Marketing Research on

Microwave-Oven

Presented By-
Vinath Hedge MMM-07-02
Nikhil Padale MMM-07-05
INDIAN CONSUMER
Indian consumer was like a…..

Child
Today the consumer is like a...

teenager
 Road Map

 Profile of the Indian Consumer.

 Types of consumers based on the economic status.

 Psycho-graphics of the Indian Consumers.

 Types of Consumer Markets.

 Evolution of the Indian Markets.

 A walk into the future.

 The Growing Population…..

2001
60 + 1996
55 - 59
45 - 54
35 - 44
25 - 34
20 - 24
15 - 19
5 - 14
0-4

0 50 100 150 200 250 300

 ….Growing Illiteracy

professionals
PG

grad.

not grad.
rural
SSC/HSC urban
school 5 - 9yrs

school 4yrs
literate no
school
illiterate

0 10 20 30 40
 Rising urban household incomes..

total

very rich

consuming 2001-02
1992-93
climbers

aspirants

destitutes

0 10 20 30 40 50 60
 Rising rural household incomes..

total

very rich

consuming

climbers

aspirants

destitutes 2001-02
1992-93
0 20 40 60 80 100 120 140
 Top 10 Symbols

 Microwave Ovens :
 Comfort level as well as stability in prices

 Holiday Abroad :
 Indian holidays have become more adventurous

 Job / Business :
 Although being one’s own boss or holding a key

position is held in high esteem - there are other

avenues / sources for wealth
 Monetary Profile

 75% have annual household income between, 50,000 –

1,50,000.

 71% own flat/house.

 73% own vehicle.

 85% own colour TV.

 5% own PC.
India's Middle Class

“yeh dil maangey more”!!!

Take home packets

Categories 1994-95 2000-01

Lower middle class 22,501-45,000 33,751-67500

Middle class 45001-70000 67501-1,05,000

Upper middle class 70,001-96,000 1,05,000-1,44,000

 Introduction

Many years of respect passed for that fire. Then one

chilly night, sitting around it for warmth from the winter
cold, some clumsy cave man dropped his raw piece of
meat into that fire. Before he could get it out of the fire
and let it cool a bit to gnaw on again it was cooked.
What
did that taste like? Like most foods, it could have been
better tasting after falling in the fire, or his palate found
the taste repulsive after being used to the taste of raw
meat. If he found the taste to his liking, he probably told
his friends about it, and they tried it.
 Inception

 A conventional oven uses radiant energy to transfer heat to food products. The
problem with radiant transfer is that you need to wait for the heat to penetrate
the thermal barrier or cool air zone around the food before the heat is
transferred to the product.

 The first technology to speed things up was the development of the convection
oven. The convection oven differs from the standard oven in that it adds forced
air movement to strip away the cool thermal barrier allowing faster heat
transfer.

 Convection ovens could be operated at a lower temperature than traditional

ovens while cooking more evenly.

 The production improvements in convection ovens directed at giving operators

a quicker finished product and better results have all but eliminated the
conventional oven from the modern kitchen .
Objective

To find out the consumer behavior and their preferences

with respect to cooking methods with a value added
technology in Indian market .
Why: Microwave Market

 Compared to the international status ,the Indian

microwave industry is in nascent stage.

 This product is in a low priority area and minimal

government assistance is expected unless there is a
possibility of earning foreign exchange .

 Still India is not into large extend of a microwavable

Indian food since this is also a potential foreign exchange
earner for Indian living abroad
Secondary Research
Purpose
 Size of Market &Market Trends

 Microwave oven category grew by a sizeable 84.7 per cent during the first
eleven months of the last fiscal. 231,977 microwave ovens were sold
during the period.

 Since March to June and September to December is the peak season for
selling microwave ovens, can hope to contribute additional 40 per cent to
its annual sales.

 According to industry data, while the solo microwave oven models sold
some 70,838 units in the period, the combination models grew 73.1 per
cent with sales of 104,545 units.

 Further, the convection models grew by 101.2 per cent to 56,594 units
during the period.
 Market Share of Microwave Ovens

 Markets for Micro-wave Ovens

According to Industry analysts the sales are predominantly in the urban areas,
semi-urban towns have emerged as a key growth driver for the category.

