India's Refrigerator  ,CAST STUDY  solution

Please read the case study given below and answer the questions that follow:

 Marketing Opportunities for Refrigerators in Rural Market

 India's Refrigerator market estimated at Rs. 2750 Crore is catered mainly by ten brands. The annual capacity is estimated at around 4.15 million units is running ahead of demand of 1.5 millions. As there is a demand and a surplus supply, all the manufacturers are trying out new strategies in the market. Times have changed and also the buying behavior of the customer. Earlier it was cash and carry system. Now dealers play an important role in selling. Schemes like exchange new for old, "bring your old refrigerator and take a new one with many gifts" have been put in place. A new company has entered the market. Researches have revealed that urban and city sales are declining and hence all the manufacturers are foraying into rural markets. This new company also, therefore, wants to focus on the rural segment. The Company's strategy is based on customization, with special attention to the Northern and Southern India markets, while the market leader thinks that dealer network in rural market for sales and service will be crucial giving more emphasis on dealer network.

 Questions .

(a) Could the refrigerator market be segmented on geographical base as planned by the new company ?. Give reasons in support of your answer.

(b) What would be the marketing mix for rural market?

 (c) Would 125 L and 150 L models be an ideal choice to launch in rural market ?