Marketting

2.2 Background…………………………………………………………………………………Page 4

2.3 Competitive Advantages…………………………………………………………................ Page 5

3. OBJECTIVES………………………………………………………………………................ Page 5

3.2 Marketing Plan Goals……………………………………………………………............... Page 6

4. SITUATIONAL ANALYSIS………………………………………………………............... Page 6

4.1. SWOT Analysis………………………………………………………………………….. Page 7

4.1.1. Strengths ……………………………………………………………………………………. Page 8

4.1.2. Weaknesses …………………………………………………………………………………. Page 8

4.1.3. Opportunities ………………………………………………………………………………... Page 9

4.1.4. Threats ………………………………………………………………………………………. Page 9

5. SOLUTION OFFERING………………………………………………………………………………. Page 10

6. STP ANALYSIS ……………………………………………………………………............... Page 11

5.1 Segmentation………………………………………………………………………………. Page 11

5.2 Targeting ………………………………………………………………………………….. Page 11

5.3 Positioning…………………………………………………………………………………. Page 12

7. COMPETITIVE ENVIRONMENT………………………………………………………… Page 12

8. MARKETING STRATEGY ……………………….……………………………......... Page 12

9. LAUNCH GOALS AND METRICS……………………………………………………… Page 13

10. DEMAND PROJECTIONS………….…………………………………………………….. Page 14

11. REFERENCES ………………………………………………………………………………. Page 15

EXECUTIVE SUMMARY:

Westinghouse Electric Corporation has long been in the growing market of microwave ovens. Although microwaves have been declining as many households contain an oven, it is still a growing market in many international markets as it is seen as a standard kitchen appliance in many developing countries. Westinghouse is targeting this standard kitchen appliance market in one of the newly economically developing BRIC countries, India. Although there are many competitors in this market, such as Sharp and LG Electronics, we believe we can compete because the unique features of our product as well as detailed marketing plan for our targeted location offers a value-based pricing.

Microwaves, as a consumer product, do not have much exposure in India’s market. On the contrary to the uses of microwaves, in this country, most consumers tend to heat their food using gas stoves. Our objective is to make consumers shift from stoves to microwave ovens as their primary way to heat their foods. We will do this by implementing market strategies such as targeting, segmenting, and delivering our message to the India market, all while acknowledging and accounting for the cultural differences.

We believe in our company and the magnitude of our strengths in order to achieve our objectives. We understand that in this situation we are entering a new market and thus our strengths will be the factor in being able to penetrate the market successfully. We will rely heavily on the research we conducted to find the right way to communicate the product for the customer through extensive promotion in order to capture the potential market and try to convince customers to buy into our Westinghouse microwave.

COMPANY OVERVIEW:

Westinghouse Electrical Corporation for more than a century, has consistently provided innovative, reliable, high quality products and customer service. It has achieved a world class name and most trusted brand due to its advanced technology and outstanding dependability. From generators to functional appliances, Westinghouse strives to provide their customers with the best product available in each market segment, while continuing to increase their revenues by continuing to innovate new products.

2.1 MISSION STATEMENT

Westinghouse Electrical Corporation mission statement: “Total quality. Market leadership. Technology drive. Global. Focused growth. Diversified.”

2.2 BACKGROUND

The Westinghouse Electric Corporation was an American manufacturing company and was founded on January 8, 1886 by George Westinghouse. It has grown to be among the country’s largest electronic companies with units committed to serving the U.S defense industry as well as with new segments such as power generation and manufacturing. The company has played an integral role in several notable projects, namely the conversion of Niagara Falls to electric power, the installations of the Interborough Rapid Transit Company in New York and the South Side Elevated Railroad in Chicago, and the powering of the Louisiana Purchase Exposition. Westinghouse’s estimated annual revenue is around 1.5 billion.

2.3 COMPETITIVE ADVANTAGES

OBJECTIVES:

To enter and successfully penetrate India’s microwave market by developing a strategized marketing plan fit accordingly to India’s demographics and culture in order to further globalize the Westinghouse company.

