chapter v distributors’ strategies -...
TRANSCRIPT
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CHAPTER V
DISTRIBUTORS’ STRATEGIES
Distributors/Dealers are channel trade partners who act as a medium to ensure
stock delivery/availability for the consumers across the geographies. The role of
these entities is absolutely critical as they help in ensuring that the product is widely
distributed and available for the end consumer. The key benefit of these entities is in
ensuring that the distribution costs are lower for the manufacturer and simultaneously
the products are available for the end consumer. The distributors and dealers operate
on a base trade margin (factored in the cost of the product by the manufacturer).
Along with the base margin the trade partners also get additional schemes/incentives
which keep on varying from time to time and product to product. The dealer could be
a retailer (selling to the end consumer directly), wholesaler (selling to other retailers
primarily) or a modern retailer (i.e. self service stores which are into both the
consumer retailing and wholesaling).
For product-focused companies, establishing the most appropriate
distribution strategies is a major key to success, defined as maximizing sales and
profits. Unless the companies are able to establish or maintain the most effective
distribution strategies, their business shall not meet their operational goal of profit
maximization.
Selecting a sales and distribution approach is the key element of a successful
business model. The sales approach more broadly the overall process of selling and
delivering products to customers at once encompasses both a company’s connection
to its customers and a significant portion of its total cost. In the marketing of kitchen
appliances also we can find the importance given to this aspect of selling. So, to
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materialize the ultimate goal of maximum profit through the creation of a satisfied
customer, the business cannot ignore the role of the distributor. The area he is
covering, the product he deals with, strategies taken by him for the promotion of the
products sales all are important for analysis in order to assess the contribution of the
distributor or dealer in the marketing of kitchen appliances. In this chapter an effort
is made to identify the nature of distribution strategies adopted by the dealers in
kitchen appliances in Kerala and also to evaluate how far the differences among them
in this respect contribute to the success of their business.
5.1 Area of Business
The geographical area in which the businesses are concentrated by the dealers
is an important factor to determine the type of strategy they followed for the
promotion of sales. If the prospective customers are located in a particular
geographical region, direct selling is more feasible than any other channel strategy.
But, if the market for goods is spread over the whole country, the company should
have sufficient number of dealers to sell the product to the widely disbursed
customers. Customers from different geographical regions of a country may be
different in their attitude and product choice. To meet their diverse needs companies
appoint dealers in the regions near to customers. These dealers render services as per
the demands of local customers and if they fail to do so, it will create dissatisfied
customers resulting in to thousands of profit. So, to know what strategies the dealers
in kitchen appliances are taken, fifty dealers were selected from urban, semi urban
and rural areas in the ratio of 2:2:1 as shown in Table T 5.1. More number of dealers
from urban and semi urban areas were selected based on the judgment that more
number of dealers in kitchen appliances is concentrated in non rural market.
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Table T 5.1
Area of Business
Area No. of Respondents Percent
Urban 20 40
Semi urban 20 40
Rural 10 20
Total 50 100 Source: Survey Data
Figure F5.1
Area of Business
5.2 Kitchen Appliances Dealt in by Distributors
Kitchen Appliance portfolio maintained by the distributors for purpose of
their business is an important factor determines their strategies. It will indirectly
reveal the profitability and marketability of products. A kitchen appliance which has
a good demand in the urban area may not find many buyers in the rural areas because
of the diversity in culture, custom, usages and purchasing power of consumers.
Moreover, the capital investment required and the distribution system needed may
40%
40%
20%
Urban Semi urban Rural
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also be different for different products, which also should be a determinant in choice
of a product by the dealer for transacting his business. Table T5.2 explains the
pattern of product portfolio maintained by dealers in kitchen appliances.
Table T 5.2 Kitchen Appliances Dealt in by Distributors
Mixer Grinder, Grinder, Refrigerator Gas Stove, Pressure Cooker
No. of Respondents Percent
All except Refrigerator 10 20
All except Grinder 10 20
All 30 60
Total 50 100 Source: Survey Data
Of the fifty dealers selected for the survey, thirty dealers transact business in
all the five kitchen appliances selected under study. Ten distributors dealing in all the
appliances except Grinder while the rest ten deal in every appliance except the
Refrigerator. So it can be inferred that majority of distributors have business in the
entire kitchen appliance which might be due to uniform rate of pay offs from their
business.
5.3 Portfolio of Kitchen Appliances – Area of Business Wise Analysis
Generally there is a conviction that rural people are economically and socially
backward, and that among them it is difficult for companies to find market for their
relatively high priced items. In kitchen appliance industry the price profile of
different products are not same because of which dealers in kitchen appliances are in
pursuit of the strategy of keeping different product portfolios by making the product
with the socio economic profile of the customers. Diversity among the dealers in the
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distribution of kitchen appliances in different markets can be understood from Table
T 5.3
Table T 5.3
Portfolio of Kitchen Appliances – Area of Business Wise Analysis
Type of Kitchen Appliances
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
All 10 50 15 75 5 50 30 60
All except Refrigerator - - 5 25 5 50 10 20
All except Grinder 10 50 - - - - 10 20
Total 20 100 20 100 10 100 50 100
Pearson Chi-Square 3.125 P Value - 0.210 Source: Survey Data
Figure F5.2 Portfolio of Kitchen Appliances – Area of Business wise Analysis
0
10
20
30
40
50
60
70
80
Urban Semi Urban Rural
All
All except Refrigerator
All except Grinder
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Analysis of the Table T5.3 reveals that there is difference in the distribution
of kitchen appliances by dealers among various markets. Relatively high priced
products such as, Refrigerator and Grinder were not sold by some dealers in various
markets. When 50 percent of the distributors from rural areas are not dealing in
Refrigerator, only 25 percent of the dealers in semi urban market are not transacting
their business in that product. This might be due to the fact that there is not much
market for Refrigerator in rural area, and whenever the customers from rural area is
in need of such products, they prefer to purchase it from nearest town, that is urban
or semi urban area. However, the Chi-square analysis found no significant difference
in portfolio of kitchen appliances among the dealers from various geographic market
segments of Kerala.
5.4 Brand Portfolio of Dealers in Kitchen Appliances
Decision as to the combination of different brands of a particular kitchen
appliance by a dealer is the direct outcome of two important causes. One is the push
promotion strategy of the manufacturer, that is, the measures taken by the
manufacturer to promote the product by offering additional schemes and incentives
to dealers. The other reason is the brand image of the product among the customers.
If a brand has wide appeal among the public, selling effort needed on the part of the
distributor is very low and they can generate more profit through better volume of
sales. Thus the strategy of the distributor in promoting the product is much related to
the brand which he is dealing in.
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Table T 5.4 Brand Portfolio of Dealers in Kitchen Appliances
Mixer Grinder Grinder Refrigerator Gas Stove Pressure Cooker
Brands
No. %
Brands
No. % Brands No %
Brands
No %
Brands
No. %
Sumeet, Maharaja, Preethy
10 20 Laxmi,
Butterfly, Maharaja
10 25 Godrej,LG, W hirlpool, Samsung
30 75 Butterfly, Pigeon 10 20
Prestige, Hawkins,
Pigeon 10 20
Sumeet Inalsa, Others
10 20 Laxmi,
Maharaja, Others
20 50 - - -
Butterfly, Inalsa, Bajaj, Others
10 20 Prestige, Hawkins, Butterfly
10 20
All 30 60 All 10 25 All 10 25 All 30 60 All 30 60
Total 50 100 Total 40 100 Total 40 100 Total 50 100 Total 50 100
Source: Survey Data
It is evident from Table T5.4 that the discrimination in the matter of selection
of the brand of different products among the dealers is relatively low. All the
distributors of the mixer grinder are dealing in the most popular brand of mixer
grinders – Sumeet. 80 percent of them deal also in all other established brand of
mixer grinders. In the case of Grinder, Laxmi and Maharaja are the brands in which
all the selected dealers are doing business. Only 50 percent of the dealers in the
Grinder are dealing in the Butterfly brand of Grinder.
Most of the famous brands of Refrigerators are sold by all the selected dealers
in Refrigerator. 30 percent of such dealers are not dealing in BPL brand. The most
popular brand in India - Butterfly is the major component of product portfolio of the
dealers in Gas Stove. Other reputed brands like Pigeon, Inalsa, and Bajaj are also
sold by majority of the dealers of that product.
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Prestige and Hawkins are the most common brand for the dealers of Pressure
Cooker. Other popular brands like Pigeon and Butterfly are also chosen by majority
of the dealers for transacting their business.
Thus the reputed brands of kitchen appliances were added by the dealers to
their product portfolio. This might be due to the requirement of lesser scale of efforts
on the part of the dealers of such brands in promoting them in the market as they
have already created a brand image in the mind of the customers of kitchen
appliances industry.
5.5 Brand Mix of Mixer Grinder – Area of Business Wise Analysis
Since various brands of Mixer Grinders are manufactured by the Kitchen
appliances manufacturers, decision as to the distribution of different brands of mixer
grinders by a dealer depends upon various reasons like brand image, consumer
demand, profitability, support system of the manufacturer, additional schemes and
incentives to dealers etc. Another reason is the brand image of the product among the
customers.
Table T 5.5 Brand Mix of Mixer Grinder – Area of Business Wise Analysis
Brands Area of Business
Total Urban Semi Urban Rural
No. % No. % No. % No. % All 10 50 15 75 5 50 30 60 Sumeet, Maharaja, Preethy
5 25 - - 5 50 10 20
Sumeet & Inalsa 5 25 5 25 - - 10 20
Total 20 100 20 100 10 100 50 100
Source: Survey Data
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0
10
20
30
40
50
60
70
80
Urban Semi Urban Rural
All
Sumeet,Maharaja,Preethy
Sumeet & Inalsa
Figure F 5.3
Brand Mix of Mixer Grinder – Area of Business wise Analysis
Table T 5.5 shows that irrespective of the location, distributors are there in
every segment of the market for all the branded mixer grinders. This is because when
a dealer deals in a mixer grinder which has a brand image in the market; it also
promotes his face value and credibilit in the market. Even the manufacturers of
established brands of mixer grinders, manufacturers are more strict in norms like
credit facility, payment due date, profit margins etc. But still, dealers prefer
established brands even though new brands and non branded mixer grinders offer
high profit margins and flexible terms and conditions.
