MKT10007 Assignment 3: Environment Analysis, Market Research Report

This report provides a comprehensive analysis of the marketing environment, consumer segmentation, and market research related to the Samsung 583L French door refrigerator. The report begins by defining the industry, categorizing the product as a consumer durable good within the household goods sub-category, and providing a tree diagram to illustrate its position. A detailed competitor analysis is presented, comparing the Samsung refrigerator with LG and Panasonic models, including brand positioning, product specifications, pricing, promotion strategies, and advantages/disadvantages. The analysis also examines the micro-environment players, focusing on intermediaries and their role in the supply chain, warehousing, and distribution. The report highlights the key risks associated with intermediary relationships and suggests leveraging them for sales promotion opportunities, such as exchange offers, seasonal discounts, and gift vouchers. Finally, the report references relevant marketing management literature to support its findings and analysis, providing a solid foundation for understanding the marketing challenges and opportunities within the consumer durable goods market.

Fundamentals of Marketing
Environment Analysis, Consumer Segmentation, Market Research

1. What industry are we in?
INDUSTRY DEFINITION– “A particular industry includes of all the people and activities
involved in making a particular product or providing services to its customer (Kotler and
Keller, 2016).”
An industry is referred as a group of business producing a particular kind of goods or
services.
Industry portrait for “Samsung 583L French door refrigerator” and the sub-category in which
“Samsung 583L French door refrigerator” branded goods is depicted here.
Fig 1 Tree diagram of how the company and Brand + Sub-Brand fit within the industry
CONSUMER GOODS - Goods, which are bought for consumption by consumers, are called
consumer goods. “In a production process consumer goods are the final result that consumers
buy from their nearest stores (Armstrong, Kotler and Opresnik, 2016).” Example: Clothing’s,
jewelry, food, household appliances, are examples of consumer goods.
Basic raw materials are not considered as consumer goods before they get transformed into
usable products.
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Consumer Goods
Non Durables Durables
Motor vehicles Books household goods
white goods
kitchen
Medical equipment
Mixer- grinders
Microwave
Iron
Cooking range
Refrigerators
Washing machine
Air- conditions
Our Brand and Sub-Brand
is located here
Our industry is located in
this category and in all the
sub-categories located
below it.

