefer?

Which factor influence you to buy MWO?

Which type of MWO would you like to purchase?

1 Yes Yes Awareness LG Brand name Convection

2 Yes Yes Absent of proper demo

LG Brand name Convection


Samsung Brand name Convection

4 Yes Yes Price Samsung Brand name Convection

5 Yes Yes Price Samsung Brand name Convection

6 Yes Yes Price Samsung Brand name Grill

7 Yes Yes Price LG Brand name Grill

8 Yes Yes Price LG Brand name Convection

9 Yes Yes Price LG Price Convection

10 Yes Yes Price LG Price Convection

11 Yes Yes Price IFB Brand name Convection

12 Yes Yes Price IFB Quality Grill

13 Yes Yes Price LG Quality Grill

14 Yes Yes Price LG Quality Grill

15 Yes Yes Price LG Price Solo

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16 Yes Yes Awareness LG Price Convection

17 Yes Yes Awareness IFB Quality Convection

18 Yes Yes Awareness IFB Price Convection

19 Yes Yes Awareness LG Brand name Solo

20 Yes Yes Convenience IFB Brand name Solo

21 Yes Yes Convenience IFB Brand name Solo

22 Yes Yes Convenience LG Performance Solo

23 Yes Yes Convenience IFB Brand name Grill


Others Quality Grill

25 Yes Yes Price LG Aesthetics Convection

26 Yes Yes Price Others Aesthetics Convection

27 Yes Yes Price Others Performance Grill

28 Yes Yes Price Samsung Performance Grill


IFB Brand name Grill

30 Yes Yes Awareness Others Brand name Grill

31 Yes Yes Awareness Others Performance Grill

32 Yes Yes Awareness IFB Performance Convection

33 No No Price Others Aesthetics Solo

34 Yes Can't say Price Others Aesthetics Solo

35 Yes Yes Price Samsung Performance Solo

36 Yes Yes Price Samsung Aesthetics Solo

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37 No Can't say Awareness Samsung Brand name Grill

38 Yes Can't say Price Samsung Aesthetics Grill

39 No No Electricity Samsung Performance Convection

40 No Can't say Electricity Samsung Performance Convection

41 Yes No Electricity LG Performance Grill

42 No No Awareness LG Brand name Grill

43 No Yes Absent of proper demo

LG Brand name Convection

44 Yes Can't say Electricity LG Brand name Convection

45 No No Electricity Others Brand name Convection

46 No Can't say Awareness Others Brand name Convection

47 Yes Can't say Awareness Others Brand name Grill

48 No Can't say Convenience Others Brand name Grill

49 No Can't say Convenience Others Brand name Solo

50 Yes Can't say Convenience Others Brand name Solo

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Scope of better market share of IFB MWO

Sample size = 50

Awareness about the product MWO

Out of 50 people only 40 were aware about the product MWO and the rest 10 not aware about it. The person who were aware had an average salary of Rs 35000/- and above per month .They were much busy person. INFERENCE: - Huge percentages of persons were aware about MWO. Some were not aware.

Yes 80%

No 20%

Awareness

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NEED

Out of 50 customers 35 gave positive response that MWO saves time, energy, cooks healthy in hygienic environment so this is need. 10 people said can’t say. Rest 5 wanted to finish their job traditionally. INFERENCE: - Large number of people feels the need of this machine. They need hygienic food in less time conveniently.

Yes 70%

No 10%

Can't say 20%

NEED

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BARRIER

INFERENCE: - There was huge percentage of population who wanted to have MWO but higher price and mode of payment prevent them to do so. Some feel the need of machine like MWO but they were not aware about it. Some think electricity, some think absence of proper demo and some think convenience is the reason.

Price 46%

Awareness 20%

Convenience 14%

Electricity 10%

Absence of proper demo

10%

BARRIER

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Customer preference of brand

Out of 50 people 22 liked LG,8 liked IFB,10 liked Samsung and 10 liked others. INFERENCE: - LG is leader in MWO segment. Some preferred Samsung and some IFB. Some liked others.

FINDINGS

After survey I found some facts from respondents:- Brand awareness is very necessary. Some said tawa bread can’t be made which is the prime part of meal. Customers wanted more feature in machine. Consumers liked to have more option before the selection of model. Eighty percent customer was aware about this machine. Most of the customers felt the need of MWO. Price and lack of awareness were main barriers in buying MWO.

LG 44%

SAMSUNG 20%

IFB 16%

OTHERS 20%

Preference of brand

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SCOPE OF BETTER MARKET SHARE IN BIHAR

Graph and analysis Sample size=50 Desired attributes

From this graph I can clearly interpret that customer first consider brand name, before buying MWO followed by performance, aesthetics, price and quality. INFERENCE: - At first People trust on brand and then think about performance, quality and aesthetics.

