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![104.2
375
208.3
12.5
187.5
300
312.5
Carrier
Whirlpool
Bluestar
Haier
Videocon
Panasonic
LG
UPCOMING INVESTMENT BY MAJOR PLAYERS
USD million
Source: Business Standard, company websites, Aranca Research
YEAR COMPANY INVESTMENT
(in USD million)
2012 LG 375
2014 Panasonic 208
2012 Videocon 12.5
2015 Samsung 94
Consumer Durables Firms to Augment Investments in Coming Years
FDI in Retailing encourages more
foreign (Single [100%] & Multi Brand
[51%]) Retailing
65%
35%
URBAN - RURAL PENETRATION
FY11
Urban
Rural
49%51%
URBAN - RURAL PENETRATION FY15
Urban
Rural
Source: Corporate Catalyst India, Aranca Research
INDUSTRYATTRACTIVENESS
* Estimated figures for FY2020](https://image.slidesharecdn.com/7e03e8d9-877f-4285-8407-1a843d46211a-150801093352-lva1-app6891/85/VIDEOCON-Teenu-Nikhil-10-320.jpg)
Uploaded byNikhil Jain
VIDEOCON - Teenu & Nikhil
The document analyzes the consumer durable goods market in India. It finds that the market size is expected to grow significantly due to rising disposable incomes and penetration into rural areas. Competition is intense among major brands like LG, Samsung, and Sony, which invest heavily in marketing and service. In comparison, Videocon has weaker brand visibility, dull product designs, and poor after-sales service. To improve its position, Videocon needs to boost brand awareness, offer innovative products, and provide better customer support. Overall, the consumer durable industry is a major opportunity for growth, but Videocon must address its shortcomings to capitalize on the expanding market.
![Consumer durable [washing machine]](https://cdn.slidesharecdn.com/ss_thumbnails/finalpptsmgt-160213111723-thumbnail.jpg?width=640&height=640&fit=bounds)
VIDEOCON - Teenu & Nikhil
- 2. GDP $3900 2.83% Sources : IBEF,GEPL Capital Research 37 44.2 50.1 67.2 67.5 72.8 88.9 97.1 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Karnataka's GSDP Figures in US$ Billion ECONOMIC SNAP SHORT
- 3. Per Capita IncomeAverage Expenditure Average Savings $1,624.4 (Rs. 81,220) $1124.83 (Rs. 56,241.5) $499.56 (Rs. 24,978) Range No. Of People Avg Expenditure Total Expenditure 0-20 47 10,000 4,70,000 21-40 43 30,000 12,90,000 41-60 9 50,000 4,50,000 61-80 10 70,000 7,00,000 81-Above 41 90,000 36,90,000 TOTAL 66,00,000 31% 29% 6% 7% 27% Exp. on consumer Durables 0-20 21-40 41-60 61-80 81-above Sources : Marketing White Book 202-13 | Expenditure analysis – Questionnaire : Sample size 150 consumers INCOME, INVESTMENT & SAVING PATTERN AVERGAGE EXPENDITURE ON CONSUMER DURABLES 66,00,000/ 150 = 44,000 P.A *Figures Per Annum
- 4. Why Do They Buy? Increasing literacyrate Chief earner contributing to income Rise in disposable income Ease access to credit Increase electrificatio n of rural areas Change in life style Change in education pattern Web connectivity When they buy, What all influence them & how much effort they make
- 5. Media Reach Sources :Marketing White Book 2012-13 | IRS 2010, 2011, 2012 Data. When they buy, What influence them & How much effort they put in 66 49 62 21 23 28 13 31 10 Kitchen Appliance Kitchen Utensils Home Electronics BRAND LOYAL BRAND NEUTRAL BRAND INDIFFERENT 0 10000 20000 30000 40000 50000 60000 PRESS TV SATELLITE RADIO CINEMAS 2010 2011 2012 Brand Loyalty *Population in ‘000 *Figures in percentage
- 6. Decision Making Sources TheKnowledge Company, Technopak 2011 78 17 2 2 1 58 34 3 1 4 SELF HUSBAND OTHER FAMILY MEMBER FATHER/MOTHER CHILDREN KITCHEN APPLIANCE HOME ELECTRONICS *Figures in percentage When they buy, What influence them & How much effort they put in Preferred Format *Figures in percentage 67 59 23 22 7 15 2 31 1 0 10 20 30 40 50 60 70 80 KITCHEN APPLIANCE HOME ELECTRONICS EXCLUSIVE OUTLETS OF THE PRODUCT EXCLUSIVE OUTLET OF THE BRAND MULTI BRAND OUTLETS EXIBITIONS & FAIRS OTHER FORMATS
- 7. When they buy,What influence them & how much effort they put in Preferred Location Sources The Knowledge Company, Technopak 2011 56 52 29 27 11 15 3 4 2 2 0 10 20 30 40 50 60 KITCHEN APPLIANCE HOME ELECTRONICS UPTO 1 KM 1KM - 2KM 2.1 KM - 5KM 5.1 KM - 10 KM More than 10 KM *Figures in percentage
- 8.
