PROJECT REPORT ON MARKETING STRATEGIES OF CONSUMER DURABLES

Marketing Strategies During Festival And Non-Festival Seasons- A Study With Specific Reference To Electronic Consumer Durables At Shubham Consumer Durables Pvt Ltd

1. INTRODUCTION

1.1 CONSUMER GOODS

Any commodity which is produced and subsequently consumed by the consumer, to

satisfy its current wants or needs, is a consumer good or final good. Consumer goods

are goods that are ultimately consumed rather than used in the production of another

good. Products that are purchased for consumption by the average consumer.

Alternatively called final goods, consumer goods are the end result of production and

manufacturing and are what a consumer will see on the store shelf. Clothing, food,

automobiles and jewelry are all examples of consumer goods. Basic materials such as

copper are not considered consumer goods because they must be transformed into

usable products.

Final goods or consumer good can be classified into the following categories:

1. Consumer Durables2. Consumer Nondurables

1.1.1. CONSUMER DURABLE

In economics, a durable good or a hard good is a good that does not quickly wear

out, or more specifically, one that yields utility over time rather than being

completely consumed in one use. Items like bricks could be considered perfectly

durable goods, because they should theoretically never wear out. Highly durable

goods such as refrigerators, cars, or mobile phones usually continue to be useful for

three or more years of use, so durable goods are typically characterized by long

periods between successive purchases.

Examples of consumer durable goods include cars, household goods (home

appliances, consumer electronics, furniture, etc.), sports equipment, firearms,

and toys.

1.1.2. CONSUMER NONDURABLES

Nondurable goods or soft goods (consumables) are the opposite of durable goods.

They may be defined either as goods that are immediately consumed in one use or

ones that have a lifespan of less than 3 years.

RV Institute of Management Page 1

https://en.wikipedia.org/wiki/Consumables

https://en.wikipedia.org/wiki/Toy

https://en.wikipedia.org/wiki/Firearms

https://en.wikipedia.org/wiki/Sports_equipment

https://en.wikipedia.org/wiki/Furniture

https://en.wikipedia.org/wiki/Consumer_electronics

https://en.wikipedia.org/wiki/Home_appliance

https://en.wikipedia.org/wiki/Home_appliance

https://en.wikipedia.org/wiki/Household_goods

https://en.wikipedia.org/wiki/Mobile_phone

https://en.wikipedia.org/wiki/Car

https://en.wikipedia.org/wiki/Refrigerator

https://en.wikipedia.org/wiki/Brick

https://en.wikipedia.org/wiki/Consumption_(economics)

https://en.wikipedia.org/wiki/Utility

https://en.wikipedia.org/wiki/Good_(economics)

https://en.wikipedia.org/wiki/Economics

https://en.wikipedia.org/wiki/Consumer

https://en.wikipedia.org/wiki/Commodity


Examples of nondurable goods include fast moving consumer goods such

as cosmetics and cleaning products, food, fuel, beer, cigarettes, medication, office

supplies, packaging and containers, paper and paper products, personal products,

rubber, plastics, textiles, clothing, and footwear.

While durable goods can usually be rented as well as bought, nondurable goods

generally are not rented. While buying durable goods comes under the category of

investment demand of goods, buying non-durables comes under the category of

consumption demand of goods.

1.2. OVERVIEW OF INDIA’S CONSUMER DURABLES MARKET

The Indian consumer durables industry has witnessed a considerable change over

the last few years. Changing lifestyle and higher disposable income coupled with

boom in the real estate and housing industry and a surge in advertising have been

instrumental in bringing about a sea change in the consumer behavior pattern.

Consumer durables involve any type of product purchased by consumers that is

manufactured for long-term use. As opposed to many goods that are intended for

consumption in short term, consumer durables are intended to endure regular usage

for several years or longer before their replacement is required. Just about every

household contains at least a few items that may be considered to be of consumer

durable nature. With India being the second fastest growing economy having a huge

consumer class, consumer durables have emerged as one of the fastest growing

industries in India.

