18245513 videocon-television-project-report

INTRODUCITON:
Every business organization that comes into contact with the customer
develops a perception in the mind of the customer. Today, in this
competitive world every organization needs to know the perception in
the mind of the customers. In order to gain mind share or heart share
of customers along with the market share is the main lookout for the
organizations. Especially in consumer electronics sector, where the
products are more or less same, the only way to leave positive impact
on customer’s mind and to gain competitive advantage is providing
best 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 INSTITUTE OF MANAGEMENT STUDIES  1

CHAPTER-1
STUDY
OF
THE INDUSTRY


INDUSTRY SCENARIO
Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa
came into the picture. Today, these players control the major share of the consumer
durables market.

Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing
very fast because of rise in living standards, easy access to consumer finance, and
wide 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. These
products 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, color
televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.
2. White Goods include dishwashers, air conditioners, water heaters, washing
machines, 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 Watches
5. Mobile Phones


ABOUT CONSUMER ELECTRONICS INDUSTRY
1.History of consuemr Electronics in India
The Electronics Industry in India took off around 1965 with an
orientation towards space and defense technologies. This was rigidly
controlled and initiated by the government. This was followed by
developments in consumer electronics mainly with transistor radios,
Black & White TV, Calculators and other audio products. Colour
Televisions soon followed. In 1982-a significant year in the history of
television in India – the government allowed thousand of Colour TV
sets to be imported into the country to coincide with the broadcast of
Asian Games in New Delhi. 1985 saw the advent of Computers and
Telephone Exchanges, which were succeeded by Digital Exchanges in
1988. The period between 1984 and 1990 was the golden period for
electronics during while the industry witnessed continuous and rapid
growth.

From 1991 onwards, there was first an economic crises triggered
by the Gulf War, which was followed by political and economic
uncertainties within the country. Pressure on the electronics industry
remained though growth and developments have continued with
digitalization in all sectors and more recently the trend towards
convergence 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 the
potential to reach $ 40 billion by 2010. The largest segment is the
consumer electronics segment. While is largest export segment is the
consumer electronics segment. While is largest export segment is of
components.


The breakup of production in various segments the industry is shown
be 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.


2. CURRENT SCENARIO

The consumer durables market in India is valued at US $ 4.5 billions currently. In
2008, microwave ovens and air conditioners registered a growth of about 25%. Frost-
free refrigerators have registered significant growth as many urban families are
replacing their old refrigerators. . Washing machines, which have always seen poor
growth, have seen reasonable growth in 2006. More and more Indians are now
buying electrical appliances due to change in electricity scenario. The penetration
level 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 in
country's consumer electronics industry. In last few years the industry has been
witnessing significant changes in retail boom, growing disposable income and
availability of easy finance schemes. One electronic gadget that has brought new
revolution in Indian Electronic Industry is Television Set. Today, India is fast
emerging as the key driver in the global television market both as a manufacturer and
consumer. In recent years, the market for televisions in India has changed rapidly
from the conventional CRT technology to Flat Panel Display Televisions (FPTV).

Currently, the split between CRT and FPTV is around 97% and 3% respectively. In
addition to this, one of the most striking changes sweeping across the colour
television market in Indian market is the exponential growth of the flat panel
television (FPTV) market, in common parlance called the liquid crystal display
(LCD) and plasma televisions. Moreover, as per recent research data available, the
global market for FPTV is expected to grow from 51 million units in 2006 to 127
million by 2009.


Looking at the present scenario, over the last couple of years, the LCD prices have
even dropped by around 30 per cent annually. Some of the important factors that
boasted this growth also include the increasing awareness of the advantages of LCD
televisions, the growing availability of the product across dealer counters and the
Finance schemes in the market. Besides this, as a manufacturing hub, the television
industry is improving more and more. There are many domestic and MNC companies
that 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 of
the 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-developed
regions now.

Today, India is one of the few emerging countries to have an excellent component
supply base in terms of manufacturing facilities for glass and color picture tubes, so it
helps it a good choice for all those companies who are looking to take benefit of this
emerging market.

In present scenario top player for colour television are
• LG
• VIDEOCON
• SAMSUNG
• SONY
• ONIDA
• PHILLIPS
• SANSUI
• BPL


3. INDUSTRY ANALYSIS- 5 FORCES MODEL

Michael Porter’s Five Forces Model provides a robust and time-tested framework for
analysing any industry, reflected in the strength of the five forces (industry
competitors, potential entrants, threat of substitutes, power of buyers and power of
suppliers). The collective strength of the five forces determines the ultimate profit
potential in an industry,
Where profit is measured in terms of long-term returns on capital invested. The
elements of each of the above forces and the extent and /or effect of each element in
the 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 where
power lies in a business situation. This is useful, because it helps you understand both
the strength of your current competitive position, and the strength of a position you’re
looking to move into. With a clear understanding of where power lies, you can take
fair advantage of a situation of strength, improve a situation of weakness, and avoid
taking wrong steps. This makes it an important part of your planning toolkit.
Conventionally, the tool is used to identify whether new products, services or
businesses have the potential to be profitable. However it can be very illuminating
when used to understand the balance of power in other situations.


