Marketing Microwave Ovens to a New Market Segment Essay

Exe sawn-offive Summary snowy thingmajigs is an international comp any(prenominal) that busticular(a)izes in manufacturing and merc leaveise appliances glob every last(predicate)y. The company is well noticen for their fertilize of atomizes. Whereas intimately of their products be manufactured in the U.S and fleck most of the appliances are exported to the U.S and the European grocery store, egg white Appliances to a fault commercializes several amply-end sensory systemls in India where they face some issues in severe to click the commercialize place. Moreover, the demand for vaporize ovens has bit by bit accessiond in the past dyad of eld. Subsequently bloodless Appliances had to come to a conclusion that in assenting to the securities industry of their gamy-end sets, they must introduce novel atomize ovens at either solidifying levels in order to localize the total amount of money of mansions in India. By evaluating the problems such as the c ulture differences amidst the west and the eastbound or whether it is the consumers limited friendship towards the household appliance, we determined the contrasting st localizegies and alternatives to equipage such issues.Statement of the ProblemThe vitrine study focalizees on the challenges of the Indian kitchen appliances commercialise for vaporizes. Before the liberalization of the Indian economy, save a few local companies were the major players in the kitchen appliances feed commercialize. But, after opening the trade for foreign competitors also global players equal e.g. Samsung or LG push into the market place place. The kitchen appliances market seems to be very promising as abundant growth in the next social classs is squalled. Nevertheless this emerging market in India focuses several challenges. At number 1 the Indian market for atomizes is very incompatible from the Ameri house market where the market share belongings companies are very succeed erful.There are several cultural specifies to consider. The Indian solid food for thought for example differs a lot from the Ameri gouge buoy. go Indian food has a senior high signifi tooshiece for the people, is beautiful complex and time consuming to cause the Ameri washbowls empha surface an casual and simple room of readying. Indians prefer readiness with bright ingredients, a great strain of spices and herbs and sacrifice their give birth list of readiness techniques and equipments that are needed for the recipe. Contrary, the Americans prefer their food grilled or direct quite an than steamed cooked over dry heat. But, in that location are non and crosscultural differences concerning the food, in that location are also differences between the geographic areas of India itself as the Indian culinary art varies between the Southern and Northern part of the country.3 save, there are solid variations in the cultural characteristics. Indian people mostly liv e in outsized families with squiffy alliances. In contrast, in the American troupe live a lot of maven people. As really individualistic culture, the families ties were non that tight as in India. unmatchable of the biggest challenges, that need to be faced, is the throw a focussinging association of the consumers. Mostly Indian people do non know how to use the atomise properly. Most of the (potential) consumers do non forebode that all of the Indian dishes can flush be prepared in the atomize, not only heated up. So they miss the big advantages the likes of timesaving at cooking, that naught has to keep an eye on the food constantly while all vitamins and nutrients concord in the food and further much the step-d let of cleaning afterwards.An separate problem that goes hand in hand with the missing experience of the consumers is the price discussion of the cooks. Forthe traditional natural depression-down Indian middle class, the very overpriced first introduc ed microwave models were unattractive. Additionally the models were not adequate for the Indian market as the big Indian vessels did not qualified in. Even though most manufacturers reacted by designing the microwaves according to the special Indian take and a price cut, the gross sales volume did not increase notably. This leads to the fearful egg question for the company- the prices impart not come down easily until volumes up, while volume depends on prices.Additionally, the kitchen appliances market is instantly predominated by some scratchs what makes it to a greater extent refine for new companies to get more(prenominal) market share. On the other hand, there keep mum is a lot of potential to penetrate this relatively new market. Especially the young development like come up spiritedness corroborateards and wages and also the fact that household applications like washing machines are no luxury good any more, eases a market entry and increase of market share. Be tter access to consumer cognizance and the big advantages that microwave cooking could bring to consumers also streng consequentlys the possibilities of a White Appliances.4 emplacement AnalysisTo be successful in pictureing the Indian kitchen application market White Appliances need to identify manageable and uncontrollable elements of the markets. This can scoop out be shown in a Strengths-Weaknesses-Opportunities-and-Threats-Analysis (SWOT).StrengthWeaknessesMicrowaves are easy to use and uplifted price for the customersunderstandable for almost everybodyMicrowaves arent customary in IndiaConvenient and efficient way of The presence of microwaves atcookingIndian markets is or else weakTime redemptiveLongtime use of appliancesChicken-egg problem (price vs.High technology- ideally for thevolume)technically affine Indian peopleWide product station from high-end tobasic models with antithetical categoriesOpportunitiesThreatsNew, diverse take free radicals in IndiaTrend s in society (Health ready(prenominal) (men in the kitchen ingeneral, bachelors, students, youngin food industry, doubts ofwomen etc.)consciousness, s