5.6 Brand Mix of Grinder – Area of Business Wise Analysis
While comparing with other kitchen appliances, the volume of sales of
Grinder are much less because of the scope of its use is very narrow and because of
the relatively limited demand from some selected customers. Since dealers are the
interface between the manufacturers and consumers, their decision is important in
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making the product more popular among the customers from different markets and
for ensuring their timely supply. Table T 5.6 shows the brands of grinders available
in the different segments of the market.
Table T 5.6 Brand Mix of Grinder – Area of Business Wise Analysis
Brands
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
All 5 50 3 15 2 20 10 25
Laxmi,Butterfly& Maharaja only
5 50 3 15 2 20 10 25
Laxmi & Maharaja
- - 14 70 6 60 20 50
Total 10 100 20 100 10 100 40 100 Source: Survey Data
Figure F5.4 Brand Mix of Grinder – Area of Business wise Analysis
0
10
20
30
40
50
60
70
Urban
Semi Urban
Rural
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Most established brand of Grinder, that is Laxmi and Maharaja, were found
place in the product portfolio of all selected dealers in grinder across the different
market segments. 70 percent of semi urban and 60 percent of rural dealers deal in all
the established brands of grinders. Brands like Butterfly and Inalsa are not selected
by some dealers for transacting their business which might be due to lesser market
demand for these products or inefficiency of its manufacturers to design fruitful
strategies in widening the distribution network and customer base.
5.7 Brand Mix of Refrigerator – Area of Business Wise Analysis
The Refrigerator is the high priced and space occupying appliance among the
kitchen appliances under study. So it is important to take a decision by the dealer as
to what are the brands he has to keep with him which he can dispose immediately
without allowing it to be a dead stock.
Table T 5.7 Brand Mix of Refrigerator – Area of Business Wise Analysis
Godrej, LG, Whirlpool, Samsung & BPL
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
All 5 25 5 33 - - 10 25
Godrej, LG, Samsung, Whirlpool
15 75 10 67 5 100 30 75
Total 20 100 15 100 5 100 40 100
Source: Survey Data
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Figure F5.5 Brand Mix of Refrigerator – Area of Business Wise Analysis
It has come to be known from Table T 5.7 that all the selected distributor’s
deal in well established brands of refrigerators which have already created a very
strong brand image in the minds of the consumers. The area wise distribution of
dealers of Refrigerator on the basis of the brands they are dealing in was almost
same. It can also be identified from the Table that only 25 percent of distributors
dealt in the BPL brand of the Refrigerator. This is because the manufacturer of this
brand has decided to stop its production and the company is itself on the verge of
winding up.
5.8 Brand Mix of Gas Stove – Area of Business Wise Analysis
Gas Stove is a necessity in every modern kitchen. It is the only kitchen
appliance which is to be used regularly and continuously in a kitchen. Since gas is
used as the fuel for the stove, utmost care and safety is required in its manufacture,
distribution and usage. The dealers keep various brands of gas stove for distribution
according to the customer‘s preference. Their profit from this product segment
0
10
20
30
40
50
60
70
80
90
100
Urban Semi Urban Rural
All
Godrej,Lg,Samsung,Whirlpool
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largely depend upon its ability to identify the right brand the customer wants most
and his capacity to make its availability as and when his customer demands it.
Table T 5.8
Portfolio of Gas Stove – Area of Business Wise Analysis
Butterfly, Inalsa, Bajaj, & Pigeon
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
All 10 50 15 75 5 50 30 60
Butterfly, Pigeon 10 50 - - - - 10 20
Butterfly,Inalsa,Bajaj - - 5 25 5 50 10 20
Total 20 100 20 100 10 100 50 100 Source: Survey Data
Figure F 5.6 Portfolio of Gas Stove – Area of Business wise Analysis
The analysis in Table T 5.8 shows that when 75 percent dealers in semi urban
market keep all the established brands of gas stove in the market, 50 percent is the
proportion of dealers who belong to this group in all other two segments that is,
0102030405060708090100
Urban Semi Urban Rural
Butterfly,Inalsa,Bajaj
Butterfly, Pigeon
All
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urban and rural. 80 percent of the total dealers take the inventory of either Pigeon or
Inalsa or Bajaj along with the most versatile brand, Butterfly. So the dealers of gas
stove while deciding their strategy as to the promotion of a brand of product shall
mostly look into its publicity and image among the customers.
5.9 Brand Mix of Pressure Cooker – Area of Business Wise Analysis
The demand of Pressure Cooker can be perceived as the derivative from the
demand of gas stove. Consumers who use cooking gas in their kitchen shall find it
more expensive than any other energy even though it is convenient in cooking for
them. So, next he thinks about how to reduce his cost of cooking and normally he
reaches a conclusion as to use the pressure cooker for cooking with gas stove.
Different brands of pressure cookers have different price profile and performance
level. Like the dealers in gas stove, the dealers in pressure cooker also should be
interested to dealing in those brands which have better customer demand. The Table
T 5.9 unfolds the dealer preferences in brand which the selected dealers have taken
as the subject matter of his business
Table T 5.9 Brand Mix of Pressure Cooker – Area of Business Wise Analysis
Brands
Area of Business Total
Urban Semi Urban Rural No. % No. % No. % No. %
All 10 50 10 50 10 100 30 60
Prestige, Hawkins, Pigeon 10 50 - - - - 10 20
Prestige,Hawkins, Butterfly - - 10 50 - - 10 20
Total 20 100 20 100 10 100 50 100
Source: Survey Data
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Figure F 5.7 Brand Mix of Pressure Cooker – Area of Business Wise Analysis
Prestige and Hawkins are the most preferable brand in which all the selected
dealers are transacting their business. When 50 percent dealers in urban area are
doing in Pigeon brand along with the most popular brands like Prestige and Hawkins,
50 percent of semi urban dealers prefer Butterfly in lieu of Pigeon. All the rural
dealers keep the entire established brands of pressure cookers. So here also dealers
want to raise the maximum revenue by concentrating on the most demanding brands,
the marketing of which demands only a normal level of sales effort.
5.10 Brand Mix of Kitchen Appliances by Dealers from Different Market
Segments – Inferential Analysis
For testing the statistical significance of difference between the dealers from
different geographical segments of Kerala in terms of the brands of kitchen
appliances in which they are dealing, non parametric form of hypothesis test was
used. The test results summarized in Table T5.10 shows that such differences among
the dealers are significant (at 5 per cent level) in the brand portfolio of mixer grinder
0
10
20
30
40
50
60
70
80
90
100
All Prestige, Hawkins, PigeonPrestige, Hawkins, Butterfly
Urban
Semi Urban
Rural
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only. In all other cases the difference among the dealers in terms of this has got no
statistical significance. So from this, it can be inferred that, the geographic
differences in the kitchen appliances market of Kerala has significant impact only on
the brand mix of kitchen appliances by dealers in the mixer grinder segment only.
Table T 5.10 Brand Mix of Kitchen Appliances by Dealers from Different Market Segments –
Inferential Analysis
Kitchen Appliances Pearson Chi-Square Value P Value
Mixer Grinder 6.188 0.045*
Grinder 2.600 0.107
Refrigerator 1.707 0.191
Gas Stove 3.125 0.210
Pressure Cooker 0.1000 0.752
Source: Survey Data *Significant at 5 per cent level. 5.11 Dealers Monthly Sales Distribution of Kitchen Appliances
In the present competitive world, in order to sustain and grow in the market,
the manufacturers of kitchen appliances give thrust to more volume of sales through
control of their product cost and by transmitting the benefit of the same to their
customers in the form of price discounts and offers. In such situation the kitchen
appliance industry shall take over the form of volume industry where volume of sales
is the true indicator of the efficiency and profitability of the dealers as well as the
total firm. So, without gathering information on volume of sales made by the dealers
in kitchen appliances, we cannot measure its efficiency.
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Table T 5.11 Dealers Monthly Sales Distribution of Kitchen Appliances
No. of Appliances sold
Mixer Grinder
Grinder Refrigerator Gas Stove Pressure Cooker
Total
1-10 - 30(75) - - - 30(13) 10-20 10(20) - 10(25) 10(20) - 30(13) 20-30 - 10(25) 20(50) - 30(60) 60(26)
Above 30 40(80) - 10(25) 40(80) 20(40) 110(48)
Total 50(100) 40(100) 40(100) 50(100) 50(100) 230(100) Source: Survey Data Figures given in parentheses indicates percent
Table T 5.11 unfolds the fact relating to the profile of monthly sales of
selected kitchen appliances by the dealers observed under study. Of the 50 dealers in
mixer grinder, 80 percent sell at least 30 mixer grinders per month and the remaining
20 percent dealers were making the sale of 10 to 20 mixer grinder per month. In the
case of dealers in grinder, majority of them were able to make a monthly sale of less
than 10 units only. Maximum number of sales of this category per month constitutes
less than 30 units by a dealer and 25 percent of dealers in that product category are
able to do so. Even though mixer grinder and grinder have some common utility, in
the case of the grinder, because of its restricted utility, the demand is much less than
that of more versatile product, the mixer grinder.
Even though the price of the refrigerator is relatively higher than that of other
kitchen appliances, its monthly volume of sales is much better than that of many
other kitchen appliances. About 75 percent of its dealers procure a monthly sale of
more than 20 units. About one third of such dealers are able to sell at least one
refrigerator per day. The remaining 25 percent of its dealers sell 10 to 20 units per
month. Relatively higher demand for refrigerator could be related to the change in
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lifestyle of the people because of their busy and mechanical life schedule. Sales
performance of dealers in relatively lower priced kitchen appliances such as Gas
Stove and Pressure Cooker are better than that of the dealers of Grinder and almost
equal to that of dealers in Mixer Grinder.
