chapter v distributors’ strategies -...

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CHAPTER V

DISTRIBUTORS’ STRATEGIES

Distributors/Dealers are channel trade partners who act as a medium to ensure

stock delivery/availability for the consumers across the geographies. The role of

these entities is absolutely critical as they help in ensuring that the product is widely

distributed and available for the end consumer. The key benefit of these entities is in

ensuring that the distribution costs are lower for the manufacturer and simultaneously

the products are available for the end consumer. The distributors and dealers operate

on a base trade margin (factored in the cost of the product by the manufacturer).

Along with the base margin the trade partners also get additional schemes/incentives

which keep on varying from time to time and product to product. The dealer could be

a retailer (selling to the end consumer directly), wholesaler (selling to other retailers

primarily) or a modern retailer (i.e. self service stores which are into both the

consumer retailing and wholesaling).

For product-focused companies, establishing the most appropriate

distribution strategies is a major key to success, defined as maximizing sales and

profits. Unless the companies are able to establish or maintain the most effective

distribution strategies, their business shall not meet their operational goal of profit

maximization.

Selecting a sales and distribution approach is the key element of a successful

business model. The sales approach more broadly the overall process of selling and

delivering products to customers at once encompasses both a company’s connection

to its customers and a significant portion of its total cost. In the marketing of kitchen

appliances also we can find the importance given to this aspect of selling. So, to

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materialize the ultimate goal of maximum profit through the creation of a satisfied

customer, the business cannot ignore the role of the distributor. The area he is

covering, the product he deals with, strategies taken by him for the promotion of the

products sales all are important for analysis in order to assess the contribution of the

distributor or dealer in the marketing of kitchen appliances. In this chapter an effort

is made to identify the nature of distribution strategies adopted by the dealers in

kitchen appliances in Kerala and also to evaluate how far the differences among them

in this respect contribute to the success of their business.

5.1 Area of Business

The geographical area in which the businesses are concentrated by the dealers

is an important factor to determine the type of strategy they followed for the

promotion of sales. If the prospective customers are located in a particular

geographical region, direct selling is more feasible than any other channel strategy.

But, if the market for goods is spread over the whole country, the company should

have sufficient number of dealers to sell the product to the widely disbursed

customers. Customers from different geographical regions of a country may be

different in their attitude and product choice. To meet their diverse needs companies

appoint dealers in the regions near to customers. These dealers render services as per

the demands of local customers and if they fail to do so, it will create dissatisfied

customers resulting in to thousands of profit. So, to know what strategies the dealers

in kitchen appliances are taken, fifty dealers were selected from urban, semi urban

and rural areas in the ratio of 2:2:1 as shown in Table T 5.1. More number of dealers

from urban and semi urban areas were selected based on the judgment that more

number of dealers in kitchen appliances is concentrated in non rural market.

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Table T 5.1

Area of Business

Area No. of Respondents Percent

Urban 20 40

Semi urban 20 40

Rural 10 20

Total 50 100 Source: Survey Data

Figure F5.1

Area of Business

5.2 Kitchen Appliances Dealt in by Distributors

Kitchen Appliance portfolio maintained by the distributors for purpose of

their business is an important factor determines their strategies. It will indirectly

reveal the profitability and marketability of products. A kitchen appliance which has

a good demand in the urban area may not find many buyers in the rural areas because

of the diversity in culture, custom, usages and purchasing power of consumers.

Moreover, the capital investment required and the distribution system needed may

40%

40%

20%

Urban Semi urban Rural

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also be different for different products, which also should be a determinant in choice

of a product by the dealer for transacting his business. Table T5.2 explains the

pattern of product portfolio maintained by dealers in kitchen appliances.

Table T 5.2 Kitchen Appliances Dealt in by Distributors

Mixer Grinder, Grinder, Refrigerator Gas Stove, Pressure Cooker

No. of Respondents Percent

All except Refrigerator 10 20

All except Grinder 10 20

All 30 60

Total 50 100 Source: Survey Data

Of the fifty dealers selected for the survey, thirty dealers transact business in

all the five kitchen appliances selected under study. Ten distributors dealing in all the

appliances except Grinder while the rest ten deal in every appliance except the

Refrigerator. So it can be inferred that majority of distributors have business in the

entire kitchen appliance which might be due to uniform rate of pay offs from their

business.

5.3 Portfolio of Kitchen Appliances – Area of Business Wise Analysis

Generally there is a conviction that rural people are economically and socially

backward, and that among them it is difficult for companies to find market for their

relatively high priced items. In kitchen appliance industry the price profile of

different products are not same because of which dealers in kitchen appliances are in

pursuit of the strategy of keeping different product portfolios by making the product

with the socio economic profile of the customers. Diversity among the dealers in the

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distribution of kitchen appliances in different markets can be understood from Table

T 5.3

Table T 5.3

Portfolio of Kitchen Appliances – Area of Business Wise Analysis

Type of Kitchen Appliances

Area of Business Total

Urban Semi Urban Rural

No. % No. % No. % No. %

All 10 50 15 75 5 50 30 60

All except Refrigerator - - 5 25 5 50 10 20

All except Grinder 10 50 - - - - 10 20

Total 20 100 20 100 10 100 50 100

Pearson Chi-Square 3.125 P Value - 0.210 Source: Survey Data

Figure F5.2 Portfolio of Kitchen Appliances – Area of Business wise Analysis

0

10

20

30

40

50

60

70

80


All

All except Refrigerator

All except Grinder

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Analysis of the Table T5.3 reveals that there is difference in the distribution

of kitchen appliances by dealers among various markets. Relatively high priced

products such as, Refrigerator and Grinder were not sold by some dealers in various

markets. When 50 percent of the distributors from rural areas are not dealing in

Refrigerator, only 25 percent of the dealers in semi urban market are not transacting

their business in that product. This might be due to the fact that there is not much

market for Refrigerator in rural area, and whenever the customers from rural area is

in need of such products, they prefer to purchase it from nearest town, that is urban

or semi urban area. However, the Chi-square analysis found no significant difference

in portfolio of kitchen appliances among the dealers from various geographic market

segments of Kerala.

5.4 Brand Portfolio of Dealers in Kitchen Appliances

Decision as to the combination of different brands of a particular kitchen

appliance by a dealer is the direct outcome of two important causes. One is the push

promotion strategy of the manufacturer, that is, the measures taken by the

manufacturer to promote the product by offering additional schemes and incentives

to dealers. The other reason is the brand image of the product among the customers.

If a brand has wide appeal among the public, selling effort needed on the part of the

distributor is very low and they can generate more profit through better volume of

sales. Thus the strategy of the distributor in promoting the product is much related to

the brand which he is dealing in.

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Table T 5.4 Brand Portfolio of Dealers in Kitchen Appliances

Mixer Grinder Grinder Refrigerator Gas Stove Pressure Cooker

Brands

No. %

Brands

No. % Brands No %

Brands

No %

Brands

No. %

Sumeet, Maharaja, Preethy

10 20 Laxmi,

Butterfly, Maharaja

10 25 Godrej,LG, W hirlpool, Samsung

30 75 Butterfly, Pigeon 10 20

Prestige, Hawkins,

Pigeon 10 20

Sumeet Inalsa, Others

10 20 Laxmi,

Maharaja, Others

20 50 - - -

Butterfly, Inalsa, Bajaj, Others

10 20 Prestige, Hawkins, Butterfly

10 20

All 30 60 All 10 25 All 10 25 All 30 60 All 30 60

Total 50 100 Total 40 100 Total 40 100 Total 50 100 Total 50 100

Source: Survey Data

It is evident from Table T5.4 that the discrimination in the matter of selection

of the brand of different products among the dealers is relatively low. All the

distributors of the mixer grinder are dealing in the most popular brand of mixer

grinders – Sumeet. 80 percent of them deal also in all other established brand of

mixer grinders. In the case of Grinder, Laxmi and Maharaja are the brands in which

all the selected dealers are doing business. Only 50 percent of the dealers in the

Grinder are dealing in the Butterfly brand of Grinder.

Most of the famous brands of Refrigerators are sold by all the selected dealers

in Refrigerator. 30 percent of such dealers are not dealing in BPL brand. The most

popular brand in India - Butterfly is the major component of product portfolio of the

dealers in Gas Stove. Other reputed brands like Pigeon, Inalsa, and Bajaj are also

sold by majority of the dealers of that product.

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Prestige and Hawkins are the most common brand for the dealers of Pressure

Cooker. Other popular brands like Pigeon and Butterfly are also chosen by majority

of the dealers for transacting their business.

Thus the reputed brands of kitchen appliances were added by the dealers to

their product portfolio. This might be due to the requirement of lesser scale of efforts

on the part of the dealers of such brands in promoting them in the market as they

have already created a brand image in the mind of the customers of kitchen

appliances industry.

5.5 Brand Mix of Mixer Grinder – Area of Business Wise Analysis

Since various brands of Mixer Grinders are manufactured by the Kitchen

appliances manufacturers, decision as to the distribution of different brands of mixer

grinders by a dealer depends upon various reasons like brand image, consumer

demand, profitability, support system of the manufacturer, additional schemes and

incentives to dealers etc. Another reason is the brand image of the product among the

customers.

