18245513 videocon-television-project-report

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18245513 videocon-television-project-report

  1. 1. INTRODUCITON:Every business organization that comes into contact with the customerdevelops a perception in the mind of the customer. Today, in thiscompetitive world every organization needs to know the perception inthe mind of the customers. In order to gain mind share or heart shareof customers along with the market share is the main lookout for theorganizations. Especially in consumer electronics sector, where theproducts are more or less same, the only way to leave positive impacton customer’s mind and to gain competitive advantage is providingbest possible services to the customers.Introduction part of this report is classified into two different sections.1. Problem Statement The principle cause behind this project is to know that to what level customers are enjoying and aware of videocon TV offered by the company and what further improvement can be done in future in this area so as to get brand awareness.2. Objective • To have an overview of videocon. • To know the reputation of videocon T.V. in the market. • How the consumer preference towards the brand videocon. • The main objective how to increase the reputation of videocon brand in the market. • To understand its competitors in business. • How videocon will create a good image in the market. • To understand the 4 Ps used by the videocon in business RAMAIAH
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  2. 2. CHAPTER-1 STUDY OF THE INDUSTRYRAMAIAH
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  3. 3. INDUSTRY SCENARIOBefore the liberalization of the Indian economy, only a few companies likeKelvinator, Godrej, Allwyn, and Voltas were the major players in the consumerdurables market, accounting for no less than 90% of the market. Then, after theliberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwacame into the picture. Today, these players control the major share of the consumerdurables market.Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growingvery fast because of rise in living standards, easy access to consumer finance, andwide range of choice, as many foreign players are entering in the market.Consumer durables are the products whose life expectancy is at least 3 years. Theseproducts are hard goods that cannot be used up at once.Consumer durables Sector can be classified as follows:1. Consumer Electronics includes VCD/DVD, home theatre, music players, colortelevisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.2. White Goods include dishwashers, air conditioners, water heaters, washingmachines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,microwaves, built-in appliances, tumble dryer, personal care products, etc.3. Moulded Luggage includes plastics.4. Clocks and Watches5. Mobile Phones RAMAIAH
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  4. 4. ABOUT CONSUMER ELECTRONICS INDUSTRY1.History of consuemr Electronics in India The Electronics Industry in India took off around 1965 with anorientation towards space and defense technologies. This was rigidlycontrolled and initiated by the government. This was followed bydevelopments in consumer electronics mainly with transistor radios,Black & White TV, Calculators and other audio products. ColourTelevisions soon followed. In 1982-a significant year in the history oftelevision in India – the government allowed thousand of Colour TVsets to be imported into the country to coincide with the broadcast ofAsian Games in New Delhi. 1985 saw the advent of Computers andTelephone Exchanges, which were succeeded by Digital Exchanges in1988. The period between 1984 and 1990 was the golden period forelectronics during while the industry witnessed continuous and rapidgrowth. From 1991 onwards, there was first an economic crises triggeredby the Gulf War, which was followed by political and economicuncertainties within the country. Pressure on the electronics industryremained though growth and developments have continued withdigitalization in all sectors and more recently the trend towardsconvergence of technologies. In recent years the electronic industry is growing at a brisk pace.It is currently worth $ 10 Billion but according to estimates, has thepotential to reach $ 40 billion by 2010. The largest segment is theconsumer electronics segment. While is largest export segment is theconsumer electronics segment. While is largest export segment is ofcomponents. RAMAIAH
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  5. 5. The breakup of production in various segments the industry is shownbe low: • 1950s Radios -imported & Sold • Late 1960s B&W TV Transmission started • 1970s Manufacturing of B/W TV started • 1982 Colour TV Transmission, Manufacturing of CTV started • 1992 Economic Liberalization Process initiated • 1993-94 Dismantling of controls such as licences, Ban on use of Foreign Brand Names etc. • 1994-95 Entry of MNCs – Panasonic, Sony, LG, Samsung etc. Lowering of Import duties. Cable TV Started. • 1995 Till Date Entry of Many MNCs & Rapid Growth, Continuous Lowering of Import Duties • 2001 Non tariff Barriers on Imports removed. • 2004 Free Trade Agreement (FTA) with Thailand implemented,Resulting in reduction of import duties to 0% on Colour Television sets, Colour Picture Tubes, Refrigerators and Air Conditioners, thus more competition. • 2005 DTH Services Started • 2007 Entry of Organised Retail • 2008 FTAs with other countries & FDI in retail likely. RAMAIAH
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  6. 6. 2. CURRENT SCENARIOThe consumer durables market in India is valued at US $ 4.5 billions currently. In2008, microwave ovens and air conditioners registered a growth of about 25%. Frost-free refrigerators have registered significant growth as many urban families arereplacing their old refrigerators. . Washing machines, which have always seen poorgrowth, have seen reasonable growth in 2006. More and more Indians are nowbuying electrical appliances due to change in electricity scenario. The penetrationlevel of color televisions (CTVs) is expected to increase 3 times by 2008.On the brick of rapid economic growth, India has witnessed the dynamic change incountrys consumer electronics industry. In last few years the industry has beenwitnessing significant changes in retail boom, growing disposable income andavailability of easy finance schemes. One electronic gadget that has brought newrevolution in Indian Electronic Industry is Television Set. Today, India is fastemerging as the key driver in the global television market both as a manufacturer andconsumer. In recent years, the market for televisions in India has changed rapidlyfrom the conventional CRT technology to Flat Panel Display Televisions (FPTV).Currently, the split between CRT and FPTV is around 97% and 3% respectively. Inaddition to this, one of the most striking changes sweeping across the colourtelevision market in Indian market is the exponential growth of the flat paneltelevision (FPTV) market, in common parlance called the liquid crystal display(LCD) and plasma televisions. Moreover, as per recent research data available, theglobal market for FPTV is expected to grow from 51 million units in 2006 to 127million by 2009. RAMAIAH
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  7. 7. Looking at the present scenario, over the last couple of years, the LCD prices haveeven dropped by around 30 per cent annually. Some of the important factors thatboasted this growth also include the increasing awareness of the advantages of LCDtelevisions, the growing availability of the product across dealer counters and theFinance schemes in the market. Besides this, as a manufacturing hub, the televisionindustry is improving more and more. There are many domestic and MNC companiesthat have increased their production bases in the country. Easy availability of low-cost skilled labor and the emergence of SEZs, which are tax-free zones are some ofthe key factors that have resulted in growth of these manufacturing units. In fact,encouraged by tax-breaks, new manufacturing units are coming up in less-developedregions now.Today, India is one of the few emerging countries to have an excellent componentsupply base in terms of manufacturing facilities for glass and color picture tubes, so ithelps it a good choice for all those companies who are looking to take benefit of thisemerging market.In present scenario top player for colour television are • LG • VIDEOCON • SAMSUNG • SONY • ONIDA • PHILLIPS • SANSUI • BPL RAMAIAH
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  8. 8. 3. INDUSTRY ANALYSIS- 5 FORCES MODELMichael Porter’s Five Forces Model provides a robust and time-tested framework foranalysing any industry, reflected in the strength of the five forces (industrycompetitors, potential entrants, threat of substitutes, power of buyers and power ofsuppliers). The collective strength of the five forces determines the ultimate profitpotential in an industry,Where profit is measured in terms of long-term returns on capital invested. Theelements of each of the above forces and the extent and /or effect of each element inthe context of the television industry have been analysed and enumerated below.The Porter’s Five Forces tool is a simple but powerful tool for understanding wherepower lies in a business situation. This is useful, because it helps you understand boththe strength of your current competitive position, and the strength of a position you’relooking to move into. With a clear understanding of where power lies, you can takefair advantage of a situation of strength, improve a situation of weakness, and avoidtaking wrong steps. This makes it an important part of your planning toolkit.Conventionally, the tool is used to identify whether new products, services orbusinesses have the potential to be profitable. However it can be very illuminatingwhen used to understand the balance of power in other situations. RAMAIAH