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)


3.1 Degree of Rivalry
Degree of rivalry denotes the intensity of competition within the industry. Videocon,
LG, samsung, Sony, Onida, are the big competitors in television industry. Although
Videocon, another major player has managed to hold its own in the midst of the
onslaught from the Korean majors, though profits have suffered. Other large Indian
companies in the top of the list are Mirc Electronics. While Mirc Electronics is
managing to hold its share by adopting value for money strategy, BPL is facing tough
time, 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 is
based on numbers game and companies will have to maintain a fine balance between
catering to lifestyle requirements and meeting the needs of average consumer.

3.1.1 Competitor Analysis
A detailed analysis of some of the major players is done below:
LG ELECTRONICS
LG Electronics rightly understood the consumer motivations to create magnetic
products, price them strategically, position them sharply and keep making the
magnetism more potent. Having understood the finer differences in consumer
motivations, it opted for sharp- arrow ‘reasons-to-buy’ differentiation over the
‘blanket-all approach’ taken by most of the other players. It is an aggressive
marketer. It focuses on low and medium price products.

SAMSUNG
Initially the strategy of Samsung in India was to create premium image by
emphasising global brand. After facing stiff competition from another Korean major-
LG, Samsung also started playing price game. In 2004 it reverted back to its premium
positioning, although it resulted in some loss of market share. In line with the Global
Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital
leadership in India by introducing its digital ready televisions like the 40" LCD
Projection TV, 43" Projection TV and the Plano series of Flat Colour televisions.


ONIDA
Its popular devil ad although had engendered a strong emotional pull towards the
brand, technologically it represented no advancement. The company plugged the gap
by touting its digital technology. Like Videocon, it has also been able to hold its
market share. The world-class quality of Onida has enabled the company to make a
breakthrough on the export front. It has technical tie- up with the Japan Victor
Company, better known as JVC. So focused is Onida on positioning itself on the
premium, high- tech plank that it is even planning to push its own envelope on
obsolescence, much. The strategy is aimed at further broad basing the product
offering of the company, which has largely dominated the top-end of the television
market, across multiple market segments.

VIDEOCON
Videocon has always been a price player and has an image of a low price brand. This
entails providing more features at a given price vis-à-vis competitors. It has taken
over multinational brands to cater to unserved segments, like Sansui- to flank the
flagship brand Videocon in the low to mid priced segment, essentially to fight against
brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like
Aiwa.
Videocon is one of the largest manufacturers of television and its components in
India and thus has advantages of economies of scale and low cost due to
indigenisation. It has the widest distribution network in India with more than 5000
dealers in the major cities. It also has a strong base in the semi-urban and rural
markets. Due to its multi-brand strategy, it has at present multiple brands at the same
price point. This has led to a state of diffused positioning for its brands. It has also led
to a cannibalisation of sales among these brands. The flagship brand Videocon has
lost market share due to the presence of Sansui in the same segment. Because of
reduction in import duties on CPT the cost advantage of Videocon is also on the
decline. Hence it is facing rough weather and also trying to boost exports.


Besides understanding the strategy adopted by different players, several other factors-
industry growth, concentration and balance, corporate stakes, fixed cost, and product
differences need to be analysed to determine the extent of rivalry between the
existing Players.

3.2 The threat of potential new entrants (low)
High capital required entering into television industry, which needed large investment
on technology, distribution, service outlets and plant. Difficulty for customers in
switching cost, when they are satisfied with their current product as well as difficultly
for new entrants to have product differentiation because customers had already
familiar with those established consumer electronics companies, therefore new
entrants have to spend a lot on branding and customer knowledge. It is difficult to
obtain a license; successful applicant has to undergo through a form of competitive
evaluation, such as a comparative evaluation process.
Threat of entry is determined by the entry barriers, which act to prevent new firms
from entering the industry. A lower entry barrier makes it difficult for the existing
producers to remain profitable for long. When profits increase, additional firms will
enter the market to take advantage of the high profit levels and over time drive down
profits of all firms in the industry. When profits decrease, some firms will exit the
market, thus restoring the market equilibrium. Barriers to entry arise from several
sources:
3.2.1 Access to Distribution Channels

A strong distribution network is absolutely essential to compete in this industry. Not
only does it guarantee a country wide reach for a company’s products but is also
necessary for providing good after sales service.
Videocon has implemented ERP system, which helps in integrating the
manufacturing, marketing, procurement and distribution services with the corporate
office


LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and
above.
Samsung also has a widespread service network, which includes 123 exclusive
service centres and 200 distributors in any town with more than 1 lakh population.
All BPL dealers are linked via VSAT nodes, ensuring online availability of
information 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 further
gain recommendation to retailers from the dealers.

