'Case for Analysis Marching Towards Market Essay\r'

'Introduction\r\n birl potbelly is a Fortune 500 phoner and a global manufacturing business and rafter of major foot gubbinss, with annual gross gross revenue of approximately $20 billion. whirlpool entered the Indian commercialize in the late 80s, and had intrench itself as a for middleable player in the Indian home appliances martplace by the mid 1990s, with a universal mathematical convergence portfolio c bothwhereing backwash machines, refrigerator, microwave ovens and air conditioners. Today, twirl is one of the pen up to recognize grade in home appliances in India and halts a grocery sh atomic number 18 of everyplace 20%.\r\nWhile Whirlpool is an accognitiond player in many of the piss purifier marketplace places across the world for the prehistorical several(prenominal) years now, Whirlpool entered the increase irrigate purifier market in India in 2008. addicted its guidance on â€Å"attaining market freeing leaders with client loyaltyâ⠂¬Â, Whirlpool aspires to be the market leader in the pee purifier market by 2012. This typeface precedes the situation of the pee purifier market in India, and poses ch tot whollyyenges that Whirlpool will invite to over grow to achieve its imagination of becoming the market leaders.\r\nDrinking peeing supply scheme : A perspective\r\nEven as world bodies and governments across the continents be st respectgizing to manage the growth humanity in a holistically sustainable manner, availability of untroubled boozing is a major ara of concern for all. As high as 884 Mn people in the world do non have get to to safe weewee. This is roughly one in 8 of the world’s population. 1.4 million children die any(prenominal) year from diarrhoea caexercisingd by unclean pissing system and poor sanitation †one child every 20 bites. Approximately 80% of diseases in India atomic number 18 ca utilize by water borne micro organisms.\r\nThis is true in rural as hale as urban India. However, aw atomic number 18ness of health risks linked to unsafe water The use of water can be much often than not divided in to two major categories, to wit for Consumption ( imbibing, cooking and so forth and Sanitation. This casing focuses on water used for drinking purposes.\r\nA brief on weewee Treatment methods\r\nThrough come surface human history, varied methods of make doing water before consumption have been devised. Up until about 100 years ago, it was al modalitys ready that water decreaseing from natural springs was safe for drinking in its natural state, unless in the 21 century even spring water is first-class honours degree scientifically tested before it is recomm cobblers lasted or bottled for drinking. to each one of the higher up methods carries with them monumental disadvantages either from a whatchamacallit point of view or from health and hygiene perspective. This calls for more sophisticated methods of purgatorial water, to suit with the evolving lifestyles in the societies.\r\nCurrent State-of-the-Art irrigate Purification Technologies\r\nToday, the more sophisticated and commercially lendable water purifying technologies are, • • • Manual stuff Purifier ( drippage Type) Ultra regal (UV) subtlety Reverse Osmosis (RO) civilisation\r\nThe latter two are generally referred to as Electronic Water Purifier technologies (EWP); by exception, the first one is referred to as Non EWP. The above iii are abandoned in the order of chronological evolution, with RO engine room cosmos the latest in the Water Purification technology. The manual cope with purifiers do not run on electricity, which is a scarce preference in many parts of rural India, and excessively have meaning(a)ly lower cost in comparison to the EWPs. Interestingly , these manual contain purifiers which originally use chlorine or UF technology are at par in performance with UV in terms of microbial security meas ure. UV has been the oldest technology in the application. It typically involves preliminary stages of filtration, followed by treating the pureeed water through UV rays to deactivate the microbial organisms. In the RO technology, even the smallest of microbial organisms are filtered using the abandon osmosis technology.\r\nRO technology especially scores over UV when the Total Dissolved Solids (TDS) count in the starting time water is high . One disadvantage of RO systems is the wastage of significant quantum of water during its processing. Needless to say, the costs of the harvestings under these dissimilar technologies increase from manual fill purifiers to UV refining systems to RO purification. The typical terms cathode-ray oscilloscope of manual fill purifier overlaps is Rs. 1500 to Rs. 3500, succession the UV harvest-festivals range in bell between Rs. 4000 to Rs. 9000. The RO products are priced on the higher fount starting from Rs. 8000 to Rs. 20000. Many pro ducts available in the market today in India use a conspiracy of technologies but for the products in the lower end technologies (manual fill purifiers).