Market Analysis of Ifb Washing Machines

8/10/2019 Market Analysis of Ifb Washing Machines

1/25

MARKET ANALYSIS OF

IFB WASHING

MACHINES

Project By:

Kaushal Kumar Sahu (2014087)

Keegan Fernandes (2014089)

Kinnari Takavale (2014090)

Krati Jain (2014091)

Lijo Mekkunnel (2014092)


2/25

I

TABLE OF CONTENTS

EXECUTIVE SUMMARY .......iii

1. INTRODUCTION ..11.1 Background ...1

1.2 Purpose of the Report ...11.3 Scope and Limitation 11.4 Sources and Methods ....2

2. ANALYSIS OF FINDINGS ...2

2.1 Market analysis of consumer durables..2

2.2 IFB Industries 42.2.1 IFB variants.. 42.2.2 Front Load Features.. 5

2.2.3 Top Load Features52.2.4 Feature comparison with leading competition..62.2.5 5 C Analysis..........72.2.6 Porters five force analysis.9

2.3 Segmentation-Targeting-Positioning..102.3.1 Segmentation 102.3.2 Targeting.. 102.3.3 Positioning... 11

2.4 Marketing mix ... 12

2.4.1 Product ..132.4.2 Price ..132.4.3 Place. 142.4.4 Promotion.14

2.5 Response of Consumer Survey..15

3. CONCLUSIONS 184. RECOMMENDATIONS....195. REFERENCES .. 20


3/25

II

LIST OF FIGURES

Figure

1 FIG 1 ....3

2 FIG 2.....4

3 FIG316

LIST OF TABLES

Table

1 TABLE 1....3

2 TABLE 2....4

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


4/25

EXECUTIVE SUMMARY

Purposes of the Report

1: To analyse the existing sales of washing machines in Goa2: To focus on sales of IFB washing machines in Goa3: To compare the sales of front load and top load washing machines of IFB4: 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 ofcustomers from the cities of Margao and Panjim. General questions were asked about theirpreferences of washing machines, purchasing habits and awareness along with the satisfactionlevel of the customer.

Main findings and conclusions

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

The promotional activities of IFB in the top load segments is quite low. There are fewer numberof top load washing machines as compared to the front load washing machines in retail storesand 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 dealersto 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.


5/25

1

1. INTRODUCTION

1.1 Background

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

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

Currently, IFB is the top seller of front load washing machines in India. But the scenario isdifferent in the segment of top load washing machines. Though IFB provides exceptionaltechnology in its products, the sale of its top load washing machines hasnt quite clicked with

the masses of India. We can attribute this predicament to certain unknown factors whoseidentification 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 washingmachines in Goa. It aims to find out reasons why the top load washing machines havent

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, LGElectronics, Whirlpool, etc. Furthermore, the analysis of the after-sales service will also addvalue to this report holistically.

1.3 Scope and Limitations

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

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


6/25

2

1.4 Sources and methods

1. Primary DataThe information is collected from the various IFB points and retail outlets in majorCities of Goa through interviews, questionnaires and observations.

2.

Secondary DataThis data is collected through websites, company reports and customer reviews.

Participants: The three members of our group visited a few IFB points in Margao andPorvorim.Sample Design: A sample of around 30 customers will be chosen and will be interviewed ontheir 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 timerather 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 sincethe past few years showing a CAGR of 10.8% in FY 2012-13. The industry is expected torise to $12.5Bn by FY 2015.(Market Share of Washing Machine Companies, 2012-13)

Market in India for IFB from the year 2003-2012Retrieved 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

FIG. 1


7/25

3

Washing Machine Cooker, Grinder PCs

Watches and clocks Electronic Fans Mobile Phones

Following is the share of major consumer goods in Indian Market according to the IndiaBrand 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 consumers buying preferences. The demand is spurred by

increasing consumer awareness and preference for trustworthy models. This shift can belargely attributed to increase in manufacture of branded products and narrowing down of

prices between brands.

Players Wise Market Share in washing machine industry, India2012-13.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 Whirlpoolare the leading players in the washing machine industry with LG leading the sector with a

FIG. 2
http://www.currentweek.com/top-washing-machine-brands-in-india-their-market-trends/http://www.currentweek.com/top-washing-machine-brands-in-india-their-market-trends/http://www.currentweek.com/top-washing-machine-brands-in-india-their-market-trends/http://www.currentweek.com/top-washing-machine-brands-in-india-their-market-trends/


8/25

4

31% market share, Samsung with 19%, Whirlpool with 13% and finally Videocon ranking4thwith 12% (Top Washing Machine Brands in India, 2012-13).