Table T 5.5 Brand Mix of Mixer Grinder – Area of Business Wise Analysis

Brands Area of Business

Total Urban Semi Urban Rural

No. % No. % No. % No. % All 10 50 15 75 5 50 30 60 Sumeet, Maharaja, Preethy

5 25 - - 5 50 10 20

Sumeet & Inalsa 5 25 5 25 - - 10 20

Total 20 100 20 100 10 100 50 100

Source: Survey Data

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0

10

20

30

40

50

60

70

80


All

Sumeet,Maharaja,Preethy

Sumeet & Inalsa

Figure F 5.3

Brand Mix of Mixer Grinder – Area of Business wise Analysis

Table T 5.5 shows that irrespective of the location, distributors are there in

every segment of the market for all the branded mixer grinders. This is because when

a dealer deals in a mixer grinder which has a brand image in the market; it also

promotes his face value and credibilit in the market. Even the manufacturers of

established brands of mixer grinders, manufacturers are more strict in norms like

credit facility, payment due date, profit margins etc. But still, dealers prefer

established brands even though new brands and non branded mixer grinders offer

high profit margins and flexible terms and conditions.

5.6 Brand Mix of Grinder – Area of Business Wise Analysis

While comparing with other kitchen appliances, the volume of sales of

Grinder are much less because of the scope of its use is very narrow and because of

the relatively limited demand from some selected customers. Since dealers are the

interface between the manufacturers and consumers, their decision is important in

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making the product more popular among the customers from different markets and

for ensuring their timely supply. Table T 5.6 shows the brands of grinders available

in the different segments of the market.

Table T 5.6 Brand Mix of Grinder – Area of Business Wise Analysis

Brands



No. % No. % No. % No. %

All 5 50 3 15 2 20 10 25

Laxmi,Butterfly& Maharaja only

5 50 3 15 2 20 10 25

Laxmi & Maharaja

- - 14 70 6 60 20 50

Total 10 100 20 100 10 100 40 100 Source: Survey Data

Figure F5.4 Brand Mix of Grinder – Area of Business wise Analysis

0

10

20

30

40

50

60

70

Urban

Semi Urban

Rural

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Most established brand of Grinder, that is Laxmi and Maharaja, were found

place in the product portfolio of all selected dealers in grinder across the different

market segments. 70 percent of semi urban and 60 percent of rural dealers deal in all

the established brands of grinders. Brands like Butterfly and Inalsa are not selected

by some dealers for transacting their business which might be due to lesser market

demand for these products or inefficiency of its manufacturers to design fruitful

strategies in widening the distribution network and customer base.

5.7 Brand Mix of Refrigerator – Area of Business Wise Analysis

The Refrigerator is the high priced and space occupying appliance among the

kitchen appliances under study. So it is important to take a decision by the dealer as

to what are the brands he has to keep with him which he can dispose immediately

without allowing it to be a dead stock.

Table T 5.7 Brand Mix of Refrigerator – Area of Business Wise Analysis

Godrej, LG, Whirlpool, Samsung & BPL



No. % No. % No. % No. %

All 5 25 5 33 - - 10 25

Godrej, LG, Samsung, Whirlpool

15 75 10 67 5 100 30 75

Total 20 100 15 100 5 100 40 100

Source: Survey Data

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Figure F5.5 Brand Mix of Refrigerator – Area of Business Wise Analysis

It has come to be known from Table T 5.7 that all the selected distributor’s

deal in well established brands of refrigerators which have already created a very

strong brand image in the minds of the consumers. The area wise distribution of

dealers of Refrigerator on the basis of the brands they are dealing in was almost

same. It can also be identified from the Table that only 25 percent of distributors

dealt in the BPL brand of the Refrigerator. This is because the manufacturer of this

brand has decided to stop its production and the company is itself on the verge of

winding up.

5.8 Brand Mix of Gas Stove – Area of Business Wise Analysis

Gas Stove is a necessity in every modern kitchen. It is the only kitchen

appliance which is to be used regularly and continuously in a kitchen. Since gas is

used as the fuel for the stove, utmost care and safety is required in its manufacture,

distribution and usage. The dealers keep various brands of gas stove for distribution

according to the customer‘s preference. Their profit from this product segment

0

10

20

30

40

50

60

70

80

90

100


All

Godrej,Lg,Samsung,Whirlpool

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largely depend upon its ability to identify the right brand the customer wants most

and his capacity to make its availability as and when his customer demands it.

Table T 5.8

Portfolio of Gas Stove – Area of Business Wise Analysis

Butterfly, Inalsa, Bajaj, & Pigeon



No. % No. % No. % No. %

All 10 50 15 75 5 50 30 60

Butterfly, Pigeon 10 50 - - - - 10 20

Butterfly,Inalsa,Bajaj - - 5 25 5 50 10 20


Figure F 5.6 Portfolio of Gas Stove – Area of Business wise Analysis

The analysis in Table T 5.8 shows that when 75 percent dealers in semi urban

market keep all the established brands of gas stove in the market, 50 percent is the

proportion of dealers who belong to this group in all other two segments that is,

0102030405060708090100


Butterfly,Inalsa,Bajaj

Butterfly, Pigeon

All

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urban and rural. 80 percent of the total dealers take the inventory of either Pigeon or

Inalsa or Bajaj along with the most versatile brand, Butterfly. So the dealers of gas

stove while deciding their strategy as to the promotion of a brand of product shall

mostly look into its publicity and image among the customers.

5.9 Brand Mix of Pressure Cooker – Area of Business Wise Analysis

The demand of Pressure Cooker can be perceived as the derivative from the

demand of gas stove. Consumers who use cooking gas in their kitchen shall find it

more expensive than any other energy even though it is convenient in cooking for

them. So, next he thinks about how to reduce his cost of cooking and normally he

reaches a conclusion as to use the pressure cooker for cooking with gas stove.

Different brands of pressure cookers have different price profile and performance

level. Like the dealers in gas stove, the dealers in pressure cooker also should be

interested to dealing in those brands which have better customer demand. The Table

T 5.9 unfolds the dealer preferences in brand which the selected dealers have taken

as the subject matter of his business

Table T 5.9 Brand Mix of Pressure Cooker – Area of Business Wise Analysis

Brands


Urban Semi Urban Rural No. % No. % No. % No. %

All 10 50 10 50 10 100 30 60

Prestige, Hawkins, Pigeon 10 50 - - - - 10 20

Prestige,Hawkins, Butterfly - - 10 50 - - 10 20

Total 20 100 20 100 10 100 50 100

Source: Survey Data

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Figure F 5.7 Brand Mix of Pressure Cooker – Area of Business Wise Analysis

Prestige and Hawkins are the most preferable brand in which all the selected

dealers are transacting their business. When 50 percent dealers in urban area are

doing in Pigeon brand along with the most popular brands like Prestige and Hawkins,

50 percent of semi urban dealers prefer Butterfly in lieu of Pigeon. All the rural

dealers keep the entire established brands of pressure cookers. So here also dealers

want to raise the maximum revenue by concentrating on the most demanding brands,

the marketing of which demands only a normal level of sales effort.

5.10 Brand Mix of Kitchen Appliances by Dealers from Different Market

Segments – Inferential Analysis

For testing the statistical significance of difference between the dealers from

different geographical segments of Kerala in terms of the brands of kitchen

appliances in which they are dealing, non parametric form of hypothesis test was

used. The test results summarized in Table T5.10 shows that such differences among

the dealers are significant (at 5 per cent level) in the brand portfolio of mixer grinder

0

10

20

30

40

50

60

70

80

90

100

All Prestige, Hawkins, PigeonPrestige, Hawkins, Butterfly

Urban

Semi Urban

Rural

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only. In all other cases the difference among the dealers in terms of this has got no

statistical significance. So from this, it can be inferred that, the geographic

differences in the kitchen appliances market of Kerala has significant impact only on

the brand mix of kitchen appliances by dealers in the mixer grinder segment only.

Table T 5.10 Brand Mix of Kitchen Appliances by Dealers from Different Market Segments –

Inferential Analysis

Kitchen Appliances Pearson Chi-Square Value P Value

Mixer Grinder 6.188 0.045*

Grinder 2.600 0.107

Refrigerator 1.707 0.191

Gas Stove 3.125 0.210

Pressure Cooker 0.1000 0.752

Source: Survey Data *Significant at 5 per cent level. 5.11 Dealers Monthly Sales Distribution of Kitchen Appliances

In the present competitive world, in order to sustain and grow in the market,

the manufacturers of kitchen appliances give thrust to more volume of sales through

control of their product cost and by transmitting the benefit of the same to their

customers in the form of price discounts and offers. In such situation the kitchen

appliance industry shall take over the form of volume industry where volume of sales

is the true indicator of the efficiency and profitability of the dealers as well as the

total firm. So, without gathering information on volume of sales made by the dealers

in kitchen appliances, we cannot measure its efficiency.

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Table T 5.11 Dealers Monthly Sales Distribution of Kitchen Appliances

No. of Appliances sold

Mixer Grinder

Grinder Refrigerator Gas Stove Pressure Cooker

Total

1-10 - 30(75) - - - 30(13) 10-20 10(20) - 10(25) 10(20) - 30(13) 20-30 - 10(25) 20(50) - 30(60) 60(26)

Above 30 40(80) - 10(25) 40(80) 20(40) 110(48)

Total 50(100) 40(100) 40(100) 50(100) 50(100) 230(100) Source: Survey Data Figures given in parentheses indicates percent

Table T 5.11 unfolds the fact relating to the profile of monthly sales of

selected kitchen appliances by the dealers observed under study. Of the 50 dealers in

mixer grinder, 80 percent sell at least 30 mixer grinders per month and the remaining

20 percent dealers were making the sale of 10 to 20 mixer grinder per month. In the

case of dealers in grinder, majority of them were able to make a monthly sale of less

than 10 units only. Maximum number of sales of this category per month constitutes

less than 30 units by a dealer and 25 percent of dealers in that product category are

able to do so. Even though mixer grinder and grinder have some common utility, in

the case of the grinder, because of its restricted utility, the demand is much less than

that of more versatile product, the mixer grinder.

