Group 10

You sell refrigerator. The market has been growing at 20 % while your growth has been 8%. You need to keep pace with the market trend and promote your product. Your current working capital limit is 5 crores and you need an additional 2 crores to keep pace with market. The bankers have been very unhappy with your sales performance. Present your case to your bankers and convince them.

FREEZEON

Ayantika Banerjee11020 Manu Govind 11030 Siddhartha Shankar Mishra11050

A WALK THROUGH OUR HISTORY

Freezeon is a 25 year old company. Freezeon is a well known name in India; Its refrigerators command high respect among the Indian consumers. We have always been known for our quality, technology, reliability and affordability. Freezeon offers a wide range of refrigerators to cater to the different demands of different types of users. Each model has different features and different capacities. Freezon generated a net profit of 25 crores during last financial year.

REFRIGERATOR MARKET
The refrigerator market has registered almost 20% growth over the last year( growth of Freezeon is 8 percent for last financial year ) With growing disposable incomes and a low penetration level for the category (34% even in urban India), the market is set to explode in the coming five years. Even in a low growth year such as 2007/08 when the industry grew by only 8%, Freezeon registered growth at 7%, with frost-free growing by 19% and direct cool growing by 9%. About 65 per cent of the refrigerator sales in the industry comes from the economy price range. 30 20 10 0 Market growth

2007 2008 2009 2010

PRODUCT LINE KAON

These refrigerators are the highend products with double door only. They are designed and manufactured with international designs and latest technology. These refrigerators are equipped with latest technology like Cool Shower technology, Convention Control technology, ZOP technology and Anti-bacterial technology PRICE RANGE 25456 to 33440

CLIFF
TYPES OF REFRIGERATOR DIRECT COOL FROST FREE CYCLE COOLING
If consumer wants a refrigerator with basic cooling needs, Cliff refrigerators from Freezon are perfect. They are most affordable of all. These are single door refrigerators, available in dual color tones PRICE RANGE 8000 to 15660

SUPERCOOLER
These are next range of refrigerator. They include single door as well as double door refrigerators. These refrigerators are available in dual color range. PRICE RANGE 18255 to 23499

STRATEGIES TO IMPROVE MARKET SHARE

Increasing the brand attractiveness (Introducing wide range of colors and designs). Increase in advertisement budget (5 crores ).

Improving additional features in Cliff and Supercooler ( FM and other features ).

Our Research and development team are working with marketing department to come up with better products. Promoting our Go-Green concept. More focus on economical group as they contribute 65% of refrigerator sales.

COST OF NEW OPERATIONS

Fund allocation for various activities Current assets and liabilities of the company
Three factories Bombay, Chennai, Delhi ( worth 75 crores ) Insurance on company worth 100crores

Operational cost ( crores )

4 Cost of operations

13
8

Assets

Advertismen t cost Go green concept

Present in 4000 retail outlets 250 exclusive outlets

Previous loans ( 3 crores ) Liabilities All installments paid till date.

TARGET FOR NEXT FIVE YEARS

We have objective to achieve 25% of market share ( Current market share 17% ) To increase our net profits to 40 crores, at the growth rate of more than 12% per year.

LOAN REPAYMENT
LOAN AMOUNT MODE OF PAY TIME PERIOD COLLATERAL 7 CRORE Annually 5 YEARS FACTORY

THANK YOU

Refrigerator is truly an integral part of every home.

The choice of refrigerator brand and model you want to buy will depend on the number of people inthe house as well as your food habits. Roughly a two member family would require a fridge anywhere between 50 to 200 litres. However, if you like your steak and chilled beer you might want a higher capacity refrigerator. Also if you do only a weekend shopping, a higher capacity fridge is what you should look at. TYPE OF REFRIGERATOR Refrigerator types are simple - direct cool, cyclical and frost-free refrigerator. Direct cooling ones are mostly single door refrigerators and frost-free refrigerators are mostly double and multiple doors.Direct Cool refrigerators Direct cool fridges only come with single door. They need to be defrosted which can be automatic or semi automatic or manual defrosting. They are the cheapest in running and service.Typically they do not come in capacity more than 350 litres.Frost Free refrigerators Cool air is continuously circulated so there's no ice build-up and hence no need to defrost. They are technologically far superior to direct cool fridges. They consume more current than direct cool refrigerators by not allowing ice formation. Frost free refrigerators are easier to maintain, have less odour and maintain food fresh for longer duration. Frost free technology is restricted to double or higher number of door refrigerators only as this technology needs a separate chiller unit.Cyclic cooling They have a unique cyclic defrost system with auto evaporation and hence save around 30% electricity as compared to frost free models. There are a very few models available generally abt 350 litre capacity. These are not very common. The abundant variety comes in the form of capacity. You can choose from mini, small, medium and large refrigerators.

Mini (50 to 100 litres) : perfect for yourstudio apartment or bachelor pad; just enough for one person to store the occasional can of beer and juices along with bare food items. These are really small, single door refrigerators. Small (170 to 200 litres) : just right for a couple or even a small kitchen. This one is small and wont take too much space while giving you just enough to store your weekly groceries. You would go for this if you were on a tight budget. These are single door refrigerators.

Medium (200 to 450 litres) : This is for the nuclear household. Not too small yet not too big. Reasonably priced these provide ample storage with enough features that are value for money. These could be single as well asdouble door refrigerators. Large (450 to 800 litres) : For the big home and big budget. These refrigerators are right out of the lifestyles of the rich and famous catalogue. You would go for this if you have a large household and are really fond of throwing elaborate dos. The large sized could be double door, three door, bottom mounted, side-by-side.

http://indiahometips.com/buyingrefrigerator.html

The refrigerator market has registered almost 40% growth over the last 4 years from 3.3 million units in 2004/05 to 4.5 million units in 2008/09.With growing disposable incomes and a low penetration level for the category (34% even in urban India), the marketis setto explode in the coming five years. Refrigerators which account for 60% of the turnover of the appliances division of Godrej & Boyce have constantly outdistanced the industry. Even in a low growth year such as 2008/09 when the industry grew by only 4%, Godrej registered almost three times thegrowth at 11%with frost-free growing by 19% and direct coolgrowing by 9%(Source:ORG-GfK data).

Direct Cool refrigerators Direct cool fridges only come with single door. They need to be defrosted which can be automatic or semi automatic or manual defrosting. They are the cheapest in running and service.Typically they do not come in capacity more than 350 litres.Frost Free refrigerators Cool air is continuously circulated so there's no ice build-up and hence no need to defrost. They are technologically far superior to direct cool fridges. They consume more current than direct cool refrigerators by not allowing ice formation. Frost free refrigerators are easier to maintain, have less odour and maintain food fresh for longer duration. Frost free technology is restricted to double or higher number of door refrigerators only as this technology needs a separate chiller unit.Cyclic cooling They have a unique cyclic defrost system with auto evaporation and hence save around 30% electricity as compared to frost free models. There are a very few models available generally abt 350 litre capacity. These are not very common.