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    Television Television Presentation Transcript

    • Product Market Analysis Colour Television
    • Contents
      • History of Television in India
      • Current Issues
      • Future of Television
      • Implications of Business
      • Parameters of Television
      • Segmentation
      • Market Share
      • General Industry CSFs
      • Major Players & their growth
      • Individual Marketing Strategies
      • New Entrant’s Strategies
      • Comparative Positioning
    • History of Television in India
      • History of television
        • In existence for three decades
        • Until recently, all broadcasting was by government owned company (Doordarshan)
        • Developed extensive network of terrestrial transponders
        • Private broadcasting was illegal
        • Introduction of colour television in 1980’s (during 1982 Asian games )
    • History of Television (Contd.)
      • CTV was the driving force behind the consumer electronics boom of mid ‘80s, which was due to a steady rise in GDP
      • Between 1989 and 1992 the healthy demand growth got eroded due to:
        • h igh excise, sales and other taxes leading to price increase;
        • devaluation of rupee in ’91 leading to higher import costs; and
        • temporary saturation of initial pent-up demand.
    • History of Television (Contd..)
      • Post-liberalization revival of CTV market
        • Rationalization of duty structures leading to lowering of prices
        • Stable rupee
        • Higher GDP growth
        • Relatively lower inflation
      • Product life cycle got reduced considerably
      • Introduction of satellite broadcasting by foreign company
      • Led to increase in channel diversity
      • Access to homes where cable (landline) was impenetrable
      • Created fierce competition to enter the market
    • Current Television Issues
      • 70 million homes (400 million individuals) have access to cable TV
      • 27 Satellites cover the country
      • Widespread illegal cable operators
        • Customer bases from 50 to 1000
        • 60,000 cable operators in India
      • Satellite competition feared by government
        • 150 million viewers of satellite programming, with largest variety of channels
    • Future of Television
      • Slow, steady migration towards digital transmission (over current infrastructure)
      • Widespread laying of fibre optic cable
      • Increase in homes with cable to over 100 million in 10 years
      • Increase in pay-per-view and customized programming
      • Government must relax restrictions/threats against foreign and domestic competitors
    • Implications for Business
      • Current
        • Poor infrastructure
        • Corrupt government
        • Surplus of skilled technical workers
      • Future
        • Improved infrastructure (potential to be sixth in world)
        • Possibility of relaxed laws/bans on foreign competition
        • Increased investment from outside sources
    • Dominant Parameters of Television
      • Brand name
      • Size
      • Price
      • Pricing scheme
      • After sales service
      • Picture quality
      • Sound
      • Number of channels
      • Other features
    • Segmentation - Size * Quality conscious buyers * Innovative features e.g. net tv,flat tv 25”,29” & 32” models 5% >25” * Customers ready to pay for extra features * FFST models available in this range * Non-remote (40%) and remote (60%) * Conventional and FST * Both economy (<20000) and premium (>20000) models 40% 21” * Price sensitive * Non-remote (65%) and remote (35%) * Conventional & FST 42% 20” * 50% growth rate, fastest growing segment, second buy * Non-remote and remote 13% 14” Characteristics Sub - segments Market share Size
    • Segmentation - Price
      • Price
        • Low Rs 8000-12000 (35%)
        • Medium Rs 15000-20000 (60%)
        • High Rs 25000-150000 (5%)
      Source : www.IndianTelevision.com
    • Market Share Source : www.IndianTelevision.com
      • Televisions form about 35% of the Rs 110 bn Indian consumer durable market
        • Under Intensive Competition, the marketing strategy adopted to circumvent competition becomes the deciding factor for survival
        • Tapping into all possible segments and price ranges thereby spreading the risk (portfolio)
        • True economies of scale are achieved when plant capacity reaches at least 2 million units per year; this is larger than the size of Indian CTV Market
        • Export markets should be a viable options for domestic players
      General CSFs of the Industry
      • In view of the growing convergence the Indian marketers should have to look for better product features.
      • Indian market is highly price sensitive. So, increased pressure due to competition and overzealous capacity creations has resulted in lower margins. The fiercest players tackling the price front well will have a price related CSF .
      • The high import duties on raw materials (CPT) in India (import duty is 42%) have given more challenges to meet.