80 percent dealers in Gas Stove and 40 percent dealers in Pressure Cooker are
able to sell more than 30 units of their products per month. When the remaining 20
percent of Gas Stove dealers make a sale of 10 to 20 units of Gas Stove per month,
the monthly sale of rest of the pressure cooker dealers are 20 to 30 units. From these
results we can make two inferences. First is that the dealers might find their
business more profitable with refrigerators due to the increasing demand for it and
its higher profit contribution on account of its higher price. The second inference is
to the determinant of sales of kitchen appliances. Its sales are mainly influenced by
utility and need that its customer perceived from it. Again, utility of kitchen
appliance is closely related to the change in life style and standard of living of the
people.
5.12 Monthly Sales of Dealers in Kitchen Appliances - Area Wise Analysis
Placing products consist of many distribution components bringing goods and
services from the point of production to the point of use. Customers of kitchen
appliances who are scattered all over the market pose a difficult problem of how to
take the products to the end consumers. As a solution to this problem, manufacturers
appoint middlemen who are willing to bridge the gap between the supply and
demand of products. The concurrence of a dealer to act as a link of the manufacturer
with the consumer for the sale of a product obviously depend upon the market for
such products in the area in which he is willing to operate. There might be
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differences in demand for various kitchen appliances across the market segments
which should be analyzed arrive at a conclusion on the reason for purchasing a
particular strategy by the dealers.
5.13 Monthly Sales Performance of Dealers in Mixer Grinder - Area Wise
Analysis
The monthly sales in units of mixer grinder by the selected dealers were
analyzed with the help of Table T5.12
Table T 5.12 Monthly Sales Performance of Dealers in Mixer Grinder - Area Wise Analysis
No. of Mixer Grinders Sold
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
1-10 - - - - - - - - 10-20 - - 5 25 5 50 10 25 20-30 - - - - - - - - Above 30 20 100 15 75 5 50 40 75
Total 20 100 20 100 10 100 50 100
Source: Survey Data
It can be known from the Table that the dealers in urban and semi urban
market sell more number of mixer grinders in their area of operation. All the selected
dealers from urban market are able to sell more than 30 units of mixer grinder per
month. 75 percent of dealers in semi urban market also procured sales of mixer
grinder in that scale. Sales of mixer grinder by dealers of rural market have
comparatively lesser than those of other two segments. Only 50 percent of rural
dealers are able to the make sale of a mixer grinder per day on an average basis. Such
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discrepancy in the distribution of sales across the region might be due to the
difference in attitude and lifestyle of people residing there.
5.14 Monthly Sales Performance of Dealers in Grinder - Area Wise Analysis
The grinder, a kitchen appliance highly specific in use should have different
scale of sales in different markets depending on the diversity in the demographic
profile of the people there. The details of which are given in Table T 5.13
Table T 5.13 Monthly Sales Performance of Dealers in Grinder- Area Wise Analysis
No. of Grinders Sold
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
1-10 10 100 10 50 10 100 30 75
10-20 - - - - - - - -
20-30 - - 10 50 - - 10 25 Above 30 - - - - - - - -
Total 10 100 20 100 10 100 40 100
Source: Survey Data
Irrespective of the geographical location in which the dealer confined their
operations, sales frequency of the grinder is very low. All the dealers in urban and
rural market and 50 percent of dealers in semi urban market are able to sell less than
10 units of the grinder in a month on an average. Remaining 50 percent of dealers in
semi urban market make a better sale of 20 to 30 units of the grinder per month.
5.15 Monthly Sales Performance of Dealers in Refrigerator- Area Wise Analysis
The refrigerator which once was a luxury appliance, later become a product
of necessity especially in the fast life of the modern world. Earlier it was found only
in the kitchens of rich and now it has become a common product in the kitchen of
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everyone. Due to this transition from luxury to necessity, the manufacturers of
refrigerators appoint dealers in all market segments. Sales distribution of
Refrigerators by its dealers are given in Table T5.14
Table T 5.14 Monthly Sales Performance of Dealers in Refrigerator- Area Wise Analysis
No. of Refrigerators Sold
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
1-10 - - - - - - - - 10-20 5 25 5 33 10 25
20-30 5 25 10 67 5 100 20 50
Above 30 10 50 - - - - 10 25
Total 20 100 15 100 5 100 40 100
Source: Survey Data
All the dealers of refrigerators from different market segments make better
sales of the refrigerator than other kitchen appliances like the grinder. 50 percent of
dealers in urban market are able to sell the refrigerator at a scale of at least one per
day. Cent per cent of rural dealers, two third of semi urban dealers and 25 percent of
urban dealers in the refrigerator make 20 to 30 units of their products per month.
Sales performance of all other dealers constitutes 10 to 20 units every month. Such a
distribution in sales of dealers reveals that every dealer of their category has
customers for their product in every market.
5.16 Monthly Sales Performance of Dealers in Gas Stove - Area Wise Analysis
Gas Stove, the demand of which is indirectly influenced by the Government
machinery of the country, get good demand from all market segments in a uniform
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pattern. The policy which is pursued by the Government for the last few years in
order to provide cooking gas to each and every household of the country irrespective
of their income level is making good demand for Gas Stove which forces its
manufacturers to appoint dealers in every part of the country. The sales performance
of these dealers are detailed in Table T5.15
Table T 5.15 Monthly Sales Performance of Dealers in Gas Stove- Area Wise Analysis
No. of Gas
Stove Sold
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
1-10 - - - - - - - -
10-20 - - 5 33 5 50 10 20
20-30 - - - - - - - -
Above 30 20 100 15 67 5 50 40 80
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Each and every dealer in urban market was able to sell more than 30 units of
Gas Stove every month. The sales profile of dealers in semi urban and rural market is
also found to be not better than that of the dealers in some other kitchen appliances.
Two third of the dealers in semi urban and 50 percent of the dealers in rural market
are in a position to make a monthly sale of more than 30 units of Gas Stove. All the
other dealers from these two market segments are in a good sales position of 10 to 20
units per month. So the popularity and usage of cooking gas to the remote area of the
country helps the dealers in Gas Stove to improve their performance.
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5.17 Monthly Sales Performance of Dealers in Pressure Cooker - Area Wise
Analysis
The popularity and demand of Gas Stove even in the remote area indirectly
helped the stimulation of demand for Pressure Cooker. This is because when people
started to use cooking gas in lieu of conventional energy and kerosene, they began to
think about the reduction of time and cost of cooking, which motivated them to use
Pressure cooker in their kitchens. Then the manufacturers of Pressure Cooker started
to capitalize this opportunity by appointing the dealers in all segments of the market.
The monthly sales performance of these dealers are reported in Table T5.16
Table T 5.16 Monthly Sales Performance of Dealers in Pressure Cooker- Area Wise Analysis
No. of Pressure Cookers Sold
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
1-10 - - - - - - - - 10-20 - - - - - - - - 20-30 10 50 10 50 10 100 30 60 Above 30 10 50 10 50 - - 20 40
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Sales performance of dealers in Pressure Cooker was almost the same in both
urban and semi urban market. 50 percent of dealers in both markets make a sale of
more than 30 units of Pressure Cooker in a month and the sale of the remaining 50
percent constitute 20 to 30 units a month. In the rural market the sales frequency of
all the dealers of this appliance were between 20 and 30 units. The saving cost of
energy and the possibility of instant cooking demanded by modern lifestyle of the
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people helped the dealers even in rural market to make better sales for this appliance
nicknamed as kitchen mate of maids.
5.18 Association between Location of Business and Monthly Sales of Kitchen
Appliances
Non- parametric test- Pearson’s chi-square test at one percent significance
level was applied to explore whether the monthly sales of the dealers in kitchen
appliances were associated with the location of the market where they operate their
business. The test revealed that only in the case of dealers in Mixer grinder and Gas
stove respondents’ location of business has statistically significant influence on their
sales. In all other Kitchen appliances the location is not a factor determining the sales
of its dealers. The results are shown in Table.5.17
Table T 5.17 Association between Location of Business and Monthly Sales
of Kitchen Appliances
Kitchen Appliances Pearson Chi-Square Value P Value
Mixer Grinder 11.476 0.001*
Grinder 0.1000 0.752
Refrigerator 3.333 0.189
Gas Stove 11.476 0.001*
Pressure Cooker 0.1000 0.752
Source: Survey Data *Significant at 1 percent level
5.19 Market Leaders in Kitchen Appliances
Dealers act as spoke person or agents of consumers. They communicate the
needs and demands of their customers to the manufacturers. They help the
manufacturers in producing the products which are decided by the customers. Earlier
191
they used to deal in a single brand of product or the products of a single
manufacturer. But now they show the trend of collecting various brands of
appliances from various sources and supply them according to the needs of the
consumers. Since a dealer is dealing in large number of brands, he can correctly tell
which is the market leader in a particular class of product and what makes that brand
the market leader. In the following paragraphs an analysis is made from the
perspective of the dealer with regard to market share and leadership of different
brands in various types of kitchen appliances.
