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V.I.M.
Page 1 of 80
Project Report
On
To Map Brand Performance & Strategies of
Videocon Brand vis-à-vis Competition for
Co...
V.I.M.
Page 2 of 80
TO WHOM SO EVER IT MAY CONCERN
This is to certify that Anshul Ganesh Mantri is a bonafide student of V...
V.I.M.
Page 3 of 80
V.I.M.
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ACKNOWLEDGEMENT
A Project usually falls short of its expectation unless guided by the right person at ...
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Sr. No. Topic Page No.
01. Executive Summery 06
02. Corporate Profile 07
03. Videocon Board of Governa...
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Executive summery
It is really a dream for any company to occupy the top brand in there brand basket o...
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Corporate Profile
The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to se...
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Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education
in Ahmednaga...
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Videocon Board of Governance
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Logo Logic
This is the new Videocon symbol. It reiterates the ethos of a company dedicated to
maintai...
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Corporate Governance
Social Responsibility
Company's Philosophy on Code of Governance:
The company's ...
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Plant Locations
Videocon International Limited
14 Km Stone, Aurangabad-Paithan
Road
Village Chitegaon...
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Videocon - Multi Brand Strategy
Marketing of two or more mutually competing products in a given marke...
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Disadvantages
May lead to cannibalization of brands in a given market
Investing in different brands r...
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Will Multi Branding Strategy for Videocon group help Videocon Brand?
Bigness of the group has a posit...
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Brand Basket
Tie-ups with Global Leaders
Partner Product Nature Of Tie-Up
Toshiba Corp Colour TV
Tech...
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VIDEOCON SWOT
STRENGTH
Technology:
Global acquisition of Thomson and technological tie ups with major...
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WEAKNESS
Multi brand strategy is diffused in certain areas.
Most product development cycles start fro...
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THREAT
Growth of alternative technologies.
Continuous price pressures driven by capacity adjustment t...
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Brand Strategies
The year 2006 comes at a time when Videocon is fresh from its acquisition of Thomson...
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The SAP ERP 2004 business solution has resulted in integration of processes to strengthen
resources, ...
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Even as it looks in the direction of global supremacy, Videocon has always kept its finger on
the pul...
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Introduction, Strengths, Weakness
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AKAI
Founded in 1929, Tokyo, Japan, AKAI has engaged in offering quality home entertainment
products ...
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ELECTROLUX
Focused on providing value, Electrolux current ergonomically superior and technologically
...
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GODEREJ
Goderej is today one of the largest engineering and consumer products company in the
country ...
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HAIER
Haier Appliances (India) Private Limited is a wholly-owned subsidiary of Haier Group. Haier
Ind...
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LG
LG Electronics vision for the 21st century is to become a true global digital leader through
fast ...
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ONIDA
Mr.G.L.Mirchandani and Mr.Vijay Mansukhani started Onida in 1981 in Mumbai. In 1982,
Onida star...
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PHILIPS
Philips started operations in India at Kolkata (Calcutta) in 1930. Established as Philips
Ele...
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SAMSUNG
Samsung India is the hub for Samsung s South West Asia Regional operations. The South
West As...
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SONY
One of the most recognized brand names in the world
Sony Corporation was founded in 1946, and si...
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WHIRLPOOL
Whirlpool, is the single largest home appliances company in the world, has a unique story.
...
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Proposed Title of the Study
Broad Overview of the Study
Objective
To Map Brand Performance & Strategi...
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Research methodology
Area of operation
Sample size
The following methodology was adopted for carrying...
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Colour Television
Market Availability
16
12 12 11 11 10
7 7 6
4 4
15
9 8 8 7
12
18
5 4
9
5
0
5
10
15
...
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Average NO.of Models Available at Store for Respective Brand's.
2
3
1
2
2
1
1
2
2
0
1
0
1
1
1
0
1
0
0...
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Buying Aspects
21
33
17
8
2
14
5
0
5
10
15
20
25
30
35
PRICE
FEATURE
BRAND
NAME
OFFER
SCHEME
PRODUCT
...
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Flat CTV Market Share
LG
33%
ONIDA
11%
SANSUI
7%
PHILIPS
7%
VIDEOCON
7%
AKAI
2%
Other
7%
SAMSUNG
26%
...
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Conventional CTV Market Share
LG
29%
VIDEOCON
14%SANSUI
10%
PHILIPS
8%
SAMSUNG
7%
AKAI
5%
Other
15%
O...
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Market Availability of Product
0
5
10
15
20
25
30
35
LG
WHIRLPOOL
GODREJ
SAMSUNG
VIDEOCON
OTHER
ELECT...
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Average No. of Model Available in Market
6
5
3
4
2
3
1
4
3
5
4
1
2
0
0
1
2
3
4
5
6
7
LG
WHIRLPOOL
GOD...
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Customer Buying Aspects
0
5
10
15
20
25
30
PRICE
FEATURE
BRAND
NAME
OFFER
SCHEME
PRODUCT
QUALITY
WARE...
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Direct Cool (DC)
Market ShareLG
29%
WHIRLPOOL
25%
SAMSUNG
14%
VIDEOCON
8%
OTHER
5%
GODREJ
14%
ELECTRO...
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Frost Free (FF)
Market Share
WHIRLPOOL
21%
SAMSUNG
21%
VIDEOCON
4%
LG
34%
GODREJ
10%
OTHER
5%
ELECTRO...
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Market Avalibility of WM in Market
24
19 18 17
9 8
5
0
22
17
13 15
8 7
4
14
0
5
10
15
20
25
30
LG
WHI...
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Average No. of Washing Machine at Store
2
3
2
1
2 2
0 0
1
2
1 1
0
1 1 1
0
1
2
3
4
LG
WHIRLPOOL
VIDEOC...
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BUYING ASPECT
15
24
18
10
7
10
15
0
5
10
15
20
25
30
PRICE
FEATURE
BRAND
NAME
OFFER
SCHEME
PRODUCT
QU...
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Semi-Automatic (SA)
Market Share
OTHER
9%
ELECTROLUX
3%
WHIRLPOOL
15%
VIDEOCON
18% SAMSUNG
21%
LG
34%...
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Fully-Automatic (FA)
Market Share
WHIRLPOOL
16%
OTHER
9%
SAMSUNG
17%
LG
31%
ELECTROLUX
6%
VIDEOCON
7%...
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Conclusion
CTV
o Shift from CTV (Conventional) to CTV (Flat) is the major contributor for TV demand
o...
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Findings
Dealer Influenced market
o Dealer recommendation crucial
o Price/ margins may play a major r...
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Limitation
Market area of survey is of two different sales areas.
The combination of city is also of ...
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Recommendations
Distribution channel should be improved so as the flow of the goods in market will be...
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Bibliography
Research Methodology, Methods and techniques
C R Kothari
Market Research (G. C. Berry)
M...
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Questionnaire
SHOW ROOM NAME : __________________________________________
ADDRESS : _________________...
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DIRECT COOL:
MOST SELLING PRODUCT
1) __________________________
1 2 3
MODEL
NO:
MRP:
MOP:
USP:
2) ___...
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WASHING MACHINE
NO OF BRANDS & NO OF MODELS AVILABLE AT STORE
BRAND SEM -
AUTOMATIC
FULLY -
AUTOMATIC...
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FULLY - AUTOMATIC:
MOST SELLING PRODUCT
1) __________________________
1 2
MODEL
NO:
MRP:
MOP:
USP:
2)...
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CONVENTIONAL CTV:
MOST SELLING PRODUCT
1) __________________________
1 2 3
MODEL
NO:
MRP:
MOP:
USP:
2...
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The visited Showrooms Photos Shows the Display
Arrangement and the Product Presence in the Market
Pla...
