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    Presentation of Strategic Audit: Fan Industry'

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    Vicky Gupta
    This strategic audit presentation summarizes the Indian fan industry. It identifies major players like Crompton, Orient, and Usha that control 60% of the market. While the industry has seen growth, 50% remains unorganized. The presentation analyzes Crompton's marketing strategy, distribution channels, SWOT analysis, and recommends decreasing dealership costs and increasing rural focus and advertising to strengthen position.

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    Presentation of Strategic Audit: Fan Industry'

    Uploaded by

    Vicky Gupta
    67 views22 pages
    This strategic audit presentation summarizes the Indian fan industry. It identifies major players like Crompton, Orient, and Usha that control 60% of the market. While the industry has seen growth, 50% remains unorganized. The presentation analyzes Crompton's marketing strategy, distribution channels, SWOT analysis, and recommends decreasing dealership costs and increasing rural focus and advertising to strengthen position.

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    Presentation of Strategic Audit

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    This strategic audit presentation summarizes the Indian fan industry. It identifies major players like Crompton, Orient, and Usha that control 60% of the market. While the industry has seen growth, 50% remains unorganized. The presentation analyzes Crompton's marketing strategy, distribution channels, SWOT analysis, and recommends decreasing dealership costs and increasing rural focus and advertising to strengthen position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    67 views22 pages

    Presentation of Strategic Audit: Fan Industry'

    Uploaded by

    Vicky Gupta
    This strategic audit presentation summarizes the Indian fan industry. It identifies major players like Crompton, Orient, and Usha that control 60% of the market. While the industry has seen growth, 50% remains unorganized. The presentation analyzes Crompton's marketing strategy, distribution channels, SWOT analysis, and recommends decreasing dealership costs and increasing rural focus and advertising to strengthen position.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 22

    PRESENTATION OF STRATEGIC AUDIT

    ‘FAN INDUSTRY’

    PRESENTED BY:
    NISHANT ANAND (87)
    VICKY GUPTA (114)
    MONA BHAGAT (84)
    Fan Industry
     In a hot and humid country such as India, one of the
    most cost-effective gadgets to increase personal and
    collective comfort is fan.
     Its adaptability and universal applicability has
    created a worldwide market that cuts across income
    lines and uses.
     The traditional fan, an essential commodity, has
    experienced a whirlwind of change.
     From being a mundane object designed to artificially
    agitate air, it has now whirred its way into the
    modern, demanding world of style and statement.
    Fan Industry

     Fans are one of the largest domestic


    appliances industry in India.
     Over the years a number of players have
    entered the fan industry and stayed
     However 50% of the market is still
    unorganized.
     Such characteristic has made the industry
    quite unique and an interesting area of study.
    EXISTING PLAYERS

    Crompton
    Orient CROMPTON
    5% 10%
    Polar 5%
    20% USHA
    ORTEM

    Khaitan ORIENT
    15% KHAITAN
    Usha 20%
    PADMINI

    7% POLAR
    Bajaj 18% BAJAJ

    Ortem
    Padmini

    4
    Crompton Greaves-Company Profile

     Crompton Greaves (CG) is part of the US$ 4


    bn Avantha Group, a conglomerate with
    global footprint, operating in over 10
    countries
     India operations were established in 1937
     The company has a large customer base,
    which includes State Electricity Boards,
    Government bodies and large companies in
    private and public sectors.
    Crompton Greaves-Achievements

     The Crompton Greaves fans division, has progressively


    moved from being awarded Silver in 2005 to Gold
    Runner-up in 2006 to Platinum – the highest award – in
    2007 in the India Manufacturing Excellence Award in
    Large Engineering Enterprises
     It developed the first four-blade fan with an underlight
    and it became the first company in India to
    manufacture one million units under a single roof.
     On the technology front Crompton Greaves developed
    the high speed low voltage (HSLV) fan motor to beat
    current fluctuations
    Crompton Greaves-Sales Promotion

     To ensure that the customer is effectively updated on


    new product developments, the company has identified
    the sales counter as its first point of contact.
     Crompton provides product information leaflets and
    catalogues at all locations, besides also dynamically
    displaying its range banners.
     The brand advertises regularly in the print and electronic
    media at the national as well as regional levels.
     Thus, the sports section of national dailies carried
    sustained advertising during the first round of the IPL
    cricket series.
    Marketing strategy

