pricing and channel

PRICING AND CHANNEL

GODREJ REFRIGERATORS

PRESENTED BY

GROUP- 3

ANKIT KAKROTRAB.H.CHANDRASEKHARRAGHAVENDRA PRANEETHSACHIN RAM MOHAN

MRP

CONTD..

DIRECT COOL

DEALER’S COMMISSION

The retailer generally gets a commission of 10-15% of the price of the refrigerator depending up on the units of refrigerator sold

COMPARISION WITH COMPETITOR ON PRICING

-3 -2 -1 0 1 2 3

Godrej refrigerators are comparatively much cheaper than that of their nearest competitors Samsung

BRAND-PRICE TRADE OFF

yes85%

No15%

CUSTOMERS OWNING REFRIGERATOR

Brands possessed by customers

Samsung ; 8

Whirlpool ; 3

Godrej ; 1

Others; 1

LG ; 4

BRANDS POSSESSED BY THE CUSTOMER

Customer priority in future

Samsung ; 9

Whirlpool ; 7

Godrej ; 1

Others; 1

LG ; 2

CUSTOMER PRIORITY IN FUTURE

Preferred pricing

<10,000 10,000-20,000 20,000-30,000 30,000-40,0000

2

4

6

8

10

12

14

Series1Series2

PREFERRED PRICING

Brand switching based on pricing

Definitely Yes Most likely Might Consider

Definitely NO0

2

4

6

8

10

12

14

Series1Series2

BRAND SWITCHING BASED ON PRICING

REASONS FOR BRAND LOYALTY

Standard Quality Good performance After sales service Past experience with the brand

DISTRIBUTION

RATIO

Godrej follows a 2-level distribution policy.

The ratio between the wholesalers and retailers is 1: 8.2 i.e. for every wholesaler there are 8 (approx) retailers.

This implies that, each wholesaler supplies to 8 retailers on an average.

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SOD EXPECTED BY CUSTOMERS

Discounts: Indian customers are very price sensitive and tend to prefer any sort of discounts provided to them. Especially during festival season, when the demand is high, discounts play a key role.

After sale service: The after sales service is quite important when it comes to consumer durables

like refrigerators. This plays a key role in customer retention and loyalty.

Customer education: All the customers may not be aware of the various technical features of the

refrigerators. Bring new products to the customers notice and educating them about the

products use.

Contd..

Availability of stock: The product range required by the customer has to be readily available. Out of stock means the customer may prefer other retailer or a brand.

Credit facility: This is expected especially in rural areas, where the customers take

loan to buy refrigerators. They can’t pay huge amounts at once and hence pay in installments.  Free home Delivery and installation: The refrigerator has to be carried to the customer’s homes and installed

properly. This has to be taken care of by the retailer as it is expected out of him

and gives the retailer an differential advantage.