8.8% of Indians households own a washing machine. In that, urban households have a higherpenetration 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 inenormous. Besides this, there has been an increase in the cost for household workers whichhave 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 andhave a competitive advantage over others. We will also understand whether the distributionnetwork has an effect on the saleability of white goods. The consumer survey which will beconducted at a later stage will reveal whether the concept of brand loyalty exists in thisindustry.

2.2 IFB Industries

IFB Industries also known as Indian Fine Blanks Limited started its operations in India in1974 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 itsFront 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 (2014figures)

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 andSamsung (April. 2012 figures)

Mkt. share in Dishwashers and Clothes Dryer @ 95% (contribution to total companysales 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 belowgives 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.


9/25

5

2.2.2. FRONT LOAD FEATURES:

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

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

3D Wash System: A special water system with nozzles, circulates the water 360 in thedrum. 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 ofdetergent.

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

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

Foam Control System: It automatically senses the generation of foam and activates adilution 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 againstpossible damage to the machine caused by the entrance of rodents.

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

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

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

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


10/25

6

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.

Auto Softener Dispenser: A specially designed compartment allows you to add softenerbefore 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 andmore 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 thedrum 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 anddisintegrates 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 thecloth fibres. These mix with detergent and give better wash.

Dirt Sways Away: The drum sways in a gentle dance-like movement to separate the dirtfrom 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 excesssoap from the load and readies to rinse the clothes.

Pebble Drum: Give delicate fabrics the perfect wash. The pebbles in the drum preventdamages 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 ofthis the LG washing machines were compared with IFB machines of respective price range.The following key observations were made:


11/25

7

For the front loading type washing machines - 4 Digital large display, Crescent moondrum, 2D Shower system, Audio Visual indication, Self-Diagnosis, Auto imbalancesensing & Control were some of the features that were specific to IFB and act asdifferentiators.

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

price compared to LG.

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

The 5 Cs Analysis of the Indian Market for the product category:

The 5Cs 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 ideaof 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 luxuryitem, have become an everyday household appliance. Also the growing middle class

population is largely emphasizing on consumer electronic products that are more convenientto use and more efficient.

Though had IFB had serious financial issues in and it lost a considerable market share, it stillholds the premium in the mind of the consumers despite maintaining a low key. The brand'sshare of voice is abysmally low, but fortunately the brand maintains a strong aspirational pullin the mind of the consumers.IFB is one of the top brands when it comes to washing machines (automatic and FrontLoading) in India. IFB holds approximately 15% market share in the fully automatic washingmachine 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 itswashing machine range especially the front loading type. IFB was a pioneer in popularisingthe 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 earlierknown as Indian Fine Blanks. The company was specialised in manufacturing Fine Blanksand supplied to many industrial multi-nationals. The company later ventured into consumerdurables 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 togive 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:


12/25

8

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 areas follows: Whirlpool, LG Electronics India Ltd., Videocon, and Samsung. Others are Haier,Lloyd, Bosch, Godrej, Siemens, Videocon, Panasonic, Hitachi, and Sanyo.

Collaborator:

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

Context:

LG and Whirlpool are top rivals and in a rat race for the maximum market share. Threat fromthe new entrants is moderate as they need huge investment. Unbranded product could enterthe 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 washingmachines. As the middle class segment is growing, the need to acquire a washing machine inevery 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 automaticwashing machines are garnering an increasing share of the market due to reduction in pricesand higher disposable incomes. LG Electronics continued to be the leading player in homelaundry appliances in India with a share of 25% in 2013, followed closely by SamsungElectronics (23.2%). The major chunk of this growth is expected to be driven by newerhouseholds purchasing washing machines, as well as a greater number of householdsreplacing 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.


13/25

9

(Source: Euromonitor India consumer appliance report, 2013)

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 Limitedb) One of the followers: Whirlpoolc) One newer entrant in the industry: Intex

Effect of the five forces on the company


14/25

10

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: HighThere is a multitude of brands across various price points. Hence, customers have a widevariety of choices.

Availability of Substitutes: High

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

Competitive Rivalry: HighThere 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.

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 thisclass of people, who are insecure, status oriented and approval seeking. They are usuallyresource constrained. They try to emulate purchases of wealthier people. The washingmachine company marketing departments target buyers who buy products during festivalslike 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 acapacity 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 middleclass and upper middle class is targeted.

