CASE STUDY ASSIGNMENT

GOKUL DR

17XQCMD039

Microwave oven case study:

Market Segmentation

Generally White Appliance used to sell their products in India to the people who belongs to the

elite class of the society, people who had a higher income compared to the other people in the

society. Now White appliance will target new market segments .They’ll follow niche marketing

strategy in terms of segmenting the marketing. The types of Market Segments white Appliances

will target are described below.

Geographic Segmentation:

As white appliances previous target customers were high income People so their products used to

be sold in the major cities in Delhi and Mumbai. But now as there will be products for different

income groups so white appliances will catch different geographical locations of India for example

Calcutta. Food habits also differ for different states in India; for instance south Indian food habit

is completely different than North Indian food, and their usage rate as well.

Demographic Segmentation:

White Appliances demographic segmentation will mostly base on Income. Currently they have

products for High income group. Keeping the high income target group, White appliances will

target people of middle class or middle income group and aspirers (People belong to lower class

but soon will be on middle class). The reason behind choosing Middle class and aspirers are they

very important potential market. There are 90 million who belongs to middle class and 287 million

who are aspirers. So a huge number of customer can be expected as the demand for microwave

oven is rising so quickly in India. Non-Resident-Indians (NRI) who are coming back with their

western food habit are also potential target customers.

Target Market

White Appliances has traditionally sold to the high-income segment of the Indian market. But for
microwave ovens it should change its tradition to capture the market. There are different classes’

people who use microwave oven in India at present days. Already Five top consumer durable

companies including Samsung, whirlpool, LG are in the race to sell the oven. So it is risky and

tough to capture the market by only targeted to the high income segment.

Short Term Target Market:

For long term target market our aim to capture the semi urban or rural area’s market where middle

class and aspirers people where we can expand our sell and increase market share. On the other

hand most of these classes have no idea about the beneficial of using microwave oven so it is easy

to capture this vast population market by making them understand the benefit of using our

products. In this area using microwave oven is also cheap rather than their current way of cooking

instrument.

Long Term Target market:

For promotional strategy target market planning our aim is to capture the urban area’s market or

big cities market where high income people will buy our products. We keep this market in our

promotional strategy planning because we just want to capture the market beside those giant

company. In urban area microwave oven is available almost in every house. There is little scope

to expand market there so our target is to just increase sell in this segment of market.

Bachelors also fall in our target market segment, in cities and small towns bachelors are now

started using this product. So we should capture this vast number of customers. They use micro

wave oven to save their time in cooking and we should take this opportunity to place our product

in their mind to use.

Now a day’s fast food shops are seen almost every small town even in rural area where they make

foods by using old system like burner stove. If we make them understand that this products are

helpful for their business like big cities and that it will also decrease their cost and time to prepare

food, we can capture this market also and it will open a huge markets for our products.

Besides these in India at rural area most of the house wife keep they busy in kitchen almost all day

but a microwave oven can reduce their work almost half and it is a great opportunity to capture

their mind to use this products and expand sells.

So the main target market for microwave oven are especially middle class, aspirers people and

also in rural and semi urban area in India where microwave oven still not available like big cities.

To sustain in Indian market white appliance should capture this market rather than their traditional

market.

Promotional strategy

Television: White Appliances should use television as a medium in order to advertise and promote

their micro ovens. Using Television for their marketing will give them many advantages Such as

it will give them a mass coverage. They can reach a huge consumer base through television
commercials especially during sports break .India is famous for their craziness about sports

specially cricket. So a Commercials during an innings break of a cricket match will catch the

attention of million eyes.

Radio: Radio can be another good medium for white appliances promotional activity. People from

India especially who belongs to middle class still listens to radio. It will be easy to catch those

consumers. Radio is cost effective and efficient. It has great receptivity and flexibility.

Campaign: White Appliance can use some marketing campaigns to boost their sale. A debating

point is that some Indians think that a microwave oven is only good for western food and

Microwave oven isn’t friendly when is it comes to cooking Indian food. That’s why some people

use Microwave oven for reheating purpose .But this is a wrong concept, as our target customers

are from middle class and aspirers it’s expected that they know less about the features of

microwave oven or have less idea about how to use it for different purpose. In marketing

campaign’s they should show people practically how to use the oven in depth.

