Marketing Microwave Ovens to a New Market Segment Essay

Executive Summary tweed Appliances is an international confederation that specializes in manufacturing and intellectual nourishment commercialiseing appliances glob everyy. The company is hygienic spotn for their line of micro- alters. Whereas or so of their crops atomic number 18 manufactured in the U.S and while most of the appliances are exported to the U.S and the European merchandise, ashen Appliances likewise market places several eminent up-end models in India where they face some issues in trying to penetrate the market. Moreover, the demand for zap ovens has gradually increased in the past couple of years. Subsequently light Appliances had to come to a endeavor that in growth to the market of their high-end models, they must introduce refreshing micro-cook ovens at all impairment levels in order to stone pit the wide amount of kinfolks in India. By evaluating the problems such as the culture differences in the midst of the west and the east or wh ether it is the consumers limited knowledge towards the ho use uphold appliance, we determined the contrastive strategies and alternatives to tackle such issues.Statement of the ProblemThe depicted object study focuses on the challenges of the Indian kitchen appliancesmarket for microwaves. Before the liberalization of the Indian economy, only a few local companies were the study players in the kitchen appliances market. But, aft(prenominal) opening the market for foreign competitors also global players like e.g. Samsung or LG push into the market. The kitchen appliances market seems to be real lustrous as abundant growth in the next years is predicted. Nevertheless this emerging market in India focuses several challenges. At first the Indian market for microwaves is precise different from the Ameri chamberpot market where the market share holding companies are very victorful.There are several cultural specifies to consider. The Indian fodder for example differs a lot from the Ameri put up. While Indian diet has a high significance for the populate, is elegant complex and time consuming to cook the Americans emphasize an easy and simple way of readying. Indians prefer cooking with odoriferous ingredients, a great variety of spices and herbs and hand their own list of cooking techniques and equipments that are deprivationed for the recipe. Contrary, the Americans prefer their food grilled or signal or else than steamed cooked over dry heat. But, there are non only crosscultural differences concerning the food, there are also differences between the geographic areas of India itself as the Indian cuisine varies between the Southern and Northern fictitious character of the country.3Further, there are evidentiary variations in the cultural characteristics. Indian hatful mostly live in big families with close alliances. In contrast, in the American society live a lot of single quite a picayune. As really individualistic culture, the families ties were non that tight as in India. atomic number 53 of the biggest challenges, that gather up to be faced, is the flattening knowledge of the consumers. Mostly Indian people do not know how to use the microwave properly. Most of the (potential) consumers do not expect that all of the Indian dishes can even be prepared in the microwave, not only heated up. So they miss the big advantages like timesaving at cooking, that nobody has to keep an eye on the food constantly while all vitamins and nutrients retain in the food and further to a greater extent than the simplification of cleaning afterwards.Another problem that goes hand in hand with the missing knowledge of the consumers is the price discussion of the microwaves. Forthe traditional silly Indian middle class, the very expensive first introduced microwave models were unattractive. to boot the models were not adequate for the Indian market as the big Indian vessels did not fit in. Even though most manufacturers reacted by conniving the microwaves concord to the special Indian needs and a price cut, the sales glitz did not increase notably. This leads to the chicken egg question for the company- the prices leave alone not come down easily until volumes up, while volume depends on prices.Additionally, the kitchen appliances market is nowadays predominated by some brands what betrays it more complicate for freshly companies to get more market share. On the other hand, there yet is a lot of potential to penetrate this relatively new market. especially the recent development like revolt living al-Qaidaards and wages and also the fact that household applications like washing machines are no highlife good any more, eases a market entry and increase of market share. Better access to consumer ken and the big advantages that microwave cooking could lick to consumers also strengthens the possibilities of a dust coat Appliances.4Situation AnalysisTo be successful in enter the Indian kitchen application market White Appliances need to identify controllable and uncontrollable elements of the markets. This can best be shown in a Strengths-Weaknesses-Opportunities-and-Threats-Analysis (SWOT).StrengthWeaknessesMicrowaves are easy to use and high school price for the customersunderstandable for almost everybodyMicrowaves arent common in India accessible and efficient way of The presence of microwaves atcookingIndian markets is rather weakTime SavingLongtime use of appliancesChicken-egg problem (price vs. racy technology- ideally for thevolume)technically affine Indian peopleWide ingathering range from high-end tobasic models with different categoriesOpportunitiesThreatsNew, diverse target companys in IndiaTrends in society (Healthavailable (men in the kitchen in world-wide, bachelors, students, youngin food industry, doubts ofwomen etc.)consciousness, slow movement trendmicrowave radiation)New form of lifestyles and rising assorted cultural background than inliving standar dsHigh affair