By:
Asha Nair
Sakshi Batra
Sonam Jain
Usha
Varun Kalra
19/08/2008 Section C Group No. 7 1
CONTENTS
Fan Industry In India
Journey of the Bajaj Fans
Objectives of the Bajaj
Fans
Marketing Strategies
Results Achieved
Conclusion
19/08/2008 Section C Group No. 7 2
FAN INDUSTRY IN INDIA
FACTS & FIGURES
Nature
Existing Players
Market Segmentation
19/08/2008 Section C Group No. 7 3
NATURE
High Market Penetration Product
Matured Product With Stagnant
Growth (1990-2002)
Domestic Market Size Is 20 Million
Units
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CONTINUED…..
Largest Selling Item In Brown Goods
Category
Organised
Un- sector
organised 45%
sector
55%
Domestic Market Share
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EXISTING PLAYERS
Crompton
Orient 5%
10%
20%
CROMPTON
Polar 5% USHA
ORTEM
Khaitan
ORIENT
15% KHAITAN
20% PADMINI
Usha 7%
POLAR
BAJAJ
Bajaj
18%
Ortem
Padmini
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MARKET SEGMENTATION
Ceiling fans
FRESH AIR
FANS
10%
TPW
Table/Wall/Pedes
20%
tal (T/P/W) Fans
CEILING FANS
70%
Freshair Fans
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JOURNEY OF BAJAJ FANS
1950s : Entered The Fans Business
1960s : Acquired The Controlling Stake In
Matchwel Electricals
1984 : Merged With Matchwel 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
Advertisement
Follow The Indirect Distribution
Channel
COMPANY DISTRIBUTOR RETAILER CONSUMER
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OBJECTIVES
Becoming A Leading Player
Understand The Consumer’s
Needs
Pursue Profitable Growth
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CONTINUED….
Launch New Categories/Products
Introduce Competitive Product
Pricing
Focus On Customer’s Preference
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MARKETING STRATEGY
Product Strategy
Pricing Strategy
Packaging & Promotion Strategy
Distribution Strategy
People Strategy
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PRODUCT STRATEGY
PRODUCTS
CEILING T/P/W FRESHAIR
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CONTINUED…..
Launched High Quality
Decorative Fans
Launched Basic Products Range
Like ‘BAHAR’ For
Sub-Economy Segment
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CONTINUED….
Launched New Range Of T/P/W
Fans In Premium And Economy
Segments
Launch Bajaj Midea &
Crown Range in Premium
Segment
19/08/2008 Section C Group No. 7 16
CONTINUED…
Launched A New Range Of
Freshair Fans In Economy
& Sub-Economy Segments
Increased RPM From 330 RPM
To 400 RPM
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PRICING STRATEGY
The Most Expensive Fan Costing
Rs.6900 was Introduced
Launched Differentiated Models
Aimed At The Lower Price
Segment
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CONTINUED…..
Sub-Economy Fans Were
Introduced At The Price Range Of
Rs.800
Gave Emphasis On The Bottom
Of Pyramid Mass Market
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PACKAGING & PROMOTION
New Theme Was Given To Cartons
Television As The Main Media
More TVCs Were Developed
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CONTINUED….
Increased Brand Visibility
Publicity Through Campaigns
Attractive Pops, Posters Were
Introduced
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DISTRIBUTION STRATEGY
Mission Excel Initiative
Retail Performance Standard
(RPS)
Dealer’s Loyalty
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CONTINUED…..
Sub-Economy Fans’ Separate
Network
Change In Distribution Network
COMPANY RETAILER CONSUMER
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PEOPLE STRATEGY
Organizational Structure Revamped
New Set Of Job Description & KPI’s
Implemented
Implemented Performance Appraisal
Schemes
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RESULTS ACHIEVED
Distribution Network Increased
Highest Increase In TOMA & UAA
Tremendous Growth In Sales & Profits
Popularity Of Brand Without Prohibitive
Expenditure
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PARTICULARS 1990-2000 2002-03
Distribution 6000 10000
network retailers retailers
Sales 5730 Lacs 9350 lacs
Contribution 55% 80%
Of Trade To
Total Sales
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CONCLUSION
Firms Belief In Micro segmentation Strategy
Achieved Successfully
Fan Team Has Set An Example For Rest Of
The Company To Follow & Emulate
Looking Towards The Future With Renewed
Hope, Optimism & Confidence
19/08/2008 Section C Group No. 7 27
