“MARKETING ANALYSIS”ONSubmitted in partial fulfilment of the requirement for the award ofBachelors of Business Administrative(BBA)Made By: Under Guidance of:Gaurav ChauhanBharatiVidhyapeethUniversitySchool of Distance EducationAcademic Study Centre- BVIMR, New Delhi
ACKNOWLEGEMENTProject work is never the work of an individual. It is more a combination of ideas, suggestions, andcontribution and work involving many jobs. One of the most important parts of writing a report is theopportunity to thank all those who have contributed to it. The list of expression of thanks, no matter howextensive, is always incomplete and inadequate. This acknowledgement is no exception.I want to express my sincere gratitude towards who provided me with her expert guidance and invaluablesuggestion.I would like to thank my classmates and all those who directly or indirectly helped me in one or the otherway in the successful completion of the project.TABLE OF CONTENT
CHAPTER 1: INTRODUCTION OF COMPANY:-1. Nature of business.2. Types & ownership pattern.3. Organization structure.4. Production structure.5. Organizational strategies.CHAPTER 2: INDUSTRIAL ANALYSIS:-1. Industry overview :- (Growth rate of industry, contribution to GDP).2. Current Issues :- (From newspaper, Journals-for company and industry).3. Key competitors.4. Environment scanning:-political environment, economic environment, socio-culturalenvironment, technological environment, environmental issues (Green environment) and legalenvironment.5. Porter‟s five forces model of competition-Michael Porter.CHAPTER 3: MARKETING STRATEGIES:-1. Products of company.2. 4Ps (Product, Price, Place & Promotion).3. STP (Segmentation, Targeting and Positioning).4. Distribution channels.5. Promotion strategies.CHAPTER 4: KEY LEARNING‟S FROM THE COMPANY AND RECOMMENDATIONS:-1. Performance Analysis of the Company.
2. Market share/growth rate of company.3. SWOT Analysis of the Company.CHAPTER 5: RESEARCH METHODOLOGY1. Objective of the study.2. Research Methodology3. Questionnaire MethodologyCHAPTER 6: FindingsCHAPTER 7: Conclusions and SuggestionsBibliographyCHAPTER 1: INTRODUCTION OF COMPANY:-
INTRODUCTIONVideocon Industries Ltd. was one of the initials companies that made it to the World. Videocon Electricalscaptured the initial Indian Electrical market and topped the charts for its products such as Refrigerators,television etc. before other players such as Samsung, Whirlpool etc .entered Indian market. Videocon wasone of the first Electronic Company to Collaborate with Japanese Toshiba Ltd as early as 1985.It is one of the biggest Indian Electrical brands not only in India but also globally. Indeed, Videocon is oneof the fastest paced Electrical Products worldwide. Videocon thus posed an exciting opportunity to study abrand that is automatically associated with youth and technology.Videocon deems it a privilege that it is in a position to prolong instances of joy and spirit. And lend muchneeded variety and flair in everyones life.An Indian multinational, a global force in display technologies and a group on the threshold of evenbigger things. There are new horizons to breach, new frontiers to conquer and simply no pause buttons onthe Videocon play. Expect the unexpected, the uncharted and the unlimited.1.1 NATURE OF BUSINESSManufacturer & Exporter of Conventional Colour TV and LCD TV Receiver Sets, D2h Set Top Box,VCD/MP3 Players, Air Coolers, Music Systems, Airconditioners, Home Theaters like Refrigerators,Automatic & Semi Automatic Washing Machines, Dish Washers, Microwave Ovens, Mixer, Grinders andWater Purifier like TV, DVD/MP3 & Audio Components, Glass Shells for Colour Picture Tubes, PopulatedPCBs, Tunners, Monitors for Computer, Compressors and other Electronic Assemblies and Sub-Assemblieslike Digital Diaries, Kiddy PC, Data Projector, Power Inverter, Digital MP3 Player and Palm Top like ISP,Content and Web Solutions.Crude Oil Extraction 50000 Barrels per Day.1050MW Power Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon Refrigerators,Videocon Washing Machine.1.2 Type and Ownership PatternFigure1.1: Consumer Electronics, Home Appliances & Compressor manufacturing in India
Videocon enjoys a pre-eminent position in terms of sales and customer satisfaction in many of our consumerproducts like Color Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens andmany other home appliances, selling them through a Multi-Brand strategy with the largest sales and servicenetwork in India. Refrigerator manufacturing is further supported by our in-house compressor manufacturingtechnology in Bangalore. Videocon has the largest distributed manufacturing base across India – 12facilities. It has the Capacity to manufacture 4 million CTVs, 2.5 lacs washing machines, 1 mn. DVDplayers, 4.8 mn refrigerators.Display industry audit componentsWith the Thomson acquisition Videocon has emerged as one of the largest Color Picture tube manufacturersin the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovativetechnologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.Color Picture Tube GlassVideocon is one of the largest CPT Glass manufacturers in the world with a high level of experience andtechnical expertise operating through Poland and India. Videocon will leverage on this synergy after theThomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies andlowering costs.Oil and GasAn important asset for the group is its Ravva oil field with one of the lowest operating costs in the worldproducing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.
