PRESENTED BY

GR-13

ABHRA BHATTACHARYYA KUMAR GAURAV NARENDRA SINGH RANA VISHAL DEEP SHARMA VINAY KUMAR SINGH VIVEK KANT

Crompton greaves is a part of US $ 3 BILLION Avantha group. Established in India in 1937 Largest private sector enterprise in India in designing ,manufacturing and marketing electrical appliances. PRODUCTS AND SERVICES Power Systems ,Industrial Systems and Consumer products Offers wide range of products like transformers ,DC motors traction motors pumps switches ,railway signal equipments etc.

 Exports

its products to more than 60 countries. The fans and lighting businesses acquired super brand status in 2004.
The company has enough capital reserves and working capital to invest in new business. The company has well established marketing network and distribution channel.

 To

acquire a 5% market share in air condition market in India in current fiscal year(20092010) and to build up a strong customer relationship by providing them satisfactory customer services.

 The

company found new opportunities in air condition market in India. The company did its PEST and SWOT analysis. The company did PORTERS FIVE FORCES ANALYSIS and CUSTOMER ANALYSIS The company decided to launch its new product air condition "in in Indian market first in the four metropolitan cities.

 Indigenously

developed advanced sensor based Infra Eye Nichron Technology Inbuilt Stabiliser Purant Alpha System Technology Nascent Technology R-410 HCFC Free Refrigerant

 The

company is going to launch the AC in metropolitan cities of India i.e. Delhi, Mumbai, Kolkata, Chennai. Determination of the base price: The base price is fixed based on both demand and cost. Keeping in view of the stiff competition, the company has decided to adopt the competitive pricing policy

WINDOW AC LG LWA12G2DF 1Ton Air conditioner - 14190/Indian Rupee LG LWA18C1AB1 1.5 Ton Air conditioner 15590/- Indian Rupee SPLIT AC LG LMA36S1AS1 3.0 Ton Air conditioner 43290/- Indian Rupee

Market penetration pricing

As the market is large, demand is elastic and economies of scale are possible, the company has decided to keep the price as follows: WINDOW AC CGNEX 1.0 TON- Rs13999 CGBEX 1.5 TON- Rs 14399 SPLIT AC CGZNEX 3.0 TON- Rs 42199

 On

purchase of two ACs there will be a cash discount of Rs 1000/-. To make the air condition affordable to B2C of SEZ, the company has launched the installment facility to purchase the AC. The customer needs to pay installments of Rs 1000/- every month at a low interest rate of 5% in our 5:5 schemes.

ZONE DELIVERED PRICING The price is set the same at all the metropolitan cities. Psychology of pricing Bait pricing

 Geographic

Segmentation As the methods are the industrial hub there is boom in real estate sector and increasing no. of schools and colleges, Crompton greaves find an immense potential market in these cities. Demographic Segmentation INCOME The per capita income of people is high in metros and they can affordable for a middle class person, CG has targeted metro people

 Psychological

segmentation AC is becoming a social status in society. Upper middle class has become medium to heavy users of AC. Every office and college is trying to improve its infrastructure by installing AC. VALS MODEL When we consider VALS segmentation framework on the basis of consumer motivation(the horizontal dimension)and consumer resourses ACHIEVERS and EXPERIENCERS become our target customers.

Behavioral Segmentation Behavioral variables-High end users and User Status College, Institutes Apartments ,Office and Malls Medium users Household.

 In

evaluating different market segments, the firm must look at two factors, the segments overall attractiveness and the companys objectives and resourses

Target Market Selection Product Specialization -CG believes in the POD of its product and segments the market on the basis of product specialization.

Identifying a Relevent set of competitive products Crompton Greaves find no perfect substitutes for its AC. Air cooler can never capture the market of ACs
Identifying Determinant Attributes Features It provides unique features besides its basic feature of cooling. Our company claims our product feature has never been see before in market.

Benefits Crompton greaves a/c provides eco friendly cooling. Price We position our brand as the lowest price sellers of AC Points of Difference Our AC provides an inbuilt micron technology that automatically adjusts the temperature. Its nascent technology acts as a room freshener never seen in any AC before. These features make our offering distinct from our competitors.

PRODUCT The Air condition launched by Crompton Greaves assures the customers of its quantity assurance and two years warranty.
DESIGN We have come up with our latest design that occupies less space with an attractive look. FEATURES It has got unique features discussed earlier.

BRAND NAME It has got the brand the of Crompton Greaves which is world renowned. SERVICES Crompton Greaves aims at providing excellent customer service to provide customers satisfaction. We will provide 24*7 service engineers who will frequently visit the customers solve problems regarding the ACs.

PRICE We are the first to come up with an AC with the least price in AC market in metros. Discount rate is Rs 1000 for purchase of two AC(both windows & split AC).We have also introduced the concept of installment payment. Credit Terms:- For distributers, we have introduced a credit policy of 2/10,net 30. LOCATION PLACE:- CG has selected the four metros Delhi, Kolkata, Chennai, Mumbai

 Transport:-

We have a well established network. We have the experience of transporting our electric appliance across the country. The company can transport AC along with its electrical appliances. It will save the extra transportation cost. PROMOTION As CG has enough capital, it can spend on promotion of the AC. We are informative advertising to create brand awareness and knowledge of our new products

SALES PROMOTION For early sales promotion CG will provide one CFL (17 W) for every purchase of AC. EVENTS It will promote its product during various events like local sports, exhibition and trade fairs held in these cities. The above methods of promotion of the products will be able to create brand awareness among the people.

if the sales of the 1st quarter is less than 2% target share we will analyze our advertising and promotion format.we will enhance our promotional advertisement i.e prime time slot on highest viewrship channels with afternooon daily melodramas slot and ad promotions on news channel at prime time. if sales target for 2nd quarter is less than 3% we will analyze our downstream supply chain management. increase our distributors numbers as per scrutinization results.more retail outlets will be roped in selling our acs.specially trained sales force can be implemented at distributor/retailer outlet. o if sales in 3rd quarter is less than 4% target sales then we will scrutinize our pricing strategy and try to implement a price which could attract more consumers. o If we are not able to achieve our target even in the 2nd quarter of next fiscal year we will start divesting our product .