India has an increasingly affluent middle class population that, on the back of rapid

economic growth, has made the country’s consumer durables industry highly

dynamic. The industry has been witnessing significant growth in recent years due to

several factors, such as retail boom, growing disposable income and availability of

easy finance schemes.

With the continuous inflow of disposable income and the advancement of technology,

the need for the varied consumer durable goods are increasing. This in turn is leading

to a strong competition among the different consumer durable brands available in the

nation as well as the price gap between the same consumer goods of different

companies are narrowing down. Day by day these goods are becoming cheaper. The


https://en.wikipedia.org/wiki/Cosmetics

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rural and urban market of consumer durables has been growing at a rate of around 15

% on an average.

1.2.1. GROWTH PROSPECTS

India is likely to emerge as the world’s largest middle class consumer market with an

aggregated consumer spend of nearly Rs.844 trillion by 2030, as per a report by

Deloitte titled 'India matters: Winning in growth markets'.

Fuelled by rising incomes and growing affordability, the consumer durables market is

expected to expand at a compound annual growth rate (CAGR) of 14.8 per cent to

Rs.812 billion in FY 2015 from Rs.474 billion in FY 2012. Urban markets account for

the major share (65 per cent) of total revenues in the Indian consumer durables sector.

In rural markets, durables, such as refrigerators, and consumer electronic goods are

likely to witness growing demand in the coming years. From Rs.136 billion in FY

2010, the rural market is expected to grow at a CAGR of 25 per cent to touch Rs.415

billion in FY 2015.

100% FDI allowed in the electronics hardware manufacturing sector under the

automatic route. The consumer durable sector raked in revenues worth Rs.474 billion

in FY12. Growth has been healthy over the years, recording a compounded annual

growth rate (CAGR) of 10.8 per cent over FY03-12. The consumer durables market is

expected to double at 14.8 per cent CAGR to reach Rs. 812 billion in FY15 from

Rs.409 billion in FY10.

Urban markets account for the major share (65 per cent) of total revenues in the

consumer durables sector in India. Demand in urban markets is likely to increase for

nonessential products such as LED TVs, laptops, split ACs and beauty and wellness

products. In rural markets, durables like refrigerators as well as consumer electronic

goods are likely to witness growing demand in the coming years.

The Indian consumer durables segment can be segmented into three groups:

a) White goods

b) Brown goods

c) Consumer electronics



White goods Brown goods Consumer electronics

Air conditioners

Refrigerators

Washing machines

Sewing machines

Watches and clocks

Cleaning

equipment

Other domestic

appliances

Microwave ovens

Cooking range

Chimneys

Mixers

Grinders

Electronic fans

Irons

TVs

Audio and video

systems

Electronic

accessories

PCs

Mobile phones

Digital cameras

DVDs

Camcorders

1.3. CONSUMER BEHAVIOUR

Consumer behavior or buyer behavior has attained increasing importance in a

consumer oriented marketing planning and management. The study of consumer

behavior is an attempt to understand what the consumer want, why they want. Clear

understanding of the buying behavior of consumer has become a great necessity in

modern marketing system, because success or failure ultimately depends upon the

buying behavior of the target customers considered individually or a group.

Therefore in order to undertake the marketing programmed among different segment

markets, the marketing management must find out the various factors that influences

in buying decisions of the consumer. The subject of buying behavior is relatively a

new discipline of the study of marketing. It has now become the central topic of

modern marketing since the ultimate aim of marketing is consumer satisfaction and

profit making.

