Air Conditioners Case Study

Improved Essays
1.1 SUBJECT AND INDUSTRY OVERVIEW-
In an endeavor to consider market abuse in the consumer goods industry, I would be considering the Air Conditioner (AC) segment in India. This market can be segregated into two major parts i.e. the fore market or the primary market that deals with the transaction of buying and selling of the good and the aftermarket or the secondary market that deals with the spare parts and services thereof that are required to keep the goods functioning.

The Air Conditioner market in India includes many players. These include both foreign and Indian brands such as LG, Voltas, Samsung, Daikin, Panasonic, Hitachi, Blue star, Godrej etc. The fore market in air conditioners appears to be competitive.

The primary market and
…show more content…
Inevitably, the first thing they saw was the massive volume of this potential market, rather than its cultural idiosyncrasies.

The Indian consumer durables segment can broadly be segregated into consumer electronics (TVs, VCD players and audio systems etc.) and consumer appliances (also known as white goods) like refrigerators, washing machines, air conditioners (A/Cs), microwave ovens and vacuum cleaners.

Most of the segments in this sector are characterized by intense competition, emergence of new companies (especially MNCs) and introduction of state-of-the-art models, price discounts and exchange schemes. MNCs continue to dominate the Indian consumer durable segment.

In consonance with the global trends, over the years, demand for consumer durables has increased with rising income levels, double-income families, changing lifestyles, availability of credit, increasing consumer awareness and introduction of new models. Products like air conditioners are no longer perceived as luxury
…show more content…
In the case of more expensive consumer goods, such as refrigerators, washing machines, color televisions and personal computers, retailers are joining hands with banks and finance companies to market their goods more aggressively. Among department stores, other factors that support rising sales include a strong emphasis on retail technology, loyalty schemes, private labels and the subletting of floor space in larger stores to smaller retailers selling a variety of products and services, such as music and

Related Documents

  • Improved Essays

    Case Study: Nordstrom

    • 841 Words
    • 4 Pages

    Retailers play a very important role in delivering products and services to the final consumers. Within this this role, retailers must possess the ability to target a segment of the market through different product offerings and product differentiation. By looking at Nordstrom’s marketing mix and specifically product, customer service, and store design, one can see how they utilize different strategies to create competitive advantages within the market. Nordstrom, as a high-end department store, chooses to carry a smaller product line with a wide assortment of high end merchandise.…

    • 841 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Days in inventory = Inventory / (Cost of goods sold÷365 days) = $89,562 / ($466,562÷365 days) = $89,562 / 1,278.25 = 70.07 ≈ 70 days Days sales outstanding = Accounts receivable / (Annual credit sales÷365 days) = $56,753 / (727,679÷365 days) = $56,753 / 1,993.64 = 28.47 ≈ 28 days Days in payables = Accounts payable /…

    • 1009 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In 1945 the United States was able to put the past behind them, and pick themselves back up after a five-year war, and a decade long economic depression. During World War 2 Americas economy produced many war products, but in the 1940s after the war was over the economic frame worked switched to produce goods for the consumers. Consumerism was significant in the late 1940s and 1950s because many people could enjoy goods that were made for them, as well as new products that they would be later introduced to, and wages were increasing steadily for workers. Because of the money America had saved during the war, America was able to take care of the veterans that had returned from the war. The GI Bill of Rights was passed in order to support the Veterans returning from war, the GI Bill of Rights allowed veterans to achieve a higher education, and have affordable housing.…

    • 734 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Today, organizations have many generic strategies they can use to develop and sustain their competitive advantage. The purpose of all these strategies is to differentiate one company from its competitors in an effort to become the most favored among consumers and ultimately the most profitable. Because of the economic downturn in 2010, most retailers aimed to be low-cost providers and adopted this as their generic strategy for competition. However, for some retailers, this was their approach from the beginning of their business venture.…

    • 713 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Essay On Trader Joe's

    • 459 Words
    • 2 Pages

    Bargaining Power of Buyers With many grocery chains across the world, the supermarket industry is very large and competitive industry. Trader Joe’s and other grocery stores can integrate backwards in this industry by creating their own brands. Trader Joe’s has their own unique labels and private brands. The discount prices and high quality products attract price-sensitive people who are bargain shoppers. With it’s collection of music, and wines it additionally attracts people 21 years and old, as well as well traveled and educated consumers.…