3.2.2 Brand Salience
With little product differentiation and parity products, it is imperative that distinct
images 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 cost
of sponsoring international events across a larger footprint straddling multiple
countries.

3.2.3 Capital Investment and Economies of Scale
Television industry is capital intensive and players have made huge investments
in putting up state of the art manufacturing facilities. Videocon has seven
manufacturing site in India Sony India had a production capacity of 300,000 CTV
sets with capacity utilisation of 66%. Samsung is investing $4 mn to expand its CTV
manufacturing capacity at Noida to 800,000 units per year. The existing capacity of
the plant is around 600,000 units. Other players like Mirc Electronics, LG have also
set up manufacturing facilities in India. The market players need sales volume to
achieve economies of scale, which is difficult because of large number of
competitors. Apart from investments in manufacturing the industry requires huge
working capital to manage inventories.


Supply chain mgmt. and inventory management thus becoming crucial toDetermining
profitability. With regard to sourcing funds, MNCs are better placed Than their
Indian counterparts as they manage to get funds from their parent Companies at low
rates 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 few
substitutes from other industry if any. Most of them seem to be obsolete or have one
foot out of door. Internet though emerging as an infotainment medium is very low in
penetration. Moreover the industry has responded to the future threat by introducing a
TV that can provide functions of the Internet along with regular features, e.g., BPL
digital 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 influenced
by various factors as follows:
3.4.1 Buyer Concentration
The industry is akin to consumer durables whose end users are fragmented. Hence
buyers do not have any specific influence on producers.
3.4.2 Buyer Switching Cost
The cost incurred by consumer in switching from one television brand to another is
practically zero. Brand loyalty is low. Hence the companies cannot rest on their
laurels and have to be on their tenterhooks to retain the customers.
3.4.3 Price Sensitivity
Market is highly price conscious and promotion driven. With the onslaught of
VIDEOCON’s major price cuts and promotional schemes, this market has now become
a promotion driven one. To successfully compete in this industry, even premium
players like Sony, LG have had to come up with schemes. LG and Philips have


Been the most aggressive amongst industry leaders as far as pricing is
Concerned and hence their realisation shave been lower than industry average.
Industry leaders like LG focus on low- medium priced CTV, while Samsung has
Moved gradually towards higher priced CTVs. The domestic high-end
CTV prices will follow the global price trend of declining prices. However, the
Prices of domestic products would be higher than those of global products due
To negligible demand in the domestic market and hence most likely to be met
Through imports. market is highly price sensitive as the
Demand 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 global
supply chain management.there is direct negotation with supplier in order to encourge
reliable supply, faster delivery and lower price. Bargaining power influences the cost
and quality of input material. Higher supplier power raises the input cost, thereby
reducing the industry profitability. The most critical component in manufacturing
television 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 still
need to import colour picture tubes.
The other important components include electronic circuit boards, tuners, high-
tension transformers and moulded plastic casings. The demand
For colour picture tubes (CPT) has been rising steadily. But at the same time owing
To customs and import liberalisation, they had to face competition from imports
During1993-1997. A sharp reduction in import duty from 85% to 40% between
1994-96 and further down to 20% by 2004 was announced to gear the manufacturers
of picture tubes to face competition from foreign players. As a result of spurt in
Demand in 1990s, the CPT manufacturers expanded capacities, which resulted in
Excess capacity in the domestic market. Samtel Colour, LG Hotline and JCT
Electronics are the major domestic CPT manufacturers The picture tube industry is
both technology and capital-intensive industry.


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 CPT
industry is solely dependent on CTV players, mainly domestic and partly exports.
Hence larger players like LG, Samsung and Mirc etc. are able to negotiate better
deals unlike other players.

3.6. CONCLUSION
The variables affecting the industry with regard to each of the five forces have been
Categorized as favourable or adverse. Favourable variables have the potential to
improve profitability, while adverse variables reduce profitability of the industry.
Some strategic initiatives, which could be adopted to leverage the favourable forces
And 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 a
role in cost innovation, which can cut component cost and raise performance. The
number of defectives has to be reduced at negligible levels. The quest should be to do
even 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 have
necessitated separate dealers, many of them specialists. For sharper focus on all
categories individually, the market has to be opened wider.