Consumer behavior making be process defined and physical activities involved then

acquiring, decision evaluating, using and disposing of goods and service social and

physical behavior of potential customer as they become aware of evaluate purchase

consume and tell other people about the product and services. In other word

individual decide what, when, how and from where to purchase goods and s defined

as that behavior exhibited by people in planning, purchasing and using economic

goods and service in the satisfaction of their wants



1.3.1. CHARACTERISTICS OF BUYER BEHAVIOUR

Buyer behavior comprise mental and physical activates of a buyer when s/he

wants to buy goods and service to satisfy his needs

It includes both visible and invisible of buyer. The visible activates refer to

physical activity like actually going to the market place, buying the product

and consuming them. The invisible activates on the other hand, refer to mental

activates like thinking about the product, deciding to buy or not to buy that

product, to buy one brand instead of another etc

Buyer behavior is very complex and dynamic also. it is constantly changing

requiring the marketing management fails to make such adjustments , it would

certainly lose it market

An individual buying behavior is also influenced by internal factors such as

needs, habits, instincts, motives, attitudes etc and also by outside or

environmental factors such as family, social, groups, culture, status, positions,

economic and business conditions.

In narrow sense consumer behavior is the act when he is engaged in buying

and consuming a good or a service.

1.4. CONSUMER ELECTRONICS MARKET

The consumer electronics industry has witnessed a unique growth over the past few

years. This growth can be attributed to the increasing effect of state of the art

electronic devices on the market. The consumer electronics industry is ushering in the

dawn of Convergence. It is the confluence and merging of hitherto separated markets

of digital based audio, video and information technology, removing entry barriers

across the market and industry boundaries. This convergence of technologies has

resulted in a greater demand for consumer devices, be they portable, in-home (mobile

phones, digital camera) or in-car (CD/DVD players), offering multiple functions.

The revolution brought about by Digital technology has enabled the consumer

electronics sector to profit from the growing interaction of digital applications such

as: camcorders, DVD player/recorder, still camera, computer monitor, LCD TV etc. It

has also witnessed the emergence of mobile telecommunications technology,

incorporating both digital visual and digital MP3 capabilities. The computer industry

has also benefited by being able to make its way into consumer's living rooms.



HDTV's with VGA connections and SD/MMC card slots, personal media players, and

Microsoft-based Media Center PCs have pushed the two industries even closer

together than before.

The India Consumer Electronics Report provides industry professionals and

strategists, corporate analysts, electronics associations, government departments and

regulatory bodies with independent forecasts and competitive intelligence on India's

consumer electronics industry. Spending on consumer electronics devices is projected

to grow at an overall CAGR (compounded annual growth rate) of 14% through 2015,

with the key segments including low-cost mobile handsets, colour TVs, set-top boxes

and notebook computers.

1.5. SWOT ANALYSIS OF ELECTRONICS INDUSTRY

Strengths

1. Presence of established distribution networks in both urban and rural areas

2. Presence of well-known brands

3. In recent years, organized sector has increased its share in the market vis-a-vis

the unorganized sector.

Weaknesses

1. Demand is seasonal and is high during festive season

2. Demand is dependent on good monsoons

3. Poor government spending on infrastructure

4. Low purchasing power of consumers

Opportunities

1. In India, the penetration level of white goods is lower as compared to other

developing countries.

2. Unexploited rural market

3. Rapid urbanization

4. Increase in income levels, i.e. increase in purchasing power of consumers

5. Easy availability of finance

Threats

1. Higher import duties on raw materials imposed in the Budget

2. Cheap imports from Singapore, China and other Asian countries

1.6. TRENDS IN ELECTRONIC MARKET



Propelled by growing middle class population, changing lifestyle and rapid

urbanization, the Indian consumer electronics industry is forecasted to grow at a rapid

rate of 10% to 12% in the coming few years

Volume sales of washing machine will be driven by growth in fully automatic

category during 2011-12 to 2013-14. The market for televisions in India is changing

rapidly from the conventional CRT technology to Flat Panel Display Televisions

(FPTV). Currently, the split between CRT and FPTV is around 97% and 3%

respectively, and the share of FPTV is projected to increase at robust rate in near

future. Frost-free refrigerator sales, certainly growing at a much faster pace than the

direct-cool category, are anticipated to drive the Indian refrigerators market over the

forecast period

The AC market in India is projected to grow at 30% to 35% for the coming few years.