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Transcript of "To map brand performance of videocon brand and competition for colour television refrigera washin"

  1. 1. V.I.M. Page 1 of 80 Project Report On To Map Brand Performance & Strategies of Videocon Brand vis-à-vis Competition for Colour Television, Refrigerators & Washing Machine For Central Marketing (Aurangabad) IN PARTIAL FULFILLMENT OF MASTER OF BUSINESS ADMINISTRATION UNIVERSITY OF PUNE By Anshul Ganesh Mantri M.B.A (2005 - 2007) GUIDED BY MR. Murli (VIDEOCON) PROF. SMITA SOVANI (VIM) Vishwakarma Institute of Management Kondhwa Buduruk, Pune 411048
  2. 2. V.I.M. Page 2 of 80 TO WHOM SO EVER IT MAY CONCERN This is to certify that Anshul Ganesh Mantri is a bonafide student of VISHWAKARMA INSTITUTE OF MANAGEMENT. He has successfully carried out his summer project titled To Map Brand Performance & Strategies of Videocon Brand vis-à-vis Competition for Colour Television, Refrigerators & Washing Machine at Videocon Industries Ltd, Central Marketing, Aurangabad in the partial fulfillment of Master of Business Administration course of Pune University (2005 - 2007)
  3. 3. V.I.M. Page 3 of 80
  4. 4. V.I.M. Page 4 of 80 ACKNOWLEDGEMENT A Project usually falls short of its expectation unless guided by the right person at the right time & good opportunities. Success of a project is an outcome of sincere efforts, channeled in the right direction, efficient supervision and the most valuable professional guidance. This project would not have been completed without the direct and indirect help and guidance of such luminaries. They provide me with the necessary recourses and atmosphere conductive for healthy learning and training. I am indebted to Videocon Industries Ltd for providing me an opportunity to undergo my project with them. I am great full to Mr. Sunil Tandon, VP - Marketing, Videocon Group for giving the opportunity to work with his team of managers at Videocon central marketing office. At the outset I would like to take this opportunity to gratefully acknowledge the kind and patient guidance I have received from my project guide Mr. Murli Marketing Manager and his assistance managers Mr. Gauraw & Mr. Imtiaz without there critical evaluation and suggestion at every stage of the project, this report could not have reached its present form. In addition, my internal guide Prof. Mrs. Smita Sovani has critically evaluated my each step in developing this project report I express my sincere thanks to Prof. Yuvraj Lahoti (Marketing) and Dr. Sharad Joshi, Director, Vishwakarma Institute of Management, Pune, for their valuable advice and guidance. They are always a source of inspiration for me. My thanks are also due to the faculty and non-faculty member of Vishwakarma Institute of Management, Pune, for their cooperation and support in completion of my project. I would also like to thank all the Respondents who gave some of their valuable time to me. Finally I would like to thank My Family Members and My Friends for their valuable inputs. Anshul Mantri - mantri.anshul@rediffmail.com
  5. 5. V.I.M. Page 5 of 80 Sr. No. Topic Page No. 01. Executive Summery 06 02. Corporate Profile 07 03. Videocon Board of Governance Chart .. 09 04. Logo Logic . 10 05. Corporate Governance ... 11 06. Social Responsibility ... 11 07. Plant Locations ... 12 08. A Multi Brand Strategy ... 13 09. Brand Basket .. 16 10. Business Portfolio .. 17 11. Videocon Group SWOT . 18 12. Brand Strategies .. 21 13. Other Brands Introduction, Strengths, Weakness.... 24 14. Current Situation Brand V/S Price Positioning . 34 15. Research Methodology 35 16. Graphs & Analysis a. Consumer Electronics i. Colour Television .... 38 b. Home Appliances i. Refrigerator . 43 ii. Washing Machine 48 17. Conclusion . . 53 18. Findings 54 19. Limitation . 55 20. Recommendation . 56 21. Bibliography . 57 22. Annexure .. 58
  6. 6. V.I.M. Page 6 of 80
  7. 7. V.I.M. Page 7 of 80 Executive summery It is really a dream for any company to occupy the top brand in there brand basket of company profile by acquisition & take over just within a short span two decade & Videocon did it? Company started in 1979 in Aurangabad, and now one of the biggest manufacturers of consumer electronics and home appliances in world with spreading the profile in Oil & Gas, Glass Manufacturing too. As a part of my project I tried to analyses and explore the market potentials in Aurangabad- Jalana & Pune-Ahmednagar city. The area is one of the most potential markets of Maharashtra. Area of operation was the market of Aurangabad-Jalana & Pune-Ahmednagar city which in itself a big commercial place of marketing and sales in Maharashtra region of western India. I surveyed all the market places of Aurangabad-Jalana & Pune-Ahmednagar city while doing the project. The research methodology adopted was in depth interview of dealer & shop owners with respect to the questionnaire so as to understand the market trend and brand performance. After analysis of data it was found that Videocon has a vast scope and space to cover the market, as compared to other MNCs are spreading there presence through lightening speed. The exclusive company showrooms of other MNCs are making bang in the market. Thus Videocon will come over all other brands with his state of art manufacturing technology & marketing combination. Videocon is delivering quality product at optimum price and gaining place in top 5 brands in market. The reliance and empathy of the Indian s on there Indian multinational - Videocon products are the real driver of the company to boost the consumer electronics & home appliances, specially the Colour Television, Refrigerator, Washing Machine in 21st century
  8. 8. V.I.M. Page 8 of 80
  9. 9. V.I.M. Page 9 of 80 Corporate Profile The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979. Today the group operates through 4 key sectors: Consumer Durables Thomson CPT CRT Glass Oil & Gas Consumer Electronics, Home Appliances & Compressor manufacturing in India We enjoy a pre-eminent position in terms of sales and customer satisfaction in many of our consumer products like Colour Televisions, Washing Machines, Air Conditioners, Refrigerators, Microwave ovens and many other home appliances, selling them through a Multi-Brand strategy with the largest sales and service network in India. Refrigerator manufacturing is further supported by our in-house compressor manufacturing technology in Bangalore. Display industry and its components With the Thomson acquisition Videocon has emerged as one of the largest Colour Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to lead through new innovative technologies like slim CPT, extra slim CPT and High Definition 16:9 formats CPT. Colour Picture Tube Glass Videocon is one of the largest CPT Glass manufacturers in the world with a high level of experience and technical expertise operating through Poland and India. Videocon will leverage on this synergy after the Thomson acquisition to internally source glass for its CPT manufacturing increasing efficiencies and lowering costs. Oil and Gas An important asset for the group is its Ravva oil field with one of the lowest operating costs in the world producing 50,000 barrels of oil per day. The group has ambitious plans for expansion in this sector globally.
  10. 10. V.I.M. Page 10 of 80 Shri Nandlal Madhavlal Dhoot, the founder of the Videocon Group, completed his education in Ahmednagar and Pune. As a next logical step to vertical integration, he boldly took upon an entrepreneurial venture by importing machinery from Europe to set up the Gangapur Sakhar Karkhana (Sugar Mill) in 1955. Through a technical tie up with Toshiba Corporation of Japan, he launched India's first world-class color Television: Videocon. Today, Videocon is household name across the nation- India's No. 1 brand of Consumer Electronics & Home Appliances, trusted by over 50 million people to improve their quality of life. The year 2005 marks a milestone in the history of Videocon with the acquisition of the complete Colour Picture Tube operations of the Thomson group and the Indian operations of AB Electrolux, Sweden. Further subscribing to their faith in Videocon, Thomson and Electrolux bought about 15% and 5% stake respectively in Videocon Industries Ltd., our flagship company having a market capitalization of around USD 2.5 billion. The group today is one of the largest manufacturers of Colour Picture Tubes and Glass shells from state of the art units in Mexico, Italy, Poland, India and China, which form the backbone of many Colour Television manufacturers around the world. Our Oil & Gas operations contribute to India s ever-growing demand for energy and developmental needs. Videocon group is more ready than ever for further expansion and serving to continue spreading happiness to millions of people around the world through its products.
  11. 11. V.I.M. Page 11 of 80 Videocon Board of Governance
  12. 12. V.I.M. Page 12 of 80 Logo Logic This is the new Videocon symbol. It reiterates the ethos of a company dedicated to maintaining the highest international 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 international technology to suit Indian needs, and crafting it to improve the quality of life as million of satisfied customers will agree. The symbol of Videocon asserts its passion for impact and the two E s on the ethic side represent the wide spectrum of interest raining from Electronic to Energy . Along with the steely glint, this communicates the group's global ambition, its strength, sterling credentials and innovative drive. A symbol that proclaims a paradigm shift. A sign that represents the new force that is Videocon. Thus recapitulating our principle of reaching out and touching the lives of millions of people. Worldwide. A company dedicated to maintaining the highest international standard of excellence though quality, Technology and innovation. For over a decade now, Videocon has brought the latest and very best in consumer electronics and home appliances, successfully adapting the best of international technical to satisfy customer will agree a symbol that proclaim a paradigm shifts a sign that new force that is Videocon. Thus recapitulate our principle out and touching live million of people.
