bajaj fans presentation
TRANSCRIPT
19/08/2008 Section C Group No. 7 1
By:
Asha NairSakshi BatraSonam JainUshaVarun Kalra
19/08/2008 Section C Group No. 7 2
CONTENTS
Fan Industry In IndiaFan Industry In India Journey of the Bajaj FansJourney of the Bajaj Fans Objectives of the Bajaj Objectives of the Bajaj
FansFans Marketing StrategiesMarketing Strategies Results AchievedResults Achieved ConclusionConclusion
19/08/2008 Section C Group No. 7 3
FAN INDUSTRY IN INDIAFACTS & FIGURES
NatureNature
Existing PlayersExisting Players
Market SegmentationMarket Segmentation
19/08/2008 Section C Group No. 7 4
NATURE
High Market Penetration ProductHigh Market Penetration Product
Matured Product With Stagnant Matured Product With Stagnant Growth (1990-2002)Growth (1990-2002)
Domestic Market Size Is 20 Million Domestic Market Size Is 20 Million UnitsUnits
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CONTINUED…..
Largest Selling Item In Brown Goods Largest Selling Item In Brown Goods CategoryCategory
Domestic Market ShareDomestic Market Share
Organised sector45%
Un-organised
sector55%
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EXISTING PLAYERS
CromptonCromptonOrientOrientPolarPolarKhaitanKhaitanUsha Usha BajajBajajOrtemOrtemPadminiPadmini
20%
20%
18%
7%
15%
5%
5%
10%
CROMPTON
USHA
ORTEM
ORIENT
KHAITAN
PADMINI
POLAR
BAJAJ
19/08/2008 Section C Group No. 7 7
MARKET SEGMENTATION
Ceiling fansCeiling fans
Table/Wall/Table/Wall/Pedestal (T/P/W) Pedestal (T/P/W) FansFans
Freshair FansFreshair Fans
CEILING FANS70%
TPW20%
FRESH AIR FANS10%
19/08/2008 Section C Group No. 7 8
JOURNEY OF BAJAJ FANS
1950s :1950s : Entered The Fans Business Entered The Fans Business
1960s :1960s : Acquired The Controlling Stake Acquired The Controlling Stake In In Matchwel Matchwel ElectricalsElectricals
1984 :1984 : Merged With Matchwel Merged With Matchwel Electricals Electricals
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CONTINUED…..
Presented Mainly In Premium Ceiling Fans
The Market Share In Organized Sector Was 7.6%
3.6% Share Was In The Total Market
19/08/2008 Section C Group No. 7 10
CONTINUED….
Very Less Expenditure On Very Less Expenditure On AdvertisementAdvertisement
Follow The Indirect Distribution Follow The Indirect Distribution ChannelChannel
COMPANY DISTRIBUTOR RETAILER CONSUMER
19/08/2008 Section C Group No. 7 11
OBJECTIVES
Becoming A Leading PlayerBecoming A Leading Player
Understand The Consumer’s Understand The Consumer’s NeedsNeeds
Pursue Profitable GrowthPursue Profitable Growth
19/08/2008 Section C Group No. 7 12
CONTINUED….
Launch New Categories/ProductsLaunch New Categories/Products
Introduce Competitive Product Introduce Competitive Product PricingPricing
Focus On Customer’s PreferenceFocus On Customer’s Preference
19/08/2008 Section C Group No. 7 13
MARKETING STRATEGY
Product StrategyProduct Strategy
Pricing StrategyPricing Strategy
Packaging & Promotion StrategyPackaging & Promotion Strategy
Distribution StrategyDistribution Strategy
People StrategyPeople Strategy
19/08/2008 Section C Group No. 7 14
PRODUCT STRATEGY
PRODUCTS
CEILING T/P/W FRESHAIR
19/08/2008 Section C Group No. 7 15
Launched High Quality Launched High Quality Decorative FansDecorative Fans
Launched Basic Products Range Launched Basic Products Range Like ‘BAHAR’ For Like ‘BAHAR’ For Sub-Economy SegmentSub-Economy Segment
CONTINUED…..