Brand name 50%

perfomance 16%

Aesthetics 14%

Price 10%

quality 10%

Desired attributes

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MOST PREFERRED TYPE OF MWO

From this graph it can be said that Convection model is more in demand. Solo type has less selling. INFERENCE: - Convection is advance technology to resolve kitchen requirement. Convection models have all three functions solo, grill and convection. Grill has fewer features. Solo has least functions. So customers like convection more.

FINDINGS:- From survey I came to know that most of the customers prefer LG and SAMSUNG for buying MWO as they have created a good brand image in the minds of customers through sales promotion, offers, advertisements ,services etc. Most part of customers wants to have convection

model. CUNSUMERS RESPONSE ABOUT THE

FOLLOWINGS: -

SL NO. EXITING CUSTOMERS NEW CUSTOMERS

1 PRODUCT 80% customers are satisfied.34% consumers said it is convenient. 30% said it helps in time saving.

20% customers are satisfied.40% customers said it helps in healthy cooking.

2 FEATURE 42% consumers’ uses in heating. 42% customers said it is well in cooking. 10% said there should be egg boiling feature.

60% customers liked. 6% said there should be tawa Roti feature.

3 BRAND 64% customers trust on brand. 10% knows it from net.40% customers knew from their relatives/friends.

16% customers trust on brand. 15% customers got IFB on internet. 15% was convinced by shopkeepers.

4 PRICE 80% customers are satisfied. 50% customers said price is more than

60% customers are satisfied. 40% consumers said price is

Convection 42%

Grill 36%

Solo 22%

Type of MWO

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budget. very high. Some consumers said MWO should be available in instalment.

5 AFTER SELL SERVICE

96% customers are satisfied. 70% said service boy comes on time. 40% needs cookery classes.

90% customers are satisfied. 60% said IFB’s machine is very good in quality.

From Dealers’ SL NO. Location Which

brand’s MWO is in demand?

Which brand gives good margin?

Which company's after sale service is good?

Which company gives more promotional offer?

Are you satisfied with pricing strategy of IFB MWO?

1 Patna LG LG LG Whirlpool No

2 Patna Samsung LG LG LG No

3 Patna LG Samsung Samsung Whirlpool Yes

4 Patna IFB IFB IFB IFB Yes

5 Patna Whirlpool Godrej Godrej Godrej Yes

6 Patna LG LG LG Whirlpool No

7 Patna Samsung Samsung Samsung Samsung No

8 Patna Samsung Samsung Samsung Samsung No

9 Patna LG LG LG Samsung No

10 Patna LG Samsung Samsung Whirlpool Yes

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GRAPH BASED ON DEALERS’ RESPONSE

Demand of brand of MWO

From this I may say that in a shop 50% customer demands LG and 30% SAMSUNG. INFERENCE: - LG is leader in MWO segment. Thirty percent customers demand Samsung and 10 percent demand IFB and Whirlpool each.

LG 50%

Samsung 30%

IFB 10%

Whirlpool 10%

Demand

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MAXIMUM MARGIN IN BRANDS

INFERENCE: - LG and SAMSUNG are giving almost equal profit margin .Out of 10 dealers two liked profit margin of IFB and Godrej one for each.

LG 40%

Samsung 40%

IFB 10%

Godrej 10%

Margin

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AFTER SALE SERVICE

LG and Samsung are providing very good service. IFB and Godrej’s service is also good. INFERENCE: - LG and SAMSUNG are very good in after sale service. Out of 10 dealers two liked the service of IFB and Godrej ,one for each.

LG 40%

Samsung 40%

IFB 10%

Godrej 10%

After sale service

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PROMOTIONAL OFFERS

Whirlpool gives the best offer. Samsung also gives very attractive offers. LG, IFB and Godrej are also well in promotional offers. During last Diwali –LG was giving three years warranty on complete body. Samsung was giving cash discount, DVD, weekly draw etc offer through scratch card. Whirlpool was giving travelling coupon, gift coupon etc through scratch card. IFB was giving 4 years warranty on cavity and magnetron, more accessories etc through scratch card. Godrej was giving pair wrist watch. INFERENCE: - Whirlpool and Samsung are paying more attention on promotion. IFB, LG and Godrej are also promoting their products in good way.

Whirlpool 40%

LG 10%

SAMSUNG 30%

IFB 10%

Godrej 10%

Promotional offer

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PRICING STRATEGY OF IFB MWO

OUT of 10 dealers, five were satisfied and five were not satisfied. INFERENCE: - Fifty percent dealers were satisfied.

Yes 50%

No 50%

Price strategy

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SERVICE

LG is providing the fastest service. Its MIS (management information system) is very good. When a product is sold, a message reaches service boy’s no. about the address of installation and demo of sold product. Service boy arrives there simultaneously with products. If we talk about Patna it has been divided into five parts. One part is under one service person. So service is very fast.

SAMSUNG is also giving good service. But this is not like LG. It has also divided Patna in four segments. Each part is cared by separate person. This management is used for customer satisfaction. Also customer gets satisfied from the service. Godrej and whirlpool are not providing so much satisfied service. IFB’s service persons move to the required location from single address. It takes much time to reach the destination. Demo is given till customers’ satisfaction/requirement. IFB’s service persons are veteran. Its customers are satisfied from the service. Service is well.

