India's Refrigerator market estimated at Rs. 2750 Cr is catered to by mainly 10 brands. The annual capacity is estimated at around 4.15 million units and is running ahead of demand of 1.5 million. As there is a demand and a surplus supply, all the manufacturers are trying out for new strategies in the market. Times have changed and also the buying behavior of the customer. Earlier, it was cash and carry system. Now dealers play an important role in selling, now the system is exchange for old, "bring your old refrigerator and take a new one, that too along with many gifts". A new company by name Electrolux has entered the market which has acquired Allwyn, Kelvinator and Voltas brand. Researches have revealed that urban and city sales are declining and hence all manufacturers are trying to concentrate on rural markets. Electrolux's strategy is customization of market, with special attention to the Northern and Southern India markets, while Godrej, the main player, thinks that dealer network in rural market for sales and service will be beneficial and is trying to give more emphasis on dealer network, whereas Whirlpool has adopted the strategy of increasing the dealer network by 30%. The market shares of the major players as as follows:

Godrej 30%

Videocon 13%

Kelvinator 12%

Allwyn 10%

Voltas 5%

Whirlpool 27%

Daewoo 1%

LG 1%

Others 1%

Question:

1. Could the refrigerator market be segmented on geographical basis as planned by Electrolux? 2. What should be the marketing mix for rural markets?