• Brand building will be important, so as to ensure brand preference. Marketers will
have to strategise to pull the consumer up the value escalator. A good fraction of sales
if come from high margin products as flat TVs and projection TVs would improve
profitability of companies. Sharply differentiated products with effective
communication on a continuous basis would be the key for future. Challenge lies in
creating higher order universal benefits and sensitising the larger audiences to it.


LG and Samsung are likely to retain top positions.

• Buyers are easily swayed by costs, which are also verified by the presence of large
number of product offerings. Focus would be on providing value for money to the
consumer, with more brands in the economy segment. The challenge before
marketers is to span out, and address a wider set of needs. They will have to identify
segments not addressed by them so far and also introduce low price-point products
aimed at rural markets.
• Besides catering to the cost conscious segment, marketers need to segment the
market on the basis of psychographics, which will help in inducing brand loyalty
through lifestyle and experiential marketing.

• The increase in disposable incomes, more number of households above the
threshold income, declining prices, shortened replacement cycle and the demand for
multiple TV, all these factors are expected to sustain the growth momentum at 10-12
per cent during 2008-09 to 2010-11.


CHAPTER-2
STUDY
OF
THE COMPANY


COMPANY PROFILE
Brief Profile
The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to
set trends in every sphere of its activities from a conference room sized assembly line
in 1979.

Today the group operates through 4 key sectors:

1. Consumer durable
2. Thomson CPT
3. CRT glass
4. Oil and gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India

We enjoy a pre-eminent position in terms of sales and customer satisfaction in many
of our consumer products like Colour Televisions, Washing Machines, Air
Conditioners, Refrigerators, Microwave ovens and many other home appliances,
selling them through a Multi-Brand strategy with the largest sales and service
network in India. Our compressor manufacturing technology in Bangalore further
supports refrigerator manufacturing.

Display industry and its components
With the Thomson acquisition Videocon has emerged as one of the largest Colour
Picture tube manufacturers in the world operating in Mexico, Italy, Poland and China,
continuing to lead through new innovative technologies like slim CPT, extra slim
CPT and High Definition 16:9 format CPT.


Colour Picture Tube Glass
Videocon is one of the largest CPT Glass manufacturers in the world with a high
level of experience and technical expertise operating through Poland and India.
Videocon will leverage on this synergy after the Thomson acquisition to internally
source glass for its CPT manufacturing increasing efficiencies and lowering costs.

Oil and Gas
An important asset for the group is its Ravva oil field with one of the lowest
operating costs in the world producing 50,000 barrels of oil per day. The group has
ambitious plans for expansion in this


BRAND-BASKET

Partner Product Nature Of Tie-Up

Samsung Electronics Fly Back, Tuners Technical Support
Transformers
Matsushita Electric Washing Machine Technical * Collaboration

Matsushita Electric Air Conditioner Design & Drawing

Matsushita Electric Refrigerator Design & Drawing

Sansui 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 TV

Hyundai Colour TV ODM for Indian Market

Electrolux AB Sweden Refrigerator, 1.ODM & Indian Market
Air Conditioner and 2.Sourcing of components for
Washing Machine Global Market
3.ODM for Global market

 


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 


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


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


Vision & Mission

Videocon’s mission: a reflection of continuity and change

Videocon’s mission expression has been crafted to envelope both extant and
emerging realities:
“To delight and deliver beyond expectation through ingenious strategy, intrepid
entrepreneurship, improved technology, innovative products, insightful marketing
and inspired thinking about the future.”

A breakdown of the statement above reveals a ‘means and end’ approach, where the
end is articulated at the beginning with the means linked to it.

“To delight and deliver beyond expectation…”: the end
This segment not only underlines the importance of the ultimate goal - customer
satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate
processes and principals, which have contributed to building a robust, dependable
Videocon value chain (‘deliver’). As a result of its focus on developing loyal
customers and reliable associates, Videocon is able to exceed expectations.

“…Through ingenious strategy…”: the means
In the cutthroat world of today, it is only by taking recourse to advance planning and
strategy 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 absence
of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity
and improvisation that is flexible enough for scenarios both imaginable and
unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that
abstracts from shifting ground conditions and decides game plans, or sometimes
changes the rules of the game.