Pricing Strategy:

Basic Model:

The basic model is made for the middle class and aspirers people in a very low price which price
range is round about Rs 5000. For the basic model we will make compact microwave which will
mainly use for reheat food, cook light meals and make popcorn. We made this model only for them so
that they can buy it easily. The cheap price has to be taken by a high volume. Though it is a risky step
to take but it can be affective for our company. As it gains high penetration in the market, it can create
brand awareness fast.

Comfort Model:
The next model we will prefer as the comfort model and it will be sold round Rs. 10000. We will
make a solo microwave where people can grill and also cook or reheat food. Middle class people can
buy this model to make Indian food. This model is specially design to make the Indian food and this
will establish our brand.

Premium Model:

The last model we will provide is the premium model. It will be rolled-out to the market with a price
of Rs. 15000. This is a convection and solo type microwave where people can cook food quickly. 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 high income people will buy this type of microwave ovens.

Conclusion:

India is very different from the market where White Appliances has conducted their business before.
To get a greater hold to the market we have to expand our customer segment from just the elite
society. We have to deal not just with the competitors but also with the new business environment,
culture and consumer behaviours. And, on the top of that big companies like Samsung and LG are
already running their business in the market for microwave ovens, covering 54 percent Of the whole
market combined. So to penetrate and get a hold to the market with our competitors we used
diversified strategy aiming to capture customers from various sectors of the environment. We also
planned our promotions carefully, thinking of the Indian culture, values and lifestyles, and segmented
our targets according to it. With hope to be a prominent brand for the kitchen appliances in India.

Group exercise marketing plan

I was a part of this case study in class . have submitted too.

Samsung

1) Samsung didn’t sit silent and cried for growth, instead it bounced back with its innovation
tactics. Innovation is the power of all arms in the bucket list. Henceforth because of
innovative designs and its innovative approach to the market company sustained well during
Asian financial crisis.
2) As sum sung strategized its luxuries pricing factor in US, sum sung can sustain any
competition because of its competitive approach and also its innovative mindset.
3) Firms can visualise the future. i.e. forecasting the future market with right survey and
customer feedback and also giving good and unique service to the customer at right time in
the market. Statistical forecasting and also suitable stealthier would be on a right hand to
stabilise its market value during crisis.

Pepsi and coke

I was a part of this case study in class. Have submitted too..

Coach
 1) Yes i think, coach has got all chances to replicate its effect in china too, as because china has
got similar sentiment because of its cultural footprints similarities. Firm STP in papan is
more successful because of its low price strategy, or bottom in the funnel of luxury segment.
This is what made coach to adopt the market easily by competing UK’s product.
2) Yes , coach targeted on emerging middle class. I agree. Since coach identifies the segment to
target because of their difference in choices of bags and also the living style which perhaps
helped the coach to target customer well.
3) As per the given case it doesn’t affect much to the coach as because of it low budget luxury
product and also its direct target. As even during recession ladies items haven’t faced any
affect by its existence in the world. Henceforth by calculating the previous statistics, its
existence in the market can be achievable.

Harley Davidson

1) Challenges faced by Harley Davidson are surmountable. Since Harley Davidson looked to
diversify its business in china, because of the government norms it faced difficulties initially.
Yet those difficulties can be overcome by adopting to the government norms an targeting
people of china based on their needs.

Since Chinese people use motor vehicles for their working purposes. Harley would have
chosen this demand and could have manufactured tailor made vehicles for its genre of people.
Henceforth by right marketing tactics and MOU’s with government could have helped Harley
Davidson to make its mark in china.

2) As jotted down in the above, china could have chosen tailor made motor vehicles by making
manufacturing unit in china itself. This could have liaison their tariff price. Henceforth the
price drop of vehicles according to the market condition.

3) HD could have chosen JV or SP as a marketing strategy to enter china, as sentiment of china

is not similar to western world where HD is very well established brand. this route would
have made HD to enter china and gain the market slowly.

