PROJECT REPORT

ON

GODREJ REFRIGERATOR

SUBMITTED TO:

SUBMITTED BY:

DR. T. GHOSHAL

SUMANT KUMAR

CENTRAL UNIVERSITY OF JHARKHAND

CUJ/I/2012/MBA/34
6th semester

CONTENTS
S.no

TOPIC

1.

Introduction

2.

Market analysis

3.

Key Growth Drivers

4.

Segmentation

5.

Positioning

6.

Strategic Branding

7.

Product Market Analysis

8.

Marketing Strategy

PAGE No.

ABOUT THE INDUSTRY:

A Refrigerator is an appliance or compartment that is artificially kept cool and used to
store food and drink.
Due to competitiveness global players like LG, Samsung, Whirlpool, Haier etc. are
present in Indian market whereas some domestic players such as Videocon and Godrej
are giving them a tough competition. Refrigerator segment stands to be one of the
fastest growing commodity in the white goods segment Market. Huge potential exists
owing to the constant increase in demand Indian Refrigerator Market.
The consumer electronics and home appliances market is worth Rs 70,000crore
(around $15 billion)- Following are the Sales revenue targets of major players in this
sector:Samsung $10 Billion by 2013, LG- $10 Billion, Whirpool- $2Bbillion, Videocon- $ 5
Billion by 2015- With a $10-12 million (Rs 45-55crore) investment on a manufacturing
line (excluding cost of land), acompany can churn out 15,000 refrigerators, or 9,000
washingmachines, or 1 million mobile phones in a month. Typically any capacity
addition takes 12 months to become operational & every dollar invested on an asset,
acompany can earn a little over $3 insales
In 2012-13 more than 7.5 Million units Sold , which accounts at around Rs 11,200
crores. 46 % of urban households And 8 % of rural households in India own a
refrigerator.
The presence of different manufacturer domestically and internationally, the
competition is increasing day by day in order to give the best of the best to the
customers to sustain in this cut throat competitive market.

About the Company

Godrej Group is an Indian conglomerate . It operates in diverse sectors such as real
estate, consumer products, industrial engineering, appliances, furniture, security and
agricultural products. Godrej Group is one of the largest conglomerates based in
Mumbai , India , involved in various industries that include appliances, precision
equipment, machine tools, furniture, healthcare, interior solutions, office equipment,
food-processing, security, materials handling and industrial storage solutions. Over the
years it has diversified into various industries including: security, materials handling
and industrial storage solutions, construction, information technology, furniture, health
care, interior solutions, office equipment, appliances, precision equipment, machine
tools and food-processing.

MARKET ANALYSIS
COMPETITION
The major competitor in the refrigerator industry of Godrej are LG, Whirpool, Samsung
and Videocon. These four manufacturer comands around 80% of the market share and
currently LG is leading the industry with highest market share. Hitachi makes some of the
most advanced refrigerators but all above 300 Ltr. Their older models within this segment
have currently being discontinued. So only these companies are giving a tough competition
to Godrej.
If we were to go by what our dealers on the ground say, most of them suggested that LG
is the best buy in this segment. Now some of we will why not Whirlpool or Godrej as they
are more value for money but this might not be the case.
The model of Whirlpool is the cheapest brand. Though it has some added features, we
didn't quite like the fact that it runs on normal compressor, has a 3 star rating and isn't that
energy efficient.Godrej also runs on a normal compressor. It consumes maximum number
of electricity units out of all the models.If people are one of those who doesn't mind
compromising on the energy efficiency and star rating, then settling for Samsung won't be
a bad idea. It is bigger in capacity, lighter on pocket and has an added advantage of a digital
invertor compressor. LG has the most energy efficient model of all. It has four star rating,
consumes lesser energy, is sound on capacity and storage space. Its compressor is also
something that sets it apart and adds to its energy efficiency. One thing that truly sets this
brand apart from others is the after sales and customer service that has been reported as
highly satisfactory by many so far. While you will have to spend a little more but in the
end it is totally worth it.
Home appliances experts opine that out of all the brands LG and Samsung sell the most.
LG currently holds almost 30% of the total refrigerator sale share in India.
So we could clearly state that Godrej is having a tough competion from their competitors
and it is very difficult to survive in this dynamic environment of technology where the
rapid change is making the industry much more competitive.
Below is a quick tabular comparative analysis of some top refrigerator variants of different
brands and their features.