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  9. 9. 1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH)2. BARGAINING POWER OF BUYER (VERY HIGH)3. BARGAINING POWER OF SUPPLIER (LOW)4. BARRIER TO ENTRY (LOW)5. THREATS OF SUBSTITUTES (LOW) RAMAIAH
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  10. 10. 3.1 Degree of RivalryDegree of rivalry denotes the intensity of competition within the industry. Videocon,LG, samsung, Sony, Onida, are the big competitors in television industry. AlthoughVideocon, another major player has managed to hold its own in the midst of theonslaught from the Korean majors, though profits have suffered. Other large Indiancompanies in the top of the list are Mirc Electronics. While Mirc Electronics ismanaging to hold its share by adopting value for money strategy, BPL is facing toughtime, experiencing drastic decline in market share. Sony, Philips, Akai, Sansui, Aiwa,Toshiba and now Hyundai are the other foreign brands in the market. The industry isbased on numbers game and companies will have to maintain a fine balance betweencatering to lifestyle requirements and meeting the needs of average consumer.3.1.1 Competitor AnalysisA detailed analysis of some of the major players is done below:LG ELECTRONICSLG Electronics rightly understood the consumer motivations to create magneticproducts, price them strategically, position them sharply and keep making themagnetism more potent. Having understood the finer differences in consumermotivations, it opted for sharp- arrow ‘reasons-to-buy’ differentiation over the‘blanket-all approach’ taken by most of the other players. It is an aggressivemarketer. It focuses on low and medium price products.SAMSUNGInitially the strategy of Samsung in India was to create premium image byemphasising global brand. After facing stiff competition from another Korean major-LG, Samsung also started playing price game. In 2004 it reverted back to its premiumpositioning, although it resulted in some loss of market share. In line with the GlobalDigital Initiative of the Parent Company, Samsung India is seeking to acquire digitalleadership in India by introducing its digital ready televisions like the 40" LCDProjection TV, 43" Projection TV and the Plano series of Flat Colour televisions. RAMAIAH
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  11. 11. ONIDAIts popular devil ad although had engendered a strong emotional pull towards thebrand, technologically it represented no advancement. The company plugged the gapby touting its digital technology. Like Videocon, it has also been able to hold itsmarket share. The world-class quality of Onida has enabled the company to make abreakthrough on the export front. It has technical tie- up with the Japan VictorCompany, better known as JVC. So focused is Onida on positioning itself on thepremium, high- tech plank that it is even planning to push its own envelope onobsolescence, much. The strategy is aimed at further broad basing the productoffering of the company, which has largely dominated the top-end of the televisionmarket, across multiple market segments.VIDEOCONVideocon has always been a price player and has an image of a low price brand. Thisentails providing more features at a given price vis-à-vis competitors. It has takenover multinational brands to cater to unserved segments, like Sansui- to flank theflagship brand Videocon in the low to mid priced segment, essentially to fight againstbrands like BPL, Philips, Onida and taken over Akai- tail end brand for brands likeAiwa.Videocon is one of the largest manufacturers of television and its components inIndia and thus has advantages of economies of scale and low cost due toindigenisation. It has the widest distribution network in India with more than 5000dealers in the major cities. It also has a strong base in the semi-urban and ruralmarkets. Due to its multi-brand strategy, it has at present multiple brands at the sameprice point. This has led to a state of diffused positioning for its brands. It has also ledto a cannibalisation of sales among these brands. The flagship brand Videocon haslost market share due to the presence of Sansui in the same segment. Because ofreduction in import duties on CPT the cost advantage of Videocon is also on thedecline. Hence it is facing rough weather and also trying to boost exports. RAMAIAH
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  12. 12. Besides understanding the strategy adopted by different players, several other factors-industry growth, concentration and balance, corporate stakes, fixed cost, and productdifferences need to be analysed to determine the extent of rivalry between theexisting Players.3.2 The threat of potential new entrants (low)High capital required entering into television industry, which needed large investmenton technology, distribution, service outlets and plant. Difficulty for customers inswitching cost, when they are satisfied with their current product as well as difficultlyfor new entrants to have product differentiation because customers had alreadyfamiliar with those established consumer electronics companies, therefore newentrants have to spend a lot on branding and customer knowledge. It is difficult toobtain a license; successful applicant has to undergo through a form of competitiveevaluation, such as a comparative evaluation process.Threat of entry is determined by the entry barriers, which act to prevent new firmsfrom entering the industry. A lower entry barrier makes it difficult for the existingproducers to remain profitable for long. When profits increase, additional firms willenter the market to take advantage of the high profit levels and over time drive downprofits of all firms in the industry. When profits decrease, some firms will exit themarket, thus restoring the market equilibrium. Barriers to entry arise from severalsources:3.2.1 Access to Distribution ChannelsA strong distribution network is absolutely essential to compete in this industry. Notonly does it guarantee a country wide reach for a company’s products but is alsonecessary for providing good after sales service.Videocon has implemented ERP system, which helps in integrating themanufacturing, marketing, procurement and distribution services with the corporateoffice RAMAIAH
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  13. 13. LG Electronics sells in 1800 towns and cities with a population of 1,00,000 andabove.Samsung also has a widespread service network, which includes 123 exclusiveservice centres and 200 distributors in any town with more than 1 lakh population.All BPL dealers are linked via VSAT nodes, ensuring online availability ofinformation on inventory status and sales movement.Distribution hence is difficult and costly as established firms dominate distribution.Large incentives are required to gain entry into the distribution channels and furthergain recommendation to retailers from the dealers.3.2.2 Brand SalienceWith little product differentiation and parity products, it is imperative that distinctimages are created in the minds of consumers through positioning and brand building.MNCs have been able to compress the cost of brand building by amortising the costof sponsoring international events across a larger footprint straddling multiplecountries.3.2.3 Capital Investment and Economies of ScaleTelevision industry is capital intensive and players have made huge investmentsin putting up state of the art manufacturing facilities. Videocon has sevenmanufacturing site in India Sony India had a production capacity of 300,000 CTVsets with capacity utilisation of 66%. Samsung is investing $4 mn to expand its CTVmanufacturing capacity at Noida to 800,000 units per year. The existing capacity ofthe plant is around 600,000 units. Other players like Mirc Electronics, LG have alsoset up manufacturing facilities in India. The market players need sales volume toachieve economies of scale, which is difficult because of large number ofcompetitors. Apart from investments in manufacturing the industry requires hugeworking capital to manage inventories. RAMAIAH
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  14. 14. Supply chain mgmt. and inventory management thus becoming crucial toDeterminingprofitability. With regard to sourcing funds, MNCs are better placed Than theirIndian counterparts as they manage to get funds from their parent Companies at lowrates of interest. Huge capital requirement thus can act as barrierto entry.3.3 Threat of Substitutes goods (low)In Porter’s model, substitute products refer to products in other industries.there is fewsubstitutes from other industry if any. Most of them seem to be obsolete or have onefoot out of door. Internet though emerging as an infotainment medium is very low inpenetration. Moreover the industry has responded to the future threat by introducing aTV that can provide functions of the Internet along with regular features, e.g., BPLdigital that includes Internet and cellular facilities.3.4 bargaining power of Buyer (high)The power of buyers is the impact that consumers can have on a producing industry.Buyer power influences the prices that a firm can charge. Buyer power is influencedby various factors as follows:3.4.1 Buyer ConcentrationThe industry is akin to consumer durables whose end users are fragmented. Hencebuyers do not have any specific influence on producers.3.4.2 Buyer Switching CostThe cost incurred by consumer in switching from one television brand to another ispractically zero. Brand loyalty is low. Hence the companies cannot rest on theirlaurels and have to be on their tenterhooks to retain the customers.3.4.3 Price SensitivityMarket is highly price conscious and promotion driven. With the onslaught ofVIDEOCON’s major price cuts and promotional schemes, this market has now becomea promotion driven one. To successfully compete in this industry, even premiumplayers like Sony, LG have had to come up with schemes. LG and Philips have RAMAIAH