Logo LogicThis is the new Videocon symbol. It reiterates the ethos of a company dedicated to maintaining the highestinternational standards of excellence through quality, technology and innovation. For over a decade now,Videocon has been bringing the latest and very best in Consumer Electronics and Home Appliances.Successfully adapting the best of internationaltechnology to suit Indian needs, and crafting it to improve thequality of life – as million of satisfied customers will agree.Figure1.2: Logo of VideoconThe new symbol of Videocon asserts its passion for global impact, and the two „E‟s on either side representthe Group‟s wide spectrum of interests ranging from „Electronics to Energy‟. Along with the steely glint,this communicates the groups global ambition, its strength, sterling credentials and innovative drive. Asymbol that proclaims a paradigm shift.A sign that represents the new force that is Videocon.Thusrecapitulating our principle of reaching out and touching the lives of millions of people Worldwide.OWNERSHIP PATTERNTable 1.1: Ownership Pattern
Sr.NoCategory of shareholderNumber ofshareholdersTotal numberof sharesNumber of shares heldin de materialized formAs a %of (A+B)As a % of(A+B+C)(A)Shareholding of Promoter and Promoter Group(1) Indian(a) Individuals/ Hindu Undivided Family 13 1619838 1292950 0.87 0.73(b) Bodies Corporate 44 153823583 152711452 82.6 69.57Sub-Total(A)(1)57 155443421 154004402 83.47 70.3(2) Foreign(a) Individuals (Non- ResidentIndividuals/ Foreign Individuals)0 0 0 0 0(b) Bodies Corporate 0 0 0 0 0(c) Institutions 0 0 0 0 0(d) Any Other (specify) 0 0 0 0 0Sub-Total(A)(2)0 0 0 0 0Total Shareholding of Promoterand Promoter Group (A)=(A)(1)+(A)(2)57 155443421 154004402 83.47 70.3(B) Public shareholding(1) Institutions(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02(b) Financial Institutions/ Banks 36 304403 291166 0.16 0.14(c) Insurance Companies 5 5600352 5599752 3.01 2.53(d) Foreign Institutional Investors 95 13467563 12706367 7.23 6.09Sub-Total(B)(1)157 19408889 18632513 10.42 8.78(2) Non-institutions
(a) Bodies Corporate 1927 5516620 4962476 2.96 2.5(b) Individuals(i) Individual Shareholders holdingnominal share capital up to Rs. 1 lakh342862 4685290 2998613 2.52 2.12(ii) Individual Shareholders holdingnominal share capital in excess of Rs.1 lakh19 1171618 1171618 0.63 0.53(c) Any Other (specify) 0 0 0 0 0Sub-Total(B)(2) 344808 11373528 9132707 6.11 5.15Total Public Shareholding (B)= (B)(1)+(B)(2)344965 30782417 27765220 16.53 13.93TOTAL(A)+(B) 345022 186225838 181769622 100 84.23(C) Shares held by Custodians and againstwhich Depository Receipts have beenissued2 34867863 34862403 0 15.77GRAND TOTAL(A)+(B)+(C)345024 221093701 216632025 100 1001.3 Organisational structure of VideoconFigure1.3: Organisational structure of Videocon
1.4 Production structureCost cutting – Videocon was better positioned to shift the activities to low-cost locations and also it couldintegrate the operations with the glass panel facility in India with the CPT manufacturing facilities acquiredfrom Thomson S.A. Videocon wanted to leverage its position in the existing parts of the business and this
acquisition would give it a strong negotiation position and could reduce impact of glass pricing volatility.Videocon could also reduce the costs by upgrading and improving the existing production lines.Vertical Integration – The acquisition helped Videocon in vertically integrating its existing glass-shellbusiness where it had been enjoying substantially high margins. Videocon‟s glass division had the largestglass shell plant in a single location. This gave the company an unrivalled advantage in terms of economiesof scale and a leadership position in the glass shell industry. The acquisition also gave Videocon a ready-market for its glass business and it was part of Videocon‟s long-term strategy to have a global vertically-integrated manufacturing facility.Rationalization of Product Profile – Videocon modified its product profile to cater to the changing marketneeds like moving away from very large size picture tubes to smaller ones.Apart from the overall strategy Videocon also had a plan on the technological front. It wanted to improve thesetup for the production line and line speed post-merger. Its focus was to increase sales while reducing thecosts and thereby improving the productivity of the existing line. The company also wanted to foray in a bigway into LCD panels back-end assembly. On the sales front the company wanted to leverage on the existingclients of Thomson and build relation as a preferred supplier to maximise sales. Also, Videocon couldbenefit from OEM CTV business with the help of Videocon‟s CTV division, invest for new models andintroduction of new technologies.Videocon has not been able to turn the plant around in Italy still. However it is getting support from the localgovernments (which want to prevent job cuts) in form of grants. The government is in fact trying to set up aGreenfield venture in form of a LCD manufacturing facility in partnership with Videocon. The banks arealso supporting Videocon and with help from all these quarters Videocon expects to turn around the plant inItaly. The Thomson plant has not turned around in Mexico as well and in fact production has beenreduced over there.InPoland,the situation is more promising and Videocon hopes that plant over there willget in black in the very near future. However the surprise has been in the Chinese market .Despite facinga highly competitive market Videocon has managed to turn a plant around while the other is on its way. InChina Videocon is adopting a different strategy for manufacturing CTVs as the local players dominate themarket .It plans to supply these players by taking advantage of low-cost nature of mainland(the numbertargeted by it about 6 million CPT,s)1.5 VIDEOCON STRATEGIES1.5.1 Multi-brand strategyVideocon International was the first Indian company to adopt the strategy of multi-brands. Apartfrom its mid-priced brand Videocon, the company now hawks Toshiba, a premium brand, and thelow-priced brands Akai and Sansui. The multi branding technology paid off as Videocon managed to
hold on to a combined market share of around 19.6 percent, with LG at 25.9 percent and Samsung ataround 13.8 percent.Overall, the shift in the power to trade is probably one of the defining developments. It is importantsince the TV companies themselves have taken it seriously and embarked on crafting longer-termstrategies to accommodate this development. The effectiveness of their strategy and the responses ofthe other players promise to deliver a few more years of enterprising developments in the Indian TVmarket.1.5.2 Backward IntegrationVideocon integrated backwards by getting into manufacture of components such as electron guns,metal parts and deflection yokes for CTVs and compressors, and electric motors and plasticcomponents for households appliances such as washing machines, refrigerators and Air conditioners.The group integrated further to get in to manufacture of glass panels and funnels, the key componentsfor the manufacture of color picture tubes.“Videocon enjoys a unique synergy in the global CTV business from glass to CRT (Cathode Raytubes) to CTVs. - (From Sand to CTV). Together with other components for households appliances.This high degree of backward integration bestows upon the company a unique benefit overcompetition.1.5.3 Videocons Revenue mixFigure 1.4: Videocons Revenue mix1.5.4 Performance MeasuresFigure 1.6: Performance Measures
CHAPTER 2: INDUSTRIAL ANALYSIS2.1 Industry overviewCOMPANY’S PROFILE
Figure2.1: Today the group operates through 4 key sectors:Consumer Electronics, Home Appliances & Compressor manufacturing in IndiaWe enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumerproducts like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens andmany other home appliances, selling them through a Multi-Brand strategy with the largest sales and servicenetwork in India. Refrigerator manufacturing is further supported by our in house compressor manufacturingtechnology in Bangalore.Display industry and its componentsWith the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tubemanufacturers in the world operating in Italy, Poland and China, continuing to lead through new innovativetechnologies like slim CPT, extra slim CPT and High Definition 16:9 format CPT.Color Picture Tube GlassVideocon is one of the largest CPT Glass manufacturers in the world with a high level of experience andtechnical expertise operating through Poland and India. Videocon will leverage on this synergy after theThomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies andlowering costs.Oil and GasAn important asset for the group is its Ravva oil field with one of the lowest operating costs in the worldproducing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.
