CB Project Report GR 10
CB Project Report GR 10
Product: Refrigerators
Product Specifications: Double Door
Brand 1: Godrej
Brand 2: Whirlpool
Group 10
Ankita Singhal - 359
Garv Manchanda - 192
Amit Kumar - 008
Kalyani P - 140
Mayank Khandelwal - 031
Adji Coura Gningue- IE/001
Till the 1980s, players like Godrej, Kelvinator, Allwyn and Voltas
controlled almost 90% of the market. Earlier, the white goods sector
was categorized as a luxury goods industry and was subject to
oppressive taxation and licensing. The situation changed after the
liberalization of the Indian economy in the early 1990s. The
government removed all restrictions, and now there is no restriction
on foreign investment, and licenses are no longer required. Postliberalization, a number of foreign companies entered the market
and many domestic players also diversified into refrigerators. BPL
and Videocon who already had a presence in the consumer
electronics market, leveraged their strengths to enter the durables
sector.
According to Refrigerator Market Forecast to 2015, a recent report
by RNCOS, the refrigerator market is estimated to grow at a CAGR of
25.7% during 2012-2015.
Indian refrigerator market is valued at INR 4,000 cr
Refrigerators hold only 16% of consumer durable market that
is valued at around INR 20,000- 25,000 cr in India
The refrigerator market has been growing at a rate of about
15% per year, while the consumer durables industry as a
whole has grown at almost 8%.
Refrigerators constitute the second largest product segment
within the Indian consumer durables sector in India, with an
estimated annual turnover of INR 39 bn during FY2005 with an
estimated sale of 4.1m units
I. Product Category
Due to increasing purchasing power parity, favorable weather
conditions, growing Indian economy, me-too attitude of Indian
consumers and other factors refrigerators are strengthening their
foothold in Indian market. Buyers make an informed decision as
product like refrigerators are very high involvement product. To
understand the buying behavior of refrigerators in India let us
understand the needs, usage, benefits and motivation behind
purchasing this product.
Motivation
Motivation can be positive as well as negative. Impact of motivating
factors may be long term as well as short term.
Need is the major motivating factor behind buying refrigerators it
can be safety, social or esteem. For upper class its more of safety
than social or esteem.
As discussed in the earlier section, these benefits play as positive
motivations for buying this product. Apart from these factors
reducing prices and new and innovative technologies are also
contributing towards positive motivation. There could be negative
motivating factors as well as discussed below:
- Polluted air may lead to perilous respiratory diseases
- Foul smell and suffocating environment may lead to strain in
the relations
- Inferior image in the society
Refrigerator is a high involvement product and before making a
purchase of high end product consumers carryout a thorough
research. They keep needs, benefits and price points in
consideration.
The ad starts with the father of two kids is trying to cook while also
singing (out of tune) a popular Bollywood song. It shows him
enjoying himself while cooking. The scene moves to the two kids
and the dog who find it unbearable and a fresh flower dying due to
the noise and the glass on the photo frame cracking. It then
switches to show fresh vegetables in the refrigerator. While his wife
walks into the room to hear the awful singing and switching on the
radio on the fridge to play the actual song and thy enjoy their time
cooking and dancing to the tune. A background voice then speaks
about the offering of inbuilt radio and music player. They show the
refrigerator from the angle showing the radio and music, focusing on
the two components and then the picture of the whole fridge with
the brand and power rating. It ends with Godrej logo on the
screen.
On observing the TV Commercials, it is quite clear that Godrej is
aiming at the Adults who are planning to start a family. It plays on
their basic needs. The first ad, Godrej Muzi Play is creating a
differentiation by showcasing the new age feature of a refrigerator,
which comes with an inbuilt radio and music player.
Insight:
New age adults are used to multitasking and try to enjoy everything
they do. Also a lot of home chefs also try to watch TV
simultaneously. In order to provide entertainment, Godrej comes up
with the inbuilt radio and MP3 player.
Elements in the advertisement:
Interpretation elements:
Classy home interior with family in clean white clothes Shows a
well off household
Husband cooking Modern day family with open-minded culture
Single click switching on of music Ease of access
The blooming flower on the door Shows fresh and stylish design
Attention Elements:
Bright colored vegetables and green vegetables with dew on them
Freshness and cooling efficiency
White air within the fridge Showing the cooling effect
[These last only a few seconds, since the focus is on the
differentiating feature]
The speakers and the MP3 switches at the top of the fridge
Denoting classy design and unique feature
Affective Elements:
Tasting the food while cooking Passion for cooking and not as a
duty
Dance and Music Enjoyment and Fun while cooking
Cognitive Elements:
Fresh vegetables Effective functionality of refrigerator
One click music Easy access of MP3/ radio feature
TV Commercial 2:
Godrej Edge Pro TVC: https://www.youtube.com/watch?
v=7O0hKv0AelI
Brief:
The ad starts with a visual of a male dressed casually gobbling down
a cake and a voice of his wife in the background asking about
passport, tickets and keys ( signifying that they are about to leave
for somewhere) which he responds with neglect while focusing on
the eating. The wife then comes in and gets surprised seeing her
husband like that, eating in a hurry and asks him what is he doing.