\r\nWater Purifier trade in India\r\nThe delivery of purified water in the Indian markets follow two conduits, to wit, water purified in purification plants delivered to residences and other consumption locations (e.g. restaurants) in cans; and installation of water purification instruments at the step to the fore of usage. While the former One of the oldest methods of treating water, and one put a room used constantly in Third military personnel and often in developing nations or sweeps that have seen recent natural disasters, is boiling to kill microbes (but this causes loss of taste and may leave in dirt). other(a) methods of water treatment include filtering and di white wash drawing, use of chemic agents such as Iodine or silvery or Potassium Permanganate into the water supply, or the use of candle filters. methodolog ical analysis predominantly uses multiple technologies mentioned above, cans economies of outmatch and eliminates initial costs of investing in equipments, the costs involved in distribution of the treated water counters these economies of scale. The latter provides for visibility and ease of use, which are significant perceived benefits in comparison to the former. While two the delivery mechanisms exist, the latter is fast catching up. This case focuses on the latter, which is typically referred to as the Water Purifier diligence.\r\nThis industry is broadly divided in to two categories namely Electronic Water Purifiers (EWP) comprising of products using UV or/and RO technologies and Non Electronic Water Purifiers (Non EWP) comprising of products that use the manual fill purifiers. Frost and Sullivan report of primary research in 2009, estimates the total market coat of the Water Purifier industry in India to be 2000 Cr of which 63% is from product sales and 37% is after sal es revenue. disrespect the size of it of this industry, the Water Purifier industry in India has a low penetration (2% Urban and 0.5% All India) as per IRS 2007 and is growing at a strong rate (others use traditional water treatment methods the alike(p)(p)s of boiling and filtering, or use of chemical additives like Chlorine, Potassium permanganate etc). As per AC Nielson 2006 study( and inseparable estimates), the industry is expected to touch approx 2.3 mn units by the end of 2009. Expected growth rate of 15% and a CAGR (‘04-‘09) 21%.\r\nThe average ASV of the industry is Rs 6700. With a size of approx 1.7mn (units), the EWP market is divided into 2 sub- components †RO (30% sal) & adenylic acid; UV (70%). The RO ingredient is the premium end of the home and has an ASV of Rs 12000 piece of music UV has an ASV of Rs. 7000 .RO & UV growths , CAGRs(‘04-‘09) are (15% ,16%) and (10% ,10%) respectively. The Non-EWP component operates at a sub 2K ASV (Rs 1900). This element is witnessing an detonative growth with the entrance major players like HUL etc . The one-year growth rate was witnessed at 25% objet dart CAGR(‘04-‘09) at 77%. It is important to note that the technology sold in a given topical anesthetic market is also dependent\r\nlargely on the characteristics of the source drinking water in the given demography. For example, a region like Delhi with high TDS calls for RO technology, spot regions like Cochin with low TDS would depend on products with UV technology. Also, one of the detriments to EWP products is the availability of continuous flow of source water and availability of power, both of which advantages are addressed the products dependent on Manual ask Purifier technology.\r\nWhile the major element of the market in the water purifier equipment business in India is still in the un nonionized sector, branded products are catching up and their market office is improving. The major branded players in the market are constantan Forbes (AquaGuard, AquaSure brands), Kent, Philips, HUL (Pureit), Ion Ex trade (Zero B) Ushabrita and Whirlpool (Purafresh). As per Frost and Sullivan report 2009 , Market get by by player and by technology- Approx Shares ( for 2008) Eureka Forbes: RO(20%) , UV(35%) , Drip Type(33%) Kent: RO(25%) , UV(0%) , Drip Type(0%) ZeroB: RO(15%) , UV(0%) , Drip Type(0%) HUL : RO(0%) , UV(0%) , Drip Type(42%) OTH: RO(40%) , UV(65%) , Drip Type(25%) The Non-EWP fragment was primarily dominated by local players until recently, when HUL entered the category with its drip type purifier under the brand Pureit at a break through price of Rs 1800 and took the market by storm.