2.2 Current issue of VideoconFigure2.2: Videocon V1688 Twist & Turn available in marketDescription:Videocon V1688 Twist & Turn is the new stylish and well designed mid-range mobile phone by Videoconwhich has just been launched in the market. The mobile comes loaded with lots of attractive and impressivefeatures as well as dimension. This mobile is priced at Rs. 6,995/- in Indian market which is affordable thanother mobiles having same features.Videocon V1688 Twist & Turn is the 90 degree roted full QWERTY keyboard impressive mobile phone thathas 3.2 inches touchscreen display screen. This display screen of the device generates resolution of 320x480that shows pictures of better quality.This amazing designed mid-range mobile has all the music features such as MP3 and MP4 with formats of3GP, AVI, RMVB video etc. It is boasted with a 2 mega pixel of camera that can capture photographs atresolution of 1600x1200 pixels and video recording at format of 3GP and 15fps. It is also loaded with dualspeakers for loud music and a 3.5 mm audio jack.The mobile supports Java language, EDGE & GPRS and stereo Bluetooth streaming (A2DP), while comespre-loaded of popular social networking sites like MSN, Yahoo, Facebook and Skype. The mobile comespre-installed a 2GB microSD while its memory can be upgraded up to 4GB through using a memory card.The mobile, Videocon V1688 Twist & Turn, supports dual SIM (GSM+GSM) that provides excellentnetworking facility. This impressive handset is corporated with a solid 1000 mAh battery that allows longtalk and standby time. The mobile is available in Red, Yellow and Silver colour shades.2.3 IMPORTANT COMPETITORS
LG ELECTRONICSLG Electronics rightly understood the consumer motivations to create magneticproducts, price them strategically, position them sharply and keep making themagnetism more potent. Having understood the finer differences in consumermotivations, it opted for sharp- arrow „reasons-to-buy‟ differentiation over the„blanket-all approach‟ taken by most of the other players. It is an aggressivemarketer. It focuses on low and medium price products.SAMSUNGInitially the strategy of Samsung in India was to create premium image byemphasising global brand. After facing stiff competition from another Korean major-LG, Samsung also started playing price game. In 2004 it reverted back to its premiumpositioning, although it resulted in some loss of market share. In line with the GlobalDigital Initiative of the Parent Company, Samsung India is seeking to acquire digitalleadership in India by introducing its digital ready televisions like the 40" LCDProjection TV, 43" Projection TV and the Plano series of Flat Colour televisions.ONIDAIts popular devil ad although had engendered a strong emotional pull towards thebrand, technologically it represented no advancement. The company plugged the gapby touting its digital technology. Like Videocon, it has also been able to hold itsmarket share. The world-class quality of Onida has enabled the company to make abreakthrough on the export front. It has technical tie- up with the Japan VictorCompany, better known as JVC. So focused is Onida on positioning itself on thepremium, high- tech plank that it is even planning to push its own envelope onobsolescence, much. The strategy is aimed at further broad basing the productoffering of the company, which has largely dominated the top-end of the televisionmarket, across multiple market segments.VIDEOCONVideocon has always been a price player and has an image of a low price brand. Thisentails providing more features at a given price vis-à-vis competitors. It has takenover multinational brands to cater to unserved segments, like Sansui- to flank theflagship brand Videocon in the low to mid priced segment, essentially to fight againstbrands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like
Aiwa.Videocon is one of the largest manufacturers of television and its components inIndia and thus has advantages of economies of scale and low cost due toindigenisation. It has the widest distribution network in India with more than 5000dealers in the major cities. It also has a strong base in the semi-urban and ruralmarkets. Due to its multi-brand strategy, it has at present multiple brands at the sameprice point. This has led to a state of diffused positioning for its brands. It has also ledto a cannibalisation of sales among these brands. The flagship brand Videocon haslost market share due to the presence of Sansui in the same segment. Because ofreduction in import duties on CPT the cost advantage of Videocon is also on thedecline. Hence it is facing rough weather and also trying to boost exports.Besides understanding the strategy adopted by different players, several other factors-industry growth, concentration and balance, corporate stakes, fixed cost, and productdifferences need to be analysed to determine the extent of rivalry between theexisting Players.2.4 ENVIRONMENTAL SCANNINGPEST ANALYSIS1. Political FactorsLabour unions effects a lot the productionResolution to reduce emission of carbon footprints in the atmosphereAnti-dumping duty on imported color picture tubes2 . Economical FactorsGrowth of retail sector ± expected to reach 16% by 2011-12from 4% in 2007High investments are needed in the consumer durablesEmergence of organized retail market with large players likeCroma, Next, Reliance Digital – leading
to lower prices and higher varieties3 . Social Factors:Changing perception of luxury to necessityIn rural areas there is poor infrastructural facilities likeavailability of electricityDemand of the consumer durables is seasonal and cyclicHighly growing consumer durable market4 . Technological Factors:Improved electricity consumptionHigher quality productsTechnological is changing at a very fast rate2.5 PORTERS MODELFigure 2.3: Porter’s ModelSuppliers(SupplierPower)Potential entrants(Threat ofEntry)IndustryCompetetitors(Segmentrivalry)Substitutes(Threat ofsubstitutes)Buyers(BuyerPower)
In order to understand the industry better, we analyze the industry using Porter‟s Five Force Model-- Threat to entry- Rivalry of among existing firms- Bargaining power of buyers- Bargaining Power of Suppliers- Threat of SubstitutesThreat to Entry-Entering the CTV market isn‟t very easy. One of the most important features needed is a gooddistribution system which isn‟t something that can be developed overnight.Also a television today is a style statement. Therefore the brand plays an important role ininfluencing the purchase decision. For a new company then entering this market, not having arecognized brand name is a threat to entry.Rivalry among existing firms-There is strong competition among the current players. The main players being LG, Samsung, Onida,Videocon, Philips, Sansui. Some of the regional players are- Hyundai and Haier are new entrants inthe CTV space in addition to a number of small regional players.This increased competition has ensured that advertising costs are an integral part of the players‟ totalcost. A lack of product differentiation means that price is a competitive feature that intensifiesrivalry. The highest price reductions during 2002-03 to 2005-06 were in the 20inch and 21inchCCTV category.With the future being in LCDs, this market is likely to see price reductions future.It is expected that realizations will fall with increased competition.Bargaining Power of Buyers-The TV market today is a consumer‟s market where the consumer has the upper hand with himhaving the power of choosing from a variety if brands.This bargaining power of the buyer has forced the players to offer credit facilities on sale, to providelower EMIs and excellent after-sales service.The intense dealer competition also benefits the consumer in terms of prices and offers available.