    • 459 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    We have often heard about not leaving children unattended inside a hot vehicle because it can lead to a heatstroke, but across the US, at least 46 police dogs within the last five years died as a result of being locking inside a hot car. In addition, another 18 dogs died of heatstroke after they were pushed too hard during the training exercises. They were tied outside and placed in direct sunlight after. Veteran handlers and animal advocates alike say that these deaths were preventable and resulted because of negligence. Wix, a bomb-sniffing police dog from Brown County, became the first dog in Wisconsin to die from heatstroke in recent memory.…

    • 527 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Yti Executive Summary

    • 444 Words
    • 2 Pages

    The current customers enjoy a premium product that performs phenomenally and will last a lifetime. Some of the current customers are loyal to the brand itself and because of its established reputation keeps them coming back. The potential customers are those people who are interested in the quality product but have not made the commitment to the higher price. We plan to target the people who are constantly on the move but not limited to the outdoorsmen. This could be mobile businessmen, busy mothers, active teens, and anyone else who may be juggling multiple tasks on a day to day basis.…

    • 444 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    The United States had faced with the Great depression and fought combat in two World Wars. Therefore, this led to major losses and deficits. Since United States was no longer in warfare, manufacturers who had contributed products to the army during World War, had altered their management of the manufacture. Nevertheless, organizations thought of novel innovations, focusing directly onto consumers to meet personal wants.…

    • 444 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Alphalete Athletics Marketing Plan Paulina Teresko 11/20/17 Alphalete Athletics Marketing Plan I. Situation Analysis: A. Historical Background An Alphalete is an individual who inspires others to lean more, dream more and be more. The company offers insight into the market at the national level. It all began by Christian Guzman wanting to establish a brand with meaning more than just a t-shirt. This apparel brand is described as “athleisure” and is independently regarded as affordable but of high quality.…

    • 822 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    In what ways are technological advancements in the online marketplace effecting the usage and importance of physical brick & mortar stores? The high street throughout history has been the key to many thriving and successful towns. It’s the small local stores which sell products and services which have been the back bone to many communities in providing occupations as well as places of cultural and social value (Great British High Street, 2013).…

    • 1592 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Economic Segment Economic activity of the world becomes one of the critical segments for Apple Inc. in regional, national, and even in the world. This becomes important for Apple Inc. to identify the rising of economic condition in other countries. It turns out that Asian countries, including China and India, become a potential market for companies, including Apple. Inc. There are three important economic segments that Apple Inc. identified, including: “inflation, recession, and currency.”…

    • 1250 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Smeg Case Study

    • 1247 Words
    • 5 Pages

    INTRODUCTION This report investigates the decision making process a consumer goes through when purchasing the Smeg Fab 32, a 50’s retro-style refrigerator. Smeg is a global player in the kitchen appliance industry and its design savy aesthetics exudes Scandinavian appeal. Smeg’s Fab range of refrigerators breaks away from the traditional mould of kitchen appliance design, allowing consumers with an appreciation for hedonic products to add chic appeal to their kitchens (Hoyer and Stokburger-Sauer, 2012, p. 167).…

    • 1247 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Johnson Control Essay

    • 387 Words
    • 2 Pages

    Johnson Controls: Strategy Research has shown Johnson Controls to be a very strategic company. Johnson Controls implements many different things to keep customers satisfied and the company working at a very productive level. This paper will take an in depth look at Johnson Controls and what makes up their strategy. Johnson Controls operates on a differentiation strategy, where they pursue unique services or products others can’t offer. What makes Johnson Controls different in the HVAC is there commitment to energy efficiency.…

    • 387 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Intensity of Rivalry (High) Intense competition between numerous competitors has initiated major action between rivals that have led to lower profit margins in the electronic industry. In the recent years, the electronic store sector had consolidated in fewer players, since major competitors such CompUSA and Circuit City have exit the competition for lack of differentiation and the different downturns in the economy. This industry has high exit barriers, leading to higher lose if exiting without a plan. Numerous large competitors such as E-Bay, Wal-Mart and Target compete in the electronic and appliances sales. Therefore, this has created a price war.…

    • 748 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Introduction Lulu Hypermarket is the retail division of multinational Lulu Group International that has been known as a trendsetter of the retail industry. Today, Lulu symbolizes quality retailing with 117 stores and is immensely popular with the discerning shoppers across the Gulf region. Location Lulu Hypermarkets did not just dominate cities of the UAE but have become the most preferred shopping destinations in Oman, Qatar, Kuwait, Bahrain, Yemen, Egypt, Saudi Arabia and India. Assortment variety: Lulu Hypermarket provides a wide range of products under its roof to insure that its customers are having a great shopping experience with all their expectations and requirements met in one single store. The hypermarket provide a range of electronics…

    • 975 Words
    • 4 Pages
    Improved Essays