“…Intrepid entrepreneurship…”: the means
An enterprise with the odds stacked against it makes great business sense. This is
because higher the obstacles, lower the number of players likely to be active in that
field - thus, fetching extraordinary returns. The only requirement is a bold and
confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a
bold and intrepid endeavour that arises from immense faith on the surefooted
competence of the company’s in-house managerial talent.

“…Improved technology…” the means
Technology is no more a premium input; it has become the bare minimum in recent
years. Rapid advances have only fuelled this phenomenon. Videocon is extremely
vigilant in shunting out dated technology and replacing it with the best-in-class offers
of the times.

“…Innovative products…” the means
Product development, innovation and customisation are the tools Videocon uses to
stay ahead of the competition. This is because a continuous stream of innovative
products excites the market and enhances brand recall. A strategy that Videocon
banks on a lot, especially on the domestic front

“…Insightful marketing…” the means
The market share battle scene has long shifted from technology and processes to the
psyche of the customer. This means that those with deeper insights into the elusive
mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths
to read better the pulse of the market and help create products that map perfectly into
customer preferences.

“…Inspired thinking about the future.” the means

The future is unpredictable, but not doing anything about it is fraught with
grave risk. Videocon extrapolates future trends on the basis of current changes in
technology and preferences as well as sheer gut feel.


Corporate Governance
Company's Philosophy on Code of Governance:

The company's philosophy on corporate governance enshrines the goal of achieving
the highest levels of transparency, accountability and equity in all spheres of its
operations and in all its dealing with the shareholders, employees, the government
and other parties. The company believes in the philosophy on code of corporate
governance, which provides a structure by which the rights and responsibility of
different constituents, such as the board, employees and shareholders are carved out.
In carrying out this, it is ensured that the company's objectives are well defined and
performance against those objectives are adequately measured and monitored.

Corporate governance is considered as an important tool for shareholders rotection
and maximization of their long -term values. The cardinal principal such as
accountability, responsibility, transparency and fair disclosure serve as the means for
achieving this.
R&D
The 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 product
development, cost reduction, quality improvement, process implementations, process
controls.
1) Specific areas in which R & D is carried out by the company
During the year, the company has carried out Research and Development in the
following areas.

Home theaters -High-end models and HTIB Models.
Larger Screen Television i.e.32 Inch and 38inch.
True Flat Televisions
Plasma Televisions
Cosmetic design and new out look to the TVs
Manufacturing of components for CTV, Refrigerators and Air conditioners.


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 and
Development:

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 and
offering innovation features and to maintain market leadership in Television under
Videocon umbrella.
Increase in productivity.
Reduction in power consumption of some of the products.
3) Future Plans of action

In the coming days company is aiming to achieve development in the following areas
through 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 in
production process. Keeping pace with the technological developments, the company
keeps on adding sophisticated equipments with focus on automation to minimize
manual intervention in the manufacturing process thereby ensuring quality of the
final products.


Future Plans
To strengthen and maintain & its leadership status, the Videocon group has clearly
charted 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 rationalizing
factories in Europe, increasing automation and improvement of efficiency in China,
accessing flass shells from India for international CPT facilities and a lot more - are
in various stages of implementation.
Internationally all existing client relationships are being strengthened. The cost
competitiveness and increase in capacity in Mexico and Polland has opened up big
opportunities in the OEM business.
Last but not the least, in the domestic market consolidation with multiple brands
paves the way for an unassailable lead in the market.
In the Oil & Gas business, having all the basic operator capabilities of a prospecting
entity, the group is looking to add more explorations and production depth as also oil
bearing 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)


ORGANIZATION STRUCTURE CHART:


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.


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.


MARKETING

DEPARTMENT

Functions:

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.


PRODUCTION DEPARTMENT

Functions:

Production and planning

Purchasing

Stores

Design and technical supports

Works

Production cycle:


AUDIT REPORT

We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES
LIMITED, as at 31st march 2009, Profit and Loss Account and also
The Cash Flow Statement of the Company for the year ended on that date
Annexed thereto. These financial statements are the responsibility of
The Company management. Our responsibility is to express an opinion
On these financial statements based on our audit

We conducted our audit in accordance with auditing standards
Generally accepted in India. Those Standards require that we plan and
Perform the audit to obtain reasonable assurance about whether the
Financial statements are free of material misstatement. An audit
Includes examining, on a test basis, evidence supporting the amounts
And disclosures in financial statements. An audit also includes
Assessing the accounting principles used and significant estimates made
By management, as well as evaluating the overall financial statement
Presentation. We believe that our audit provides a reasonable basis for
Our opinion.

ANNEXURE REFERRED TO THE AUDITORS REPORT

Statement referred of the Auditors Report of even date to the Members of
VIDEOCON INDUSTRIES LIMITED on the financial statements for the
Year ended 31st march 2009.