 Market-Share for Microwave Ovens

LG -41.5%
Samsung -38%
IFB - 9.8%
Kenstar -9.05%

The combined market share of the rest of the Indian brands 1.5%.

The competition is also become hot due to entry of Brands like Haier and Anchor
Daewoo, and with existing players charting a range of new product launches.
 According to FICCI Production growth of microwave
oven
Projected Market Share
Microwave oven
 Forecast by Leading Players

 LG plans to sell around 1 lakh units of microwaves this year, as compared

to 60,000 units sold last year.

 LG hopes to contribute additional 40 per cent to its annual sales.

 In the microwave ovens market, LG and Samsung contributes 70 per cent,

at present, and, the penetration levels of the emerging brands such as
Kenstar, Whirlpool, Electrolux being low, they will help expand the market.

 “In Maharashtra alone the market share of LG in the microwave oven

segment is 40 per cent, whereas, on an all India basis it is 35 per cent, he
added
Market Segments

 Industrial Micro-wave Oven

 Residence

 Canteens (School ,College and Corporate Offices)

 Restaurants
 SWOT ANALYSIS

 Strengths
1. First mover aspects by focusing on Health Aspects
2. Analyze consumer Behavior Well
3. Fast Growth

 Weakness
1. New Product so consumers might not accept the product
2. Less advanced product then competitor product
SWOT ANALYSIS

 Opportunities
1. Huge untapped Market
2. Market Presence due to present TV sets

 Threats
1. Entry of more Competitors
2. Daily changes in Technology
Primary Research
List of Few Questions

 What are the cooking habit at home

 For what purpose you use microwave
 How long you are using microwave
 Profile of people who use microwave
 Pricing issues…..
 Profile of Users

Consumption Married Single

45
40      
35 Users 45 5
30
25      
Consumotion Consumption
20
Married Non users 25 4
15
10 Single
5      
0      
1 2 3 4 5 6
Martial Status
 Number of Users of Different Brand

NUMBER OF
25
BRAND USERS (X)
20
LG 20
% of users

15
Samsung 17
10
Kenstar 6
5
Onida 12
0
ng r j er E Bajaj 4
LG ta da ja ai S
su ns ni Ba
H U
m Ke O T
Sa N
O Haier 2
DO
Brands DO NOT USE 18

   

  79
 Purchase power with additional features

Purchase power with additional features

30

25

Additional 20 Additional features

Additional features Ovens Microwave features
Ovens

illingtoshift
15
        Microwave
Users willing to shift 23 27 25 10 Additional features

w
        5
       
0
Non users willing to
invest     18 1 2 3 4 5 6 7

        user

       
Identify: Competition and Consumer Need

 To manufacture microwave ovens with coffee dispensers, and,

microwave ovens with toasters,

 In addition, also plan to strongly focus at promoting our high-end

convection range of microwave ovens that provide the facilities of
convection from cooking to grilling to baking.

 The company can also plan to launch new online cooking recipes
contest which will generate an additional 2 per cent to the
company’s annual sales. And, in the next year, the contribution will
be 5 per cent.
Promotion and Strategies

Demonstration of product in Shopping Mall

Tie-up with stores like Croma,Vijay Sales etc

Home Demonstration and Health Platform as per USP

Home Demonstration and Post Purchase Service

Advertising Campaign
 Direct Selling (as a tool for Direct Marketing)

As a text book defines it as

“The direct personnel presentation ,Demonstration,
and Sale of Products and Services to Consumers,
Usually in their homes or at there Jobs”
A GENERATION WAS RAISED ON A
DIET OF AUSTERITY, WHERE THRIFT
WAS A GREAT VIRTUE, AND WHERE
ANYTHING EXCEPT BASIC
CONSUMPTION WAS FROWNED
UPON.
Well….

THAT WAS INDIAN CONSUMER OF

YESTER YEARS!!!
CIRCA 2002 A.D.

HAS THE INDIAN CONSUMER SHAKEN

OFF THE YOKE OF GHULAMI?????
YES!!!!!!
TODAY THE CAR IS ASPIRATIONAL, NOT THE
TWO-WHEELER……

OWNED HOMES ARE, NOT RENTED

ACCOMODATION….
SO PEOPLE ARE LOOKING FASTER COOKING
METHODS….
THANK YOU