Crompton
greaves
Executive Summary
The purpose of this marketing plan was
to establish Crompton & Greaves in South Africa with the help of thorough
analysis of all the segments, by determining the buyer behaviour and the potential
target market.
With an
impressive global footprint Crompton Greaves is part of the US $3 billion
Avantha Group. The company has a head quarter in Mumbai, India.
Crompton Greaves is India's largest private sector enterprise in the business
of electrical engineering with a turnover in excess of Rs.1700 crores. The Consumer
Products Business Group is engaged in the business of Fans, Light Sources,
water heaters, Luminaries and Pumps. South Africa is a
potential market where in Crompton can establish itself successfully.
Market
segmentation will help Crompton to know the group of customers who share a
similar set of needs and wants. Its Four main regions of
commerce are Western
Cape (Cape Town), Eastern Cape(Port Elizabeth and East London), KwaZulu-Natal
(Durban and Pietermaritzburg) and Gauteng (Pretoria, the Witwatersrand, i.e. Johannesburg and the areas to the east
and west of it, and Vereeniging). The population growth rate for South Africa is -0.501% (2008
est.) (World growth rate at 2006 is 1.14%). The country also saw migration of
-0.08 migrant(s)/1,000 populations. The median age of the country is total:
24.5 years male: 23.8 years female: 25.3 years (2008 est.). South Africans are fun-loving and laid back.
People choose between a number of massive shopping malls complete with cinema
complexes, excellent restaurants, delightful theme parks and a wonderful
variety of natural and historical attractions.
Crompton can sell its room heaters as
well as water heaters in the winter.
Further in occasions like Christmas it can sell its colourful decorative
bulbs.
Crompton will offer its most innovative and premium
products to the higher income people while it may offer its standard products
to middle income group. Crompton can effectively market its product when it
understands the buying decision making process.
The primary target market of Crompton would be the
middle income and higher income people in the four main regions of commerce which are Western Cape (Cape Town),
Eastern Cape (Port Elizabeth and East London), KwaZulu-Natal (Durban and
Pietermaritzburg) and Gauteng (Pretoria, the Witwatersrand, i.e. Johannesburg and the areas to the east and
west of it, and Vereeniging). The secondary market of Crompton
would be the high income industrial sector in these four main regions. Operating within these four regions of
commerce Crompton will be able to serve a huge customer base . Crompton will use
positioning as their communication tool. Crompton can reach the target
customers easily only when their brand name reaches the target customers mind.
Since Crompton is new in South Africa it will invest more in marketing so that
it can create memorable brand image with the help of effective product
positioning.
Crompton will attempt to generate a positive response
in the target market by blending these four marketing mix variables and it will
continuously strive for customer satisfaction and
delight. Crompton has divided its products into consumer goods and
industrial goods. Crompton will initially focus on maximizing their
market share. This can be done by charging a low price to the market this is
also known as market penetration pricing. Since
people will evaluate Crompton products & will decide to buy it before they
go to a store therefore the pull strategy is appropriate for this company. Crompton will sell its product through one level
channel containing one retailer or through a two level channel which will
contain two intermediaries.
Crompton’s advertising content will emphasise on the
creation of a memorable brand image in South Africa with the help of effective
product positioning. It will advertise through two main sources radio and
television.
Crompton will enter the South African market with
another leading appliance company called Defy which is a 60 years old company.
With this entry it aims to sell 1400 non decorative models and 1000 decorative
models starting from April 1st 2009.
Table of contents
Topics Page No.
1.
Introduction
7
2.
Market Segmentation 8
2.1 Geographic segmentation 8
2.2 Demographic segmentation
9
2.3 Psychographic segmentation 11
2.4 Behavioural segmentation 13
3. Buying decision process 14
4. Target market 17
5. Product positioning
19
6. Marketing objectives
21
7. Marketing strategies
21
7.1 Product mix
22
7.2 Price mix
26
7.3 Place mix
27
7.4 Promotion mix
29
8. Entry mode
32
9. Implementation plan 33
10. Measurement tools
34
1.
Introduction: (Business definition and scope)
With an
impressive global footprint Crompton Greaves is part of the US $3 billion
Avantha Group. Crompton greaves mainly deals with electricity products. In the
year 1947 the company was taken over by Lala Karamchand Thapar, an eminent Indian
industrialist. Crompton Greaves is India's largest private sector
enterprise in the business of electrical engineering with a turnover in excess
of Rs.1700 crores. The Consumer Products Business Group is engaged in the business of
Fans, Light Sources, water heaters, Luminaires and Pumps. Today, Crompton Greaves is India's largest
private sector enterprise (Crompton & greaves. n.d).
Keeping in view the funds
available & its internal capabilities Crompton can expand its company to a
new country. Crompton has already expanded to many countries like America,
Indonesia, Belgium & china covering most of the continents. Yet there are
many untapped markets with good prospects where Crompton can establish itself.
South Africa is one such market where in Crompton can establish itself successfully.