  13. 13. V.I.M. Page 13 of 80 Corporate Governance Social Responsibility Company's Philosophy on Code of Governance: The company's philosophy on corporate governance enshrines the goal of achieving the highest levels of transparency, accountability and equity in all spheres of its operations and in all its dealing with the shareholders, employees, the government and other parties. The company believes in the philosophy on code of corporate governance, which provides a structure by which the rights and responsibility of different constituents, such as the board, employees and shareholders are carved out. In carrying out this, it is ensured that the company's objectives are well defined and performance against those objectives are adequately measured and monitored. Hospital In the memory of our founder Videocon runs a world class hospital with the latest equipments, MRI, CT scan machines run by dedicated doctors specializing in Cancer and heart surgery. The hospital is 100% charitable and caters to the people in Indian villages, which cannot even support their families let alone afford medicines. Schools The group runs a world class school dreamt by our LATE founder in the village of Gangapur, dedicated to giving high quality high school education to underprivileged girls inspiring them to aim higher and work for the development of the country. Cricket The Videocon School of cricket was launched in Kolkata to train budding talent in the age group of 10 to 17. It aims to put about 700 students through the paces every year. Sponsorship of cricketing events across the globe underlies Videocon's commitment and passion for sports as well as its goal to connect with a global audience. Videocon is inspired heavily by the uplifting values perpetuated by sports. Its ability to draw people together irrespective of differences in race, gender, religion and country. Unity of spirit and purpose is ultimately what builds bridges between diverse cultures.
  14. 14. V.I.M. Page 14 of 80 Plant Locations Videocon International Limited 14 Km Stone, Aurangabad-Paithan Road Village Chitegaon,Tq- Paithan Dist: Aurangabad-431105 Videocon Appliances Limited 15 Km Stone, Aurangabad-Paithan Road Village Chitegaon ,Tq- Paithan Dist: Aurangabad-431105 Videocon Communications Limited Gut No 350, Bhalgaon Dist: Aurangabad 431210 Applicomp (India) Limited Survey No-6 To 11 Krishna Sagar Village Attibele, Hosur Road Bangalore -562107 Indian Refrigerator Co. Ltd Plot No-72 (Phase -1) Sipcot Industrial Complex Hosur 635126 Kitchen Appliances India Ltd Sector V, Block B.P Salt Lake City, Kolkata 700 091 Millennium Appliances India Ltd Hardwar Park, Survey No-1/1 Village Imarat Kancha,Maheshwaram Mandal Dist. Ranga Reddy 500 005 Videocon Narmada Glass P.O Box No-68, Videocon House Village Chhavaj, Bharuch 392002 Office Locations Videocon International Ltd. Shenzhen Representative Office Room 5106, 51st Floor, Diwang Commercial Centre 5002, Shun Hing Square, Shennan Road East, Shenzhen, China Phone No. +86-755-25833-845 Upto 850 Thomson 46, Quai A. Le Gallo 92648 Boulogne Cedex - France Phone No. +33-141-86-54-11 Thomson Displays Polska Sp. Z O O Ul. Gen. L. Okulickiego 7/9 05-500 Piaseczno Poland Phone No. (48 22) 7571
  15. 15. V.I.M. Page 15 of 80
  16. 16. V.I.M. Page 16 of 80 Videocon - Multi Brand Strategy Marketing of two or more mutually competing products in a given market or different markets under different brand names by the same company The basket of brands can be Brands built internally Acquired brands Brands through joint ventures Gain of marketing rights Why companies opt for a multi brand strategy? To differentiate it s offering to different market segments To get maximum mileage out of established brands that it has acquired To protect the interest of the mother brand To create internal competition to promote efficiency To increase sales further without sacrificing on profitability Advantages Enables to meet the needs of different groups of customers and to react to the specific requirements To attract and catch brand switchers Can function as S.B.U's which act as profit centers Failed brands do not affect image of other existing brands Brands are created to protect the parent brand Possibility of entering new product lines Results in increase in shelf space Higher penetration Avoid dependence on few brands Better economies of scale
  17. 17. V.I.M. Page 17 of 80 Disadvantages May lead to cannibalization of brands in a given market Investing in different brands results in excessive cash flows Cost and time for promoting a new brand is high, so needs patience Brands will not be able to capitalize from a strong corporate name An acquired brand may not fit culturally in the new brand architecture Situation mid- Nineties Videocon was the No 1 brand Increasing competition expected from new entrants, especially those who were Globally strong Ready to invest in Indian market Increasingly difficult for Videocon to increase market share Was the brand strong enough to withstand the onslaught of MNC BRANDS? Videocon group goes for Multi Brand Strategy To protect mother brand To increase overall market share for the group In-turn result in more efficient utilisation of group s manufacturing facilities How is Multi Brand Strategy helping Videocon group? Helps Videocon group avoid dependence on few brands Helps Videocon group avoid dependence on few dealers More efficient utilisation of manufacturing capacities Better economies of scale Failed brands in a market do not affect the image of other existing brands of Videocon group in that market As product holding period reduces, the different brands of Videocon group try to address markets from various angles to attract and maintain the many Replacement customers Career path opportunities across Videocon group Can help Videocon group achieve 100% penetration with at least 2 of our brands present in each outlet?
  18. 18. V.I.M. Page 18 of 80 Will Multi Branding Strategy for Videocon group help Videocon Brand? Bigness of the group has a positive rub-off on the mother brand Videocon Economies of scale advantage also flow to Videocon: Media costs Service Logistics Manufacturing Engages competition to fight on several fronts Strong competitive challenge within the group motivates Videocon to keep on growing Investment and focus on mother brand to drive its growth
  19. 19. V.I.M. Page 19 of 80 Brand Basket Tie-ups with Global Leaders Partner Product Nature Of Tie-Up Toshiba Corp Colour TV Technical Collaboration-Brand Arrangement Samsung Electronics Fly Back Transformers, Tuners Technical Support Matsushita Electric Washing Machine Technical Collaboration Matsushita Electric Air Conditioner Design & Drawing Matsushita Electric Refrigerator Design & Drawing Sansui Electric Co. Ltd Audio Products and Colour TV ODM for Indian Market Techneglas Glass Shell Technical Collaboration Akai Audio Products and Colour TV ODM for Indian Market Hyundai Colour TV ODM for Indian Market Electrolux AB Sweden Refrigerator, Air Conditioner and Washing Machine 1. ODM & Indian Market 2. Sourcing of components for Global Market 3.ODM for Global market
  20. 20. V.I.M. Page 20 of 80
  21. 21. V.I.M. Page 21 of 80
  22. 22. V.I.M. Page 22 of 80 VIDEOCON SWOT STRENGTH Technology: Global acquisition of Thomson and technological tie ups with majors like Toshiba, Panasonic, Matsushita, Samsung & others have given access to patents and a strong R&D base Global quality certification like CE, UL, VDE, SASO and IRAM help in better quality perception and global expansion Market: Domestic leadership through multi brand strategy. 80% plus penetration at dealer level. Closest to market and for the market - strategic manufacturing locations i.e. Mexico NAFTA, Italy EU, Oman GCC, Poland East Europe, India SAARC and China. Wide and well established service network providing efficient after sales service. Cost: High degree of backward integration in house production of components critical to quality and cost. Manufacturing facilities in strategic locations with tax and cost benefits. Global capacities provide economies of scale. Glass CRT CTV offers unique synergy in global CTV business. People: Young and vibrant employees with 70% of the force below the age of 30. Cordial relationship with trade unions No man days lost due to labour unrest. Multi skilled workforce More than 50% staffs are graduates/post graduates.
  23. 23. V.I.M. Page 23 of 80 WEAKNESS Multi brand strategy is diffused in certain areas. Most product development cycles start from R&D and not from consumer insights. Long business cycle leads to greater need of working capital. Quality perception not on par with multinationals like Sony Inadequate MIS due to complexity of the business structure. Multiple factories and brands burden logistic support. OPPORTUNITY Technology: Existing global facilities provide basic infrastructure to expand to FPD manufacturing. Start rotary compressor production for air conditioner. Market: New global footprints provide access to large international markets in major product categories. Huge potential considering the present low domestic penetration levels. Large integrated components and product manufacturing facilities provide huge OEM potential. Cost: New facilities in low cost areas with tax benefits. New facilities at international locations with minimal CAPEX due to existing infrastructure. Rationalizing common services such as logistics, warehouse and after sales services. People: Recent M&A activities have led to growth in brand / Corporate image and greater interest of all present and future stake holders globally. Restructuring of the organization in a professional manner to create a competitive and challenging environment.
  24. 24. V.I.M. Page 24 of 80 THREAT Growth of alternative technologies. Continuous price pressures driven by capacity adjustment time lag. Margins in glass/CRT based business may come under pressure if alternative technologies are available at a price factor of 1.5 times. Strong competition from existing players in China. Building client confidence regarding quality standards may take some time.