The husband gives an excuse that he is finishing the food as the
refrigerator has to be powered off to save the electricity . The wife
takes the plate from his hand and puts in back in the refrigerator
and switches it on and asks him to hurry to catch the flight on time.
Then the performance features of the refrigerator are highlighted;
extra efficiency , extra space, extra fast cooling and highlights it
being budget friendly also.
Insight:
The insight used to make the ad is that modern day couples in early
years of their marriage love to travel. However, since they are
starting a family, budget and savings are always on their mind. This
need is served by the greater efficiency in the refrigerator.
Magazine Ads:
Newspaper Advertisements:
WHIRLPOOL
TV Commercial 1:
3 Door Protton World Series: https://www.youtube.com/watch?
v=JKBAnc6DQJk
Brief:
The ad starts with a male standing in the kitchen yawning and
having a coffee in his glass. The focus then shifts to the female in
the kitchen standing in front of the refrigerator with an apple and
knocks it signifying its freshness. She then throws the apple to the
guy and he knocks it too again signifying the sound as being fresh.
The focus then shifts to the refrigerator. The guy opens it and looks
at the female. She signs at the bottom compartment of the
refrigerator and he opens the separate bottom compartment and
finds the vegetables and checks for the crisp sound. Then the focus
shifts to the cutting of vegetables and the crisp sound of freshness
is highlighted. Then the features of the refrigerator are being shown
through visuals and a background audio which is freshness using a
6th sense technology.
Insight:
The ad focuses solely on the main function of a refrigerator :
Effective cooling for fresh vegetables. They play with the feel of a
common man that any vegetable or fruit is considered fresh if it
makes a tiny sound when broken.
Elements in the advertisement:
Affective elements:
The fresh music and light gives a fresh feeling. The smile on the lazy
mans face shows that even without speaking he is refreshed by
listening to the sound of the fresh vegetables breaking.
Cognitive Elements:
The voice over at the end starts with the Whirlpool brand, showing
each additional feature of Fresh Keeper, 6th Sense Active Fresh
with cold air and blue lights, again indicating freshness.
Interpretation Elements:
The ad shows the man checking the refrigerator but not finding any
fruits but a lot of other items and wonders where the fruits are. The
woman then points him to the lower drawer(a special feature of the
product). This also denotes the additional space present that can
accommodate such large amounts of other food items
Attention Elements:
Most of the attentive elements in this ad are showcasing the
freshness of vegetables and fruits, cabbage, lemon, watermelon and
many more together forming a plethora of colors which grabs
attention.
TV Commercial 2:
Whirlpool Neo iChill - https://www.youtube.com/watch?
v=uXdFw1R__k4
Brief:
The ad starts with a male entering his house from work and finds a
written message on the refrigerator door. He opens the refrigerator
and finds different messages on different compartments in the
refrigerator. He then opens the freezer door and gets and idea and
makes something. The focus then shifts to the female entering the
house and she also finds a message on the refrigerator door left by
the male. She opens the freezer and finds a dessert and then the
male appears. Then the features of the refrigerator are being shown
through visuals and a background audio highlighting the neo chill
deep freeze technology and shows that it chills 50% faster. Then at
the end the couple is shown to be enjoying the dessert
Insight:
The ad is designed to attract new couples who might have different
work timings but still keep the romance going. Most couples love
surprises from one another and this just uses that element to show
special moments thus making the ad memorable.
Elements in the advertisement:
Attention Elements:
A man entering trying to loosen his tie signifies a long tiring day of
work. A tiny chit on the refrigerator shows a romantic way of
communication between couples.
This also makes us notice the refrigerator which has the whirlpool
brand logo on it since the chit is attached close to the logo.
Subliminal Messaging:
The music in the background speaks of how a man comes home but
finds himself alone and hes thinking of his wife and the special
feeling a partner feels when his/her other half reads their mind and
interprets moods. This brings romance in the air for the viewers.
Interpretation elements:
The man opens the refrigerator to find various compartments
labeled differently based on moods. This tries to show the viewer
that one can classify products and keep them in their places rather
than mix everything up.
Affective Elements:
The mood that the ad goes for is romance when they try to surprise
one another. This is catered to by the music, the chit which says
Missing me mood, etc.