5.20 Market Leader in Mixer Grinder
At present, the market for Mixer Grinder closely follows an oligopoly market
situation. Four prominent brands of Mixer Grinders – Sumeet, Maharaja, Inalsa and
Preethy were identified in pilot study and the analysis was mainly made based on
these brands. Leading brands in different markets according to the opinion of dealers
in Mixer Grinder were given in Table T 5.18
Table T 5.18 Location Wise Distribution of Market Leader in Mixer Grinder
Type of Kitchen Appliances
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Sumeet 9 45 8 40 3 30 20 40 Maharaja 8 40 7 35 5 50 20 40 Inalsa 2 10 3 15 - - 5 10 Preethy 1 5 2 10 - - 3 6 Others - - - - 2 20 2 4
Total 20 100 20 100 10 100 50 100
Pearson Chi-Square Value 0.303 P Value - 0.985
Source: Survey Data
192
Figure F5.8 Location wise Distribution of Market Leader in Mixer Grinder
Sumeet and Maharaja are the market leaders in Mixer Grinder according to
the opinion of its dealers. 40 percent each of the dealers surveyed opined that these
two brands are the most popular ones among the customers. Inalsa constituted 10
percent followed by Preethy with 6 percent and others with 4 percent. So, the main
competition in Mixer Grinder market is between Maharaja and Sumeet. These two
brands lead the other firms in price changes, new product introductions, distribution
coverage and promotional intensity.
Location wise distribution of leading brands of Mixer Grinder is given in
Table T5.18. A close analysis of this Table also reveals that Sumeet and Maharaja
are the most prominent brands of Mixer Grinder for the customers in all the market
segments. As per the opinion of more than 75 percent of respondents in each and
every market segments, product demand is raised by customers for these two brands.
It can also be seen that dealers in leading brands of mixer grinder have almost
equal number of distribution centers in urban and semi urban area. Being the more
0
5
10
15
20
25
30
35
40
45
50
Sumeet Maharaja Inalsa Preethy Others
Urban
Semi Urban
Rural
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civilized group, customers in developed region prefer to buy only branded product,
which could be the reason for dealers of such brand more concentrated in urban and
semi urban market. Rural people comparatively their socio economic profile far
behind the urban group, give more thrust to price rather than quality and brand image
which might motivate them divert to less popular brand. Hence the dealers of such
brands started their own retail outlets in those regions. However, inferential statistical
test, failed to give any statistical validity to this argument as it has to reject the
hypothesis that there is significant difference between the markets in market
leadership of brands in mixer grinder segment of Kerala’s kitchen appliances market.
5.21 Market Leader in Grinder
The most popular and leading brand of Grinder in various market segments of
Kerala as revealed by the analysis of response of dealers in that particular product
were given in Table T5.19
Table T 5.19 Location Wise Distribution of Market Leader in Grinder
Brand of Grinder
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Laxmi 5 50 10 50 5 50 20 50
Maharaja 1 10 3 15 - - 4 10
Inalsa 1 10 2 10 - - 3 7.5
Butterfly 3 30 5 25 5 50 13 32.5
Total 10 100 20 100 10 100 40 100
Pearson Chi-Square Value 0.853 P Value - 0.653
Source: Survey Data
194
Figure F 5.9 Location wise Distribution of Market Leader in Grinder
Analysis of opinions of the dealers in Grinder indicates that Laxmi is the
leading brand among the popular brands of Grinders in Kerala. 50 percent of dealers
in all the three market segments have the belief that Laxmi was the leading brand in
their domain. Butterfly was the leading brand according to the remaining 50 percent
dealers in rural market, 30 percent dealers in urban and 25 percent dealers in semi
urban segments of Kerala. Very few dealers stand in favor of Maharaja and Inalsa as
market leader in urban and semi urban segments.
Even though according to the opinion of dealers in Grinder, divergence in
terms of market leadership existing among different brands in various geographic
segments of Kerala, inferential statistics found no significance in such difference in
market leadership of brands in its Grinder segment.
5.22 Market Leader in Refrigerator
Refrigerators which were considered a luxury product once are perceived
now as a utility product in the kitchens of every house hold. Earlier only two or three
0
5
10
15
20
25
30
35
40
45
50
Laxmi Maharaja Inalsa Butterfly
Urban
Semi Urban
Rural
195
0
5
10
15
20
25
30
35
40
Godrej LG Whirlpool Samsung BPL
Urban
Semi Urban
Rural
brands were in this product segment, some of which is still remain and some others
have already been washed out. Many new numbers of brands have also emerged in
this white good product market. Distribution of dealers on the basis of their opinion
with regard to the leading brand of Refrigerator in different market strata of Kerala is
explained in Table T5.20
Table T 5.20 Location Wise Distribution of Market Leader in Refrigerator
Brand of Refrigerator
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Godrej 7 35 6 40 2 40 15 37.5
LG 4 20 3 20 1 20 8 20
Whirlpool 3 15 3 20 - - 6 15 Samsung 4 20 3 20 2 40 9 22.5
BPL 2 10 - - - - 2 5
Total 20 100 15 100 5 100 40 100
Pearson Chi-Square Value 0.0484 P Value - 0.976 Source: Survey Data
Figure F5.10 Location wise Distribution of popular Market Leader in Refrigerator
196
Godrej, the versatile the brand of refrigerator which occupied the premier
position in terms of market share of refrigerator in the past, still continue to keep that
position by successfully withstanding the competition from the new comers
according to the opinion of dealers surveyed. Out of the 40 dealers in refrigerator
selected for the study, 15 dealers have such opinion. The most popular brand among
the new comers, LG and Samsung were the leading ones according to the opinion of
8 and 9 dealers respectively. BPL, one of the favorable brands for a consumer in
Kerala once, has almost lost its market demand now. It can also be found that the
dealers in refrigerator are showing much consensus with regard to the query on
market leader regardless of the market in which they are operating their business and
the Chi square test also substantiates the validity of this finding.
5.23 Market Leader in Gas stove
Who is the market leader in Gas stove segment? – When such query was
made to the dealers in gas stove market, the responses given by them were explained
in Table T 5.21
Table T 5.21 Location Wise Distribution of Market Leader in Gas Stove
Brand of Gas Stove
Area of Business Total
Urban Semi Urban Rural No. % No. % No. % No. %
Butterfly 12 60 13 65 5 50 30 60 Inalsa 3 15 2 10 - - 5 10
Bajaj 2 10 2 10 1 10 5 10
Pigeon 3 15 3 15 4 40 10 20 Total 20 100 20 100 10 100 50 100
Pearson Chi-Square Value 1.427 P Value - 0.490 Source: Survey Data
197
0
10
20
30
40
50
60
70
Butterfly Inalsa Bajaj Pigeon
Urban
Semi Urban
Rural
Figure F 5.11 Location wise Distribution of Market Leader in Gas Stove
It has come to know from the responses of dealers that, Butterfly was the
most prominent brand among the consumers of gas stove in Kerala. About 60 percent
of dealers surveyed in study have registered such response. More than 60 percent
dealers in urban and semi urban segment and 50 percent of dealers in rural segment
of the gas stove mentioned that butterfly surpassed all other brands of gas stove in
market share as well as popularity. 50 percent of dealers from rural segment strongly
argue that Pigeon is the most popular brand there. In terms of the dealer’s perception
on other brands, the analysis has not found much dissimilarity across markets. This
finding is again justified by the inferential statistical tests as it rejects the hypothesis
of significant difference in terms market leadership that exists among the selected
brands of Gas stove in different parts of Kerala.
5.24 Market Leader in Pressure cooker
Distribution of selected brand of Pressure Cooker in terms of market
leadership from the perception of dealers are discussed in Table T 5.22
198
0
5
10
15
20
25
30
35
40
45
Prestige Hawkins Butterfly Pigeon
Urban
Semi Urban
Rural
Table T 5.22 Location Wise Distribution of Market Leader in Pressure Cooker
Brand of Pressure Cooker
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Prestige 9 45 8 40 3 30 20 40
Hawkins 5 25 4 20 2 20 11 22 Butterfly 4 20 4 20 1 10 9 18
Pigeon 2 10 4 20 4 40 10 20
Total 20 100 20 100 10 100 50 100
Pearson Chi-Square Value 0.357 P Value - 0.837 Source: Survey Data
Figure F 5.12 Location Wise Distribution of Market Leader in Pressure Cooker
Among the four leading brands of Pressure Cooker marketing in Kerala,
Prestige occupies the prominent position in terms of market share and popularity as
per the opinion of dealers in this segment. About 40 percent of the selected dealers
who are transacting business in this product commented so. Their perception about
the marketability of the remaining brands in Kerala was almost the same. But
marketwise analysis of dealer response observed some difference across urban, semi
199
urban and rural segment. When Prestige is the most versatile brand of Pressure
cooker in urban and semi urban segment, Pigeon occupies that position in rural
market conditions of Kerala. But the Chi square test administered in this part of study
failed to provide any statistical validity which is sufficient to generalize this finding
in the context of entire market segment of Kerala.
5.25 Incentives/Allowances to Dealers by Manufacturers
Nowadays more sales promotion effort is directed to retailers and wholesalers
than to customers. Trade promotion can persuade dealers to carry a brand, give it
shell space, promote it to advertising and push it to consumers. Manufacturers often
have to offer price off, allowances, buy back guarantee or free goods to dealers to get
a place for their products on the shelf and once there, to stay on it.
In the following paragraph analysis is made for understanding the difference
if any existing among the manufacturers of various brands of kitchen appliances in
their effort to motivate their dealers to sell more, and if there are differences, study is
made to know which brand is taking the more effort for encouraging the dealers to
produce more output in each product category.
Table T 5.23 Brands Offering Incentives to Dealers in Kitchen Appliances
Mixer Grinder Grinder Refrigerator Gas Stove Pressure Cooker
Brands No. % Brands No. % Brands No % Brands No % Brands No. %
Sumeet 30 60 Laxmi 20 50 Godrej 10 25 Butterfly 25 50 Prestige 25 50 Maharaja 10 20 Maharaja 10 25 LG 11 27.5 Inalsa 5 10 Hawkins 10 20 Inalsa 5 10 Inalsa 5 12.5 Whirlpool 8 20 Bajaj 5 10 Butterfly 5 10 Preethy 5 10 Butterfly 5 12.5 Samsung 9 22.5 Pigeon 15 30 Pigeon 10 20 - - - - - - BPL 2 5 - - - - - - Total 50 100 Total 40 100 Total 40 100 Total 50 100 Total 50 100
Source: Survey Data
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Analysis of Table T 5.23 reveals that Sumeet is the leading brand among the
mixer grinders in providing incentives to their dealers for encouraging them to
maximize their sales. Of the 50 dealers in mixer grinder 60 percent opined that they
receive special offers in the form of incentives from the manufacturers of Sumeet in
promoting that product. Other brands like Maharaja, Inalsa and Preethy also offer
incentives to dealers based on their performance, but the numbers of dealers who get
such incentives are small.
