MARKET ANALYSIS OF

IFB WASHING
MACHINES

Project By:

Kaushal Kumar Sahu (2014087)

Keegan Fernandes (2014089)

Kinnari Takavale (2014090)

Krati Jain (2014091)

Lijo Mekkunnel (2014092)

 TABLE OF CONTENTS

EXECUTIVE SUMMARY …………………………………….…….……………….....iii

1. INTRODUCTION ………………………………………………………….…….……1
1.1 Background ……………………………………………………………………….…..1
1.2 Purpose of the Report ………………………………………………………………...1
1.3 Scope and Limitation …………………………………………………………………1
1.4 Sources and Methods ………………………………………………………………....2

2. ANALYSIS OF FINDINGS ………..………………………………………………….2

2.1 Market analysis of consumer durables……………………………………….………. 2

2.2 IFB Industries …………………………………………………………………………4

2.2.1 IFB variants………………………………………………………………………..4
2.2.2 Front Load Features………………………………………………………………..5
2.2.3 Top Load Features…………………………………………………………………5
2.2.4 Feature comparison with leading competition…………………………………..…6
2.2.5 5 C Analysis…………………………………………………………………..........7
2.2.6 Porters five force analysis………………………………………………………….9

2.3 Segmentation-Targeting-Positioning…………………………………………………..10
2.3.1 Segmentation………………………………………………………………………10
2.3.2 Targeting…………………………………………………………………………..10
2.3.3 Positioning………………………………………………………………………...11

2.4 Marketing mix ………………………………………………………………………...12

2.4.1 Product………………………………………………………………………….….13
2.4.2 Price…………………………………………………………………………….….13
2.4.3 Place……………………………………………………………………………….14
2.4.4 Promotion………………………………………………………………………….14

2.5 Response of Consumer Survey………………………………………………………..15

3. CONCLUSIONS ………………………………………………………………………18
4. RECOMMENDATIONS…………………………………………………….………...19
5. REFERENCES ……………………………………………………………………….. 20

I
 LIST OF FIGURES

Figure

1 FIG 1 ……………………………………………………………………………………………….…..….3

2 FIG 2……………………………………………………….………………………………………..……..4

3 FIG3………………………………………………………………………………………………………16

LIST OF TABLES

Table

1 TABLE 1………………………………………………………………………………………………..…..3

2 TABLE 2………………………………………………………………………………………………....…4

3 TABLE 3………………………………………………………………………………………….................17

II
EXECUTIVE SUMMARY

Purposes of the Report

1: To analyse the existing sales of washing machines in Goa

2: To focus on sales of IFB washing machines in Goa
3: To compare the sales of front load and top load washing machines of IFB
4: To provide recommendations on improving sales of top load washing machines

The data was collected through a consumer survey which consisted of a small sample size of
customers from the cities of Margao and Panjim. General questions were asked about their
preferences of washing machines, purchasing habits and awareness along with the satisfaction
level of the customer.

Main findings and conclusions

Based on the analysis and study, most of the consumers prefer to buy a top load washing machine
and not a top load washing machine because of its compact shape and due to space constraints in
their homes. Besides this, it was also found that their awareness of IFB as a good contender in the
top load segments was low.

The promotional activities of IFB in the top load segments is quite low. There are fewer number
of top load washing machines as compared to the front load washing machines in retail stores and
IFB points. As a result of this, the customer is exposed less to products of this brand.

Recommendations

 Digital and social media marketing should be exploited to a greater extent.

 Customers purchase more through dealers so IFB should increase their number of dealers
to increase availability of IFB products. These include setting up of more IFB Points around
as well as pushing more number of products into retail stores.
 Top loader washing machine is liked by most of the customers because it is more
convenient in use and less number of customers liked front loader and semi-automatic.
Simplification of use of the top loading washing machines should be done.
 IFB need to create public awareness in market & focus more on promotional activities.
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1. INTRODUCTION

1.1 Background

IFB Industries Ltd is an India-based company. The company is engaged in manufacturing and
marketing engineering products. They operate in three segments, namely engineering, home
appliance and others. The engineering divisions are located at Kolkata and Bangalore. Goa also
has a manufacturing plant in the Verna Industrial Estate. The company's product range includes
fine blanked components, tools and related machines tools such as straighteners, decoilers, strip
loaders and others. They also provide household appliances, including washing machines,
dryers, microwave ovens, and dishwashers. In addition, they manufacture motors for white
goods and automotive applications.