CUSTOMER ANALYSIS
The first and foremost reason why the company operates is to earn profit and the way they
can earn profit is through customers. Their ultimate aim at the end of the day is to either
create or gain customers and keep them until they are profitable to the company.
To do that the companies try to produce the products or offerings that people want and
value them at prices that are more attractive than the competiton.
Godrej mainly operates in the Lower segment of Socio- economic classification of the
customers which includes the skilled working class and lower middle class.
In the recent years Godrej has come up with different variants in the Direct cool
refrigerators and Forst free referigerator for the Upper middle class and upper class section
people.

SWOT ANALYSIS
Strengths:

Good Quality
Enhanced Features (Micro-oven, Control Panel, radio mp3 player etc.).
After sales Service & reverse logistics framework.
Focus on a Specific region (Consolidating positioning).

Weakness:

Contract channel Involvement.

Limited Line Offering
High Operating Cost (Initial Start-up).
Product Variety is less.
Brand Positioning. Opportunity.

Opportunities:

Improved Technology and Widening Product portfolio

E-commerce (Direct Sales & Support Service).
Manufacturing & Operations at large scale.
Redesign, Improved Brand & Quality Image.

Threats:

Highly Competitive Industry Dynamics (LG , Godrej, Samsung etc )

Economics Instability.
Stagnant Market Demand.
High End products & Services
Financial Support & Instances of false claims eroding value & Customer trust.

KEY GROWTH DRIVERS

Consumer spending on refrigerator is increasing

Change in demographics and lifestyle
Shift towards higher value products
Different strategy for rural market with more focus on volume generation.
Share of sales from modern retail channels will grow as FDI in retail licks in.
Industry will continue to remain price competitive.
Newer technologies will also lower per-unit cost.

SEGMENTATION
Demographic
Demographic segmentation is market segmentation according to age, race, religion,
gender, family size, ethnicity, income, and education. Demographics can be segmented
into several markets to help an organization target its consumers more accurately. With
this type of segmentation, an organization can categorize the needs of consumers.
Godrej segments the market on the basis of

Occupation
Income
Family size
Gender

Psychographic
Psychographic segmentation, which is sometimes called Lifestyle. This is measured by
studying the activities, interests, and opinions (AIOs) of customers. It considers how
people spend their leisure, and which external influences they are most responsive to and
influenced by. Psychographic is highly important to segmentation, because it identifies the
personal activities and targeted lifestyle the target subject endures, or the image they are
attempting to project. Mass Media has a predominant influence and effect on
Psychographic segmentation. Lifestyle products may pertain to high involvement products
and purchase decisions, to speciality or luxury products and purchase decisions.
Godrej segments the market on the basis of :-

Social class
Lifestyle

Behavioural
Behavioural segmentation divides consumers into groups according to their knowledge of,
attitude towards, usage rate, response, loyalty status, and readiness stage to a product.
There is an extra connectivity with all other market related sources.
Godrej segments the market on the basis of :

Purchase occasion
User status
Attitude towards the product or service

Geographic
Marketers can segment according to geographic criteria - nations, states, regions, countries,
cities, neighbourhoods, or postal codes. The geo-cluster approach combines demographic
data with geographic data to create a more accurate or specific profile.
Godrej segments the market on the basis of :

Rural
Semi Urban
Urban

POSITIONING
Perceptual Mapping is a qualitative method for measuring consumer or organisational
perceptions It tells us what people think about a product! Its great for giving a
diagrammatic overview of opinions on a product or service or organisation. It can simplify
market and organisational positions.