(i) (a) The Company has maintained proper records showing full
Particulars including quantitative details and situation of fixed
Assets.
(b) As per the information and explanations given to us, physical


Verification of fixed assets, other than those under joint venture, has
Been carried out at reasonable intervals in terms of the phased
Programme of verification adopted by the Company and no material
Discrepancies were noticed on such verification. In our opinion, the
Frequency of verification is reasonable, having regard to the size of
The Company and nature of its business.

(ii) (a) As per the information and explanations given to us, the
Inventories (excluding stock of crude oil lying at extraction site with
the Operator) have been physically verified during the year by the
Management. In our opinion, having regard to the nature and location of
Stocks, the frequency of the physical verification is reasonable.

(b) Procedures of physical verification of inventory followed
By the management are reasonable and adequate in relation to the size
Have the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. As per the
Information and explanations given to us, the discrepancies noticed on
Physical verification of stocks were not material in relation to the
Operations of the Company and the same have been properly dealt with in
The books of account.
(iii) As per the information and explanations given to us, the
Company has not granted or taken any loans, secured or unsecured,
To/from Companies, firms or other parties covered in the register
Maintained under Section 301 of the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations
Given to us, there are adequate internal control systems commensurate
With the size of the Company and the nature of its business with regard
To purchases of inventory and fixed assets and for the sales of goods


And services. During the course of our audit, we have not observed any
Continuing failure to correct the major weakness in the internal
Controls systems.

(v) (a). Based on the audit procedures applied by us and according to
The information and explanations provided by the management, we are of
The opinion that the particulars of contracts or arrangements referred
To in Section 301 of the Companies Act, 1956 have been entered in the
Register required to be maintained under that section.

(b) In our opinion and according to the information and explanations
Given to us, the transactions made in pursuance of contracts or
Arrangements entered in the register maintained under Section 301 of
The Companies Act, 1956 and exceeding the value of Rupees Five lakh, in
Respect of any party during the year, have been made at prices which
Are reasonable having regard to prevalling market price at the relevant
Time.
(vi) The Company has not accepted any deposits from the public within
The meaning of the provisions of Section 58A and 58AA or any other
Relevant provision of the Companies Act, 1956 and rules made there
Under.
(vii) In our opinion, the Company has an internal audit system
Commensurate with its size and nature of its business.
(viii) The Central Government has prescribed maintenance of the cost
Records under Section 209(1)(d) of the Companies Act, 1956 in respect
Of the Companys products. As per the information and explanations
Provided to us, we are of the opinion that prima facie, the prescribed
Records have been made and maintained. We have however not made a
Detailed examination of the records with a view to determine whether
They are accurate or complete.


(x) There are no accumulated losses as at 31st march 2009. The
Company has not incurred any cash losses during the year covered by our
Audit and the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations
Given by the management, we are of the opinion that the Company has not
Defaulted in repayment of dues to financial institutions, banks or to
Debenture holders during the year.

(xii) The Company has not granted any loans and/or advances on the basis of
security 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 has
Not used funds raised on short-term basis for long-term investments.
(xix) The Company has not issued any secured debentures during the
Year. The Company has created security in respect of debentures issued
In earlier years.
(xx) During the year the Company has not raised any money by way of
Public issue.
(xxi) According to the information and explanations given to us, no
Fraud on or by the Company has been noticed or reported during the


CHAPTER-3

SWOT
ANALYSIS


SWOT Analysis
Strengths
1. 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
Videocon
5. Customers are aware about Videocon’s products.
6. Company has good brand name.
7. Strong backward integration
8. Videocon has largest distribution manufacturing based across in India.
9. Large brand basket
10. Multi brand strategy
11. 3rd largest picture tube manufacture in India
12. Cheap price.
13. Globally acceptance.

Weaknesses
1. Less investment on advertisement of Videocon CTV
2. 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 managed
6.CRT technology is losing popularity.
7.less focus on unconventional channel.
8. Not providing good service.
9.No exclusive show rooms


Opportunities
1. 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 segment
5. 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.

Threats
1. 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.


CHAPTER-4

LEARNING
EXPERIENCE


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 practically
exposure to me.

Observe different strategies adopted by company and its competitors.
(Low price, quick delivery, good service)


CHAPTER-5

RESEARCH
METHODOLOGY


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 market

By this project I want to Create brand awareness of videocon so
it 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.