During the year 2002-03, the company launched a highly sophisticated washing machine 'IFB
Digital' with advanced features in line with the latest international models. The company added
250 retail outlets in different parts of the country. During the year 2003-04, the company
launched the new model washing machines 'Elena' and new model dryer 'Easy Drier'. During
the year 2005-06, the company launched the new economy model washing machine 'DIVA'
and high-end model DIGITAL 7 kg. During the year 2007-08, they introduced Top loader
washing machines.

Currently, IFB is the top seller of front load washing machines in India. But the scenario is
different in the segment of top load washing machines. Though IFB provides exceptional
technology in its products, the sale of its top load washing machines hasn’t quite clicked with
the masses of India. We can attribute this predicament to certain unknown factors whose
identification will help to improve the sales in Goa.

1.2 Purpose of the Report

This report seeks to analyse the existing sales and the trend of purchases of washing machines
in Goa. It aims to find out reasons why the top load washing machines haven’t become as
popular as compared to the front load contraptions. This can be done by studying the
contemporary competitors and examining their strategies such as Samsung, LG Electronics,
Whirlpool, etc. Furthermore, the analysis of the after-sales service will also add value to this
report holistically.

1.3 Scope and Limitations

The report analyses the difference in sales of Top load and Front Load segments of washing
machines in Goa. Also, it identifies the current status of sales and marketing strategies of IFB
in case of other appliances like microwaves, air conditioners and refrigerators as compared to
the success of washing machines.

The study is limited to the Panaji, Porvorim and Margao outlets of IFB in Goa. Also, the sample
size of customers surveyed will not be large.
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1.4 Sources and methods

1. Primary Data
The information is collected from the various IFB points and retail outlets in major
Cities of Goa through interviews, questionnaires and observations.

2. Secondary Data
This data is collected through websites, company reports and customer reviews.

Participants: The three members of our group visited a few IFB points in Margao and Porvorim.
Sample Design: A sample of around 30 customers will be chosen and will be interviewed on
their experiences with washing machines.

2. Analysis of the findings

2.1 Market analysis of consumer durables

Consumer durables are goods that do not quickly wear out or one that yield utility over time
rather than being completely consumed in one use. Common consumer durables are watches,
washing machine, air conditioners and dishwasher and so on.

The market in India for consumer durables in market have been growing at a high rate since
the past few years showing a CAGR of 10.8% in FY 2012-13. The industry is expected to rise
to $12.5Bn by FY 2015. (Market Share of Washing Machine Companies, 2012-13)

FIG. 1
Market in India for IFB from the year 2003-2012
Retrieved from: http://www.ibef.org/industry/consumer-durables-presentation)

Consumer durables may be divided into the following categories: TABLE 1

White Goods Brown Goods Electronic Goods

Air conditioner Microwave oven TVs

Refrigerator Chimneys Audio Video

Washing Machine Cooker, Grinder PCs

 3

Watches and clocks Electronic Fans Mobile Phones

Following is the share of major consumer goods in Indian Market according to the India Brand
Equity Foundation Report.

Consumer Goods % Share

Colour TV 30%

Refrigerator 18%

Air conditioner 13%

Washing Machine 5%

Other 34%

TABLE 2

There has been an evident shift in consumer’s buying preferences. The demand is spurred by
increasing consumer awareness and preference for trustworthy models. This shift can be largely
attributed to increase in manufacture of branded products and narrowing down of prices
between brands.

FIG. 2

Players Wise Market Share in washing machine industry, India

2012-13.
Retrieved from: http://www.currentweek.com/top-washing-
machine-brands-in-india-their-market-trends/

The Washing machine market scene in India does seem to be an interesting topic to choose.
According to the recently conducted CRISL report of 2012-13, LG, Samsung, and Whirlpool
are the leading players in the washing machine industry with LG leading the sector with a 31%
market share, Samsung with 19%, Whirlpool with 13% and finally Videocon ranking 4th with
12% (Top Washing Machine Brands in India, 2012-13).
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8.8% of Indians households own a washing machine. In that, urban households have a higher
penetration of 27.5% and rural households are just about 0.6% (DuPont Research, 2013). These
statistics are likely to increase in the near future and the potential of this industry in enormous.
Besides this, there has been an increase in the cost for household workers which have lead to
the shift towards the use of washing machines.

This status of the industry will give us insight into why some companies are better off and have
a competitive advantage over others. We will also understand whether the distribution network
has an effect on the saleability of white goods. The consumer survey which will be conducted
at a later stage will reveal whether the concept of brand loyalty exists in this industry.

2.2 IFB Industries

IFB Industries also known as Indian Fine Blanks Limited started its operations in India in 1974
in collaboration with Hienrich Schmid AG of Switzerland.

Engaged in the manufacture and sale of home appliances and fine blanking components.