Inventory carrying costs for television companies are high. This is a boon for the consumers as ittranslates into higher bargaining power for the consumeThreat of Substitutes-For a television, the substitute can only be a functional substitute. The functional use of a televisionis to watch programs, live events etc. This today can also be done on a computer.Theaters too can be a substitute to watching movies at home.Today with various multiplexes and theaters providing screenings of live events such as sportstelecasts etc along with the luxury of good food and the opportunity to enjoy the event with anumber of other enthusiasts, the TV can be substituted if the TV is bought only to watch certainevents.However if the television on considered to be a style statement and a lifestyle statement, thenconsumers will seek to keep upgrading the type and the model of their television sets.Bargaining Power of Suppliers-PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw materials in the productionof CTVs.CRT accounts for 46-48 per cent of the total raw material costs of a CTV. PCBs and housingcomponents account for 33-39 per cent of total raw material costs.Domestic CPTs prices tend to follow Global price trends. Therefore the suppliers do not have muchof bargaining power in this regard.Cabinets are sourced from plastic manufacturers and as these manufacturers supply to differentindustries, they therefore do have a bargaining power, especially in comparison to CRT suppliers.
CHAPTER 3: MARKETING STRATEGIES:-3.1 PRODUCTS OF COMPANYCONSUMER ELECTRONICSFigure 3.1: Figure of PlasmaFigure 3.2: Figure of Split A/CFigure 3.3: Figure of Window A/C
Figure 3.4: Figure of Mobile PhoneFigure 3.5: Figure of Washing MachineFigure 3.6: Figure of Refrigerator
Figure 3.7: Figure of Home TheaterFigure 3.8: Figure of Dish TVFigure 3.9: Figure of LCD Television
3.2 4P’sThe 4Ps includes the Product, Price, Place and promotion.Product MixProduct mix is the set of all product and items a particular seller offers for sale. Product mix consists ofvarious product lines.The width of a product mix refers to how many different product lines the company carries. The Videocontelevision has product mix width of five lines. I.e. plasma, LCD, Slim, flat and Conventional.The length of a product mix refers to the total number of items in the mix.i.e. for the line of LCD the length is 2 as it has two items 50” PDP and 42” PDP.The depth of the product mix refers to how many variants are offered of each product in the line, i.e. ForLCD the depth will be 2. As Videocon is offering only one product in 50” PDP and 42” PDP.The three product-mix dimensions permit the company to expand its business in three ways.It can add new product lines, thus widening its product mix.It can lengthen each product lines.It can add more product variants to each product and deepen its product mix.Width, Length & DepthWidth = 5 (Plasma, LCD, Slim, Flat, Conventional)Plasma LCD Slim Flat Conventional50”PDP42” LCD 29” slim 29” flat 21” FFST42”PDP32” LCD 21” slim 21” flat 20”conv26” LCD 15” flat 14”conv20” LCD19” LCD
In the product mix ofVideocon, it is having 37 different models, which gives them their product line Depth.PLASMAPlasma television technology is similar to the technology used in a fluorescent light bulb. The display itselfconsists of cells. Within each cell two glass panels are separated by a narrow gap in which neon-xenon gas isinjected and sealed in plasma form during the manufacturing process.The main advantage of Plasma over CRT technology is that, by utilizing a sealed cell with charged plasmafor each pixel, the need for a scanning electron beam in eliminated, which, in turn, eliminates the need for alarge Cathode Ray Tube to produce video images. This is why traditional televisions are shaped more likeboxes and Plasma televisions are thin and flat.Advantages of Plasma Television:Largest Screen Formats.Superior Contrasts.Versatile.Capable Of Displaying Full HDTV &Dtv Signal.Capable Of Displaying Xga, Svga&Vga Pc Signal.Wide Viewing Angle.Wide Rage Of Richer Color Over 16 Million.Superb Realistic Images.Less Expensive Than Lcds.Life More Than 30,000 Hours.Wide Screen Aspect Ratio around 16:9.Perfect Flat Screen.Uniform Screen Brightness.Length 5 2 3 3
Slim & Space Saving Design.50" PDPIntegra 5010000:1 Contrast Ratio3:2 & 2:2 Pull DownHDMI Compatible3-D Video Noise ReductionPC Input42" PDP16.77 Million Color10000:1 Contrast Ratio3.2 & 2:2 Pull Down1500cd/m2BrightnessHDMI Compatible3-D Video Noise ReductionLCDThe flab‟s are out and now technology has switched over to sleek and slim products, LCD being theprominent amongst them. LCD technology is the recent breakthrough in consumer electronics and becauseof its esteemed advantages this segment is growing day by day.Videocon are launching this range under the sub brand “Integra”. “INTEGRA” term indicates the integrationof various systems connectivity with LCDTV.This is an integration of best sound quality and excellent picture quality.What is TFT-LCD?Meaning of this term is Thin Film Transistor–Liquid CrystalDisplay. TFT technology used in this category offers the bestimage quality in flat panels. This technology is also called asActive Matrix Technology.40" LCD, 32" LCD, 26"LCD, 20" LCD, 19" LCD
SlimWith Continuous Research & Development, Videocon brings a revolutionary advancement in physics &brings new Slim & Trim Television.The Most significant feature of the Slim & Trim Television is its one kind of super slim picture tubetechnology. This has enables us to make the TV 42% Slimmer.Slim Picture tube is a product with reduced depth providing the TV and monitor producers with opportunityto design Slim, flat and stylish TVs comparable to plasma or LCD panels maintaining Good picture Quality29" SLIM21" SLIMFlatVideocon Bada Woofer with Surrounds Bass TechnologyBass Amplification by Dynamic Alignment (BADA) woofer is a revolutionary technology that offers a newsound to create an unbelievable sound spaceVideocon unique Bazoomba Woofer TechnologyVideocons superior Bazoomba Woofer Technology incorporates a unique conjugate arrangement of Woofermotors that ensures rich bass reproduction.The Bazoomba Woofer TechnologyEnables the generation of the lowest bass frequencies from a small enclosure (Bazoomba tube). Enablescleaner and tighter bass reproduction due to acoustic cancellation of distortion in the even harmonics29" TFT21" TFT15" TFTConventional TV21" FFST