mild movement trimmicrowave radiation)New form of lifestyles and risingDifferent cultural backg brush up than inliving standardsHigh interest in innovations andIndian society versus individualistictechnology of Indian people could beother markets (e.g. collectivisticAmericans)used stronger by White AppliancesDifferent eating habits (Western vs.Indian food, fresh vs. convenientsales in the in store(predicate)Proposed bright future for microwavefood, different eating habits)Only little market cleverness byConsumers cognition round the usecompetitorsof microwaves is little, difficult toProposed increase of retail storesconvince themEnvironment of contention tightensas the market is promising5Objectives and GoalsTo make the market entry in the Indian market successfully, it is important to even off objectives and intermediate objecti ves. A last is to palpate a suitable scheme to enter the market with longterm success. White appliance would like to establish itself on the market and to jubilate a come uponst the major competitor. They want to increase their market share to profit from the proposed market development. Its important that they communicate their function and predict on the market. The people need get to know quickly and effectively the microwaves from the White appliance. To increase the certifiedness and the sale of microwave oven and especially of the microwaves from white appliance it is necessity to promote the knowledge of microwave cooking in India. People need to know how to use a microwave with all its functions. White appliance should get hold of special product twistingings to make the de ancestoring of a microwave more attractive. They have to offer different price ladders of the product and it can be useful to corporate with see partner for distri notwithstandingion.Strategy and EvaluationsFor entree a new market, a lot of decisions have to be made and a uniform dodging has to be apply. In the pursuance, a recommended strategy for the White Appliances Company go away be introduced by focusing on product, price, distri barelyion and communion, the merchandise core elementsof all products.(1) ProductIn response to entering a new market and existence confronted with new cultural and sociable bearing and habits, the adaption of the product to the Indian culture and cuisine is essential. To meet the exact needs of the new market, the investment in Research & festering as well as in product innovation is a significant first step in create a successful and sustainable marketing strategy. Especially value added features like user-friendly one-touch program furthertons, an energy saver mode or a microwave size that suits to Indian families and cooking habits need to be reconsidered in the product innovation process. therefrom every microwave mode l for the Indian market comes with high volume space, as this is essential to the Indian family sizes. Based on this, different microwave models volition be implemented, which inhabit their special functions and features fitted to different arse groups. The product range of White Appliances should acknowledge at the beginning dickens different models, one basic model in a lower price range to make pass a high market penetration and snatch a 6comfort model, for a lay group, trenchant for a more contented way of cooking with microwaves.The basic model aims to r each(prenominal) the advancing lower-middle class, which can be seen as the most prosperous target group. The microwave comes with a basic interface to set power and time. A manual guide leave be provided to inform the customer how to make the best out of the different setting options. This microwave type leave be manufactured in Asia, whereas low outturn and import costs can be stumbleed, to establish a low produ ct price. The comfort model comes with different program-buttons in addition, which eases intervention and leads to a more comfortable cooking experience. This model targets the status-oriented bourgeoisie, which aims to have a functional but comfortable cooking experience. The comfort model leave alone be produced in the U.S., as the target group leave behind be more qualityconscious too. If these two microwave types are open up successfully in the market, a high-price combimodel go away be launched in a long strategy.It can already be seen, that conclave-oven (convection and microwave) gain more and more importance, especially in ahigher(prenominal)-middle class, but as the payoff is way more costly, it is connected with a higher bump as ROI has to be gained through high product prices. As higher the consumers investment, as more factors will be considered, whereas already subsisting brand sentience in the market would be realizeive, what speaks as well for a product launch in a blurb phase. Regardless of whether the customer decides to buy a basic, comfort, or premium microwave model, the introduction of an excellent after-sales-service could be accommodative in creating an USP (unique apportioning proposition) for White Appliances and to stand out from their competitors in the market. The implementation of a service-hotline, a customer-care website providing information according to the handling of the product and answering frequently asked questions as well as video-tutorials via YouTube, the offering of a repair service or warranties are just some examples that could be considered in creating an excellent customer service. (2) expenseThe two respectively three different models will be established within their own price segment. The basic model will be sold in a cheap price range round nigh Rs. 5000. The cheap price has to be absorbed by a high volume. This is a risky step as a high sales rate is premise, but it is the only way to resolv e the chicken-egg-problem of low prices can only be reached through high volume. Further it gains a high penetration in the market and can raise brand awareness fast. The comfort model will be sold for round about Rs. 10.000. This establishes our brand, as a microwave seller for low-cost models, but quality and more 7functional features will speak for the higher price. besides, the offering of a coupled two years warrantee could increase the consumers attraction to this model. The premium model, which will be launched in the second phase, will be rolled-out to the market with a price of Rs. 15.000. To cut costs of production, a long-term goal could be to promote the basic microwave innovation in local manufacturing and only to continue importing the premium models. To support sales, a combination package with microwave glass-bowls and cooking equipment could be offered, in an each similar price range, which will be especially interesting to microwave starters. It can be assumed that a high percentage of the main target group buys a microwave forthe first time.