Home appliance products include washing machines (the company is majorly known for its
Front Load Washing Machines), microwave ovens, domestic and commercial dish washers,
dryers, kitchen appliances, and commercial laundry products.

 80% revenue comes from home appliances and 20% from engg. Division (2014
figures)

 Mkt. leader in Frontload Washing Machines with >50% market share (2014 figures)

 Mkt. share in the Fully Automatic Washing Machine segment @ 15-17% (April. 2012
figures)

 Mkt. share in Microwave Ovens @ 10%, and 3rd largest player after LG and Samsung
(April. 2012 figures)

 Mkt. share in Dishwashers and Clothes Dryer @ 95% (contribution to total company
sales just 7% and are products that are not used much by the Indian middleclass) (April.
2012 figures) (IFB Appliances, 2013)

Currently, our study focusses on the washing machines of IFB. Hence the STP analysis below
gives us an idea about how IFB functions.

2.2.1 IFB VARIANTS: IFB offers both Front load and Top load type of washing machine.
They specialize in Front load type machines. Top load are available at more economical prices
as compared to Front load.
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2.2.2. FRONT LOAD FEATURES:

Air Bubble Wash System: The air bubble wash system creates air bubbles and releases them
into the water. They penetrate deep into the cloth fibres, activate the detergent and help to
release stubborn dirt molecules.

Aqua Energie: A special built in “Aqua Energie” filter converts hard water to soft water by
breaking the bi-carbonates and reducing them to crystals.

3D Wash System: A special water system with nozzles, circulates the water 360° in the drum.
The detergent dissolves totally and penetrates the clothes deeper for a cleaner wash. During
rinsing, fresh water penetrates deep into the clothes to wash off all traces of detergent.

Crescent Moon Drum: The crescent moon shaped pattern on the inner drum is said to protect
clothes during the wash. Water curves up in a swoosh pattern and prevents the clothes from
rubbing against the wall of the steel drum hence ensuring gentle cleaning.

Auto Imbalance System: If the washing machine senses the wash load is unevenly distributed,
it will redistribute the load inside the drum to balance it and prevent it from toppling over.

Foam Control System: It automatically senses the generation of foam and activates a dilution
system to dissolve the excessive foam. This helps maintain the wash quality.

Laundry Add: This feature lets you pause and add laundry even after wash cycle has started,
giving complete control of the wash.

Protective Rat Mesh: An additional cover at the bottom of the machine protects against
possible damage to the machine caused by the entrance of rodents.

Tub Clean: Regular use of washing machine results in development of fungus and bacteria in
the tub, which leads to bad odor. This feature eliminates any impurities, scaling, bacteria and
unpleasant smell from the washing machine.

Express 15: Small loads of laundry warrant a faster wash and your IFB responds. Use the
Express 15 feature for once-worn or smaller laundry loads.

Steam Wash System: Steam wash feature turns cold water into steam with the help of a heater.
Steam molecules being smaller than water, seep deeper into the fabric and stir out even the
tiniest dirt particles.

Eco Wash: A special program that gives the best wash quality using optimum energy and water.

2.2.3 TOP LOAD FEATURES:

Aqua Spa - 7 Step Wash: Helps remove tough stains through a 7-stage wash cycle.

My Wash: The My Wash feature helps you customize the wash as per your needs and
schedule.
 6

Auto Softener Dispenser: A specially designed compartment allows you to add softener
before you start the wash.

See Through Lid: One can an eye on your laundry and wash cycle without hampering it,
through the wide, transparent lid, made of scratch free, tempered glass, which is stronger and
more durable than conventional plastic.

3D Waterfall Technology: The 3D Waterfall Technology adds dynamic movement to the

water, dissolving the detergent completely. This also makes for a great rinse action.

Swirling Tornado Wash: Powerful tornados created by 3 spinners on the bottom of the drum
help detergent act better.

Centre Punch: The Power Punch located in the centre of the drum moves up and down. This,
along with the rotating movement of the pulsator, punches the clothes up with a force and
disintegrates minute dirt particles.

Scrub Board Wash: The twin wash boards replicate the effectiveness of the scrubbing action
of hands, thus gently scrubbing the dirt off.

Air Bubble Wash System: IFB washing machine generates air bubbles that penetrate the cloth
fibres. These mix with detergent and give better wash.

Dirt Sways Away: The drum sways in a gentle dance-like movement to separate the dirt from
the clothes. This movement also helps balance the load evenly in the drum.

High Speed Revolutions: A swift spinning drains away the loose dirt, wrings out the excess
soap from the load and readies to rinse the clothes.

