How feasible is low price strategy for hardware’s in Gujarat?
“PERCEPTION OF CUSTOMERS IN GUJARAT ABOUT SIS BRANDED PRODUCT".
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Objective of Research
Primary Objective: To identify the feasibility of Project.
Secondary Objectives: To identify the perception of SIS branded (desktop, laptop and net top) in
Gujarat.
To identify the brand preference of prospects and customers. To identify brand awareness of SIS products. Perception about low price strategy of SIS branded products.
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It includes.., Overview of Industry & Current Market Scenario of Laptop & Desktop in
India
Notebook Market in India Desktop Market in India Our Primary Research Findings….
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Overview of Industry in India Figure 1: Total PC (Desktops & Laptops) sale: 2003-09
Overall growth rate from FY 03-04 to FY 08-09: 17% Growth Rate accounted between 15 % 35% till FY 07-08. Growth declined by 7.46% in FY 08-09 over previous year. 4
Overview of Industry in India Figure 2: Total PC (Desktops & Laptops) Quarterly Sales: 2007-08 to 08-09.
In FY 2008-09: Lowest Sales accounted in OND 08., declined in first 3 quarters. Sales increased in JFM every year over previous quarter.
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Overview of Industry in India
Figure 3: Total PC (Desktops & Laptops) Market: Zonal Spread. 6,796,587 Units
2008-09
PC consumption grew in West and East by 12% and 18% respectively. PC consumption declined in North and South by 34% and 22% respectively. 6
Overview of Industry in India
Figure 4: Market share of top brands in Desktop & Notebook Market.
HP remains market leader with 18.2% (over 15.6%) in FY 08-09. Growth declined by 3% over FY 0708. HCL came to 2nd place but it sales reduced by 15% Dell on 3rd with declined of sales by 27%
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Overview of Industry in India
Figure 5: Notebook (including net books) sales: 2003-09.
Annual Sales increased between 97% to 143% from 2003-04 to 2007-08. Annual Sales declined by 17% in 2008-09 compared to previous year. Nearby 75K Net-Books sold in 2008-09.
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Overview of Industry in India
Figure 6: Notebook sales: City-Spread.
Top four Cities are Delhi, Mumbai, Kolkata & Chennai. Next four are Ahmadabad, Bangalore, Hyderabad and Pune. Notebook penetration is high beyond top eight cities. Consumption in top 4 metros declined by 38%, in next four cities by 17% and in Rest of India by 10%
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Overview of Industry in India
Figure 7: Notebook sales in Businesses & Households.
Overall declined in sales by 17% in 08-09. Households accounted 51% while Businesses accounted for 49% of total consumption in 08-09. Declined in consumption in Businesses by 27% and Households by 3%.
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Overview of Industry in India
Figure 8: Notebook consumption in Business by employee size.
Small (up to 10 employees), Medium (10 to 50 employees) and Large (more than 50 employees). Overall consumption declined in business by 27% in 08-09. Consumption in large and small enterprises declined by 47% and 53% respectively while in medium enterprises it grew by 27%.
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Overview of Industry in India
Figure 9: Profile of Notebook Buyers (in Business Segment).
Government consumption increased by 6 times in 08-09 over 07-08. Consumption in retail outlet grew by 42%, while in factory and office locations consumption declined by 54% and 46% respectively.
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Overview of Industry in India
Figure 10: Desktop sales: 2003-09.
In 05-06, growth rate was increased from previous year (27%). From 05-06, consumption growth was declined to 19% and 0.58% in 06-07 and 07-08. In 2008-09, consumption of desktop reduced by 242,519 units at rate of (-4%) over previous year.
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Overview of Industry in India
Figure 11: Desktop sales: Share of MNC, Indian & Informal Brands.
Overall Consumption in 08-09 was -4%. Sales of MNC brands grew by 8%. Consumption for Indian brands declined by 22% and Informal (assemble) by 10%.
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Overview of Industry in India
Figure 12: Desktop sales: City-Spread.
Consumption in top 4 metros increased by 4% in 08-09. In next four cities declined by 44% while in ROI it remains flat with increase in consumption by 0.02% in 08-09.
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Overview of Industry in India
Figure 13: Desktop sales in Businesses & Households.
Consumption for desktop was 40:60 in Households and businesses in 07-08 while it was 34:66 in 08-09. Consumption in Business Segment grew by 5% and declined by 19% in Households Segment.
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Overview of Industry in India
Figure 14: Desktop consumption in Business by employee size.
Overall sales in business segment grew by 5%. Sales in small, medium and large enterprises grew by 1.5%, 13.5% and 5% respectively.
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Overview of Industry in India
Figure 14: Profile of Desktop Buyers.
Overall consumption in business segment increased by 5% Consumption grew in Government Segment by 31%, In Retail Outlet by 22% and in Factory Locations by 26%. Consumption remains flat in Office Locations with declined by (-0.01%) in 2008-09.
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Our Primary Research Findings.., 19
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Major Findings..,
We have some biased data in our primary research, thus it did not provide 100% precision in result. But we have enough evidence to identify the feasibility of low cost strategy in Gujarat.
Even though there is a declined in the sales in desktop and laptop in 2008-09 but nearly 80% respondents are interested in Desktop at low price but they need more information about products, while for laptop respondents would preferred to purchase branded product because of low price margin.
With age group of 16-24 years are more interested in SIS branded products than other age groups respondents.
More respondents are aware with E-mall brand (84%) than SIS brand (65%) while brand awareness for SIS is high in Government Segment.
Not more than 10 respondents were able to recalled SIS brand in first three brand recall.
For more than 60% respondents brand is more important than low price of hardware.
For 80% respondents information on website, word-of-mouth and advertisement are the three most important factors influencing their purchase decision.
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Thank You… 40