Professional Documents
Culture Documents
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take decisions related to target market, product assortment and service, price and
promotion decision to face the challenges of new channel needs.
22. The analysis shows that the entire manufacturers under study finally dispatch
augmented product with added features like warranty, after sales service, free
delivery, credit facility and installation of the appliance at the premises of the
customer. The manufacturers offer free installation as the kitchen appliances are
of a special category which requires expert handling and operation and the house
maids who use the equipments do not possess the required skill or technical know
how to operate the appliance. Moreover, the manufacturer has to keep the sold
products in its original form and use at least up to a particular period of time for
which he has to extend warranty and after sales service.
23. The kitchen appliances produced by most of the manufacturers under study have
the entire dimensions (width and length) of the product mix. Only refrigerator
manufacturers are lagging behind in width and length dimensions of the product
mix.
24. The entire manufacturers selected for the study constantly resort to
modernization of their product lines. The imperfect form of competition exists in
the kitchen appliances industry, withstanding of which is possible by the firms
mostly through product differentiation. Hence they try to incorporate all novel
features in their products powered by modern technology in accordance with the
changes in their competitive products.
25. The analysis shows that all the manufacturers adopt product featuring as a regular
policy. So, every product segment in kitchen appliance industry under study has a
good range of products in price and its feature terms which are mainly used by
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the firms as a tool for expanding their market share either by attracting the
customers from different geographic segment or by stimulating the existing ones
to shift their demands from economy segment to premium segments.
26. Multi brand strategy is the most widely used brand strategy in kitchen appliances
industry. About 42 percent of the manufacturers surveyed use this strategy.
Umbrella brand and family of names are also favoured by twenty five percent
each of the manufacturers. Single brand strategy is relatively unpopular among
the manufacturers. Many of the manufacturers would like to have a brand equity
which the customers value and see it as a friend. One third of the manufacturers
wish to measure its brand value at the firm level.
27. With regard to the packaging aspects of marketing, utmost concern given by the
manufacturers of kitchen appliances is the storage, use and convenience of the
product. This factor gained the first priority by the manufacturers followed by
protection of the product and promotion of the product. Its packaging is nothing
to do with the promotion of the product as the people are attracted not by the
packing of the product, but by the quality of the product contained in it.
28. To reap the maximum benefit out of the implementation of marketing program,
all the prominent ingredients of marketing communication mix are applied
simultaneously by all the manufacturers under study. However, personal selling
and direct marketing not found as part of the promotion mix.
29. Among the manufacturers of kitchen appliances under study, 58.33 percent spent
moderate amount and 41.67 percent spent huge amount for advertisement of their
products. None of the manufacturers reported that their advertisement budget is
low. Competitive situations prevailing in kitchen appliances industry like any
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other segment of home appliances market compel the companies to spend more
for advertisement in order to make the customers aware of the relevant aspects of
their products compared to that of competitors there by pursuing them to buy
their products.
30. All the manufacturers consider almost all the factors in setting advertisement
budget except stage in the product life cycle. This is because all the
manufacturers under study are already in the market with established brands and
most of them have been in Kerala market for the last 10 to 15 years. They have
been in growing or saturation stage and advertisement is a regular promotional
activity for them.
31. Choosing media type is the most important factor considered in the selection of
advertising media. Geographical media allocation, Selecting specific media
vehicles, desired reach number of audience and impact and then media timing are
the other determining factors of media selection in the order of their preference
by the manufacturers.
32. It is also found that Events are the most important tool of marketing public
relations by the manufacturer.
33. All the manufacturers selected for the study have adopted a holistic approach in
their market segmentation process. They have taken into consideration all the
variables relevant for segmenting the market together and they have designed
their products which can fulfill the needs of the consumers irrespective of the
environment in which they include.
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34. All the manufacturers selected for the study, follow Diffused preferences as
patterns of market segmentation because the consumer preferences are scattered
and the consumers vary greatly in their preferences.
35. Segment structural attractiveness is the most important factor in the evaluation of
market segment by the manufacturers. A segment in a kitchen appliances market
might have desirable size and growth still not be attractive from a profitability
point of view. So the manufacturers in this industry appraise the impact on long
run profitability of the industry in terms of competitors, potential entrants,
substitute producers, buyers and suppliers.
