Siddharth Shriram  CAST STUDY  solution

Read the case given below and answer the questions given at the end of the case.

India is among the hottest growth markets for AC makers, just like other consumer goods companies. Daikin entered India in 2000 an as 80:20 JV with Siddharth Shriram group company Siel. In 2004, it bought out Siels's 20% stake to make the Indian firm a wholly owned subsidiary. All these years, Daikin's sold bulk of its ACs to offices and factories and served only the upper middle class homes. Since entry-level products are driving volumes across categories, the company could not afford to stay away from that segment for long. Daikin launched 14 models for homes last year and the starting model was only 10-15% costlier than similar models offered by the competition. Earlier the price gap used to be 50%. Changing lifestyle, increasing disposable income, falling prices and wider availability have all contributed to the rise in air-conditioners sales. Demand is also rising in smaller cities and towns as well as more households join the buoying middle class segment. With introduction of cheaper products, enhanced distribution network and aggressive promotional activities in the last one year, the company claims to have already increased its market share marginally which is encouraging and it wants to become one of the top three room air-conditioners marketers. The company plans to introduce more mass products, which account for more than 80% of the country's room AC market.

Questions : Develop suitable promotional strategies for the company for the following segments :

(a) Home segment

 (b) Offices and factories segment