Upper middle class: Target is urban population. They Newly Married Couples or familyformed .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.


15/25

11

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

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

Actualizers- They are status oriented, successful, active, take charge people. Their purchasereflects 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 comparedwith other emerging markets or developed countries. Indias market is a large diverse one and

the consumption level of middle class people is sign of beginning of great sales in India. Thewashing machine market in India has seen a healthy growth of CAGR 11% for the last fiveyears. The fully automatic and semi-automatic sub category is growing at the rate of 40% and17% 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 itswashing machine range especially the front loading type. IFB was a pioneer in popularizingthe frontloading washing machines into the Indian market. In the Rs 20,000 crore Indianconsumer 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 technologycollaboration 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 washingmachines in the country. But in 1997, Bosch severed its ties with IFB. Despite thetermination of the JV, IFB was able to hold on its own. The brand was able to maintain itsimage 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 strongaspirational pull in the mind of the consumers.

IFB is a brand which is priced exorbitantly high. Its washing machines are priced more than50% compared to the competitors. But the question is whether IFB can maintain thepremiumness without adequately spending on brand promotion. Almost all the major globalbrands 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 onlythe 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 numberof nuclear families; increase in number of working mothers the demand for washing machineraised 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 lowerthe time spent on daily house works. A fully automatic washing machine is perfect for this


16/25

12

situation. This is why sales of automatic washing machine are growing rapidly. Indian marketis moving towards high end customized products. Consumers need products that areconvenient for their home and work. This is why more and more innovations are beingintroduced to this industry recently. IFB is in front of other companies on bringing newinnovations. 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 Loadingcapacity 5 kg (Washing) INTERIOR BODY Stainless Steel. This washing machinecompletes many requirements of the consumers. Universal Drive, Energy Saving, PartialAqua Spa, Hot Water Wash, Digital Control these are also some of the features introduced byIFB.

2.3.3 Positioning

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

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

1.

Market for Front Load Washing Machines growing at >20% whereas thepenetration is low at 7%

2.

Mkt. leader in Frontload Washing Machines with >50% market share3. Strong Brand Name4.

Good Distribution Network (Ask any housewife or even a washing machinesalesperson 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 cities6. Has diversified into other white goods as well

Besides this, there has been an increase in IFB Points - IFB points are franchise run retailstores. 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 isexpected to cross 500 numbers till the end of first quarter of FY15.Sale of companys

products through IFB Points stood at 16 per cent in Q2FY14 compared to 9 per cent in

FY13.Along with this, a few other initiatives such as export thrusts, indigenization of its toploading washing machines and new launches in other products has made the perception of thecustomer change over the years.

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

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

becomes complacent.


17/25

13

2.4 Marketing Mix

The marketing mix, earlier known as the 4 Ps, (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 howa 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 marketingmix 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 Ps; namely, Product (its quality), Price, Place (distribution and sales-forceexpenditures) and Promotion(advertising, selling). Developing an effective marketing mix isimportant 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 ascompetitor's price, competitor's product quality, competition level, forecasted sales and others.These types of variables necessitate adoption of appropriate approaches that can deal withsuch variables 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 itswashing machine range especially the front loading type. I would say that IFB was a pioneerin popularising the frontloading washing machines into the Indian market. In the Rs 20,000crore Indian consumer durable market, the washing machines contribute for Rs 2300 crore[1].

2.4.1 Product

A lot of thought and effort goes into designing a product offering. The most importantquestion, 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.

IFBstill holds the premium brand image in the mind of the consumers despite maintaining alow key. The brand's share of voice is abysmally low. Fortunately the brand maintains astrong 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.


18/25

14

Spin speed wash in washing machines it means setting the speed of rinse for hardcloths 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 toother 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 capacityensuring 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 than30-50 % 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 isvirtually impossible now since all brands are bringing their latest products to India. In such ascenario, IFB needs to reinforce its brand equity. The brand is perceived to be atechnologically 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 markedthe 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

2.4.3 Place

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

IFB has 9 IFB points in Goa and 74 stores. All over India it has 275 IFB Points but its not

evenly distributed and it can be seen that the market penetration in those states are low.