36. With regard to the Product Positioning Strategies of Manufacturers of Kitchen
appliances, adding additional benefits and utilities to their products is the main
strategy pursued by them for marketing public relations and making an image or
identity of their products in the minds of consumers.
37. Among the various factors influencing the buying behavior of their consumers,
the manufacturers of kitchen appliances believe that the personal factors are the
most prominent ones. Occupation and economic circumstances of the buyer is the
major personal factor affecting the buying behavior of consumers of kitchen
appliances.
38. Social factor is also a significant factor influencing the buying behavior of the
consumer. It is also found that family is the most significant social factor
influencing the buying behavior of consumers in kitchen appliances industry.
Other important social factors include reference group and role and status of the
consumers.
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39. It is traced out from the analysis that perception of the consumer towards various
brands products is the most significant psychological factor influencing the
buying behavior of consumers. Beliefs and attitudes of persons are also highly
influential psychological factors in buying behavior.
40. Most of the manufacturers surveyed are keen in monitoring the post purchase
behavior of their consumers. This practice they follow on the basis of the
principle that retaining customer base is more important than attracting new ones
in the present competitive scenario. Most of them use the tools like complaint
and suggestion systems, customer satisfaction surveys, lost customer analysis etc.
for tracking and measuring customer satisfaction. Among these complaints and
suggestion system is the most widely used by manufacturers of kitchen
appliances for measuring the post purchase satisfaction of their buyers.
41. Reactive marketing proved to be the most preferred one among the manufacturers
of kitchen appliances in Kerala. This level of investment in customer building is
ranked first by manufacturers survey followed by pro-active marketing and base
marketing. Re active marketing is by far an easier approach and brings economy
in money, effort and time. This could be the reason why manufacturers of kitchen
appliances prefer this.
42. All the manufacturers of kitchen appliances under study have a competitive
intelligence system to get valid information about competitors. During the
present competitive situation of kitchen appliances market of Kerala, each and
every manufacturer has to get information about the competitor product, the
strategy of competitors and he has to design counter strategy against them and
have to modify their products in accordance with the changes in the industry.
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43. Many of the manufacturers in kitchen appliances industry want to become market
challengers by making a product advantage, offering better value to the market
place and by adopting new technology in production for getting more economy in
their production activities. Only one fourth of the manufacturers under study
prefer to become market leaders.
7.3 Distributor Strategies in the Kitchen Appliances Market of Kerala
The second important objective of this study is to identify the nature of
strategies adopted by the dealers/distributors in the kitchen appliances market of
Kerala for knowing whether there is any marketwise or product wise difference
among them in this regard. From the analysis of the data collected from the dealers
selected for the study, the following factors have been observed.
1. Majority of the distributors surveyed in the study have been transacting business in
the entire kitchen appliance which might be due to the uniform rate of pay offs
from their business regardless of the type of product they deal with.
2. There is difference in distribution of kitchen appliances by dealers among various
markets in Kerala. 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 area do not deal in Refrigerator, only 25 percent of the
dealers in semi urban market do not transact 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 are in need of such products,
they prefer to purchase it from the nearest town, that is urban or semi urban area.
However, Chi-square analysis found no significant difference in the portfolio of
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kitchen appliances among the dealers from various geographic market segments of
Kerala.
3. Discrimination in the matter of selection of brand of different products among the
dealers is relatively low. All the distributors of mixer grinder deal 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 do business. Only 50 percent of the dealers in Grinder deal in
Butterfly brand of grinder.
Most of the famous brands of Refrigerators are sold by all the selected dealers
in Refrigerator. The most popular brand in India - Butterfly is the major component
of product portfolio of dealers in Gas Stove. Other reputed brands like Pigeon,
Inalsa, and Bajaj are also selling by majority of the dealers of that product.
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.
4. 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 promotes his face value and
credibility also in the market.
The most established brand of Grinder, that is Laxmi and Maharaja, have
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
are dealing in all the established brands of grinders. Brands like Butterfly and Inalsa
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were 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.
