In this presentation we will see how new LED TV brands in India market will meet their unlikely fate due to quick fix strategies and unrealistic market understanding.

1. NEW BRAND HICK-Ups
(LED TV Brands)
in
Consumer Electronics
by
Haranath.K

2. • In this article, whatever findings, analysis I
have mentioned are summarised out from my
own industry experience and contacts.
• This article is for information purpose only
which can help the new comers to improve
their understanding about Consumer
Electronics Industry.
Foreword

3. • In through out my career I have worked in various
assignments with different brands.
• But one question always remained a mystery why
new brands struggle measurably in market and
meet their unlikely fate at the end.
• As per the observation done at various retail
stores, channel partners and feedback from
numerous professional from industry, I have tried
to find out answer for this.
• Lets try to see the situation from different view
point of trade about a new brand.
Hick-Ups...........

4. • New Brands will manoeuvre the strategy as per
the manpower comfort.
• They prefer to hire experienced manpower to
gain access to big counters based on the rapport
of manpower because they believe less in their
product strength.
• They get entry at the cost of their Brand future.
• Especially most of the new brands do this mistake
at the initial phase of launch of their brand in
market because they lack the inputs of realistic
market research.
Hick-Ups...........

5. • First they intend to seek product from big OEMs
to have reasonable quality assurance.
• But they compromise on the vital aspects of the
products which are important to differentiate the
product from competition.
• And they test their product in lab conditions not
on the shop floor conditions.
• And resort to technical team to get the feedback
about the product but they miss the main
individual who sells their product on shop floor
after it gets launched.
Hick-Ups...........

6. • They always remain in the notion that trade
will always look for new cheaper product to
sell fast to make primary volumes faster.
• They always fear about the competition that if
they try to launch product at higher price for
providing quality product with better features,
may not be accepted by trade.
• Because Trade will compare with top brands
and start negative selling of this new product.
Hick-Ups...........

7. • Before they finalise the product they finalise the
selling price to trade, for example if I want to sell
this product at this price what should be my
expenses and landing price.
• All the above mentioned views pointing out to
only stance i.e., they want to launch a product
but not a Brand.
• Knowing or unknowingly their entire efforts were
concentrated to live short, thinking it is big but
they lack long term vision to grow big.
Hick-Ups...........

8. • Few brands will come like an advertisement in
our daily soaps, some new companies get few
containers on LC from China and try to sell at
lower price to make quick bucks and wants to
rotate cash to payoff dues to bank.
• They try to catch big retail chains to sell off entire
stock to make quick returns even though at thin
margin.
• Even retailer chains need cheap products to use
them like crowd pullers to attract more walk-ins.
Hick-Ups...........

9. • These cheap brands will create temporary
volatile situation in market and few brands
will react to this and try to follow the same
route to climb market share ladder.
• In this game of Snakes and Ladder, new brands
wants to climb this brand share ladder very
fast and ignore the presence of snakes.
• When you don’t have healthy respect towards
your brand why the market will give respect.
Hick-Ups...........

10. • Every time when new Brand meets failure it results in
following......
• Unpaid Dues
• Unsold Stocks
• Unresolved Claims
• Serious Service issues
• Poor Quality
• Poor BTL Activities
• Poor Selection of Channels to sell products
• Promising monopoly to single distributor/Retailer in
market for short term volumes.
• Every Department will blame each other i.e.,
Sales/Marketing/Finance/Service etc with out analysing
actual reasons.
Hick-Ups...........

11. EVOLUTION.............

12. • New start-ups who are intend to join this Consumer
Electronics Industry should get evolve from their
mundane understanding about the market.
• They should come out with a brand which promises to
live long and also provide secured margins to trade to
get well accepted.
• Consistency of the brand availability is the main
concern nowadays.
• I have derived few main aspects which normally any
sales person will try to find/ relate when he wants to
sell any new LED TV brand.
• When your sales man is confident about the product
our half battle is won.
Need To Evolve

13. The Main aspects which normally most of the promoters
will perceive when they want to sell new LED TV
product to consumer.
• Physical Aesthetics
• Picture Quality
• Touch and Feel of the Remote
• Shortcut functions on Remote menu
• User Friendly Menu screens
• Presentation of Menu Screens
• Clear Volume at higher decibels
• After Sales Service (TAT)
Need To Evolve

14. THANK YOU