Even though the price of the refrigerator is relatively higher than that of other

kitchen appliances, its monthly volume of sales is much better than that of many

other kitchen appliances. About 75 percent of its dealers procure a monthly sale of

more than 20 units. About one third of such dealers are able to sell at least one

refrigerator per day. The remaining 25 percent of its dealers sell 10 to 20 units per

month. Relatively higher demand for refrigerator could be related to the change in

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lifestyle of the people because of their busy and mechanical life schedule. Sales

performance of dealers in relatively lower priced kitchen appliances such as Gas

Stove and Pressure Cooker are better than that of the dealers of Grinder and almost

equal to that of dealers in Mixer Grinder.

80 percent dealers in Gas Stove and 40 percent dealers in Pressure Cooker are

able to sell more than 30 units of their products per month. When the remaining 20

percent of Gas Stove dealers make a sale of 10 to 20 units of Gas Stove per month,

the monthly sale of rest of the pressure cooker dealers are 20 to 30 units. From these

results we can make two inferences. First is that the dealers might find their

business more profitable with refrigerators due to the increasing demand for it and

its higher profit contribution on account of its higher price. The second inference is

to the determinant of sales of kitchen appliances. Its sales are mainly influenced by

utility and need that its customer perceived from it. Again, utility of kitchen

appliance is closely related to the change in life style and standard of living of the

people.

5.12 Monthly Sales of Dealers in Kitchen Appliances - Area Wise Analysis

Placing products consist of many distribution components bringing goods and

services from the point of production to the point of use. Customers of kitchen

appliances who are scattered all over the market pose a difficult problem of how to

take the products to the end consumers. As a solution to this problem, manufacturers

appoint middlemen who are willing to bridge the gap between the supply and

demand of products. The concurrence of a dealer to act as a link of the manufacturer

with the consumer for the sale of a product obviously depend upon the market for

such products in the area in which he is willing to operate. There might be

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differences in demand for various kitchen appliances across the market segments

which should be analyzed arrive at a conclusion on the reason for purchasing a

particular strategy by the dealers.

5.13 Monthly Sales Performance of Dealers in Mixer Grinder - Area Wise

Analysis

The monthly sales in units of mixer grinder by the selected dealers were

analyzed with the help of Table T5.12

Table T 5.12 Monthly Sales Performance of Dealers in Mixer Grinder - Area Wise Analysis

No. of Mixer Grinders Sold



No. % No. % No. % No. %

1-10 - - - - - - - - 10-20 - - 5 25 5 50 10 25 20-30 - - - - - - - - Above 30 20 100 15 75 5 50 40 75

Total 20 100 20 100 10 100 50 100

Source: Survey Data

It can be known from the Table that the dealers in urban and semi urban

market sell more number of mixer grinders in their area of operation. All the selected

dealers from urban market are able to sell more than 30 units of mixer grinder per

month. 75 percent of dealers in semi urban market also procured sales of mixer

grinder in that scale. Sales of mixer grinder by dealers of rural market have

comparatively lesser than those of other two segments. Only 50 percent of rural

dealers are able to the make sale of a mixer grinder per day on an average basis. Such

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discrepancy in the distribution of sales across the region might be due to the

difference in attitude and lifestyle of people residing there.

5.14 Monthly Sales Performance of Dealers in Grinder - Area Wise Analysis

The grinder, a kitchen appliance highly specific in use should have different

scale of sales in different markets depending on the diversity in the demographic

profile of the people there. The details of which are given in Table T 5.13

Table T 5.13 Monthly Sales Performance of Dealers in Grinder- Area Wise Analysis

No. of Grinders Sold



No. % No. % No. % No. %

1-10 10 100 10 50 10 100 30 75

10-20 - - - - - - - -

20-30 - - 10 50 - - 10 25 Above 30 - - - - - - - -

Total 10 100 20 100 10 100 40 100

Source: Survey Data

Irrespective of the geographical location in which the dealer confined their

operations, sales frequency of the grinder is very low. All the dealers in urban and

rural market and 50 percent of dealers in semi urban market are able to sell less than

10 units of the grinder in a month on an average. Remaining 50 percent of dealers in

semi urban market make a better sale of 20 to 30 units of the grinder per month.

5.15 Monthly Sales Performance of Dealers in Refrigerator- Area Wise Analysis

The refrigerator which once was a luxury appliance, later become a product

of necessity especially in the fast life of the modern world. Earlier it was found only

in the kitchens of rich and now it has become a common product in the kitchen of

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everyone. Due to this transition from luxury to necessity, the manufacturers of

refrigerators appoint dealers in all market segments. Sales distribution of

Refrigerators by its dealers are given in Table T5.14

Table T 5.14 Monthly Sales Performance of Dealers in Refrigerator- Area Wise Analysis

No. of Refrigerators Sold



No. % No. % No. % No. %

1-10 - - - - - - - - 10-20 5 25 5 33 10 25

20-30 5 25 10 67 5 100 20 50

Above 30 10 50 - - - - 10 25

Total 20 100 15 100 5 100 40 100

Source: Survey Data

All the dealers of refrigerators from different market segments make better

sales of the refrigerator than other kitchen appliances like the grinder. 50 percent of

dealers in urban market are able to sell the refrigerator at a scale of at least one per

day. Cent per cent of rural dealers, two third of semi urban dealers and 25 percent of

urban dealers in the refrigerator make 20 to 30 units of their products per month.

Sales performance of all other dealers constitutes 10 to 20 units every month. Such a

distribution in sales of dealers reveals that every dealer of their category has

customers for their product in every market.

5.16 Monthly Sales Performance of Dealers in Gas Stove - Area Wise Analysis

Gas Stove, the demand of which is indirectly influenced by the Government

machinery of the country, get good demand from all market segments in a uniform

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pattern. The policy which is pursued by the Government for the last few years in

order to provide cooking gas to each and every household of the country irrespective

of their income level is making good demand for Gas Stove which forces its

manufacturers to appoint dealers in every part of the country. The sales performance

of these dealers are detailed in Table T5.15

Table T 5.15 Monthly Sales Performance of Dealers in Gas Stove- Area Wise Analysis

No. of Gas

Stove Sold



No. % No. % No. % No. %

1-10 - - - - - - - -

10-20 - - 5 33 5 50 10 20

20-30 - - - - - - - -

Above 30 20 100 15 67 5 50 40 80

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Each and every dealer in urban market was able to sell more than 30 units of

Gas Stove every month. The sales profile of dealers in semi urban and rural market is

also found to be not better than that of the dealers in some other kitchen appliances.

Two third of the dealers in semi urban and 50 percent of the dealers in rural market

are in a position to make a monthly sale of more than 30 units of Gas Stove. All the

other dealers from these two market segments are in a good sales position of 10 to 20

units per month. So the popularity and usage of cooking gas to the remote area of the

country helps the dealers in Gas Stove to improve their performance.

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5.17 Monthly Sales Performance of Dealers in Pressure Cooker - Area Wise

Analysis

The popularity and demand of Gas Stove even in the remote area indirectly

helped the stimulation of demand for Pressure Cooker. This is because when people

started to use cooking gas in lieu of conventional energy and kerosene, they began to

think about the reduction of time and cost of cooking, which motivated them to use

Pressure cooker in their kitchens. Then the manufacturers of Pressure Cooker started

to capitalize this opportunity by appointing the dealers in all segments of the market.

The monthly sales performance of these dealers are reported in Table T5.16

Table T 5.16 Monthly Sales Performance of Dealers in Pressure Cooker- Area Wise Analysis

No. of Pressure Cookers Sold



No. % No. % No. % No. %

1-10 - - - - - - - - 10-20 - - - - - - - - 20-30 10 50 10 50 10 100 30 60 Above 30 10 50 10 50 - - 20 40

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Sales performance of dealers in Pressure Cooker was almost the same in both

urban and semi urban market. 50 percent of dealers in both markets make a sale of

more than 30 units of Pressure Cooker in a month and the sale of the remaining 50

percent constitute 20 to 30 units a month. In the rural market the sales frequency of

all the dealers of this appliance were between 20 and 30 units. The saving cost of

energy and the possibility of instant cooking demanded by modern lifestyle of the

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people helped the dealers even in rural market to make better sales for this appliance

nicknamed as kitchen mate of maids.

5.18 Association between Location of Business and Monthly Sales of Kitchen

Appliances

Non- parametric test- Pearson’s chi-square test at one percent significance

level was applied to explore whether the monthly sales of the dealers in kitchen

appliances were associated with the location of the market where they operate their

business. The test revealed that only in the case of dealers in Mixer grinder and Gas

stove respondents’ location of business has statistically significant influence on their

sales. In all other Kitchen appliances the location is not a factor determining the sales

of its dealers. The results are shown in Table.5.17

Table T 5.17 Association between Location of Business and Monthly Sales

of Kitchen Appliances


Mixer Grinder 11.476 0.001*

Grinder 0.1000 0.752


Gas Stove 11.476 0.001*


Source: Survey Data *Significant at 1 percent level

5.19 Market Leaders in Kitchen Appliances

Dealers act as spoke person or agents of consumers. They communicate the

needs and demands of their customers to the manufacturers. They help the

manufacturers in producing the products which are decided by the customers. Earlier

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they used to deal in a single brand of product or the products of a single

manufacturer. But now they show the trend of collecting various brands of

appliances from various sources and supply them according to the needs of the

consumers. Since a dealer is dealing in large number of brands, he can correctly tell

which is the market leader in a particular class of product and what makes that brand

the market leader. In the following paragraphs an analysis is made from the

perspective of the dealer with regard to market share and leadership of different

brands in various types of kitchen appliances.