High Price

Energy efficient

Brand

Low Price

GODREJ

Whirlpool

LG

Samsung

STRATEGIC BRANDING
The company uses the company name itself as a brand for all the products across diverse
categories which leverages the brand name and is called Umbrella Branding. There are
huge cost advantages since the investment is made only in a single brand name. The
customers feel comfortable buying a new product with a familiar brand name.
Some major Strategy of branding by Godrej are: Revitalizes Master Brand strategy and identity for greater synergies across business
and brand portfolio
Creates new Marketing and Branding strategy geared to supporting the groups
revenue growth target of 25-30% annually
Outlines a new portfolio management strategy to maximize the value of the Godrej
brand and associated businesses
Adi Godrej said The Indian consumer now has a more demanding and youthful
mind-set. At Godrej we have always been at the helm of changing and redefining
the marketplace and this will now be reflected in a marketing and branding strategy
that accelerates profitable growth.
Jamshyd Godrej said Consumer insight has always been an important part of our
decision-making. We now want to make our proprietary consumer research the core
of our business strategy and create a unique consumer experience associated with
Godrej.
The revitalized corporate identity is a result of a detailed analysis of our vast
product, service and business portfolio. Using the Godrej brand as a unifier of our
businesses and people made sense because it is our most valuable asset, it cannot
be replicated and it spans all our businesses said Tanya Dubash, Executive Director
and President, Marketing.
Godrej is an Umbrella branding, so they have got a greater advantage because good
promotion of one product will carry forward to other product also which create more
brand loyalty to its entire product amongst the people. Since Godrej product
diversification in FMCG and also in real estate apart from electronic goods it enjoys
growth in all the fields because of its expansion of businesses.
Godrej has been differentiated with its competitor in the terms of
Product Differentiation:- Through its variants in product (Create your kitchen into a
dance floor)
Service differentiation:- Through Godrej Smart Care.
Image differentiation:- Ideas that make life brighter

PRODUCT MARKET ANALYSIS

The product market analysis is basically done on four
factors that are
1. Existing product Existing Market
Here the Godrej is working over the direct cool
refrigerators and to grow with this segment it has to
go with the market penetration strategy in the
existing market. They must try to sell more number
of refrigerators.
2. Existing Product New Market
In this segment Godrej has products like frost free which is yet to far from the rural
market or not so popular in the semi urban market so Godrej must for market
development in those markets
3. New Product Existing market
They still dont have some products which the rivalry is having and they are snatching
away the market share on the basis of those products only. So Godrej must try to
manufacture refrigerators like 4 door refrigerators etc. to tap into the market with new
product.
4. New Product New Market
The Godrej has a lots of opportunity to grow with the new technologies but till now
Godrej has not some of the products that the competitor is having so if the company
thinks of the market diversification then they can have a major share in the market
through innovation and proper marketing activity

PORTERS FIVE FORCE ANALYSIS

Threats of new entrants:
There is huge scope of new developments innovations and strategies that is the reason why
Godrej which once used to be market leader is now no. 4 in refrigerator sector. L.G. has
gained the customers and is the winner in terms of technology and newness

Threats of substitute product or services:

In this technology driven market there is a threat to a company from the substitutes. Like
the fan market is decreasing day by day due to ACs so the company can have threat from
substitutes of refrigerators. And people in small towns and rural areas do not consider it as
a necessary product and are unaware of its utility value. Non-availability of power.

Bargaining power of customers:

The buyer have a choice between the different variants and manufacturers so bargaining
power of the customers are increasing day by day.

Bargaining power of supplier:

Suppliers have not got many choices between the manufacturers as many of the
competitors have their own showrooms of retail stores. Godrej has industrial tie ups and
online purchase has not left any option to the supplier so that they can have high bargaining
power.

Intensity of competitive rivalry:

Competition is very high in these type of industry as the players have to be technologically
sharp and updated to perform in the market. Its the cut throat competition that the rivalry
is giving because there is no share of all in this market. All are fighting for the consumers.

MARKETING STRATEGY
Godrej tries to deliver excellent products and services that customers cant forget and they
believe this will make them hunger for more and they will come back. The value pillars
mentioned above has forged a stronger connect with the 500 million Indians whose lives are
touched by Godrej group of companies every day. To market the master brand Godrej took
the initiatives like Khelo Jito Jiyo- an exclusive TV game show where contestants
comprising 3 family pairs contend to be the one worthy pair who can win a home and
everything in it,; Godrej Power play- a consumer connect initiative which allows its
consumers to participate in the very reputed cricket league called IPL (Indian premier league)
by making their teams and win prizes while creating a lifestyle of their own using the products
in the process. And finally Go jiyo- an online 3 dimensional world. Godrej is well aware
that they have a strong and unique association in consumers mind. People prefer their
products because they are convinced of the advantages over other brands. The PODs is
created due to functionality of their products and services which delivers good performance.
Further Brand Godrej is difficult to attack; their marketing strategy is defensible hence
competitive POPs are established due to eliminated disadvantages.