3.1 COMPANY PROBLEM/ OPPORTUNITY

Westinghouse Electrical faces a huge problem of not currently having a market established for their microwaves in India, one of the fastest growing countries in the world, both economically and socially. This problem opens a grand opportunity for Westinghouse to take their corporation to a new level, with the opportunity to increase their profits by substantial margins.

3.2 MARKETING GOALS

Not only does Westinghouse plan to enter a new market in an international country, but Westinghouse plans to become a top microwave competitor in India with its extensive research strategy and strategic targeting segmentation.

SITUATIONAL ANALYSIS:

Microwaves first became introduced in the commercial market in 1955, when Tappan Stove Company sold the first domestic microwave oven (Defree). It has since been growing to become a standard kitchen appliance in most households across the world. However, the potential of growth still exists in the vastly untouched market of India. Counsellor and Director of the Research Department of the International Monetary Fund, Raghuram Rajan, stated how India has become “a hub for globalization” (2005). In addition, according to a statistic on Statista, Kitchen appliances market in India is expected to grow over 17% during 2016-2021. The stats also showed the demand of microwave has increased by 27% in last 2 years.

4.1 SWOT ANAYLSIS

4.1.1 STRENGTHS

The strengths that Westinghouse proposes into penetrating the microwave market in India is the easy to use and conventional way of heating food. In order to take in to consideration India’s heavy emphasized traditional style of cooking, Westinghouse promotes the fast but efficient methods of combining traditional oven heating with microwave heating. This appeals to more users in India as many studies have shown that majority of India’s population do not currently have or plan to have a microwave as a form of heating food as it is not tradition. Another strength that we will later discuss in promotion strategy is Westinghouse positioning their microwave product on value pricing. This gives a safe, but strong approach when entering the new market as they showcase their microwave as a valuable necessity for its price. Finally, a country that is advancing into a leading world country, the high technology a microwave brings will soon become a custom in their society.

4.1.2 WEAKNESSES

Westinghouse company has some weaknesses of its own that will cause some setbacks when beginning its initial steps in the marketing plan. The first weakness begins from the core of the company, the lack of brand awareness and image from the populates of India. In order to overcome this, Westinghouse will have to make their brand known by using several advertising tactics and promotions. Another weakness Westinghouse will face is the lack of microwave market there is in India. Without a solid route into the market Westinghouse will eventually realize there is more room for errors when a clear path into the microwave market in India has not yet been established. Finally, India is well known for the its deep integrated culture among its society. Thus cooking, an important part of their traditions has not been exposed to appliances such as the microwave. Thus, Westinghouse will have to appeal by incorporating add on exclusively for Indian traditions.

4.1.3 OPPORTUNITY

Westinghouse’s weaknesses can be overturned into strengths by the opportunities they have to control. Based on an article in The Hindu Business Line, consumers in the Indian kitchen appliances market, preferred basic models because of lower costs as opposed to fancier models. Knowing this, Westinghouse can position their microwave pricing based on value and add-ons exclusively to fit India’s customs. Another huge opportunity opens in advertising the use of microwaves in the country and making it known how useful and easy microwaves are to use. By focusing on the necessities and values rather than fancy and high-priced microwaves, Westinghouse will stand a greater chance.

4.1.4 THREATS

The threats Westinghouse faces are large but can be contained when managed correctly. First, Westinghouse microwaves face the threat of entering an unknown market and the financial risks that come with it. They face the possibility of spending large amounts on research and advertising for their product, that in the end might not be bought. In addition, another threat that could be face is the other stronger competitors of Westinghouse who might use their market share as an advantage if they decide to enter the Indian market as well. If they do, this could cause Westinghouse to exert all financial costs for knowing how to enter the market, only to be beaten by the competitors who come after them.

SOLUTION OFFERING

To make the market entry in the Indian market successful, it is important to set objectives and intermediate objects to facilitate the entry. The solution to our problem is an efficient marketing strategy that not only will guide Westinghouse Company to enter the market but continue its long-term success. Westinghouse’s solution is to establish itself on the market and to prevail against the major competitors. Using the four marketing P’s; Price, Product, Promotion, and Place, Westinghouse plans to allocate its marketing resources into extensive market research and advertising in order to begin reaching their expected customers.