Driven by young population, demand for MP3 players and digital video appliances

are anticipated to surge at double-digit rate in near future

The low penetration level of consumer electronics goods coupled with increasing

preference for comfort and luxurious goods are widely attracting the foreign as well

as domestic players to the industry.

1.6.1. TRENDS IN TERMS OF TECHNOLOGY AND PRODUCTS – INDIA

Lower duties, cheaper technology and strong competition with low entry

barriers ensure competitive prices

Increase in brand and product choice

Value-for-money pricing lead consumers to upgrade – from corded to cord-

less phones, from conventional CRT to flat-screen or plasma/LCD TVs, from

15- to 17-inch computer monitors, from 1- to 3-megapixel cameras, from

monochrome to colour phones, etc

Huge boom in mobile phone purchases with high penetration even in rural

markets (launch of value for money, no frills, reliance phones gave an impetus

to rural penetration)

1.7. MARKETING STRATEGIES

Marketing strategy is the fundamental goal of increasing sales and achieving a

sustainable competitive advantage. Marketing strategies includes all basic, short-term,


https://en.wikipedia.org/wiki/Competitive_advantage


and long-term activities in the field of marketing that deal with the analysis of the

strategic initial situation of a company and the formulation, evaluation and selection

of market-oriented strategies and therefore contribute to the goals of the company and

its marketing objectives.

Marketing is heart of marketing plan. The concept of strategy usually comes from two

planes. We have grand strategy or corporate strategy leading with company mission &

company objectives.

Grand strategy is the integrating map that charts the development & use of resources

meet the challenges or goals as well as functional objectives.

The corporate strategy plan is the master company plans that provide guidance to all

managers of dealers about the direction in which the firm wants to go and the position

it wants to achieve. The strategic plan sets the boundaries for all other functional

planning. Functional objectives are developed from company objectives.

STP+4P’s = Marketing strategies:

Segmentation

Targeting

Positioning

Product

Price

Place

Promotion

Relevance of 4P’s:

Product: A product is the item offered for sale. A product can be a service or

an item. It can be physical or in virtual or cyber form. Every product is made

at a cost and each is sold at a price. The price that can be charged depends on

the market, the quality, the marketing and the segment that is targeted. Each

product has a useful life after which it needs replacement, and a life cycle after

which it has to be re-invented.



Main features of product concept are:

Product design, features, brand name, models, styles,

Appearance

Product quality

Warranty

Package: design, material, size, labeling etc.

Place: Place in the marketing mix refers to the channel, or the route, through

which goods move from the source to the final user. Place could be the

intermediaries, distributors, wholesalers and retailers.

Main features of place concept are:

Channels of distribution: Design, location of intermediaries, location of

outlets, Channel remuneration, Dealer- principal relations etc

Physical distribution: Transportations, Warehousing, Order processing,

Storage, etc

Price: Price is the value that is put to a product or service and is the result of a

complex set of calculations, research and understanding and risk taking ability.

A pricing strategy takes into account segments, ability to pay, market

conditions, competitor actions, trade margins and input costs, amongst others.

It is targeted at the defined customers and against competitors.

Pricing concept includes:

Pricing policies, margins, discounts, & rebates

Terms of delivery, payment terms, credit terms, purchase facilities,

resale price maintenance.

Promotion: Promotions refer to the entire set of activities, which

communicate the product, brand or service to the user. The idea is to make

people aware, attract and induce to buy the product, in preference over others.

Promotion concept involves the following:

Personal selling: Selling expertise, Size & quality of sales force, etc.

Advertising: Media mix, vehicles, Programmes.



Sales promotion: Gifts, price offs, Coupons, contests, prizes etc.