5.20 Market Leader in Mixer Grinder

At present, the market for Mixer Grinder closely follows an oligopoly market

situation. Four prominent brands of Mixer Grinders – Sumeet, Maharaja, Inalsa and

Preethy were identified in pilot study and the analysis was mainly made based on

these brands. Leading brands in different markets according to the opinion of dealers

in Mixer Grinder were given in Table T 5.18

Table T 5.18 Location Wise Distribution of Market Leader in Mixer Grinder

Type of Kitchen Appliances



No. % No. % No. % No. %

Sumeet 9 45 8 40 3 30 20 40 Maharaja 8 40 7 35 5 50 20 40 Inalsa 2 10 3 15 - - 5 10 Preethy 1 5 2 10 - - 3 6 Others - - - - 2 20 2 4

Total 20 100 20 100 10 100 50 100

Pearson Chi-Square Value 0.303 P Value - 0.985

Source: Survey Data

192

Figure F5.8 Location wise Distribution of Market Leader in Mixer Grinder

Sumeet and Maharaja are the market leaders in Mixer Grinder according to

the opinion of its dealers. 40 percent each of the dealers surveyed opined that these

two brands are the most popular ones among the customers. Inalsa constituted 10

percent followed by Preethy with 6 percent and others with 4 percent. So, the main

competition in Mixer Grinder market is between Maharaja and Sumeet. These two

brands lead the other firms in price changes, new product introductions, distribution

coverage and promotional intensity.

Location wise distribution of leading brands of Mixer Grinder is given in

Table T5.18. A close analysis of this Table also reveals that Sumeet and Maharaja

are the most prominent brands of Mixer Grinder for the customers in all the market

segments. As per the opinion of more than 75 percent of respondents in each and

every market segments, product demand is raised by customers for these two brands.

It can also be seen that dealers in leading brands of mixer grinder have almost

equal number of distribution centers in urban and semi urban area. Being the more

0

5

10

15

20

25

30

35

40

45

50

Sumeet Maharaja Inalsa Preethy Others

Urban

Semi Urban

Rural

193

civilized group, customers in developed region prefer to buy only branded product,

which could be the reason for dealers of such brand more concentrated in urban and

semi urban market. Rural people comparatively their socio economic profile far

behind the urban group, give more thrust to price rather than quality and brand image

which might motivate them divert to less popular brand. Hence the dealers of such

brands started their own retail outlets in those regions. However, inferential statistical

test, failed to give any statistical validity to this argument as it has to reject the

hypothesis that there is significant difference between the markets in market

leadership of brands in mixer grinder segment of Kerala’s kitchen appliances market.

5.21 Market Leader in Grinder

The most popular and leading brand of Grinder in various market segments of

Kerala as revealed by the analysis of response of dealers in that particular product

were given in Table T5.19

Table T 5.19 Location Wise Distribution of Market Leader in Grinder

Brand of Grinder



No. % No. % No. % No. %

Laxmi 5 50 10 50 5 50 20 50

Maharaja 1 10 3 15 - - 4 10

Inalsa 1 10 2 10 - - 3 7.5

Butterfly 3 30 5 25 5 50 13 32.5

Total 10 100 20 100 10 100 40 100

Pearson Chi-Square Value 0.853 P Value - 0.653

Source: Survey Data

194

Figure F 5.9 Location wise Distribution of Market Leader in Grinder

Analysis of opinions of the dealers in Grinder indicates that Laxmi is the

leading brand among the popular brands of Grinders in Kerala. 50 percent of dealers

in all the three market segments have the belief that Laxmi was the leading brand in

their domain. Butterfly was the leading brand according to the remaining 50 percent

dealers in rural market, 30 percent dealers in urban and 25 percent dealers in semi

urban segments of Kerala. Very few dealers stand in favor of Maharaja and Inalsa as

market leader in urban and semi urban segments.

Even though according to the opinion of dealers in Grinder, divergence in

terms of market leadership existing among different brands in various geographic

segments of Kerala, inferential statistics found no significance in such difference in

market leadership of brands in its Grinder segment.

5.22 Market Leader in Refrigerator

Refrigerators which were considered a luxury product once are perceived

now as a utility product in the kitchens of every house hold. Earlier only two or three

0

5

10

15

20

25

30

35

40

45

50

Laxmi Maharaja Inalsa Butterfly

Urban

Semi Urban

Rural

195

0

5

10

15

20

25

30

35

40

Godrej LG Whirlpool Samsung BPL

Urban

Semi Urban

Rural

brands were in this product segment, some of which is still remain and some others

have already been washed out. Many new numbers of brands have also emerged in

this white good product market. Distribution of dealers on the basis of their opinion

with regard to the leading brand of Refrigerator in different market strata of Kerala is

explained in Table T5.20

Table T 5.20 Location Wise Distribution of Market Leader in Refrigerator

Brand of Refrigerator



No. % No. % No. % No. %

Godrej 7 35 6 40 2 40 15 37.5

LG 4 20 3 20 1 20 8 20

Whirlpool 3 15 3 20 - - 6 15 Samsung 4 20 3 20 2 40 9 22.5

BPL 2 10 - - - - 2 5

Total 20 100 15 100 5 100 40 100

Pearson Chi-Square Value 0.0484 P Value - 0.976 Source: Survey Data

Figure F5.10 Location wise Distribution of popular Market Leader in Refrigerator

196

Godrej, the versatile the brand of refrigerator which occupied the premier

position in terms of market share of refrigerator in the past, still continue to keep that

position by successfully withstanding the competition from the new comers

according to the opinion of dealers surveyed. Out of the 40 dealers in refrigerator

selected for the study, 15 dealers have such opinion. The most popular brand among

the new comers, LG and Samsung were the leading ones according to the opinion of

8 and 9 dealers respectively. BPL, one of the favorable brands for a consumer in

Kerala once, has almost lost its market demand now. It can also be found that the

dealers in refrigerator are showing much consensus with regard to the query on

market leader regardless of the market in which they are operating their business and

the Chi square test also substantiates the validity of this finding.

5.23 Market Leader in Gas stove

Who is the market leader in Gas stove segment? – When such query was

made to the dealers in gas stove market, the responses given by them were explained

in Table T 5.21

Table T 5.21 Location Wise Distribution of Market Leader in Gas Stove

Brand of Gas Stove



Butterfly 12 60 13 65 5 50 30 60 Inalsa 3 15 2 10 - - 5 10

Bajaj 2 10 2 10 1 10 5 10

Pigeon 3 15 3 15 4 40 10 20 Total 20 100 20 100 10 100 50 100


197

0

10

20

30

40

50

60

70

Butterfly Inalsa Bajaj Pigeon

Urban

Semi Urban

Rural

Figure F 5.11 Location wise Distribution of Market Leader in Gas Stove

It has come to know from the responses of dealers that, Butterfly was the

most prominent brand among the consumers of gas stove in Kerala. About 60 percent

of dealers surveyed in study have registered such response. More than 60 percent

dealers in urban and semi urban segment and 50 percent of dealers in rural segment

of the gas stove mentioned that butterfly surpassed all other brands of gas stove in

market share as well as popularity. 50 percent of dealers from rural segment strongly

argue that Pigeon is the most popular brand there. In terms of the dealer’s perception

on other brands, the analysis has not found much dissimilarity across markets. This

finding is again justified by the inferential statistical tests as it rejects the hypothesis

of significant difference in terms market leadership that exists among the selected

brands of Gas stove in different parts of Kerala.

5.24 Market Leader in Pressure cooker

Distribution of selected brand of Pressure Cooker in terms of market

leadership from the perception of dealers are discussed in Table T 5.22

198

0

5

10

15

20

25

30

35

40

45

Prestige Hawkins Butterfly Pigeon

Urban

Semi Urban

Rural

Table T 5.22 Location Wise Distribution of Market Leader in Pressure Cooker

Brand of Pressure Cooker



No. % No. % No. % No. %

Prestige 9 45 8 40 3 30 20 40

Hawkins 5 25 4 20 2 20 11 22 Butterfly 4 20 4 20 1 10 9 18

Pigeon 2 10 4 20 4 40 10 20

Total 20 100 20 100 10 100 50 100


Figure F 5.12 Location Wise Distribution of Market Leader in Pressure Cooker

Among the four leading brands of Pressure Cooker marketing in Kerala,

Prestige occupies the prominent position in terms of market share and popularity as

per the opinion of dealers in this segment. About 40 percent of the selected dealers

who are transacting business in this product commented so. Their perception about

the marketability of the remaining brands in Kerala was almost the same. But

marketwise analysis of dealer response observed some difference across urban, semi

199

urban and rural segment. When Prestige is the most versatile brand of Pressure

cooker in urban and semi urban segment, Pigeon occupies that position in rural

market conditions of Kerala. But the Chi square test administered in this part of study

failed to provide any statistical validity which is sufficient to generalize this finding

in the context of entire market segment of Kerala.

5.25 Incentives/Allowances to Dealers by Manufacturers

Nowadays more sales promotion effort is directed to retailers and wholesalers

than to customers. Trade promotion can persuade dealers to carry a brand, give it

shell space, promote it to advertising and push it to consumers. Manufacturers often

have to offer price off, allowances, buy back guarantee or free goods to dealers to get

a place for their products on the shelf and once there, to stay on it.

In the following paragraph analysis is made for understanding the difference

if any existing among the manufacturers of various brands of kitchen appliances in

their effort to motivate their dealers to sell more, and if there are differences, study is

made to know which brand is taking the more effort for encouraging the dealers to

produce more output in each product category.