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  15. 15. Been the most aggressive amongst industry leaders as far as pricing isConcerned and hence their realisation shave been lower than industry average.Industry leaders like LG focus on low- medium priced CTV, while Samsung hasMoved gradually towards higher priced CTVs. The domestic high-endCTV prices will follow the global price trend of declining prices. However, thePrices of domestic products would be higher than those of global products dueTo negligible demand in the domestic market and hence most likely to be metThrough imports. market is highly price sensitive as theDemand has increased with fall in prices.3.5 Bargaining power of supplier (low)In television industry, there is low bargaing power of Supplier’s because big globalsupply chain management.there is direct negotation with supplier in order to encourgereliable supply, faster delivery and lower price. Bargaining power influences the costand quality of input material. Higher supplier power raises the input cost, therebyreducing the industry profitability. The most critical component in manufacturingtelevision is the picture tube. It constitutes around 50% of the cost of television.While Black and White picture tubes are made in India, many manufacturers stillneed to import colour picture tubes.The other important components include electronic circuit boards, tuners, high-tension transformers and moulded plastic casings. The demandFor colour picture tubes (CPT) has been rising steadily. But at the same time owingTo customs and import liberalisation, they had to face competition from importsDuring1993-1997. A sharp reduction in import duty from 85% to 40% between1994-96 and further down to 20% by 2004 was announced to gear the manufacturersof picture tubes to face competition from foreign players. As a result of spurt inDemand in 1990s, the CPT manufacturers expanded capacities, which resulted inExcess capacity in the domestic market. Samtel Colour, LG Hotline and JCTElectronics are the major domestic CPT manufacturers The picture tube industry isboth technology and capital-intensive industry. RAMAIAH
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  16. 16. At the same time bulk orders in raw material procurement fetch more discounts,which gives the larger players an advantage over their smaller counterparts. The CPT,the most critical component in a CTV has no alternate use and therefore, the CPTindustry is solely dependent on CTV players, mainly domestic and partly exports.Hence larger players like LG, Samsung and Mirc etc. are able to negotiate betterdeals unlike other players.3.6. CONCLUSIONThe variables affecting the industry with regard to each of the five forces have beenCategorized as favourable or adverse. Favourable variables have the potential toimprove profitability, while adverse variables reduce profitability of the industry.Some strategic initiatives, which could be adopted to leverage the favourable forcesAnd protect themselves from the adverse ones, are as follows:• R&D and Marketing will have to work closely together. R&D will have to play arole in cost innovation, which can cut component cost and raise performance. Thenumber of defectives has to be reduced at negligible levels. The quest should be to doeven better. Each assembly line can be made to compete with the other.• Vital to the spread out is the re-haul of distribution network. Home appliances havenecessitated separate dealers, many of them specialists. For sharper focus on allcategories individually, the market has to be opened wider.• Brand building will be important, so as to ensure brand preference. Marketers willhave to strategise to pull the consumer up the value escalator. A good fraction of salesif come from high margin products as flat TVs and projection TVs would improveprofitability of companies. Sharply differentiated products with effectivecommunication on a continuous basis would be the key for future. Challenge lies increating higher order universal benefits and sensitising the larger audiences to it. RAMAIAH
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  17. 17. LG and Samsung are likely to retain top positions.• Buyers are easily swayed by costs, which are also verified by the presence of largenumber of product offerings. Focus would be on providing value for money to theconsumer, with more brands in the economy segment. The challenge beforemarketers is to span out, and address a wider set of needs. They will have to identifysegments not addressed by them so far and also introduce low price-point productsaimed at rural markets.• Besides catering to the cost conscious segment, marketers need to segment themarket on the basis of psychographics, which will help in inducing brand loyaltythrough lifestyle and experiential marketing.• The increase in disposable incomes, more number of households above thethreshold income, declining prices, shortened replacement cycle and the demand formultiple TV, all these factors are expected to sustain the growth momentum at 10-12per cent during 2008-09 to 2010-11. RAMAIAH
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  18. 18. CHAPTER-2 STUDY OF THE COMPANYRAMAIAH
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  19. 19. COMPANY PROFILEBrief ProfileThe Videocon group emerges as a USD 2.5 Billion global conglomerate continuing toset trends in every sphere of its activities from a conference room sized assembly linein 1979.Today the group operates through 4 key sectors: 1. Consumer durable 2. Thomson CPT 3. CRT glass 4. Oil and gasConsumer Electronics, Home Appliances & Compressor manufacturing in IndiaWe enjoy a pre-eminent position in terms of sales and customer satisfaction in manyof our consumer products like Colour Televisions, Washing Machines, AirConditioners, Refrigerators, Microwave ovens and many other home appliances,selling them through a Multi-Brand strategy with the largest sales and servicenetwork in India. Our compressor manufacturing technology in Bangalore furthersupports refrigerator manufacturing.Display industry and its componentsWith the Thomson acquisition Videocon has emerged as one of the largest ColourPicture tube manufacturers in the world operating in Mexico, Italy, Poland and China,continuing to lead through new innovative technologies like slim CPT, extra slimCPT and High Definition 16:9 format CPT. RAMAIAH
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  20. 20. Colour Picture Tube GlassVideocon is one of the largest CPT Glass manufacturers in the world with a highlevel of experience and technical expertise operating through Poland and India.Videocon will leverage on this synergy after the Thomson acquisition to internallysource glass for its CPT manufacturing increasing efficiencies and lowering costs.Oil and GasAn important asset for the group is its Ravva oil field with one of the lowestoperating costs in the world producing 50,000 barrels of oil per day. The group hasambitious plans for expansion in this RAMAIAH
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  21. 21. BRAND-BASKETPartner Product Nature Of Tie-UpSamsung Electronics Fly Back, Tuners Technical Support Transformers Matsushita Electric Washing Machine Technical * Collaboration Matsushita Electric Air Conditioner Design & Drawing Matsushita Electric Refrigerator Design & DrawingSansui Electric Co. Ltd Audio Products ODM for Indian Market And Colour TV Techneglas Glass Shell Technical Collaboration Akai Audio Products ODM for Indian Market And Colour TVHyundai Colour TV ODM for Indian MarketElectrolux AB Sweden Refrigerator, 1.ODM & Indian Market Air Conditioner and 2.Sourcing of components for Washing Machine Global Market 3.ODM for Global market
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  22. 22. HISTORY

 
 















 • Color

&
BW
TV

 • Washing
Machine
 
 • Home
Entertainment
Systems
 • Electric
Motors
 • AC
 • Refrigerators
 • Coolers
 • Glass
Shells
for
CRT
 • Kitchen
Appliances
 • Crude
oil
 • Compressor
 • Compressor
Motors
 • Philips
Color
TV
Plant
Take
Over
 • ElectroLux
India
Three‐Plant
Takeover
 • Thomson
CPT
Acquisition
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  23. 23. Ownership pattern: Shareholding Pattern as on 31-03-2009 Number of As a Number of Total shares held in Sr. Category of % of As a % of shareholder number of de No shareholder (A+ (A+B+C) s shares materialized B) form(A) Shareholding of Promoter and Promoter Group(1) Indian(a) Individuals/Hindu 13 1619838 1292950 0.87 0.73 Undivided Family(b) Bodies Corporate 44 153823583 152711452 82.6 69.57 Sub-Total 57 15544342 154004402 83.4 70.3 (A)(1) 1 7(2) Foreign(a) Individuals(Non- 0 0 0 0 0 Resident Individuals/Foreign Individuals)(b) Bodies Corporate 0 0 0 0 0(c) Institutions 0 0 0 0 0(d) Any Other (specify) 0 0 0 0 0 Sub-Total 0 0 0 0 0 (A)(2) Total Shareholding 57 15544342 154004402 83.4 70.3 of Promoter and 1 7 Promoter Group (A)= (A)(1)+(A)(2)(B) Public shareholding(1) Institutions(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02(b) Financial Institutions/ 36 304403 291166 0.16 0.14 Banks(c) Insurance Companies 5 5600352 5599752 3.01 2.53(d) Foreign Institutional 95 13467563 12706367 7.23 6.09 RAMAIAH
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  24. 24. Investors Sub-Total 157 19408889 18632513 10.4 8.78 (B)(1) 2(2) Non-institutions(a) Bodies Corporate 1927 5516620 4962476 2.96 2.5(b) Individuals(i) Individual 342862 4685290 2998613 2.52 2.12 Shareholders holding nominal share capital up to Rs. 1 lakh(ii) Individual 19 1171618 1171618 0.63 0.53 Shareholders holding nominal share capital in excess of Rs. 1 lakh(c) Any Other (specify) 0 0 0 0 0 Sub-Total (B)(2) 344808 11373528 9132707 6.11 5.15 Total Public 344965 30782417 27765220 16.5 13.93 Shareholding (B)= 3 (B) (1)+(B)(2) TOTAL (A)+(B) 345022 18622583 18176962 100 84.23 8 2(C) Shares held by 2 34867863 34862403 0 15.77 Custodians and against which Depository Receipts have been issued GRAND TOTAL 345024 22109370 21663202 100 100 (A)+(B)+(C) 1 5 RAMAIAH