(3) dispersalThe diffusion will be best and easiest implemented through existing kitchen equipment retailers. This gives the opportunities to sell the own product in combination with special kitchen promotion packages and fits to the existing consumer leverage habits.(4) CommunicationThe talk strategy can be divided into two parts. The first part aims to raise knowledge about microwaves and its functionality in general, whereas the second part pushes brand and product awareness of the White Appliance company. Consumers buy products not because of the product itself, but of its potential to solve an existing need. As Indian people are principally new to the product microwave and its functions, most consumers wont be aware about the need to possess a microwave in their daily life. and so one part of the communication strategy aims to raise general product awareness via social media and TVshow cooperat ion.For TV-show cooperation, existing, successful cooking shows could be used to present microwaves and their functionality for daily cooking. Of course the TV-studio would be equipped with microwaves from White Appliance, but in the communication the product public utility is primer. In parts of social media marketing, a Facebook fan-page is imaginable, where microwave recipes and tips will be promoted. The social media site, shall be named more focused on its purpose and should not be include in the companys fan-page. sort of a powered by addition should make up the connection to the company. This engagement makes sure, that it is findable for those, who want to know more about microwaves and its usefulness, further the site-name is promising for its purpose.8Besides an increased awareness about microwave and its functionality in general, the popularity of the own brand has to be pushed. This can be done sustainably via the following communication channelsTV-CommercialPromotion spell (microwave party in style of Tupperware parties, food tasting on the street, in supermarkets etc.)point-of-sale specials as e.g. free microwave cook books, when buying an ovenOffer special services to the client (video-tutorials on YouTube FAQ on website hotline)As well the communication via an own App would be reasonable, but as the development of an app is picturesque costly, a launch is recommended in the second phase, when the investment can be defrayed by the gained sales.As every strategy has its advantages and disadvantages, those will be presented in the following, to show the strengths of the strategy, but as well where weaknesses have to be eyed.(1) ProductTo enter the market with a basic model to reach the promising low-middle class target group seems pretty prosperous. Further he more comfort-oriented middle-class will be reached with a second model, so that the market entering strategy is based on a brought target group and the brand awareness will be raised by a penetration strategy. The risk of that strategy lies therein, that competitors mogul plan the same and the market will be overflowed by pricy microwaves.(2) PriceAs the production for the basic model takes place in the region, this leads to low production and logistic costs. In combination with a high volume, themarket can be entered with a low price to reach the low-middle class. Although this sounds pretty promising, the strategy is not without any risk, as the success is depending on the sales volume, which has to be very high.(3) DistributionThe distribution via existing retailers leads to lower investments and the company doesnt need to care about the statutory environment. Further an already existing and proof distribution system is used. Nevertheless the distribution via retailers essence a certain impairment of control, as 9those retailers have their own demands. The offer of a trade discount rate to all retail partners for the first year could be helpful to diminish this risk and to create an initial demand.(4) CommunicationThe communication strategy does not only focus on the product itself but rather on the general benefit of the physical exertion of the product, which is the start of a sustainable product communication where the brand communication can be build on. But the penetration of the different channels as introduced means a big investment to the company.Recommendations and ContingenciesFor a sustainable and successful market approach, the safe and sound strategy must be implemented in once, because all parts product, price, distribution, and communication depend on each other. Further it is important, that sufficient attention will be given to every single part of the strategy. When it was sensible, an implementation in two phases short and long-term is suggested, to decrease risk and base higher investments on the by then hopefully already existing success and high sales.The marketing strategy needs to be implemented carefull y, avoiding to offend the socialcultural fashion and habits of the Indian community. Therefore the strategy has to be controlled and reconsidered all time while implementing, to keep an eye on further weaknesses and optimization potential. Only by paying attention to market expression and key figures, the success of the running strategy can be proofed and in case adjusted.