in insane asylums andIndian society versus individualistictechnology of Indian people could beother markets (e.g. collectivisticAmericans) apply stronger by White AppliancesDifferent eating habits (Western vs.Indian food, fresh vs. convenientsales in the future dayProposed bright future for microwavefood, different eating habits) sole(prenominal) little market penetration byConsumers knowledge nearly the usecompetitorsof microwaves is little, difficult toProposed increase of retail storesconvince themEnvironment of competition tightensas the market is promising5Objectives and GoalsTo make the market entry in the Indian market successfully, it is important to set objectives and intermediate objectives. A goal is to find a suitable strategy to enter the market with longterm success. White appliance would like to establish itself on the market and to prevail a net incomest the major competitor. They want to increase their market share to profit from the proposed marke t development. Its important that they communicate their services and predict on the market. The people need getting to know quickly and effectively the microwaves from the White appliance. To increase the consciousness and the sale of microwave oven and especially of the microwaves from white appliance it is necessary to come on the knowledge of microwave cooking in India. People need to know how to use a microwave with all its functions. White appliance should have special product cracks to make the buying of a microwave more attractive. They have to offer different price ranges of the product and it can be useful to corporate with experienced partner for scattering.Strategy and EvaluationsFor entering a new market, a lot of decisions have to be made and a consistent strategy has to be implemented. In the following, a recommended strategy for the White Appliances Company exiting be introduced by focusing on product, price, distri barelyion and conversation, the marketing co re elementsof all products.(1) harvestingIn response to entering a new market and being confronted with new cultural and companionable behavior and habits, the adaption of the product to the Indian culture and cuisine is essential. To meet the critical needs of the new market, the investment in Research & Development as wholesome as in product innovation is a significant first step in developing a successful and sustainable marketing strategy. Especially value added features like user-friendly one-touch program buttons, an cypher saver mode or a microwave size that suits to Indian families and cooking habits need to be reconsidered in the product innovation process. and so every microwave model for the Indian market comes with high volume space, as this is essential to the Indian family sizes. Based on this, different microwave models will be implemented, which inhabit their special functions and features fitted to different target groups. The product range of White Appliance s should include at the beginning cardinal different models, one basic model in a lower price range to hand a high market penetration and present moment a 6 console model, for a target group, searching for a more favorable way of cooking with microwaves.The basic model aims to reach the advancing lower-middle class, which can be seen as the most prosperous target group. The microwave comes with a basic interface to set power and time. A manual guide will be provided to inform the customer how to make the best out of the different setting options. This microwave type will be manufactured in Asia, whereas low employment and import be can be reached, to establish a low product price. The comfort model comes with different program-buttons in addition, which eases handling and leads to a more pleasant cooking experience. This model targets the status-oriented middle-class, which aims to have a functional but comfortable cooking experience. The comfort model will be produced in the U.S., as the target group will be more timberconscious too. If these two microwave types are established successfully in the market, a high-price combimodel will be launched in a long-term strategy.It can already be seen, that combination-oven (convection and microwave) gain more and more importance, especially in a high-middle class, but as the production is way more costly, it is connected with a higher lay on the line as ROI has to be gained through high product prices. As higher the consumers investment, as more factors will be considered, whereas already animated brand conscious(predicate)ness in the market would be maintenanceive, what speaks as well for a product launch in a second phase. regardless of whether the customer decides to buy a basic, comfort, or premium microwave model, the invention of an excellent after-sales-service could be helpful in creating an USP (unique selling proposition) for White Appliances and to stand out from their competitors in the mark et. The implementation of a service-hotline, a customer-care website providing information according to the handling of the product and answering frequently asked questions as well as video-tutorials via YouTube, the offering of a repair service or warranties are tho some examples that could be considered in creating an excellent customer service. (2)PriceThe two respectively three different models will be established indoors their own price segment. The basic model will be sell in a cheap price range round round Rs. 5000. The cheap price has to be absorbed by a high volume. This is a run a risky step as a high sales rate is premise, but it is the only way to dissolve the chicken-egg-problem of low prices can only be reached through high volume. Further it gains a high penetration in the market and can raise brand sentience fast. The comfort model will be sold for round more or less Rs. 10.000. This establishes our brand, as a microwave seller for affordable models, but quali ty and more 7functional features will speak for the higher price.Besides, the offering of a coupled two years warrantee could increase the consumers attraction to this model. The premium model, which will be launched in the second phase, will be rolled-out to the market with a price of Rs. 15.000. To cut costs of production, a long-term goal could be to promote the basic microwave innovation in local manufacturing and only to continue importing the premium models. To support sales, a combination package with microwave glass-bowls and cooking equipment could be offered, in an each similar price range, which will be especially evoke to microwave starters. It can be assumed that a high dowry of the main target group buys a microwave forthe first time.