      General CSFs of the Industry
    • Market Penetration Penetration of Colour Televisions per thousand households Source : www.IndianTelevision.com
    • Demand Growth Source : www.IndianTelevision.com
    • Export Growth Colour Television Exports in India Source : www.IndianTelevision.com
    • Comparative Analysis Source : www.IndianTelevision.com
    • Capacity Source : www.IndianTelevision.com
    • Product: Salient Features
      • BPL
      • Available sizes: 14” – 29”
      • New available models – Evelux , Digital BPL
      • Collaborations with Sanyo, Toshiba, Harris Communication
      • Available latest technology QPF and Matrix
      • Company ISO Certified
      • Damaged product replacement under warranty period
    • Product: Salient Features
      • ONIDA
      • Available sizes: 14” – 29”
      • Two new models – Candy and IGO
      • Servicing professionals trained from JVC Japan
      • Growth in revenue 33%, rise in net profit 38% (Q1 FY00)
      • Earned exports 78 mn (INR)
      • Damaged product replacement under warranty period
    • Product: Salient Features
      • PHILIPS
      • Available sizes: 14”-32”
      • Two new models available: Match line series and power vision
      • ERP system implemented
      • CRT, LCD technology adopted in Monitor, Speech Recognition System and Security System
      • Incurred a loss of 40.5 cr instead of reducing operating cost from 5.5 – 3 %
      • After warranty Services at nominal cost
      • Damaged product replacement under warranty
    • Product: Salient Features
      • VIDEOCON
      • Available sizes: 21”-29”
      • Multi brands – Akai, Sansui, Kenwood and Toshiba.
      • Availability of a new model Plasma
      • Implemented large ERP system
      • Features like Nicam Sterio, Timer, automatic settings, organizer, Head phone and latest Internet TV available
      • Tie up with Telecruz Technologies INC for NET TV
      • Damaged product replacement under warranty
    • Price: Salient Features
      • List Price
        • BPL: 14” – Rs 7990 – Rs 9980
        • 20”/21” – Rs 13000 – Rs 20000
        • ONIDA: 14” – Rs 7990 – Rs 9980
        • 20”/21” – Rs 13000 – Rs 21,000
        • PHILIPS: 14” – Rs 7990 – Rs 10980
        • 20”/21” – Rs 13000 – Rs 19,000
        • VIDEOCON: 14” – Rs 5900 – Rs 8990
        • 20”/21” – Rs 8490 – Rs 17990
    • Price: Salient Features
      • Discounts available through
        • In exchange of old TVs
        • Tournament or event based like World Cup Cricket
        • Festive season discounts
        • Pre-budget discounts
      • Allowances available through
        • Lottery schemes (Seasonal)
        • Scratch card offer (seasonal)
        • Twin pack offer – Buy one TV, get a washing machine etc. free
        • ‘ Chhappad Phadke’ offer by Videocon – Rs 2000–3000
    • Price: Salient Features
      • Installment facilities available
        • Proof of salary/income statement is required, tie up with various Financial Institution like ICICI, SCB, etc.
      • Discount on full payment in cash
    • Price: Salient Features
      • Event Sponsoring
        • Like Philips National Football League, Videocon Screen Awards,
        • Sponsorship of Entertainment and Television events by other brands like BPL Top 10, etc.
      • Tie-ups with E-Commerce sites (B to C) like Fabmart.com, eBuyGuru.com by Sony India
      • Money bond scheme with every purchase, as done by Akai
    • Price: Salient Features
      • Money back guarantee scheme
      • Customer enticing routes- Replacement of sets, and heavy discounts on new sets as done by Akai
      • Dealer enticing route - as done for Videocon brands
      • Multi brand strategy of Videocon
      • Onida arcade – online selling TV
      • Advertisements through:
        • Newspapers, Magazine, TV, Radio, Glow signs, Banners, Web Advertising
    • Promotion: Salient Features
      • Advertisements done by various eminent popular personalities:
        • like Amitabh Bachhan in BPL, Govinda in Videocon, Sachin Tendulkar in Philips, voice of Amitabh Bachhan is used in Onida Ad.
      • Quick accessibility of CTVs through wide dealer network
      • Increasing distribution outlets of linking them through satellite links
      • For rural sector, moving with painted vans
      • Onida approaches rural co-operative societies
    • Price: Salient Features
      • Presence in both rural and urban market
      • Online connectivity of distributors
      • Distributors are present in almost all state capitals and dealers present in almost all towns and small cities
      Manufacturer Distributor Dealer Customer
    • BPL- Facts
      • Reputation for reliability and quality
      • Tremendous brand equity
      • High brand preference in the replacement market
      • Largest distribution network in the country
      • High level of indigenization (import content as low as 13%) makes it price competitive
      • Technological tie up with Sanyo of Japan has given access to the latest technology
      • Originally targeted middle income group, changing focus and going for middle to high end (newer segments)
      • BPL employing a multi-brand strategy to plug the gaps in BPL's CTV portfolio and use these new brands &quot;to get incremental volumes, while BPL remains the mother brand”.
