various things included of videocon industry
1. Sectoral information
2. Company information
3. marketing Startegies
4. Financial statments
5. HR policies
2. Consumer durable sector contribute 14.8% to countries economy
Favorabledemographics;64% ofthe populationinworkingagecategory
India is all set to clinch 5th largest FMCD market
Increaseindisposableincomes;whichdrives consumption
Availability ofnewproductsandtechnologies
IncreasingUrbanization,nuclear families
Easyfinancingschemes
Increaseinorganizedretail
Sector Information
3. COMPANYOVERVIEW
Videocon Industries Limited is a large diversified Indian company headquartered in
Mumbai.
The Videocon group's core areas of business are consumer electronics and home
appliances.
They have recently diversified into areas such as DTH, power, oil exploration and
telecommunication..
The group has 17 manufacturing sites in India and plants in China, Poland, Italy and
Mexico.
4. Product line
Office
Automation
Digital Diaries
Kiddy PC
Data
Projector
Power
Inverter
Digital Mp3
Player
PalmTop
Components
TV, VCR &
Audio
Components
Glass Shells
for Color
Picture Tubes
B&W Picture
Tubes
Monitors for
Computers
Compressors
Other
Electronic
Home
Appliances
Refrigerators
Washing
Machines
Air
Conditioners
Dish Wahers
Microwave
Owens
Mixers &
Grinders
Water
Purifiers
Consumer
Electronics
CTVs
B&W TVs
VCRs
Audio
Systems
Color
Monitors
6. SWOT analysis
STRENGTH
Fair brand awareness among the Indian customers
Wide distribution network available by owning retail
stores namely Digi-world (selling its own products) and
NeXT stores.
Acquisition of Thomson’s plants gave it access to its
technology for TVs
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
WEAKNESSES
Videocon’s once strong hold i.e., CTV have lost the
sheen
Dip in the net profits and sales over the years
Lower share in tier 1 cities and premium products
OPPORTUNITIES
Growing consumer appliances market in tier -2,3 cities.
Huge potential to expand owing to low market
penetration in India
THREATS
Increased competition from foreign players
Decreasing brand image
Rapidly changing technology and new features being
added by foreign players
7. Marketing Mix
1. Product:
This element includes quality, benefits, customer service, warranty, features that the
customer will derive from the product:
• Saves upto 50% energy compared to LCD television
• Good picture quality along with good sound quality.
• Videocon is well known for its customer service.
• The brand has also got the title “Name of Trust”.
• Durable product that is used almost daily basis in households, offices, news channels,
etc.
• This product comes with a domestic warranty period of 1 year
8. Marketing Mix
2. Price:
This element includes listed prices, discounts, payment modes, offers, etc.
There are different listed and offered prices depending upon the model. Models such
as:
Model Listed Price Offered Price
Videocon 24 inch HD Ready TV Rs 14,270 Rs 11,590
Videocon 32 inch HD Ready TV Rs 25,177 Rs 17,490
Videocon 40 inch HD Ready TV Rs 42,990 Rs 32,800
Videocon 55 inch HD Ready TV Rs 72,900 Rs 48,465
• There are different discounts offered depending on the retailers and online shopping
sites.
• LED television can also be purchased on credit with the use of credit cards, Bajaj
Finance Co., etc.
• Payment modes could be in cash or credit transaction, COD (Cash on Delivery), Online
Payment, etc.
9. Marketing Mix
3. Place:
This element includes distribution channels, channel partners, sales support, etc.
• Provides service centers in different corners of the India.
• Producers, wholesalers and retailer perform jointly in marketing.
• Supports sale’s person by providing add-ons to the product and also displaying
through hoardings.
• This product is mainly targeted to Middle Income-level or High Income-level
people.
• LED television has become a trend in the market for watching purpose, showcasing
status, enabling mini home theatre, etc. For this reasons, it is targeted to mainly
Urban (Tier-1&2) and Semi-Urban Cities.
10. Marketing Mix
4. Promotion:
This element makes a major role in creating needs among customers. Leading to the
needs, customer demands for product is created. So promotion includes various modes
through which television can be promoted:
Visual Promotion:
• Television ads.
• Internet Commercialized ads
• Covert Marketing
Media Promotion:
• Pamphlets
• Ads on newspapers
Branding: This product is promoted by one of the renowned celebrity,
Mr. Abhishek Bachchan
11. STPSEGMENTATION
• Income
• Lifestyle
• Family size
TARGETING
• Homemakers
• Office going
people both
male and
female
• People
having
shortage of
time
POSITIONING
• Reliable
• Value for
money
• Quality
12. Business Finance
Items Amounts (in Rs) Change in
Direct CostsYear 2016-17 Year 2015-16
Costs of Material Consumed 4,428.47 4,073.30 8.72%
Purchase of Stock-in-trade 4,305.53 3,991.93 7.86%
Changes in inventories of FG, WIP &
Stock-in-trade
21.17 20.90 1.29%
Total 8,755.17 8,086.13 8.29%
Direct costs
Items Amounts (in Rs) Change in
Indirect CostsYear 2016-17 Year 2015-16
Employee Benefit Expenses 375.51 283.43 32.49%
Finance Cost 3,097.73 2,368.46 30.79%
Depreciation and Amortization Expenses 731.52 701.71 4.25%
Other Expenses 2,121.65 1,883.51 12.64%
Total 6,326.41 5,237.11 20.80%
Indirect costs
13. Assets Amounts (in Rs) % Change
Year 2016-17 Year 2015-16
Tangible Assets 4,972.64 5,515.27 (9.84)
Intangible Assets 21.27 30.15 (29.45)
Capital Work-in-Progress 490.38 714.36 (31.35)
Intangible Fixed Assets under Development - - -
Total Fixed Assets 5,484.29 6,259.78 (12.39)
Fixed Assets added during the year
Year Current Asset
(in Rs)
Current Liabilities
(in Rs)
Working Capital (in Rs) Changes in W.C
2017 16,369.31 9,616.04 6,753.27
(35.98)%
2016 18,608.80 8,060.82 10,547.98
Working Capital = Current Assets – Current Liabilities
Working Capital for the year