In the case of the Grinder, the most popular Brand Laxmi also motivate the
dealers for promotion of their product. 50 percent of the dealers of Grinder selected
for the study replied that they receive attractive offers from the manufacturers of
Laxmi in popularizing and retaining the product in the mind of the customers of that
segment. After Laxmi, Maharaja occupies second position in motivating the dealers
and in the case of the other two brands, Inalsa and Butterfly; their sales promotion
tools were relatively weak in terms of dealer motivation.
Almost all brands except BPL in refrigerator segment pursuade the dealers to
carry the brand and to take greater efforts for large sales. More than 20 percent of the
dealers in all the four most popular brands in the refrigerator industry give incentives
to their dealers for recognizing their best sales performance. B P L, which considered
being a thrown out brand from the refrigerator industry, does not take any effort in
reviving their demand through dealer motivation.
Butterfly, the most versatile brand among the group of Gas stoves, uses a
strategy to push the dealers to provide a space for the product in their shelf and to put
effort for its marketing. 50 percent of the dealers in Gas Stoves commented that they
get special offers or incentives from butterfly to become keen in marketing that
201
product. Pigeon, the brand which is in the second position in terms of customer sales
also keep the same position in terms of pursuing its dealers to take effort for creating
demand for it.
Prestige, the kitchen mate of housewives, keep the prime position in pushing
its dealers to take more effort for its promotion. 50 percent of the dealers in Pressure
Cooker report that Prestige brand has been designing special trade promotion
schemes to stimulate the dealers to promote the brand. Other popular brands of
pressure cooker, Hawkins and Pigeon also are prudent in their trade promotion
action. But Butterfly, which is keener in trade promotion of its Gas Stove, is least
conscious in the importance
From these facts it can be interpreted that the establishment of a brand in the
market could be the outcome of its dealer motivation.
Nowadays number of brands has considerably increased in the kitchen
appliances industry and competitors use promotions frequently. Many brands are
seen are similar and consumers are more price oriented and the trade has demanded
more deal from the manufacturers. At this juncture a high proportion of the
promotion pie is devoted to trade promotion tools and manufacturers award more
money to trade to carry more units than the normal, and induce the dealers to
promote the brand and push the product. When we observe the trend in giving more
importance to dealer motivation by the most established brand of the kitchen
appliances, we can say that their market penetration and customer demand are not
simply due to their product features, but due to the effort taken by the dealers to
place the product in the hands of the right consumer by convincing them its relative
advantage and qualities over the other products.
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5.26 Location Wise Difference in Giving Incentives by Brands to Dealers
The area where the dealer is transacting his business shall definitely be a
factor deciding the degree of effort to be taken by him for marketing the product
which he deals in. The extent of trade promotional measures to be adopted by the
manufacturers is directly linked with the marketing effort initiated by the dealers. So,
in order to understand whether there is any difference in incentives or allowance
which are offered by the manufacturers of kitchen appliances to the dealers from
different geographical area, the following part of analysis was made.
Table T 5.24 Location Wise Difference in Brands of Mixer Grinder Giving Incentives
Brands giving incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Sumeet 10 50 10 50 10 100 30 60 Maharaja 5 25 5 25 - - 10 20 Inalsa 5 25 - - - - 5 10 Preethy - - 5 25 - - 5 10
Total 20 100 20 100 10 100 50 100 Source: Survey Data
It is understood from the analysis of Table T 5.24 that Sumeet brand occupies
the prime position in inducing its dealers to sell more of its products through
attractive trade promotion schemes. 30 dealers in sumeet brand of mixer grinder get
offers from its manufacturers and they are equally distributed in all the three
geographical areas. When Maharaja induce the dealers from both urban and semi
urban areas, the other brands, Inalsa and Preethy offer incentives to dealers only from
urban and semi urban markets respectively. Such a difference in dealers in the
persuasion of trade promotion strategies among the manufacturers of mixer grinders
203
in Kerala can be attributed to the market where they mainly concentrate on their
business.
5.27 Location Wise Difference in Giving Incentives by Brands of Grinder to Dealers
Table T 5.25 gives location wise difference among the selected brand of
grinders in giving incentives to dealers as a part of their trade promotion strategy.
Table T 5.25
Location Wise Difference in Brands of Grinder Giving Incentives
Brands giving incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Laxmi 7 70 8 40 5 50 20 50
Maharaja 3 30 5 25 2 20 10 25
Butterfly - - 4 20 1 10 5 12.5
Inalsa - - 3 15 2 20 5 12.5
Total 10 100 20 100 10 100 40 100
Source: Survey Data
The most selling brands of grinders in Kerala market, that is, Laxmi and
Maharaja design their own trade promotion strategies regardless of the market
segment where they operate. They push the resellers of their products through
attractive incentive/allowance schemes for maintaining/expanding their market share.
But other two brands, Inalsa and Butterfly extend dealer support only in those market
segments where they are mainly focused.
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5.28 Location Wise Difference in Giving Incentives by Brands of Refrigerator
to Dealers
Whether there is any difference among the brands of refrigerator in designing
and offering incentives to dealers from different market segments, will be answered
by Table T 5.26
Table T 5.26 Location Wise Difference in Brands of Refrigerator Giving Incentives
Brands giving incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Godrej 4 20 4 26.67 2 40 10 25
LG 5 25 4 26.67 2 40 11 27.5
Whirlpool 4 20 4 26.66 - - 8 20
Samsung 5 25 3 20 1 20 9 22.5
BPL 2 10 - - - - 2 5
Total 20 100 15 100 5 100 40 100
Source: Survey Data
Trade promotional tools in the form of incentives or allowances to dealers in
established brands of refrigerator are almost uniformly distributed. Severe
competition in the refrigerator industry makes it a volume drives market. Its leading
players are forced to go for price reduction and they are in urgent need of more
volume of sales from different market segments for sustaining in the industry. So
these manufacturers offer incentives to dealers for improving their selling efficiency.
BPL, the sick brand in refrigerator segment is the only exception to this among the
group.
205
5.29 Location Wise Difference in Giving Incentives by Brands of Gas Stoves to
Dealers
Gas Stove, the common kitchen device found in the kitchen of both poor and
rich face severe competition among the leading brands there. Hence, all of these
brands appoint the dealers and initiatives are taken for dealer motivation in various
parts of their market.
Table T 5.27 Location Wise Difference in Brands of Gas Stoves Giving Incentives
Brands giving incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Butterfly 10 50 10 50 5 50 25 50
Inalsa 3 15 2 10 - - 5 10
Bajaj 2 10 2 10 1 10 5 10
Pigeon 5 25 6 30 4 40 15 30
Total 20 100 20 100 10 100 50 100
Source: Survey Data
It is clear from Table T 5.27 that almost all selected brands of gas stove
(except Inalsa) offer special incentive schemes to its dealers for stimulating them to
bring out maximum performance from them. When Butterfly extends dealer
incentive scheme uniformly in all the three market segments, Inalsa and Bajaj give
priority to semi urban and urban segment in this regard. Pigeon, the brand which
occupies second position in terms of both market penetration and dealer motivation
give more thrust to semi urban market. However this brand does not neglect the
importance of motivation to dealers in its urban and rural segment.
206
5.30 Location Wise Difference in Giving Incentives by Brands of Pressure
Cooker to Dealers
Pressure cooker, the device which is comparatively cheap among the kitchen
appliances but found to be very useful in the fast life of a modern man, demands
more dealer support in the present competitive market. Whether there is any
discrimination made by the popular brands of this product segment in designing
schemes for the promotion of their trade will be explained by the Table T 5.28
Table T 5.28 Location Wise Difference in Brands of Pressure Cooker Giving Incentives
Brands giving incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Prestige 10 50 10 50 5 50 25 50
Hawkins 4 20 3 15 3 30 10 20
Butterfly 3 15 2 10 - - 5 10
Pigeon 3 15 5 25 2 20 10 20
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Location wise analysis of brands of pressure cooker giving incentives to
dealer’s shows that all the selected brands in this product segment offers incentives
or allowances to their dealers based on their performance in order to encourage them
to canvass new orders from different market segments. Almost all of these brands
have dealers in different part of their market regardless of the degree of urbanization
and the manufacturers design suitable trade promotion strategies to induce the
dealers to carry, promote and push the product in the market which they are
specialized in.
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5.31 Association between Location of Business and Dealer Motivation through Incentives by Manufacturers
For drawing statistical inference on the association between the
geographic profile of various market segments and dealer motivation through
incentive schemes by manufactures, the null hypothesis of “there is significant
difference among the dealers of different Kitchen appliances in various market
segments of Kerala in receiving the incentives from their manufactures were
verified at 5 per cent level by using non parametric form of Chi square test”.
The test results reported in Table T5.29 found no statistical significance of
such geographic market differences among the brands in all the five selected
product segments of Kitchen appliances.
Table T5.29 Association between Location of Business and Dealer Motivation
Through Incentives by Manufacturers
Kitchen Appliances Pearson Chi-Square Value P Value
Mixer Grinder 4.500 0.105 Grinder 0.621 0.733
Refrigerator 0.0466 0.977
Gas Stove 0.726 0.696 Pressure Cooker 0.199 0.906 Source: Survey Data
5.32 Marketing Strategies by Dealers in Kitchen Appliances
Every dealer in a particular product segment must outline its marketing
strategy or game plan for attaining its objectives. Marketing strategy is the marketing
logic by which the business unit hopes to achieve its marketing objectives. From the
dealer’s point of view, marketing strategy means the plan or way by which he can
208
deliver the goods to its customers more effectively and efficiently than his
competitors can. The functions of a dealer include: gathering information on various
aspects of marketing, promotion of the product, maintaining contact and relationship
with customers, matching the product with buyers needs, making negotiation with
customers etc. The dealers should perform these functions most efficiently and
effectively to provide satisfactory assortment of goods to the target customers. For
this they have to evolve out suitable strategies.
