Description
At the beginning of 2017, India was among the top 10 markets for Johnson Controls-Hitachi Air Conditioning India Limited, accounting for around 10 per cent of its revenue. The company was trying to increase its room air conditioner (RAC) market from 11 per cent to 20 per cent by 2020. It was positioned in the premium segment of the RAC market but wanted to enter the popular segment, which was crowded with established players. The company’s focus had been on the inverter air conditioner (AC) segment, which accounted for 40 per cent of its RAC revenue; however, because of this segment’s market potential and growth, competition from key competitors was stiff. Under these circumstances, the company faced the dual challenge of finding the right strategy to establish itself in the popular RAC market and deciding how to defend its position in the inverter AC segment.
Learning Objective
This case is designed for use in a graduate-level marketing course on marketing strategies for a market leader, brand management, and analysis of potential business opportunities. After completing the case, students should be able to: ·understand the growth trajectory of a foreign brand entering the Indian market; ·recognize the importance of segmentation, targeting, and positioning analysis; ·use the VRIO (value, rarity, imitability, and organization) framework to analyze a company’s resources, capabilities, and competitive advantage; ·use brand management concepts such as perceptual mapping and Aaker’s brand resonance pyramid to analyze and understand a brand; and ·evaluate the strategies a market leader can adopt to increase and defend its market share.