Publicity & public relation

1.8. MARKETING STRATEGIES IN DURING FESTIVAL SEASON:

In a country like India, where purchase decisions are mostly driven by emotions, the

holiday season comes with a big bonus of reminding your customers about the Indian

culture by associating it with your products. Festivities provide you a very good

opportunity to reconnect with your current and prospective clients or customers.

Companies can plan out effective marketing strategies during the festivals that will

help them in making a better connect with your customers or clients.

With the onset of the festival season starting from Onam and lasting till Diwali,

consumer durable companies have hit full throttle with their marketing initiatives.

Majority of the players have upped their marketing spends by nearly 30-40 per cent,

along with the introduction of new products, discounts and offers and promotion

campaigns.

During festivals like Deepawali, Holi and others, develops an innovative ad campaign

that highlights company product as a means to celebrate the festivals. India as a land

of festivals and events, marketers identified the tremendous opportunity of Occasion

Based Marketing long back itself. Most of the industries and sectors have their own

special occasion strategies to capitalize this vast marketing potential. Festivals are

happy occasions and customers are highly receptive to the promotions along with the

high rate of conversions to sale during special occasions. Almost all people

irrespective of cast and religion celebrate all the festivals with equal importance.

National as well as International brands have been trying to have a fair share of this

market.

Hence it is highly important for Consumer durable Industry to adopt latest marketing

strategies, for survival and growth. But the fact that industry spends billions of rupees

on promotions and many marketing campaigns do not reach prospective buyers when

they are most receptive to buying. This is why Occasion Based Marketing strategies

are a must-have for companies especially for companies which are looking into

maximizing their customer value, merging these two concepts into a powerful tool.



Consumer durable makers like Sony, LG, Panasonic and Whirlpool expect up to 35

per cent growth in the festive season and associate with dealers and retailers, to

encash this opportunity.

To attract buyers, durable makers are offering freebies like hard disk drive, DVD

players, carrying case and accessories. Discounts, cash back and extended warranty

schemes are also being employed to boost festive demand.

1.9. MAJOR PLAYERS OF CONSUMER DURABLESINDUSTRY IN INDIA

SAMSUNG

Samsung India commenced its operations in India in December 1995, today enjoys a

sales turnover of over US$ 1 billion in just a decade of operations in the country.

Samsung design centers are located in London, Los Angeles, San Francisco, Tokyo,

Shanghai and Rome. Samsung India has its headquarters in New Delhi and has a

network of 19 branch offices located all over the country. The Samsung

manufacturing complex housing manufacturing facilities for color televisions, color

monitors, refrigerators and washing machines is located at Noida, near Delhi.

Samsung ‘made in India’ products like color televisions, color monitors and

refrigerators are being exported to Middle East, CIS and SAARC countries from its

Noida manufacturing complex.

WHIRLPOOL

Whirlpool is an American manufacturer of consumer products founded in 1911 in

Michigan, U.S.A. Whirlpool started off its operations in India in 1987 and has grown

up to be one of the biggest consumer durables companies in India today. Whirlpool

manufactures, markets, sells and supplies a wide range of refrigerators, washing

machines, air conditioners, microwave ovens, water purifiers and the likes. Whirlpool

commands great popularity in almost all the segments that it is involved in. In May

2015, the market capitalization of Whirlpool was valued around Rs. 9,204.55 crore.

LG IN INDIA

LG Electronics was established on October 1, 1958 and in 1959, LG started

manufacturing radios, operating 77 subsidiaries around the world with over 72,000

employees worldwide; it is one of the major giants in the consumer durable domain

worldwide. The company has as many as 27 R & D centers and 5 design centers. Its

global leading products include residential air conditioners, DVD players, CDMA


http://economictimes.indiatimes.com/topic/Whirlpool

http://economictimes.indiatimes.com/topic/Panasonic


handsets, home theatre systems and optical storage systems.

