Comparative Analysis of Frost Free Refrigerator Industry (Whirlpool India)

Name:         Gaurav Kumar Joshi (2007 – 2009)

Title:           Comparative Analysis of Frost Free Refrigerator Industry (Whirlpool India)

Summary

Analyzing the company in the backdrop of Indian home was considered being important because it is highly competitive market and it is very important to know where a company stands in this industry.

For a developing country like India, market of consumer durable products is essential as it provides tremendous employment potential and exports earnings. Being the land of manufacturing refrigerators at the cheapest cost in the world, the current refrigerator industry can act as the motive power growth for a rapidly developing Indian economy and in making India a significant player in the world market. 

Whirlpool is a known brand; its products like Refrigerators and Washing machines are competing with other leading foreign brands such as L.G. and Samsung. The selling of a product like Refrigerator takes place through a dealer direct or indirectly procuring the Co’s products from its distributors. Therefore it is imperative that the dealer plays a major role in the Consumer Buying Process. The objective of my study was to analyze the Whirlpool Brand vis-à-vis its competitor’s products and do a detailed retail audit to identify the gaps and analyze the effectiveness of a dealer’s support given to a Brand, directly affecting sales of that company.

Market research study has been conducted in order to know preferences of the customers for company’s products.

The findings end by highlighting Whirlpool achievements over the past few years and its future plan for the country.

The conclusion and recommendation have been drawn keeping the detailed industry and company analysis in mind. Certain clippings and brochures have been included in end as annexure.

Findings

1. Market leader of Frost Free Refrigerators is LG followed by Samsung and Whirlpool.
2. According to dealers, price along with brand image and product performance are the most important reason behind any brand being best selling.
3. The general belief among the dealers is that prices of Whirlpool are bit too high as compared to competitors. People are still price conscious and it plays a major role in buying.
4. Dealer’s push for a particular brand also affects the consumer’s buying decision as their convincing power can convert the customers from one brand to another. And dealer pushes that brand which gives him high margins, best offers and quick After Sales Service.

1. Most of the dealers surveyed believed technology use is the most important factor that affects consumer-buying decision as it makes difference between various brands.
2. According to dealers advertisements along with word of mouth affects consumer-buying decision.
3. After Sales Service plays a major role in consumer buying decision. If a company provides fast and effective after sales service it can create a positive impression for both the dealers and consumer.

Recommendations

(For Product)

1. Presence of castor wheels in all models to allow easy mobility.
2. Pedestal with onion and potatoes tray should be present in Lower and Medium Frost Free Refrigerators.
3. Presence in 300 Liters and above 450 Liters range, as this segment is contributed 10% of Frost Free.
4. Presence of more models in between MOP price of Rs9000/- to Rs13000/- as compared to LG that already have 3 models in the market.
5. In 350L, 400L, 450L models can also be introduced without electronic panel to offer better pricing.
6. Models in Medium Frost Free levels can be introduced with digital display as per the competitor like Electrolux.
7. Introduce Water Dispenser in the 350 Liters and above models.
8. The 6th Sense Door Open Alarm should be introduced in all models to get competitive advantage.
9. Presence of Lemon Box in all models.
10. Can rack can be introduced in Elite models.
11. Color of the glass of the Crisper can be made light green or light blue to reveal purity and freshness. It enhances customer psychology.
12. In order to maintain a status level, Whirlpool can also launch extremely hi-end products such as TV refrigerator as of LG.

(For Promotions)

1. Company needs to come up with more hoardings in cities. This is because companies like Samsung, L.G. have substantial number of their hoardings being placed as compared to ours and they are reaping rich returns out of it.
2. In small towns company need to stress more on wall paintings. This is because wall paintings are very strong mode of brand awareness in small places.
3. The frequency of paper advertisement is low and it has to be increased. This is because people tend to follow paper (local newspaper) very closely. If company increases the frequency of advertisement in local newspaper, people will be much more aware of the brand and it will help the company in increasing its customer base.
4. Company should also give in more advertisement in local channels to make the consumer mind fix on our brand. So tat whenever the consumer decides to buy, our brand gets the first priority out of the other brands.
5. Word of mouth is found as the most serious medium of communication as per customer response. The most effective method to achieve this is via Brand Ambassadors- one-to-one marketing efforts.  The company has come up with a new advertising campaign featuring the couple brand ambassadors, Ajay Devgan and Kajol. Brand Ambassadors actually reinforce advertising by translating the general message to the street level.
6. As women plays major role in purchasing home appliances, Whirlpool should couple it high range products in every product category with offers exclusively for women like free jewellery etc. with help women.
7. The company should introduce “Tell a friend” programs motivating people to bring new customers through reward points.
8. The web site of Whirlpool is very poor. The company should give more stress on web-site development. The company should establish e-commerce websites that would widen its customer base and enthused growth in the business.
9. Organize product on wheels is an excellent way to communicate what the Whirlpool brand is all about. Carry the product in a vehicle (preferably a truck / trailer) and travel across the cities setting up the entire display at each stop. These stops included localities where penetration of brand is low. This is an opportunity for communicating with consumers on a one-to-one basis.
10. Some societal functions like Diwali Mela, cultural festivals, etc. should be sponsored in cities, which could improve the brand awareness.
11. The company can have a tie up with Big Bazaar, event management companies and should encourage affiliation programs.     
12. The company should encourage scratch cards as discounts and offers affect consumer-buying decision. The company should also regularly give schemes and offers to dealers as with their convincing power they can convert the customers from the competitive brand to another.

(For Placement)

1. Dealers should monitor constantly so as to see how exactly they are functioning. This can give company the idea that how much loyal the dealers are. This if not checked would prove detrimental in long run.
2. A sales promoter should be present at dealer’s point whose main job would be to push in the company sale and lower the sale of other brands.
3. Whirlpool shops should be at highly visible places, as it will attract more customers. The company should have Whirlpool exclusive showrooms in all areas especially in area like Noida where the demand is high.  

Limitations

1. Refusal on part of the dealers to give any type of information at all.
2. The respondents are not willing to disclose information related to margin or offers and schemes.
3. Research was disguised for Whirlpool dealers also, otherwise they may have responded properly.

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The above article is a summary extract from the dissertation projects of the MBA and BBA students of Skyline College. Skyline, situated in Delhi and Gurgaon (NCR) is a premier institute providing management education specialising in MBA and BBA degrees and specialist courses for travel and tourism as well as mass communication.