By:-Harjas Kaur231062Kanika Jain231073Mahak Agrawal231084Naveen Kumar Suman231094Priyanshu Jain231104Pranay Goyal231114

Table of ContentsExecutive Summary5REFRIGERATOR INDUSTRY IN INDIA6INDUSTRY PERFORMANCE AND PROJECTIONS6COMPETITIVE STRATEGIES (4 PS)9Marketing Mix9WHIRLPOOL9Product9Price10Promotion10Place10LG10Product10Price11Promotion11Place11SAMSUNG11Product11Price11Promotion11Place11PESTLE Analysis11Political Factor: -12Economic factor: -12Socio-cultural factor: -12Technological factor: -12Legal factor:-13Environmental factor:-13Porter Five Forces13Threat of New Entrants:14Bargaining Power of Buyers:14Threat of Substitutes:14Bargaining Power of suppliers:14Rivalry among existing firms:14LEARNINGS FROM CONSUMER BEHAVIOUR SURVEY14EXTERNAL FACTORS-14INTERNAL INFLUENCES-1516The Process of New Product Selection17Objectives:17Marketing Strategy18Positioning Statement18Bull's Eye Model18Action Plans20PRODUCT STRATEGY20THE UNIQUE SELLING PROPOSITION:20OBJECTIVE:20PRODUCT LINE:20VARIANTS:20LABELLING & PACKAGING:20WARRANTIES & GUARANTEES:20PROMOTIONAL STRATEGY21Design of Communication and Media mix-21Advertising a mass media approach to promotion21Direct marketing - taking the message directly to the consumer21Public relations - using the press to your advantage21Digital marketing new channels are emerging constantly22ANNEXURE23

Executive SummaryThis report examines and investigates how an increase in purchasing power has resulted an increase in the consumer durables. It is expected that the lower middle and middle income group will triple by the year 2025. In the consumer durables the report concentrates on Refrigerator market which is growing at a rate of 11.3%. The report analyses the past sales of the refrigerator industry and on the given information provide a forecast of the expected sales for the next year.The report talks about the launch of a new product by Godrej 'Cool-m-Cool' aimed at the semi-urban population. The product differentiates itself by reducing the deep freezer area and providing a water cooler over the deep freezer area. It also provides a detachable water dispenser for ease of cleaning purpose. One of the features of this refrigerator it provides frost free technology at an affordable price. The market analysis also shows that in the next 5 years market share of frost free is expected to go up.The major players in the refrigerator market are LG, Samsung, Godrej, Whirlpool and Electrolux. The report with the help of marketing mix, PESTLE, porters five forces model and perceptual mapping helps Godrej in understanding its relative position and standing in the market.The report also gives an insight to the company's objective. It showcases how much sales the company is targeting and the market share it wants to capture. At the launch 'Godrej expects to sell 3 lacs of Cool-m-Cool model, i.e. 2% of the total market share and for Godrej a market share of 20%. At the launch Major emphasis is given on Print media for marketing the product. Along with this large amount would be spent on Hoardings and billboards. The promotion has also been planned through mobile vans and digital marketing medium.