DEALERS’ SATISFACTION

LG It has different DP and MRP. It allows CSR to bargain on price. Again if customer is not satisfied, second discount is given by shopkeeper. In spite of such discounts dealers get good profit margin. This is actually psychological. But customer gets satisfaction.

SAMSUNG Same thing is provided by Samsung.

GODREJ It also gives the same facility for dealer.

WHIRLPOOL It also provides good profit margin.

IFB It has same DP and MRP. It does not allow seller for multi stage discount. There is very less profit margin for seller compared to LG and SAMSUNG.

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SWOT ANALYSIS OF IFB MWO

STRENGTH

Good product quality Durability/Performance Good after sale service Brand equity Competitive price Customers satisfaction Good research and development team

WEAKNESS

Very less brand awareness Dealers’ less interest to sell IFB MWO Products are not available at all dealers’ counter. Total no number of different models are very less than competitors. Products range is fewer than competitors. Number of auto cook menu is less than competitors. Number of features is less than competitors. Less sales promotion Less advertisement

OPPORTUNITY

Trust on valued and exiting customer Talk to exiting customer to solve their relevant problem (by calling/sms). New area of Bihar is being electrified. Per capita income of Bihar is increasing. People are becoming more health aware. People want to cook conveniently in less time. MWO is being gifted in marriage in remote area. People belonging to rural parts of Bihar are changing their standard of living. Consumers want to cook hygienically. Customers want to take natural taste.

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THREATS

Competitors low price strategy in the same segment Aggressive and effective promotional marketing initiatives used by competitors like TVP ads,

hoardings etc Preference of customers and dealers of their brands like LG, SAMSUNG etc over IFB Competitors are providing more models and design. Competitors brand awareness is more. Competitors have more capital strength.

INFERENCE

From research study and responses following are the concluding points:-

The after sale service of IFB is good and customers are satisfied. IFB is perceived as premium brand by customers and Dealers. In Patna (Bihar) LG is most preferred brand by customers and dealers. IFB has not created good brand awareness in the mind of customers. Dealers of IFB products are satisfied with the pricing strategy of MWO of IFB. There are some Dealers in Patna who are not selling IFB MWO. Dealers who are selling IFB

MWO are not having so much number of different models as of LG and SAMSUNG in display.

Exiting customers are satisfied from feature, quality and service. So they do the job of advertiser/adviser for new consumers through word of mouth. New consumers trust on brand/quality/word of mouth/feature etc. Dealers are intermediary between company and customers who fulfil the demand of customers and also convince to the consumers about products. Dealers are rational persons.

LIMITATIONS There were limitations that I had to face while doing this project. They are as follows:-

My survey was confined within Patna so the conclusions are not applicable to entire state. My sample size was limited to 50 customers so sampling error might occur. I had limited time for doing the survey, preparing report and completing my projects.

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SUGGESTION The various suggestions that I would like to give are as follows:-

The brand promotional technique like canopies ,activities, free service camps, stage shows etc should be done more regularly to improve brand awareness.

Create new Dealers to increase availability of IFB products at various places in Patna and rest Bihar.

Brand promotional relation like personal relation, direct contact with customers using distribution channel should be done.

Stores should be improved in such a way that customers mind can be captured and sales can be promoted.

All existing customers should be wished by sending card on the eve of special day. Customers should be sent sms /mail on different festival. There must be free cookery classes. Marriage bureau might be used as sales promotional person. At the time of marriage, people

give MWO in gift.

Big city should be divided into small parts; each part’s responsibility might be given to individual person. This should be done to ease the work.

When We conduct an activity under apartment, a quiz contest should be organized for Children or free gift should be given to them. This may encourage parents to participate in activity. This may help to achieve the objective.

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BIBLIOGRAPHY

www.ifbindustries.com/

www.ifbindustries.com/company.php

www.ifbappliances.com/

http://en.wikipedia.org/wiki/LGcorp

http://en.wikipedia.org/wiki/samsung-electronics

www.samsung.com/

www.samsung.com/in/info/contactus.html

www.godrejappliances.com

www.godrej.com

www.godrej.com/godrej/godrej/ourproducts

www.whirlpool.com/

www.whirlpoolindia.com/

www.lg.com/

www.lgworld.com/

www.google.co.in

http://www.ifbindustries.com/

http://www.ifbindustries.com/company.php

http://www.ifbappliances.com/

http://en.wikipedia.org/wiki/LGcorp

http://en.wikipedia.org/wiki/samsung-electronics

http://www.samsung.com/

http://www.samsung.com/in/info/contactus.html

http://www.godrejappliances.com/

http://www.godrej.com/

http://www.godrej.com/godrej/godrej/ourproducts

http://www.whirlpool.com/

http://www.whirlpoolindia.com/

http://www.lg.com/

http://www.lgworld.com/

http://www.google.co.in/

Benchmark ifb mwo with competition

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