(3) statistical distributionThe distribution will be best and easiest implemented through existing kitchen equipment retailers. This gives the opportunities to sell the own product in combination with special kitchen forward motion pack ages and fits to the existing consumer purchase habits.(4) CommunicationThe communication strategy can be divided into two parts. The first part aims to raise knowledge about microwaves and its functionality in general, whereas the second part pushes brand and product awareness of the White Appliance company. Consumers buy products not because of the product itself, but of its potential to solve an existing need. As Indian people are mainly new to the product microwave and its functions, most consumers wont be aware about the need to possess a microwave in their workaday life. Therefore one part of the communication strategy aims to raise general product awareness via sociable media and TVshow cooperation.For TV-show cooperation, existing, successful cooking shows could be used to present microwaves and their functionality for daily cooking. Of course the TV-studio would be equipped with microwaves from White Appliance, but in the communication the product usefulness is primer. In parts of social media marketing, a Facebook fan-page is imaginable, where microwave recipes and tips will be promoted. The social media site, shall be named more focused on its purpose and should not be included in the companys fan-page. Rather a powered by addition should make up the connection to the company. This naming makes sure, that it is findable for those, who want to know more about microwaves and its usefulness, further the site-name is promising for its purpose.8Besides an increased awareness about microwave and its functionality in general, the popularity of the own brand has to be pushed. This can be done sustainably via the following communication channelsTV-CommercialPromotion circumference (microwave party in style of Tupperware parties, food tasting on the street, in supermarkets etc.)Point-of-Sale specials as e.g. free microwave cook books, when buying an oven fracture special services to the client (video-tutorials on YouTube FAQ on website hotline)As well the c ommunication via an own App would be reasonable, but as the development of an app is pretty costly, a launch is recommended in the second phase, when the investment can be defrayed by the gained sales.As every strategy has its advantages and disadvantages, those will be presented in the following, to show the strengths of the strategy, but as well where weaknesses have to be eyed.(1) ProductTo enter the market with a basic model to reach the promising low-middle class target group seems pretty prosperous. Further he more comfort-oriented middle-class will be reached with a second model, so that the market entering strategy is based on a brought target group and the brand awareness will be raised by a penetration strategy. The risk of that strategy lies therein, that competitors might plan the same and the market will be overflowed by pricy microwaves.(2) PriceAs the production for the basic model takes place in the region, this leads to low production and logistic costs. In combinat ion with a high volume, themarket can be entered with a low price to reach the low-middle class. Although this sounds pretty promising, the strategy is not without any risk, as the success is depending on the sales volume, which has to be very high.(3) DistributionThe distribution via existing retailers leads to lower investments and the company doesnt need to care about the legal environment. Further an already existing and proof distribution system is used. Nevertheless the distribution via retailers performer a accepted loss of control, as 9those retailers have their own demands. The offer of a trade discount to all retail partners for the first year could be helpful to diminish this risk and to create an initial demand.(4) CommunicationThe communication strategy does not only focus on the product itself but rather on the general benefit of the usage of the product, which is the start of a sustainable product communication where the brand communication can be build on. But the penetration of the different channels as introduced means a big investment to the company.Recommendations and ContingenciesFor a sustainable and successful market approach, the whole strategy must be implemented in once, because all parts product, price, distribution, and communication depend on each other. Further it is important, that decent attention will be given to every single part of the strategy. When it was sensible, an implementation in two phases short-term and long-term is suggested, to decrease risk and base higher investments on the by then hopefully already existing success and high sales.The marketing strategy needs to be implemented carefully, avoiding to offend the socialcultural behavior and habits of the Indian community. Therefore the strategy has to be controlled and reconsidered all time while implementing, to detect further weaknesses and optimization potential. Only by paying attention to market behavior and key figures, the success of the running strat egy can be proofed and in shell adjusted.