In kitchen appliances market, for rendering different functions that are
expected to be performed by a dealer, various strategies are used which include their
own advertisement through flex and hoardings, incentives to customers in the form
of interest free loan and free gift or merely depending on manufacturers marketing
strategy. Table T.5.30 gives a brief description on the type of strategies pursued by
dealers in kitchen appliances for successful performance of their functions in the
Kerala market.
Table T 5.30 Marketing Strategies by Dealers in Kitchen Appliances
Marketing Strategies
Mixer Grinder
Grinder Refrigerator Gas Stove Pressure
Cooker Total
Own Advertisement - 5(12.5) - 30(60) 15(30) 50(22)
Depend on Manufacturers Marketing Strategy
40(80) 17(42.5) 25(62.5) 10(20) 25(50) 117(51)
Incentives like Price Reduction Free Gifts, Interest free loans etc
10(20) 18(45) 15(37.5) 10(20) 10(20) 63(27)
Total 50(100) 40(100) 40(100) 50(100) 50(100) 230(100)
Source: Survey Data Figures given in parentheses indicates percent
209
It is clear from the Table T 5.30 that there are differences in the strategies
used by dealers in different Kitchen appliances for increasing their volume of sales.
When majority of the dealers in mixer grinder (80 percent), in refrigerator (62.5
percent) and pressure cooker (50 percent) depend on the manufacturer’s strategy for
placing the product in the hands of ultimate consumers, 60 percent of the dealers in
gas stove use their own advertisement as the main strategy for the promotion of the
product in their deal. But in the case of dealers in grinder, they take a lot of effort to
push the customers to buy the product from them through attractive consumer offers
such as free gift, payment by installment; cash reduction etc. 45 percent of such
dealers pursue this strategy.
5.33 Marketing Strategies by Dealers in Kitchen Appliances – Location Wise
Analysis
A dealer’s location is a key factor in determining his ability to attract new
customers and also holding the existing ones. And the cost of building and leasing
facilities has a major impact on the dealer’s profit. So a rational dealer must be
conscious of its cost and benefit relationship and should follow a strategy which
optimizes this cost function. The type of the product the dealer is dealing in shall be
a crucial factor determining the type of strategy the dealer has to choose.
5.34 Marketing Strategies by Dealers in Mixer Grinder – Location Wise
Analysis
Table T 5.31 gives a summary of strategic differences among the dealers in
the mixer grinder from different market segments in the promotion of their sales.
210
Table T 5.31 Location Wise Distribution of Marketing Strategy of Dealers of Mixer Grinder
Marketing Strategy
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Own Advertisement - - - - - - - -
Depend on Co.’s
Marketing Strategy 15 75 15 75 10 100 40 80
Incentives like Free
Gifts, interest free
loans etc.
5 25 5 25 - - 10 20
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Analysis of Table T 5.31 reveals that 80 percent of the dealers in mixer
grinder mainly depend on the manufacturer’s marketing strategy to attract and hold
customers. Remaining 20 percent are try to exert a pull on the customers through
attractive offers such as free gifts, interest free loans etc. Location wise analysis
found no divergence in this regard among the dealers operating in various
geographical segments of the market in Kerala.
5.35 Marketing Strategies by Dealers in Grinder – Location Wise Analysis
Table T 5.32 gives a summary of the strategic differences among the dealers
in grinder from different market segments in the promotion of their sales.
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Table T 5.32 Location Wise Distribution of Marketing Strategy of Dealers of Grinder
Marketing Strategy
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. % Own Advertisement - - 3 15 2 20 5 12.5
Depend on Co.’s Marketing Strategy 8 80 5 25 5 50 18 45
Incentives like interest free loans, free gifts etc.
2 20 12 60 3 30 17 42.5
Total 10 100 20 100 10 100 40 100 Source: Survey Data
There was market wise difference among the dealers in grinder with regard to
the type of marketing strategy they pursued. Majority of the dealers from urban area
(80 percent) and one half of the dealers from rural segment mainly depend on the
manufacturer’s strategies for promotion of their sales. 60 percent of such dealers
from semi urban area give offers in the form of free gift and interest free loan to
those who make purchase from them. 30 percent of the dealers from the rural
segment also believe that a “normal customer will be attracted by offers.”
5.36 Marketing Strategies by Dealers in Refrigerator – Location Wise Analysis
Refrigerator being the highest priced product among the kitchen appliances
under study, manufacturers definitely expend more money for its promotional
activities. Moreover a product where its dealers are competing with each other to
increase their sales, they are also designing and pursuing their own marketing
strategies Table T 5.33 gives a description on differences among the dealers in the
refrigerator from various market segments of Kerala with regard to their marketing
strategies.
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Table T 5.33 Location Wise Distribution of Marketing Strategy
of Dealers for Refrigerator
Marketing Strategy
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Own Advertisement - - - - - - - -
Depend on Co’s Marketing Strategy
13 65 9 60 3 60 25 62.5
Incentives like interest free loan, free gift etc.
7 35 6 40 2 40 15 37.5
Total 20 100 15 100 5 100 40 100
Source: Survey Data
It is very clear from the analysis that there is no considerable difference
among the dealers in refrigerator from various market segments in terms of the
strategies pursued by them. More than 60 percent of the dealers from all segments
mainly depend on manufacturer’s marketing strategy for the promotion of the
product. Remaining dealers follow a strategy to induce customers through attractive
consumer offers. None of the dealers from any segments give their own
advertisement for the promotion of their sales.
5.37 Marketing Strategies by Dealers in Gas Stove – Location Wise Analysis
Table T5.34 gives a summary of strategic differences among the dealers in
gas stove from different market segments in promotion of their sales
213
Table T 5.34 Location Wise Distribution of Marketing Strategy of Dealers of Gas Stove
Marketing Strategy
Area of Business
Urban Semi Urban Rural Total
No. % No. % No. % No. %
Own Advertisement - - 20 100 10 100 30 60
Depend on Co.’s Marketing Strategy 10 50 - - - - 10 20
Incentives like interest free loans, free gifts etc.
10 50 - - - - 10 20
Total 20 100 20 100 10 100 50 100
Source: Survey Data
From the analysis it can see that the strategy followed by the urban dealers is
entirely different from semi urban and rural dealers. Cent percent of the dealers from
semi urban and rural segment completely depend on their own advertisement to
induce the customers to buy the product from them. On the other hand 50 percent of
the urban dealers simply depend on manufacturers marketing strategy for the
achieving better value of sales and another 50 percent give consumer offers. The
difference in the socio economic profile of people from different geographic
segments might be the main factor considered by the dealers in choosing their
marketing strategies.
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5.38 Marketing Strategies by Dealer in Pressure Cooker –Location Wise
Analysis
Table T 5.35 gives a vivid picture of how the dealers in pressure cooker
diverge themselves in their sales promotion strategies.
Table T 5.35 Location Wise Distribution of Marketing Strategy of Dealers of Pressure
Cooker
Marketing Strategy
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Own Advertisement 5 25 5 25 5 50 15 30
Depend on Co.’s Marketing Strategy 10 50 12 60 3 30 25 50
Incentives like interest free loans, free gifts etc.
5 25 3 15 2 20 10 20
Total 20 100 20 100 10 100 50 100
Source: Survey Data
In terms of marketing strategy pursued by the dealers in pressure cooker,
uniformity can be seen between urban and semi urban dealers. Most of the dealers
from these two segments (50 percent and 60 percent respectively) depend on
manufacturer’s strategy for the promotion of the product. Other dealers from the
same segments take their own initiative by their own advertisement or through
consumer offers for promotion of the product. But in the case of rural segments own
advertisement is the main strategy pursued by the dealers there (50 percent) followed
by 30 percent depend on manufacturer’s strategy and the remaining 20 percent gives
consumer offers for improving their sales.
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5.39 Association between Location of Business and Marketing Strategies
Pursued by Dealers in Kitchen Appliances
Inferential statistical analysis was performed for verifying the association
between location of the business of the dealers in kitchen appliances and the
marketing strategies pursued by them. From the analysis it is known that, the
geographic profile of the market where the dealers in Kitchen appliances transact
their business in Kerala was not a significant factor influencing their marketing
strategies. Regardless of the market where they operate their business, the dealers
design more or less same strategy for marketing their products among the consumers
of Kitchen appliances in the state. The results of the analysis are reported in Table
T5.36.
Table T 5.36 Association between Location of Business and Marketing Strategies Pursued by
Dealers in Kitchen Appliances
Kitchen Appliances Pearson Chi-Square Value P Value
Mixer Grinder 0.133 0.715
Grinder 1.926 0.165
Refrigerator 0.00255 0.165
Gas Stove 0.781 0.377
Pressure Cooker 1.220 0.543
Source: Survey Data
5.40 Sales Promotional Incentives Offered by Dealers of Kitchen Appliances
Incentives are offered by the dealers as the part of their consumer sales
promotion program which is conducted either to attract new customers or to retaliate
against competitors sales activities. Such promotional incentives are to be offered by
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the dealers because of the factors such as increase in number of brands, consumers’
price oriented attitude, the decline of the advertising efficiency because of rising
cost, media clutter and the increased number of dealer competition. Usually the
incentives offered by dealers to their customers include cash reduction, interest free
loan, free gifts exchange offer etc. Table T 5.37 gives the details of type of incentives
offered by dealers in various kitchen appliances to its customers in Kerala.