  25. 25. V.I.M. Page 25 of 80 Brand Strategies The year 2006 comes at a time when Videocon is fresh from its acquisition of Thomson s colour picture tube business worldwide, making it the first truly Indian multinational. The company now has access to the finest technologies in the world, due to the continuous innovation by its R&D centres across the world & state-of-the-art manufacturing facilities in France, Italy, Poland, Mexico, China & India. As a result many innovative new products have been launched, from the Slim&Trim TV which is 42% slimmer than a normal 21 flat TV; to the International Series of TVs, to the sleek range of Konzerv washing machines which have a unique water-saving function. This trend is seen to continue throughout 2006 as well. Videocon s wide range of products has always focused on giving consumers the very best in stylish and technologically advanced products, from Colour Televisions, DVD Players, Home Theatres, Washing Machines, Refrigerators and Air Conditioners. The modern-day consumer is aware of the latest technological advancements in electronics & appliances, and the options available to him. With the advent of cable television, a window to the world has opened up in the average Indian s living room, making him more aware. As a result his expectations have also increased. Videocon s endeavor is to not only fulfil the needs of the customer but make available to him a wide array of options and new technologies that are suited to his needs. With international products like Slim TVs, Plasma TVs, the global International Series range and much more, the company now has more to offer to the discerning consumer who appreciates style & comfort in life. In this era of information technology, when the entire world is networked, and the concept of a global village exists now much more than ever before, no company can survive on such a large scale if it does not integrate its processes. Videocon was one of the first companies to realize the importance of information technology for global scale efficiency. As early as the year 2000, it implemented the SAP R3 4.0B System. In 2005, Videocon became the first company in India to implement the mySAP Business Suite, which consists of various components like ERP 2004, CRM 4.0 (Consumer Relationship Management), BIW 3.5 (Business Information Warehousing), and EP 6.0 (Enterprise Portal). The implementation of mySAP in Videocon was one of the few implementations that was monitored and supported directly by SAP AG, Germany. Videocon is ramp-up customer for SAP, one of the few clients who will receive all updates in the system as and when they happen.
  26. 26. V.I.M. Page 26 of 80 The SAP ERP 2004 business solution has resulted in integration of processes to strengthen resources, networks & infrastructure within the company. It has enabled Videocon to proactively respond to market dynamics, maintain control over costs, increase productivity, and make the company more agile and better prepared for the future. The various modules like Sales & Distribution, CRM, Logistics, Plant Management, Production Planning, Material Management, Quality Management, Finance, Human Capital, Business Information Warehousing and Enterprise Portal have all integrated Videocon into one cohesive unit, functioning at maximum efficiency, geared to face the future. As a first step towards reaching out to rural areas, 2005 saw the launch of a nation-wide series of road shows in the B & C-class towns of India, called Videocon Lifestyle Expo 2005. These generated tremendous interest, showcasing Videocon s product range superiority and bringing the Videocon experience close to the consumers homes. In 2005, the Lifestyle Expo was held in 53 locations across the country, and over 1.2 lakh people visited them to look at the latest technologies on offer, experience the Videocon products hands-on, and be entertained in a variety of other ways. The 2006 edition of the Lifestyle Expo has just begun, and is expected to surpass last year s Expo in terms of popularity; footfall & sales, helping Videocon increase its penetration throughout the country. 2005 was a good year for Videocon in terms of sales. Overall sales in colour televisions were 12, 28,533 units from January to December 2005. In home appliances, Videocon sold 3, 13,463 washing machines, 3, 94,784 refrigerators, and around 1.2 lakh air conditioners. The Multie & Maxie range of washing machines were particularly successful. Besides the normally good seasons like Onam in Kerala, Durga Puja in the East & Diwali all over the country, Videocon launched several off-season offers like Hum-Tum Offer, Heads You Win Tails You Win Offer etc., which did much to boost the sales and resulted in a good year for the brand In 2005, Videocon s strong corporate campaign in the press and on TV has awoken the country to the fact that Videocon is an emerging global powerhouse in their own backyard. The Gayatri Mantra television commercial, for example won much acclaim and was loved by all.
  27. 27. V.I.M. Page 27 of 80 Even as it looks in the direction of global supremacy, Videocon has always kept its finger on the pulse of India. And knowing that Cricket & Bollywood are the two things that never fail to arouse the passions of Indians, Videocon maintains a strong association with these two, and will continue to do so in 2006. With the support of the biggest contemporary star, Shahrukh Khan, Videocon continues to reach out to the masses. The last 4 years have seen Videocon sponsor the matches played by the Indian cricket team, having won the exclusive rights from BCCI along with TVS Motors & Pepsi. In 2006, Videocon will continue to make its presence felt in Cricket in a big way. Videocon is now the sponsor of the West Bengal Ranji team. It has also established the Videocon School of Cricket in Calcutta, in partnership with Sourav Ganguly, which recognises & grooms talent for the future generations of Indian cricket. But one of the biggest coups Videocon has pulled off in cricket recently is signing on one of India s hottest young cricketing talents the exciting Mahindra Singh Dhoni, who will now endorse Videocon products. According to Mr. Sunil Tandon, VP Marketing, Videocon, With his swashbuckling style & hunger for success, Dhoni epitomises the spirit of Videocon. His youthfulness and determination will have a positive rub-off on the brand and increase its appeal among the younger generation. In 2006, Videocon plans to continue its strong focus on flat TVs. The fast-growing 29-inch segment will be an area of focus. Besides, with the Slim&Trim range set to expand into new models in the 21 & 29 segment, and also into Home Theatres & DVD Players, the customer will be offered a wide range of choices in this sleek range. In home appliances, the focus will remain on the unique water-saving Konzerv range of fully automatic washing machines, and Videocon will also concentrate on Frost-Free Refrigerators, the fastest-growing category in refrigerators. 2006 will also see Videocon launching its microwave ovens in a big way, with a wide range spreading across all segments. In air conditioners, Videocon, on the strength of the patent for its technology for energy efficiency (40% less energy consumption), plans to launch a new range, with focus on the split AC market.
  28. 28. V.I.M. Page 28 of 80 Introduction, Strengths, Weakness
  29. 29. V.I.M. Page 29 of 80 AKAI Founded in 1929, Tokyo, Japan, AKAI has engaged in offering quality home entertainment products specializing in the audio and video arenas. Be the chosen brand of all Indians by providing and maintaining excellent Quality and the best Value-for-Money in Consumer Durable products. For more than seven decades, AKAI has proven itself to be one of the premier sources of vision and innovation for consumer electronics. Akai Electric Company Limited has appointed Videocon group to market it's product in India. Looking at the socio economic and demographic profile of the country we at Akai acknowledged the very fact that Technology is meaningless if one can t afford it . Akai Consumer Electronics India Ltd has been structured to provide thrust towards customer satisfaction. The company has focused on providing value for money products and services within the reach of the average Indian consumer. AKAI is slowly changing the perceptions in the minds of the customers and hard-selling the fact that they are giving value and much more for the kind of monies that the customer shells out to purchase a CTV. One does not have to go in to purchase a very expensive brand to get a feature-loaded television but can avail the same features in an AKAI at a cost that pleases his purse as well. STRENGTH Akai has improved the distribution & logistic network. Akai had made the impression in the mind of customer as the combination of price & technology. Akai is in the brand basket of Videocon Indian Multinational. WEAKNESS No variety in models with fast changing technology, especially in the home appliances. The market share is still not up to the mark, having presence in the 5 to 10 ranking.
  30. 30. V.I.M. Page 30 of 80 ELECTROLUX Focused on providing value, Electrolux current ergonomically superior and technologically advanced products range in India includes refrigerators, washing machines, microwaves and Air conditioners.Committed to enriching the life of the Indian consumers, it is the only company in India producing products using the Life Nourishing System technology. Evidence of its marketing ingenious, its Ozone brand of refrigerator is today ranked as the fastest growing refrigerator brand in the country in the no-frost category. Company also launched Bijlee - World s first fridge that runs even without electricity, Tamanna - World s first fridge with FM radio and message recorder, Oxyaquaswing refrigerator - India s first Hands-Free Refrigerator with water-through-the-door technology. Not only this. EKL also launched World s first talking washing machine, the Washy Talky, which is the winner of Ripley s Believe it or Not and is also featured in Limca book of Records . It is now available in three regional languages, besides the existing English- speaking model. These three are Hindi, Kannada and Tamil. Electrolux products in India are manufactured and distributed by Videocon Ltd. The Electrolux Group specifies the product range, design, quality and brand communications so that it conforms to the global standards of Electrolux. STRENGTH Good hold in home appliances, especially in the Refrigerator & Washing Machine. The brand is recognized in the market for economically superior and technologically advanced Manufactured and distributed by Videocon Industries Ltd. WEAKNESS Lack of TV commercials & print ads, thus the customer s knowledge about the product is low. Declining market share & tough competition from MNCs Poor market presence i.e. brand availability is not up to the mark.
