2. Agenda
• Industry overview
• Company overview
– Company profile
– Financials
– Home appliances division
– New launches
• Competitors
• Multi level marketing

3. Agenda
• IFB Chandigarh
• Analysis
—Porter’s five forces model
—Pest analysis
—SWOT analysis
—BCG Matrix
—Product life cycle
—Ansoff Matrix

4. Agenda
• Project Description
–Overview
–Situational Analysis
–Problem Statement
–Options
–Criteria
–Evaluation of Options

5. Agenda
• Recommendation
• Action Plan
• Benefit derived
• My learning

6. Industry overview

7. Industry overview
• Durable goods are those which don’t wear out
quickly, yielding utility over time rather than
at once
• Electronics products are of technical nature
• Effective after sales services are required
• Consumer durables industry
– White goods
– Brown goods
– Consumer electronics

9. Industry overview
Performance Challenges
• Riding the crest of country’s economic • On the supply side
boom • Competition from imported goods
• Market size of Indian durable market • Lack of well developed distribution
network
in 2008-09 was US$ 27.38 billion
• Regular power cuts and poor road
• Grown by 7.1% over the previous year linkages
• The market is projected to grow at a • On the demand side
CAGR of around 15% during 2010- • Customers’ increasing choice
2013 • Choices among domestically produced
and imported goods

10. Industry overview
Future prospects Emerging Consumer Demand in
India
• Industry’s future remains • Market is set to explode over the next two
robust decades
• Total private consumption will grow from
• Scope of knowledge and $370 billion today to over $1,500 billion by
experience 2025
• Scope to develop and • Urban India will account for over two-
thirds of market growth
innovate the product variants • Average per capita consumption will grow
to about $1,000 by 2025
• (Source: McKinsey Global Institute)

11. India’s consumer market will quadruple over the next
two decades
Total household consumption, billion, Indian rupees, 2000

12. Urban India will account for more than two-thirds of
consumption growth over the next 20 years
Aggregate annual consumption, billion, Indian rupees, 2000

13. Company overview

14. Company overview
• Originally known as Indian Fine Blanks Limited
• Started operations in India during 1974 in
collaboration with Hienrich Schmid AG of
Switzerland
• Pioneer in the production of fully automatic
washing machine in India in agreement with
BOSCH, Germany in the year 1989
• Engineering divisions are located at Kolkata &
Bangalore

15. Company overview
• The Bangalore unit, apart from Fine Blanked
components, manufactures motors for White
goods as well as Automotive applications
• Offers Fully Automatic Washing Machines,
Micro Wave Ovens, Dish Washers & Dryers
with factories in Goa and Bhopal
• Ventured abroad by setting up European Fine
Blanking Plant at Wrekhan, Northern Wales,
UK

16. Company overview
• The group co.’s are:
– IFB Industries Ltd.
– Engineering Division.
– Home Appliances Division.
– IFB venture Capital Ltd.
– IFB Agro Ltd.
– IFB Securities Ltd.
– IFB Leasing and Financing Ltd.
– IFB Subsidiaries

17. Company profile
• Vision
—To be customer’s first choice
• Mission
—TO BE THE BEST IN THE EYES OF OUR CUSTOMERS, EMPLOYEES, BUSINESS
PARTNERS & SHAREHOLDERS
—For Our Customers – The best product to buy, an innovative product that
consistently outperforms peers and outstanding service that makes every
customer smile.
—For Our People - An environment where individuals can constantly learn,
grow and prosper.
—For our Business Partners – IFB should be the first choice for their
products and services.
—For Our Investors - The company should be acknowledged as one with the
highest standards of corporate transparency that delivers on promises
given to shareholders.
— TO BE IN EVERY HOME VALUED AT Rs 15 LACS + (AND ACHIEVE OUR
TARGET OF Rs 4000 CRORES TURNOVER BY 2013 – 14)

18. Financials
From April’10 to April’11

20. Home appliances division
• The products
– Front loaded Washing Machine
– Top loaded Washing Machine
– Microwave oven
– Dishwasher
– 100% clothes dryer
– Wash care products
• Recently launched fully built up modular
kitchens and kitchen equipments

21. Home appliances division
• Front loading design is based on German
principles
• High quality brand of fully automatic
machines
• Dealer network spread all over India and 12
other countries
• The main washing machine production plant is
at Goa

22. New launches
• Water Filter
• Combo kit Washing Machine
• Combo kit Dish Washer
• Combo kit Microwave Oven
• Dry sheet
• Electrical & Plumbing
• Small Appliances
• Refrigerator