Pebble Drum: Give delicate fabrics the perfect wash. The pebbles in the drum prevent
damages while the unique shape prevents clothes from getting entangled.

Wash Care Programs: Different fabrics deserve different wash cycles.

2.2.4 FEATURE COMPARISON WITH LEADING COMPETITION

As already stated in prior reports, LG leads in sales share across India today. On account of
this the LG washing machines were compared with IFB machines of respective price range.
The following key observations were made:

 For the front loading type washing machines - 4 Digital large display, Crescent moon
drum, 2D Shower system, Audio Visual indication, Self-Diagnosis, Auto imbalance
sensing & Control were some of the features that were specific to IFB and act as
differentiators.

 Considering the Eco Friendly customers, IFB is a better deal as it consumes much less
water compared to LG washing machines. However, the restraining factor is its higher
price compared to LG.
 7

 Automatic drainage and rat mesh are additional features that differentiate IFB from the
products of LG and Samsung.

The 5 C’s Analysis of the Indian Market for the product category:

The 5C’s Analysis is a complete analysis of the internal and external aspects of the business.
Among the internal aspects, we have the company and the collaborators, and in the external,
we have the customers, the competitors and the context. All this helps in getting a clear idea of
what one needs to do in order to make the company grow.

Customer:

With the changing status of Indian women, washing machines, which were initially a luxury
item, have become an everyday household appliance. Also the growing middle class population
is largely emphasizing on consumer electronic products that are more convenient to use and
more efficient.

Though had IFB had serious financial issues in and it lost a considerable market share, it still
holds the premium in the mind of the consumers despite maintaining a low key. The brand's
share of voice is abysmally low, but fortunately the brand maintains a strong aspirational pull
in the mind of the consumers.
IFB is one of the top brands when it comes to washing machines (automatic and Front Loading)
in India. IFB holds approximately 15% market share in the fully automatic washing machine
and 66% market share in the Front Loading washing machine segment.

Company:

IFB is a major brand in the premium home appliances market. The brand is famous for its
washing machine range especially the front loading type. IFB was a pioneer in popularising
the Front Loading and automatic washing machines in the Indian market.
IFB is a Kolkata based company which had its origin in 1974. The company was earlier known
as Indian Fine Blanks. The company was specialised in manufacturing Fine Blanks and
supplied to many industrial multi-nationals. The company later ventured into consumer
durables under a joint venture with the German major Bosch in 1990.
The technology collaboration with Bosch gave IFB a head start. The company was able to give
consumers products with exceptional quality. IFB soon became the leader in the premium
washing machines in the country. But in 1997, Bosch severed its ties with IFB.

Competitor:

Before the liberalization of the Indian economy, only a few companies like Kelvinator, Godrej,
Allwyn, and Voltas were the major players in the consumer durables market, accounting for no
less than 90% of the market. Post liberalization, foreign players like LG, Sony, Samsung,
Whirlpool, Daewoo and Aiwa came into the picture. Today, these players control the major
share of the consumer durables market. Currently, the main competitors are as follows:
Whirlpool, LG Electronics India Ltd., Videocon, and Samsung. Others are Haier, Lloyd, Bosch,
Godrej, Siemens, Videocon, Panasonic, Hitachi, and Sanyo.
 8

Collaborator:

The companies have a vast distribution network and suppliers. The distribution is of two types
primary and secondary.

Context:

LG and Whirlpool are top rivals and in a rat race for the maximum market share. Threat from
the new entrants is moderate as they need huge investment. Unbranded product could enter the
market but as it is a big investment for the Indian crowd, possibility are quite low.
There is no recent technology that has come to, nor developed in India related to washing
machines. As the middle class segment is growing, the need to acquire a washing machine in
every household is springing up at an even faster rate.

WHAT IS THE SIZE OF THE MARKET?

Washing machines are the second largest contributor to the consumer appliances market (after
refrigerators); in FY 2013 total sales was around 7.5 million units. Fully automatic washing
machines are garnering an increasing share of the market due to reduction in prices and higher
disposable incomes. LG Electronics continued to be the leading player in home laundry
appliances in India with a share of 25% in 2013, followed closely by Samsung Electronics
(23.2%). The major chunk of this growth is expected to be driven by newer households
purchasing washing machines, as well as a greater number of households replacing their semi-
automatic washing machines with fully automatic washing machines. 6-9.9 Kg is the most
popular category in India with 72.2% share in the total sales.

(Source: Euromonitor India consumer appliance report, 2013)

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HOUSEHOLD PENETRATION OF HOME APPLIANCES

(Source: Euromonitor India consumer appliance report, 2013)

MAJOR COMPETITORS:

Electrolux, Haier, Hitachi, Onida, Panasonic, Samsung, Whirlpool, LG, Godrej, Sanyo, Sharp,
Siemens, Toshiba, Videocon and Bosch

a) The market leader: LG Electronics India Limited

b) One of the followers: Whirlpool
c) One newer entrant in the industry: Intex

Effect of the five forces on the company

Porters Five Forces Model:

Threat of New Entrants: Moderate

Most current players are global players.
New entrants will need to invest in brand, technology and distribution

Power of Suppliers: Low

Indigenous supply base is limited as most of the raw materials are imported.

Power of Buyers: High

There is a multitude of brands across various price points. Hence, customers have a wide
variety of choices.

Availability of Substitutes: High

Product cost is on the higher side. Unbranded and cheaper products can easily act as substitutes.

Competitive Rivalry: High

There are a number of established players. Also many new ones are entering.
There is rise in technological and innovative capability.
Many potential markets that are untapped are available.
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2.3 Segmentation-Targeting-Positioning

2.3.1 Segmentation

The market segmented on the bases of income: Lower class, middle class, upper middle class,
upper class.

The Low income class is targeted with products at a low price. Companies are targeting this
class of people, who are insecure, status oriented and approval seeking. They are usually
resource constrained. They try to emulate purchases of wealthier people. The washing machine
company marketing departments target buyers who buy products during festivals like Diwali
or at a particular life cycle stage. The target customer are newly married couples or people with
smaller family and young kids.

The middle class washing machines in this range are automatic machines which have a capacity
around 6 kgs. The market segments is urban. Newly Married Couples-They are better off
financially and also having a high purchase rate of consumer durables. The middle class and
upper middle class is targeted.

Upper middle class: Target is urban population. They Newly Married Couples or family
formed .Here the washing machine companies marketing departments target buyers who buy
products during festivals like Diwali or at a particular life cycle stage. The companies target
people who are regular users.

Upper Class: The washing machines in this price range are top loading (11kg) and front loading
(6.5kg).The target is Urban Population. Life style-Companies are targeting the Achievers, who
are status oriented, successful, career and work oriented. They favour established prestige
products that demonstrate success to peers. Life style-Companies are targeting the:

Achievers, who are status oriented, successful, career and work oriented. They favor
established prestige products that demonstrate success to peers.

Actualizers- They are status oriented, successful, active, take charge people. Their purchase
reflects upscale niche products.

2.3.2 Targeting

In 2013 the market size of washing machine in India is Rs 5,000 crores. Despite the healthy
growth, the penetration rate of washing machines in India is still very low when compared with
other emerging markets or developed countries. India’s market is a large diverse one and the
consumption level of middle class people is sign of beginning of great sales in India. The
washing machine market in India has seen a healthy growth of CAGR 11% for the last five
years. The fully automatic and semi-automatic sub category is growing at the rate of 40% and
17% respectively. Washing machine sales commences on the beginning of monsoon.

IFB is a major brand in the premium home appliances market. The brand is famous for its
washing machine range especially the front loading type. IFB was a pioneer in popularizing
the front- loading washing machines into the Indian market. In the Rs 20,000 crore Indian
 11

consumer durable market, the washing machines contribute for Rs 2300 crore. At one point of
time IFB was the second largest player in the Fully Automatic category. The technology
collaboration with Bosch gave IFB a head start. The company was able to give consumers
products with exceptional quality. IFB soon became the leader in the premium washing
machines in the country. But in 1997, Bosch severed its ties with IFB. Despite the termination
of the JV, IFB was able to hold on its own. The brand was able to maintain its image in the
Indian market. It had a share of 23% in the washing machine market in 2002. IFB still holds
the premiumness in the mind of the consumers despite maintaining a low key. The brand's
share of voice is abysmally low. But fortunately the brand maintains a strong aspirational pull
in the mind of the consumers.

IFB is a brand which is priced exorbitantly high. Its washing machines are priced more than
50% compared to the competitors. But the question is whether IFB can maintain the
premiumness without adequately spending on brand promotion. Almost all the major global
brands are competing for space in the Indian market.