     Profitability objective : To achieve a 30% return


    on capital employed within a year of launching
    the product.
     Market share objectives : To gain 35% of the
    market share.
     Promotional objective : To promote product to
    fullest through all types of mass communication.
     Objective for survival: To survive the current
    recession.
    Product Strategy

    PRODUCTS

    INDUSTRIAL
    CEILING T/P/W
    FAN
    Pricing strategy

     The Most Expensive Fan was Introduced


    under light fan category “NEBULA”.
     Launched differentiated models aimed at the
    lower and middle price segment
     Sub-Economy Fans Were Introduced At The
    Price Range Of Rs.950.
     Gave more emphasis on middle and higher
    income group.
    Distribution Channel

    COMPANY - DEALER - RETAILER - CONSUMER

    COMPANY - DEALER - CONSUMER


    PEST ANALYSIS
    POLITICAL:

     Tax-policy, and trade and tariff controls


     Minimum wage and overtime
     Industrial safety regulation
     Product labelling requirements
     Environmental and consumer-protection legislation
     After China, India was second in the world in terms of fan
    manufacturing but once China adopts WTO rules, competition
    will be come down
     In the first four months of this fiscal, exports had shot up
    following large orders from Iraq.
     Orders from Wal-Mart and other USA-based buyers also
    helped growth.
    ECONOMICS

    • Seasonality/weather issues
    • Home economic situation
    • Labor costs
    • Job growth/unemployment
    • Impact of globalization
     The existence of a strong unorganised sector is the greatest
    threat to the Indian fan industry as such units accounted for
    55-60 per cent of the market
     High input costs to high incidence of value-added tax (VAT)
    and excise duty
     Volatility of key raw material prices like copper, aluminium and
    steel
    SOCIO-CULTURAL

     Population growth rate


     Brand, company, technology image
     Advertising and publicity- Living standards
     Housing trends
    TECHNOLOGICAL

     Competitive technology development


     Research funding
     Replacement technology/solutions
     Manufacturing capacity
    Porter’s Five Forces Model
    Rivalry among
    Competing
    Potential Entry Firms
    of New
    Competitors

    Bargaining
    Power of
    Consumers

    Potential
    Development of
    Substitute Products

    Bargaining
    Power of
    Suppliers:
    Rivalry among Competing Firms:
     There are major five players in industry.
     Only three players dominate the industry
    with 60% share
    Potential Entry of New Competitors:
     New competition is discouraged due to high
    initial dealership amount.
     Unorganised sector holds more than 50% of
    total industry
    Potential Development of Substitute Products
     New technological enhanced AC’s
     Portable affordable coolers
    Bargaining Power of Suppliers
     Great bargaining power as there are large
    number of players
    Bargaining Power of Consumers
     high bargaining power as lot of choice available
    due to players of both organized as well as
    unorganized sector.
    SWOT ANALYSIS-CROMPTON

    STRENGTH: WEAKNESS:
    super brand status Crompton fans are the costliest ones
    market leader with twenty percent Less number of dealer
    share Initial amount for dealership is very high
    scores over others on quality aspect. Tax related problem in some state
    great brand loyalty CROMPTON
    OPPORTUNITIES:
    THREATS:
    growing unorganized sector excellent brand recall
    Technological changes good potential for tapping a large
    percentage of unorganized sectors
    high input costs
    boom in the real estate sector
    volatility of key raw material prices
    SWOT ANALYSIS-USHA FANS

    STRENGTH: WEAKNESS:
    market segmentation Inferior quality
    reduced its risk small staff
    loyalty to their high-end customers

    THREATS: OPPORTUNITIES:
    growing unorganized sector good potential for tapping a large
    Technological changes percentage of unorganized sectors
    high input costs boom in the real estate sector
    large no of competitors
    RECOMMENDATIONS

     CROMPTON S SHOULD DECREASE THE


    INITIAL COST OF DEALERSHIP
     COMPANY SHOULD FOCUS ON RURAL
    AREA
     INVEST MORE IN ADVERTISING
     INCREASE THE DEALER NETWORK
     FOCUS ON THE AFTER SALES SERVICE

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