REFRIGERATOR INDUSTRY IN INDIARefrigerators are manufactured in India by predictability keeping in mind the tropical climate as more than 8 months in a year, 90% part of India faces hot humid weather. Now almost in all households refrigerators are used as they have become the necessity of daily life. It comes in the category of White goods. Till the 1980s, players like Godrej, Kelvinator and Voltas controlled almost 90% of the market. Earlier, the white goods sector was categorized as a luxury goods industryand was subject to oppressive taxation and licensing. The situation changed after the liberalization of theIndian economyin the early 1990s. Post-liberalization, a number of foreign companies entered the market and many domestic players also diversified into refrigerators. The Refrigerator market today is moderately regulated by-Bureau of Energy Efficiency; the statutory energy conservation body under the Power ministry has tightened energy norms by 2 levels. This implies that the 5 star models as per energy norms of 2013 will be 3 star models as per energy norms of 2014; Environmental Protection Agency; Indian Standards Institution (IS 1474-1959) among others. Heavy taxation in the country is one of the challenges for the players. At its present structure the total tax incidence in India even now stands at around 25-30 per cent, whereas the corresponding tariffs in other Asian countries are between 7 and 17 per cent.The Indian Refrigerator industry is highly competitive. The refrigerator market has global brands which provide wide choice to consumers and there is effective distribution network in both urban and rural areas.In India, refrigerators have the highest aspiring value of all consumer durables, with the exception of televisions. This accounts for the high growth rate of therefrigerator market. Rising household income, improving living standards, rapid urbanization, increasing number of nuclear families and environmental changes are growth drivers for the refrigerator industry. The Refrigerator industry has the highest demand penetration rate of 31% out of all the durables as of 2013. INDUSTRY PERFORMANCE AND PROJECTIONSCurrently, about 11 million refrigerators are sold in India. Although the market does contain a component due to replacements of old refrigerators, growth is dominated by the entrance of households to the expanding middle class. For 2007-2013, we relied on an estimate of sales provided by Euro monitor, a marketing research firm. We assume that although the refrigerator market will grow, it will grow at a decreasing rate than before. This maybe because of the threats including poor infrastructure, non availability of regular power supply which is an imperative for electronics products, cheaper imports from China and concessional duty imports under FTA from ASEAN countries.The refrigerator industry has grown at an average rate of 17.2% during 2007- 2013. The projected average growth rate during 2014-2016 will be around 11%.

Table 1SOURCE: Euro monitor (2011)

Table 2SOURCE: Euro monitor (2011)

MARKET SHARE OF ORGANISED AND UNORGANISED FOR THE LAST YEAR AND PROJECTION FOR NEXT 3YEARSFor the last year, The Organised sector had substantial market share for refrigerator industry. The market share for unorganised sector was almost negligible.The whole consumer durables industry is shifting from the unorganised to the organised sector.In the next 3 years, the market share of the organised sector is expected to outgrow the market share of unorganised market, as was the case last year. Organised retailers are expected to increase. Some of the existing ones are Godrej Lifespace, eZone, Tata CROMA.

MARKET SHARE OF TOP 5 PLAYERS IN THE REFRIGERATOR INDUSTRY IN THE LAST 2 YEARS

Source: www.currentweek.comeconomictimes.indiatimes.com

COMPETITIVE STRATEGIES (4 PS)PRODUCTPRICEPLACEPROMOTION

LGProducts for Upper and upper Middle class, high qualityCost+ reasonableGross profit, comparativelyHigh priceLg refrigerators are available at allmajor electronic stores, LG dealers and onlineAdvertisesusing famousstars

SAMSUNGProducts for middle and upper classPrice worth the product, moving to high pricesOwn stores and major electronic storesMedia advertising, sponsorships

VIDEOCONElectrolux (high end), Kelvinator (upper and middle), Voltas (lower end)Priced its products little below market levelsElectronic storesAdvertising- moderate, old player in India

WHIRLPOOLModern refrigerators, premium editions for various modelsHigher price than competitorsElectronic stores, dealers, onlineBrand ambassador- Juhi Chawla(home maker), advertisements, exhibitions

ANALYSIS The top 5 players in the refrigerator industry remain the same in the last 2 years. LG remains the market leader though its share goes down by 7%. No major difference is seen in terms of the market shares of the top players. The Direct Cool segment occupies around 75 percent of total market share and rest of 25 percent occupied by Frost Free models. LG and Samsung lead the frost free refrigerator market and it has a big market in the future. In the next 5years, market shares of Frost free markets are expected to go up. The top players target more high end consumers but since the rural markets and lower end markets are increasing, there is a need to launch refrigerators in this segment too.

Marketing MixWHIRLPOOLProductPhilips's product strategy is to deliver the best quality and technology. Therefore, this Whirlpool Refrigerator of Philips supports features such as Frost Free, 2 door bottom freezer, Refrigerant 134a,Twin Bio attacker, Triple Ice tray, Premium look and Design, Quiet and more reliable Compressor etc.. Philips has to spend a lot of money in innovation and R&D to use all resources which are included in its refrigerators. For instance, the company has to focus on the development of bottom freezer to take advantage of the fact that this new technology is possible with their refrigerators.Furthermore, Philips holds on to its brand value. The name Philips's stands for quality, technology, and market leadership which could be achieved with its previous product mix. Moreover, the name has a good reputation and is associated with a high customer loyalty.Additionally, the design of this Whirlpool refrigerator is modern and is available in three neutral colours black, white, and silver. The sizes are available from 180 litres to 568 litres.Finally, Philips offers a one year long warranty for its Whirlpool refrigerators.