Videocon brand awareness helps buyers / consumers
in 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 methodology
Research methodology is considered as the nerve of the project. Without
a proper well-organized research plan, it is impossible to complete the
project and reach to any conclusion. The project was based on the survey
plan. The main objective of survey was to collect appropriate data, which
work as a base for drawing conclusion and getting result.
Therefore, research methodology is the way to systematically solve the
research problem. Research methodology not only talks of the methods
but also logic behind the methods used in the context of a research study
and it explains why a particular method has been used in the preference
of the other.


5.2. Research design:
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches available to
the researchers. In fact, it is the key to the evolution of successful
marketing strategies and programmers. It is an important tool to study
buyer’s behavior, consumption pattern, brand loyalty, and focus market
changes. A research design specifies the methods and procedures for
conducting a particular study. According to Kerlinger, “Research Design
is a plan, conceptual structure, and strategy of investigation conceived as
to obtain answers to research questions and to control variance.

The General study was converged as a specific study for videocon. The
study was initiated to find out the consumer profile, brand perception and
cross preference among videocon and Competitor brands.
Our approach to the research design tasks went through the following
tasks.
Information needed
?
Measurement and scaling Procedures
?
Appropriate Data collection
?
Sampling Process and sample size
?
Data Analysis plan


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 Jaipur

5.3.Type
The data collection was done through
1. Secondary Data Analysis
2. Survey
Secondary data is obtained by contacting the retailer and dealers.

5.4.Scaling Techniques
We asked the customers to rank the various attributes on a scale of very
important, Important and not very important. To find-out the brand
perception of various brands, paired comparison between them is used.


5.5.Questionnaire Design
Questionnaire design was the critical issue as the questionnaire
reflects the survey purpose .The questionnaire was meticulously prepared
by identifying the various variables. The same scale of yes/no and very
important, important and not so important was used through out so as to
make the respondent comfortable.

Firstly a questionnaire was prepared and few people were surveyed. After
this survey we realized the flaws in the questionnaire and then a modified
questionnaire was prepared and people were surveyed on this modified
questionnaire.
5.6 Sampling Techniques
In the survey conducted, the sample was random in nature comprising of
people from different age groups and income stratas.

4.7.Data Collection
Data collection is the important step after the sample is selected on which
the survey is being conducted. With data that is available in the hard
form we converted that to electronic form, to analyze the data using the
MS Excel softwares. In the data collection customers were approached
during the working hours at dealers point.

The first part of the survey was a disguised survey was there was no
mention of videocon as Organization. It was conducted as a part of
institute project. Purpose of the survey was explained and was asked


whether they are interested to take part in the survey Later Questionnaire
was handed over to them, and necessary instructions were given to
complete the questionnaire .The questionnaires were returned back after
filing up on their convince, While receiving the filled in questionnaire
care was taken to check whether there are any unfilled items in the
questionnaire.

5.8. Data Analysis
The data of score of features and score of brand perception was fed into
the excel sheet. Separate Excel sheets were employed for analysis of each
brand and also to keep it concise and unambiguous. For data analysis I
use many types of charts:
• Pie chart:

This is very useful diagram to represent data, which are divided into a
number of categories. This diagram consists of a circle of divided into a
number of sectors, which are proportional to the values they represent.
The total value is represented by the full create. The diagram bar chart
can make comparison among the various components or between a part
and a whole of data
• Bar chart:

This is another way of representing data graphically. As the name
implies, it consist of a number of whispered bar, which originate from a
common base line and are equal widths. The lengths of the bards are
proportional to the value they represent.


5.9 Limitations of Survey
Response Errors - These may arise when the respondents give
inaccurate or incomplete answers. For e.g. in our survey a respondent
may not mention that he had test driven a car before purchasing it A
major problem faced in the survey involved the comparative ratings of
various attributes for all the brands of cars. Many of the respondents were
not very willing to rank so many factors as they perceived it to be time
consuming.

Open Ended Questions – All the questions in the questionnaire were
open-ended to avoid any kind of bias from the respondents end. But a
drawback of this approach is that there was an incomplete capture of his
responses, as the respondent could not always ome out with the purchase
steps and the time taken in them. The reasons for such inaccuracy could
be because of unfamiliarity, fatigue, boredom, faulty recall and the
Question format.

Random Sampling Errors – This can occur, as the particular sample
selected is an imperfect representation of the population of interest. The
area covered in the survey was jaipur region and the customer
preferences and tastes in different
Regions could not be covered.


CHAPTER-6
FINDINGS

AND

ANALYSIS


Demographic profile

Gender profile
Male 28%
Female 72%


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


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.  
 


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 TV
advertisement as compare to customers of Samsung and LG. As far as
print media ad is concerned, only few customers came to know about
Videocon through print media ad as compare to customers of Samsung
& LG. But no customers of Videocon came to know about Videocon
through hoardings and billboards, but few customers came to know
about Samsung & LG through hoardings and billboards.