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  25. 25. Vision & MissionVideocon’s mission: a reflection of continuity and changeVideocon’s mission expression has been crafted to envelope both extant andemerging realities:“To delight and deliver beyond expectation through ingenious strategy, intrepidentrepreneurship, improved technology, innovative products, insightful marketingand inspired thinking about the future.”A breakdown of the statement above reveals a ‘means and end’ approach, where theend is articulated at the beginning with the means linked to it.“To delight and deliver beyond expectation…”: the endThis segment not only underlines the importance of the ultimate goal - customersatisfaction (‘delight’) and ultimate target - the customer, but also of intermediateprocesses and principals, which have contributed to building a robust, dependableVideocon value chain (‘deliver’). As a result of its focus on developing loyalcustomers and reliable associates, Videocon is able to exceed expectations.“…Through ingenious strategy…”: the meansIn the cutthroat world of today, it is only by taking recourse to advance planning andstrategy that a business can hope to survive. Although textbook strategy has its uses,reproducing it in verbatim for the real world would be foolish because of the absenceof textbook conditions. Thus, there is a need for a bounded rationality, spontaneityand improvisation that is flexible enough for scenarios both imaginable andunimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy thatabstracts from shifting ground conditions and decides game plans, or sometimeschanges the rules of the game. RAMAIAH
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  26. 26. “…Intrepid entrepreneurship…”: the meansAn enterprise with the odds stacked against it makes great business sense. This isbecause higher the obstacles, lower the number of players likely to be active in thatfield - thus, fetching extraordinary returns. The only requirement is a bold andconfident attitude willing to brave the odds. Videocon’s foray into oil and gas is abold and intrepid endeavour that arises from immense faith on the surefootedcompetence of the company’s in-house managerial talent.“…Improved technology…” the meansTechnology is no more a premium input; it has become the bare minimum in recentyears. Rapid advances have only fuelled this phenomenon. Videocon is extremelyvigilant in shunting out dated technology and replacing it with the best-in-class offersof the times.“…Innovative products…” the meansProduct development, innovation and customisation are the tools Videocon uses tostay ahead of the competition. This is because a continuous stream of innovativeproducts excites the market and enhances brand recall. A strategy that Videoconbanks on a lot, especially on the domestic front“…Insightful marketing…” the meansThe market share battle scene has long shifted from technology and processes to thepsyche of the customer. This means that those with deeper insights into the elusivemind of the buyer are likely to dominate. Videocon is reinforcing marketing strengthsto read better the pulse of the market and help create products that map perfectly intocustomer preferences.“…Inspired thinking about the future.” the means The future is unpredictable, but not doing anything about it is fraught withgrave risk. Videocon extrapolates future trends on the basis of current changes intechnology and preferences as well as sheer gut feel. RAMAIAH
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  27. 27. Corporate GovernanceCompanys Philosophy on Code of Governance:The companys philosophy on corporate governance enshrines the goal of achievingthe highest levels of transparency, accountability and equity in all spheres of itsoperations and in all its dealing with the shareholders, employees, the governmentand other parties. The company believes in the philosophy on code of corporategovernance, which provides a structure by which the rights and responsibility ofdifferent constituents, such as the board, employees and shareholders are carved out.In carrying out this, it is ensured that the companys objectives are well defined andperformance against those objectives are adequately measured and monitored.Corporate governance is considered as an important tool for shareholders rotectionand maximization of their long -term values. The cardinal principal such asaccountability, responsibility, transparency and fair disclosure serve as the means forachieving this. R&DThe company gives utmost importance to the R & D activities, which are carried out,at in-house R & D center. The company carries on new innovations in productdevelopment, cost reduction, quality improvement, process implementations, processcontrols.1) Specific areas in which R & D is carried out by the companyDuring the year, the company has carried out Research and Development in thefollowing areas.Home theaters -High-end models and HTIB Models.Larger Screen Television i.e.32 Inch and 38inch.True Flat TelevisionsPlasma TelevisionsCosmetic design and new out look to the TVsManufacturing of components for CTV, Refrigerators and Air conditioners. RAMAIAH
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  28. 28. Efforts to reduce power consumption of all its final products.2) Benefits derived as a result of the above R& D.The company has derived the following benefits as a result of the Research andDevelopment:Development of new design in product and launch of various new models.Able to compete with the foreign players in the Indian Markets by cost reductions andoffering innovation features and to maintain market leadership in Television underVideocon umbrella.Increase in productivity.Reduction in power consumption of some of the products.3) Future Plans of actionIn the coming days company is aiming to achieve development in the following areasthrough Research & Development:Manufacturing of components for consumer Electronics Products. Multimedia TV. Plasma Televisions. Launching of New Brands & Sub-brands under Videocon umbrella. Composite Home Entertainment system with internet adaptability. To work on better features, better quality & improved reliability with reduced/low prices.Your company always attempts to use the latest and advanced technology inproduction process. Keeping pace with the technological developments, the companykeeps on adding sophisticated equipments with focus on automation to minimizemanual intervention in the manufacturing process thereby ensuring quality of thefinal products. RAMAIAH
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  29. 29. Future PlansTo strengthen and maintain & its leadership status, the Videocon group has clearlycharted out its course for the future. Aggressive development is in full swing at the R& D Centres to bring out state-of-the-art technologies including True Flat, Slim,Extra Slim, Plasma & LCDs, at the earliest.Cost rationalization processes - are in various stages - including rationalizingfactories in Europe, increasing automation and improvement of efficiency in China,accessing flass shells from India for international CPT facilities and a lot more - arein various stages of implementation.Internationally all existing client relationships are being strengthened. The costcompetitiveness and increase in capacity in Mexico and Polland has opened up bigopportunities in the OEM business.Last but not the least, in the domestic market consolidation with multiple brandspaves the way for an unassailable lead in the market.In the Oil & Gas business, having all the basic operator capabilities of a prospectingentity, the group is looking to add more explorations and production depth as also oilbearing assets. The group will also get into gas distribution in India siginificantly.Board Of Directors Mr. Venugopal N Dhoot Mr. Pradeepkumar N Dhoot Mr. K C Srivastava Mr. Kuldeep Kumar Drabu Mr. Satyapal Talwar Mr. S Padmanabhan Maj. Gen. S C N Jatar Mr. Arun L Bongirwar Mr. Didier Trutt (Nominee - Thomson S.A) Mr. Johan G Fant (Nominee - AB Electrolux (Publ) ) Mr. B Ravindranath (Nominee - IDBI Limited) Mr. Ajay Saraf (Nominee - ICICI Bank Limited) RAMAIAH
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  30. 30. ORGANIZATION STRUCTURE CHART: RAMAIAH
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  31. 31. FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION: STORE DEPARTMENT: Functions: 1. Purchase of all items indented by user functions like spares Consumables etc., other than plant and equipment. 2. Registration of suppliers and evaluation. 3. Maintenance of Stores. 4. Inventory control of stock items. 5. Co-ordination with finance department for timely payment to the Suppliers. RAMAIAH
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  32. 32. FINANCE DEPARTMENT Functions: • To comply with legal and other requirement. • To provide information for stakeholders about financial performance and viability • To provide managers with information for decision-making • To provide a structure to business activity based on the careful processing of numerical data. RAMAIAH
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  33. 33. MARKETINGDEPARTMENTFunctions: The smooth functioning of the marketing, sales and delivery operation Corrective actions on customer complaints New initiatives taken for sales maximization of the company Handling relationship with personal, communicating and reporting to the management. Developing sales programs and formulating and designing sales polices. RAMAIAH