The characteristics of Indian market are much different from what it was 10-15 years back. At
that time the washing machine was only meant for the higher class people. That time only the
big dealers of big cities were selling washing machine as it was a kind of luxury product. But
due to changes in life-style of Indian middle class families, increase in the number of nuclear
families; increase in number of working mothers the demand for washing machine raised in
the market. In India washing machine industry mainly targets working class people. Most
working class consumers are looking for a convenient-sized machine that could lower the time
spent on daily house works. A fully automatic washing machine is perfect for this situation.
This is why sales of automatic washing machine are growing rapidly. Indian market is moving
towards high end customized products. Consumers need products that are convenient for their
home and work. This is why more and more innovations are being introduced to this industry
recently. IFB is in front of other companies on bringing new innovations. IFB Diva Automatic
5 kg Washer Dryer 5 Kg front loaded automatic washing from IFB, it boasts of 10 pre-set
programs. Automatic Washer Dryer with Front Loading capacity 5 kg (Washing) INTERIOR
BODY Stainless Steel. This washing machine completes many requirements of the consumers.
Universal Drive, Energy Saving, Partial Aqua Spa, Hot Water Wash, Digital Control these are
also some of the features introduced by IFB.

2.3.3 Positioning

The brand of IFB has had a changing perspective from the side of the customers. With the
growth of the washing machine market, technology and reliability coupled with after sales
service has been growing in the eyes of the customer. Hence each brand has created a face of
its own.

A few of the positives of the company are as follows:

1. Market for Front Load Washing Machines growing at >20% whereas the penetration
is low at 7%
2. Mkt. leader in Frontload Washing Machines with >50% market share
3. Strong Brand Name
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4. Good Distribution Network (Ask any housewife or even a washing machine

salesperson of another company @ good frontload washing machines and more often
than not you will get the answer as IFB)
5. Increasing Distribution Network in Tier1, 2, 3 cities
6. Has diversified into other white goods as well

Besides this, there has been an increase in IFB Points - IFB points are franchise run retail stores.
Sales from IFB Points are more profitable compared with sales through retail channels. These
IFB points cater to Tier 1, 2, 3 cities.

As on December 2013 the company had total 481 service franchisees across India and it is
expected to cross 500 numbers till the end of first quarter of FY15.Sale of company’s products
through IFB Points stood at 16 per cent in Q2FY’14 compared to 9 per cent in FY’13. Along
with this, a few other initiatives such as export thrusts, indigenization of its top loading washing
machines and new launches in other products has made the perception of the customer change
over the years.

Recently, it portrayed itself as a supplier of washing machines only for industries. But now it
is slowly changing to satisfy customers and the initiatives put in to grow in the top load
segments of the machines are a testimony to this.

Though its products are priced exorbitantly high, IFB is reinforcing its brand equity. The brand
is perceived to be technologically superior, but that perception can fade if the brand becomes
complacent.

2.4 Marketing Mix

The marketing mix, earlier known as the 4 P’s, (but now has a few more), is a vital part of any
marketing strategy. This is a tool whereby the marketer takes decisions on what and how a
product should be, where it can be sold, how it should be priced, how it will be promoted, how
to equip the people who are responsible for selling the product. Getting the marketing mix right
is equally important for the large corporation and the small business owner.

The marketing mix problem involves setting the values of the marketing decision variables;
the four P’s; namely, Product (its quality), Price, Place (distribution and sales-force
expenditures) and Promotion (advertising, selling). Developing an effective marketing mix is
important for product planners seeking to gain competitive advantage in industrial markets.
The decision regarding specifying the marketing mix depends on a set of variables, such as
competitor's price, competitor's product quality, competition level, forecasted sales and others.
These types of variables necessitate adoption of appropriate approaches that can deal with such
variable’s nature. Marketing mix mapping is a step done to achieve this.

IFB is a major brand in the premium home appliances market. The brand is famous for its
washing machine range especially the front loading type. I would say that IFB was a pioneer
in popularising the front- loading washing machines into the Indian market. In the Rs 20,000
crore Indian consumer durable market, the washing machines contribute for Rs 2300 crore [1].
 13

2.4.1 Product

A lot of thought and effort goes into designing a product offering. The most important question,
as a marketer, a person need to ask is whether there is a need for that type of product and how
this product satisfies that need better than those of their competitors.

IFB still holds the premium brand image in the mind of the consumers despite maintaining a
low key. The brand's share of voice is abysmally low. Fortunately the brand maintains a strong
aspirational pull in the mind of the consumers.

 All variety washing machines are available in market like front loading, top loading
and automatic machines
 Washing machines are available in every capacity for example 5 kg, 7 kg and up to 9
kg.
 Some of the machines have Bio Magic filter.
 Transparent window is available is few machines.
 Memory backup wash program is new feature in washing machines.
 Heater for hot wash 5 step water temperature control is one of most important feature.
 Soak function is also available for soaking the clothes.
 Overload protection system is one of the feature of washing machine
 Delicate clothes against high water temperature in hot wash our clothes are protected.
 Some of the machines are equipped with foam control function.
 Spin speed wash in washing machines it means setting the speed of rinse for hard cloths
high speed and for delicate clothes low speed.
 Metal body and state of the art finesse in design.