Hence, we can infer that Videocon is doing positioning through TV
advertisements rather than through print media ad and hoardings and
billboards. They should more focus on word to mouth marketing
because they are weak in this.


Why videocon, SAMSUNG or LG?
(Given in percentage
form)

Inference

From the above figures, it indicates that people give more preference
to price as compare to other attributes (Like Brand & Quality) while
buying the Videocon products. we observe here that service is not
good at videocon .

Hence, we can infer that LG & Samsung are strong brand and
having more quality than Videocon (as given in Table and Pie-chart).
Also, LG & Samsung products are more expensive than Videocon.


From where you prefer buying consumer durables
 Co.shoppee
 Showroom
 Exhibitions
 On-line

Inference:
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.


You prefer to buy from the same as you have mentioned in above que. Because of
following reasons
 Attractive Price
 Service
 Demonstrations
 Offers
 Convenience

Inference
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.


Do you prefer any financial scheme to purchase consumer durable?

 Yes
 No

Inference
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.


Would you wait for festive season for available discounts for purchase a
Television?
 Yes
 No

Inference
By 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 .


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 30000

Inference:
By this diagram I can infer than most of customer are see price, if company provide
some good product with more features and style and design it will help in increse
market share.

Some customers are want to spend a big amount of money on t.v. these customer
don’t care money because of high income so company also need to work on R&D, so
company can provide a different product.


How do you feel after using the videocon t.v?
a) Excellent
b) Good
c) Fair
d) Poor

Inference
There 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.


CHAPTER-7
FINDING
AND
RECOMMENDATIONS


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.


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 warranty

RECOMMENDATIONS 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.


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 FINDINGS

1. 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.


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 competitors

RECOMMENDATIONS 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.


• 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.

CONCLUSION

Jaipur market is still a virgin market for these techno-survey Videocon
products. Customers need to be made aware of the productive usages
of these products if Videocon want to target these untapped market
segments of customers and rural customers. Also Videocon need to
modify their advertising strategies in order to promote these products
and services. This also a challenge for Videocon, for a positive
thinking about Videocon
Hence Videocon need to work upon the real factor through
Dealer and Retailer for a KAIZEN continuous productivity in these
products will make these products more friendly and customized.

Hence Videocon will be able to win a major market share
between the competitors.


ANNEXURE


DEALERS QUETIONARIES

Dear Sir/Madam,
I, student of RIMS (ramaiah institute of management studies) Bangalore am
conducting 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 [ ]



a) Less Price [ ]





f) Durability [ ]


a) Less Price [ ]





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:………………………………………………
……………………………………………………………………………
……………………………………………………………………………


CONSUMER SURVEY QUESTIONNAIRE

Dear Sir/Madam,
I am student of RIMS (ramaiah Institute of Management studies) Bangalore and as
part of our curriculum I am conducting a market research. I would like your
cooperation for the same, with an assurance that all the information, which you’ll
give, will remain confidential.

Customer’s personal profile:

1. Name………………………………………………………………………….
2. a) Age ( In years ) : ……………………………………............................
b) Gender (please tick) : Male / Female
3. Educational Qualification……………………………………………………..
4. Address. ………………………………………………………………………
……………………………………………………………………………......…..
5. What is your occupation?
a) Business b) Govt. Service
c) Pvt. Service d) student e) others
6. 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) ………………………………………


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) NO
5. 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) exihibition

7.You prefer to buy from the same as you have mentioned in Q.6 because of
following reasons?
a) Attractive Price b) Service c) Demonstrations d) Offers
e) Convenience
8. 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


9. Would you wait for festive season to avail discounts?
a) Yes
b) No
10. 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) poor

13.Any other comments. …………………………………………………………….
...………………………………………………………………………………………
………………………………………………………….. ……………………………
Thank you for participating in the survey


REFERENCE:

Books

• Philip Kotler, Marketing Management, 13 t h Ed,
Princeton – Hall India 2009
• Marketing Research – Naresh K. Malhotra
• Business research method- S. N. Murthy
Website:

• Http: www.videconworld.com
• http: www.google.com
• http: www.wikipedia.org
• www.in.lge.com

Magazines

• Business today
• Business world
Newspapers

• Economic Times
• Times of India
I AM ASHOK KUMAR A MBA STUDENT PLEASE WRITE ME
CORRECT FEEDBACK ABOUT MY PROJECT.

ID ashokjky@gmail.com

ask_lucky1987@yahoo.com

Thanks…all the best


18245513 videocon-television-project-report

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