The entire selected distributors deal in well established brands of
refrigerators which have already created a very strong brand image in the minds of
the consumer. Area wise distribution of dealers of Refrigerator on the basis of the
brands they are dealing with is almost same. It can also be identified that only 25
percent of distributors deal in BPL brand of Refrigerator, due to which the
manufacturer of this brand have decided to stop its production and the company is
itself on the verge of winding up.
When 75 percent dealers in semi urban market are keeping 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 urban and rural. 80 percent of total
dealers are taking the inventory of either Pigeon or Inalsa or Bajaj along with the
most versatile brand, Butterfly.
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 are keeping the entire
established brands of pressure cookers.
Inferential analysis shows that the geographic differences in the brand mix of
kitchen appliances by dealers are significant in the mixer grinder segment only. In all
other cases the differences among the dealers in this regard are not amenable to make
generalizations.
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5. Dealers in kitchen appliances 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. With regard 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 change in life style and
standard of living of the people.
6. It has to know that the dealers in urban and semi urban market are selling 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 are comparatively
lesser than those of other two segments. Only 50 percent of rural dealers are able
to make the sale of a mixer grinder per day on an average basis. Such discrepancy
in the distribution of sales across the region might be due to the difference in
attitude, socio economic profile and lifestyle of people residing there.
Irrespective of the geographical location in which the dealer confined their
operations, the sales frequency of 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 grinder in a month on an average. Remaining 50 percent of dealers in
semi urban market are making a better sale of 20 to 30 units of grinder per month.
All the dealers of refrigerators from different market segments are making
better sales of refrigerator than other kitchen appliances like grinder. 50 percent of
dealers in urban market are able to sell 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
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urban dealers in refrigerator could make 20 to 30 units of their products per month.
Such a distribution in sales of dealers reveals that every dealer of their category has
customers for their product in every market.
Each and every dealer in urban market is able to sell more than 30 units of
Gas Stove every month. 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 in the remote areas of the country and government initiatives in this regard help
the dealers in gas stove to improve their performance.
Sales performance of dealers in pressure cooker are almost same in both
urban and semi urban market. 50 percent of dealers in both markets are making a sale
of more than 30 units of Pressure Cooker in a month and the sale of remaining 50
percent constituted 20 to 30 units a month. In rural market the sales frequency of all
the dealers of this appliance are 20 to 30 units. Saving cost of energy and possibility
of instant cooking demanded by modern lifestyle of the people helped the dealers
even in rural market to make better sales for this appliance nicknamed as kitchen
mate of maids.
From the inferential analysis it is clear that the dealers location of business
has statistically significant influence on their sales of mixer grinder and gas stove
only.
7. Sumeet and Maharaja are the market leaders in mixer grinder in all the market
segments according to the opinion of its dealers and the main competition in
mixer grinder market is between these two brands. They lead the other firms in
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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 substantiate the validity of
this finding.
10. It is clear from the responses of dealers that, Butterfly is the most prominent
brand among the consumers of gas stove in Kerala. More than 60 percent dealers
in urban and semi urban segments 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
dealers 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.
11. 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. Marketwise analysis of dealer response
observes some difference across urban, semi 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 fail to provide any statistical
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validity which is sufficient to generalize this finding in the context of the entire
market segment of Kerala.
12. Analysis 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 are also
offering incentives to dealers based on their performance, but the numbers of
dealers who are getting such incentives are small.
13. In the case of the Grinder, the most popular Brand Laxmi is also motivating 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 the second
position in motivating the dealer and the other two brands, Inalsa and Butterfly;
their sales promotion tools are relatively weak in terms of dealer motivation.
14. Almost all brands except BPL in refrigerator segment are pursuing the dealers to
carry the brand and to take greater effort for large sales. More than 20 percent of
dealers in all the four most popular brands in the refrigerator industry are giving
incentives to their dealers for recognizing their best sales performance. B P L,
which is considered a thrown out brand from the refrigerator industry, is not
taking any effort in reviving their demand through dealer motivation.