Table T 5.37 Sales Promotional Incentives Offered by Dealers of Kitchen Appliances
Type of
Incentives
Mixer
Grinder
Grinder Refrigerator Gas
Stove
Pressure
Cooker
Total
Cash
Reduction 25(50) 25(62.5) 20(50) 30(60) 25(50) 125(54)
Interest Free
Loan 10(20) 5(12.5) 15(37.5) 5(10) 10(20) 45(20)
Free Gifts - 2(5) - 5(10) 5(10) 12(5)
Exchange
Offer 15(30) 8(20) 5(12.5) 10(20) 10(20) 48(21)
Total 50(100) 40(100) 40(100) 50(100) 50(100) 230(100)
Source: Survey Data Figures given in parentheses indicates percent
Cash reduction is the most common form of incentive offered by the dealers
in all the five kitchen appliances for attracting new customers. 50 percent each of the
dealers in mixer grinder, refrigerator and pressure cooker opined that they give cash
reduction to the customers for their fresh purchase. More than 60 percent of the
dealers in grinder and gas stove also commented so. Interest free loan and exchange
offer were also equally popular incentives offered by some of the dealers in kitchen
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appliances for increasing their sales. Free gifts are practiced by a very few number of
dealers in relatively low priced kitchen appliances like grinder, gas stove and
pressure cooker.
5.41 Sales Promotional Incentives Offered by Dealers in Kitchen Appliances –
Location Wise analysis
The kind of offer or incentive that a customer expects for his purchase – is a
very crucial decision before a dealer. Normally the customer expectation is a
function of his socio economic profile, which might be different for different
customers hailing from different geographical areas. So a dealer might consider the
location factors also before finalizing a decision on his consumer sales promotion
program. The following section shall unfold the difference in sales promotion
incentives offered by dealers in kitchen appliances from different market segments
for pushing up their sales in the area.
5.42 Sales Promotional Incentives Offered by Dealers of Mixer Grinder –
Location Wise Analysis
Table T 5.38 gives a record of strategic differences among the dealers in
mixer grinder from different market segments in deciding the sales promotional
incentives to their customers.
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Table T 5.38 Location Wise Distribution of Type of Incentives Offered by
Dealers of Mixer Grinder
Type of
Incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Cash Reduction 10 50 10 50 5 50 25 50
Interest free
Loans - - 5 25 5 50 10 20
Free Gifts - - - - - - - -
Exchange Offer 10 50 5 25 - - 15 30
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Cash reduction is the most common form of incentive offered by the dealers
for increasing their sale of mixer grinder in the entire market area. 50 percent each of
the dealers in mixer grinder from the three market segments offer this incentive to
new customers for their purchase. Remaining 50 percent of dealers in rural segment,
by considering the relatively low income profile of the rural people, offer their
customers to make payment of the price of the mixer grinder in installments. But in
semi urban areas, 25 percent of the dealers offer installment payment system and
remaining 25 percent give “exchange of old goods with new”. On realizing the
lifestyle of the urban people, 50 percent of the dealers from urban area use this
promotional technique by offering the new pressure cooker in exchange for the old
ones.
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5.43 Sales Promotional Incentives Offered by Dealers of Grinder – Location
Wise Analysis
Table T 5.39 unfolds the dissimilarities among the dealers in grinder from
different market segments of Kerala in designing their sales promotional incentive
schemes.
Table T 5.39 Location Wise Distribution of Type of Incentives Offered by Dealers of Grinder
Type of
Incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Cash Reduction 6 60 14 70 5 50 25 62.5
Interest free
Loans 2 20 3 15 - - 5 12.5
Free Gifts - - - - 2 20 2 5
Exchange Offer 2 20 3 15 3 30 8 20
Total 10 100 20 100 10 100 40 100
Source: Survey Data
In the case of Grinder also cash reduction is the prominent strategy adopted
by its dealers across different market segments in pursuing their customers to buy the
new product. In addition to this, exchange offers are also made by the dealers to
influence the existing users of grinder for replacing their old ones. Interest free loan
or payment of price in installments is also applied by some selected dealers from
urban and semi urban market to attract the customers who are running at their
budget. Very few dealers in rural market also announce free gifts to the new buyers
of grinder.
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5.44 Sales Promotional Incentives Offered by Dealers of Refrigerator – Location
Wise Analysis
Table T 5.40 gives a summary of strategic differences among the dealers in
refrigerator from different market segments in offering sales promotional incentives
to promote their sales
Table T 5.40 Location Wise Distribution of Type of Incentives Offered by
Dealers of Refrigerator
Type of Incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Cash Reduction 10 50 7 47 3 60 20 50
Interest free Loans 8 40 5 33 2 40 15 30
Free Gifts - - - - - - - -
Exchange Offer 2 10 3 20 - - 5 20
Total 20 100 15 100 5 100 40 100
Source: Survey Data
Cash reduction and interest free loans are the major strategies pursued by the
dealers of the refrigerator for influencing the customer behavior irrespective of the
market where they operate. Cent percent of the dealers from rural market, 90 percent
dealers from urban market and 80 percent dealers from semi urban market have been
applying these strategies for improving their sales. Though, exchange offer also is
made by a small fraction of dealers from urban and semi urban market, it cannot be
considered as a normal one in the case of the refrigerator as the percentage of
exchange price offered by the dealer in terms of the price for the new product is only
marginal. None of the dealers in refrigerator is making any free gift offer to the
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customers for influencing their buyer behavior and choosing him as the dealer for
their purchase.
5.45 Sales Promotional Incentives Offered by Dealers of Gas Stove – Location
Wise Analysis
Table T 5.41 summarizes the differences among the dealers in gas stove from
different market segments of Kerala in terms of their sales promotional strategies.
Table T 5.41 Location Wise Distribution of Type of Incentives Offered by
Dealers of Gas Stove
Type of Incentives
Area of Business Total
Urban Semi Urban Rural No. % No. % No. % No. %
Cash Reduction 7 35 15 75 8 80 30 60
Interest free Loans 3 15 2 10 - - 5 10
Free Gifts 3 15 - - 2 20 5 10
Exchange Offer 7 35 3 15 - - 10 20
Total 20 100 20 100 10 100 50 100 Source: Survey Data
Cash reduction and exchange offer are the popular marketing strategies
among the dealers in gas stove from urban market. 35 percent each of the dealers
from that segment offer these incentives for influencing the buyer behavior in their
domain. Out of the remaining 30 percent, 15 percent each offer free gifts and
installment payment for motivating the urban customer to make a purchase decision.
But in the case of semi urban and rural segment, cash reduction is still the most
popular strategy among the dealers by giving limited importance to other ones. One
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important point to be noted here is that, in the relatively lower income profile
segment, that is rural segment, none of the dealers offer any credit facility to attract
the customers. This could be attributed to the fact that, in rural segment, low priced
kitchen appliances market segment is still under the control of unorganized sector
which by means of its direct access influences the rural customer by making
available to them the products under installment payment system.
5.46 Sales Promotional Incentives Offered by Dealers of Pressure Cooker –
Location Wise Analysis
Distribution of dealers in pressure cooker from different market segments on
the basis of the type of incentives offered to the customers for the promotion of their
sales is given in Table T 5.42
Table T 5.42 Location Wise Distribution of Type of Incentives Offered by
Dealers of Pressure Cooker
Type of Incentives
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Cash Reduction 10 50 10 50 5 50 25 50
Interest free Loans 5 25 5 25 - - 10 20
Free Gifts - - 3 15 2 20 5 10
Exchange Offer 5 25 2 10 3 30 10 20
Total 20 100 20 100 10 100 50 100 Source: Survey Data
The pattern of sales promotion strategies adopted by the dealers in gas stove
was more or less repeated in the case of pressure cooker also. This could be
attributed to two reasons. One is that both are relatively lower priced items in the
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kitchen appliance industry and the second is their utility in kitchen is closely related.
However, unlike the dealers in gas stove, the urban dealers in pressure cooker do not
offer any free gift, but the semi urban ones give such offers to the customers for
choosing them as their supplier.
5.47 Market Wise Differences among the Dealers in Kitchen Appliances in
Offering Incentives to the Consumers – Chi square Analysis
For testing the significance of difference in the type of incentives offered by
the dealers from various geographic market segments of Kerala for imbibing the
customers of Kitchen appliances there, the study has administered ‘Chi square’ test.
As per the results of the test explained in Table T5.43 it is known that market wise
disparity in designing incentive schemes for boosting up the sales of dealers exists
only in the case of relatively more selective items in terms of utility, (the Grinders
only - at 5 per cent level of significance). In all other cases of Kitchen appliances, the
market wise differences of dealers in this regard are not significant at any level.
Table T 5.43 Market Wise Differences among the Dealers in Kitchen Appliances in Offering
Incentives to the Consumers – Chi square Analysis
Kitchen Appliances Pearson Chi-Square
Value P Value
Mixer Grinder 1.125 0.570
Grinder 8.600 0.014*
Refrigerator 0.157 0.924
Gas Stove 1.653 0.438
Pressure Cooker 0.889 0.641
Source: Survey Data *Significant at 5 percent level.
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5.48 Popular Brands in Kitchen Appliances – Dealers Opinion
In the survey administered among the selected dealers in kitchen appliances,
a question directing the opinion of dealers about the most popular brand in various
product segments was enquired. The purpose of this question was to compare the
name of the market leader in a particular segment as traced out by the consumer
survey with that revealed by the dealer survey of the study. Otherwise the study will
neither be more meaningful nor produce any reliable result. Table T 5.44 unfolds the
details of dealer opinion as to the market leaders in different product segments.