The quality of product is very good compared to other brands in the market and new technology
is incorporated. The design and aesthetic looks are comparable if not superior to other washing
machines. The range of front load washing machines use 30% less electricity, 40% less water
and around half the detergent of top load washing machines of equal capacity ensuring both a
clean and green wash.

2.4.2 Price

IFB is a brand which is priced exorbitantly high. Its washing machines are priced more than
30-50 % compared to the competitors. But the question is whether IFB can maintain the
premium brand image without adequately spending on brand promotion. Almost all the major
global brands are competing for space in the Indian market. Technological differentiation is
virtually impossible now since all brands are bringing their latest products to India. In such a
scenario, IFB needs to reinforce its brand equity. The brand is perceived to be a technologically
superior but that perception can fade if the brand become complacent.

IFB washing machines in India has a starting price of Rs 16000 whereas Videocon, LG,
Samsung has washing machines starting from (Rs 7000-9000) in the fully automatic range.
This has led to declining sales of IFB washing machines. IFB as a premium brand has marked
the prices more but the threats of other brands pricing which is much lower in the same product
capacity and technical specification is acting against the brand
 14

2.4.3 Place

This is probably that element of the marketing mix that has undergone a complete change in
definition. Traditional trading and distribution models have given way to remote or virtual
channels. While reaching the customer may have become simpler, your job as a decision maker
has become that much more complex. The plethora of channels you have makes you to choose
between them.

IFB has 9 IFB points in Goa and 74 stores. All over India it has 275 IFB Points but it’s not
evenly distributed and it can be seen that the market penetration in those states are low.

0
IFB Points 22
0
6 8 26
25
21

9
55 13
8
1
0 2
14 31
0 8
3 5 20
17
AP Assam Bihar Chandigarh Chattisgarh Delhi-NCR
Goa Gujrat Haryana Himachal J&K Jharkhand
Karnataka Kerela MH MP Orissa Pondicherry
Punjab Rajastan TN UP Uttrakhand WB

FIG. 3

State-Wise Breakup of the number of IFB Points in India 2012-2013

Retrieved from: http://www.currentweek.com/top-washing-machine-brands-in-india-their-market-trends/

2.4.4 Promotion:

Annual melas (festival) organized are quite popular and provide a very good platform for
distribution because people visit them to make several purchases. According to Indian Market
Research Bureau-around 8000 such melas are held in rural India every year. Also every region
consisting of several villages is generally served by one satellite town where people prefer to
go to buy their commodities. Moreover, advertisements and promotional campaigns will be
customised in different regional languages to reach larger audience. Public demonstrations can
be really efficacious if done properly in rural areas. Print media and digital marketing can play
a major role. According to the Internet and Mobile Association of India, by June 2014, claimed
internet users in rural India will rise to 85 million and active internet users to 56 million. Word
of mouth publicity plays an important role in developing the brand. Moreover, in our corporate
 15

social responsibility programs we can adopt certain villages to serve underprivileged children
and women. This would improve our brand image in the minds of rural consumers.

CONSUMER ANALYSIS

A market research survey was conducted to understand the buying behaviours of consumers with
respect to washing machine. The sample size considered is 45. The age group of sample lies
between 20 and 30 years majorly. Furthermore, the sample set consists of 91% people staying in
nuclear families (4-5 family members).

The following observations were made:

1. Most commonly used brand of washing machines is Whirlpool, followed by LG. IFB takes
the 4th place in terms of owned washing machines. The %wise distribution of currently
owned washing machines is given below.

2. Most people today prefer Automatic washing machines, compared to Semi-Automatic

washing machine and Manual washing.

3. The source of information that people mainly depend on are Television Advertisements,
online search engines and reviews (others).
 16

BUYING BEHAVIOUR

FACTORS FFECTING BUYING DECISION

30

25

20

15

10

Definitely Mostly Sometimes Never

From the above charts it is evident that the buying decision is affected greatly by the Quality and
Technological advancements of the product. The durability and reliability of the product is also
important to the customer.

Most consumers also base their decision on the basis of the product’s Brand Image and value for
money.
 17

The third and least affecting factor is Others Recommendations. This trend indicates that
consumers have a large source of information in the form of review, articles and brochures; each
of which is available online. Hence, consumers don’t depend or rely on others’ recommendations.