\r\nThe other key players in this segment are Ushabrita & Eureka Forbes. The channel for this segment has traditionally been the Direct to Home (DTH) route, with this route still accounting for a whopping 65% of the product sales in this category. The ratio of Eureka Forbes’ DTH s ales is higher at 75%. On the trade side(contribution bal 35%), the DAP channel (Domestic Appliances crossways) accounts for the larger proportion of the share with 65% while the Durable Trade accounts for the stay 35%. The DAP transport mainly consists of small appliance sellers who sell products like iron , blenders , mixers , gas burners etc. These retailers primarily sell products which lie inwardly the price range of Rs 500-Rs 5000. They are typically not in the prime locations in the market place and their shopfloor size is on an avg10X10ft.\r\nThe products are displayed mostly in a packed form. The products are sold very close to the MRP and the discounts offered are in the range of only 5-10% HUL has make an portal through a unique channel. It has undefended up a large number of ‘Water Safe Zones’ / â€Å"Product Experience Centres’ and is pushing the volumes from there while catering to direct to home divine go as well While HUL is establishing i tself in the entry level segment through consistent advertize and publicitys , the more established players in UV & RO like Eureka & Kent too are active in the media space and are seen promoting their products through several media elements. Recently, HUL was seen rolling out a ‘Rs 1 Crore’ dispute offer and heavily promoting the same. At the same time Eureka Forbes was also seen throwing a ‘ funds Back Guarantee’ offer on its products.\r\nEureka Forbes operates with a strong sales& go force of 6000 people on the fellowship rolls on with an equally large meeting of third society franchises. The company has been under pressure to expand its volumes since the avg the productiveness of its sales team has come down over years. Lately, they have been seen heavily focussing on retail through their ‘Aquasure’ brand while the ‘Aquaguard’ brand is operational in the DTH section. Kent has its own sales & service fin d out up in Northern India while it depends on third party franchises for its operation in the rest of the country. It has branch offices in 6 cities (AP , Karnataka, Kerala , Mumbai , Gujarat , atomic number 74 Bengal). In order to counter HUL’s explosive growth, Kent recently rolled out a NON-EWP (UF based) purifier at a price of Rs 2500 under the sub-brand ’Kent Gold’.\r\nThis product is being primarily marketed through the retail channel. HUL has coterie up its Safe water zones with external KSPs ( samara service providers) while continuing to have its internal sales team supervising the operations . In Delhi for example , it has 27 such zones with a sales team of 750 sales men, 17 Territory sales executives (TSE) , 3 business development executives (BDE) , 1 area head.(AH) and 2 service officers . The TSEs, BDEs & AH are on company rolls. The following table summarizes the typical product price points in the various segments. Price range (In Rs) Unor ganized 1500-2500 4000-6000 8000-12000 Organized 2000 †3500 6000-9000 8000-20000 Whirlpool Not relevant Not Applicable 12500-20500\r\nSegment Non EWP Ultra Violet (UV) Reverse Osmosis (RO)\r\nWhirlpool’s entry in the Water Purifier Market in India\r\nWhirlpool has been present in the Water category in all the key regions of the world including US, Canada, NAR, Europe, Brazil, Mexico & Asia in several value added segments like water heaters, bottled water dispensers, water softeners , Refrigerator filters etc. Whirlpool entered the Water Purifier Market in India in the early 2008 to tap in to the growing Water Purifier Market, focused on the RO segment to start with, with the launch of the Purafresh range of purifiers. Currently, Whirlpool Water Purifier products are available across all markets in the country. Whirlpool has garnered a Market Share of 5% in the RO segment in the past 1 ½ years. The Water purifier category is a perfect brand fit for Whirlpool.\r\nI t is a home appliance used by the home maker to provide safe and pure drinking water to her family, thus underframeing a strong case of placing trust in the brand. This category will lend a hook of credibility to the Whirlpool brand. Whirlpool’s communication strategy also revolves around reinforcing this element of Trust. supply with Whirlpool’s patented ‘6th moxie’ technology, the new ‘Purafresh’ water purifier is the first Reverse Osmosis system on the market that not only purifies but also protects the purity and freshness of the water with its prestigious gold seal certification (from GOLD postage stamp of Water Quality Association, the States WQA). Purafresh is available in three fashionls †Purafresh Platinum, Purafresh Elite and Purafresh Deluxe.