Cognitive Elements:
Post the surprise as the couple finds each others company, a
background voice speaks of the new chilling feature, given that the
ad tries to promote the icecream making and holding capabilities of
the freezer. It also plays with the pun the end that Its a whole new
way to chill.
Magazine Ads:
The magazine ads for the two ranges garb attention in different
ways.
Attention Elements:
The Protton Series shows off with a trophy and an certificate/ award,
thereby gaining credibility for the feature. The product is simply
shown to be a basic refrigerator with 3 doors.
The second ad, grabs attention with a variety of colors A bright
Red refrigerator, with red berries, green kiwi, fresh fruits with its
juice surrounding it and the Blue flow of features signifying cold air
coming from the refrigerator.
Cognitive Elements:
The first ad speaks of its design capability and showing that they
focus on effectiveness as well as efficiency.
The second ad shows a multitude of compartments again filled with
fresh fruits, brightly coloured, speaking of the functional benefits of
the product.
Newspaper Ads:
Conclusion:
As we looked at both the brands we see that Godrej as a brand
stands for new features and differentiation in the product features,
whereas Whirlpool focuses solely on the main function of cooling
and stresses on efficiency rather than additional offerings.
The advertisements as well show a difference. The Godrej
advertisements show a dominance of Cognitive elements whereas
the Whirlpool advertisements focus on affective elements and on
triggering a particular feeling in the viewer.
SEC A
SEC B
Kelvinator
Samsung
Whirlpool
Godrej
SEC A
SEC B
In this case, we notice that the two households have low purchase
involvement because they dont really seek for information. Both
have a limited decision making with a limited external search, they
didnt really put an effort to have more information and they didnt
choose the brand habitually purchased. For the household B,
Samsung was an inept set just because the housewife was really
disappointed with the previous one. So, when they went to the shop
in Calicut, they focused on other brands like Godrej guided by her
son-in-law who is working in Samsung Electronic Shop. For the
household A, they heard about the quality of Whirlpool and at the
shop, they put a special attention on it. Here, they were clearly
driven by a brand equity. Both of them use their memory with their
SEC B
Do you hesitate
with other brands?
with LG
What motivates
your final choice?
Whirlpool is a brand
of quality
Illyam electronic
shop in Calicut
SEC B
Discount Shop at
Mahe
SEC A
SEC B
Satisfied
Satisfied
3.5/5
4.5/5
Satisfaction is the same word used for both. They dont regret their
decision. But when we asked them if they would purchase the same
brand, none of them respond surely to the question asked. Maybe,
next time, they would change for another brand.
To conclude, it was really interesting to see directly how they work
their decision process. We also ask them who made the final
decision and if other members have an influence in the purchase.
We notice that, generally, its a male-dominant decision making
except for the household B which was the mother (financed by the
father obviously) who made the final decision. These interviews
enable us to highlight the consumer decision making process and
now, its importance for marketers strategy.
Key Insights
Consumers got involved in the purchasing process only when
there was an active problem
Lifespan of refrigerators in household is very long (approx. 15
years based on our sample of 8 household).
Most households do not actively search for information even
when they have an active problem at hand. Many decide
based on brand name. Thus brands should communicate
through mass sponsorships (sporting mega event, famous
tv shows) to reinforce the quality factor
Shopkeepers are major influencers. Thus Whirlpool or Godrej
could incentivize the agencies with higher margin or sales
targets
MANAGERIAL IMPLICATIONS: Godrej
Product category Characteristics:
High Efficiency Compressor
External Thermostat Control
Longetivity of the product.
Extra space, Extra efficiency
Brand Communication
The ad starts with the father of two kids is trying to cook while
also singing (out of tune) a popular Bollywood song.
2. Internal Factors
Brand Communication:
The ad is designed to attract new couples who might have
different work timings but still keep the romance going
The ad starts with a male entering his house from work and
finds a written message on the refrigerator door
The features of the refrigerator are being shown through
visuals and a background audio highlighting the neo chill deep
freeze technology and shows that it chills 50% faster
The ad is designed to attract new couples who might have
different work timings but still keep the romance going
The ad tries to promote the ice-cream making and holding
capabilities of the freezer. It also plays with the pun the end
that Its a whole new way to chill.
Gaps in communication and perception
Focus mostly on young couples.
Though refrigerator has become a necessity household item
,the Ad still focuses on wealthy household only.
The customers pay extra attention to the quality of after sales
service which is not highlighted effectively in the given
Ad.Aspects of Consumer Behavior and Its Managerial
Significance:Strong brand image owing to better performance
has helped to improve customer footfalls
2. External Factors
Perception: Customer perceives it as a efficient and energy
saving product.