20" CONV14" CONVPricingThe pricing of the Videocon‟s various models is as following.Plasma TV : Rs. 59,990 - 2, 40,000LCD TV : Rs. 28,400 – 89,900Slim TV : Rs. 10,400 – 18,900Flat TV : Rs. 5,500 – 18,400Conventional TV : Rs. 4,600 - 9,500PlaceVideocon has its presence all throughout India.They have their presence in 25 states and each state has at least 2 divisions per state. In total they are having78 divisions.Videocon has around 1800 dealers in India. They are having 96 service centers across India.Promotional ActivitiesFocusing on LCD, Plasma and 29” Flat TVs since 2006.By institutional selling. Company used both TVC as well as print media for promotion. The company isusing outdoor media promotions in hording and bus shelters to high light the feature packed advantages.Major tie ups in the background IIT alumni/ Videocon Santos ham film awards 2006 with ZEE and ICCCricket champions trophy.Seasonal offersTrip to Germany during FIFA world cup
Videocon bonanza offer ( har din diwali) during diwaliChance to win car, motor bike and LCD TV3.3 SEGMENTATION, TARGETING & POSITIONING (STP)SEGMENTATION:Market segmentation is the process in marketing of dividing a market into distinct subsets (segments) thatbehave in the same way or have similar needs. Because each segment is fairly homogeneous in their needsand attitudes, they are likely to respond similarly to a given marketing strategy. They are likely to havesimilar feelings and ideas about a marketing mix comprised of a given product or service, sold at a givenprice, distributed in a certain way and promoted in a certain way.The process of segmentation is distinct from targeting (choosing which segments to address) and positioning(designing an appropriate marketing mix for each segment). The overall intent is to identify groups ofsimilar customers and potential customers; to prioritize the groups to address; to understand their behavior;and to respond with appropriate marketing strategies that satisfy the different preferences of each chosensegment.Segments based on IncomePlasma: Income group of more than 50,000LCD: Income bracket of Rs 20,000 and aboveSlim: Consumer in the income bracket of Rs 9000-15000Flat: Consumer in the income bracket of 7000-12000Conventional: income bracket of Rs 3000-6000Segments based on social classPlasma: rich classLCD: upper middle class and rich classSlim: middle classFlat: middle and lower middle classConventional: lower economic class.
Benefit Segmentation:Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis of benefits that an endconsumer would receive from them.User Status:TV market can be classified into non users of TV and potential users in term of graduating to a highersegment like slim, LCD,Plasma from basic conventional TV.Loyalty status:On the basis of Loyalty statusHardcore Loyal: brand loyal to Videocon for a long time in terms of purchasing products of VideoconShifting Loyal: who shift loyalty from other brands to anotherSwitchers: not loyal to any brands so attract them to Videocon and convert they brand loyal.TARGETING:Once the firm has identified its marketing-segment opportunities, it has to decide how many and which onesto target. Marketers are increasingly combining several variables in an effort to identify smaller, better-defined target groups.The decisions involved in targeting strategy include:* Which segments to target?* How many products to offer* Which products to offer in which segmentsIn premium segments like flat screens and FDPs the growth in sales has been many times the industrygrowth. More importantly, high end product sales are no longer restricted to metros. Consumer in tier-2cities seems to be as evolved in lifestyle needs. The consumer profile, too, has changed. Higher disposableincomes, greater aspirations and younger demographic have increased demands for the technologies. AndVideocon is targeting this segment.
POSITIONING:Positioning has come to mean the process by which marketers try to create an image or identity in the mindsof their target market for its product, brand, or organization. It is the relative competitive comparison theirproduct occupies in a given market as perceived by the target market.Once the competitive frame ofreference for positioning has been fixed by defining the customer target market and nature of competition,marketers can define the appropriate points-of-difference and points-of parity associations.Points of Parity (POPs) are associations that are not necessarily unique to the brand but may in fact be sharedwith other brands. They represent necessary-but not necessarily sufficient-conditions for brand choice.Videocons Points-of-Parity are good quality Picture and good sound.Points-of-Difference (PODs) are attributes or benefits consumers strongly associates with a brand, positivelyevaluate, and believe that they could not find to the same extent with a competitive brand.Videocons POD is the quality product with low cost.With the strong backward integration Videocon can provide the products with low cost.Thus, Videocon is positioned itself as a reliable and value-for-money product3.4 DISTRIBUTION CHANNELS IN THE INDUSTRYThe Refrigerator companies in the industry use different distribution channels to reach the customer. Theseare as follows:1. In this type of channel the company uses its sales representatives to deal with the dealers directly. Thedealers place the order through the sales representatives who visit them periodically, and the products aredelivered directly from the company.Some companies appoint Direct Dealers who act as their Franchisee Outlets or their Exclusive showroom.