TITAN

This Indian manufacturing major came into existence in 1987 and is headquartered in

Bangalore, Karnataka. Titan is a celebrated manufacturer and dealer of renowned

jewellery, watches, sunglasses and other luxury consumer accessories. Titan offers a

number of brands that are rated amongst the very best in their respective segments

such as Titan, Fastrack, Sonata, Xylys and Helios watches or jewellery brands like

Tanishq. Titan is a subsidiary of the Tata Group. The market capitalization of Titan

amounted to Rs. 32,963.50 crore in May 2015.

SYMPHONY

Symphony is an Indian consumer Durables Company founded in 1988. It is amongst

the world leaders as far as manufacturing air coolers is concerned. Symphony

operates in more than 60 countries around the world and boasts of making user-

friendly and eco-friendly products for residential as well as commercial customers.

The market capitalization of Symphony was worth Rs. 7,804.05 crore in May 2015.

RAJESH EXPORTS

Rajesh Exports is an Indian consumer durables manufacturer of gold and diamond

jewellery with its headquarters in Bangalore, Karnataka. According to the official

website of Rajesh Exports Limited, the company is the largest manufacturer of gold

products in the world. Rajesh Exports has its own chain of jewellery outlets named as

'Shubh Jewellers'. The market capitalization of Rajesh Exports amounted to Rs.

6,749.64 crore in May 2015.

PC JEWELLERS

PC Jewellers is a major jewellery manufacturer and a household name in India. It was

incorporated in April 2005 and has its most famous showroom in Karol Bagh, New

Delhi. It designs, makes, sells and exports gold and diamond jewellery in India and

overseas. The market capitalization of PC Jewellers reached Rs. 6,633.86 crore in

May 2015.

VIDEOCON INDUSTRIES



Videocon Industries was established in 1979 and is headquartered in Mumbai,

Maharashtra. It is a long celebrated company dealing in essential consumer

electronics and home appliances like TVs, washing machines, refrigerators, air

conditioners, CD-DVD players and so on. Videocon is also one of most common

household names in India providing a vast range of high quality consumer durables at

affordable prices. In May 2015, Videocon's market capitalization was valued at

around Rs. 4,906.51 crore.

TTK PRESTIGE

The consumer durables unit called TTK Prestige belongs to its business conglomerate

parent group known as the TTK Group founded in 1928. TTK Prestige is highly

reputed and famous for its consumer products especially for kitchenware. It primarily

manufactures cookers, gas stoves, frying pans, microwave ovens, 3-in-1 juicer-mixer-

grinders, induction cookers and toasters to name a few. The market capitalization of

TTK prestige amounted to Rs. 4,590.47 crore in May 2015.

BLUE STAR

Blue Star InfoTech was founded in 1983 and is one of the largest manufacturers of

consumer electronics in India. It has its corporate offices in Mumbai, Bangalore, New

Jersey, Santa Clara, London, Malaysia and Singapore. It is a subsidiary of the Blue

Star Group. The most notable products of Blue Star are air conditioners. Blue Star

ACs is amongst the top AC brands in India though it produces refrigerators as well.

The market capitalization of Blue Star InfoTech in May 2015 amounted to Rs.

3,168.45 crore.

BAJAJ ELECTRICALS

As the name itself suggests, Bajaj Electricals manufactures consumer electronic

equipment at macro level. Founded in 1926, the Bajaj Group is the parent company of

Bajaj Electricals based in Mumbai, Maharashtra. Bajaj Electricals makes consumer

appliances like kitchenware, ceiling fans, table fans, pedestal fans, exhaust fans, light

bulbs, lanterns, battery torches to name some. Rs. 2,563.90 crore was the market

capitalization of Bajaj Electricals in May 2015.

VIP INDUSTRIES



Asia' largest and the world's second largest manufacturer of travel utilities like

luggage bags and backpacks, VIP Industries started its journey in 1971 and has its

headquarters in Mumbai, Maharashtra. VIP is the undisputed king in the travel utility

market in India and Asia. It has been looking after the travel needs of people around

the world with a wide range of products such as heavy luggage bags, shoulder bags,

backpacks, duffel bags, trolleys, waist pouches and so on. In May 2015, the market

capitalization of VIP industries was valued to the tunes of Rs. 1,356.28 crore.

