Session 10 Surbhi Sabharwal
PGFA1957
Product: Fan
Company: Havells India Limited
The main objective of context analysis is to observe trends and identify the opportunities in
the external environment. The most important trends for the fan industry are:
Trend Exemplar Impact
Political Trend Implementation GST on fans has reduced in
of GST order to make fans available
in the rural market at lower
rates.
Economic Trend Rise in Crude Oil Though the fan industry is
Price not directly impacted by the
increase, but this leads to
an increase in the cost of
raw material such as plastic
Social Trend : The newly- wed couples,
Change in Family today prefer to either buy
Dynamics ‘ or rent a different
apartment, this shift from
People joint to nuclear families has
perception of self led to an increase in sale of
‘ fans.
Increase in : The preferences of the
Online users young generation are
changing. With “double
DINK Couples income”, people prefer
more luxury goods and
therefore there is an
increase the luxury fan
market.
: The new generation is
becoming more conscious
about brands and thus wish
to buy goods that maintain
their status. This has led to
an increase in the sale of
premium fans.
: Parents today also prefer
buying special fans for their
kids.
Opportunities Challenges
The reduction of GST
has helped the firm
penetrate in the rural
segment.
The fluctuating
crude oil prices
come as a major
challenge as the
prices of the
fans cannot be
changed with
change in the
cost of raw
material.
With an increase in
the use of internet,
the E- Commerce is
rising. The firm must
therefore focus more
on selling online.
The increase in
disposable income of
consumer has led to
an increase in the
sale of premium
fans.
Firm must come up
with new range of
fans for kids, that are
attractive and
colorful.
 Technological IOT and smart Fans must come with IOT enabled fans are This requires a
Trend devices technologies such as the future and dedicated R&D
remote control, led lights present a great and a lot of
and facilities such as anti- opportunity as it will capital.
dust help the firm to
capture the upper Also
market segment. technologies
have a short life
cycle and thus
become
obsolete very
easily.
Legal Trend ISI certification It has become a compliance The firm has to
for all the consumer durable fulfill the BEE
goods. Each fan must satisfy needs and
the BEE star rating cannot produce
any fan that
does not comply
with the same.

Conclusion: The above identified opportunities and trends will help formulate the marketing
objectives of 2020-21.They further help identify the competitive advantage that the firm possess. In
this case, Havells have a competitive advantage since it is one of the first brand to come up with
technologically enabled fans in the premium segment.