S.W.O.

T
Analysis - 2015
South - Region
 Market Overview
Demographical Data*

Total States – 5
Total Districts - 201

Total Population (South) = 25 Cr.+

Sr. No. South India Population Districts Literacy Rate

1 Karnataka 61095297 30 75.60 %

2 Telangana 35193978 10 66.83 %

3 Andhra 49386799 13 67.41 %

4 TamilNadu 72147030 32 80.33 %

5 Kerala 33406061 14 93.91 %

251229165 201

* Data is taken from Wikipedia

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 Market Overview
South Sales Trend as 0n
Total Vertical
Verticals
27th sept’2015*
TG - 2015 Achieved till %Achieved Karnataka Telangana Tamil Nadu
date
Kerala Andhra Contributi.
%

Appliances 6 7.6 126 4.1 0.9 0.6 1.8 0.2 7.6

Hospitality 5 4.6 109 2.3 1.1 0.4 0.2 0.2 4.2

Projects 7.7 10.2 133 4.7 1.5 1 1.9 0.3 9.4

OEM 11.6 10.3 89 7.3 1.1 1.5 0.4 0.1 10.4

Sanitary 2.6 2.5 98 1 0.4 0.6 0.4 -0.1 2.3

Franchise 25.2 37.9 150 20.9 7.3 5.8 4.1 3.2 41.3

Trade 25.2 17.2 68 5.8 3.1 3.9 2.6 1.8 17.2

Distribution 4.2 5.1 122 0.5 1.2 1.4 1.5 0.5 5.1

Lighting 3.5 1.4 40 0.5 0.7 0.3 0 0 1.5

TOTAL 91 96.8 935 47.1 17.3 15.5 12.9 6.2 100

48% 18% 16% 12% 6%

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 Strength

Premium Brand :
 German based HAFELE is perceived as premium brand in south India.

One Stop Solution :

 Diversified range which caters to customers in different segments.

Quality of Products :
 High quality products which has a very superior image in market.

Kitchen Hardware Segment:

 Core competency of Hafele, Blum most popular among Influencers.

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 Weakness

 Brand Awareness :
 No Local Awareness, End consumers are not of all products that Hafele has
in its range the brand is mostly driven by influencers.

 Stock Availability :
 The Delivery time & availability of stocks.

 Communication Gap:
 No Internal communication between stakeholders is one of the major
concern.

 Marketing collaterals:
 The supply of marketing collaterals like gifts, notepads are comparatively
very low in comparison with competition.

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 Opportunities
 Emerging Market :
 The Modular Kitchen market is expanding at a rapid rate in south India.
 Demand for Quality & Premium products:
 Increase in Income levels, Increase in Purchasing power of consumers
leading to Increasing market for quality products & demand for
premium branded products.
 Market Penetration:
 Potential market in tier-2 & tier -3 cities which are untapped. The
market is expanding as the demand is no longer restricted to the high
net income group & upper middle class, but is gaining popularity among
other socio-economic group as well.
 Major cities with high Investment capabilities:
 Bangalore, Chennai, Hyderabad, Vijayawada, Vizag, Warangal, cochin,
Bellary, Mangalore, Kottayam, Thrissur in terms of consumers showing
interest & investment in Modern Kitchens & Built in Appliances.

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 Threats

 Dependency :
 Too much of dependency on few franchisees like Euro & Varun –
Bangalore.
 Our trade partners and franchises are tightly packed in a radius of a
few kilometers….in area like Bangalore, Chennai and Vijayawada

 Aggressiveness :
 The competitor brands are moving very aggressively in the market
through regular marketing activities, direct cash schemes to
contractors/ carpenters, Monthly newspaper ads by Elica, Kaff, hettich
in local markets reaching end consumers.
 End consumers are not aware of the brand & the range of products
that we offer.(as indicated in weakness)

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 Suggestions
 Basic Training & Displays :
 Regular Training required for Dealers Carpenters/Contractors at
upcountry as dealers are facing technical issues, such as – sliding,
tandem box, Aventos, and basic fast moving products like hinges and
ball bearing runners.
 Only 30 % of carpenters in these markets know about our products; the
rest don’t promote our brand because of lack of installation and product
knowledge.
 A dealers training program is required at regular intervals to educate
them about our products.

 Contact link:
 The ‘contact us’ link to be added on each post that we give on FB or
Twitter or any online platform that will directly link customers to the
company's website/customer-care.

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 Suggestions
 Pendrive :

 Should be given to contractors/ installers with all installation videos &

user friendly modules of different products & catalogues.

 This can be given as a sales promotional tool for visiting architects/

Interior designers from our design centers and Franchisees.

 Many architects/ID are not aware of the full range of products that we
offer, this will increase Product/brand awareness.

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 Suggestions
 BDC Digital :

 Bangalore design center needs to go digital instead of manual feed

back forms.
 This will help us to save end consumers/Influencers time as they can
easily swipe in few minutes.
 Reduces the time to collect and store the data by design centre
executive and the data can be viewed by anyone to know number of
footfalls in particular week/month/Quarter or year.
 The comments/suggestions given by the customers/influencers
digitally can be linked and given access to showroom manager, Online
executive & RSM for further follow-ups.
 Good comments which create impact for our brand can be posted on
FB or twitter or Hafele website and any other online medium as brand
advocaters.

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 Summary
 Plan for southern region :-
• To increase the brand awareness & improve the brand visibility by :-
 ATL :
 Newspaper Ads – tactical
 FM Radio
 Magazines - local
 Flyers/paper insert - tactical
 BTL :
 Hoarding - Tactical
 Mall Activities - promotions
 Multiplex Theatres - Tactical
 Sponsorships
 Festive promotion offers/sponsorship – Diwali, Onam, Ugadi, Navratri &
Christmas.
 Corporate / residential Activations and meets for design center
footfalls.
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 Summary
No. Of
Investment/
Target Event/Burs TTL Cost
Activity
ts

ATL :

Newspaper Ads 50 100000 5000000

FM Radio 100 20000 2000000
Magazines 50 20000 1000000
Flyers 300000   300000
BTL :      
Hoarding 22 120000 2640000
Mall Activities 5 300000 1500000
Multiplex Theatres 12 150000 1800000
Sponsorships 5 500000 2500000
Festive events – Diwali, Onam, Ugadi, Navratri & Christmas. 20 50000 1000000
Corporate Activities / Meets 60 30000 1800000

TOTAL 19540000

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THANK YOU