PricePhilips's price strategy is adapted to its product. Due to the fact that Whirlpool refrigerator of Philips offers the best technology and a plenty of functionalities, the price for it is more expensive as the product of its competitors. Nevertheless, Philips's high price is a character for its high product quality and the company has to proclaim its high price together with its high technology.Furthermore, Philips tries to adapt its price to the particular environment and region.Furthermore, Philips pursues a versioning price policy. According to Shapiro and Varian, it involves offering a product line and let users choose the version of the product most appropriate them. Consumers can decide if they want to pay a higher price for the premium edition with some extra features, or prefer a lower price with fewer extra features.Additionally, Philips allows credits to its major retailers and offer discounts according to the quantity of sales.

PromotionPhilips's most important promotion tool for its Whirlpool refrigerator is the television advertisements &exhibitions. Additionally, Philips's promotion strategy also includes sponsoring. For instance, the TV shows like Home Depot', Kitchen Cook' etcwhile you were out etc. Thereby, Philips's refrigerators are promoted by perimeter advertising boards and TV spots.

PlaceOne part of Philips's place strategy is to be the last one to release its Whirlpool refrigerator on the market. Philips has pursued this strategy already with its previous products like play stations & other products and it ensures that the product will be the product with the newest technology on the market. Furthermore, Philips offers only a limited quantity of products at the beginning of its rollout. This is a really powerful marketing tool, because it ensures that early adopters really want to have the product. Following such an approach, such people stand in lines for hours in front of shops just to get one exemplar of the new refrigerators. It is important to convince and get early adopters, because the long-term success of a new product can be based on how those feel about it. A limited of products creates a passion to get one and it results in communication about the product. Early adopters speak about the product and promote it. They write about the product in blogs, create web-sites and connect the product to others in a way that other people will follow.LGProductLG pays attention to upper and upper middle classes and provides products for those consumers. The products include TV audio video, mobile phones, home appliances, IT products, and air conditioning (LG Electronics, 2010).

PriceLG generally puts in average price for its products. The pricing strategy of LG is cost plus fixed mark up. Following the pricing policy, LGs formula is import cost + reasonable gross profit. The formula is used to cover the market cost and make profits in any market.

PromotionOne effective way of promotion is advertisement. As a famous brand, LG advertises their product to get promoted .It is accustomed to inviting famous stars to advertise its merchandise.

PlaceLGs merchandise is sold throughout the world, especially developed regions. There are numbers of LG retailers in big cities and towns. In addition, LG sells its products in home appliance interlink retail enterprises.

SAMSUNGProductSimilar to LG, Samsung pays attention to upper and upper middle classes and provides products for those consumers. It provides mobile devices, TV audio video and home appliances. Focusing on the future of wireless communications, Samsung launched futuristic products such as the mobile phone watch, the PDA-phone, the digital camera cum mobile phone, the MP3 mobile phone and its latest model of 3G mobile phone.

PriceThe price of Samsung products is similar with LG.

PromotionSamsung constantly holds sales promotional events. The promotion is able to help Samsung expand its sales. So basically Samsung concentrates on providing some lucrative offers for the sale of its products along with the advertising part.

PlaceSamsung sells its products by retailers and home appliance interlinks retail enterprises. Nevertheless, Samsung not only sells products in cities, but also in countryside. Samsung was one of the companies that help rural people improve their living standard.PESTLE Analysis

PEST is macro environmental scanning tool which is very helpful to scan environment. But the model has been recently extended furthermore now it calls PESTLE analysis which provides more efficiency towards scan the environment for future strategic planning.PESTLE stands for Political, Economical, Socio-cultural, Technological, Legal, and Environmental, and it is very useful tool in development of a new plan.