15. Butterfly, the most versatile brand among the group of gas stoves, is using a
strategy to push the dealers to provide a space for the product in their shelf and to
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put effort for its marketing. 50 percent of the dealers in Gas Stoves comment that
they are getting special offers or incentives from butterfly to become keen in
marketing that product. Pigeon, the brand which is in second position in terms of
customer sales are also keeping the same position in terms of pursuing its dealers
to take effort for creating demand for it.
16. Prestige, the kitchen mate of housewives, is keeping 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 are also prudent in their trade
promotion action. But Butterfly, which is keener in trade promotion of its Gas
Stove, is least conscious in the importance of dealer motivation in marketing of
Pressure Cooker.
17. On considering the market leadership of brands in kitchen appliances it can be
interpreted that the establishment of a brand in the market could be the outcome
of its dealer motivation.
18. 30 dealers in sumeet brand of mixer grinder are getting 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,
other brands, Inalsa and Preethy offer incentives to dealers only from urban and
semi urban markets respectively.
The most selling brands of grinders in Kerala market, that is, Laxmi and
Maharaja are designing their own trade promotion strategies regardless of the market
segment where they operate. They are pushing the resellers of their products through
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dealers to carry, promote and push the product in the market which they are
specialized.
Inferential analysis carried out here rejects the hypothesis that there is
significant market wise differences among dealers in getting incentives schemes
from the manufacturers of kitchen appliances in promotion of their products.
19. There is difference in 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) depends on manufacturers 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 are taking more effort for pushing the
customer 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.
20. 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 are
giving cash reduction to the customers for their fresh purchase. More than 60
percent of the dealers in grinder and gas stove also comment so. Interest free loan
and exchange offer are also equally popular incentives offered by some of the
dealers in kitchen 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.
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21. 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 are offering 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 area, 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.
22. 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 are also announcing free gifts to
the new buyers of grinder.
Chi-square analysis administered here found that there is market wise difference
in dealers of grinder in designing their sales promotional strategies.
23. Cash reduction and interest free loans are the major strategies pursued by the
dealers of refrigerator for influencing the customer behavior irrespective of the
market where they were operating. Even though, exchange offer also was made
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by a small fraction of dealers from urban and semi urban market, it could not be
considered as a normal one in the case of refrigerator as the percentage of
exchange price offered by the dealer in terms of the price for the new product is
marginal only. None of the dealers in refrigerator was making any free gift offer
to the customers for influencing their buyer behavior and choosing him as the
dealer for their purchase.
24. Cash reduction and exchange offer were the popular marketing strategies among
the dealers in gas stove from all the three market segments. One important point
to be noted here is that, in relatively lower income profile segment, that is rural
segment, none of the dealers are offering any credit facility to attract the
customers. More or less the same thing is repeated in the case of pressure cooker
also. This could be attributed to two reasons. One is, both are relatively lower
priced items in the kitchen appliance industry and second is that their utility in
kitchen is closely related. However, unlike the dealers in gas stove, the urban
dealers in pressure cooker do not offered any free gift, but the semi urban ones
give such offer to the customers for choosing them as their supplier.
25. Sumeet is the most popular brand in mixer grinder segment of Kerala market. 46
percent of the dealers stand 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 are the leading brands and only 10 percent comment that relatively
non popular brand, Inalsa as the leading one.
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Many of the dealers from different market segments stand in favor Laxmi as
the market leader in the grinder market of Kerala. One half of the dealers from urban
segment, two third of the dealers from semi urban segment and 70 percent of the
dealers from rural area view 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.
There is 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 is shown between urban and
rural dealers where 45 percent each from these segments favor Godrej and 20 or
more percent support the multinational giant, LG as the market Leader. When 40
percent of the semi urban dealers standd in favor of LG, the relatively larger fractions
from the rest (30 percent) are of the view of Whirlpool, rather LG, as market Leader.
Other brands Samsung and BPL, relatively unpopular in all the three segments
Butterfly brand of Gas Stove is 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 dealer point of view also.
Analysis reveals that Prestige is the most popular brand of Pressure Cooker in
Kerala. Dealers who have commented this brand as the most popular one are
uniformly distributed (50 percent) across the market segments considered under
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study. When 25 percent of the semi urban dealers perceived Hawkins as the leading
brand, 20 percent of the urban dealers and 30 percent of rural dealers favor Butterfly.
A close analysis of the dealers opinion also shows that almost all brands of Pressure
Cooker have some sort of popularity in different market segments of Kerala.
The results of inferential analysis administered in this regard also reinstate the
validity of the finding that there is consensus among the dealers from different
product segments of kitchen appliances in Kerala market as to the popularity of
various brands traded in the product segments selected for the study.
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segments of market, Whirlpool is pushing their product mainly in semi urban area.
The results of the chi square analysis confirmed the statistical validity of the
hypothesis that there is significant difference among the customers of refrigerator
across the market in choosing their brand of refrigerator.
5. The brand Butterfly is the most popular brand of gas stove in the market of Kerala.
Most of the consumers of gas stove (61.7 percent) own Butterfly brand which is
considered to be a synonym of Gas Stove by the housemaids in Kerala. Remaining
38.3 percent of the market is shared by all other brands together.
66.7 percent of the urban population, 60 percent of the semi urban and 56 percent
of the rural population have got Butterfly brand of Gas stove. This shows that
majority of the consumers in all the three market segments prefer to buy Butterfly.
Other brands like Inalsa and Bajaj receive relatively very little demand. The
results of the hypothesis test found no statistically significant difference among
the customers from various market segments in choosing the brand of Gas stove
they are using in their kitchen.
6. All the established brands of Pressure Cooker have been influenced the buying
decision of consumers. 40 percent of consumers prefer Prestige, 33.3 percent opt
Butterfly and 26.7 percent selected Hawkins. Thus it is inferred that consumers of
pressure cooker have affinity to those brands which have been in the market for a
long period of time.
The location wise analysis found that the popularity of different brands of pressure
cooker is different in varied parts of Kerala kitchen appliances market.
7. With regard to the major factors influencing the brand choice of consumers, 60
percent of the respondents are choosing the Mixer Grinder because of established
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brand name and 20 percent consider the after sales service also along with the
brand name while 13.3 percent a look for cheaper price and 6.7 percent consider
only the after sales service while selecting their product.
All of the consumers who have Grinder opined brand name as the major
factor that persuade them to choose a particular brand of Grinder. A significant share
of the group (i.e. 60 percent) also consider the after sale service along with brand
name while making their purchase decision.
54 percent of the consumers make choice of their Refrigerator on the basis of
brand name as well as after sales support, while another 30.7 percent by taking into
account the brand name alone. The rest 15.3 percent consider only good after sales
service as the most important decisive factor of their brand selection process.
Among the consumers of Gas Stove 60 percent strongly look for the brand
name which has established a presence in almost all kitchens. 20 percent look only
for the after sales service while choosing their product whereas the rest 20 percent
look for the brand as well as better after sales service.
47 percent of the users of Pressure Cooker strongly look for the Brand name
which has established its presence in almost all kitchens. 40 percent give importance
to better after sales service in addition to the reputation of the brand. Only a nominal
fraction of the population is attracted to a particular brand of Pressure Cooker
because of lesser price and exchange offer given by the manufacturers. Thus almost
all consumers of different product segments believe the brand name and after sales
service to be the most important factors for evaluating the quality of the product they
intend to buy. However, some of the consumers from the segment of Pressure
Cooker consider the price factor also while making final decision on their purchase.
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8. The urban population always looks for both brand name and after sales service in
the selection of a particular Mixer Grinder. But 80 percent of semi urban
population looks for brand alone. In the case of rural population, one half of them
consider pricing as the major factor influencing their purchase decision. This can
be attributed to the relatively low income distribution of the rural population.
The urban and semi urban population while purchasing the product of
Grinder always look for both brand name and after sales service. Cent percent of
semi urban and 60 percent of urban give priority to these two aspects in choosing a
particular brand. But 75 percent of the rural consumers of Grinder consider better
after-sales service and the remaining 25 percent feels lesser price as the decisive
factor of their purchase. This is an indication of the fact that consumers from the
developed area of the state are more keen on reliability factor through established
brand and proven after sales service.
88 percent of rural population and 54 percent of urban population always
look for brand name alone in choosing their Refrigerator. 45 percent of semi urban
population and 29 percent of urban take into account brand as well as after sales
service while making their choice of refrigerator.
It shows that a full fraction of rural population, 50 percent of urban and 40
percent of semi urban population seek brand name in their product choice of gas
stove. Remaining 50 percent of urban population considers the brand name and also
the after sales service before making their final decision on purchase. Thus altogether
60 percent of the entire population takes brand name as the sole or most important
factor for evaluating the quality of the grinder they intend to buy.
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The majority of consumers look for brand name and after sales service while
choosing their pressure cooker. 60 percent of semi urban populations, 50 percent of
urban population are keen on brand and after sales service, while 75 percent of rural
population selects the product only because of the established brand name. 25
percent of rural population considers pricing as an important factor and they look for
lower priced items. This can also be ascribed to the lower income profile of the rural
population.
On interpreting the results of hypothesis test applied for knowing whether
reasons raised by the consumers of kitchen appliances in choosing their brands are
independent of their area of residence or not it is reasonable to infer that despite the
brand preferences of the consumers from different geographic locations evenly
distributed, they are diverged themselves in terms of their perception as to different
aspects of their product.
9.
Among the respondents of Mixer Grinder 73 percent are happy with the
performance of their product and 27 percent are satisfied with the current
performance of their product. Most of the consumers are either happy or
satisfied with the performance of their Mixer Grinders.
66 percent of the people who use the Grinder have the opinion that the
performance of this domestic device is good and 34 percent feel that it is satisfactory.
Hence the quality of Grinders available in the market is reasonably good.
76 percent of the consumers are happy with the performance of their
Refrigerator and 24percent are satisfied with the product. This reveals that the
performance of almost all the Refrigerators is reasonably good because non branded
manufacturers are not there in the segment of Refrigerators.
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87 percent of the consumers are happy with the performance of their Gas
Stoves and 13 percent satisfied with their product. This reveals that the performances
of almost all the Gas Stoves are reasonably good because Gas Stove manufacturers
strictly follow rigid quality control measures.
73 percent of the consumers are happy with the performance of their Pressure
Cookers and 13 percent are satisfied while the rest 13 percent have the opinion that
the performance of their Pressure Cooker is not satisfactory. This reveals that the
performance of almost all the Pressure Cookers is reasonably good because of the
intensive competition in this product segment; the manufacturers are giving more
thrust to the quality of the product.
10. 83 percent proportion of the urban population has good opinion about the
performance of their Mixer Grinder, when 75 percent of semi urban population
and 56 percent of rural population commented so. 17 percent of urban
population, 25 percent of semi urban and 44 percent of the rural population have
the opinion that the performance of their Mixer Grinder is satisfactory.
The majority of the urban population (ie.75 percent) has good opinion about
the performance of the Grinder which they are using for their domestic purpose. But
only 58 percent of the respondents from the semi urban area and 56 percent from the
rural area expressed their observation as good with regard to the performance the
Grinder they use at this degree of scale. However, 44 percent of rural, 42 percent of
semi urban and 25 percent urban consumers of this household device are satisfied
with its performance. This shows that with the same brand of Grinder where urban,
semi urban and rural population has different scale of opinion.
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about 80 percent of consumers of Gas stove and Pressure Cooker comment that
the retailers are not ready to spend time on after sales service and consider it as
the responsibility of the manufacturer. Since the retailer is the direct link with the
consumer in the distribution process, any negative response from the part of them
with respect to service support to the customers shall definitely affect the trust
and confidence of the consumers which in turn shall lead to the shift in their
product choice.
There were market wise differences in the perception of customers as to the
level of support extended by their dealers in getting their products being serviced. Of
the five kitchen appliances under study, except Gas stove, in all other four products
their customers from different market segments have differences of opinion in this
regard, which is found statistically significant at 1 percent level for Grinder and
Pressure cooker and at 5 percent level for Mixer grinder and Refrigerator.
13. More than 55 percent of consumers of Mixer Grinder and Grinder, 73 percent
each of consumers of Refrigerator and Gas Stove and 63 percent of the
consumers of Pressure Cooker opined that the after sales service provided by the
manufacturers of their products to them is really good. About 30 percent of the
consumers of Mixer Grinder and Grinder, more than 20 percent of the consumers
of Pressure Cooker and Refrigerator and 15 percent of Gas Stove customers are
satisfied with the present services offered by the suppliers of their products even
after making the sales. The proportion of unsatisfied customers in this regard is
very nominal. When we take these datas altogether, it can be said that 90
percent of the total customers is at least satisfied with the back-up service
provided by the suppliers and only 10 percent of them are upset with this aspect
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of product service. Most of the customers are satisfied with the efforts taken by
the manufacturers for bringing them better after sales service even though the
retailers do not show a keen interest in this regard. About 90 percent of the total
consumers selected for the study are satisfied with the after sales services.
14. The rural customers do not relatively feel good or sometimes even feel bad in
getting further service from their suppliers once they have made their purchase.
This might be attributed to the fact that service centers of majority of the popular
kitchen appliances manufacturing companies in India are mainly situated in
cities or towns which pose a problem to the rural customers to go to these
centers, which are far away from them, for getting their products serviced.
15. Majority of the consumers do not get any incentives for the referral made by
them. Only 10 percent of the customers get some form of incentives from their
dealers for referring the products to other people. However, the relative
percentage of customers who are getting such incentives is high in case of Gas
Stove and Pressure Cooker. This might be due to the fact that the volume of sale
and profit margin on these products are relatively high and its dealers are ready
to sacrifice a portion of their profit in favor of the customers for motivating them
to influence the purchase decision of their friends and relatives.
16. Most of the dealers in kitchen appliances do not offer any sort of incentives to the
buyer for their recommendations and referrals. However, when a product wise
analysis is made on this aspect, relatively more customers from urban and semi
urban areas are able to persuade their dealers to give them incentives for
recommending the brand to their friends and relatives.
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17. Cash incentives are the most common form of incentives offered by the dealers to
their existing customers for their referrals. Out of the 260 customers who have
received incentives, 145 of them get cash incentives. When product wise
analysis is made, it is found that except the customers of refrigerator, majority of
customers of kitchen appliances receive cash incentives. For the customers of
refrigerator dealers prefer to give additional extended warranty to the products
which they have already purchased from them. From this it can be deduced that
for the promotion of relatively small and cheaper kitchen appliances among the
group, dealers like to give cash incentives instead of additional extended
guarantee.
18. Dealers mainly give free gifts to their customers who have recommended his
name and the brand of the refrigerator to those known by him and who are going
to purchase a product of this kind. They also offer cash reduction for future
purchase and also cash incentives to such customers who give such referrals.
None of the rural customers of refrigerators receive any such incentive from their
dealers.
In the case of other four kitchen appliances, cash incentives were mainly
received by customers irrespective of their location status. The pattern of other
incentives offered to them by their dealers is more or less the same as that of Gas
stove.
Area of residence or location of a business is not a determinant of types of
incentives offered to the customers of kitchen appliances by its dealers. The analysis
did not find any statistically significant difference in this regard among the customers
in any of the kitchen appliances identified under study.
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In setting the price, the analysis of Price elasticity and sensitivity is also to
be taken in to consideration.
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Dealers should design their own promotional techniques rather than simply
going after the trade promotional strategies of manufactures.
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7.7 Conclusion
The study has found uniformity among the manufacturers of kitchen
appliances in Kerala with regard to the approach in both designing and
implementation of their marketing strategies. Regardless of the product they deal
with or the market in which they operate, these manufacturing firms are pursuing
multi brand strategies and trying to have customer level creation of brand equity.
Dealers in this market are keeping good brand and product portfolio which bring
them in a position to not depend upon one or two manufacturing firms to decide their
business fortunes. Brand wise differences are there in most of the product segments
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in kitchen appliances of market of Kerala and the consumers have their own reasons
for choosing a particular brand. So each and every firms operating in this market
should identify what a customer from a particular market segment really expects
from him and then try to produce and deliver it in the most effective way. While
doing so, none of them should forget the acumen of modern marketing retaining
existing customer base is more important than attracting the new ones.
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