1.10. PROFILE OF THE ORGANISATION

1.10.1. OVERVIEW AND HISTORY

Shubham is one of the leading business houses with multiple businesses. The Group

operates the leading Multi-store retail chains of Karnataka –Shubham Electronic

Shopee along with SHUBHAM SAMRUDHI INFRA PVT LTD – leading

Apartment Developers, IVEE SOLAR - SOLAR POWER SYSTEMS and

SHUBHAM ELECTRONIC CARE - complete solution for your electronic home

appliances.

Since its inception in 1995, they have dedicated to making a difference in the lives of

our customers. In 2004, Shubham incorporated as Shubham Consumer Durables

Pvt Ltd and started to deal with all world class brands which deliver real results to

global businesses, ensuring a level of certainty. Shubham business is the result of Mr.

Sampath Kothari visionary leadership, who focused only on delivering the best

customer requirement & satisfaction.

Based out of Mysore & having head office in Bangalore, Shubham is having 13

showrooms in Karnataka. SHUBHAM is also committed to Corporate Social

Responsibility by providing supportive hands to schools, charitable trusts and many

more. Shubham was founded by Mr. Sampath Kothari, Shubham aims to provide

great value and great customer service.

In the year 1995, Mr.Sampath Kothari started a small retail showroom M/s

S.K.Times, at Channarayapatna, Hassan district, with a small capital of few lakhs. He

has been a very courageous, aggressive and futuristic person. After the initial success



and understanding the potential of retail business he shifted his business activities to

Hassan.

In the beginning he was a small dealer for BPL products. In 1998 he was offered BPL

distribution for Mysore, Hassan, Madikeri, Mandya and Chamaraja Nagar districts

and shifted his head office to Mysore. Within a span of 1 year he built a very strong

business network and S K Times became a force to be reckoned with in the business

in this region. By looking at his phenomenal success as a distributor he was given the

distribution rights from MNC’s like LG, Sansui, Kenstar, Godrej, BPL; Small

appliances Butterfly, Bajaj etc. He soon became an undisputed leader and built a

strong dealer network of around 150 dealers. Even today they are having business

links with these dealers doing whole selling.

All these years whatever success he has achieved in the business is somewhat

phenomenal. Within a span of 18 years he has taken his business to leaps and bounds.

That reflects the real image of the personality of Mr.Sampath Kothari. Young &

energetic MD of Shubham made use of every available opportunity for growth. His

success is the result of his principle “LONG TERM BUSINESS”.

Shubham consumer durables pvt ltd is an authorized dealer for various durables

companies in Rajajinagara 1st n block. It is having higher regards from its customers

and is having very good image in the minds of public. Most importantly it's after sales

service and the manner in which the sales are achieved at Shubham consumer

durables pvt ltd. Customer’s satisfaction is achieved with utmost care.

Shubham consumer durables pvt ltd is using different marketing strategies to promote

its sales in festival season and non-festival season and media of advertising and the

different channels of advertisement used by the organization are given as under.

Special Offers and discounts

Greeting cards and gifts

Keep communicating:

Sponsoring celebrations/events

Lucky Draw



Coupons

Exchange Offer

Product Warranties

Price Off

1.10.2. VISION, MISSION AND VALUES

MISSION:

“To redefine the word customer satisfaction through our committed services and to

become a 100 Cr company by 2016”.

VISIONS:

100% Customer satisfaction.

To give equal priority to sales and after sales service.

To be always creative & innovative.

To make use of every available opportunity for growth and increase our

income legitimately and ethically.

To inspire continuous learning across the organization from top to bottom.

To spend a portion of our earnings for the cause of nation building.

