Pricing and channel
Published on: Mar 4, 2016
Transcripts - Pricing and channel
GODREJ REFRIGERATORS PRESENTED BY GROUP- 3 ANKIT KAKROTRA B.H.CHANDRASEKHAR RAGHAVENDRA PRANEETH SACHIN RAM MOHAN
The retailer generally gets a commission of 10-15% of the price of the refrigerator depending up on the units of refrigerator sold
-3 -2 -1 0 1 2 3Godrej refrigerators are comparatively much cheaper thanthat of their nearest competitors Samsung
CUSTOMERS OWNING REFRIGERATOR No 15% yes 85%
BRANDS POSSESSED BY THE CUSTOMER LG ,4 Samsung , 8 Others, 1Godrej , 1 Whirlpool , 3
CUSTOMER PRIORITY IN FUTURE LG ,2 Others, 1Godrej , 1 Samsung , 9 Whirlpool , 7
PREFERRED PRICING1412108 Series16 Series2420 <10,000 10,000-20,000 20,000-30,000 30,000-40,000
BRAND SWITCHING BASED ON PRICING1412108 Series16 Series2420 Definitely Yes Most likely Might Consider Definitely NO
Standard Quality Good performance After sales service Past experience with the brand
Godrej follows a 2-level distribution policy. The ratio between the wholesalers and retailers is 1: 8.2 i.e. for every wholesaler there are 8 (approx) retailers. This implies that, each wholesaler supplies to 8 retailers on an average. http://www.indiabiznews.com/?q=node/2129
Discounts: Indian customers are very price sensitive and tend to prefer any sort of discounts provided to them. Especially during festival season, when the demand is high, discounts play a key role. After sale service: The after sales service is quite important when it comes to consumer durables like refrigerators. This plays a key role in customer retention and loyalty. Customer education: All the customers may not be aware of the various technical features of the refrigerators. Bring new products to the customers notice and educating them about the products use.
Availability of stock: The product range required by the customer has to be readily available. Out of stock means the customer may prefer other retailer or a brand. Credit facility: This is expected especially in rural areas, where the customers take loan to buy refrigerators. They can’t pay huge amounts at once and hence pay in installments. Free home Delivery and installation: The refrigerator has to be carried to the customer’s homes and installed properly. This has to be taken care of by the retailer as it is expected out of him and gives the retailer an differential advantage.