- 9. 30% 18%13% 5% 34% MARKET CONSTITUENCY Colour TV Refrigerator AirConditioner Washing Machine Others WHITE GOODS BROWN GOODS CONSUMER ELECTRONICS Refrigerator Oven Television Washing Machine Chimney DVD Player Air Conditioner Cooking Range VCD Player Audio System Mixer Mobile Phone Cleaning Equipment Grinder MP3/4 Player Electric Fan Computer Iron Camera Sources : IBEF, GEPL Capital Research 85% 24% 24% 18% 15% 3% 1% PRODUCT PENETRATION PRODUCT PENETRATION INDUSTRY SIZE Rs. 350bn (as on March 2012) KEY CATEGORIES White goods, Brown Goods & Consumer Electronics COMPETITIVE LANDSCAPE Korean Players – LG & Samsung GROWTH OPPERTUNITIES Lower penetration coupled with increasing disposable income Sources : CEAMA, MOSPI, GEPL Capital Research Sources : IBEF, GEPL Capital Research Sources : IBEF, GEPL Capital Research INDUSTRYALLABOUT
- 10. 104.2 375 208.3 12.5 187.5 300 312.5 Carrier Whirlpool Bluestar Haier Videocon Panasonic LG UPCOMING INVESTMENT BYMAJOR PLAYERS USD million Source: Business Standard, company websites, Aranca Research YEAR COMPANY INVESTMENT (in USD million) 2012 LG 375 2014 Panasonic 208 2012 Videocon 12.5 2015 Samsung 94 Consumer Durables Firms to Augment Investments in Coming Years FDI in Retailing encourages more foreign (Single [100%] & Multi Brand [51%]) Retailing 65% 35% URBAN - RURAL PENETRATION FY11 Urban Rural 49%51% URBAN - RURAL PENETRATION FY15 Urban Rural Source: Corporate Catalyst India, Aranca Research INDUSTRYATTRACTIVENESS * Estimated figures for FY2020
- 11. Growing Demand Higher real disposable income Easyconsumer credit Growing consumer base Policy Support Setting up EHTP's Increasing liberalistaion & tariff relaxation Favourable FDI climate Increase In Investment Expanding production & distribution facility in india Incresing R&D activity Providing global to foregin projes through india GROWTH DRIVERS INVITING RESULTING Notes: EHTP - Electronic Hardware Technology Park, FDI - Foreign Direct Investment, R&D - Research and Development
- 12. WHO ALLARE THERE& WHERE ARE THEY PRESENT
- 13. 12 7 8 9 12 9 3 CROMA RELIANCE DIGITAL NEXT VIEVEKSE ZONE GIRIAS PAI NUMBER OF STORES IN BANGALORE STORES & BRANDS SERVED IN BANGALORE 1 2 STOCK LEVELS Most of the national level stores have there own brands as well!