19/25

15

State-Wise Breakup of the number of IFB Points in India 2012-2013Retrieved 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 fordistribution because people visit them to make several purchases. According to Indian MarketResearch Bureau-around 8000 such melas are held in rural India every year. Also everyregion consisting of several villages is generally served by one satellite town where people

prefer to go to buy their commodities. Moreover, advertisements and promotional campaignswill be customised in different regional languages to reach larger audience. Publicdemonstrations can be really efficacious if done properly in rural areas. Print media anddigital marketing can play a major role. According to the Internet and Mobile Association ofIndia, by June 2014, claimed internet users in rural India will rise to 85 million and activeinternet users to 56 million. Word of mouth publicity plays an important role in developing

the brand. Moreover, in our corporate social responsibility programs we can adopt certainvillages to serve underprivileged children and women. This would improve our brand imagein 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).

26

0

02

2

21

9

13

8 12

031

20175

3

0

8

14

55

25

6 8

IFB Points

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


20/25

16

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).


21/25

17

BUYING BEHAVIOUR

From the above charts it is evident that the buying decision is affected greatly by the Quality andTechnological 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 products Brand Image and value for

money.

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 dont depend or rely on others recommendations.

CONSUMER RESPONSE TO PROMOTION

0

5

10

15

20

25

30

FACTORS FFECTING BUYING DECISION

Definitely Mostly Sometimes Never


22/25

18

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.

RESPONSE OF CUSTOMERS THROUGH PERSONAL INTERVIEWS

No of

respondent

How did you

know about

IFB?

Are you satisfied

with services and

product?

Do you

know

about

fully

automatic

IFB

washing

machine?

Why did you

buy

Front/Top

Loading

machine?

Do you

use any

other IFB

product?

Which other

company's

product have

you seen in the

dealer's shop?

1 TV Add Yes NotInterested

No Samsung

11%

31%

36%

22%

EFFECTIVE PROMOTION

Print Media

TV Ads

Reviews-Brochures-Internet

Word-of-mouth


23/25

19

2 Dealer Yes NoNot

InterestedNo Samsung, LG

3 News Paper Yes Best Feature No Not Remember

4 Brand Loyal Yes (fuse) vibration Yes Brand loyal No Samsung

5

Existing

customer of

WM

Want ( Trolley +Cover

Yes Best Feature WM Godrej

6 Exchange offer

Not Satisfy (after

many call no

Response from

service)

Yes

No

Option(he

has to

exchange his

machine

No

Did not see(He

got home

delivery)

7

Existing

customer of

WM

Yes No Best Feature No Not Interested

8 Dealer can't say No Best Feature Evening

9 Friend Yes Yes Brand name No Not Remember

10

Existing

customer of

WM

Not Satisfy (service

person should visit

in every 2 months

Yes Best Feature Yes LG,Samsung

CONCLUSION

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

After referring to the companys previous reports it evident that IFB needs to createpublic awareness in market & incurred heavily on promotional activities.

2 .It was observed that IFB was not having specific shops which deal exclusively withIFB products and therefore should try to come up with more of their specialisedshops.

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

Goa where IFB can reach maximum and potential customers.

IFB should think of marketing strategies and brand development by capturing asmuch display as it can in the stores for better sales.

Customer satisfaction is also necessary by giving discounts and schemes whichshould be maintained to satisfy dealers.

The brand promotional techniques like canopies, activities, free service camps, stageshows etc. should be done more regularly to improve brand awareness.

Some brand promotional initiatives like after-sales service, personal relations, directcontact with customers using distribution channel should be done in order to maintain

the relationship with old and loyal customers.

TABLE 3


24/25

20

IFB should try to improve the ambience and POP in the stores having their productsso 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 customerstrust 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 mediamarketing should be exploited to a greater extent.

IFB provides the best services to their customers after sales and should also providesoft skill and technical training to their service persons; so that they can reducecomplains against services related to their soft skill and technical knowledge.

Customers purchase more through dealers so IFB should increase their number ofdealers to increase availability of IFB products. These include setting up of more IFBPoints 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 moreconvenient 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.

Dealers discounts and schemes should be maintained to satisfy dealers.

The brand promotional techniques like canopies, activities, free service camps, stageshows etc. should be done more regularly to improve brand awareness.

Brand promotional initiatives like personal relation, direct contact with customersusing a strengthened distribution channel should be done.

Improve the ambience and POP in the stores having IFBS product so that the

customers mind can be captured and sales can be promoted.

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)


25/25

21

Top Washing Machine Brands in India. (2012-13). Retrieved fromhttp://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

Documents

Market Analysis of Ifb Washing Machines