havells kitchen appliances
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Kitchen Appliances
Presented by:Group 6, S5
Aprajita Aparna Sahay (12DM-034)Inderjeet Singh(12DM-059)
Retika Bhat (12DM-120)Vineeth R Tengse(12DM-169)
Bivojit Samanta(12FN-037)Mayank Malhotra(12FN-073)
Shreya Trivedi(12HR-030)
Mornings best enjoyed fresh with
Agenda
• Kitchen appliances industry in India• Havells: Brief History• Market Scenario• Havells Kitchen appliances• Product portfolio• Physical flow• Channels• Channel management decisions• Competitor Analysis• Perceptual Map
Kitchen appliances industry in India
Purchasing Power
• Value options• Price Plus
Effective cooking modes
• Most emergent market
Purpose driven
• Handy• Time saving
Havells: Brief HistoryHavells India Ltd was incorporated as Havell's Pvt Ltd in August 1983 and converted into a public limited company in March 1992.It started its operations by producing miniature circuit-breakers and distribution boards
They entered into a technical collaboration with Christian Geyer, Germany, to manufacture miniature circuit-breakers in India. In order to manufacture ELCBs, the company entered into technical collaboration with Schiele Industriwerke, Germany
They continued their expansion by acquisitions and ventured into switchgear, cables, CFLs, lighting fixtures, consumer durables, Electric water heater, etc
In August 2011, Havells launched its range of kitchen appliances. The business is synergetic to consumer durables and will get benefit of Havells brand which has huge acceptance in fans and geyser market.
Market Scenario
Rs.4000 Crore market. Rs 2700 crore is branded
market
FYI 2012 saw a 16% increase in revenue.
Volume growth was 10.6%
Dominated by unorganised segment
which has a share of 40%
Premium category makes up about 10% of the
kitchen appliances market
Fastest growing segment was the Premium
segment which grew by ~ 40% 2008 2009 2010 2011
0
5
10
15
20
25
30
35
40
45
50
Bajaj PhilipsBraunLexusInalsaNovaMaharajaMorphy RichardsOthers
15.4
8.6
6.9
65.3
4.8
3.22.3
47.6
SalesBajajPhilipsBraunLexusInalsaNovaMaharajaMorphy RichardsOthers
Havells Kitchen appliances
Launch
Availability
Market Share
• August 2011• Premium Segment with
competitors like Bajaj , Philips, Morphy Richards, Black and Decker
• Products were initially sold in top 40 cities through 4,000 electrical goods outlets and through Havells exclusive Galaxy stores
• Targeted a market share of 5% by 2014.
• Has achieved a market share of 4% in Delhi and 2% in India.
Havells
Electrical Consumer
Goods
Fans, Dry Iron, Geyser
Kitchen appliances
Cooking Brewing Food preparation
Cables Switchgears Lighting and fixtures
Product Portfolio
Pop-up ToasterSandwich Maker
Oven Toaster GrillerElectric Cooker
Induction Cooker
KettleCoffee Maker
JuicerMixer Grinder
Juicer Mixer GrinderBlenderChopper
Mornings best enjoyed fresh with
Physical flow
Manufacturing Unit
Mother Warehouse Warehouse Godown Outlets
ChannelsH
avel
ls
Modern Trade
Exclusive stores (Galaxy)
Multi-brand (Croma,reliance digital)
Traditional trade Direct servicing
E-tailing flipkart,etc
Number of intermediaries
Galaxy Exclusive Stores
Manufacturer
Dealer
Consumer
Traditional trade
Manufacturer
Distributor
Retailer
Consumer
Galaxy stores•Land and store construction/rental• Interior design and decoration•Maintenance•Manpower•No monthly franchise fee
Investment
•The colour scheme followed is red and white. •The ceilings are “Armstrong” in colour•The tiles used for flooring are “Kajaria” tiles. •The outlay of product placement is given to the dealers.•The lighting is also done uniformly across all the Galaxy stores in India.