Political Factor: -Political factors influence organizations in many ways. Political factors can create advantages and opportunities for organizations. Conversely they can place obligations and duties on organizations. Federal election law allows corporations to establish Political Action Committees (PACs). It uses six criteria to evaluate a candidate before PAC dollars are contributed: Pro-business philosophy A favourable voting record or position on key issues of importance to the refrigerator company Constituent relationship with company Campaign finance need Chances of winning and closeness of race Committee affiliationEconomic factor: - All businesses are affected by national and global economic factors. National and global interest rate and fiscal policy will be set around economic conditions. The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society.An economy undergoing recession will have high unemployment, low spending power and low stakeholder confidence. Conversely a booming or growing economy will have low unemployment, high spending power and high stakeholder confidence. Cheaper labour in developing countries affects the competitiveness of products from developed countries. A truly global player has to be aware of economic conditions across all borders and needs to ensure that it employs strategies that protect and promote its business through economic conditions throughout the world.

Socio-cultural factor: -

Social factors include the cultural aspects and its influences vary region to region. This includes: Life style Age Religion EducationGodrej is among the largest Conglomerate Company in India. Millions of people in India enjoy the products of the company every day. It means company have huge impact on the people life style. Also, Godrej focus on pollution free working. These are a few responsibilities that company consider very seriously.

Technological factor: -Technology is necessary for the success for competitive advantage and is provide power to globalization. This includes: R&D Activity Informational Technology New machinesLegal factor:-Legal factors have huge impact on the business for develop new strategies. These factors can affect, how company operates, its costs, and the demand for its products. It includes: Political stability TAX Regulation Trade Regulation Employment Laws Environment Laws Health and safety laws Employment laws Consumer lawsEnvironmental factor:-Growing awareness about climate change is affecting companies very hardly and it can be create new markets or destroy existing markets. It includes: Climate change Diseases WeatherNow a day's climate change is big issue for companies. People like to buy the products which will not be harmful for environment. Sustainability is a business issue.

Porter Five Forces

The five-forces` model developed by Michael E. Porter has been the most commonly used analytical tool for examining the competitive environment.Each of the five forces affects a firms ability to compete in a given market. Together, they determine the profit potential of a company in a particular industry.

Threat of New Entrants:Due to high capital requirements and necessity of strong marketing medium and extensive distributor and sales network, threat to Godrej from new entrants in substantially low. Also price plays important in this as refrigerators are relatively expensive thus customers buying it focus on quality and brand name more.

Bargaining Power of Buyers:Due to high competitive nature of this industry buyers have high bargaining powers as they can buy refrigerators of competitors which are relatively low priced than Godrej products. Thus Godrej should carefully and competitively price products for sustaining in market for long term.

Threat of Substitutes:Compared to past now people are working more hours and have more stressful lives, thus leaving their needs for user friendly and energy efficient refrigerators higher.

Bargaining Power of suppliers:In the refrigerator industry, most big companies outsource their manufacturing facilities to other smaller companies with a fixed term of tenure at a fixed price. Thus suppliers bargaining power for exploitation or rendering higher cost is low. But same time if suppliers stop production then companies can be forced to give in for their needs.

Rivalry among existing firms:With similar product line and close pricing, the competition in household appliances is very high. Godrej faces high competition from manufactures such as Haier and Samsung. Godrej has lost a considerable market share as these competitors produce with lower cost high quality products.