Table T 5.44 Popular Brands in Kitchen Appliances
Mixer Grinder Grinder Refrigerator Gas Stove Pressure Cooker
No. % No. % No % No % No. %
Sumeet 23 46 Laxmi 20 50 Godrej 18 45 Butterfly 35 70 Prestige 25 50 Maharaja 16 32 Maharaja 8 20 LG 8 20 Inalsa 3 6 Hawkins 10 20 Inalsa 4 8 Inalsa 4 10 Whirlpool 6 15 Bajaj 4 8 Butterfly 10 20 Preethy 7 14 Butterfly 8 20 Samsung 6 15 Pigeon 8 16 Pigeon 5 10 - - - - - - BPL 2 5 - - - - - - Total 50 100 Total 40 100 Total 40 100 Total 50 100 Total 50 100 Source: Survey Data
According to the opinion of the dealers, Sumeet was the most popular brand
in the mixer grinder segment of Kerala market. 46 percent of the dealers stood in
favor of sumeet as the leading brand followed by 32 percent for Maharaja, 14 percent
for Preethy and 8 percent for Inalsa.
In the case of grinder, Laxmi comes out as the dominating brand in the Kerala
market. 50 percent of the dealers in that product market are in favor of this opinion.
Out of the remaining 50 percent, 20 percent each believed Maharaja and Butterfly
225
are the leading brands and only 10 percent commented that relatively non popular
brand, Inalsa as the leading one.
According to the opinion of dealers in refrigerator, the traditional brand
Godrej still keep its first position in the refrigerator industry. 45 percent of dealers
support this statement. LG is in the second position in dealer survey with 20 percent
and Whirlpool and Samsung, the close rival of LG from its homeland, are in the third
position with 15 percent each. The thrown out brand, BPL has gained only 5 percent
of the dealer response.
Butterfly emerges as the leading brand in gas stove industry of Kerala. 70
percent of the dealers in butterfly hold this view. Other three selected brands have
only marginal share in the gas stove market.
Prestige occupies the prime position in terms of market leadership in the
pressure cooker segment in Kerala. One half of the dealer’s response was in favor of
this statement. Other three selected brands – Hawkins, Butterfly and Pigeon have
almost equal market share in the industry according to the dealer response observed
in this regard.
5.49 Dealers Opinion as to Most Popular Brands in Kitchen Appliances
Industry of Kerala – Location Wise Analysis
Dealers or distributors personally know about the popularity of the Firm’s
product, the share of a brand in the market, its acceptability by the consumers and so
on. Dealers who operate in different geographic segments such as urban, semi urban
and rural have differences of opinion as to the market leadership or popularity of
brands in the segments they operate. This is mainly because each market segment
reflects physical location and its attending conditions such as varied income profile,
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knowledge base and other relevant demographic variables related to the consumer.
Dealers might have more exposure to the dynamic state of market conditions and
also to the change in the habits and living conditions of the consumer community.
5.50 Dealer’s Opinion as to Popular Brand of Mixer Grinder – Location Wise
Analysis
Unity/Diversity in the popularity of different brands of mixer grinders among
the consumers from various segments of Kerala from the perception of its dealer are
explained in Table T 5.45
Table T 5.45 Location Wise Distribution of Popular Brand of Mixer Grinder
Mixer Grinder
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Sumeet 10 50 8 40 5 50 23 46 Maharaja 5 25 7 35 4 40 16 32
Inalsa 3 15 4 20 - - 7 14
Preethy 2 10 1 5 1 10 4 8
Total 20 100 20 100 10 100 50 100 Source: Survey Data
According to the opinion of dealers in mixer grinder surveyed for the study,
sumeet brand of mixer grinder occupy the prime position in terms of its popularity
and market leadership among the consumers of Kerala regardless of the market
segment where it is sold. When 50 percent each of the dealers in urban and rural
segment commented that popularity of Sumeet brand as high, 40 percent of semi
urban dealers hold the same view. 25 percent dealers from urban, 35 percent from
semi urban and 40 percent dealers from rural segment viewed Maharaja as the most
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popular brand in their segments. Dealers’ opinion about the popularity of other two
brands – Inalsa and Preethy are found to be relatively scanty.
5.51 Dealers’ Opinion as to the Popular Brands of Grinder in the Market of
Kerala – Location Wise Analysis
Geographic segment wise differences if any, in the view of dealers of grinder
as to the popular brands in their product segment are listed in Table T 5.46
Table T 5.46 Location Wise Distribution of Popular Brand of Grinder
Grinder
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Laxmi 10 50 13 65 7 70 30 60 Maharaja 5 25 4 20 - - 9 18
Inalsa 2 10 - - - - 2 4 Butterfly 3 15 3 15 3 30 9 18
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Location wise differences in the opinion of dealers in grinder as to the market
leader do not exist as per the facts revealed by the analysis of Table T 5.51, many of
the dealers from different market segments are in favour of Laxmi as the market
leader in the grinder market of Kerala. One half of the dealers from the urban
segment, two third of the dealers from semi urban segment and 70 percent of the
dealers from rural area viewed Laxmi as the most popular brand. When relatively
large fraction of the remaining dealers from urban and semi urban segment have the
opinion that Maharaja is the most popular brand, Butterfly is the leading brand for
the rest of the dealers from rural segment.
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5.52 Dealer’s Opinion as to the Popular Brands of Refrigerator in the Market of
Kerala – Location Wise Analysis
Table T 5.47 throws up the view points of dealers in refrigerator with regard
to the market leadership and brand popularity in the product segments which transact
their business.
Table T 5.47 Location Wise Distribution of Popular Brand of Refrigerator
Refrigerator
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Godrej 9 45 8 40 4 40 21 42
LG 5 25 3 15 2 20 10 20
Whirlpool 2 10 6 30 1 9 18
Samsung 3 15 2 10 1 10 6 12
BPL 1 5 1 5 2 20 4 8
Total 20 100 20 100 10 100 50 100
Source: Survey Data
There was more favorable disposition by the dealers in refrigerator towards
the well known brand, ‘Godrej’ as the market leader in all the three geographic
segments under study. More degree of convergence in this regard was shown
between urban and rural dealers where 45 percent each from these segments favored
Godrej and 20 to 25 percent supported the multinational giant, ‘LG’ as the market
Leader. When 40 percent of the semi urban dealers stand in favor of LG, relatively
larger fractions from the rest (30 percent) are of the view of Whirlpool, as the market
Leader. Other brands Samsung and BPL are relatively unpopular in all the three
segments.
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5.53 Dealer’s Opinion as to the Popular Brands in Gas Stove Market of Kerala –
Location Wise Analysis
Table T 5.48 produces some glimpses on the popularity of brands among the
consumers of Gas Stove in the market of Kerala from the view points of its dealers.
Table T 5.48 Location Wise Distribution of Popular Brand of Gas Stove
Gas Stove
Area of Business Total
Urban Semi Urban Rural
No. % No. % No. % No. %
Butterfly 14 70 15 75 6 60 35 70
Inalsa 1 5 1 5 1 10 3 6
Bajaj 2 10 1 5 1 10 4 8
Pigeon 3 15 3 15 2 20 8 16
Total 20 100 20 100 10 100 50 100
Source: Survey Data
Butterfly brand of Gas Stove has been able to keep its position far ahead of its
competitors in the industry in terms of its popularity and market leadership from the
view point of dealers in the segment. 70 or more percent dealers from urban and semi
urban market and 60 percent dealers from the rural segment are of the view that this
brand is the market leader. Pigeon, like its market share from the perception of
consumers, keep the same position from the dealer point of view also.
5.54 Dealers’ Opinion as to the Popular Brands in Pressure Cooker Market of
Kerala – Location Wise Analysis
Dealers may find the differences among the brands of pressure cooker in
terms of its popularity across the segments. This something might be based on the
230
information gathered by them about the outlook and product knowledge of the
consumers who come from different demographics.
Table T5.49 Location Wise Distribution of Popular Brand of Pressure Cooker
Pressure Cookerr
Area of Business Total
Urban Semi Urban Rural No. % No. % No. % No. %
Prestige 10 50 10 50 5 50 25 50
Hawkins 3 15 5 25 2 20 10 20 Butterfly 4 20 3 15 3 30 10 20
Pigeon 3 15 2 10 - - 5 10 Total 20 100 20 100 10 100 50 100 Source: Survey Data
Analysis of Table T 5.49 reveals that Prestige is the most popular brand of
Pressure Cooker in Kerala. Dealers who have comment this brand as the most
popular one are uniformly distributed (50 percent across the market segments
considered under study). When 25 percent of the semi urban dealers perceive
Hawkins as the leading brand, 20 percent of the urban dealers and 30 percent of rural
dealers favored Butterfly. A close analysis of the dealers’ opinion also indicates that
almost all brands of Pressure Cooker have some sort of popularity in different market
segments of Kerala.
5.55 Dealer Perception as to the Popularity of Brands of Kitchen Appliances in
Various Market Segments – Inferential Analysis
Statistical significance of Market wise differences in perception of dealers in
Kitchen appliances market of Kerala as to the popularity of the brands traded there
are verified with the help of inferential statistics. The test results reported in Table
T5.50 justified the findings of descriptive analysis as the statistically significant
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difference in this regard is not observed in any of the product segments. So it is
inferred that there is a consensus among the dealers from different market segments
of Kitchen appliances market of Kerala as to the popularity of various brands traded
in the product segments selected for the study.
Table T 5.50 Association between Location of Business and Dealer Perception as to the
Popularity of Brands in Kitchen Appliances Industry – Inferential Statistics
Kitchen Appliances Pearson Chi-Square
Value P Value
Mixer Grinder 0.853 0.653
Grinder 0.221 0.895
Refrigerator 0.587 0.746
Gas Stove 1.612 0.447
Pressure Cooker 0.889 0.641
Source: Survey Data
In Kerala almost all brands in the Kitchen appliances industry have dealers
across the market to sell their products to widely disbursed customers. Many of these
dealers have been maintaining glowing product portfolio as well as brand portfolio
by incorporating well reputed brands of each product. Market wise diversity in
pattern of brand portfolio is found to be not much generic among the dealers in most
of the Kitchen appliances. Most of the dealers pursue more or less similar promotion
strategies regardless of the market they operate or product they deal in. However
market wise differences are observed in promotion strategies practiced by the dealers
in some selected goods.