Table T 5.23 Brands Offering Incentives to Dealers in Kitchen Appliances


Brands No. % Brands No. % Brands No % Brands No % Brands No. %

Sumeet 30 60 Laxmi 20 50 Godrej 10 25 Butterfly 25 50 Prestige 25 50 Maharaja 10 20 Maharaja 10 25 LG 11 27.5 Inalsa 5 10 Hawkins 10 20 Inalsa 5 10 Inalsa 5 12.5 Whirlpool 8 20 Bajaj 5 10 Butterfly 5 10 Preethy 5 10 Butterfly 5 12.5 Samsung 9 22.5 Pigeon 15 30 Pigeon 10 20 - - - - - - BPL 2 5 - - - - - - Total 50 100 Total 40 100 Total 40 100 Total 50 100 Total 50 100

Source: Survey Data

200

Analysis of Table T 5.23 reveals that Sumeet is the leading brand among the

mixer grinders in providing incentives to their dealers for encouraging them to

maximize their sales. Of the 50 dealers in mixer grinder 60 percent opined that they

receive special offers in the form of incentives from the manufacturers of Sumeet in

promoting that product. Other brands like Maharaja, Inalsa and Preethy also offer

incentives to dealers based on their performance, but the numbers of dealers who get

such incentives are small.

In the case of the Grinder, the most popular Brand Laxmi also motivate the

dealers for promotion of their product. 50 percent of the dealers of Grinder selected

for the study replied that they receive attractive offers from the manufacturers of

Laxmi in popularizing and retaining the product in the mind of the customers of that

segment. After Laxmi, Maharaja occupies second position in motivating the dealers

and in the case of the other two brands, Inalsa and Butterfly; their sales promotion

tools were relatively weak in terms of dealer motivation.

Almost all brands except BPL in refrigerator segment pursuade the dealers to

carry the brand and to take greater efforts for large sales. More than 20 percent of the

dealers in all the four most popular brands in the refrigerator industry give incentives

to their dealers for recognizing their best sales performance. B P L, which considered

being a thrown out brand from the refrigerator industry, does not take any effort in

reviving their demand through dealer motivation.

Butterfly, the most versatile brand among the group of Gas stoves, uses a

strategy to push the dealers to provide a space for the product in their shelf and to put

effort for its marketing. 50 percent of the dealers in Gas Stoves commented that they

get special offers or incentives from butterfly to become keen in marketing that

201

product. Pigeon, the brand which is in the second position in terms of customer sales

also keep the same position in terms of pursuing its dealers to take effort for creating

demand for it.

Prestige, the kitchen mate of housewives, keep the prime position in pushing

its dealers to take more effort for its promotion. 50 percent of the dealers in Pressure

Cooker report that Prestige brand has been designing special trade promotion

schemes to stimulate the dealers to promote the brand. Other popular brands of

pressure cooker, Hawkins and Pigeon also are prudent in their trade promotion

action. But Butterfly, which is keener in trade promotion of its Gas Stove, is least

conscious in the importance

From these facts it can be interpreted that the establishment of a brand in the

market could be the outcome of its dealer motivation.

Nowadays number of brands has considerably increased in the kitchen

appliances industry and competitors use promotions frequently. Many brands are

seen are similar and consumers are more price oriented and the trade has demanded

more deal from the manufacturers. At this juncture a high proportion of the

promotion pie is devoted to trade promotion tools and manufacturers award more

money to trade to carry more units than the normal, and induce the dealers to

promote the brand and push the product. When we observe the trend in giving more

importance to dealer motivation by the most established brand of the kitchen

appliances, we can say that their market penetration and customer demand are not

simply due to their product features, but due to the effort taken by the dealers to

place the product in the hands of the right consumer by convincing them its relative

advantage and qualities over the other products.

202

5.26 Location Wise Difference in Giving Incentives by Brands to Dealers

The area where the dealer is transacting his business shall definitely be a

factor deciding the degree of effort to be taken by him for marketing the product

which he deals in. The extent of trade promotional measures to be adopted by the

manufacturers is directly linked with the marketing effort initiated by the dealers. So,

in order to understand whether there is any difference in incentives or allowance

which are offered by the manufacturers of kitchen appliances to the dealers from

different geographical area, the following part of analysis was made.

Table T 5.24 Location Wise Difference in Brands of Mixer Grinder Giving Incentives

Brands giving incentives



No. % No. % No. % No. %

Sumeet 10 50 10 50 10 100 30 60 Maharaja 5 25 5 25 - - 10 20 Inalsa 5 25 - - - - 5 10 Preethy - - 5 25 - - 5 10


It is understood from the analysis of Table T 5.24 that Sumeet brand occupies

the prime position in inducing its dealers to sell more of its products through

attractive trade promotion schemes. 30 dealers in sumeet brand of mixer grinder get

offers from its manufacturers and they are equally distributed in all the three

geographical areas. When Maharaja induce the dealers from both urban and semi

urban areas, the other brands, Inalsa and Preethy offer incentives to dealers only from

urban and semi urban markets respectively. Such a difference in dealers in the

persuasion of trade promotion strategies among the manufacturers of mixer grinders

203

in Kerala can be attributed to the market where they mainly concentrate on their

business.

5.27 Location Wise Difference in Giving Incentives by Brands of Grinder to Dealers

Table T 5.25 gives location wise difference among the selected brand of

grinders in giving incentives to dealers as a part of their trade promotion strategy.

Table T 5.25

Location Wise Difference in Brands of Grinder Giving Incentives




No. % No. % No. % No. %

Laxmi 7 70 8 40 5 50 20 50

Maharaja 3 30 5 25 2 20 10 25

Butterfly - - 4 20 1 10 5 12.5

Inalsa - - 3 15 2 20 5 12.5

Total 10 100 20 100 10 100 40 100

Source: Survey Data

The most selling brands of grinders in Kerala market, that is, Laxmi and

Maharaja design their own trade promotion strategies regardless of the market

segment where they operate. They push the resellers of their products through

attractive incentive/allowance schemes for maintaining/expanding their market share.

But other two brands, Inalsa and Butterfly extend dealer support only in those market

segments where they are mainly focused.

204

5.28 Location Wise Difference in Giving Incentives by Brands of Refrigerator

to Dealers

Whether there is any difference among the brands of refrigerator in designing

and offering incentives to dealers from different market segments, will be answered

by Table T 5.26

Table T 5.26 Location Wise Difference in Brands of Refrigerator Giving Incentives




No. % No. % No. % No. %

Godrej 4 20 4 26.67 2 40 10 25

LG 5 25 4 26.67 2 40 11 27.5

Whirlpool 4 20 4 26.66 - - 8 20

Samsung 5 25 3 20 1 20 9 22.5

BPL 2 10 - - - - 2 5

Total 20 100 15 100 5 100 40 100

Source: Survey Data

Trade promotional tools in the form of incentives or allowances to dealers in

established brands of refrigerator are almost uniformly distributed. Severe

competition in the refrigerator industry makes it a volume drives market. Its leading

players are forced to go for price reduction and they are in urgent need of more

volume of sales from different market segments for sustaining in the industry. So

these manufacturers offer incentives to dealers for improving their selling efficiency.

BPL, the sick brand in refrigerator segment is the only exception to this among the

group.

205

5.29 Location Wise Difference in Giving Incentives by Brands of Gas Stoves to

Dealers

Gas Stove, the common kitchen device found in the kitchen of both poor and

rich face severe competition among the leading brands there. Hence, all of these

brands appoint the dealers and initiatives are taken for dealer motivation in various

parts of their market.

Table T 5.27 Location Wise Difference in Brands of Gas Stoves Giving Incentives




No. % No. % No. % No. %

Butterfly 10 50 10 50 5 50 25 50

Inalsa 3 15 2 10 - - 5 10

Bajaj 2 10 2 10 1 10 5 10

Pigeon 5 25 6 30 4 40 15 30

Total 20 100 20 100 10 100 50 100

Source: Survey Data

It is clear from Table T 5.27 that almost all selected brands of gas stove

(except Inalsa) offer special incentive schemes to its dealers for stimulating them to

bring out maximum performance from them. When Butterfly extends dealer

incentive scheme uniformly in all the three market segments, Inalsa and Bajaj give

priority to semi urban and urban segment in this regard. Pigeon, the brand which

occupies second position in terms of both market penetration and dealer motivation

give more thrust to semi urban market. However this brand does not neglect the

importance of motivation to dealers in its urban and rural segment.

206

5.30 Location Wise Difference in Giving Incentives by Brands of Pressure

Cooker to Dealers

Pressure cooker, the device which is comparatively cheap among the kitchen

appliances but found to be very useful in the fast life of a modern man, demands

more dealer support in the present competitive market. Whether there is any

discrimination made by the popular brands of this product segment in designing

schemes for the promotion of their trade will be explained by the Table T 5.28

Table T 5.28 Location Wise Difference in Brands of Pressure Cooker Giving Incentives




No. % No. % No. % No. %

Prestige 10 50 10 50 5 50 25 50

Hawkins 4 20 3 15 3 30 10 20

Butterfly 3 15 2 10 - - 5 10

Pigeon 3 15 5 25 2 20 10 20

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Location wise analysis of brands of pressure cooker giving incentives to

dealer’s shows that all the selected brands in this product segment offers incentives

or allowances to their dealers based on their performance in order to encourage them

to canvass new orders from different market segments. Almost all of these brands

have dealers in different part of their market regardless of the degree of urbanization

and the manufacturers design suitable trade promotion strategies to induce the

dealers to carry, promote and push the product in the market which they are

specialized in.

207

5.31 Association between Location of Business and Dealer Motivation through Incentives by Manufacturers

For drawing statistical inference on the association between the

geographic profile of various market segments and dealer motivation through

incentive schemes by manufactures, the null hypothesis of “there is significant

difference among the dealers of different Kitchen appliances in various market

segments of Kerala in receiving the incentives from their manufactures were

verified at 5 per cent level by using non parametric form of Chi square test”.

The test results reported in Table T5.29 found no statistical significance of

such geographic market differences among the brands in all the five selected

product segments of Kitchen appliances.

