pricing and channel
TRANSCRIPT
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.