Mayo clinic

I was a part of this case study in class. Have submitted too..

Microwave oven case study

Market Segmentation

Generally White Appliance used to sell their products in India to the people who belongs to the

elite class of the society, people who had a higher income compared to the other people in the

society. Now White appliance will target new market segments .They’ll follow niche marketing

strategy in terms of segmenting the marketing. The types of Market Segments white Appliances

will target are described below.

Geographic Segmentation:

As white appliances previous target customers were high income People so their products used to

be sold in the major cities in Delhi and Mumbai. But now as there will be products for different

income groups so white appliances will catch different geographical locations of India for example

Calcutta. Food habits also differ for different states in India; for instance south Indian food habit

is completely different than North Indian food, and their usage rate as well.

Demographic Segmentation:

White Appliances demographic segmentation will mostly base on Income. Currently they have

products for High income group. Keeping the high income target group, White appliances will

target people of middle class or middle income group and aspirers (People belong to lower class

but soon will be on middle class). The reason behind choosing Middle class and aspirers are they

very important potential market. There are 90 million who belongs to middle class and 287 million

who are aspirers. So a huge number of customer can be expected as the demand for microwave

oven is rising so quickly in India. Non-Resident-Indians (NRI) who are coming back with their

western food habit are also potential target customers.

Target Market

White Appliances has traditionally sold to the high-income segment of the Indian market. But for

microwave ovens it should change its tradition to capture the market. There are different classes’

people who use microwave oven in India at present days. Already Five top consumer durable

companies including Samsung, whirlpool, LG are in the race to sell the oven. So it is risky and

tough to capture the market by only targeted to the high income segment.
Short Term Target Market:

For long term target market our aim to capture the semi urban or rural area’s market where middle

class and aspirers people where we can expand our sell and increase market share. On the other

hand most of these classes have no idea about the beneficial of using microwave oven so it is easy

to capture this vast population market by making them understand the benefit of using our

products. In this area using microwave oven is also cheap rather than their current way of cooking

instrument.

Long Term Target market:

For promotional strategy target market planning our aim is to capture the urban area’s market or

big cities market where high income people will buy our products. We keep this market in our

promotional strategy planning because we just want to capture the market beside those giant

company. In urban area microwave oven is available almost in every house. There is little scope

to expand market there so our target is to just increase sell in this segment of market.

Bachelors also fall in our target market segment, in cities and small towns bachelors are now

started using this product. So we should capture this vast number of customers. They use micro

wave oven to save their time in cooking and we should take this opportunity to place our product

in their mind to use.

Now a day’s fast food shops are seen almost every small town even in rural area where they make

foods by using old system like burner stove. If we make them understand that this products are

helpful for their business like big cities and that it will also decrease their cost and time to prepare

food, we can capture this market also and it will open a huge markets for our products.

Besides these in India at rural area most of the house wife keep they busy in kitchen almost all day

but a microwave oven can reduce their work almost half and it is a great opportunity to capture

their mind to use this products and expand sells.

So the main target market for microwave oven are especially middle class, aspirers people and

also in rural and semi urban area in India where microwave oven still not available like big cities.

To sustain in Indian market white appliance should capture this market rather than their traditional

market.
Promotional strategy

Television: White Appliances should use television as a medium in order to advertise and promote

their micro ovens. Using Television for their marketing will give them many advantages Such as

it will give them a mass coverage. They can reach a huge consumer base through television
commercials especially during sports break .India is famous for their craziness about sports

specially cricket. So a Commercials during an innings break of a cricket match will catch the

attention of million eyes.

Radio: Radio can be another good medium for white appliances promotional activity. People from

India especially who belongs to middle class still listens to radio. It will be easy to catch those

consumers. Radio is cost effective and efficient. It has great receptivity and flexibility.

Campaign: White Appliance can use some marketing campaigns to boost their sale. A debating

point is that some Indians think that a microwave oven is only good for western food and

Microwave oven isn’t friendly when is it comes to cooking Indian food. That’s why some people

use Microwave oven for reheating purpose .But this is a wrong concept, as our target customers

are from middle class and aspirers it’s expected that they know less about the features of

microwave oven or have less idea about how to use it for different purpose. In marketing

campaign’s they should show people practically how to use the oven in depth.