Table T5.29 Association between Location of Business and Dealer Motivation

Through Incentives by Manufacturers


Mixer Grinder 4.500 0.105 Grinder 0.621 0.733


Gas Stove 0.726 0.696 Pressure Cooker 0.199 0.906 Source: Survey Data

5.32 Marketing Strategies by Dealers in Kitchen Appliances

Every dealer in a particular product segment must outline its marketing

strategy or game plan for attaining its objectives. Marketing strategy is the marketing

logic by which the business unit hopes to achieve its marketing objectives. From the

dealer’s point of view, marketing strategy means the plan or way by which he can

208

deliver the goods to its customers more effectively and efficiently than his

competitors can. The functions of a dealer include: gathering information on various

aspects of marketing, promotion of the product, maintaining contact and relationship

with customers, matching the product with buyers needs, making negotiation with

customers etc. The dealers should perform these functions most efficiently and

effectively to provide satisfactory assortment of goods to the target customers. For

this they have to evolve out suitable strategies.

In kitchen appliances market, for rendering different functions that are

expected to be performed by a dealer, various strategies are used which include their

own advertisement through flex and hoardings, incentives to customers in the form

of interest free loan and free gift or merely depending on manufacturers marketing

strategy. Table T.5.30 gives a brief description on the type of strategies pursued by

dealers in kitchen appliances for successful performance of their functions in the

Kerala market.

Table T 5.30 Marketing Strategies by Dealers in Kitchen Appliances

Marketing Strategies

Mixer Grinder

Grinder Refrigerator Gas Stove Pressure

Cooker Total

Own Advertisement - 5(12.5) - 30(60) 15(30) 50(22)

Depend on Manufacturers Marketing Strategy

40(80) 17(42.5) 25(62.5) 10(20) 25(50) 117(51)

Incentives like Price Reduction Free Gifts, Interest free loans etc

10(20) 18(45) 15(37.5) 10(20) 10(20) 63(27)

Total 50(100) 40(100) 40(100) 50(100) 50(100) 230(100)

Source: Survey Data Figures given in parentheses indicates percent

209

It is clear from the Table T 5.30 that there are differences in the strategies

used by dealers in different Kitchen appliances for increasing their volume of sales.

When majority of the dealers in mixer grinder (80 percent), in refrigerator (62.5

percent) and pressure cooker (50 percent) depend on the manufacturer’s strategy for

placing the product in the hands of ultimate consumers, 60 percent of the dealers in

gas stove use their own advertisement as the main strategy for the promotion of the

product in their deal. But in the case of dealers in grinder, they take a lot of effort to

push the customers to buy the product from them through attractive consumer offers

such as free gift, payment by installment; cash reduction etc. 45 percent of such

dealers pursue this strategy.

5.33 Marketing Strategies by Dealers in Kitchen Appliances – Location Wise

Analysis

A dealer’s location is a key factor in determining his ability to attract new

customers and also holding the existing ones. And the cost of building and leasing

facilities has a major impact on the dealer’s profit. So a rational dealer must be

conscious of its cost and benefit relationship and should follow a strategy which

optimizes this cost function. The type of the product the dealer is dealing in shall be

a crucial factor determining the type of strategy the dealer has to choose.

5.34 Marketing Strategies by Dealers in Mixer Grinder – Location Wise

Analysis

Table T 5.31 gives a summary of strategic differences among the dealers in

the mixer grinder from different market segments in the promotion of their sales.

210

Table T 5.31 Location Wise Distribution of Marketing Strategy of Dealers of Mixer Grinder

Marketing Strategy



No. % No. % No. % No. %

Own Advertisement - - - - - - - -

Depend on Co.’s

Marketing Strategy 15 75 15 75 10 100 40 80

Incentives like Free

Gifts, interest free

loans etc.

5 25 5 25 - - 10 20

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Analysis of Table T 5.31 reveals that 80 percent of the dealers in mixer

grinder mainly depend on the manufacturer’s marketing strategy to attract and hold

customers. Remaining 20 percent are try to exert a pull on the customers through

attractive offers such as free gifts, interest free loans etc. Location wise analysis

found no divergence in this regard among the dealers operating in various

geographical segments of the market in Kerala.

5.35 Marketing Strategies by Dealers in Grinder – Location Wise Analysis

Table T 5.32 gives a summary of the strategic differences among the dealers

in grinder from different market segments in the promotion of their sales.

211

Table T 5.32 Location Wise Distribution of Marketing Strategy of Dealers of Grinder

Marketing Strategy



No. % No. % No. % No. % Own Advertisement - - 3 15 2 20 5 12.5

Depend on Co.’s Marketing Strategy 8 80 5 25 5 50 18 45

Incentives like interest free loans, free gifts etc.

2 20 12 60 3 30 17 42.5


There was market wise difference among the dealers in grinder with regard to

the type of marketing strategy they pursued. Majority of the dealers from urban area

(80 percent) and one half of the dealers from rural segment mainly depend on the

manufacturer’s strategies for promotion of their sales. 60 percent of such dealers

from semi urban area give offers in the form of free gift and interest free loan to

those who make purchase from them. 30 percent of the dealers from the rural

segment also believe that a “normal customer will be attracted by offers.”

5.36 Marketing Strategies by Dealers in Refrigerator – Location Wise Analysis

Refrigerator being the highest priced product among the kitchen appliances

under study, manufacturers definitely expend more money for its promotional

activities. Moreover a product where its dealers are competing with each other to

increase their sales, they are also designing and pursuing their own marketing

strategies Table T 5.33 gives a description on differences among the dealers in the

refrigerator from various market segments of Kerala with regard to their marketing

strategies.

212

Table T 5.33 Location Wise Distribution of Marketing Strategy

of Dealers for Refrigerator

Marketing Strategy



No. % No. % No. % No. %

Own Advertisement - - - - - - - -

Depend on Co’s Marketing Strategy

13 65 9 60 3 60 25 62.5

Incentives like interest free loan, free gift etc.

7 35 6 40 2 40 15 37.5

Total 20 100 15 100 5 100 40 100

Source: Survey Data

It is very clear from the analysis that there is no considerable difference

among the dealers in refrigerator from various market segments in terms of the

strategies pursued by them. More than 60 percent of the dealers from all segments

mainly depend on manufacturer’s marketing strategy for the promotion of the

product. Remaining dealers follow a strategy to induce customers through attractive

consumer offers. None of the dealers from any segments give their own

advertisement for the promotion of their sales.

5.37 Marketing Strategies by Dealers in Gas Stove – Location Wise Analysis

Table T5.34 gives a summary of strategic differences among the dealers in

gas stove from different market segments in promotion of their sales

213

Table T 5.34 Location Wise Distribution of Marketing Strategy of Dealers of Gas Stove

Marketing Strategy

Area of Business

Urban Semi Urban Rural Total

No. % No. % No. % No. %

Own Advertisement - - 20 100 10 100 30 60

Depend on Co.’s Marketing Strategy 10 50 - - - - 10 20


10 50 - - - - 10 20

Total 20 100 20 100 10 100 50 100

Source: Survey Data

From the analysis it can see that the strategy followed by the urban dealers is

entirely different from semi urban and rural dealers. Cent percent of the dealers from

semi urban and rural segment completely depend on their own advertisement to

induce the customers to buy the product from them. On the other hand 50 percent of

the urban dealers simply depend on manufacturers marketing strategy for the

achieving better value of sales and another 50 percent give consumer offers. The

difference in the socio economic profile of people from different geographic

segments might be the main factor considered by the dealers in choosing their

marketing strategies.

214

5.38 Marketing Strategies by Dealer in Pressure Cooker –Location Wise

Analysis

Table T 5.35 gives a vivid picture of how the dealers in pressure cooker

diverge themselves in their sales promotion strategies.

Table T 5.35 Location Wise Distribution of Marketing Strategy of Dealers of Pressure

Cooker

Marketing Strategy



No. % No. % No. % No. %

Own Advertisement 5 25 5 25 5 50 15 30

Depend on Co.’s Marketing Strategy 10 50 12 60 3 30 25 50


5 25 3 15 2 20 10 20

Total 20 100 20 100 10 100 50 100

Source: Survey Data

In terms of marketing strategy pursued by the dealers in pressure cooker,

uniformity can be seen between urban and semi urban dealers. Most of the dealers

from these two segments (50 percent and 60 percent respectively) depend on

manufacturer’s strategy for the promotion of the product. Other dealers from the

same segments take their own initiative by their own advertisement or through

consumer offers for promotion of the product. But in the case of rural segments own

advertisement is the main strategy pursued by the dealers there (50 percent) followed

by 30 percent depend on manufacturer’s strategy and the remaining 20 percent gives

consumer offers for improving their sales.

215

5.39 Association between Location of Business and Marketing Strategies

Pursued by Dealers in Kitchen Appliances

Inferential statistical analysis was performed for verifying the association

between location of the business of the dealers in kitchen appliances and the

marketing strategies pursued by them. From the analysis it is known that, the

geographic profile of the market where the dealers in Kitchen appliances transact

their business in Kerala was not a significant factor influencing their marketing

strategies. Regardless of the market where they operate their business, the dealers

design more or less same strategy for marketing their products among the consumers

of Kitchen appliances in the state. The results of the analysis are reported in Table

T5.36.

Table T 5.36 Association between Location of Business and Marketing Strategies Pursued by

Dealers in Kitchen Appliances


Mixer Grinder 0.133 0.715

Grinder 1.926 0.165


Gas Stove 0.781 0.377


Source: Survey Data

5.40 Sales Promotional Incentives Offered by Dealers of Kitchen Appliances

Incentives are offered by the dealers as the part of their consumer sales

promotion program which is conducted either to attract new customers or to retaliate

against competitors sales activities. Such promotional incentives are to be offered by

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the dealers because of the factors such as increase in number of brands, consumers’

price oriented attitude, the decline of the advertising efficiency because of rising

cost, media clutter and the increased number of dealer competition. Usually the

incentives offered by dealers to their customers include cash reduction, interest free

loan, free gifts exchange offer etc. Table T 5.37 gives the details of type of incentives

offered by dealers in various kitchen appliances to its customers in Kerala.