Figure 10: DISTRIBUTION CHANNELS2. In this channel of distribution the company appoints distributors on the basis of District/ Population /Noof Dealers to be handled by one distributor. The area of operation and its potential is also taken intoconsideration.Some of the companies make the distributor totally responsible from appointing the dealers to providingafter sales service.Figure 11: DISTRIBUTION CHANNELS
3. In this channel of distribution the company appoints Distributors as well as Direct Dealers. The companyappoints distributors to deal with small dealers who order small quantities. With the dealers who have goodpotential and sales the company deals directly. The Korean Multinational follow this channel where theyappoint Distributors for upcountry towns and direct dealers for big cities and major towns eg. Ahmedabad.Figure 12: DISTRIBUTION CHANNELS
4. In this channel the company appoints a C&F agent who acts on behalf of the company. The C&F agentis totally responsible for appointment of Distributors and Direct Dealers. He sells to both the Distributorsand the Direct Dealers at the same rates.Figure 13: DISTRIBUTION CHANNELS3.5 PROMOTION STRATEGIESProduct strategy1. Stop all curved CPT production2. Shift focus to LCD CTVs; target: by December 2007.3. Launch Slim21” and focus Slim 29” immediately. Target is to have almost all CRTs productionshifted to Slim by 20074. Take full advantage of Digital and HDTV revolution, gain leadership in HDTV Slim TV segmentthrough OEM and model mix worldwide strategy.5. Study unique product range / pro large to fill market gaps in markets such as Asia and EasternEurope / CIS / South America6. Focus on reduction of costs through reduction of glass, shift to AK mask and reduction of processrejection.Sales Strategy1. Improve relationship with existing clients ; Use of Thomson‟s excellent relations as preferredsupplier to maximize sales
2. Improve service and quality without putting pressure on price structure3. Fetch a better price and avoid crisis of huge stock.4. Leverage Slim product offering5. Launch LCD panels assembly to be a major actor of the Flat Panel Displays market (which isexpected to account for 50% of the market by 2012).6. Benefit from OEM CTV business with the help of Videocon‟s CTV division, invest for new models,introduction of new technologies.7. upgrade to LCDs schemeseasy EMI.Re. 1 offer.8. Improve after sales service9. Free service camp on the wheels.Industrial Strategy1. Consider improvement in production lines set-up: investments, line speed up / mergers? Target is toincrease output and decrease product costs by increasing productivity of existing lines2. This will reduce manpower and overheads per picture tube by 30% that will be redeployed on newactivities in the sites (new technologies)3. Improve the furnace output in the Poland Glass factory by making some changes into furnacesincluding electrical boosting. Consider increasing capacity through one more furnace.4. t is envisaged that 100m€ will be invested in the next 2 years for this purpose5. Expand into LCD panels back-end assembly (from buying LCD arrays from big suppliers like LG,SDI, CMO, AUO, Sharp)Cost Strategy1. Leverage the strong base of Videocon‟s glass business: Thomson-Videocon partnership will have avery strong negotiation position and can reduce impact of glass pricing volatility.2. Reduce production cost by upgrading and improving the production lines. Thomson-Videoconpartnership will have its own base of additional 4 million units CTV (other than India)
3. Necessary to rationalize R & D efforts, necessary to make its cost below 1.5% of salesProduct Development1. i-TV – web enabled TV at the price of 13,900 with exchange offer for an older version.2. TVs With hard disk to store programs.3. Wall mounted Flat CTVs at the price of 12,990.4. Aimed at fulfilling needs of customer who can not buy LCDs but prefer to do away with CTVmodels which occupy space in living rooms.5. CTVs with inbuilt set top box6. Tie up with DTH player and provide annual subscription offer.7. to provide Direct to home services.8. Bluetooth enabled CTV.CHAPTER 4: KEY LEARNING’S FROM THE COMPANY ANDRECOMMENDATIONS:-4.1 Analysis of Net ProfitEARNINGS: Videocon, July- September net profit Rs.1.6 bln, up 7% on year Videocon Industries LtdThursday reported net profit of Rs. 1.6 billion for Jul-Sep, up 7.14% from a year ago.In a news release, thecompany said its net sales in the quarter were Rs. 29.85 billion, up 14% from a year ago.Total expenditurefor the quarter stood at Rs. 25.95 billion, up 14.7% from a year ago.Raw material cost expanded 17.6% toRs. 10 billion and employee cost stood at Rs. 499.4 million, up 47.8% from a year ago.Revenue from theconsumer electronics and home appliances segment was at Rs. 27.31 billion, up 18.6% from a year ago andrevenue from crude oil and natural gas segment was down 20.3% at Rs. 2.54 billion.The company said it hasextended its current accounting year by three months and thus the current year will be of 15 monthsbeginning Oct 1, 2009 and ending Dec 31, 2010.Profit loss account
Profit and Loss account of this firm show that operating income of this firm is increasing. It was5460.25 in Sept 2005, but on Sept 2006 it increasing to 7218.82. This increase shows the growth of this firm.On the other hand, expenses Sept 2005 is 3070.27 Rs. it was also increasing to 4162.74. But expense of thisfirm continuously increasing on the other hand operating income increasing in Sept 2008- 2009 by 590.62.itshow that firm growing rate falling. In short we can say that firm expenditure rate is more than income rate.it shows that firm is doing strongly in the market.Throughout the balance sheetthe firm mainly source of firm money is secured loan because it is increasing continuously, it was 2776.10on Sept 2005 but in Sept 2006 it was 3608, it means firms large amount of money arrange from securedloan. Firm is also getting fund from issuing of share capital firm future power reserve and surplus alsoincreasing it show that increasing rate power. Balance show the financial position of the firm.