      • High-end convergence products will come under the Digital-BPL branding. The company has already introduced its digital range.
      • At the low end of the CTV market, BPL is launching primarily to compete with Chinese and local brands. Under the 'Evelux' brand name, BPL will launch it into selective markets regionally.
      BPL - Strategies
      • BPL points out that this new low-end brand “will not just be a cheap product”, and that it will “not just address a price-point issue” but it also has quality.
      • BPL is aggressive on exports.
      • The company’s recent launch includes a 100% pureflat - screen TV, a new 29-inch CTV, a new 25-inch CTV called Studio 25, Plasma Display, i.e. the flat TVs with no picture tubes, the PC-TV, i.e. the Personal Computer-cum-TV.
      • Product innovation, introduction of new features and high brand recall has helped BPL in maintaining its leadership position.
      BPL - Strategies
    • ONIDA - Facts
      • One of the first players to enter into the market
      • Major presence in the Northern and Eastern regions
      • Enjoys substantial Brand Equity
      • Traditionally operated in the premium segment with low volumes and high margins
      • Influx of MNCs right into the segment has put it in the line of fire
      • It is fighting back by launching wide screen models in direct competition with MNCs and also lowering price and trying to cater to lower segments
      • Tie up with JVC ensures access to latest technologies
      • Onida gives more stress to dealer network
      • It introduced ‘Onida Loyalty Programme’, meant exclusively for Onida customers, and ‘Onida Display Contest’ targeted at the dealers
      • The loyalty programme has been branded as ‘Onida—offer for life’, which suggests that the customer need not move out of the Onida banner for the rest of his life
      • Onida keeps introducing contemporary models and helps the Onida owners to upgrade
      ONIDA - Strategies
      • Onida is planning to use its strength in circuit and cabinet design to target very specific premium customer segments.
      • Finally the company will be strengthening its after sales service as it believes that a large scope of differentiation lies here.
      • Aggressive brand promotion’s aftermath has given Onida wisdom to manage volumes.
      ONIDA - Strategies
    • PHILIPS -Facts
      • The late entrant to the Industry
      • Dutch parent company Philips NV increased its stake to 51% at the onset of liberalisation
      • It was a leader in the B/W segment and with the backing of the parent company it launched several new CTV models with latest features
      • Enjoys considerable Brand Equity on account of its 30 year old market presence
      • Positioned at the upper end of the middle to upper market
      • Enforcing its brand image with a media blitzkrieg
      • It uses umbrella brand’s image for promotion
      • Schemes of an additional warranty and a free gift whereby customers get a guarantee of five years are used
      • They emphasize also on new technology products especially digital technology. These include Integrated Wireless FM Digital Wide screen TV, High Definition Rear Projection TV and Real Flat TV DVD
      • Targeting rural middle class also
      PHILIPS - Strategies
    • VIDEOCON - Facts
      • Matching features of the competitors at a competitive price
      • Wide range of models giving choice to the customer
      • Not in competition with MNCs as products are of low price and mediocre quality
      • Recently trying to access premium market through sub brands like Sansui, etc.
    • VIDEOCON - Strategies
      • Positioned at the lower and middle segments
      • Extremely aggressive player adopting high volume – low margin strategy
      • Videocon International is offering discounts along with surprise gifts to its customers on the purchase of a Videocon CTV from time to time especially on seasons
      • Videocon International is already offering scratch card schemes
      • Targeting rural market
      • Company's leadership position is a reiteration of its ability to connect with the customer's mental space
      • It enjoys the image of Japanese umbrella brand having a presence of over the last 53 years
      • The company has evolved into a luminous brand with technology innovation, quality and premium
      • Sony India is trying to expand its product portfolio in the country to have convergence
      • Sony will increase the dealer network by 25%, from 1,488 to 1877. The number of Sony Worlds will also be increased from the current 13 to 26 during this financial year
      • Targeting rural markets also
      New Entrants’ Strategies - Sony
      • Akai used its exchange offer blitzkrieg to root its presence in market. In effect, Akai created a market -- for second-hand CTVs
      • Riding on the low margin – high volume theory
      • Using electronic parts imports from Japan as its strong point
      • Strong after sales service networks
      • Targeting low and middle customer segments
      • Targeting rural markets heavily
      • Too small leadtime for new product launch
      New Entrants’ Strategies - Akai
    • Comparative Positioning Affordable Lower to middle Akai High image Upper Sony Affordable Lower to middle Videocon Features Middle to upper Philips Superior product Middle to upper Onida Quality for price Middle to upper BPL Positioning Target Company