Table T 5.37 Sales Promotional Incentives Offered by Dealers of Kitchen Appliances

Type of

Incentives

Mixer

Grinder

Grinder Refrigerator Gas

Stove

Pressure

Cooker

Total

Cash

Reduction 25(50) 25(62.5) 20(50) 30(60) 25(50) 125(54)

Interest Free

Loan 10(20) 5(12.5) 15(37.5) 5(10) 10(20) 45(20)

Free Gifts - 2(5) - 5(10) 5(10) 12(5)

Exchange

Offer 15(30) 8(20) 5(12.5) 10(20) 10(20) 48(21)

Total 50(100) 40(100) 40(100) 50(100) 50(100) 230(100)

Source: Survey Data Figures given in parentheses indicates percent

Cash reduction is the most common form of incentive offered by the dealers

in all the five kitchen appliances for attracting new customers. 50 percent each of the

dealers in mixer grinder, refrigerator and pressure cooker opined that they give cash

reduction to the customers for their fresh purchase. More than 60 percent of the

dealers in grinder and gas stove also commented so. Interest free loan and exchange

offer were also equally popular incentives offered by some of the dealers in kitchen

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appliances for increasing their sales. Free gifts are practiced by a very few number of

dealers in relatively low priced kitchen appliances like grinder, gas stove and

pressure cooker.

5.41 Sales Promotional Incentives Offered by Dealers in Kitchen Appliances –

Location Wise analysis

The kind of offer or incentive that a customer expects for his purchase – is a

very crucial decision before a dealer. Normally the customer expectation is a

function of his socio economic profile, which might be different for different

customers hailing from different geographical areas. So a dealer might consider the

location factors also before finalizing a decision on his consumer sales promotion

program. The following section shall unfold the difference in sales promotion

incentives offered by dealers in kitchen appliances from different market segments

for pushing up their sales in the area.

5.42 Sales Promotional Incentives Offered by Dealers of Mixer Grinder –

Location Wise Analysis

Table T 5.38 gives a record of strategic differences among the dealers in

mixer grinder from different market segments in deciding the sales promotional

incentives to their customers.

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Table T 5.38 Location Wise Distribution of Type of Incentives Offered by

Dealers of Mixer Grinder

Type of

Incentives



No. % No. % No. % No. %

Cash Reduction 10 50 10 50 5 50 25 50

Interest free

Loans - - 5 25 5 50 10 20

Free Gifts - - - - - - - -

Exchange Offer 10 50 5 25 - - 15 30

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Cash reduction is the most common form of incentive offered by the dealers

for increasing their sale of mixer grinder in the entire market area. 50 percent each of

the dealers in mixer grinder from the three market segments offer this incentive to

new customers for their purchase. Remaining 50 percent of dealers in rural segment,

by considering the relatively low income profile of the rural people, offer their

customers to make payment of the price of the mixer grinder in installments. But in

semi urban areas, 25 percent of the dealers offer installment payment system and

remaining 25 percent give “exchange of old goods with new”. On realizing the

lifestyle of the urban people, 50 percent of the dealers from urban area use this

promotional technique by offering the new pressure cooker in exchange for the old

ones.

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5.43 Sales Promotional Incentives Offered by Dealers of Grinder – Location

Wise Analysis

Table T 5.39 unfolds the dissimilarities among the dealers in grinder from

different market segments of Kerala in designing their sales promotional incentive

schemes.

Table T 5.39 Location Wise Distribution of Type of Incentives Offered by Dealers of Grinder

Type of

Incentives



No. % No. % No. % No. %

Cash Reduction 6 60 14 70 5 50 25 62.5

Interest free

Loans 2 20 3 15 - - 5 12.5

Free Gifts - - - - 2 20 2 5

Exchange Offer 2 20 3 15 3 30 8 20

Total 10 100 20 100 10 100 40 100

Source: Survey Data

In the case of Grinder also cash reduction is the prominent strategy adopted

by its dealers across different market segments in pursuing their customers to buy the

new product. In addition to this, exchange offers are also made by the dealers to

influence the existing users of grinder for replacing their old ones. Interest free loan

or payment of price in installments is also applied by some selected dealers from

urban and semi urban market to attract the customers who are running at their

budget. Very few dealers in rural market also announce free gifts to the new buyers

of grinder.

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5.44 Sales Promotional Incentives Offered by Dealers of Refrigerator – Location

Wise Analysis

Table T 5.40 gives a summary of strategic differences among the dealers in

refrigerator from different market segments in offering sales promotional incentives

to promote their sales


Dealers of Refrigerator

Type of Incentives



No. % No. % No. % No. %

Cash Reduction 10 50 7 47 3 60 20 50

Interest free Loans 8 40 5 33 2 40 15 30

Free Gifts - - - - - - - -

Exchange Offer 2 10 3 20 - - 5 20

Total 20 100 15 100 5 100 40 100

Source: Survey Data

Cash reduction and interest free loans are the major strategies pursued by the

dealers of the refrigerator for influencing the customer behavior irrespective of the

market where they operate. Cent percent of the dealers from rural market, 90 percent

dealers from urban market and 80 percent dealers from semi urban market have been

applying these strategies for improving their sales. Though, exchange offer also is

made by a small fraction of dealers from urban and semi urban market, it cannot be

considered as a normal one in the case of the refrigerator as the percentage of

exchange price offered by the dealer in terms of the price for the new product is only

marginal. None of the dealers in refrigerator is making any free gift offer to the

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customers for influencing their buyer behavior and choosing him as the dealer for

their purchase.

5.45 Sales Promotional Incentives Offered by Dealers of Gas Stove – Location

Wise Analysis

Table T 5.41 summarizes the differences among the dealers in gas stove from

different market segments of Kerala in terms of their sales promotional strategies.


Dealers of Gas Stove

Type of Incentives



Cash Reduction 7 35 15 75 8 80 30 60

Interest free Loans 3 15 2 10 - - 5 10

Free Gifts 3 15 - - 2 20 5 10

Exchange Offer 7 35 3 15 - - 10 20


Cash reduction and exchange offer are the popular marketing strategies

among the dealers in gas stove from urban market. 35 percent each of the dealers

from that segment offer these incentives for influencing the buyer behavior in their

domain. Out of the remaining 30 percent, 15 percent each offer free gifts and

installment payment for motivating the urban customer to make a purchase decision.

But in the case of semi urban and rural segment, cash reduction is still the most

popular strategy among the dealers by giving limited importance to other ones. One

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important point to be noted here is that, in the relatively lower income profile

segment, that is rural segment, none of the dealers offer any credit facility to attract

the customers. This could be attributed to the fact that, in rural segment, low priced

kitchen appliances market segment is still under the control of unorganized sector

which by means of its direct access influences the rural customer by making

available to them the products under installment payment system.

5.46 Sales Promotional Incentives Offered by Dealers of Pressure Cooker –


Distribution of dealers in pressure cooker from different market segments on

the basis of the type of incentives offered to the customers for the promotion of their

sales is given in Table T 5.42


Dealers of Pressure Cooker

Type of Incentives



No. % No. % No. % No. %

Cash Reduction 10 50 10 50 5 50 25 50

Interest free Loans 5 25 5 25 - - 10 20

Free Gifts - - 3 15 2 20 5 10

Exchange Offer 5 25 2 10 3 30 10 20


The pattern of sales promotion strategies adopted by the dealers in gas stove

was more or less repeated in the case of pressure cooker also. This could be

attributed to two reasons. One is that both are relatively lower priced items in the

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kitchen appliance industry and the second is their utility in kitchen is closely related.

However, unlike the dealers in gas stove, the urban dealers in pressure cooker do not

offer any free gift, but the semi urban ones give such offers to the customers for

choosing them as their supplier.

5.47 Market Wise Differences among the Dealers in Kitchen Appliances in

Offering Incentives to the Consumers – Chi square Analysis

For testing the significance of difference in the type of incentives offered by

the dealers from various geographic market segments of Kerala for imbibing the

customers of Kitchen appliances there, the study has administered ‘Chi square’ test.

As per the results of the test explained in Table T5.43 it is known that market wise

disparity in designing incentive schemes for boosting up the sales of dealers exists

only in the case of relatively more selective items in terms of utility, (the Grinders

only - at 5 per cent level of significance). In all other cases of Kitchen appliances, the

market wise differences of dealers in this regard are not significant at any level.

Table T 5.43 Market Wise Differences among the Dealers in Kitchen Appliances in Offering

Incentives to the Consumers – Chi square Analysis

Kitchen Appliances Pearson Chi-Square

Value P Value


Grinder 8.600 0.014*


Gas Stove 1.653 0.438


Source: Survey Data *Significant at 5 percent level.

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5.48 Popular Brands in Kitchen Appliances – Dealers Opinion

In the survey administered among the selected dealers in kitchen appliances,

a question directing the opinion of dealers about the most popular brand in various

product segments was enquired. The purpose of this question was to compare the

name of the market leader in a particular segment as traced out by the consumer

survey with that revealed by the dealer survey of the study. Otherwise the study will

neither be more meaningful nor produce any reliable result. Table T 5.44 unfolds the

details of dealer opinion as to the market leaders in different product segments.