4 Ps of marketing mix:
PRODUCTS:
Direct cool

Frost Free

Edge digi

Eon

Edge ZX

Chotukool

Edge pro
Edge
Pentacool V5
Axis
Neo
Cold Gold deluxe
GDC 110 S

Frost free refrigerators, as the name implies, do not require any kind of manual defrosting.
A small element is placed inside the unit that actually melts accumulating ice. This is done
without interfering with the natural cooling cycle that is required to continuously refrigerate
food.

A direct cool model produces the necessary chill through natural convection. Its not as
effective at keeping cold foods
fresh as the frost free version. This
is because the technology of the
frost free refrigerator helps to
maintain a more consistent
temperature, especially in the
humidity controlled fresh food
bins. Frost free refrigerators also
tend to scorch food with freezer
burn less often, as the build-up of
ice is not as apparent, even on
individual items.
In
2009
Godrej
designed
completely different type of refrigerator for their rural consumer who also need a cheap way
to store foods, they named it Chotukool and this was priced at about half of an entry level
refrigerator. It became a portable cooling solution that solve urgent food problem in rural
India and created a new product category and serve a new customer segment. Instead of
traditional compressors, chotukool maintains a cool temperature by installing small cooler
which functions like a laptop battery conditioning fan. Its special cap make the cold air settles
down within the container to reduce heat loss and power consumption. It is extremely
portable, with forty five litres volume within a plastic body weighing less than ten pounds.

PRICE:
Godrej has used penetration strategy to enter and sustain in the market. Penetration
pricing is a pricing strategy where the price of a product is initially set low to rapidly reach a
wide fraction of the market and initiate word of mouth. The strategy works on the expectation
that customers will switch to the new brand because of the lower price. Penetration pricing is
most commonly associated with marketing objectives of enlarging market share and
exploiting economies of scale or experience.

Godrej has targeted the rural and semi

urban population of India because they see
a huge potential in these market and to
establish themselves in the market they
priced their product very low.
They offer refrigerators below 10,000 to
15000 with variants. They have more than
10 variants of refrigerator available for
their consumers. Godrej found that only
15% of the Indian market that purchased
refrigerators, the remaining 85% didnt
because for them refrigerator is relatively
expensive. Even if they can buy one, they
wont be able to pay electricity bills.
Especially for the people who live in slum
areas, a refrigerator is too big for the
house. As a result, it brought out problem
of food spoilage in rural India.
And this also help them in differentiating the brand from other competitors.
They also offer a wide range of products for the upper segment of market to establish
themselves among the urban population of the country ranging upto 28,000.

PLACE: Godrej uses hub and spoke model for distribution. They even have strong ERP
system and are present across India through 50 exclusive showrooms in 18 cities and
through 800 dealer outlets.

Godrej Ghar
An innovative idea to answer the problems of a distribution network in rural India. A Godrej
Ghar is a multipurpose, multirole unit which will help Godrej reach the rural consumers,
connect with them, sell their products & gain market share in the process. They are allocated
to each village with a population more than 10,000 people and the location is chosen in such
a way that it is accessible to all parts of the village and the connectivity and awareness to the
place is good.

PROMOTION:
This includes all of the tools available to the marketer for marketing communication.
Promotions are done in four ways Advertising, Public relations, Personal selling and sales
promotion. Godrej has a unique way of advertising their product. For example their DVDs
advertisement is considered has funny
advertising amongst the people. They advertise
their FMCG and home appliances product
through outlets, through big banners in
important cities, through television and internet
advertisement and they have their own
company websites through which people can
get to know about all the products of Godrej and
also about their companies.
Recently Godrej products are advertised on a huge basis over television. And they are trying
to position themselves as a complete home appliance company.
Marketing Strategies that Godrej adopt:Online Advertising: Social Media Marketing
Current Rage.PR & Advertorials: To increase
visibility and brand image
Strategic Tie Ups: With Real Estate Developers,
IPL, Sporting Events
Outdoor Advertising: Events Hosting, Banners at
selective locations for some time
Television & Print Ads- Conventional Media
Marketing Strategies are used
TV/Radio/Print Ads:Creates an Engagement Model around Objectives & Resources Address
Specific Customer Needs
BLOG or be BLOGGED: Added blogging to the marketing mix, make people talk about you,
and believes PEOPLE trust PEOPLE.
They have emerged as a complete home solutions with all the products available in the brand
and markets under GODREJ INTERIO.