CONSUMER RESPONSE TO PROMOTION

EFFECTIVE PROMOTION

11% Print Media

22%

TV Ads
31%
Reviews-Brochures-Internet
36%
Word-of-mouth

The above pie chart shows that consumers have become proactive. They base their buying on the
information collected from internet usually. The second most effective promotion technique is
TV Advertisements.
 18

RESPONSE OF CUSTOMERS THROUGH PERSONAL INTERVIEWS

Do you
know
Why did you Which other
about Do you
How did you Are you satisfied buy company's
No of fully use any
know about with services and Front/Top product have
respondent automatic other IFB
IFB? product? Loading you seen in the
IFB product?
machine? dealer's shop?
washing
machine?
Not
1 TV Add Yes No Samsung
Interested
Not
2 Dealer Yes No No Samsung, LG
Interested
3 News Paper Yes Best Feature No Not Remember
4 Brand Loyal Yes (fuse) vibration Yes Brand loyal No Samsung
Existing
Want ( Trolley +
5 customer of Yes Best Feature WM Godrej
Cover
WM
No
Not Satisfy (after
Option(he Did not see(He
many call no
6 Exchange offer Yes has to No got home
Response from
exchange his delivery)
service)
machine
Existing
7 customer of Yes No Best Feature No Not Interested
WM
8 Dealer can't say No Best Feature Evening
9 Friend Yes Yes Brand name No Not Remember
Existing Not Satisfy (service
10 customer of person should visit Yes Best Feature Yes LG,Samsung
WM in every 2 months

TABLE 3

CONCLUSION

After a proper analysis of the data received from the consumer survey, the following can be
concluded about the existing sales and the trend of purchases of washing machines in Goa.

 After referring to the company’s previous reports it evident that IFB needs to create
public awareness in market & incurred heavily on promotional activities.
 2 .It was observed that IFB was not having specific shops which deal exclusively with
IFB products and therefore should try to come up with more of their specialised shops.
 IFB needs to increase number of dealers in Goa and search for new dealers in this
region.
 They need to focus much on exhibiting their products in different location in
 19

Goa where IFB can reach maximum and potential customers.

 IFB should think of marketing strategies and brand development by capturing as much
display as it can in the stores for better sales.
 Customer satisfaction is also necessary by giving discounts and schemes which should
be maintained to satisfy dealers.
 The brand promotional techniques like canopies, activities, free service camps, stage
shows etc. should be done more regularly to improve brand awareness.
 Some brand promotional initiatives like after-sales service, personal relations, direct
contact with customers using distribution channel should be done in order to maintain
the relationship with old and loyal customers.
 IFB should try to improve the ambience and POP in the stores having their products so
that the customers mind can be captured and sales can be promoted.

RECOMMENDATIONS

Some of the Marketing strategies that IFB can use is as follows:

 Word of mouth plays significant role in advertisement. A large number of customers

trust the dealers’ word. Existing customers spread the name of the company and the
internet also makes people know more about the brand. Digital and social media
marketing should be exploited to a greater extent.
 IFB provides the best services to their customers after sales and should also provide
soft skill and technical training to their service persons; so that they can reduce
complains against services related to their soft skill and technical knowledge.
 Customers purchase more through dealers so IFB should increase their number of
dealers to increase availability of IFB products. These include setting up of more IFB
Points around as well as pushing more number of products into retail stores.
 Top loader washing machine is liked by most of the customers because it is more
convenient in use and less number of customers liked front loader and semi-automatic.
Simplification of use of the top loading washing machines should be done.
 IFB need to create public awareness in market & focus more on promotional activities.
 Need to capture as much display as it can in the stores for better sales.
 Dealer’s discounts and schemes should be maintained to satisfy dealers.
 The brand promotional techniques like canopies, activities, free service camps, stage
shows etc. should be done more regularly to improve brand awareness.
 Brand promotional initiatives like personal relation, direct contact with customers using
a strengthened distribution channel should be done.
 Improve the ambience and POP in the stores having IFB’S product so that the customers
mind can be captured and sales can be promoted.
 20

REFERENCES

DuPont Research. (2013, September). Retrieved from DuPont Research, September 2013

Euromonitor India consumer appliance report, 2013

IFB Appliances. (2013). Retrieved from http://www.ifbappliances.com/

Market Share of Washing Machine Companies. (2012-13). Retrieved from

(http://www.ibef.org/industry/consumer-durables-presentation)

Top Washing Machine Brands in India. (2012-13). Retrieved from

http://www.currentweek.com/top-washing-machine-brands-in-india-their-market-
trends/

Dr C.Anirvinna, Washing Machine and Emancipation of Women

Opportunities and Challenges in Consumer Electronics & Home Appliances, Arthur D Little,
CEAMA report