•The in-store advertisements are provided by Havells
Assistance by Havells
•15 verticals. Margins vary from 3% to 30%. Avg of 5%-6%•Goods are sent directly from its warehouse•Two channels to place orders: Sales rep and Online portal•Kitchen appliances are sold at MRP.•They give a margin of around 20%
Operations
Galaxy Interiors Distributor List Price and Max Retail Price
Traditional trade
No wholesalers
• Distributor-cum-Retailer in less densely populated areas
2 distributors in West Delhi and 1 in East due to varying population density• Products sold at prices lower than MRP
The margins that earned are around 20%
CHANNEL MANAGEMENT DECISION
Selecting Channel Partners
Distributor
Financially strong so that he can make an initial investment of 35-40 lakhs
Strong network of retailers in his territory
Growth and Profit record
Dealer
Location
Footfalls
Future Growth Potential
Terms and responsibilities of Channel Partners
• Price list, schedule of discount • Distributor List Price which is generally 25-30% lower than
the MRPPrice policy
Conditions of sales
• Distributors: Mostly in the terms of setting of monthly targets and its achievement
• Dealers: Assistance in store setup. Min ROI of 5%. Achievement of Sales targets
Mutual services and
responsibilities
Credit Period Cash Discount10 days 3%30 days 1%45 days No discount
Promotional schemes
Quantity
Purchase
Scheme
• To promote ordering of more volumes of a particular product• Order of 12 pieces of Juicer-Mixer-Grinder fetches a dealer/distributor 2 additional pieces
Free of Cost
• To promote selling two products• Order of 8 pieces of Juicer-Mixer-Grinder receive 4 pieces of Dry Iron free of cost
Bundle
• To promote two products together.• If the discount available on an order of 12 Juicer-Mixer-Grinder is 8% and that on an order of 10 sandwich maker is
12%, then an order of a bundle of 12 Juicer-Mixer-Grinder and 10 sandwich maker will fetch a discount of 15%.
Loyalty scheme
• Promote loyalty towards Havells• “Shehensha Scheme” – on meeting a minimum level of target, some loyalty points are rewarded and a definite
number of loyalty points are equivalent to 1% FDR (Fixed discount rate). Can be redeemed either through cash on travelling or through additional discounts
Channel Conflict:
No instance of channel conflict. Tracking mechanism in place in which the Master Carton has a code mentioned which defines the territory within which the goods in the carton is meant to be sold.
Key Performance Indicators for sales
No qualitative component in assessment of sales teamAchievement of Targets has a 100% weightage in assessment.
Post sales service
Lodge a complaint at a toll free numberWithin 48 hours the concerned service person visits the consumer and solves the problemConsumer constantly updated about the status of his complaint via smses
Competitor Analysis
Philips, Black and Decker,
Morphy Richards
Usha, Bajaj
Maharaja Whiteline, Kenstar
Havells Philips
Price At least 10% higher than Philips
Premium
Warehouse Sahibabad Noida
Margin to distributor
20% 11%
Demand Low High
Perceptual Map Steps Followed :
1. Analytics started by collecting consumer rating for Havells and the competitive products in competitive set (Phillips , Black & Decker, Morphy Richards, Bajaj , Usha)
2. Through a Survey , response were taken on Likert Scale with options (Strongly Agree, Agree, Neither Agree nor Disagree , Disagree and Strongly Disagree) for the possible attributes that consumer might consider.
Survey Link : https://docs.google.com/spreadsheet/viewform?formkey=dHYwdkxsYW53bGREWGlVYTJXTFpmMnc6MQ
Market Survey
Regression analysis
3. Regression analysis was conducted .4. X-Y perceptual map was plotted based upon two parameters which were highest in value
Detailed Analysis (excel sheet): Grp6(S5)_Havells Kitchen appliances_Regression.xsl
Havells Phillips Black & Decker
Morphy Richards Bajaj Usha
Awareness 2.36 1.53 2.93 1.89 1.6 1.92
Safe/Trustworthy 2.1 1.89 2.57 2.03 2.1 2.23
Way Ahead .. !!
• Good brand recall of Havell , But need to communicate about entry in new category.
• Customer Target- Premium• Convey Value• Make POD
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