  31. 31. V.I.M. Page 31 of 80 GODEREJ Goderej is today one of the largest engineering and consumer products company in the country having varied interests from engineering to personal care products with a total sales turnover of about US $ 1.1 Billion. Goderej is also one of the most respected corporate houses. Godrej & Boyce Mfg. Co. Ltd. Appliance Division is in the business of Manufacturing Refrigerators, Washing Machines and Air Conditioners. We have been manufacturing refrigerators in India since 1958. From creating a revolution with PUF (Polyurethane Foam) in 1989 to the launch of Godrej Pentacool in 2001, Goderej have been at the forefront of product innovation. Godrej started manufacturing Washing Machines in 1996. We have a complete range of Hi Tech Semi Auto and Fully Auto Washing Machines. In addition to the above products, Goderej also have the Godrej Smartcare service brand to provide excellent 'After Sales Service'. Consumers continue to rate the Godrej after Sales Service as the best in the industry. In addition to catering to the domestic consumers, Godrej is also a key OEM supplier in India. After the success achieved in the domestic market, Godrej is also looking at Exports in a big way and has launched its Refrigerators and Washing Machines in Sri Lanka. Goderej also export our products to Singapore, Afghanistan, the Middle East, Egypt, Kenya, Rwanda, Bahrain and Oman. STRENGTH Goderej have a strong Brand image in the market, over & above it has a good distribution set up. Customer trust towards Goderej is for Superior quality product Goderej is known for its 'After Sales Service' network. WEAKNESS Goderej is having the Presence in Home Appliances i.e. Refrigerator, Washing Machine etc. The prices of Goderej are not matching with the market trend, no scheme & offers on products. The market presence is not up to the mark, rang of product line is also low.
  32. 32. V.I.M. Page 32 of 80 HAIER Haier Appliances (India) Private Limited is a wholly-owned subsidiary of Haier Group. Haier India was launched in India in December 2003 and by August 2004 had an all-India promotion launched with over 55 products -- Refrigerators, Colour Television, Washing Machines. The India launch was started with innovative products which were designed keeping the day to day customer needs in mind -- products that will transform the customer's every day living into inspired living. 'Products that will make your today better than yesterday.' The India operations already has an established dealer network of approximately 1600 dealers all over the country, which is backed by a strong service and after sales service network. Television Powered by the revolutionary TDX technology this range promises you audio and video quality so enhanced, you would almost be watching real life. Refrigerator Thanks to Haier's True Tast technology, which maintains a uniform flow of cold air in all parts of the refrigerator. Also the humidity inside the refrigerator is maintained to an exatct level to prevent dehydration of any food kept inside... Washing Machine Haier laundry products have a wide range to choose from -- frontload, top load, portable washers, washer/dryer combinations, top load and frontload dryers. STRENGTH Haier had made the Aggressive marketing at the introduction level of brand in India. The brand is delivering Quality & technology combination in products The brand is having the Availability at major shops with reasonable good range of product. WEAKNESS The brand is not known to the customer in the market; need to work more on commercials. High cost of products & after sales network limitations.
  33. 33. V.I.M. Page 33 of 80 LG LG Electronics vision for the 21st century is to become a true global digital leader through fast growth and fast innovation and to be known as a company who can make its worldwide customers happy through its innovative digital products and services. COLOUR TELEVISION In the Indian household scenario where space is a major constraint, LG has come up with an innovative solution by way of World s slimmest Flat CRT TV, Slimagic, X Wave is India s first TV with wireless Audio Transmitter. This new technology will enable consumers to listen TV sound through any audio system with FM receiver. The TV sound output can be received by any audio set with FM receivers. This will enable consumer to experience home theatre sound output. The current model is available in 21 category and LG plans to launch 29 Flat X wave shortly. FROST FREE & DIRECT COOL REFRIGERATORS LG has launched an exhaustive range of feature rich diamond cut frost-free & direct cool refrigerators ranging from a capacity of 230L to 751L. The company currently has six variants in 230 liters capacity, four variants in 250 liters and five variants each in 280 liters and 310 FULLY AUTOMATIC & SEMI AUTOMATIC WASHING MACHINES LGEIL has a total line up of 11 models in FAWM & SAWM offering capacity of 6.2, 6.5, 7.0 & 7.2 Kgs. washing machine has been designed taking into consideration the aspirational as well as functional needs of Indian consumer. The new Semi automatic machine launched has international looks and elegance. STRENGTH The most reputed brand in Indian market in term of technology. Good dealer network and dealers recommendation has a major role in boost of sales. Brand is Available in vast range all across with best combination of price & technology. WEAKNESS Prices of product are high end & Poor perception of service quality. Tough competition from other brand in market with price constrain.
  34. 34. V.I.M. Page 34 of 80 ONIDA Mr.G.L.Mirchandani and Mr.Vijay Mansukhani started Onida in 1981 in Mumbai. In 1982, Onida started assembling television sets at their factory in Andheri, Mumbai. Superior products and the combination of a distinctive voice, a cutting-edge advertising strategy, and purposeful marketing ensured that Onida became a household name. Over the years, Onida has strengthened its reputation for the intelligent and pioneering application of technologies. Onida today enjoys a strong equity among consumers making it one of the leading brands in India. Our constant endeavor to introduce products of substance that offer the very best in technology and the finest design have made Onida a leading player in the electronics and entertainment business today. Onida has recently made a foray in other household appliances including air-conditioners, washing machines, DVDs, Plasma & LCD televisions and home theatre systems. Onida has a network of 33 branch offices, 208 Customer Relation Centers and 41 depots spread across India. MIRC Electronics shares are listed on the National and Mumbai Stock Exchanges. The company enjoyed a market capitalization of Rs.301.46 Cr. as on 31st March 2005. The transition of Onida from a family-owned business to a professionally managed company has largely been made possible by the vision of the Chairman & Managing Director, Mr.G.L.Mirchandani. STRENGTH Old market presence is helping boost the distributional channel & after sales network. Strong in technology based product is the symbol of brand image. The market share is good enough, presence in top 5 brands in consumer electronics. WEAKNESS Limited range in the Home Appliances range of products. Availability of brand is mostly limited to urban market. Not perceived as an exciting brand & having Low prestige / status association
  35. 35. V.I.M. Page 35 of 80 PHILIPS Philips started operations in India at Kolkata (Calcutta) in 1930. Established as Philips Electrical Co. (India) Pvt Ltd , the company comprised a staff of 75 and was a sales outlet for Philips lamps imported from overseas. Philips in India is part of Royal Philips Electronics. As one of the nation's most well-known and well-loved brands, Philips is a part of practically every Indian's life. Philips products find a use in virtually every aspect of daily life - at home, at work and on the move. Today, Philips stands as a source of reliable and innovative products that enhance the quality of consumers' professional and personal lives. Philips continuously explores new ways to improve products and to offer innovative products to its consumers. That s why Philips has created a program through which we will reach higher and higher quality levels in all products and services. In fact, this quality improvement program affects all our employees and all our processes, in every country, division or department, encompassing everyone from Board of Management-level to the shop floor. BBEESSTT -- BBUUSSIINNEESSSS EEXXCCEELLLLEENNCCEE TTHHRROOUUGGHH SSPPEEEEDD AANNDD TTEEAAMMWWOORRKK The BEST program is Philips chosen path to achieve business excellence. It describes a set of methods and tools by which we continuously improve our efforts. Previous successful initiatives are incorporated in the program to make sure we learn as much as possible from our successes in the past. STRENGTH Brand name known for quality is having a strong presence in the mind of customers. Philips products are combination of price & technology, having good enough range of product to offer. Strong sales network & Philips arena - chain out let bring the complete range of product in market WEAKNESS The brand is Limited to consumer electronics goods only. Not having presence in the top 5 brands.