23. Competitors

24. Competitors
Washing Microwave oven Dishwasher Dryer
machine
Electrolux Bajaj Faber Heatcraft Haier
Haier Daewoo Kaff Siemens
Hitachi Electrolux LG Whirlpool
Onida Godrej Siemens Bosch
Panasonic Haier Bosch
Samsung Inalsa
Whirlpool Kenstar
LG LG
Godrej Onida
Sanyo Panasonic
Sharp Samsung
Siemens Sharp
Toshiba Siemens
Videocon Videocon
Bosch Whirlpool
Bosch

25. Multi level marketing

26. Multi level marketing
• Launching its products in Network Marketing
• Company is just in launching stage
• Opportunity to be a Brand Ambassador
• Easy way to earn and learn together
• Get registered with a life time fee of Rs.
1000/- only
• Buy a product or recommend anyone else

27. Multi level marketing
• You are now a brand ambassador with IFB
• Get your ID, password and a virtual office
• Start reference and recommending its product
to others
• Opportunity to earn approx Rs. 20,000/- per
day and Rs. 6,00,000/- per month
• Increase the sense of brand loyalty

28. IFB Chandigarh

29. IFB Chandigarh
• Located at Plot no.640-A, Phase-IX, Industrial
area, Mohali
• Comes in North II region
• Four other states of North II region are
Punjab, Haryana, J&K and Himachal Pradesh
• A ware house in Mauli Jagran, Chandigarh
• 17 dealers, 2 franchisees and 1 direct service
• Friendly and co-operative team of employees

30. Chandigarh Map

31. Analysis

32. High
PORTER’S FIVE FORCES MODEL
Moderate
•Number of well-established
•Most current players are Low
global players new players
players; several •Indigenous supply base
entering
•New entrants will need Power of limited—most raw
•Good technological
to invest in brand, Suppliers materials are imported
capability
technology, distribution
•Many untapped potential
markets
Threat of
New Competitive Power of
Entrance Rivalry Buyer
High High
•Unbranded products and •Multitude of brands
cheaper imports could Availability across price points—wide
enter the market of variety of choice for
Substitutes customers

33. PEST ANALYSIS
Political factor Economical factor
• High import duty • Increase in per capita income
• Plants in tax-incentive areas like Goa • Growing GDP high disposable income
and Bhopal • Increase in spending power
• Export promotion schemes of the
Indian Government like EPCG (Export
Promotion Capital Goods scheme) and
EOQ (Export Oriented Unit) status
IFB
Technological factor Socio-cultural factor
• Improvement in technology made the • Manufacturing eco-friendly product
electronic product more featured • Increasing life style and comfort
• Quality of product has been increased

34. SWOT ANALYSIS
Strengths Weaknesses
• Brand image in Home Appliances Division • Price of the products
• So many models to choose • Spare parts/AMC of the product are costly
• Healthy financial banking • No Promotional activities
• Innovative products • Less range of products in consumer
• Compatible workforce durables
• Strong after sales service • Products are for winter season but no
• Wide distribution network in all over the product is specially for summer season
country
IFB
Opportunities Threats
• Scope for growth in the rural market • Competitive pressure on the domestic market
• New launches can give more benefit • Threats from competitors in the area of pricing
• The trust in company’s product by valued • Significant rise in material cost and exchange
customers fluctuation that drastically impacts margins

35. BCG Matrix

36. Product life cycle

37. •Having wide range states
•Almost covered all
of product in market
with its existing products •some can also
•new productsnew products
•cannot capture
IFB is already rural
following with its existing
segment this ANSOFF MATRIX like refrigerator,
cover the new market with
its unique features etc. are in
water filter and
strategy of market price
product due to high pipeline
reasonable prices
•targeting B2B
penetration market with
its B2B products

38. Project Description

39. Overview
• Based on secondary distribution model of IFB,
Chandigarh
• Weekly divided into 8 weeks
• Studied the existing secondary distribution
model of Finished Goods and Spares
• Identified the gaps and improvement areas
• Introduced an improved model
• By implementing the new improved model
accessed the benefit to the company

40. Situation analysis
Various
Bhopal Primary Chandigarh Secondary
distribution distribution dealers of
warehouse warehouse
Chandigarh

41. •Then the company give
outstanding of the branch to
Situation analysis the head office
•In some cases, it takes time
till the end of the month
• Stock of last month should be cleared from Chandigarh warehouse
Bhopal • Outstanding of last month sales should be sent to the head office
warehouse
• Sales target of each month given by the company
• Outstanding of last month sales from each dealer should be
Chandigarh
warehouse collected
•Sometimes it lead to late
submission of outstanding to the
•Sales people is why stock
head office and thattake order
• Further sales to the customers
move fromfromdealers eachware
late the the Bhopal
• Stock left in their shop
Various dealers
of Chandigarh housemonth
•Now dealers further sale
•Due to this, major secondary
distribution occur in the market
the product at the time of
•Within specified time
month closingawhich ultimately
increase the cost amount of the
they pay the
stock to the company