Pricing Strategy:

Basic Model:

The basic model is made for the middle class and aspirers people in a very low price which price
range is round about Rs 5000. For the basic model we will make compact microwave which will
mainly use for reheat food, cook light meals and make popcorn. We made this model only for them so
that they can buy it easily. The cheap price has to be taken by a high volume. Though it is a risky step
to take but it can be affective for our company. As it gains high penetration in the market, it can create
brand awareness fast.

Comfort Model:

The next model we will prefer as the comfort model and it will be sold round Rs. 10000. We will
make a solo microwave where people can grill and also cook or reheat food. Middle class people can
buy this model to make Indian food. This model is specially design to make the Indian food and this
will establish our brand.

Premium Model:
The last model we will provide is the premium model. It will be rolled-out to the market with a price
of Rs. 15000. This is a convection and solo type microwave where people can cook food quickly. 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 high income people will buy this type of microwave ovens.

Conclusion:

India is very different from the market where White Appliances has conducted their business before.
To get a greater hold to the market we have to expand our customer segment from just the elite
society. We have to deal not just with the competitors but also with the new business environment,
culture and consumer behaviours. And, on the top of that big companies like Samsung and LG are
already running their business in the market for microwave ovens, covering 54 percent Of the whole
market combined. So to penetrate and get a hold to the market with our competitors we used
diversified strategy aiming to capture customers from various sectors of the environment. We also
planned our promotions carefully, thinking of the Indian culture, values and lifestyles, and segmented
our targets according to it. With hope to be a prominent brand for the kitchen appliances in India.

Group exercise marketing plan

I was a part of this case study in class . have submitted too.

Samsung

4) Samsung didn’t sit silent and cried for growth, instead it bounced back with its innovation
tactics. Innovation is the power of all arms in the bucket list. Henceforth because of
innovative designs and its innovative approach to the market company sustained well during
Asian financial crisis.
5) As sum sung strategized its luxuries pricing factor in US, sum sung can sustain any
competition because of its competitive approach and also its innovative mindset.
6) Firms can visualise the future. i.e. forecasting the future market with right survey and
customer feedback and also giving good and unique service to the customer at right time in
the market. Statistical forecasting and also suitable stealthier would be on a right hand to
stabilise its market value during crisis.

Pepsi and coke

I was a part of this case study in class. Have submitted too..

Coach

4) Yes i think, coach has got all chances to replicate its effect in china too, as because china has
got similar sentiment because of its cultural footprints similarities. Firm STP in papan is
more successful because of its low price strategy, or bottom in the funnel of luxury segment.
This is what made coach to adopt the market easily by competing UK’s product.
 5) Yes , coach targeted on emerging middle class. I agree. Since coach identifies the segment to
target because of their difference in choices of bags and also the living style which perhaps
helped the coach to target customer well.
6) As per the given case it doesn’t affect much to the coach as because of it low budget luxury
product and also its direct target. As even during recession ladies items haven’t faced any
affect by its existence in the world. Henceforth by calculating the previous statistics, its
existence in the market can be achievable.

Harley Davidson

4) Challenges faced by Harley Davidson are surmountable. Since Harley Davidson looked to
diversify its business in china, because of the government norms it faced difficulties initially.
Yet those difficulties can be overcome by adopting to the government norms an targeting
people of china based on their needs.

Since Chinese people use motor vehicles for their working purposes. Harley would have
chosen this demand and could have manufactured tailor made vehicles for its genre of people.
Henceforth by right marketing tactics and MOU’s with government could have helped Harley
Davidson to make its mark in china.

5) As jotted down in the above, china could have chosen tailor made motor vehicles by making
manufacturing unit in china itself. This could have liaison their tariff price. Henceforth the
price drop of vehicles according to the market condition.

6) HD could have chosen JV or SP as a marketing strategy to enter china, as sentiment of china

is not similar to western world where HD is very well established brand. this route would
have made HD to enter china and gain the market slowly.

Mayo clinic

I was a part of this case study in class. Have submitted too..