  36. 36. V.I.M. Page 36 of 80 SAMSUNG Samsung India is the hub for Samsung s South West Asia Regional operations. The South West Asia Regional Headquarters looks after the Samsung business in Nepal, Sri Lanka, Bangladesh, Maldives and Bhutan besides India. Samsung India which commenced its operations in India in December 1995, today enjoys a sales turnover of over US$ 1Bn in just a decade of operations in the country. From being a virtually unknown entity in the Year 1995, brand Samsung today enjoys an awareness of over 95% and a positive opinion of around 80% in the country today (source: BAS 2004). Sports Marketing and Entertainment Marketing have been the key elements of the Company s Brand Marketing Strategy. Samsung has very successfully leveraged its association with Cricket and Cinema in the form of Team Samsung and Samsung IIFA Award . Samsung India sponsored the high profile Samsung Cup Indo-Pak Cricket Series in the Year 2004. Team Samsung or Samsung s team of celebrity cricketers endorsing Samsung products has been successfully used to create more awareness for Samsung products. To display Samsung products in a more lifestyle ambience and to communicate the product benefits in a more interactive manner, Samsung India has set up a widespread network of Samsung Digital Worlds, Digital Homes and Digital Plazas all over the country. The Samsung Brand shop network complements the over 8500 retail points for Samsung products located across the length and breadth of the country. STRENGTH Good combination of Technology & price is brand next image in the mind of customer. Brand is having Strong hold in market. The brand is having Presence in top 5 brands of market. The Availability of brand in the market is good, with wide range across all products. WEAKNESS After sales service network is to be improved, so as to bring the satisfaction level in customer. The brand is having Very few exclusive Samsung plazas in semi urban area. Perceived as an expensive brand & Poor perception of service quality
  37. 37. V.I.M. Page 37 of 80 SONY One of the most recognized brand names in the world Sony Corporation was founded in 1946, and since then has grown to become one of the most reputed brands in the history of the modern world. Throughout the world today Sony stands for innovation, state of the art technology and superior quality. Leading into the next generation, Sony s vision is to offer people exciting new products and new lifestyles. Presence across India Since its inception, Sony India has its footprint across all major towns and cities in the country through a distribution network comprising over 4500 dealers & distributors,170 Sony World and Sony Exclusive outlets and 17 direct branch locations. Visible face of Sony A world class shopping experience is provided to discerning consumers through the company s chain of exclusive stores Sony Worlds. Contemporary, techno-led, sleek interiors, aesthetic display, ease of browsing, customer-friendly & informed sales persons are the hallmarks of Sony Worlds across India. Service excellence Sony India also has a strong service presence across the country with 19 company owned and 151 authorized service centers. STRENGTH One of the Most recognized brand names in the world. Quality is the next term for the brand, having high end technology in the entire product range. The brands exclusive showroom and service point bring the customer satisfaction WEAKNESS High cost of product, Limited offers & scheme Not having good market share, thus not in the top 5 brands of the market.
  38. 38. V.I.M. Page 38 of 80 WHIRLPOOL Whirlpool, is the single largest home appliances company in the world, has a unique story. The Whirlpool Corporation celebrates its 90th anniversary this year. India was identified as a growth market in the late 80 s. The Whirlpool Corporation entered into a joint venture agreement with the TVS group to produce automatic washers at a plant set up in Pondicherry. A modest beginning was made to establish the Whirlpool brand in India. In 1995 the Whirlpool Corporation acquired Kelvinator of India Limited and entered into the refrigerator market. The Whirlpool brand went from having no awareness to claim an awareness of up to 85% and a market share of 25%. Whirlpool has the distinction of being the most preferred brand in the washing machine category with market leadership in the segment it pioneered worldwide the automatic washing machine. In less than three years, the Whirlpool brand had become a household name and has today emerged as a leader in the domestic home appliances market. Vision & mission Our all-pervasive vision of Every Home... Everywhere, with Pride, Passion and Performance rests on the pillars of Innovation, Operational Excellence, a customer-centric approach and diversified talent. These are embedded in our business goals and strategy, processes and culture. STRENGTH Largest home appliances company in the world With good product presence in market is help giving boost to sales. Quality & price combination help in make brand image in mind of customer. Very high top of Mind recall and consideration for purchase & High ad recall WEAKNESS Only presence in the home appliances Brand is Limited to the major market places of cities only. After sales service network remains not updated. Poor perception of service quality & as an expensive brand
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  42. 42. V.I.M. Page 42 of 80 Proposed Title of the Study Broad Overview of the Study Objective To Map Brand Performance & Strategies of Videocon Brand vis-à-vis Competition for Colour Television, Refrigerators & Washing Machine In this study our emphasis will be on mapping Videocon Brand vis-à-vis Competition Brand performance in the market places of Aurangabad - Jalana & Pune - Ahmednagar city in following way. Availability of the brands in the market. The range of models available in the shelf s of the store. Ranking the percent share of the brands in the segment. Dealer s feedback on the market trend of the brands performance. Knowing the customer buying aspect from the dealer s point of view. To Asses the current market potential of Videocon Television, Refrigerator & Washing Machine. To study the marketing strategy & trend of consumer electronics & home appliances To determine the market share of Television, Refrigerator & Washing Machine. To study the availability of product in market & ranking them according to sales
  43. 43. V.I.M. Page 43 of 80 Research methodology Area of operation Sample size The following methodology was adopted for carrying out the project undertaken. Secondary data was collected from company office by involving in day-to-day activity, Business magazine & company web site. Primary data was collected through direct interaction with dealer. A questionnaire was prepared keeping in view of the objective of the project. A stratified sampling method will be used for the sample selection. Sample will of minimum 50 and not more that 100 and will be carried out. Collected data will be analyzed by help of simple statistical techniques and will be interpreted in graphical explorations. The area of operation was carried out in Aurangabad-Jalana & Pune-Ahmednagar city only. The total number of dealer surveyed is 55. Bifurcation of which according to city is as follow Aurangabad Jalna - 20 Pune - Ahmednagar - 35
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  46. 46. V.I.M. Page 46 of 80 Colour Television Market Availability 16 12 12 11 11 10 7 7 6 4 4 15 9 8 8 7 12 18 5 4 9 5 0 5 10 15 20 LG Videocon Akai Sansui Other Onida Samsung Hundai TCL Philips Haier Brand s PercentShareofBrand Conv in % Flat in % Above graph is for the market availability of the product (in percentage).out of the total no of model available in store, the percent share of each brand is shown above. The x-axis shows the brand s line in store and the y-axis shows the percent share of brand (in percentage). Above graph has two parts i.e. conventional model & flat models available in store. Top leading brand in conventional is L.G with 16% of share followed by the Videocon & Akai with 12% share each. The conventional is the declining stage of the technology by the flat ctv. But still the old players in industry are hanging with the conventional CTV. Where as the multinationals are reducing the CTV market share. Sony has 0% share in conventional CTV. In flat CTV segment Samsung is dominating others by leading the chart by 18% availability. LG, Onida are making strong presence in second row by having 15% & 12% respectively shared. Videocon has left much behind in the flat segment.
  47. 47. V.I.M. Page 47 of 80 Average NO.of Models Available at Store for Respective Brand's. 2 3 1 2 2 1 1 2 2 0 1 0 1 1 1 0 1 0 0 0 4 2 3 4 3 4 5 2 3 4 3 2 1 1 2 1 1 3 0 0 1 2 0 0 0 0 0 1 0 0 1 1 1 1 1 0 1 2 3 4 5 6 LG Videocon Akai Sansui Other Onida Samsung Hundai TCL Philips Haier Other 29"F 21"F 29"c 21"c Above graph is for the average No. of model available in market for each brand. Out of the total no of model available in store, the presence of each brand is shown above. The y-axis shows the brand s line in store and the x-axis shows the No. of model in store. Above graph has been divided in five parts i.e. 21 conventional, 29 conventional, 21 flat, 29 flat & others. 21 conventional Videocon is the leading by Average 3 model / store presence followed by the LG & OTHERS.29 conventional Very few models are available in this segment by Videocon group companies. 21 flat market leader is 21 flat dominating all others so as all companies are targeting the same by making available large no of models. Samsung is leading with 5 models, followed by 4 models each of Phillips, Onida, Samsung, and LG. 29 flat Samsung is ahead with 3 models, followed by Haier, Sansui & LG with 2 models. Others very rare models are available & consistency is not found.
  48. 48. V.I.M. Page 48 of 80 Buying Aspects 21 33 17 8 2 14 5 0 5 10 15 20 25 30 35 PRICE FEATURE BRAND NAME OFFER SCHEME PRODUCT QUALITY WARENTY AFTERSALES The above graph shows the buying behavior of customer accordingly. The y-axis shows the % of customers buying aspect and the x-axis shows the factor of rating. The above graph clearly shows the market trend is toward the combination of features & price followed by the brand name. Thus the brands have to expand technology and minimize cost to lead the market. The graph shows that the customer buying aspect is less toward the offer scheme, after sales, product quality. Thus we can say that the most of the brand are now more or less equal on t he ground of these factor so as the customer are not in the mind of the looking at these factors
  49. 49. V.I.M. Page 49 of 80 Flat CTV Market Share LG 33% ONIDA 11% SANSUI 7% PHILIPS 7% VIDEOCON 7% AKAI 2% Other 7% SAMSUNG 26% The above pie chart reflects the market situation for the Flat CTV category. With one third market capture, LG is leading much ahead followed by the Samsung with 26%. Onida stands third in the market with 11% share. Videocon is sharing 4th place wit Sansui, Philips with 7% share. Akai is not the good market share of just 2%. The others include in others category are Sony, Hyundai, TCL, Sharp and Haier. The gap between the LG and the Samsung is competitive where as the Onida, Sansui, Akai, Videocon has to give the tough fight. To gain the leadership possession.
