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

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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%

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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

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CONTINUED….

Very Less Expenditure On Very Less Expenditure On AdvertisementAdvertisement

Follow The Indirect Distribution Follow The Indirect Distribution ChannelChannel

COMPANY DISTRIBUTOR RETAILER CONSUMER

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OBJECTIVES

Becoming A Leading PlayerBecoming A Leading Player

Understand The Consumer’s Understand The Consumer’s NeedsNeeds

Pursue Profitable GrowthPursue Profitable Growth

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CONTINUED….

Launch New Categories/ProductsLaunch New Categories/Products

Introduce Competitive Product Introduce Competitive Product PricingPricing

Focus On Customer’s PreferenceFocus On Customer’s Preference

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MARKETING STRATEGY

Product StrategyProduct Strategy

Pricing StrategyPricing Strategy

Packaging & Promotion StrategyPackaging & Promotion Strategy

Distribution StrategyDistribution Strategy

People StrategyPeople Strategy

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PRODUCT STRATEGY

PRODUCTS

CEILING T/P/W FRESHAIR

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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…..

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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

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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

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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

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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

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CONTINUED….

Increased Brand VisibilityIncreased Brand Visibility

Publicity Through CampaignsPublicity Through Campaigns

Attractive Pops, Posters Were Attractive Pops, Posters Were IntroducedIntroduced

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DISTRIBUTION STRATEGY

Mission Excel InitiativeMission Excel Initiative

Retail Performance Standard Retail Performance Standard (RPS)(RPS)

Dealer’s LoyaltyDealer’s Loyalty

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CONTINUED…..

Sub-Economy Fans’ Separate Sub-Economy Fans’ Separate NetworkNetwork

Change In Distribution NetworkChange In Distribution Network

COMPANY RETAILER CONSUMERCOMPANY RETAILER CONSUMER

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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%

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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