4.2Market Share and Growth Rate of VideoconVideocon Industries LtdVideocon holds 25% market share in the consumer goods market in India. It is oneof the largest CPTmanufacturers globally, with operations in India, Mexico, and ItalyVideocon, founded in 1985, is today one of the largest corporate groups in India. It is now venturing intopower and telecom. It is one of the largest manufacturers of Colour Picture Tube (CPT)globally. It has closeto 25% market share in home appliances segment in India and aims to double this business in next fiveyears. Apart from its core businesses, the company isaiming to grow its power and telecom (handset andservices) businesses aggressively through large scale investments.Figure 4.1: Market Share (%) for FY09Videocon Industries is primarily engaged in two core businessesManufacturing, assembly, marketing and distribution of consumer electronic products & homeappliancesConsumer Electronics, Home Appliances & Compressor manufacturing: Products include homeentertainment systems,microwave ovens, Colour Picture Tube (CPT) & liquid crystal display(LCD) televisions, refrigerators, washing machines, airconditioners, small appliances, glassshells, compressors / motors and other componentsThe Company has Research & Development centres located in China, India and JapanDisplay industry and its components: Manufactures colour picture tubes at its facilities in Italy,Poland and ChinaColour Picture Tube (CPT) Glass: Operates manufacturing facilities in India and Poland
The Company, through its wholly owned subsidiaries and JVs, is engaged in exploration activities in oil &gas fields in Brazil, Mozambique, East Timor, Oman and AustraliaEntry into the Telecom business: In March 2010, Videocon Telecommunications Ltd, a unit ofVideocon Industries Ltd, launchedmobile services based on the global system mobile (GSM)platformPower business: Pipavav Energy, the Company‟s subsidiary, is implementing a thermal powerproject in Gujarat with a capacityof 1,200 MW; Videocon is also considering power projects in theother parts of India and evaluating alternate technologies forthe same.Plans to set up three more thermal power generating units with a combined capacity of 4,800MW inMaharashtra,Chhattisgarh and Asansol, with a total investment of USD6.5bnThe equity shares of the Company are listed on the Bombay Stock Exchange and National StockExchange of India; the Global DepositoryReceipts (GDR) and Foreign Currency Convertible Bonds(FCCB) issued by the Company are listed onthe Luxembourg Stock Exchange and SingaporeExchange Trading Securities respectivelyCompany
4.3 SWOT ANALYSISThe SWOT is a strategic planning tool to evaluate Strength(S) Weakness(W) Opportunities(O) & Threats(T)involved in a project, in a business venture or in any other situation requiring a decision. The SWOTanalysis is to explained with help of following diagramStrengths:1. Technological skills2. Leading Brands3. Distribution Channels4. Customer Loyalty/ Relationships5. Production Qualtiy6. Scale7. ManagementWeaknesses:1. Absence of important skills2. Weak brands3. Poor access to distribution4. Low customer retention5. Unreliable product/ service6. Sub-scale7. ManagementOpportunities:1. Changing customer tastes2. Technological Advances3. Change in government politics4. Low personal taxes5. Change in population age6. New distribution channel
Threats:1. Changing customer base2. Closing of geographic markets3. Technological advances4. Changes in government politics5. Tax increases6. Change in population age7. New distribution channels
CHAPTER 5: RESEARCH METHODOLOGY5.1 OBJECTIVE OF THE STUDYThe objective of the project is further classified into primary and secondary objective.Primary objective:-Find out the market size of refrigerator (in percentages) of different brands in NCR. For thispurpose, the researcher has to do a survey by interviewing the households and findingout the market share of Videocon brand in accordance with other brands.Secondary objective:-To know where does the Videocon brand of refrigerator stands in comparison to other brand and whatare the various aspects where it needs to improve in order to remain in the market and compete with otherbrands.5.2 RESEARCH METHODOLOGYA survey has been done and data is collected from various company`s purchase manager alloverGuragon and some part of Delhi. Primary data has been collectedbyinterviewing customers and purchasemanagers, while secondary data has been collected from the sites of Videoconworld.com.Sampling plan for surveySampling units Purchase manager and customerSampling size 5 companies and 200 customerSampling area Gurgaon
5.3QUESTIONNAIREMETHODOLOGYThe questionnaire has to be self administered in order to know the exact views & some other suggestions ofthe purchase manager and customers the questionnaire were administered in the form of a small interview.The advantages of the questionnaire method is its versatility, almost every problem of making research canbe approached from the questionnaire standpoint. Every marketing problem involves people & its solutioncan be obtained by asking these people about the problem.Data analysis procedure :-The data has being analyzed using excel wherein various factors have been determined & theirfrequencies have been measured. Some of the factors to determine are as following.Brands:-The various brands selling in the market from the dealer‟s point of view the predominant brands interms of sales, after sales services & services provided quality etc.Awareness level :-The awareness level regarding the different types of air conditioners is judged according to thepeople purchasing it.Purchase manager and customer network:-Various attributes were rated & then ranked by the purchase manager and customer involved inpurchase of the product namely, excellent, good, satisfactory & poor and what changes they wantto improve Videocon A.C.
Positioning level:-The positioning of air conditioners is judged by the total number of customers asking for the brandname & are willing to pay for the same. This is also termed as the pull factor.DATA ANALYSIS AND RESULT:-The market survey showed that the sales volume of Videocon is the highest followed by Daikain,Carrier, Hitachi, LG and other AC companies.
QUALITY OF AIR CONDITIONERS:-Daikain serves as the top leader in providing best quality to its customers, followed by Hitachi andthen Videocon.CUSTOMER CONSIDERATION OF PRICE:-
According to the market survey conducted 300 company`s manager and customers considered priceas a major determinant while buying Videocon air conditioners, because Videocon started newscheme “Corporate Sales”.POSITIONING OF VIDEOCON AIR CONDITIONER IN THE MARKET:-Amongst the dealers surveyed 41 % agreed that the positioning of Videocon air conditioner in themarket is excellent whereas 33% feels that it is good , & 17% says that is satisfactory andremaining 13% says poor.