Table T 5.44 Popular Brands in Kitchen Appliances


No. % No. % No % No % No. %

Sumeet 23 46 Laxmi 20 50 Godrej 18 45 Butterfly 35 70 Prestige 25 50 Maharaja 16 32 Maharaja 8 20 LG 8 20 Inalsa 3 6 Hawkins 10 20 Inalsa 4 8 Inalsa 4 10 Whirlpool 6 15 Bajaj 4 8 Butterfly 10 20 Preethy 7 14 Butterfly 8 20 Samsung 6 15 Pigeon 8 16 Pigeon 5 10 - - - - - - BPL 2 5 - - - - - - Total 50 100 Total 40 100 Total 40 100 Total 50 100 Total 50 100 Source: Survey Data

According to the opinion of the dealers, Sumeet was the most popular brand

in the mixer grinder segment of Kerala market. 46 percent of the dealers stood in

favor of sumeet as the leading brand followed by 32 percent for Maharaja, 14 percent

for Preethy and 8 percent for Inalsa.

In the case of grinder, Laxmi comes out as the dominating brand in the Kerala

market. 50 percent of the dealers in that product market are in favor of this opinion.

Out of the remaining 50 percent, 20 percent each believed Maharaja and Butterfly

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are the leading brands and only 10 percent commented that relatively non popular

brand, Inalsa as the leading one.

According to the opinion of dealers in refrigerator, the traditional brand

Godrej still keep its first position in the refrigerator industry. 45 percent of dealers

support this statement. LG is in the second position in dealer survey with 20 percent

and Whirlpool and Samsung, the close rival of LG from its homeland, are in the third

position with 15 percent each. The thrown out brand, BPL has gained only 5 percent

of the dealer response.

Butterfly emerges as the leading brand in gas stove industry of Kerala. 70

percent of the dealers in butterfly hold this view. Other three selected brands have

only marginal share in the gas stove market.

Prestige occupies the prime position in terms of market leadership in the

pressure cooker segment in Kerala. One half of the dealer’s response was in favor of

this statement. Other three selected brands – Hawkins, Butterfly and Pigeon have

almost equal market share in the industry according to the dealer response observed

in this regard.

5.49 Dealers Opinion as to Most Popular Brands in Kitchen Appliances

Industry of Kerala – Location Wise Analysis

Dealers or distributors personally know about the popularity of the Firm’s

product, the share of a brand in the market, its acceptability by the consumers and so

on. Dealers who operate in different geographic segments such as urban, semi urban

and rural have differences of opinion as to the market leadership or popularity of

brands in the segments they operate. This is mainly because each market segment

reflects physical location and its attending conditions such as varied income profile,

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knowledge base and other relevant demographic variables related to the consumer.

Dealers might have more exposure to the dynamic state of market conditions and

also to the change in the habits and living conditions of the consumer community.

5.50 Dealer’s Opinion as to Popular Brand of Mixer Grinder – Location Wise

Analysis

Unity/Diversity in the popularity of different brands of mixer grinders among

the consumers from various segments of Kerala from the perception of its dealer are

explained in Table T 5.45

Table T 5.45 Location Wise Distribution of Popular Brand of Mixer Grinder

Mixer Grinder



No. % No. % No. % No. %

Sumeet 10 50 8 40 5 50 23 46 Maharaja 5 25 7 35 4 40 16 32

Inalsa 3 15 4 20 - - 7 14

Preethy 2 10 1 5 1 10 4 8


According to the opinion of dealers in mixer grinder surveyed for the study,

sumeet brand of mixer grinder occupy the prime position in terms of its popularity

and market leadership among the consumers of Kerala regardless of the market

segment where it is sold. When 50 percent each of the dealers in urban and rural

segment commented that popularity of Sumeet brand as high, 40 percent of semi

urban dealers hold the same view. 25 percent dealers from urban, 35 percent from

semi urban and 40 percent dealers from rural segment viewed Maharaja as the most

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popular brand in their segments. Dealers’ opinion about the popularity of other two

brands – Inalsa and Preethy are found to be relatively scanty.

5.51 Dealers’ Opinion as to the Popular Brands of Grinder in the Market of

Kerala – Location Wise Analysis

Geographic segment wise differences if any, in the view of dealers of grinder

as to the popular brands in their product segment are listed in Table T 5.46

Table T 5.46 Location Wise Distribution of Popular Brand of Grinder

Grinder



No. % No. % No. % No. %

Laxmi 10 50 13 65 7 70 30 60 Maharaja 5 25 4 20 - - 9 18

Inalsa 2 10 - - - - 2 4 Butterfly 3 15 3 15 3 30 9 18

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Location wise differences in the opinion of dealers in grinder as to the market

leader do not exist as per the facts revealed by the analysis of Table T 5.51, many of

the dealers from different market segments are in favour of Laxmi as the market

leader in the grinder market of Kerala. One half of the dealers from the urban

segment, two third of the dealers from semi urban segment and 70 percent of the

dealers from rural area viewed Laxmi as the most popular brand. When relatively

large fraction of the remaining dealers from urban and semi urban segment have the

opinion that Maharaja is the most popular brand, Butterfly is the leading brand for

the rest of the dealers from rural segment.

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5.52 Dealer’s Opinion as to the Popular Brands of Refrigerator in the Market of


Table T 5.47 throws up the view points of dealers in refrigerator with regard

to the market leadership and brand popularity in the product segments which transact

their business.

Table T 5.47 Location Wise Distribution of Popular Brand of Refrigerator

Refrigerator



No. % No. % No. % No. %

Godrej 9 45 8 40 4 40 21 42

LG 5 25 3 15 2 20 10 20

Whirlpool 2 10 6 30 1 9 18

Samsung 3 15 2 10 1 10 6 12

BPL 1 5 1 5 2 20 4 8

Total 20 100 20 100 10 100 50 100

Source: Survey Data

There was more favorable disposition by the dealers in refrigerator towards

the well known brand, ‘Godrej’ as the market leader in all the three geographic

segments under study. More degree of convergence in this regard was shown

between urban and rural dealers where 45 percent each from these segments favored

Godrej and 20 to 25 percent supported the multinational giant, ‘LG’ as the market

Leader. When 40 percent of the semi urban dealers stand in favor of LG, relatively

larger fractions from the rest (30 percent) are of the view of Whirlpool, as the market

Leader. Other brands Samsung and BPL are relatively unpopular in all the three

segments.

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5.53 Dealer’s Opinion as to the Popular Brands in Gas Stove Market of Kerala –


Table T 5.48 produces some glimpses on the popularity of brands among the

consumers of Gas Stove in the market of Kerala from the view points of its dealers.

Table T 5.48 Location Wise Distribution of Popular Brand of Gas Stove

Gas Stove



No. % No. % No. % No. %

Butterfly 14 70 15 75 6 60 35 70

Inalsa 1 5 1 5 1 10 3 6

Bajaj 2 10 1 5 1 10 4 8

Pigeon 3 15 3 15 2 20 8 16

Total 20 100 20 100 10 100 50 100

Source: Survey Data

Butterfly brand of Gas Stove has been able to keep its position far ahead of its

competitors in the industry in terms of its popularity and market leadership from the

view point of dealers in the segment. 70 or more percent dealers from urban and semi

urban market and 60 percent dealers from the rural segment are of the view that this

brand is the market leader. Pigeon, like its market share from the perception of

consumers, keep the same position from the dealer point of view also.

5.54 Dealers’ Opinion as to the Popular Brands in Pressure Cooker Market of


Dealers may find the differences among the brands of pressure cooker in

terms of its popularity across the segments. This something might be based on the

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information gathered by them about the outlook and product knowledge of the

consumers who come from different demographics.

Table T5.49 Location Wise Distribution of Popular Brand of Pressure Cooker

Pressure Cookerr



Prestige 10 50 10 50 5 50 25 50

Hawkins 3 15 5 25 2 20 10 20 Butterfly 4 20 3 15 3 30 10 20

Pigeon 3 15 2 10 - - 5 10 Total 20 100 20 100 10 100 50 100 Source: Survey Data

Analysis of Table T 5.49 reveals that Prestige is the most popular brand of

Pressure Cooker in Kerala. Dealers who have comment this brand as the most

popular one are uniformly distributed (50 percent across the market segments

considered under study). When 25 percent of the semi urban dealers perceive

Hawkins as the leading brand, 20 percent of the urban dealers and 30 percent of rural

dealers favored Butterfly. A close analysis of the dealers’ opinion also indicates that

almost all brands of Pressure Cooker have some sort of popularity in different market

segments of Kerala.

5.55 Dealer Perception as to the Popularity of Brands of Kitchen Appliances in

Various Market Segments – Inferential Analysis

Statistical significance of Market wise differences in perception of dealers in

Kitchen appliances market of Kerala as to the popularity of the brands traded there

are verified with the help of inferential statistics. The test results reported in Table

T5.50 justified the findings of descriptive analysis as the statistically significant

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difference in this regard is not observed in any of the product segments. So it is

inferred that there is a consensus among the dealers from different market segments

of Kitchen appliances market of Kerala as to the popularity of various brands traded

in the product segments selected for the study.

Table T 5.50 Association between Location of Business and Dealer Perception as to the

Popularity of Brands in Kitchen Appliances Industry – Inferential Statistics

Kitchen Appliances Pearson Chi-Square

Value P Value


Grinder 0.221 0.895


Gas Stove 1.612 0.447


Source: Survey Data

In Kerala almost all brands in the Kitchen appliances industry have dealers

across the market to sell their products to widely disbursed customers. Many of these

dealers have been maintaining glowing product portfolio as well as brand portfolio

by incorporating well reputed brands of each product. Market wise diversity in

pattern of brand portfolio is found to be not much generic among the dealers in most

of the Kitchen appliances. Most of the dealers pursue more or less similar promotion

strategies regardless of the market they operate or product they deal in. However

market wise differences are observed in promotion strategies practiced by the dealers

in some selected goods.

chapter v distributors’ strategies -...

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