Continuous Assessment (January 2020)

Done by - Sanjay Siva Kumar.

1. Could the refrigerator market be segmented on geographical base

planned by Electrolux?

Answer – Basically Electrolux have captured all the 3 companies, Kelvinator,

Voltas and Allwyn. And as we all know both Allwyn & Kelvinator are market
leaders and popular brands in south and north Indian market respectively. Whereas
Voltas on the other side has got a good brand image and has captured the market
all over India. According to me I think the refrigerator cannot be segmented based
on the geographical base, because once the market have been captured by several
brands, the next thing the customer think is about the quality, features provided in
the specific price segment & price of the product. And also the usage type is same
in all over India. So, I don’t think it is possible for company to segregate the
market based on the geographical assumptions.

2. What would be the marketing mix for rural market?

Answer – The marketing mix for rural market are as follows –

The food which is consumed by the rural people should be taken into account,
because the people will probably prefer natural foods over derived & persevered
food, and the refrigerator should be reliable to the consumers as well as the price,
where it should be money valued because people in rural will not consider buying
the product if the pricing is high. The storage capacity of the refrigerators should
be around 150-200l, because people there will not use refrigerator unless and until
it is for dairy products and the allocation space inside the refrigerator should be
given more for keeping vegetables. Selling stabilizer separately will not be
encouraged by the people there; this will also tend to lose their interest in buying
the product. So selling an inbuilt stabilizer would be a better option. Almost 60%
of India is on rural areas so considering the product according to the rural
atmosphere and going into the market will be beneficial.

3. Would 125 L and 150 L models be an ideal choice to launch in rural

market?

Answer – The people in rural area will prefer a small refrigerator only; I think they
will use it to store only dairy products. And the price of the 125L – 150L would be
less, which means the probability of 125 -150 L refrigerator selling will be high.