LEARNINGS FROM CONSUMER BEHAVIOUR SURVEY(USING ANNEXURE 1)EXTERNAL FACTORS- The external factors affecting the purchase decision of consumer in the age group of 20 to 40 years are:1. DEMOGRAPHIC DETAILS- Maximum budget allocated for the purchase is Rs. 30000 Consumers prefer style as to fit the home dcor.2. MEDIA HABITS- Consumers use media (TV and newspaper advertisements) to gather information. Consumers prefer to compare features and prices on the internet than visiting the outlet to compare.3. INDIAN CULTURE- People prefer to buy on auspicious occasions like Diwali and Navratre. No one wants to buy a black refrigerator. Bright colors are preferred. Indian vegetarian people look for more vegetable box space whereas non vegetarians look for spacious deep freezers.4. FAMILY- Advice of family members like parents and spouse and non family members like friends play an important role in deciding the purchase decision. Word of mouth by others plays a negligible role.5. SOCIAL CLASS- All the classes look for value for money. Many consider refrigerators with the latest features that fit the dcor of their houses and their living standards.6. CELEBRITIES AND OTHER INFLUENCERS- Consumers are heavily influenced by the celebrity endorsing the brand. The updated sites of the brands and the convincing salesmen in the showrooms also influence purchase.INTERNAL INFLUENCES-The internal factors affecting the purchase decision are:1. NEED FOR THE REFRIGERATOR- Refrigerator is a utilitarian product consumed to satisfy the physiological need of the consumers. Some consumers have bought high end refrigerators. This is done so as to impress others as seen using a stylish and high end product and to show off.2. PERSONALITY OF THE BUYER- A risk adverse person will buy a tried and tested product, whereas a person who is a risk taker will buy an innovative product. A person who is an extrovert and will want to show off to others will buy a high end product, whereas a person who is asking for a satisfactory number of features will ask for a product that will provide him value by paying the minimum price.3. LEVEL OF INVOLVEMENT WITH THE PURCHASE- Refrigerator is a high involvement product for all the respondents and all the consumers generally consults with others and also compares the features before purchasing.4. ATTITUDE OF THE CONSUMERS TOWARDS THE REFRIGERATORS- If a buyer is loyal to a particular brand and has a positive emotional reaction towards that brand, then it is very difficult for the other competitors to make him purchase their products. Consumers prefer frost free refrigerators as they are considered to be hassle free. Double door refrigerators are considered more useful and stylish than single door refrigerators.5. LIFESTYLE AND LIVING STANDARD OF THE BUYER- Buyers having a simple lifestyle will opt for economic refrigerators and will be much more price sensitive. Buyers leading a lavish lifestyle will opt for expensive refrigerators with the latest features.6. POSITIONING OF A PARTICULAR BRAND IN THE BUYERS MINDS- LG is positioned having a very wide network of service centres all over the country. So, LG provides better after sales services than others. Samsung is the market leader in electronics and hence is worth buying. Videocon is considered as an economical brand.In this perceptual map, we have taken after sales service and Brand Value of the companies as the two axis.

Brand ValueServiceWhirlpoolLGSamsungGodrejElectroluxPanasonic2.521.510.500.511.522.5-0.5-1-1.5-2-2.5-0.5-1-1.5-2-2.5Targeted Positioning

Clearly in our survey we found that the customers are attracted towards the Brand Value of the Company and also gives much weightage to the after sales service provided by the companies.In the present scenario Godrej offers a good after sales service for all the consumer durables but doesn't enjoy a great Brand value in it. So , we believe that Godrej needs to focus more about creating their Brand Value and also provide wide availability of after sales service in the country.The Process of New Product Selection

During our survey for refrigerator in tier-2 and tier-3 cities, we found that these cities are provided with electricity for only 12-16 hours in a day. Due to this, they were not able to preserve their food items and get cold water.Moreover research suggests that in a family of 4 members on an average about 50-60 times refrigerator is opened only to drink water( considering refrigerator is opened twice for drinking water once). This directly effects the cooling procedure of the refrigerator. So, we came up with an idea of providing a separate water storage unit , with a capacity of 25 litres on the top of the refrigerator unit.We also found that middle class families are more concerned with cleaning their drinking water utensils regularly, so we decided to provide a detachable storage unit which could be cleaned easily.With separate water storage unit the average number of times refrigerator opens reduced to 10-15 in a day. This has helped us in providing a product which could keep their food items fresh for long time even in long power cuts.Also we are providing the latest frost free technology first time below a price tag of INR 15000 in India. This product will be called as cool-m-cool.Objectives:

