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/ Itm. GRUNDIG.

GRUNDIG x INDIA. International Marketing Strategy Group Assignment – Market Entry Strategy.

COMPANY OVERVIEW Grundig is a German company, founded in 1945. that started with the production of radios and televisions. In 2007 it was acquired by archelik a subsidiary of a conglomerate called koc holding. The Grundig product portfolio today includes small electronics and major home appliances. Through innovative products and a successful marketing strategy, they are a household name across Europe. Grundig's philosophy of "respect the earth and be respected internationally," has prioritized sustainable development and is committed to protecting the world's finite resources Presence – 65 countries; Employees – 1600 PRODUCT PORTFOLIO In 2013, Grundig launched a range of built-in home appliances in the UK, bringing innovation, respect for the environment, and attention to detail. Their unique products that are designed to create better human experiences are focused on sustainability. Grundig has focused on innovation, quality, extending the product range, and new investments. i ts new Home Whiz connectivity solution launched in 2016, was aligned with the long-term vision of introducing a smart app to connect with Grundig kitchen and bathroom appliances to make housework easier..

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INTERNATIONALIZATION.

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abstract. MARKET SELECTION/GEOGRAPHIC SCOPE: URBAN DWELLERS Mumbai , formerly Bombay , city, capital of Maharashtra state, southwestern India. It is the country’s financial and commercial centre and its principal port on the Arabian Sea. Population in 2022 ; 20,961,472 MUMBAI AVERAGE HOUSEHOLD INCOME With the distribution of monthly household income shows that 25percent of the households in Mumbai have income that is less than INR 12,500, a median monthly income of INR 20,000 and nine percent have income in excess of INR 60,000 per month (Clarke Annez , Bertaud , Patel, & Phatak , Working with the Market: A New Approach to Reducing Urban Slums in India 2010).

abstract. COMPETITIVE LANDSCAPE According to a source, in 2018, over 34% of the Indian population lived in an urban area, which is expected to rise in the coming years. This creates an enormous opportunity for the smart home market players. Major players in the market.

godrej. LOCAL COLLABORATION.

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abstract. GODREJ & BOYCE X GRUNDIG Is a multinational company based in Mumbai, Maharashtra “ With revenues of INR 11,500 crore (FY 2019-20) and over 14,000 committed employees, G&B’s diverse presence across 10 industries – from building complex bespoke engineering solutions to making branded consumer goods like appliances, furniture, locks, and security solutions? G&B positively impacts the lives of one-third of India’s population.” https://www.godrej.com/godrej-appliances Godrej Appliances was formed in 1958, and is a name synonymous with thoughtfully designed appliances and caring for the environment. Godrej is a proud finalist of the Indian cooling prize which is an honour bestowed in recognition of their commitment to zero landfills in manufacturing. POSITIONING Grundig and Godrej share the brand philosophy of caring for the environment and creating better human experiences. They will collectively own this space and cater to the urban dwellers of Mumbai..

OPPORTUNITIES AND THREATS.

OPPORTUNITIES The working population finds using the dishwasher easier and time-saving. Changes are happening in India. As old neighbourhoods get redeveloped and people move into modern apartment blocks their new modular kitchens make installing a dishwasher easy. While growth for most consumer durables is in single digits, for dishwashers, it is 16-17% (from a smaller base). The market is expected to grow potentially at 20% over the next 2-3 years. The category is at a growing stage in India but has massive opportunities fuelled by an increase in aspirational customers looking to simplify their busy lives. Amazon and Flipkart are also pushing dishwashers with flash sales that bring down entry prices to anywhere between Rs 22,000-26,000 and positive consumer reviews. Around 18-20% of dishwasher sales are generated from e-commerce whereby it’s next to convection microwave ovens (30%) in terms of high online contribution. For washing machines, online accounts for 10%, 9% for air-conditioners, and 5% for refrigerators. Cultural shift in more women joining the workforce creates a greater demand for home appliances such as dishwashers THREATS Indian attitudes to dishwashers: the machine is not needed when a maid can easily be hired to do the job Strain on energy and electricity consumption may increase the cost of living for households Cost of purchasing a dishwasher may be a significant barrier as lower-income groups may not be able to afford it.

BARRIERS TO ENTRY For a multinational company like Grundig, common barriers to doing business in an emerging market could be divided into business, economic, political, legal, and sociocultural barriers. BUSINESS BARRIER : The main barrier for businesses to enter the Indian market is a lack of strategic planning, preparation, and patience. In a growing economy, the competition for top talent is fierce. ECONOMIC BARRIER: India has Asia's oldest stock exchange as well as fairly well-developed equity and debt regulatory system. Inflation and the government's lack of fiscal discipline are the main economic risks of doing business in India. POLITICAL BARRIER: Every country has a set of conditions ruled out by the government and the foreign market has to abide by that. The country's average applied tariff is the highest of any intergovernmental forum (G20 countries), and it has one of the highest bound tariff rates LEGAL BARRIER : Regulations in India are constantly changing or unpredictable. State or federal authorities can use obscure sections of the law to unexpectedly challenge a local or foreign company.

CONCLUSION DISHWASHER ENTRY IN MUMBAI Indian appliance and consumer electronics (ACE) market reached Rs. 76,400 crore (US$ 10.93 billion) in 2019. Appliances and consumer electronics industry is expected to double to reach Rs. 1.48 lakh crore (US$ 21.18 billion) by 2025. The dishwasher market in India is expected to surpass US$ 90 million by 2025-26, driven by rising demand from metro cities such as Mumbai , Hyderabad, Delhi, and Bangalore. Godrej Appliances forays into dishwashers; eyes 15% market share by end of 2021-22 They are targeting a 15% market share by the end of this financial year (2021-22). Dishwasher is a premium product and they expect the metro cities like Mumbai, Delhi, Bengaluru, and Hyderabad, among others, to initially drive the market for the next couple of years. Then gradually it will be tier-II cities. Godrej Eon Dishwasher is available pan-India in 3 variants with a starting price of Rs 37,900 plus taxes. Opportunity – Collaboration with India’s trusted company Godrej can help Grundig to enter the Indian market with a special edition Grundig dishwasher.

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