SDM Home Appliances

7/30/2019 SDM Home Appliances

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COMPARATIVE STUDY OF DISTRIBUTION

CHANNELS OF HOME APPLIANCE MARKET IN

AHMEDABAD

Guided by:Dr. Jasmin Padiya

Prof. Harshit Shah

Presented by:Zil Shah (117350592062)

Ravi Shah (117350592016)


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MAJOR PLAYERS

Indu stry Size:US$ 7.3 billion (in FY11 according to CCI)

Key Categor ies:White Goods, Brown goods and Consumerelectronics.

Competi t ive landscape:Dominated by Korean majors like LGand Samsung in most of the segments

Margin Prof i le: Low margin, dependant on volumes.

CAGR:12.8% (During FY03 to FY11 according to CCI)

KEY INDUSTRY DYNAMICS

LG

SamsungPanasonic

Sony

Videocon

Whir lpool

Sharp

Godrej


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Growth in per-capita incomeShift in culture

Access to Credit

Government investment in rural market

Growth of services industry

Innovative products at penetration price points

FACTORS INFLUENCING INDUSTRY


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RESEARCH METHODOLOGY

Research ProblemComparative study of distribution channels of homeappliance market in Ahmedabad.

Type of ResearchDescriptive Research.

Objectives To study the distribution channels of home appliances

market.

To know the availability of the product in the market. To understand how the distribution channels serve the

retailers and the consumers. To study the satisfaction of consumers and channel

members regarding distribution channels.


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Sample Size

300 Consumers & 50 Channel Members

Sample Unit

Consumers, Dealers, Retailers, Wholesalers of ConsumerDurable

Source of DataPrimary as well as Secondary data collection methods

Sampling Procedure

Convenience sampling

Method of Data Collection

One to one interaction with consumers and channel partners ofconsumer durables with the help of questionnaires.


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SWOT ANALYSIS

Strength

Established distribution

networks in both urban andrural areas

Presence of well-known brands

Organised sector hasincreased its share in themarket.

Weakness

Seasonal demand

Demand is dependent on goodmonsoons

Poor government spending oninfrastructure

Low purchasing power ofconsumers

Opportunity

Rising growth rate of GDP

Rising purchasing power ofpeople

Rapid Urbanization

Penetration level of whitegoods is lower than in otherdeveloping countries

Unexploited rural market

Threat

Higher import duties on rawmaterials

Cheap imports from Singapore,

China and other Asiancountries

Poor infrastructure


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KEY SUCCESS FACTOR

Market Positioning and Branding

Product Technology

Innovation in Advertising and Promotions

Distribution and Service NetworkAttractive Locations


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FIVE FORCEANALYSIS

Suppliers Power

High Raw MaterialPrices

Lack of Captive SourceHurting SteelProducers

Lack of Transportation

Backward Integration


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Asarwa:

Rakhiyal:

0

500

1000

1500

2000

2500

3000

3500

KrishnaEnterprise

Swastik MillStore

SarvodaySteel Co.

Ronak Co. KaushikSteel

KishoreSteel

1 2 3 4 5 6

HR (in tons)

CR (in tons)

GP (in tons)

0200

400

600

800

1000

1200

1400

1600

RajeshwarSteel

kanakratnaSteel

RushabhSteelCo.

KrishnaMetal

R.I.

Steel

PaxaalMetaland

NickleAlloys

ArshTraders

LalitSteel

1 2 3 4 5 6 7 8

HR (in tons)CR (in tons)

GP (in tons)


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KEYCHARTOF BQ & HT STEELANALYSIS:


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0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Quality ofMaterial

Price PaymentTerms

Availability ofMaterial

PromptDelivery

76.66%

70%66.66%

60%

46.66%

Manufacturers' High Importance Towards Key BuyingFactors

Percentage of Total Manufacturers


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KEYFINDINGS:

Retail Study:

After doing area wise comparison of retailers with respect to theirTotal Sales Turnover (in tonnes) we found retailers whose turnover isabove satisfactory level of our objectives. They are named below:

1. Jagdish Steel Traders

Dariyapur2. Dhara Co. CTM

3. Ganesh Steel Traders Dudheshwar

4. Kishore Steel Asarwa

5. Arsh Traders Rakhiyal

From this study we found that Essar has stack of around 50% inretail market of HR, CR & GP. Next competitor are Indian Steel andJSW steel with the stack of around 29% and 12% respectively.


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BQ & HT Steel Market Study:

In boiler industry mainly HR & BQ steel are consumed. CR steel israrely used.

Average consumption of BQ steel is around 105 tonnes per year percompany.

Mainly chemical, pharmaceutical and textile industries are catered by

manufacturers. A 515 and A 516 are the specification for a range of steels used in

the fabrication of industrial boiler.

But specially A 516 grade 70 steel plates is very popular due to theirhigh tensile and yield strength.

Quality and Price of steel are the main buying factors.


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SUGGESTIONS/ RECOMMENDATIONS

Retail Study:

Our main study is to find out retailers which can befuture company retail outlet.

And we suggest these five retailers in five differentareas who can be established as a Essar RetailOutlet.

1. Jagdish Steel Traders Dariyapur

2. Dhara Co. CTM

3. Ganesh Steel Traders Dudheshwar

4. Kishore Steel Asarwa

5. Arsh Traders Rakhiyal


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BQ & HT Steel Market Study:

There is a good market for BQ steel in Ahmedabadfor Essar Steel to look upon.

According to the specification and requirement of

Chemical & Pharmaceutical industry, production ofBQ steel should be done.

A 516 specification of steel and specially grade 70of it, should be produced and marketed more.

In production and marketing, Quality and Price ofBQ steel should be main factors.


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CONCLUSION

ESSAR has a strong retail chain which can befurther brighten/expand if they establish the retailpoints in near future to make their place on moreheight in compare to others.

As the Boiler Quality plate consumption is verymuch in use as per current scenario they can growup with this section too if they concentrate on BQ

and HT production more in compare to past.


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THANK YOU

SDM Home Appliances

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