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  34. 34. PRODUCTION DEPARTMENT Functions: Production and planning Purchasing Stores Design and technical supports WorksProduction cycle: RAMAIAH
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  35. 35. AUDIT REPORTWe have audited the attached Balance Sheet of VIDEOCON INDUSTRIESLIMITED, as at 31st march 2009, Profit and Loss Account and alsoThe Cash Flow Statement of the Company for the year ended on that dateAnnexed thereto. These financial statements are the responsibility ofThe Company management. Our responsibility is to express an opinionOn these financial statements based on our auditWe conducted our audit in accordance with auditing standardsGenerally accepted in India. Those Standards require that we plan andPerform the audit to obtain reasonable assurance about whether theFinancial statements are free of material misstatement. An auditIncludes examining, on a test basis, evidence supporting the amountsAnd disclosures in financial statements. An audit also includesAssessing the accounting principles used and significant estimates madeBy management, as well as evaluating the overall financial statementPresentation. We believe that our audit provides a reasonable basis forOur opinion. ANNEXURE REFERRED TO THE AUDITORS REPORTStatement referred of the Auditors Report of even date to the Members ofVIDEOCON INDUSTRIES LIMITED on the financial statements for theYear ended 31st march 2009.(i) (a) The Company has maintained proper records showing fullParticulars including quantitative details and situation of fixedAssets.(b) As per the information and explanations given to us, physical RAMAIAH
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  36. 36. Verification of fixed assets, other than those under joint venture, hasBeen carried out at reasonable intervals in terms of the phasedProgramme of verification adopted by the Company and no materialDiscrepancies were noticed on such verification. In our opinion, theFrequency of verification is reasonable, having regard to the size ofThe Company and nature of its business.(ii) (a) As per the information and explanations given to us, theInventories (excluding stock of crude oil lying at extraction site withthe Operator) have been physically verified during the year by theManagement. In our opinion, having regard to the nature and location ofStocks, the frequency of the physical verification is reasonable.(b) Procedures of physical verification of inventory followedBy the management are reasonable and adequate in relation to the sizeHave the Company and the nature of its business.(c) The Company is maintaining proper records of inventory. As per theInformation and explanations given to us, the discrepancies noticed onPhysical verification of stocks were not material in relation to theOperations of the Company and the same have been properly dealt with inThe books of account.(iii) As per the information and explanations given to us, theCompany has not granted or taken any loans, secured or unsecured,To/from Companies, firms or other parties covered in the registerMaintained under Section 301 of the Companies Act, 1956.(iv) In our opinion and according to the information and explanationsGiven to us, there are adequate internal control systems commensurateWith the size of the Company and the nature of its business with regardTo purchases of inventory and fixed assets and for the sales of goods RAMAIAH
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  37. 37. And services. During the course of our audit, we have not observed anyContinuing failure to correct the major weakness in the internalControls systems.(v) (a). Based on the audit procedures applied by us and according toThe information and explanations provided by the management, we are ofThe opinion that the particulars of contracts or arrangements referredTo in Section 301 of the Companies Act, 1956 have been entered in theRegister required to be maintained under that section.(b) In our opinion and according to the information and explanationsGiven to us, the transactions made in pursuance of contracts orArrangements entered in the register maintained under Section 301 ofThe Companies Act, 1956 and exceeding the value of Rupees Five lakh, inRespect of any party during the year, have been made at prices whichAre reasonable having regard to prevalling market price at the relevantTime.(vi) The Company has not accepted any deposits from the public withinThe meaning of the provisions of Section 58A and 58AA or any otherRelevant provision of the Companies Act, 1956 and rules made thereUnder.(vii) In our opinion, the Company has an internal audit systemCommensurate with its size and nature of its business.(viii) The Central Government has prescribed maintenance of the costRecords under Section 209(1)(d) of the Companies Act, 1956 in respectOf the Companys products. As per the information and explanationsProvided to us, we are of the opinion that prima facie, the prescribedRecords have been made and maintained. We have however not made aDetailed examination of the records with a view to determine whetherThey are accurate or complete. RAMAIAH
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  38. 38. (x) There are no accumulated losses as at 31st march 2009. TheCompany has not incurred any cash losses during the year covered by ourAudit and the immediately preceding financial year.(xi) Based on our audit procedures and the information and explanationsGiven by the management, we are of the opinion that the Company has notDefaulted in repayment of dues to financial institutions, banks or toDebenture holders during the year.(xii) The Company has not granted any loans and/or advances on the basis ofsecurity by way of pledge of shares, debentures and other securities. (xvi) The term loans raised during the year were applied, on an overall basis,For the purposes for which the loans were obtained.(xvii) The balance sheet of the Company, we report that the Company hasNot used funds raised on short-term basis for long-term investments.(xix) The Company has not issued any secured debentures during theYear. The Company has created security in respect of debentures issuedIn earlier years.(xx) During the year the Company has not raised any money by way ofPublic issue. (xxi) According to the information and explanations given to us, noFraud on or by the Company has been noticed or reported during the RAMAIAH
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  39. 39. CHAPTER-3 SWOT ANALYSISRAMAIAH
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  40. 40. SWOT AnalysisStrengths1. Videocon has largest distributed capacity manufacturing base across India with 17 facilities and plant in china, Poland, itally, Mexico.2. Manufacturing capacity is 1, 40000 units.3. Videocon has a network of 400 plus service and 85 mobile service vans to give better service to their customers.4. Tie up with the Matsushita electric company of Japan add to the goodwill of Videocon5. Customers are aware about Videocon’s products.6. Company has good brand name.7. Strong backward integration8. Videocon has largest distribution manufacturing based across in India.9. Large brand basket10. Multi brand strategy11. 3rd largest picture tube manufacture in India12. Cheap price.13. Globally acceptance.Weaknesses1. Less investment on advertisement of Videocon CTV2. Fewer margins to the distributor/dealer.3. Weak promotional strategy of CTV.4. No proper approach of target customer.5.wide brand basket, which might lead to conflictof interest unless Effectively managed6.CRT technology is losing popularity.7.less focus on unconventional channel.8. Not providing good service.9.No exclusive show rooms RAMAIAH
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  41. 41. Opportunities1. Videocon takes over the Electrolux.2. Videocon buy Thomson color picture tube manufacturing plant.3. Videocon international is going global.4. Videocon exploring whole new segment5. During the climate of Jaipur becomes hotter day by day and coolers do Not fully satisfy the customers requirement. This provides a great Opportunity for ac manufacturers.6. Growing semi urban market.7. Industry is in increasing phase.8. Price has come down; now more and more people are going for it.9. Due to financial facilities even the medium segment is going for it.10. Purchasing power of people is increasing day by day. Moving into new attractive market segments.11. Focused on unconventional channels.12. Mergers joint venture of strategic alliances.Threats1. Entrance of global competitor like china.2. Brand loyalty is more of LG &other company.3. Market condition like slumps in market.4. A new competitor in your home market.5. Competitor has a new innovative substitute product or service.6. Increased trade barrier.7. Brand reputation is not good.8.Competition in global CPT market especially from integrated players such as LG- Phillips, Samsung, and Matsushita is intense. RAMAIAH
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  42. 42. CHAPTER-4 LEARNING EXPERIENCERAMAIAH
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  43. 43. LEARNING EXPERIENCE 1. During the project training in the market, I understand how it works practically from start point to end point. Before that I have only theoretically idea of marketing management. 2. It is great experience to see these entire things happen infront of eyes. It enhances my practical knowledge from one level to another level. 3. I have also learnt how corporate world functions and the importance of discipline in your work life. 4. My manager supperted me in gaining sufficient knowledge about the companyand industrythis help me complete the project successfully. 5. I have learned about the videocon products esp. television which are sales in India 6. I have learned about sales procedure of company. 7. I have learned about the competitors of videoco 8.