The marketing plan forms the basis for the introduction of an innovative product by Godrej, which is one of the well-known brands in India. According to 2012 report of CDIA, the consumer durable industry as a whole is growing at a rate of 8% per year in India, whereas Refrigerator industry is growing at a rate of about 11.5% per annum (Source: Euro Monitor, 2011), in India. Also, the average income level in India is expected to triple by 2025, and as a result, urban and semi urban consumption expenditure is expected to rise 62% by 2025, compared to 43% in 2006. Our new product Cool-m-Cool is an innovative refrigerator by Godrej. This product is designed for middle class and lower middle class customers. As Godrej has always been known for its quality, innovative and customer-oriented products, Cool-m-Cool will help us to grow by leaps and bounds in the coming years.As India is growing fast from lower class to lower middle class and middle class, it is expected that the lower middle class and middle class sector will increase by 5 times by 2025. Also, according to Euro Monitor 2011 report, Indian refrigerator market accounted for sales of 13.2 million units in 2013 and the sales volume is growing at a rate of 11.5% per year. Godrej, as the leading Indian brand in refrigerators, holds 4th position with market share of 18%. Godrej has sold about 2.37 million units of refrigerators in 2013-2014 FY. With the launch of Cool-m-Cool, we are targeting to sell 2.94 million units by the end of year 2014-15 with a sales volume of 3 lacs units of Cool-m-Cool and increasing our market share to 20%. The Frost Free technology at a lower price is also a plus point for Cool-m-Cool. We are expecting that smaller size with almost all facilities is going to attract middle class and lower middle class customers. Parameters2014-2015 (Exp.)2015-2016 (Exp.)Growth during year 1 (Exp.)2016-2017 (Exp.)Growth during year 2 (Exp.)

Sales Volume3 lacs3.5 lacs16.67%4.1 lacs17.14%

Revenue420 cr490 cr16.67%574 cr17.14%

Individual Market Share2%2.07%3.5%2.11%1.93%

Marketing StrategyPositioning StatementOur product COOL-M-COOL will be positioned on its water storage unit AQUA KOOL. The concept highlighted here is a separate water storage unit to provide better and efficient cooling to products kept inside refrigerator unit. Each family opens the refrigerator approx. 50-60 times daily just to drink water. This in turn affects the cooling process of the refrigerator. So, if we have a separate unit for water storage, there will be no need to open the refrigerator door for water, and this will result into better cooling.Bull's Eye Model

POD (Point Of Difference)

Detachable water container with water dispenser Larger vegetable and fruits storage area

POP (Point of Parity)

Provide Cold Water and keep Food Fresh Stay Cool Technology

BRAND MANTRA

Refrigerators that redefine COOL

SUBSTANTIATORS (RTB)

56 years of experience in refrigerator's market Growing profile of Godrej Godrej Stocks

VALUE/PERSONALITY CHARACTER

Expression Empathy Experience Progressi

Experience ProgressionGrowing profile ofGodrej StocksGodrejBrand MantraRefrigerators that redefine COOLValues/Personality/CharacterVisual identitySubstantiators/RTBPOPPODEmpathyExperienceDetachable water container with water dispenserLarger vegetable and fruits storage areaStay Cool TechnologyProvide Cold Water and keep Food Fresh56 Years of experience in refrigeratorsMulti-colour logo