VALUES:

Our dream is to construct a value based society and One day value based country. We

are starting this journey from our own organization by following Values that are the

essence of humanity. Below are the core values we follow which not only bring

profitability but also help to achieve success and unlimited growth.

Love, trust and commitment

Customer relationship

Value for money.

Time management

1.10.3. SHUBHAM COMPANIES



SHUBHAM CONSUMER DURABLES PVT LTD

Shubham was incorporated in the year 2004 and became Shubham Consumer

Durables (P) ltd; based out of Mysore & having head office in Bangalore. With vision

of expansion, Shubham took the initiative to open more showrooms & this is the

reason currently we have 11 Retail Show Rooms across Karnataka.

Shubham the first company to have themed Franchise show room & planning to

render service via coming up with 25 showrooms in Bangalore and fallowed by 10

each in Mangalore and Hubli respectively.

SHUBHAM SAMRUDHI INFRA PVT LTD

Company has been focused on a Larger Goal – Happiness of People through

construction enterprises. Shubham took the initiative to deliver the luxurious

apartments Shubham Sapphire &Shubham Diwans at Mysore.

IVEE SOLAR - SOLAR POWER SYSTEMS

Solar energy is definitely the future trend of energy. Nowadays, many households

have converted their home to be powered by solar power system to take advantage of

free and renewable energy from the sun. Shubham with vast industrial experience &

knowledge took the initiative to provide world class techno based Solar Power

Generator to all prospects. This is the unit which can generate power by using freely

available SUN’s energy. It is in times like these that a solar inverter becomes a super

way to ensure your home and offices have their lights on even during a power shut

down.

SHUBHAM ELECTRONIC CARE

Shubham come up with the complete solution for electronic home appliances by

providing onset & offset five stars servicing with master technician. Shubham will

give high priority to all electronic products till it lasts.

Customers, all they need to do is “One call” to get door step servicing from Shubham

team.

1.11. KEY PRODUCTS



COLOUR TVs (CTVs):

CTVs are the largest contributors to this segment

Market size was estimated at 23.0 million units in 2012

Introduction of HDTVs is set to drive demand growth from affluent

consumers

LIQUID CRYSTAL DISPLAYS (LCDS):

LCD sales in India is expected to touch 9.9 million units in 2014

The price decline due to relatively low import duty on LCD panels,

higher penetration levels, and the introduction of small entry-size

models are key growth drivers in the segment.

DIGITAL VIDEO DISCS (DVDs):

The Indian DVD market accounted for 4.0 million units sold in 2013

The organized market has a share of 80 per cent in the total market.

DIRECT-TO-HOME (DTH):

The set-top box (STB) market is growing rapidly, due to the expansion

of DTH and introduction of the conditional access system (CAS) in

metros

The DTH market was worth USD4.2 billion in FY14; subscriber base

is expected to reach 200 million by 2018, thereby making India the one

of the world’s largest DTH market.

REFRIGERATORS:

This segment makes up 18.0 per cent of the consumer appliances

market.

The market share of direct cool and frost free segment is 76.3 per cent

and 23.7 per cent respectively.

Key growth drivers are lower prices and rising demand for frost-free

refrigerators.

AIR CONDITIONERS (ACs):



ACs are perceived as high-end products; current penetration stands at 3

per cent

The segment had a 14.0 per cent share (2013) in the consumer

appliances market

High income growth and rising demand for split ACs are the key

growth drivers

WASHING APPLIANCES:

Washing machines are the second largest contributor to the consumer

appliances market (after refrigerators); in 2013 total sales was 6.0

million units.

Fully automatic washing machines are garnering an increasing share of

the market due to reduction in prices and higher disposable incomes.

ELECTRIC FANS:

Production of fans in 2014 stood at 36.2 million units.

This is a highly penetrated market.

Electric fans are an essential utility for more than six months of the

year in most parts of the country.


Documents

PROJECT REPORT ON MARKETING STRATEGIES OF CONSUMER DURABLES