I became much more confidant and the experience has helped me to brush my communication skills. 9. Apart from this entire thing it gives me real picture about supply chain. I visited each department & it is good learn experience to me when employees share their experience for the organization to achieve the goal. 10. I have learnt that to convince someone what is required is complete knowledge of your product and how will it benefit the client 11. The training was informative & educative. It was a practicallyexposure to me. Observe different strategies adopted by company and its competitors. (Low price, quick delivery, good service) RAMAIAH
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  44. 44. CHAPTER-5 RESEARCHMETHODOLOGY RAMAIAH
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  45. 45. 5.Research problem Problem Statement• The problem of this project is to know that to what level customers are enjoying and aware of videocon TV offered by the company and what further improvement can be done in future in this area so as to get brand awareness. The main objective how to increase the reputation of videocon brand in the marketBy this project I want to Create brand awareness of videocon soit help in seller in following way:• Videocon brand name makes it easier for the seller to process orders and tract down problems.• Videocon brand name provides legal protection of unique product features.• It become well-known brand helps the seller in segmenting the market.• Brand loyalty of videocon brand gives seller some protection from competitors and greater control planning.• Good videocon brand awareness helps in building the corporate image.• Videocon brand awareness gives warranty of quality and satisfaction in the mind of the customers. RAMAIAH
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  46. 46. Videocon brand awareness helps buyers / consumersin following ways • Brand awareness helps shoppers in moving quickly through super market or retail store and helps in making quick decisions. • For customer the videocon brand is Easy to identify and recognize • It should be distinctive and create a good imagein customer mind. • Should be capable of being registered and protected legally. • A deep brand must have Brand Equity. Research methodologyResearch methodology is considered as the nerve of the project. Withouta proper well-organized research plan, it is impossible to complete theproject and reach to any conclusion. The project was based on the surveyplan. The main objective of survey was to collect appropriate data, whichwork as a base for drawing conclusion and getting result.Therefore, research methodology is the way to systematically solve theresearch problem. Research methodology not only talks of the methodsbut also logic behind the methods used in the context of a research studyand it explains why a particular method has been used in the preferenceof the other. RAMAIAH
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  47. 47. 5.2. Research design:Research design is important primarily because of the increasedcomplexity in the market as well as marketing approaches available tothe researchers. In fact, it is the key to the evolution of successfulmarketing strategies and programmers. It is an important tool to studybuyer’s behavior, consumption pattern, brand loyalty, and focus marketchanges. A research design specifies the methods and procedures forconducting a particular study. According to Kerlinger, “Research Designis a plan, conceptual structure, and strategy of investigation conceived asto obtain answers to research questions and to control variance.The General study was converged as a specific study for videocon. Thestudy was initiated to find out the consumer profile, brand perception andcross preference among videocon and Competitor brands.Our approach to the research design tasks went through the followingtasks.Information needed?Measurement and scaling Procedures?Appropriate Data collection?Sampling Process and sample size?Data Analysis plan RAMAIAH
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  48. 48. These issues are addressed as the following◊ Research Type Descriptive Research◊ Data Type Primary and Secondary data◊ Research Tools Questionnaire Observation Enquiry◊ Sampling Units customer/Dealers/ Retailers◊ Sample Size Customer (100)/Dealers/ Retailers (50)◊ Sampling Method Random Sampling Method◊ Sample drawn from Jaipur5.3.TypeThe data collection was done through1. Secondary Data Analysis2. SurveySecondary data is obtained by contacting the retailer and dealers.5.4.Scaling TechniquesWe asked the customers to rank the various attributes on a scale of veryimportant, Important and not very important. To find-out the brandperception of various brands, paired comparison between them is used. RAMAIAH
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  49. 49. 5.5.Questionnaire Design Questionnaire design was the critical issue as the questionnairereflects the survey purpose .The questionnaire was meticulously preparedby identifying the various variables. The same scale of yes/no and veryimportant, important and not so important was used through out so as tomake the respondent comfortable.Firstly a questionnaire was prepared and few people were surveyed. Afterthis survey we realized the flaws in the questionnaire and then a modifiedquestionnaire was prepared and people were surveyed on this modifiedquestionnaire. 5.6 Sampling TechniquesIn the survey conducted, the sample was random in nature comprising ofpeople from different age groups and income stratas.4.7.Data CollectionData collection is the important step after the sample is selected on whichthe survey is being conducted. With data that is available in the hardform we converted that to electronic form, to analyze the data using theMS Excel softwares. In the data collection customers were approachedduring the working hours at dealers point.The first part of the survey was a disguised survey was there was nomention of videocon as Organization. It was conducted as a part ofinstitute project. Purpose of the survey was explained and was asked RAMAIAH
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  50. 50. whether they are interested to take part in the survey Later Questionnairewas handed over to them, and necessary instructions were given tocomplete the questionnaire .The questionnaires were returned back afterfiling up on their convince, While receiving the filled in questionnairecare was taken to check whether there are any unfilled items in thequestionnaire.5.8. Data AnalysisThe data of score of features and score of brand perception was fed intothe excel sheet. Separate Excel sheets were employed for analysis of eachbrand and also to keep it concise and unambiguous. For data analysis Iuse many types of charts: • Pie chart:This is very useful diagram to represent data, which are divided into anumber of categories. This diagram consists of a circle of divided into anumber of sectors, which are proportional to the values they represent.The total value is represented by the full create. The diagram bar chartcan make comparison among the various components or between a partand a whole of data • Bar chart:This is another way of representing data graphically. As the nameimplies, it consist of a number of whispered bar, which originate from acommon base line and are equal widths. The lengths of the bards areproportional to the value they represent. RAMAIAH
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  51. 51. 5.9 Limitations of SurveyResponse Errors - These may arise when the respondents giveinaccurate or incomplete answers. For e.g. in our survey a respondentmay not mention that he had test driven a car before purchasing it Amajor problem faced in the survey involved the comparative ratings ofvarious attributes for all the brands of cars. Many of the respondents werenot very willing to rank so many factors as they perceived it to be timeconsuming.Open Ended Questions – All the questions in the questionnaire wereopen-ended to avoid any kind of bias from the respondents end. But adrawback of this approach is that there was an incomplete capture of hisresponses, as the respondent could not always ome out with the purchasesteps and the time taken in them. The reasons for such inaccuracy couldbe because of unfamiliarity, fatigue, boredom, faulty recall and theQuestion format.Random Sampling Errors – This can occur, as the particular sampleselected is an imperfect representation of the population of interest. Thearea covered in the survey was jaipur region and the customerpreferences and tastes in differentRegions could not be covered. RAMAIAH
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  52. 52. CHAPTER-6 FINDINGS AND ANALYSISRAMAIAH
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  53. 53. Demographic profile Gender profile Male 28% Female 72% RAMAIAH
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  54. 54. FAMILY-INCOME • Income group determines the sector in which a company wants to foray and be a market leader; also knowing the income level of the customer will help the company to modify the products according the buying capability of the customer, which depends upon the Income level. • Here we have divided the customers according to Monthly Income and found that the most of the consumer income is below Rs10000,so they prefer only less costly television. • There is also good amount of people of high income (Rs 350000+) • Here I can infer that there is all income level people available in this segment so company need a good product range. OCCUPATION DISTRIBUTION RAMAIAH
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  55. 55. Inference: • This diagram show that most of the people occupation is private service. 