  50. 50. V.I.M. Page 50 of 80 Conventional CTV Market Share LG 29% VIDEOCON 14%SANSUI 10% PHILIPS 8% SAMSUNG 7% AKAI 5% Other 15% ONIDA 12% The above pie chart reflects the market situation for the Conventional CTV category. With 29% market is captured by LG, followed by the Videocon with 14%. Onida stands third in the market with 12% share. Sansui, Philips, Samsung, Akai, are the brand followed latter with 10%, 8%, 7%, and 5% respectively. Others in this category include IGO, TCL, BPL, Sharp, and Haier. The flat CTV technology has made the conventional market bit declining in over all market shares. The gap between the Lg & Videocon is too to fill in short time. The leader still remains the Videocon group (Videocon + Sansui + Akai) equal to the LG.
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  52. 52. V.I.M. Page 52 of 80 Market Availability of Product 0 5 10 15 20 25 30 35 LG WHIRLPOOL GODREJ SAMSUNG VIDEOCON OTHER ELECTROLUX BRAND %SCORE DC REF FF REF REFRIGERATOR Above graph is for the Market Availability of the Product (in percentage).out of the total no of model available in store, the percent share of each brand is shown above. The x-axis shows the Brand s line in store and the y-axis shows the Percent Share of Brand (In Percentage). Above graph has two parts i.e. Direct Cool (DC) & Frost Free (FF) models available in store. Top leading brand in Direct Cool (DC) is L.G with 25% of share followed by the Samsung & Whirlpool with 17% & 15% share respectively. In Frost Free (FF) segment L.G is dominating others by leading the chart by 28% availability. Samsung & Whirlpool are making strong presence in second row by having 24% & 18% respectively shared. Videocon has been left much behind in the Frost Free (FF) segment.
  53. 53. V.I.M. Page 53 of 80 Average No. of Model Available in Market 6 5 3 4 2 3 1 4 3 5 4 1 2 0 0 1 2 3 4 5 6 7 LG WHIRLPOOL GODREJ SAMSUNG VIDEOCON OTHER ELECTROLUX Brands NoofModel AvailableinStore DC REF FF REF Above graph is for the Average No. of Model Available in Market for each brand. Out of the total No of Model Available in Store, the presence of each brand is shown above. The x-axis shows the brand s line in store and the y-axis shows the No. of model in store. Above graph has been divided in two parts i.e. Direct Cool (DC) & Frost Free (FF) Direct Cool (DC) LG is the leading by Average 6 model / store presence followed by the Whirlpool & Samsung with 5 & 4 models respectively. Frost Free (FF) Goderej is the leader in the frost free segment with 5 models/ store followed by Samsung & LG are sharing the second row by 4 models / store.
  54. 54. V.I.M. Page 54 of 80 Customer Buying Aspects 0 5 10 15 20 25 30 PRICE FEATURE BRAND NAME OFFER SCHEME PRODUCT QUALITY WARENTY AFTERSALES %OfCustomers BuyingAspect The y-axis shows the % Of Customers Buying Aspect and the x-axis shows the Factor of Rating. The above graph clearly shows the market trend is toward the combination of features & price followed by the brand name. Thus the brands have to expand technology and minimize cost to lead the market. The graph shows that the customer buying aspect is less toward the offer scheme, after sales, product quality. Thus we can say that the most of the brand are now more or less equal on t he ground of these factor so as the customer are not in the mind of the looking at these factors
  55. 55. V.I.M. Page 55 of 80 Direct Cool (DC) Market ShareLG 29% WHIRLPOOL 25% SAMSUNG 14% VIDEOCON 8% OTHER 5% GODREJ 14% ELECTROLUX 5% The above pie chart reflects the market situation for the Direct Cool (DC) category. With 29% market share LG is leading much ahead followed by the whirlpool with 25%. Goderej & Samsung stands third in the market with 14% share. Videocon is sharing 4th place with 8% share. The direct cool market has the two big players as LG & Whirlpool. Sharing approx 50% Market Share of DC. Samsung & Goderej have the equal market share of 14%. Videocon brand group is left far behind in this.
  56. 56. V.I.M. Page 56 of 80 Frost Free (FF) Market Share WHIRLPOOL 21% SAMSUNG 21% VIDEOCON 4% LG 34% GODREJ 10% OTHER 5% ELECTROLUx 5% The above pie chart reflects the market situation for the Frost Free (FF) category. With 34% market share LG is leading much ahead followed by the whirlpool & Samsung with 21%. Goderej stands third in the market with 10% share. Videocon is sharing with 4% share. The LG and Whirlpool capture 50% of market in the approx ratio of 3:2. Whirlpool and the Samsung are also equal in term of the market share. Thus the major part is captured by the LG, Whirlpool, and Samsung. Remaining one fourth markets is left for others. In that area godrej, Videocon, Electrolux are the player with other as Haier, BPL, Voltas.
  57. 57. V.I.M. Page 57 of 80 Market Avalibility of WM in Market 24 19 18 17 9 8 5 0 22 17 13 15 8 7 4 14 0 5 10 15 20 25 30 LG WHIRLPOOL VIDEOCON SAMSUNG ELECTROLUX OTHER ONIDA IFB BRANDS ShareofBrand (InPercentage). Semi-Automatic Fully Automatic Washing Machine Above graph is for the Market Availability of the Product (In Percentage).out of the total no of model available in store, the percent share of each brand is shown above. The x-axis shows the brand s line in store and the y-axis shows the percent share of brand (in percentage). Above graph has two parts i.e. Semi-Automatic (SA) & Fully Automatic (FA) models available in store. Top leading brand in Semi-Automatic (SA) is L.G with 24% of share followed by the Whirlpool Videocon & Samsung with 19%, 18% & 17% share respectively. In Fully Automatic (FA) segment L.G is dominating others & the leading the chart by 22% availability. Whirlpool & Samsung are making strong presence in second row by having 17% & 15% respectively. Videocon has been behind in Fully Automatic (FA) to 4th place by 13% share.
  58. 58. V.I.M. Page 58 of 80 Average No. of Washing Machine at Store 2 3 2 1 2 2 0 0 1 2 1 1 0 1 1 1 0 1 2 3 4 LG WHIRLPOOL VIDEOCON SAMSUNG ELECTROLUX OTHER ONIDA IFB Brand s No.ofmodelinstore Semi-Automatic FullyAutomatic Above graph is for the average No. of model available in market for each brand. Out of the total no of model available in store, the presence of each brand is shown above. The x-axis shows the Brand s line in store and the y-axis shows the No. of model in store. Above graph has been divided in two parts i.e. Semi-Automatic (SA) & Fully Automatic (FA) Semi-Automatic (SA) whirlpool is the leading by Average 3 model / store presence followed by the LG, Videocon & Electrolux with 2 models / store each. Fully Automatic (FA) whirlpool is the leading by Average 2 model / store presence followed by the LG, Videocon & Samsung with 1models / store each.
  59. 59. V.I.M. Page 59 of 80 BUYING ASPECT 15 24 18 10 7 10 15 0 5 10 15 20 25 30 PRICE FEATURE BRAND NAME OFFER SCHEME PRODUCT QUALITY WARENTY AFTERSALES BRANDs %SCORE The y-axis shows the % of customers buying aspect and the x-axis shows the factor of rating. The above graph clearly shows the market trend is toward the combination of features, price & brand name followed by the price & after sales. Thus the brands have to expand technology and advertisement to lead the market. The graph shows that the customer buying aspect is less toward the offer scheme, after sales, product quality. Thus we can say that the most of the brand are now more or less equal on t he ground of these factor so as the customer are not in the mind of the looking at these factors.
  60. 60. V.I.M. Page 60 of 80 Semi-Automatic (SA) Market Share OTHER 9% ELECTROLUX 3% WHIRLPOOL 15% VIDEOCON 18% SAMSUNG 21% LG 34% The above pie chart reflects the market situation for the Semi-Automatic (SA) category. With 34% market share LG is leading much ahead followed by the Samsung with 21%, Videocon & whirlpool stands in a row with the market share of 18% & 15%. Others include the kenstar, Onida, etc. approx 50% of the market is captured by the LG &Samsung in 3:2 ratios. The Videocon is the close to the market share of the Samsung. Whirlpool is on of the emerging brand and maintaining the good market share.
