A project from Marketing, Finance & HR perspective

1. ANALYSIS OF VIDEOCON
WASHING MACHINE
SUBMITTED BY
AHANA PAL

2. VISION
To bring happiness in every home with
global presence offering high quality “e”-
products to ease and enrich human life.
MISSION
To delight & deliver innovative product through
ingenious strategy intrepid entrepreneurship,
improved technology, insightful marketing
and inspired thinking about the future.
GOAL
To provide a much higher level of
service to all those who seek
information.

3. SECTOR INFORMATION
SECTOR MANUFACTURE
Year
2011-
2012
2012-
2013
2013-
2014
2014-
2015
2015-
2016
2016-
2017
% Share
GVA (Rs.
in Crore)
1409986 1572830 1713445 1883929 2065093 2278149 0.1657
3.5 3.8 4.2 4.7 5.2
6.3
7.3 7.3 7.4
9.7
12.5
20.6
FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2014 FY2015 FY2016 FY2020F
FY F=Forcast
CAGR 13%
Revenue Linear (Revenue)
Historical Growth
Pattern of
Consumer Durable
Market
CONTRIBUTION TO THE GDP OF THE COUNTRY
Videocon’s contribution
to the Country
SOURCE:WWW.IBEF.ORG

4. Threat of new entrants
Threat of Substitute
Switching cost
Capital required
Government policy
Threat of Substitute
Switching cost
Capital required
Access to distribution
Cost advantages
Government policy
Product differentiation
Bargaining Power of
Suppliers
Differentiation of inputs
Presence of substitute inputs
Cost relative to total purchase in industry
Switching costs of suppliers and firms in the
industry
Bargaining Power of Buyers
Brand identity
Product’s value with the product’s price
Buyer profile
Buyer volume
Substitute products available in the market
Industry Rivalry
Industry growth
Product differences
Brand identity
PORTER’S FIVE MODEL

5. COMPANY INFORMATION
VIDEOCON STORY SO FAR…
PRODUCT/SERVICES PROFIT & TARGET MARKET-PRODUCT/SERVICES
OFFERED BY THE COMPANY
STP
Segment Refrigerators, washing machines, mobile phones
Target Group Middle and upper class individuals
Positioning Premium positioning with advanced features
1985
COLOUR
TV
1987
WASHING
MACHINE
1989/1990
HOME
ENTERTAIN
MENT
SYSTEMS,
ELECTRIC
MOTORS, AC
1991
REFRIGERA
TORS
&
COOLERS
1995
GLASS
SHELLS
FOR CRT
1996
KITCHEN
APPLIANCE
S
&
CRUDE OIL
1998
COMPRESS
ORS
&
COMPRESS
OR
MOTORS
2000
PHILLIPS
COLOR TV
PLANT
TAKE
OVER
2005
THOMAS
ACQUISITI
ON
2005
ELECTROL
UX
INDIA 3
PLANTS
TAKE
OVER
22008
MERGING
OF
GROUP
BRANDS
2009
TELECOM
VENTURE
&
D2H

6. • Fair brand awareness among the Indian customers.
• Wide distribution network available by owning retail stores namely Digiworld (selling its own products)
and NeXT stores.
• Runs wide brand portfolio under KenStar, Electrolux, Kelvinator, Sansui, Videocon brands.
• The parent company operations include Videocon Telecom, Videocon d2h, Videocon Consumer
Electronics, Home Appliances.
• There are over 9000 people with the company.
STRENGTH
• Videocon’s one strong hold have lost the sheen.
• Dip in the net profits and sales over the years.
• Lower share in tier 1 cities and premium products.
WEAKNESS
•Growing consumer appliances market in tier -2,3 cities.
•Huge potential to expand owing to low market penetration in India.
OPPORTUNITIES
• Increased competition from foreign players.
• Decreasing brand image.
• Rapidly changing technology and new features being added by foreign players.
THREATS
SWOT ANALYSIS
COMPETITION
COMPETITORS
1. Samsung
2. LG Electronics
3. Whirlpool

7. MARKETING
INDIAN WASHING MACHINE MARKET BRAND-WISE
35%
19%
13%
12%
8%
6%
7%
SALES (UNITS)
LG
SAMSUNG
WHIRLPOOL
VIDEOCON
GROUP
GODREJ
SWOT ANALYSIS OF VIDEOCON WASHING MACHINE
SWOT
STRENGTH  Large experience executive team
 Big brand name
 Best trade position with established network both in urban and rural areas.
 Renowned and well-known company
WEAKNESS  Reducing market share
 Reducing profit
 Lack of strategy
OPPORTUNITIES  To arrange capital
 Providing attractive schemes
 Regain leadership
 AC is larger and fast going category
 Growing Asian market
THREATS  LG, Samsung and other companies are most competitors.
BRAND
SALES
(UNITS)
LG 2100000
SAMSUNG 1140000
WHIRLPOOL 780000
VIDEOCON GROUP 720000
GODREJ 480000
IFB 360000
OTHERS 420000
Total 6000000 units
2016-17
SOURCE:WWW. IBEF.ORG