 • Also good amount of business man available here. 
 • By this we can know about difference in preference. 
 • By knowing occupation distribution clearlythe company can segment and target customer according to their occupation. 
 
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  56. 56. Awareness about videocon, SAMSUNG & LG by Customers(Given in percentage form)From the above pie – charts, it is clear that most of the customers(62%) of Videocon came to know about Videocon through TVadvertisement as compare to customers of Samsung and LG. As far asprint media ad is concerned, only few customers came to know aboutVideocon through print media ad as compare to customers of Samsung& LG. But no customers of Videocon came to know about Videoconthrough hoardings and billboards, but few customers came to knowabout Samsung & LG through hoardings and billboards.Hence, we can infer that Videocon is doing positioning through TVadvertisements rather than through print media ad and hoardings andbillboards. They should more focus on word to mouth marketingbecause they are weak in this. RAMAIAH
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  57. 57. Why videocon, SAMSUNG or LG?(Given in percentageform)InferenceFrom the above figures, it indicates that people give more preferenceto price as compare to other attributes (Like Brand & Quality) whilebuying the Videocon products. we observe here that service is notgood at videocon . Hence, we can infer that LG & Samsung are strong brand andhaving more quality than Videocon (as given in Table and Pie-chart).Also, LG & Samsung products are more expensive than Videocon. RAMAIAH
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  58. 58. From where you prefer buying consumer durables  Co.shoppee  Showroom  Exhibitions  On-lineInference: 1. A majority of customers prefer to buy from co.shoppee. Very less proposition of customers buys from Online and Exhibitions. 2. 49% customers are prefer to by from the showrooms because the showrooms are more convenient to customers they also think that these shops give more discounts. 3. People are less interested to buy from the exhibition they only visit the exhibition for price quotation of the product and the comparison of the product. RAMAIAH
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  59. 59. You prefer to buy from the same as you have mentioned in above que. Because offollowing reasons  Attractive Price  Service  Demonstrations  Offers  ConvenienceInference 1. Customers buy from showrooms because of the service and convenience. These are two main factors. 2. Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service. 3. Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms. 4. Price also a factor that attracts the customer in these showrooms. RAMAIAH
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  60. 60. Do you prefer any financial scheme to purchase consumer durable?  Yes  NoInference 1. Majority of the consumer donot want to go for financial scheme. 2. 16% consumer is not a small amount, there is only t.v.few company which provide financial scheme 3. If t.v. Company easily provide this scheme to consumer so they can attract more customer. RAMAIAH
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  61. 61. Would you wait for festive season for available discounts for purchase aTelevision?  Yes  NoInferenceBy this we can infer some customer prefer to buy t.v. on some festival.North India is more belive in festival.On festival company can attract customer by give some typa of discount . RAMAIAH
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  62. 62. Up to how much money are you willing to spend on a t.v? at this time: a) Less than 6000 b) 6000-13000 c) 13000-20000 d) 20000-30000 e) more than 30000Inference:By this diagram I can infer than most of customer are see price, if company providesome good product with more features and style and design it will help in incresemarket share.Some customers are want to spend a big amount of money on t.v. these customerdon’t care money because of high income so company also need to work on R&D, socompany can provide a different product. RAMAIAH
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  63. 63. How do you feel after using the videocon t.v? a) Excellent b) Good c) Fair d) PoorInferenceThere is 19% customer who not satisfies with product and feels poor about the t.v.Company has to find out all the reason and should work on it.If company don’t attarct old customer this will become a big threat for company. RAMAIAH
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  64. 64. CHAPTER-7 FINDING ANDRECOMMENDATIONSRAMAIAH
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  65. 65. Dealer survey Findings 1. By calculating the display share we found that in most of store VIDEOCON has 24% display share almost all categories. 2. By the actual monthly sale of particular store we came to know the capacity of the store and how much product can they sale. 3. It helps us to know that weather dealer is capable of being a direct dealer of VIDEOCON or not and it also helps to find out the new dealer who are capable of being the dealer of VIDEOCON. 4. We also came to know while visiting the shops that there was big problem of after sale service. 5. Many dealers were facing the problem of after sale service because there is no follow up calls from VIDEOCON. 6. Demo calls also not done properly. 7. Videocon is on 3rd rank in jaipur CTV. 8. Sales promotion scheme are sufficient. 9. Pricr range preferred by consumer is generally in between 70000 to 13000. 10. Dealer are not satisfied with the incentive provided by the company 11. The top competitor of VIDEOCON product in Jaipur is LG and SAMSUNG. 12. In Jaipur area the performance of VIDEOCON is in better position but the competitor also hold closer margin. 13. There is high growth of sale in market due to booming in new technology and better service. RAMAIAH
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  66. 66. 14. Word of mouth plays a vital role in awareness among customer. This is one factor, which can play a good role in promotion of products as well as demonstration given by the shopkeeper also plays a vital role for customer. 15. Marketing growing so that is good sign for company in coming year. 16. Consumers are mostly gets attracted by the price discount offered by company and product warrantyRECOMMENDATIONS AND SUGGESTIONS 1. VIDEOCON should improve it’s after sale service because its hits badly VIDEOCONs market share in Jaipur region. 2. More detailed customaries service is to be provided. 3. The training to in shop demonstration should be given at frequent time interval and feedback should be considered positively. 4. The company should look into the matter of person hiring for in shop demonstration. A big VIDEOCON showroom should have at least 2 such kind of person. 5. VIDEOCON should try new dealer who have the potential. So they can target more market. 6. As there is a bottleneck competition between Samsung and VIDEOCON, it is necessary to take measure steps to overcome the area of downfall in VIDEOCON with respect to Samsung. 7. The marketing managers should make better relations with dealers and reputation of the company. 8. Customer considers quality as their first preference, so the company should give more stress on this. 9. The switching of customer from VIDEOCON product to other brand is due to the bed after sell service in shop. RAMAIAH
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  67. 67. 10. The product is well aware and it is on top of mind of customer. So company should always improve services and update their technology. CUSTOMER SURVEY FINDINGS1. Secondary supports play an important role in the customers mind and create awareness among the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors.2. From the survey it was found out that the majority of customers don’t buy consumer durables from exhibitions. They just visit the exhibitions to see the co. latest model.3. They want to buy from the showrooms or from co. showrooms. For them service is important. Beside convenience and other factors service is key factor.4. Also majority of customers do not want any financing scheme for purchasing the durables.5. There was heavy rush on weekends so large numbers of ISD’s were appointed that day. Also the live demo calls helps in selling. Exchange offers also generate sale.6. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand.7. In survey we found that VIDEOCON has captured maximum market share in every category. VIDEOCON dominates CTV, LCD, and Refrigerator, and Washing machine, category. RAMAIAH
