Prepared ByNilesh Sen      Nikita BansalSachi Saraf      Rahul SharmaSiddarth Shah      Jaydeep Budeliya
Distribution of manufacturers of CTVs in terms of productionvolume         Production                           Year      ...
The Indian TV Market and its Future
VIII Five Year plan Targets for TVs            ( Quantity in millions , value in Rs. Millions ) (Base Price _1988)        ...
Saturation Levels of TV as on 1991           Income                   No of sets owned (000s)        %          Category  ...
Estimated Number of House Hold Income Class wise                          (000) (As on 1990)Income Category               ...
TV sets Owned per (000)               InhabitantsWorld                              69           Algeria                  ...
1989’s    Growth in     MajorScenario     1990       ExportersPrice of   B & W tube   USSR,South                          ...
DealerPrice   Promotion                    Network
Excise Duty formed a Significant Component of the Finalprice of a TV in India.The Government saw TVs as luxury items and...
Excise Duty Absorption by Income Categories          Year         Majority Buyer of CTV Excise Duty Paid                  ...
Foreign Brand Names• According to Libralisation Policy the Govt.  alowed the use of Foreign Brand names.• At these prices ...
Import-Export Policy• In Budget for 1991-92 the customs duty on  raw material,individual parts,capital goods and  finished...
Electronics Industry Analysis           Porter’s five forces model(a framework for analyzing a particular industry)
Threat of New Entrants (Low)Barriers to              Product Differentiation  Entry              Capital Requirements     ...
Bargaining Power of Suppliers (Medium)Suppliers exert powerin the industry by:                        • Very low Manufactu...
Bargaining Power of Buyers                       (Low to Medium)• Products are fairly undifferentiated      Buyers compete...
Threat of Substitute Products (Low)Productswith similar   • There are few substitutes from otherfunction       industries,...
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Television

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Television

  1. 1. Prepared ByNilesh Sen Nikita BansalSachi Saraf Rahul SharmaSiddarth Shah Jaydeep Budeliya
  2. 2. Distribution of manufacturers of CTVs in terms of productionvolume Production Year p.a 1982 1985 1989Less then 500 17 31 46501 - 2500 9 32 242501 - 5000 5 16 125001 - 10000 3 10 810001 – 50000 - 20 2750001 - 100000 - 9 2100001 - 200000 - - 1Share (%) ofTop 5 companies 44 29 32.5Top 10 companies 64 50 52.00
  3. 3. The Indian TV Market and its Future
  4. 4. VIII Five Year plan Targets for TVs ( Quantity in millions , value in Rs. Millions ) (Base Price _1988) year 1990-91 1991-92 1992-93 1993-94 1994-95B&W Qty 5.5 6 6.5 7.3 8.0 Value 11,000 12,000 13,200 14,600 16,000Colour TV Qty Value 2.0 2.5 3.0 3.5 4.0 13,500 16,850 21,000 20,500 30,000
  5. 5. Saturation Levels of TV as on 1991 Income No of sets owned (000s) % Category B&W Colour Total Saturation (household)Less then 12500 4000 700 4700 5.612501 – 25000 9000 10500 10500 27.325001 – 40000 7300 9300 9300 64.540001 – 50000 1700 3500 3500 92.5Greater then 50000 1100 2300 2300 111.8
  6. 6. Estimated Number of House Hold Income Class wise (000) (As on 1990)Income Category Rural UrbanLess then 11000 68,914 14,89511001 – 22000 24,445 13,94022001 – 36000 7,232 7,17536001 – 50000 1,191 2,591Greater then 50000 552 1,505Total 1,02,334 40,106
  7. 7. TV sets Owned per (000) InhabitantsWorld 69 Algeria 84 Egypt Canada 586 Mexico 124 USA Brazil 812 Japan 194 589Asia 315 Singapore 426 Hong kong China 127 Thailand 108 Vietnam Malaysia 37 India 144 33
  8. 8. 1989’s Growth in MajorScenario 1990 ExportersPrice of B & W tube USSR,South East Indian and Colour Asia,West TVs tube Asian
  9. 9. DealerPrice Promotion Network
  10. 10. Excise Duty formed a Significant Component of the Finalprice of a TV in India.The Government saw TVs as luxury items and hence TVswere subject to increase in taxation in Virtually every budget.In 1991-92 the production had fallen to as low as o.8 ML.sets as compared to the peak level of 1.3 ML sets in 1988.In 1991-92 budget excise duties on both colour picture tubesand Colour TVs were increased.The Special excise duty on Tvs increased from 5% to 10%and excise duty on B&W TVs abolished.The result was a drastic reduction in sales of TVs in 1991-92.The drop in CTV sales was especially sharp from 1.2 ML to0.92 ML.
  11. 11. Excise Duty Absorption by Income Categories Year Majority Buyer of CTV Excise Duty Paid Income Category On TV (Rs. P.A.)1985 50,000 9001986 36,000 15001987 36,000-50,000 17501988 36,000-50,000 20001989-90 22,000-36,000 23751991 11,000-22,000 3125
  12. 12. Foreign Brand Names• According to Libralisation Policy the Govt. alowed the use of Foreign Brand names.• At these prices and tariff rates the Indian market is to small and not attractive enough to attract Japanese.
  13. 13. Import-Export Policy• In Budget for 1991-92 the customs duty on raw material,individual parts,capital goods and finished componentsfor the electronics industry had been reduced by 10%.• Import of capital goods was liberalized with a concessional duty of 15% linked to export obligation.• According to an analysis of 1992-93 the export would suffer by 31%.
  14. 14. Electronics Industry Analysis Porter’s five forces model(a framework for analyzing a particular industry)
  15. 15. Threat of New Entrants (Low)Barriers to Product Differentiation Entry Capital Requirements Switching Costs Technology, Know-how and Innovation Government Policy
  16. 16. Bargaining Power of Suppliers (Medium)Suppliers exert powerin the industry by: • Very low Manufactures of B & W and* They raise Prices CTV sets. • Suppliers are forced to cut their pricesPowerful suppliers or go out of businesscan in industry makeprofitability
  17. 17. Bargaining Power of Buyers (Low to Medium)• Products are fairly undifferentiated Buyers compete with the supplying• Buyers face few switching costs industry by:• Buyers are price sensitive and demand * Priceshigh quality
  18. 18. Threat of Substitute Products (Low)Productswith similar • There are few substitutes from otherfunction industries, if any.limit theprices firmscan charge

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