8. 42%
58%
SALES(UNITS)
FULLY
AUTOMATIC
SEMI-
AUTOMATIC
61%
39%
SALES(Rs. Cr.)
FULLY
AUTOMATIC
SEMI-
AUTOMATIC
INDIAN WASHING MACHINE
MARKET
UNIT-WISE
TOTAL 6000000 UNITS
2016-17
SEGMENT SALES(UNITS)
FULLY
AUTOMATIC 2500000
SEMI-AUTOMATIC 3500000
INDIAN WASHING MACHINE MARKET
VALUE-WISE
TOTAL Rs. 7762.5 CRORE
2016-17
SEGMENT SALES(Rs. Cr.)
FULLY
AUTOMATIC 4762.5
SEMI-AUTOMATIC 3000
STP OF VIDEOCON WASHING MACHINE
Segment Target Market
DEMOGRAPHIC
• Women, aged 35 and above
• House wives and working women with kids
• Middle income groups
GEOGRAPHIC
• Tier 1 and tier 2 cities
• Sub-Urban area, Rural market
PSYCHOGRAPHIC • Targeting people who lives a very busy life schedule
BEHAVIORAL
• Targeting quality driven customers who are ready to pay a
premium
• Targeting loyal customers who gives value to the brand
image of the company.
SOURCE:WWW.IBEF.ORG

9. VIDEOCON has reached not only its Maturity stage but also Decline
stage in case of Washing Machine. After that, they again have come
back and now are trying to survive and rise again in the market of
consumer durables. For that:
• They have done the product’s new packaging.
• They have spent on advertising also.
• They have come with better Washing Machine models with lots
and lots of new features etc.
These are the possible things which Videocon can do for staying in
maturity stage.
Extension strategies
Again businesses use marketing techniques to improve sales.
Examples of the techniques are:
• Advertising
• Price reduction
• Adding value
• Explore new markets
• New packaging
Some of them are achieved and some needs to be achieved.

10. FINANCE
GROSS PROFIT AND NET PROFIT MARGIN OF THE COMPANY
DIRECT AND INDIRECT COSTS OF THE COMPANY – CHANGE IN
COMPARISON TO PREVIOUS YEAR
25%
33% 35% 35% 37%
DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Gross Profit Margin
-1%
NET PROFIT
MARGIN
0% -1% 4% 6%
YEAR DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Net Profit Margin
7,707.97
8,369.56
8,197.82
7,858.20
8,117.79
DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Direct Costs
4417.29
4948.78 5188.81
4271.97 4362.43
DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Indirect costs
SOURCE : WWW.MONEYCONTROL.COM

11. FIXED ASSETS ADDED DURING THE YEAR
6259.78
6661.92 6595.78
6301.57
6003.11
DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Fixed assets
WORKING CAPITAL FOR THE YEAR
12230.88
8209.79
5499.93
1914.98
7649.98
DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Working Capital
56.19820628 54.47803 51.1054
61.57096
38.99901
DEC '16 DEC '15 JUN '14 DEC '12 DEC '11
Debt/Equity ratio
DEBT/EQUITY RATIO

12. HUMAN RESOURCE MANAGEMENT
ORGANIZATION
STRUCTURE
Chairman
CEO
G.M.
V.P. R&D V.P. Finance V.P. Marketing
AD Manager
M.R. Manager
M.R. Executive
(A.C.)
M.R. Executive
(TV)
M.R. Executive
(Washing
Machine)
M.R. Executive
(Fridge)
Sales Manager
V.P. HR V.P. Operation

13. MARKETING
HEAD
BUSINESS
EXECUTIVE
MANAGEMENT
TRAINEE
TEAM LEADER
MARKETING DEPARTMENT
FINANCE DEPARTMENT
MANAGER
ASSISTANT
ACCOUNTS
ASSISTANT
CLERK
FUNCTIONAL DEPARTMENTS
STORE
MANAGER
STORE
INCHARGE
STORE ASSISTANT
HELPERS

14. SELECTION PROCESS PERFORMANCE APPRAISAL MODEL OF THE COMPANY
Evaluating an employee’s current and/or post performance
relative to his or her performance standards.
Methods of performance appraisal:
1. MBO
2. 360-degree appraisal
SELFSUPERVISO
R/BOSS
INTERNAL
CUSTOMER
EXTERNAL
CUSTOMER
SUBORDINA
TE/ DIRECT
REPORTS
SUPPLIERS
SKIP LEVEL
REPORTS
PEERS/ CO-
WORKERS
OTHER
BOSS
Final Selection, Placement, Induction
and Pre-joining Activities
Medical Check
Reference Check
Interview
Written Test
Application
Recruitment
MBO
process
cycle
Set
corporate
objectives
Set and
align
employee
objectives
Monitor
Performa
nce
Evaluate
Performa
nce
Reward
Employee