\r\n \r\nTrigger Questions for Analysis\r\nGiven the situation described above, suggest a comprehensive â€Å"Go-To-Market” plan following a systematic methodology for Whirl pool to achieve its overall objective of achieving market lead in the Water Purifier Market (in the organized sector) by 2012, and its interim goal of achieving market leadership in the RO segment, ensuring its premium brand image, and its operational philosophies (given in the annexure for ready reference). A) Understanding and presentation by a Systematic methodology. B)Inputs: Should reflect comprehensive understanding of the company and militant environment.\r\n1) Analyze company development , history, Growths. 2) chance on Strengths , weaknesses , 3) Analysis of external environment (Porter 5 forces , elevate etc) C) Outputs: Understating should terminus in output 1) Strategy on all 4 P’s 2) Channel Strategy ( Spl Focus) a) Evaluation of SWOT b) Key market insights c) Business Level Strategy d) Recommendations (including articulation of hypothesis) e) progressive approach especially in the communication/promotion strategy\r\nPhase II\r\nBuild a detailed business pl an arising out of the above strategic plan, and project the profitability of this business over time, including investments that may be required for new products and their market entries, while achieving this objective. Recommendation evaluated by 1) Strategy 2) Product choice 2) Financials ( volumes, Margins , costs , etc) 3) Process of executing strategy 4) Innovative approach/ideas. {In the first phase, the second phase question and related references should not be circulated}\r\nWhirlpool’s high end Purafresh platinum model, is India’s first and Only Direct hang RO with no storage tank enabling warm consumption of freshly purified water with 72 litres per time of day capacity (Normal RO products have 8-10 litres per hour capacity). It has an innovative 5-stage purification process and also boasts of a firstâ€ofâ€its†mixture electronic interface with a ‘Filter change indicator’, which alerts the consumer on the need to change the filter and thus ensures continual purity & protection of the water. Other diagnostics functions like no water on tap indication, self cleaning mode indication, and water extraction indication makes it the most good and best in class product available in the Indian market today. Whirlpool entered the Indian market mainly leveraging their strength in the durable retail channel and has the highest share (30%) of all Water Purifier sales in this channel. Whirlpool has also entered the DAP Channel and are currently having a 10% share in that channel.\r\nThe â€Å"Surging to Lead” gainsay\r\nGiven its focus on â€Å"attaining market leadership through Customer loyalty”, Whirlpool aspires to be the market leader in the water purifier market by 2012, with an interim goal of attaining market leadership in the RO segment by 2010, while at the same time maintaining its brand get. This, no doubt, is a challenging aspiration for Whirlpool, given the well secure players in the mark et like Eureka Forbes, bellicose players like HUL who is focused on tapping the market at the â€Å"Bottom of the Pyramid” and a large unformed market who would significantly benefit from the growth fuelled by these players. However, Whirlpool has to its advantage of its strong brand position in the hearts and minds of the home makers, and a strong, well established channel in the white goods market. The challenge for Whirlpool is to leverage its strengths, and perhaps work out completely innovative market strategies if it has to achieve its objective of becoming a market leader in the Water Purifier Market in general, and that in the RO segment.\r\nAnnexure : A brief about Whirlpool\r\nWhirlpool, right from its founding in 1911 as first commercial manufacturer of motorized washers to the current market position of being world’s number one manufacturer and marketer of major home appliances, has always set industry milestones and benchmarks. The parent company is he adquartered at Benton Harbor, Michigan, USA with a global presence in over 170 countries and manufacturing operation in 13 countries with 11 major brand names such as Whirlpool, KitchenAid, Roper, Estate, Bauknecht, Laden and Ignis. The company boasts of resources and capabilities beyond achievable action of any other in the industry. Whirlpool initiated its internationalist expansion in 1958 by entering Brazil. However, it emerged as truly global leader in the1980’s. This back up trend brought the company to India in the late 1980s. It forayed into the market under a joint enter with TVS group and established the first Whirlpool manufacturing facility in Pondicherry.