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  68. 68. 8. The product is well aware and it is on top of mind of customer. 9. Customers are also now very choosy in buying the product and it is important for the company to make loyal customer of their brand. 10. Spending on advertisment and publicity of less as compare to the competitors. There is need to increase advertisement. Consumer prefers electronic media for advertisement and retailer also prefer TV advertisement. 11. The quality of videocon CTV is acceptable to the market. Consumer and retailer both are satisfied with the quality of videocon CTV. 12. Consumers are mostly gets attracted by the price discount offered by company and product warranty. 13. The categories of the people who are using the CTV are mostly economic income people. 14. LG and samsung are competitors of videicon ‘s CTV. 15. Consumers are aware about videocon TV. 18.Customer perception about videocon TV is good. 16. Advertising of videocon CTV is not striking as compaer to the competitorsRECOMMENDATIONS AND SUGGESTIONS • Exhibitions do not help to generate so much sells but they should be conducted regularly. This helps in generating awareness regarding the product in customers, which ultimately helps in sales. • Also it is helps in advertising for the new products. Like in this exhibition new LCD was advertised. Company should always focus on service. RAMAIAH
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  69. 69. • Display share should be increased where there is less than 50% as VIDEOCON also believes that “JO DIKHTA HAI WO BIKTA HAI”. • Company should try to improve service. No doubt the company products have technically edge over competitors but in long run it may hamper the company’s profit. • Company should concentrate more on its major drivers LCD, IT, and GSM. Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers. • Company should also cater to the needs of sub dealers as some of the sub dealers have potential of high sales. CONCLUSIONJaipur market is still a virgin market for these techno-survey Videoconproducts. Customers need to be made aware of the productive usagesof these products if Videocon want to target these untapped marketsegments of customers and rural customers. Also Videocon need tomodify their advertising strategies in order to promote these productsand services. This also a challenge for Videocon, for a positivethinking about Videocon Hence Videocon need to work upon the real factor throughDealer and Retailer for a KAIZEN continuous productivity in theseproducts will make these products more friendly and customized. Hence Videocon will be able to win a major market sharebetween the competitors. RAMAIAH
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  70. 70. ANNEXURERAMAIAH
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  71. 71. DEALERS QUETIONARIESDear Sir/Madam, I, student of RIMS (ramaiah institute of management studies) Bangalore amconducting a survey for the television industry. We request your kind cooperation 1. Name of the Dealer/Retailer……………………………… 2. Address……………………………………………………………… ………………………………………………………………………… ………………………………………. 3. Mention the brand name of the T.V presents in your Showroom? 1 2 3 4 5 4. What are the ranges of price that the company offers? ................................................................................................................................ ............................................................................................ 5.Rank the various brands in order of their selling 1 2 3 4 5 6.Why the rank 1) Product is sold high? a) Less Price [ ] b) Design and style [ ] c) Good brand image [ ] d) Good product features [ ] e) After Sales Services [ ] f) Durability [ ] RAMAIAH
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  72. 72. 7.Why the rank 2) Product is sold high? a) Less Price [ ] b) Design and style [ ] c) Good brand image [ ] d) Good product features [ ] e) After Sales Services [ ] f) Durability [ ]8.Why the rank 3) Product is sold high? a) Less Price [ ] b) Design and style [ ] c) Good brand image [ ] d) Good product features [ ] e) After Sales Services [ ] f) Durability [ ] 9.What more can the company do to increase its sales? ……………………………………………………………………………… ………………………………………………………………………… 10. According to you which company has the best marketing strategy? ……………………………………………………………………………… ………………………………………………………………………… 11.Any Suggestions:……………………………………………… …………………………………………………………………………… …………………………………………………………………………… RAMAIAH
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  73. 73. CONSUMER SURVEY QUESTIONNAIREDear Sir/Madam,I am student of RIMS (ramaiah Institute of Management studies) Bangalore and aspart of our curriculum I am conducting a market research. I would like yourcooperation for the same, with an assurance that all the information, which you’llgive, will remain confidential.Customer’s personal profile:1. Name………………………………………………………………………….2. a) Age ( In years ) : ……………………………………............................ b) Gender (please tick) : Male / Female3. Educational Qualification……………………………………………………..4. Address. ……………………………………………………………………………………………………………………………………………………......…..5. What is your occupation? a) Business b) Govt. Service c) Pvt. Service d) student e) others6. What is your monthly income? a) Below Rs 10000 b) Rs 10000-15,000 b) Rs 15,000-25,000 d) Rs 25,000 -35000 e) Rs 35000+Consumer Survey for various Brands of television:1. Which of the company’s products would you prefer to own? a) Videocon b) LG c) BPL d) ONIDA e) samsung f) Others (please specify) ……………………………………… RAMAIAH
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  74. 74. 2. Why you prefer this company product?……………………………………………………………………………3. What were the factors that persuaded you to come to your chosen brand? a) Company advertisements: b) Talk to friends and colleagues c) Dealer’efforts d) Any other; please specify ………………4.Do you prefer any financing scheme to purchase consumer durables? a) Yes b) NO5. While purchasing consumer durable which parameter influences you?(Please rate the following sources of information) Price. ……………………… Brand Image ……………………… Product feature ……………………… Service. ……………………… Durability ……………………… Design and style .................................6. From where you prefer buying consumer durables?a) Co.shoppee b) Showroom c) on-line d) exihibition7.You prefer to buy from the same as you have mentioned in Q.6 because offollowing reasons? a) Attractive Price b) Service c) Demonstrations d) Offers e) Convenience8. Up to how much money are you willing to spend on a t.v? At this time: a) Less than7000 b) 7000-13000 c) 13000-25000 d) 25000-35000 e) more than 25000 RAMAIAH
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  75. 75. 9. Would you wait for festive season to avail discounts? a) Yes b) No10. Which TV Channels do you watch on a regular basis?……………………………………………………………………………………………………………………………………………………………………………………11. Which Newspaper/Magazines do you read?…………………………………………………………………………………………………………………………………………………………………………………….12. How do you feel after using the videocon t.v? a) Excellent b) good c) fair d) poor13.Any other comments. ……………………………………………………………....………………………………………………………………………………………………………………………………………………….. …………………………… Thank you for participating in the survey RAMAIAH
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  76. 76. REFERENCE:Books • Philip Kotler, Marketing Management, 13 t h Ed, Princeton – Hall India 2009 • Marketing Research – Naresh K. Malhotra • Business research method- S. N. MurthyWebsite: • Http: www.videconworld.com • http: www.google.com • http: www.wikipedia.org • www.in.lge.comMagazines • Business today • Business worldNewspapers • Economic Times • Times of IndiaI AM ASHOK KUMAR A MBA STUDENT PLEASE WRITE MECORRECT FEEDBACK ABOUT MY PROJECT.ID ashokjky@gmail.comask_lucky1987@yahoo.com Thanks…all the best RAMAIAH
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