19/08/2008 Section C Group No. 7 16
CONTINUED….
Launched New Range Of T/P/W Launched New Range Of T/P/W Fans In Premium And Economy Fans In Premium And Economy SegmentsSegments
Launch Bajaj Midea & Launch Bajaj Midea &
Crown Range in Premium Crown Range in Premium
SegmentSegment
19/08/2008 Section C Group No. 7 17
CONTINUED…
Launched A New Range Of Launched A New Range Of Freshair Fans In Economy Freshair Fans In Economy & Sub-Economy Segments& Sub-Economy Segments
Increased RPM From 330 RPM Increased RPM From 330 RPM To 400 RPMTo 400 RPM
19/08/2008 Section C Group No. 7 18
PRICING STRATEGY
The Most Expensive Fan Costing The Most Expensive Fan Costing Rs.6900 was IntroducedRs.6900 was Introduced
Launched Differentiated Models Launched Differentiated Models Aimed At The Lower Price Aimed At The Lower Price SegmentSegment
19/08/2008 Section C Group No. 7 19
CONTINUED…..
Sub-Economy Fans Were Sub-Economy Fans Were Introduced At The Price Range Of Introduced At The Price Range Of Rs.800Rs.800
Gave Emphasis On The Bottom Gave Emphasis On The Bottom Of Pyramid Mass MarketOf Pyramid Mass Market
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PACKAGING & PROMOTION
New Theme Was Given To New Theme Was Given To CartonsCartons
Television As The Main MediaTelevision As The Main Media
More TVCs Were DevelopedMore TVCs Were Developed
19/08/2008 Section C Group No. 7 21
CONTINUED….
Increased Brand VisibilityIncreased Brand Visibility
Publicity Through CampaignsPublicity Through Campaigns
Attractive Pops, Posters Were Attractive Pops, Posters Were IntroducedIntroduced
19/08/2008 Section C Group No. 7 22
DISTRIBUTION STRATEGY
Mission Excel InitiativeMission Excel Initiative
Retail Performance Standard Retail Performance Standard (RPS)(RPS)
Dealer’s LoyaltyDealer’s Loyalty
19/08/2008 Section C Group No. 7 23
CONTINUED…..
Sub-Economy Fans’ Separate Sub-Economy Fans’ Separate NetworkNetwork
Change In Distribution NetworkChange In Distribution Network
COMPANY RETAILER CONSUMERCOMPANY RETAILER CONSUMER
19/08/2008 Section C Group No. 7 24
PEOPLE STRATEGY
Organizational Structure RevampedOrganizational Structure Revamped
New Set Of Job Description & KPI’s New Set Of Job Description & KPI’s ImplementedImplemented
Implemented Performance Appraisal Implemented Performance Appraisal SchemesSchemes
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RESULTS ACHIEVED
Distribution Network IncreasedDistribution Network Increased
Highest Increase In TOMA & UAAHighest Increase In TOMA & UAA
Tremendous Growth In Sales & Tremendous Growth In Sales & ProfitsProfits
Popularity Of Brand Without Popularity Of Brand Without Prohibitive ExpenditureProhibitive Expenditure
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PARTICULARS 1990-2000 2002-03
Distribution network
6000 retailers
10000 retailers
Sales 5730 Lacs 9350 lacs
Contribution Of Trade To Total Sales
55% 80%
19/08/2008 Section C Group No. 7 27
CONCLUSION
Firms Belief In Micro segmentation Firms Belief In Micro segmentation Strategy Achieved SuccessfullyStrategy Achieved Successfully
Fan Team Has Set An Example For Rest Fan Team Has Set An Example For Rest Of The Company To Follow & EmulateOf The Company To Follow & Emulate
Looking Towards The Future With Looking Towards The Future With Renewed Hope, Optimism & Renewed Hope, Optimism & ConfidenceConfidence