Fig: Brand Positioning Bulls Eye for Godrejs cool-m-cool refrigerator

Action PlansPRODUCT STRATEGY

THE UNIQUE SELLING PROPOSITION: The unique selling proposition for our product COOL-M-COOL will be its water storage unit AQUA KOOL. The concept highlighted here is a separate water storage unit to provide better and efficient cooling to products kept inside refrigerator unit. Each family opens the refrigerator approx. 50-60 times daily just to drink water. This in turn affects the cooling process of the refrigerator. So, if we have a separate unit for water storage, there will be no need to open the refrigerator door for water, and this will result into better cooling.OBJECTIVE: This new product is designed to attract middle class and lower middle class families ensuring comfort, low costs, less capacity but offering more space for vegetables and fruits. A perfect refrigerator for a small and happy family!Godrej holds on to its brand value. The name has a good reputation and is associated with a high customer loyalty.Our sales objective would to be to achieve a 1st year unit sales volume of 2lakhs and increase it to 3 lakh units in the next year.To make sure that our new product is a success in the market, the following strategy will be adopted:PRODUCT LINE: 1) We can add an inbuilt water purifier in the water dispenser to further ensure pure water.2) A refrigerator having more shelves which are adjustable and have detachable disks can be introduced for more customer convenience. VARIANTS: Since Godrej brought in innovation in its design and image by acquiring a youthful tech image in 2011, its COOL-M-COOL brand will also feature designs and colours adding on to the existing image. We believe in designing by curiosity. The refrigerator will be launched in silver-grey, red and pearl white colours. The refrigerator will be available in 2 capacities 150+25 litres( 25l for the cool-M-cool tank) and 175+25litres which will be available in the price range of 12000-15000.LABELLING & PACKAGING: We will be using stretch hood film packaging and shrink wrapping on the cardboard packaged refrigerator. Stretch-hood packaging provides benefits such as better load stability, flexible adaptation to load height, width and depth and weather protection (rain, dirt and dust-proof). Shrink-hood also allows clarity for easy barcode reading, quality control and retail display. It will further reduce storage space and wastage. This packaging helps reduce inventory losses as the transparent packaging allows the product to be displayed without removing the cover and hence preventing any damage to the product. Shrink packaging will increase the cost of packaging by almost 20 per cent as compared to the packaging used before but we will make sure that we do not pass this additional cost to the consumers. The price of the refrigerator is inclusive of any costs to be paid by the consumer. To reduce the packaging costs, we will work out ways to locally manufacture the packaging material. All the required energy and other labels will be mentioned both on the catalogue and the product to ensure full transparency. The allocated budget for packaging would be around 80 million for an year which is covered under the manufacturing costs.WARRANTIES & GUARANTEES: We will be giving 1-year warranty on refrigerator and 5years compressor warranty.PROMOTIONAL STRATEGYObjective To achieve 60% product awareness among the target audience for the 1st year and establish a market share of 2% within the first year of operation.Design of Communication and Media mix-The total budget allocated for promotion of our product is Rs. 8 Crores. The various methods and means to promote our product are categorized below.Promotion MediumBudget (In INR)

Print Media (10 newspapers per state for 1 month)3 crore

Hording (500 hording for 1 month)2 crore

Mobile van (3 days at the time of launch)30 lacs

Title sponsorship during various events1 crore

Miscellaneous (Includes Company website, social networking sites, etc)70 lacs

Total7 crore

Add: Agency Cost (15%)1 crore

Total Cost8 crore

Advertising a mass media approach to promotionPrint media The budget allocated for this medium is Rs. 3 Crores. In the initial one month, we will provide advertisements depicting the salient features of our product in the leading newspapers of respective states. We can cover around 10 newspapers (both English and Hindi medium) per state under our budget. Direct marketing - taking the message directly to the consumerPOINT OF SALES DISPLAYHoardings and billboards will be put up to position our product at the top of the mind of users. The budget allocated for this medium is Rs.2 Crores. For the first one month, we will put up a total of 500 hoardings all over the target cities.

USE OF MOBILE VANSTo indulge the people, mobile vans showcasing our product will be circulated. The budget allocated for this medium is Rs. 30 lakhs. For three days after the launch of our product, the vans will cover areas with less internet availability and other areas. Public relations - using the press to your advantageTITLE SPONSORSHIP DURING EVENTSThe total budget allocated for this medium is Rs. 1crore. Prominent events are vehicles for companies to associate their names and products with something that has a certain prestige factor and a captured audience with recognizable demographics.As many people buy refrigerators during auspicious occasions and festivals, we can also host kiosks at events during the festivals like Durga Puja, Diwali etc which will signal our product.Digital marketing new channels are emerging constantlyCOMPANY WEBSITES-All the information about the features of our basic product and the variants will be made available on the website. This will take into account the fact that many people compare features and prices of relatively similar refrigerator products on the internet rather than going to the outlet.SOCIAL MEDIA APPLICATIONS-Updating information about the product and advertisements on social platforms like face book and twitter will capture the internet using population in a much easier way.The total budget allocated for this medium is Rs. 70 lakhs.To this we add the advertising agency cost of Rs. 1 Crore.

ANNEXURE

Annexure 1:Consumer Behavior Survey Result:

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