STP ANALYSIS

For the segmentation, targeting and positioning of Westinghouse, there are several states in India we can target all in different ways based on the STP analysis we will conduct below. This is primarily important to do before entering a brand-new market as it gets you to a more direct plan on who your consumers will be.

5.1 SEGMENTATION

Market segmentation is necessary for every marketing plan as it divides the market into distinct groups of buyers with different needs or behaviors. This requires separate products or marketing mixes for each specific segmentation. For this specific marketing proposal, we will segment India’s market into four different segments.

1. Geographical Segmentation: Urban and suburban regions of India.

2. Demographic Segmentation: Targeting people with a stable income of over 20,000 takas.

3. Life-stage Segmentation: Targeting single and married young couples who are with or without children.

4. Behavioral Segmentation: Based on usage rate: Light vs Heavy usage

5.2 TARGETING

Westinghouse will use its segmenting proposition to further assist them in the targeting part of the analysis. The company will target the 10 most populated cities across India and make sure to know how each city is segmented in the four divisions we discussed above.

5.3 POSITIONING

In order for Westinghouse to position their microwaves against its competitors, they must add value to their product in order to position themselves above average. The add-ons that their microwave product can include are many, but the most importantly, remembering to cater to the Indian culture. This will not only appeal to those who are attracted to the idea of microwaves already but will attract those who are hesitant to the idea of converting their usual way of heating food to the new one our company will try to sell.

COMPETITIVE ENVIRONMENT

As stated before, the entry into the Indian market is a goal for many other competitors who are trying to expand their product to an up and coming country. Not only will Westinghouse have to do extensive work to enter the new market successfully, but they will also have to maintain themselves in order to be the leading microwave vendor once the market in India has been established. The main competitor that Westinghouse will have to face from the very beginning is India’s very own kitchen manufacturing companies, as they are the ones who know India’s true wants and needs. These competitors know how to reach the population of India, as they have already established their brand and brought awareness to their image through their knowledge of the Indian market.

MARKETING STRATEGY (FOUR P’S)

1. PRICE: We plan to propose the microwave in India using the Market-oriented method pricing. Based on demand and supply and we will adjust the price accordingly.

2. PRODUCT: Westinghouse will offer 3 lines of microwaves to the market of India.

1. Compact Microwave: This compact microwave size will be for those in need of a small quick heating who do not have the space for the regular sized microwaves.

2. Medium Capacity: These microwaves are larger than compact microwaves while still offering a doable size for those who want to go one step up from our base line model.

3. Large Capacity: This large capacity offering will be offered to those who are plan on heating large quantities of food while being able to sustain its larger compact in their household.

3. PROMOTION: For this oven brand, informative objective has to be followed. Since the brand is new in the market, this approach is the most appropriate for the beginning of Westinghouse’s business. Thus, we need an advertising strategy which will create awareness and knowledge among customers so that it can penetrate into the market as well as customers mind. We will also incorporate coupons during seasonal sales.

4. PLACE: The targeted most populated cities of India.

LAUNCH GOALS AND METRICS:

GOAL: To successfully enter and become the leading microwave seller in India’s market.

METRICS:

· Number of units of microwaves sold in the Indian market

· Total annual value of Westinghouse brand

· Total costs and profits of the Westinghouse Co.

DEMAND PROJECTIONS

Demand reflects the willingness of a consumer to purchase a good or service. Market demand reflects the willingness of all consumers within a given market to purchase a good or service.

In order to project how substantial demands will be when we begin to enter the market, we will have to look at different aspects surrounding the norms of India’s population. It is only after careful research and analysis that our company will be able to sketch a demand projection model. Based upon our future expectations of this fast-growing country, we can predict income will increase throughout the population. As India pushes to be a leading country in the world, India will also see the rise of wealth across the country, meaning more and more people will be able to buy our products and see them more convenient.

REFERENCES: