Marketing Microwave Ovens:
A New Market Segment (India)
Introduction
Microwave as a product has become a high growth segment in Indian market only recently. When it
was introduced in the market, initial launch was not very successful; it was believed that microwave
didn’t suit Indian way of cooking. But the recent changes made by manufactures) has led to increased
acceptance. Today manufactures have incorporated additional features and customized to accommodate
Indian cooking styles. Also changing lifestyles and family structure, microwave is finding more and
more acceptance amongst Indians.
Some Analysts say Rural India is the real emerging market. With rising rural incomes, new roads,
better education, televisions and cell phones, India's sleepy countryside of 740 million people is ready
for takeoff. Several favorable factors are falling into place now. It's going to catch everybody by
surprise.
Others contradict by saying that it should focus on (target segment) top cities in India like Mumbai,
Delhi or Kerala where education level is high, people are busy with high income as they comprise nearly
70 percent of the market with Delhi and Mumbai (Bombay) recording the highest sales. In our report we
will develop “market mix” to market White Appliance’s microwave oven in India and analyze the
Environmental factors and its challenges, marketing mix as well as market segmentation and see which
market suits more.
Case study Questions:
Briefly talk about the demographic aspect, and discuss the environmental scanning
along with the 4ps
If the company objective is to increase total market share by 5% and dominate in suburban
areas by end of 2012, what marketing strategies could be implemented.
Case study Answers:
Briefly talk about the demographic aspect, and discuss the environmental scanning
along with the 4ps
Cultural:
Values, customs and lifestyle
1. Indian Americans, who return to India, will return with their living habit of USA and they
regularly use the microwave oven for different purposes. They take American spending
habits and expectations. So, they indirectly do promote use of microwave.
2. Talking about values and customs some Indians believe that using microwave is not safe due
to harmful radiation and high electricity consumption.
3. Also, Dietary habit culture of Indian population is not based in instant microwavable food
like the west
4. Microwave oven is considered a western product which may not be accepted by Indian
conservative family.
5. Lack of education in some Indian states also is a challenge. In India consumers prefer to
avoid such technology which requires instructions and complications
, 6. Another issue in some states in India is the availability of electricity. In many rural and city
areas, the availability of electricity is limited and accessible for a particular time. In such
scenarios using microwaves become unsuitable.
7. Non availability of proper microwave cavity design like associated utensils, containers,
wrapping and covering is also an issue. They may find it expensive and opt not to use at all.
Indian v/s Western Food
1. The Indian food is usually complicated and consist of a lot of flavors. It goes through a certain
process of spices and an ingredient which is put to get the required flavor. This is a contrast to
Western food.
2. When talking about microwave appliance, consumers go doubtful as it goes against their way of
how food is usually made. They usually cook fresh food on a daily basis and opt to have fresh
meals all the time. Whereas in West, people have limited time and want to cook food as fast as
possible.
3. Also, many Indians perceive that microwave cooking is used for heating purposes only. Whereas
in West, many food items depend on microwave such as cakes, baked chickens, roasting
vegetables.
4. Indians prefer making food in a traditional way. Majority of Indian dishes are made in pans,
pots, pressure cooker where heat comes from the bottom. But in west, this differs as food gets
heated food from top to down in Microwave.
Competition: There are companies in India which are competing highly such as LG Electronics,
Samsung along with Godrej Appliance, Whirlpool and Electrolux. They are making effort to grow their
market share but in different segments with different reasons.
1. Some believe that demand can be expanded with the right product at the right price to the right
consumer. That means targeting specific consumer who is well aware of the product and its
functions. As an example, LG considered targeting middle class of Indian culture. Focusing on
educated couples, small family, with affordable income.
2. Yet others contradict by saying that an “idea” should sell to sell the product. That means
convincing Indians to change eating habits slightly to increase sales of microwave ovens. E.g.,
Instead of frying items, they should bake in microwave.
3. Some consider that once consumers gain knowledge on how to use it and making microwave use
simple, it will help create demand. E.g., Godrej made the process of using Microwave easier
(less complicated buttons)
Economic:
India is part of BRIC countries (emerging countries) where middle class layer is booming. This layer is
accommodating around 561 million people which considered a potential and promising market.
Educated couples are forming new families in India and they are adopting new lifestyle. Income per such
families is improved as both couples are working.
Additional to that, the repatriating Indians who came back from foreign countries with high standard of
living and education will seek such products in India and maintain similar lifestyle of foreign countries.
A New Market Segment (India)
Introduction
Microwave as a product has become a high growth segment in Indian market only recently. When it
was introduced in the market, initial launch was not very successful; it was believed that microwave
didn’t suit Indian way of cooking. But the recent changes made by manufactures) has led to increased
acceptance. Today manufactures have incorporated additional features and customized to accommodate
Indian cooking styles. Also changing lifestyles and family structure, microwave is finding more and
more acceptance amongst Indians.
Some Analysts say Rural India is the real emerging market. With rising rural incomes, new roads,
better education, televisions and cell phones, India's sleepy countryside of 740 million people is ready
for takeoff. Several favorable factors are falling into place now. It's going to catch everybody by
surprise.
Others contradict by saying that it should focus on (target segment) top cities in India like Mumbai,
Delhi or Kerala where education level is high, people are busy with high income as they comprise nearly
70 percent of the market with Delhi and Mumbai (Bombay) recording the highest sales. In our report we
will develop “market mix” to market White Appliance’s microwave oven in India and analyze the
Environmental factors and its challenges, marketing mix as well as market segmentation and see which
market suits more.
Case study Questions:
Briefly talk about the demographic aspect, and discuss the environmental scanning
along with the 4ps
If the company objective is to increase total market share by 5% and dominate in suburban
areas by end of 2012, what marketing strategies could be implemented.
Case study Answers:
Briefly talk about the demographic aspect, and discuss the environmental scanning
along with the 4ps
Cultural:
Values, customs and lifestyle
1. Indian Americans, who return to India, will return with their living habit of USA and they
regularly use the microwave oven for different purposes. They take American spending
habits and expectations. So, they indirectly do promote use of microwave.
2. Talking about values and customs some Indians believe that using microwave is not safe due
to harmful radiation and high electricity consumption.
3. Also, Dietary habit culture of Indian population is not based in instant microwavable food
like the west
4. Microwave oven is considered a western product which may not be accepted by Indian
conservative family.
5. Lack of education in some Indian states also is a challenge. In India consumers prefer to
avoid such technology which requires instructions and complications
, 6. Another issue in some states in India is the availability of electricity. In many rural and city
areas, the availability of electricity is limited and accessible for a particular time. In such
scenarios using microwaves become unsuitable.
7. Non availability of proper microwave cavity design like associated utensils, containers,
wrapping and covering is also an issue. They may find it expensive and opt not to use at all.
Indian v/s Western Food
1. The Indian food is usually complicated and consist of a lot of flavors. It goes through a certain
process of spices and an ingredient which is put to get the required flavor. This is a contrast to
Western food.
2. When talking about microwave appliance, consumers go doubtful as it goes against their way of
how food is usually made. They usually cook fresh food on a daily basis and opt to have fresh
meals all the time. Whereas in West, people have limited time and want to cook food as fast as
possible.
3. Also, many Indians perceive that microwave cooking is used for heating purposes only. Whereas
in West, many food items depend on microwave such as cakes, baked chickens, roasting
vegetables.
4. Indians prefer making food in a traditional way. Majority of Indian dishes are made in pans,
pots, pressure cooker where heat comes from the bottom. But in west, this differs as food gets
heated food from top to down in Microwave.
Competition: There are companies in India which are competing highly such as LG Electronics,
Samsung along with Godrej Appliance, Whirlpool and Electrolux. They are making effort to grow their
market share but in different segments with different reasons.
1. Some believe that demand can be expanded with the right product at the right price to the right
consumer. That means targeting specific consumer who is well aware of the product and its
functions. As an example, LG considered targeting middle class of Indian culture. Focusing on
educated couples, small family, with affordable income.
2. Yet others contradict by saying that an “idea” should sell to sell the product. That means
convincing Indians to change eating habits slightly to increase sales of microwave ovens. E.g.,
Instead of frying items, they should bake in microwave.
3. Some consider that once consumers gain knowledge on how to use it and making microwave use
simple, it will help create demand. E.g., Godrej made the process of using Microwave easier
(less complicated buttons)
Economic:
India is part of BRIC countries (emerging countries) where middle class layer is booming. This layer is
accommodating around 561 million people which considered a potential and promising market.
Educated couples are forming new families in India and they are adopting new lifestyle. Income per such
families is improved as both couples are working.
Additional to that, the repatriating Indians who came back from foreign countries with high standard of
living and education will seek such products in India and maintain similar lifestyle of foreign countries.