  61. 61. V.I.M. Page 61 of 80 Fully-Automatic (FA) Market Share WHIRLPOOL 16% OTHER 9% SAMSUNG 17% LG 31% ELECTROLUX 6% VIDEOCON 7% IFB 14% The above pie chart reflects the market situation for the Fully-Automatic (FA) category. With 31% market share LG is leading much ahead followed by the Samsung with 17%, whirlpool & IFB stands in a row with the market share of 16% & 14%. Videocon share is of 7%, market share. The Electrolux and others category compress the remaining part. The IFB, Whirlpool, Samsung are the more or less having the same market share. LG and Samsung share 50 % market in approx ratio of 3:2.
  62. 62. V.I.M. Page 62 of 80
  63. 63. V.I.M. Page 63 of 80 Conclusion CTV o Shift from CTV (Conventional) to CTV (Flat) is the major contributor for TV demand o Superior technologies and exchange offers reducing average holding period of CTV, thus increasing repeat demand o Consumers moving towards flatter displays o Increasing preference for larger screens o 21 flat CTV is the most demanded range followed by the 29 flat. o Increasing preference for LCD / Plasmas, but still the growth space for Flat TV is high. o The market trend is toward the combination of features & price. WASHING MACHINE o First time purchase is the major contributor for Washing Machine. o However, repeat buyers upgrading to FA emerging as a sizeable segment. o FA segment is fast growing. However, SA & FA have similar value share. o Higher capacities ruling the branch in SA segment with 6kg and above segment contributing to 90%+. o SA is ahead of FA in terms of Demand, Market Availability & Sales. o The market trend is toward the combination of features & price followed by brand name REFRIGERATOR o First time purchase still the major contributor for Refrigerator o Average holding period of refrigerators not reducing as dramatically as CTV o 170 180 L segment still contributes more than half the market for refrigerators o However, FF refrigerators making fast inroads into consumer mind-space o The market trend is toward the combination of features & price. o Customer buying aspect is less toward the offer scheme, after sales. o Availability of Frost Free (FF) Refrigerator is more than the Direct Cool (DC). o Demand & sale of Frost Free (FF) Refrigerator is increasing.
  64. 64. V.I.M. Page 64 of 80 Findings Dealer Influenced market o Dealer recommendation crucial o Price/ margins may play a major role Prime Brand market - Strong end-customer pull, Forces dealer to stock and sell brands independent of his own preferences The brand whose relation in the market with the dealers are not sound or the dealers satisfaction is not with the brand, the brand suffers in terms of dealers recommendation to customers and market availability i.e. shelf space in the showroom. No exclusive showroom in market for Videocon brand to display complete range of product. Thus the range of Videocon product is not available to see, choose & purchase. Lack of dealer in the central market place of the city. I.e. the Videocon brand is not available in the central market of the city e.g. In Aurangabad city the Videocon range is not available in the complete central market i.e. (Tilak Path Shahagange Nirala Bazaar - Cannought) having only presence in the next shop on the highway. Presence of brand in the reputed store of market such as Plug In shops, Maharashtra Electricals, Dass Electricals - Pune, Watchland, Nariman Aurangabad is negligible. Gives the wrong message in to the customers. Quality and technology should be improved to bring customer satisfaction . quoted by most of the dealers. 90% of the customer change there brand on dealer recommendation and advice quoted by the most of respondents (shop owners and the sales staff). Shelf space or the space in the showroom to Videocon brand is not available. There is ample space for the growth of the Videocon brand.
  65. 65. V.I.M. Page 65 of 80
  66. 66. V.I.M. Page 66 of 80 Limitation Market area of survey is of two different sales areas. The combination of city is also of urban and semi urban are giving mixed opinion. A time constraint in term of market survey was also there. The various Respondent terminating their participation in providing data in some question.
  67. 67. V.I.M. Page 67 of 80
  68. 68. V.I.M. Page 68 of 80 Recommendations Distribution channel should be improved so as the flow of the goods in market will be good i.e. the demand for the goods will be created by the availability of the products. Dealer should be appointed & sound relation should be maintained with dealers. Continuous scheme and offers should be launched to dealers. The sales person in the shops must go under training program. This will update the knowledge of the sales team at the store with respect to technology, brand & pricing. The training must held at least every quarter of year by the company professionals. The brand must arrange a complete product line at a store, so as to pull attention of the customer. The Advertising and sales promotion should be made at store. i.e. the walk in customer will have the up date to the scheme, offers, technology, pricing & Brand knowledge. Specialty showroom for Videocon product should be made available as of Sony, Samsung, LG, Goderej, and Philips etc. this not only brings the range of the product at the market but also give a personal touch in term of o Advice and the product specification knowledge in terms of usages of customer and requirement by the company trained sales staff. o Assurance of quality, price & after sales service. o Technical knowledge and guidance to the customer. Price of the product should be updated with the market changes. Participation in expo, exhibition, and fun fare should be boosted to reach to the customers directly and launch scheme and offer to the customer. Test new campaigns, schemes, POPS and displays for desired response Feedback on new models from intending customers before full scale launch Conduct field trials of all new models
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  70. 70. V.I.M. Page 70 of 80 Bibliography Research Methodology, Methods and techniques C R Kothari Market Research (G. C. Berry) Marketing management (Philip kotler) Videocon manuals Videocon Website www.videoconworld.com www.videoconindustries.com Competitors Website: www.lge.com www.sonyindia.com www.onida.com www.godrej.com www.haier.com www.samsung.com www.whirlpool.com www.akai.com www.electrolux.com www.ifbappliances.com www.philipsindia.com
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  72. 72. V.I.M. Page 72 of 80 Questionnaire SHOW ROOM NAME : __________________________________________ ADDRESS : __________________________________________ __________________________________________ ____________________________PH: ___________ BRIEF NOTE ON SHOW ROOM / SHOP : ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ REFREGERATOR NO.OF BRANDS & NO.OF MODELS BRAND DIRECT COOL FORST FREE BRAND DIRECT COOL FORST FREE Videocon Electrolux Samsung Godrej Whirlpool Siemens LG IFB Onida Haier CUSTOMER BUYING ASPECTS Aspect Very Important Important Less Important Not Important Price Features Brand Name Offer / Schemes Product Quality Warranty After-Sales
  73. 73. V.I.M. Page 73 of 80 DIRECT COOL: MOST SELLING PRODUCT 1) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: 2) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: FROST FREE: MOST SELLING PRODUCT 1) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: 2) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: SCHEME & OFFER: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________
  74. 74. V.I.M. Page 74 of 80 WASHING MACHINE NO OF BRANDS & NO OF MODELS AVILABLE AT STORE BRAND SEM - AUTOMATIC FULLY - AUTOMATIC BRAND SEM - AUTOMATIC FULLY - AUTOMATIC Videocon Electrolux Samsung Godrej Whirlpool Siemens LG IFB Onida Haier CUSTOMER BUYING ASPECTS Aspect Very Important Important Less Important Not Important Price Features Brand Name Offer / Schemes Product Quality Warranty After-Sales SEMI - AUTOMATIC: MOST SELLING PRODUCT 1) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: 2) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP:
  75. 75. V.I.M. Page 75 of 80 FULLY - AUTOMATIC: MOST SELLING PRODUCT 1) __________________________ 1 2 MODEL NO: MRP: MOP: USP: 2) __________________________ 1 2 MODEL NO: MRP: MOP: USP: SCHEME & OFFER: ___________________________________________________________________________ _________ TELEVISION NO OF BRANDS & NO OF MODELS AVILABLE AT STORE BRAND Philips Samsung Onida Hyundai LG Videocon Sony Sansui TCL Akai Haier 14 C 21 C 29 C 21 F 29 F OTHER CUSTOMER BUYING ASPECTS Aspect Very Important Important Less Important Not Important Price Features Brand Name Offer / Schemes Product Quality Warranty After-Sales
  76. 76. V.I.M. Page 76 of 80 CONVENTIONAL CTV: MOST SELLING PRODUCT 1) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: 2) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: FLAT CTV: MOST SELLING PRODUCT 1) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP: 2) __________________________ 1 2 3 MODEL NO: MRP: MOP: USP:
  77. 77. V.I.M. Page 77 of 80 The visited Showrooms Photos Shows the Display Arrangement and the Product Presence in the Market Place.
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