There are two types of consumer goods based on consumer buying pattern
a. Non-durables - Consumer products that need to be purchased frequently because they
are made for quick consumption and short duration of time are called Non- durable
goods.
“For non-durable products demands and consumptions is more frequent. Non-durable
goods have smaller life and perishable (Dowd, 1991).”
Example – toothpaste, tea, coffee, cosmetics etc.
b. Durables – “Consumer products that don’t get purchased frequently because they are
made for long duration of usage time are called durable goods (Thakor, 2012).”
Durable goods are normally more expensive than non- durable goods which are normally
being purchased over and over again. A refrigerator lasts for many years (more than 4-5
years) and has been made for multiple uses.
Example – Iron, Cooking range, Refrigerators, Washing machine, Air-conditions etc.
“Samsung 583L French door refrigerator” belongs to consumer durable goods industry. Let’s
have a brief discussion on consumer durable and their Sub – categories.
Based on the uses of consumers durable products are categorized into five parts
a) Automobiles - All types of cars are durable because normally cars are usually being bought
by consumers for more than 3 years. For their durability they are expensive also.
b) Books & Papers - All types of books, can also be included in the durable category. Books
are something which can be stored for the rest of life. Different types of novels, study books,
fictional books etc.
c) Household goods - There are some durable which are for domestic use called to be house
hold goods. These household goods are classified to WHITE GOODS and KITCHEN
APPLIENCES. “Our product “Samsung 583L French door refrigerator” belongs to this
sub brand.”
d) Medical equipment - the medical instruments used in hospital and nursing homes are
normally being bought for long term theses are to some extent costly.
Example – X-ray machine, M.R.I machine, operation theater unit, C.T scan machine etc.
After all the discussion we can conclude by saying that our product “Samsung 583L French
door refrigerator” belong to Durable product industry with sub category to be Household
Goods.
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2. Competitors Analysis (“C” for Competitors in SIP-CCC)
Samsung 583L French
door refrigerator
LG 570L Slim French
Door Fridge
Panasonic 547L French
door fridge
Brand + Sub-
Brand
White goods that belongs to
the group of household
durable industry.
White goods that belongs to
the group of household
durable industry.
White goods that belongs
to the group of household
durable industry.
Brand
Positioning
As this is in upper and
premium segment, so this
brand is featuring their brand
as young, vibrant and
premium. Using regular up
gradation Samsung positioned
itself in the fresh product
group.
Its brand slogan is “Life’s
Good”. The brand is
positioning itself as smart
and technologically
upgraded which will
smoothen our life.
It utilizes esteem based
positioning strategy
technique which implies
that their business logic is
to convey an incentive for
cash items to the clients.
Product
Specifications
1. Independent Cooling
Systems with Twin
Cooling
2. Auto Ice Maker and
Water Dispenser
3. Humidity Control facility
4. Digital Yellow/Green
LED display
5. Available the facility of
dispenser with Water
Filter
1. Door Open Alarm
included
2. Interior Lamp LED for
hygienic and lightening
3. Pure-N-Fresh
Deodorizer for
maintaining the hygiene
4. the facility of dispenser
with Water Filter
1. Well made separate
freezer cases.
2. Touch Screen Control
Panel
3. Antibacterial and
deodorizing filter for
lasting freshness
4. Precise temperature
control for lasting
freshness.
5. full extension bottom
freezer
Place According to the features this
product can be placed among
sophisticated and working
people an technically sound.
As LG is providing good
value for money and product
price is not much high this
product will be perfect for
economical class. And
because of having alarm
facility this product will be
impactful for those family
having kids.
Panasonic product looks
after hygine so the health
conscious people, kids, aged
people.
Price $2,299 belongs to the
skimming price category, with
initially high pay lowering
down with time.
$661.52 belongs to the
economical category so it’s
a affordable product.
$2199 belongs to the high
end category of buyers.
Promotion 1. Demonstrations(gives
clients unmistakable feel)
2. Advertising through TV,
1. Always attempted to
make direct
correspondence
1. Always attempted to
build the brand
acceptability in the
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on the web and print 2. Gives unique limits to
retailers and merchants
who sell their item.
3. Uses Hollywood stars
many times
purchaser eyes
2. They have designated
well known Brazilian
footballer "Neymar Jr" as
its image envoy
3. participant of "Greener
Electronics" development
Advantages &
Disadvantage c/w
our Brand and
Sub-Brand
Advantages
1. You can easily organize
items
2. Wider shelves and larger
door
Disadvantage
1. High cost
Advantages
1. Cost is not much high
2. Good security system
Disadvantage
1. No twin cooling system
Advantages
1. Food will be perfectly
organized
2. Properly maintained
hygiene system.
Disadvantage
1. Ice maker is located
within the freezer
Other factors
important to
prospective
buyers
10 year Parts Warranty on the
Digital Inverter Compressor*
2 year Parts Warranty on the
product
1 Year Warranty
Data was current as of 1st May 2019. .
3. Analysis of other Micro-Environment players (“S, I, P and C for
Company” in SIP- CCC).
“Micro environment is the operating environment for any firm because they have the direct and
immediate responsibility with the firm. These are those forces which affects a company directly
at serving the consumers. In short these are called SIP-CCC.”
> Suppliers
> Intermediaries
> Publics
> Company (the organisation itself)
> Customers
> Competitors
We are choosing Intermediaries as one key player among all
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Intermediaries help an association to offer and disseminate its merchandise to definite
purchasers. They incorporate re venders, physical appropriation firms, promoting administrations
offices and money related go-betweens.
They carry stock and move goods from their points of origin to their destinations.
The role they are playing in relation to consumer durable:
a) Purchasing of very large quantities of raw materials for production,
b) Warehousing and Transportation- purchased a mass quantity of goods; it needs to
get them to a place where they can be purchased by consumers.
c) Grading and Packaging -sorting, grading, and assembling the goods.
d) Risk Bearing- bear the risk for the products until they are delivered as durable
goods are bit expensive. They take care of our products as their own.
e) Marketing- they are involved in promotion of all those products which are going
to be sold by them.
f) Distribution- ensures smooth and successful distribution of goods from the
production house to final consumer.
The key risks if the relationship broke down between Intermediaries and my brand
a) First off all this will effect on production process due to purchasing raw material and
parts will get hampered.
b) Production process will become slow as sorting, grading, and assembling the goods
will become the responsibility of co only
c) And the ultimate effect will come to Distribution channel which will get hampered
and reach of product to its customer will be costlier.
The main way that Intermediaries could be leveraged to provide this brand with an additional
opportunity is sales promotion. There are several kinds of sales promotion methods but as our
product “Samsung 583L French door refrigerator” belong to Durable product here they can
use the following:
a) Exchange offers.
b) Seasonal offers (10% off in the off season).
c) Gift vouchers for next purchase or groceries.
d) Free Gift items like refrigerator cover set, freshener, and fridge organizer.
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Reference
Kotler, P. and Keller, K. (2016). A framework for marketing management. 10th ed.
Harlow: Pearson Education.
Armstrong, G., Kotler, P. and Opresnik, M. (2016). Marketing. 6th ed. UK: Pearson
Education UK.
Thakor, C. (2012). Sympathetic Value Chain for Growth: A Study of Indian Consumer
Durable Industry. Paripex - Indian Journal Of Research, 2(2), pp.220-222.
Dowd, K. (1991). A note on the demand for non-durable goods. Journal of
Macroeconomics, 13(3), pp.543-551.
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