MAINTAINENCE OF GOOD PUBLICRELATION :-According to the market survey conducted, About 77% of the correspondent say that Samsungmaintains a good public relation with its dealers whereas 23% does not have the same response.
INSTALLATION AND OPERATION:-According to the market survey conducted, Hitachi leads the market in providing services interms of installation & operation followed by Videocon, Daikain, Blue Star, Carrier, Voltas, LGand then ogeneral.
ADOPTION OF VARIOUS PROMOTIONAL TOOLS:-Advertisement is regarded as one of the major promotional tools with a share of 51%followed by sales promotion, personal selling and direct marketing.
MAINTAINENCE OF SUFFICIENTNET WORK:-Amongst the Managers, dealers, Customer surveyed 79% said that Samsung maintained asufficient network whereas while 21% provided negative response.
CHAPTER 6: FINDINGSFINDINGSWith strategically located manufacturing bases and an enviable distribution network of around 90 branchoffices, 10,000 distributors & 400 after-sales service centers across India, VIL enjoys a unique 80% pluspenetration in the market place.A high degree of backward integration ensures that VIL has most of the vital components under its controland bestows upon it unique benefits over competition – uninterrupted supply, shorter turnaround time, costadvantage and quick adaptation to changing customer needs.VIL is looking to strengthen its presence through a host of big ticket acquisitions/asset buyouts – DaewooElectronics (South Korea), Chunghwa Picture Tubes (Taiwan), Pioneer (Japan) and other brown-fieldexpansions will help VIL expand its horizons.VIL‟s glass division, VNG, is the largest single location glass shell plant, enjoying economies of scale and aleading position in the global glass shell industry. Additionally, integration of its acquired Thomson ColourPicture Tube (CPT) plants with its Indian business would not only reduce the cost of production, but alsogive its glass shell units a ready market.The Thomson acquisition includes R&D centres and access to over 2,000 patents, which would enable VILto launch new products as well as counter the threat posed by the conventional TV market being rapidlyovertaken by hi-tech products in overseas markets.Increasing demand & high prices in the oil & gas industry will not only lead to improved realizations, butalong with low operating costs that the Ravva oil & gas field enjoys, it can translate into a bonanza for VIL.VIL has earmarked USD 13 MM (FY07) & USD 24 MM (FY08) as capex for its oil & gas business, in orderto increase the extraction from the field. It has also embarked upon Infill Well Drilling and exploration &production of three new blocks; LM-403, Back Fault Block & LO-110, all in the Ravva field. The probablereserves in the Ravva Oil field are estimated to be as high as 400 MM barrels, of which only about 160 MMbarrels have been produced. Thus, a huge upside potential exists for the company.VIL is exhibiting substantial panache by fruitfully working towards bidding for and more often than not,attaining exploration and production rights in many countries around the world. It is well on its way toearning remarkable profits & achieving a prominent global standing.
CHAPTER 7: CONCLUSIONS AND SUGGESTIONSCONCLUSIONS AND SUGGESTIONSTurbulent is the word that aptly describe the scenario in CTV industry last financial year. Marketers byfrequent price cuts and larger than live Marketing game plans, competition reached its new highs and lows.It is no longer sufficient to just be competitive, a company which has to survive has got to have competitiveadvantage. One needs to take strategic initiative in the short run to achieve the desired “positioning” infuture. One has to foresee „tomorrow‟.Understanding competition today involves three levels:Competition for intellectual leadership for new ideas that create new advantages.Competition for translating these ideas into product/service faster than others.Competition for market share.Do not nature any PARADIGMS because today “anything is possible”Search for newer markets than expanding your customer base.Come out with state of the art, feature packed affordable and competitive advantageous products.Set Benchmarks for growth.Improve up on distribution channels for viable coverage of the market.Wear out competition through trend setting, inimitable tactical moves based on our infrastructure strengths.The strategic intent should be clear down the management.Work on your strengths i.e. Infrastructure, financial base, backward integration.POP and MERCHANDISING material should be mad as per international market.CORPORATE TRAINING PROGRAMME for Development of manpower from external faculty.We have so far identified the various areas on which Videocon and other major Indian companies need toimprove upon to achieve the desired level of competitiveness. Only these improvements would giveVideocon and the other Indian companies base to compete with the MNCs and help the Indian companies toreduce the impact of MNCs on the Indian Market in the future. Indian manufacturers will have to reactquickly because any delay in reacting to the threat posed by the MNCs would only give the MNCs time toestablish themselves in the market. With their expertise and financial capacity they would be nearlyimpossible to compete with once they get a firm foot hold in the market. The future
But the battle has only started, and the foreign companies are here for the long term. They can sustain lossesfor years to come in order to gain market share. What they are doing at present, is building up distributionnetworks to cover every nook and corner of the country and, setting up manufacturing facilities.Only those Indian manufactures which have a strong focus on manufacturing and technological up gradationwill survive in the long run, although with a much smaller market share than they have at present. Smallcompanies will be sidelined totally and will exit from the CTV market altogether.Videocon has always been driven by its Value -for-money strategy. The company needs to identify criticalsuccess factor and work assiduously towards achieving it.SUGGESTIONSTo strengthen and maintain & its leadership status, the Videocon group has clearly charted out its course forthe future. Aggressive development is in full swing at the R & D Centres to bring out state-of-the-arttechnologies including True Flat, Slim, Extra Slim, Plasma & LCDs, at the earliest. Cost rationalizationprocesses - are in various stages - including rationalizing factories in Europe, increasing automation andimprovement of efficiency in China, accessing flass shells from India for international CPT facilities and alot more - are in various stages of implementation Internationally all existing client relationships are beingstrengthened. The cost competitiveness and increase in capacity in Polland has opened up big opportunitiesin the OEM business. Last but not the least, in the domestic market consolidation with multiple brands pavesthe way for an unassailable lead in the market.In the Oil & Gas business, having all the basic operator capabilities of a prospecting entity, the group islooking to add more explorations and production depth as also oil bearing assets. The group will also get intogas distribution in India significantly.