I F BMARKET LEADER

INWASHING MACHINES

N V Jagadeesh Kumar T 15DM016

IFB (Indian Fine Blanking) Industries Limited is India’s leading home appliances and fine blanks producer. The company was known as Indian Fine Blanks Ltd. It started operations in 1974 in collaboration with Hienrich Schmid AG of Switzerland. The company got listed on the BSE in 2000. Today, the company manufactures fine Blank components such as strengtheners, Decoilers and strip loaders as well as other engineering components, and home appliances such as washing machines, dishwashers, microwaves, hobs, Chimneys and other cooking appliances. Its manufacturing plants are located at Kolkata and Gangarampur (West Bengal), Selcete and IIhas (Goa), Bhopal (Madhya Pradesh) and Bangalore. Its registered and corporate office is located at Kolkata.

Introduction

Washing Machines market is the one of the fast growing market under home appliances. Washing Machine market and then goes on to segment the market based on various fronts, including regional markets. Each of these segments is studied in detail on the basis of volume or revenue to present a clear picture of the projected performance of each of these segments.

Sector Analysis

To be customers first choice

Company AnalysisVision

MissionTo be the best in the eyes of our customers, Employees, Business Partners &

ShareholdersFor Customers – the best product to buy, an innovative product that consistently outperforms peers and outstanding service that smiles every customer smile.For people – An environment where individuals can constantly learn, grow and prosper.For business partners – IFB should be the first choice for their products and services.For Investors- The company should be acknowledged as one with the highest standards ofcorporate transparency that delivers on promises given to share holders.

IFB is the market leader in front loader washing machine in India and we are putting all our efforts and hard work to become the first choice when it comes to being an integral part of your household. They always keep customers convenience on top priority. These washing machine and cloth dryer is ready to resolve your problem.

Customer Analysis

Over two decades, they grown in strength to become a word synonymous with home solutions. Through a constant evolution of the very best washing Machines, 100% Clothes Dryers. We have helped usher in a lifestyle of convenience and freedom. Today, millions of Indian households use IFB products, making us one of the most trusted home appliances brands in the country. Its service network of 650+ franchises and 2,832+ service engineers ensures we deliver exceptional service across the country.

Traditionally, consumer researchers have approached decision making process from a rational perspective. This dominant school of thought views customers as being cognitive (i.e., problem-solving) and, to some but a lesser degree, emotional. Such a view is reflected in the stage model of a typical buying process (often called the customer information processing model) depicted in Figure.

Customer Decision making process

Problem Recognition

Information Search

Evaluation and Selection of Alternatives

Decision Implementation

Post-purchase Evaluation

Product Line

Front Load

Cloth dryer

Top LoadWashing machine

Product LineMicrowave oven

Dishwasher Air conditioners

LG Corp is South Korea's second largest company that produces electronics, chemicals, and telecommunications products. The Home Appliances division makes products like refrigerators and washing machines. Its 2007 sales totaled KRW 11.8 trillion, accounting for 29% of the company's total revenue. The division's profit was KRW 717.1 billion. About 35% of the company's home appliance revenue comes from the North American market. It also produces Mobile phones, Vacuum cleaners.Samsung Electronics is the world's largest electronics company with 2009 revenue of $117.4 billion, Samsung Town, Seoul, South Korea. Samsung Electronics has achieved significant market share in recent years.Whirlpool is a fortune 500 company and a global manufacturer and marketer of major home appliances with it’s headquarter in Benton charter township, Michigan, United States, near Benton harbor. The company has annual sales of approximately $20 billion more than 700000 employees and more than 70 manufacturing and technology research centre around the world

Competitor Analysis

Electrolux PanasonicGodrej

OnidaVideocon

These are some of competitors

27%

22%19%

16%

9%2%5%

IFBWhirlpoolLGSamsungGodrejVideoconOthers

Market Share

Power of Suppliers

Power of Buyers

Threat ofNew

Entrance

Availabilityof

Substitutes

CompetitiveRivalry

Threat of New Entrance (Moderate)Most current players are global playersNew entrants will need to invest in brand, technology, distributionPower of Suppliers (Low)Indigenous supply base limited – most raw materials are importedPower of Buyers (High)Multitude of brands across price points – wide variety of choice for customersAvailability of Substitutes (High)Unbranded products and cheaper imports could enter the marketCompetitive Rivalry (High)Number of well established players; several new players enteringGood technological capabilityMany untapped potential marketsOverall, the sector is a dynamic one, with significant growth opportunities.

Porter’s5 Force Model

Brand image in Home Appliances Division Innovative ProductCompatible workforceStrong after sales serviceHealthy financial banking4 Years 100% Warranty & 10 years spears part support

Less brand awarenessLess number of dealers so eventually less availability of IFB’s products.Less promotional activities

Scope for growth in the rural marketScope in semi-automatic washing machine

segmentTrust by valued and existing customersIFB has opportunities because expense on

white goods is increasing day to day by common people.

The trust in company’s product by valued customers

Aggressive and effective promotional market in initiatives used by competitors like TV ads, hoardings etc.

Preference of customers and dealers of other brands like LG, SAMSUNG etc. over IFB machine etc.

ThreatsOpportunity

Strength WeaknessSWOT Analysis

CASH COW

RELATIVE MARKET SHARE

CASH COW DOGS

QUESTION MARKSTAR

HIGH

HIGH

LOW

LOW

MAR

KET

GRO

WTH

RAT

E

IFB

IFB has high market growth rate as well as high relative market share. Therefore it is a star. Now being a star it leads to large amount of cash consumption and cash generation. It also requires heavy investment to maintain its market share. In the product life cycle it is at the growth stage. Therefore the company has a nice opportunity for growth in Indian market.

BCGMatrix

CASH COW

Existing Products

Existi

ng P

rodu

cts

New Products

New

Pro

duct

s

Market Penetration

ProductDevelopment

MarketDevelopment

Diversification

Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets

It is been clear from the above definition that market penetration is the strategy were company try to maintain its share in the existing market with its existing product. Having wide range of product in market IFB is already following this strategy of market penetration

Market Penetration

AnsoffMatrix

Product DevelopmentProduct development is the name given to growth strategy where

a business aims to introduce new products into existing markets. Now the company is ready to launch some new products.

DiversificationIt is the name given to the growth strategy where a business

market new products in new markets. The new products which are there in the pipe line can cover the new market also with its unique features and reasonable price

Market DevelopmentMarket development is the name given to a growth strategy where

the business seeks to sell its existing products into new markets. IFB is now almost covered all states with its existing products. As far as rural market is concerned, It cannot capture it with its existing product due to high price.

Ansoff Matrix

PEST AnalysisPolitical Factors

Economic Factors

Sociocultural Factors

Technological FactorsPolitical FactorHigh import dutyPlants in tax-incentive areas Export promotions schemes of the Indian government like EPCG & EOQ statusEconomical Factor Increase in per capita incomeGrowing GDP high disposable incomeIncrease in spending powerSocio-cultural FactorManufacturing eco-friendly productIncreasing life style & comfortTechnological FactorImprovement in technology made the electronic product more featuredQuality of product has been increased

IFB needs to create public awareness in the market & Should spend heavily on promotional activities.Need to increase number of dealersNew dealers in this every region.IFB try to come up with special customize shop only for IFB products.Give much concern to exhibition on different locationsDealer’s discounts and schemes should be maintained to satisfy dealers.

Conclusion

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