42. Situation analysis
• Sometimes late submission of outstanding lead to
account closing of branch
• In such case, they get their stock from other states
• It lead to the stock transfer which ultimately increase
the cost of secondary distribution of that state
• If the same case happens with Chandigarh branch
then stock comes from other state to Chandigarh
warehouse which gives extra cost to the secondary
distribution
• This whole system breaks at the festival season when
there is heavy demand and high sales in the market

43. Problem Statement
• The major problem in existing secondary
distribution model is that the maximum sales
and billing occurs at the end of the month
which cause heavy transportation at that time
for which there is a need to hire more vehicles
for transportation and the challenge is to
maintain the sales in whole month evenly so
that there can be the maximum utilization of
the vehicle owned by the company

44. Options
• Weekly billing
• Proper distribution from Bhopal itself
• Division of Chandigarh into different zones

45. Criteria
Before coming to any decision these important
points should be taken in consideration-
• Sales-The new model should not hamper the
sales anyhow
• Service-In order to minimise the cost of
transportation service should not be
hampered
• Profitability-The profit that new model will
give to the company

46. Evaluation of Options
Weekly billing
Pros Cons
• It will evenly distribute the • The dealers don’t need the
sales for entire month stock each week
• Maximum time vehicle will • It totally depend on the
not move half loaded demand from customers’ side
• Proper utilization of owned
vehicle

47. Evaluation of Options
Proper distribution from Bhopal itself
Pros Cons
• There will be no need of stock • It may increase the cost of
transfer primary distribution
• There will be no need to hire • The extra stock which is not in
the extra vehicles demand in Chandigarh will be
lying in the warehouse and it
will also capture the area of
warehouse

48. Evaluation of Options
Division of Chandigarh into different zones
Pros Cons
• Each zone’s dealers can be asked to • There are only 2 areas in
order on a fixed particular date Chandigarh where our maximum
• The same vehicle can be used for number of dealers exist so even the
the distribution of goods to all the zones will not be equally distributed
dealers of that particular zone • Even after the division there are
some areas where only 1 or 2
dealers exist and demand is low
then the vehicle will still move half
loaded

49. Recommendation
• There should be weekly billing so that sales could be
evenly distributed in the entire month
• Area wise distribution can minimize the cost to some
extent
• The collection from dealers should also be done at
time to time and not at month closing only
• Stock from Bhopal should come till the second week
of the month to distribute the products evenly in the
entire month

50. Recommendation
• Products and its features are excellent but there
should be some promotional activities like TV ads to
promote the products and its features in market
• Quality of products is good in dealers’ point of view
• Dealers want the new kitchen equipment products to
be promoted because there is some demand from
customers’ side
• There should be some products which can target the
rural segment because still India has its major
population in rural areas

51. Action Plan
• Area wise distribution gave some convenience in
distribution
• This time secondary distribution is done in a very
systematic way so that each vehicle don’t move half
loaded
• This is done under the guidance and efforts of all
concerned people
• We also tried to avoid the stock transfer as it is not
needed now

52. Benefit derived
February March April
Auto fixed cost-19800/- Auto fixed cost-19800/- Auto fixed cost-19800/-
Km charges-2149*2=4298/- Km charges-1800*2=3600/- Km charges-1408*2=2816/-
Extra vehicles’ cost-14740/- Extra vehicles’ cost-3360/- Extra vehicles’ cost-2800/-
No stock transfer Stock transfer-30860/- Stock transfer-4950/-
Total cost-38838/- Total cost-57620/- Total cost-30366/-
(All costs are in Indian
rupees)

53. Benefit derived
• Total benefit derived in comparison to March’11 is
Rs.27,254/-
• Total benefit derived in comparison to Feb’11 is
Rs.8,472/-
• Maximum utilization of owned vehicle
• Only three extra vehicles hired
• Only two stock transfer occurred
• For spare parts, a rickshaw vehicle is owned by the
company on a monthly rental basis Rs. 4,000/-
• The prices of vehicles are going to increase from the
next month due to hike in petrol price

54. My Learning
• Practical insights into the life and work in a
body corporate
• To apply the management learning and soft
skills while working at the coalface
• To discuss an issue with the concerned people
and come up with an agreed solution
• Interacting with various dealers and
franchisees to understand how whole logistics
and operations work

55. My Learning
• To know various details on agreements and
costing
• Exposure to the fierce competition and the
struggle, where only the fittest survive
• To remain patient and composed in the face of
anxiety and pressure
• To analyse each pros and cons related to
various options of the solution

56. Thank You