\r\nSoon Whirlpool acquired Kelvinator India Limited in 1995 and label an entry into Indian refrigerator market as well. The same year also saw eruditeness of major share in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were merged to create Indian home appliance leader of the future, Whirlpool India. This spread out the company’s portfolio in the Indian subcontinent to washing machines, refrigerator, microwave ovens and air conditioners. Today, Whirlpool is the most recognized brand in home appliances in India and holds a market share of over 20%. The company owns three state-of-the-art manufacturing facilities at Faridabad, Pondicherry and Pune. Each of these manufacturing set-ups features an substructure that is witness of Whirlpool’s commitment to consumer interests and advanced technology.\r\nIn the year ending in present ’09, the annual turnover of the company for its Indian opening was Rs.1,719 Crores. The company’s brand and image speaks of its commitment to the homemaker from every aspect of its functioning. It has derived its functioning principles out of an undaunted partnership with the homemakers and thus a manoeuverword of â€Å"You and whirlpool, the world’s best homemaker” dots its promotional campa igns. The products are engineered to suit the requirements of ‘smart, confident and in-control’ homemaker who knows what she wants. The product range is designed in a way that it employs unique technology and offers consumer relevant solutions.\r\nWhirlpool weed : Vision and Mission\r\nWhirlpool’s pervasive vision, â€Å"Every Home, everywhere, with pride, passion and performance”, rests on the pillars of innovation, operational excellence, node-centric approach and diversified talent. These are embedded within our business goals, strategy, processes and work culture. Be it our products that are the result of innovation and operational excellence to meet every need of our consumers or the people behind these products that come from a wide spectrum of backgrounds, everything we do features a perspicuous Whirlpool way.\r\nCore Competencies\r\nInnovation: Unique and stimulate solutions valued by our guests and aligned to our brands create competitive ad vantage and differentiated shareholder value. Operational excellence (OPEX): A methodology for solving problems & continuous improvement of products & processes through pursuit, acquisition, and utilization of noesis using critical thought and planned experimentation helps us achieve operational excellence. Customer honesty: Excelling the customer expectation from the company, its brands, products and services are a three-step process. The three steps are: Know a customer, Be a customer, Serve a customer. sagacious a customer helps us know who our customers are, how to treat them, how we add value, and what the drivers of brand loyalty are.\r\nThis information is equanimous from the customer’s data base history. This way we are better able to customize products for them and root on the right product to solve problems. Being a customer is important to share customer knowledge and insights, drive actions based on customer insights, be passionate about our brands and customer loyalty and provide a positive voice for our brands. We show empathy for customers and render to resolve their problems by creating consistent customer touch-points, with our campaign always being to provide unique solutions for the customer .\r\nWhirlpool Corporation’s Transformation agendum\r\nWhirlpool is transforming into a completely customer-centred company where the customer lies in the core of every of our functions. This focus has arrived as direct consequence of our core\r\nIDEATE\r\nup of flipper elements:\r\ncompetency of customer excellence. It allows us to build Customer Loyalty. The transformation is made\r\nThe elements of the transformation hold the promise of making Whirlpool a growing company and thereby increasing value for our shareholders. The five elements are the basis for describing our strategy internally and guide the development of our plans and initiatives. Whirlpool has swiftly moved from being a World Class Manufacturer to a Wo rld Class Marketer using the brand-building framework. We are dedicated to creating unique branded solutions that build customer loyalty and achieve brand excellence.\r\n'