- 14.
- 15. BUYING BEHAVIOR &BRANDS 10% 35% 52% 3% 0% 0% LG SAMSUNG SONY GODREJ VIDEOCON WHIRLPOOL TECHNOLOGY WISE RANKING Technology *Figures in percentage Sample Size 150 Consumers 9% 37% 33% 15% 6% 0% GODREJ LG SAMSUNG SONY WHIRLPOOL VIDEOCON CUSTOMER SUPPORT AND SERVICE *Figures in percentage Sample Size 150 Consumers 5% 7% 43% 41% 3% 0% GODREJ LG SAMSUNG SONY WHIRLPOOL VIDEOCON ATTRACTIVE LOOKS *Figures in percentage Sample Size 150 Consumers Looks Service
- 16. BUYING BEHAVIOR &BRANDS *Figures in percentage Sample Size 150 Consumers 34% 22% 10% 34% 0% LONG LASTING 9% 16% 19% 53% 3% 0% BRAND VALUE 6% 65% 19% 7% 3% 0% GODREJ LG SAMSUNG SONY WHIRLPOOL VIDEOCON FACE OF MICROWAVE OVEN BRAND & BUYING PREFERENCE Long Life *Figures in percentage Sample Size 150 Consumers Brand Value *Figures in percentage Sample Size 150 Consumers Microwave Oven
- 17. 7% 22% 69% 3% 0% 0% FACEOF TELEVISION BRAND & BUYING PREFERENCE TV *Figures in percentage Sample Size 150 Consumers AC *Figures in percentage Sample Size 150 Consumers 7% 43% 19% 25% 7% 0% FACE OF AIR CONDITIONER 21% 19% 9% 51% 0% 0% FACE OF WASHING MACHINE Washing Machine *Figures in percentage Sample Size 150 Consumers Refrigerator *Figures in percentage Sample Size 150 Consumers 19% 33% 33% 7% 9% 0% FACE OF REFRIGERATOR
- 18. VISIBILITY OF THEBRAND IN TV 10% 3% 28% 25% 33% 6% 10% 22% 34% 28% 7% 13% 16% 30% 35% 16% 30% 29% 25% 0% 15% 30% 32% 23% 0% 25% 22% 22% 19% 13% 1 2 3 4 5 LG SONY SAMSUNG VIDEOCON WHIRLPOOL GODREJ *Figures in percentage 1, 2, 3, 4, 5 –RANKS 5 – HIGHEST| 1 - LEAST
- 19. FINDINGS & CONCLUSION GENERAL •Contribution of CDI to GSDP – 6.59% (approx.) • A person spend about – 48% of his disposable income in CDI • Living standard has increased • Better connectivity • More choices & options • Affordability COMPETITION • High visibility of brands like LG, Samsung, Sony. – But Videocon rarely present • Not utilizing all source of promotion – Which other brands are making a good use of • No. of competitors is increasing (including house brands) • Very intense marketing and reach towards consumers – Videocon inactive • Deep product line – which Videocon is lacking • A Good after sales service – many stores do not keep Videocon because of poor service • Fewer incentives to dealers/retailers
- 20. OPPORTUNITIES • Consumer durablesmarket expected to expand at a CAGR of 14.8 per cent to USD12.5 billion in FY15 (from USD7.3 billion in FY11) • Demand from rural and semi-urban areas is expected to expand at a CAGR of 25 per cent to USD6.4 billion in FY15 from USD2.1 billion in FY10 • By FY15, rural and semi-urban markets are likely to contribute a majority of consumer durables sales CONSUMER PREFERENCE – for Videocon • Shifting brand loyalty to other companies • Low preferred brand • Brand recall required • Dull looks & poor technology • Poor customer service FINDINGS & CONCLUSION Source: Corporate Catalyst India, Aranca Research
- 21. THANK YOU A PROJECTWORK BY Teenu Susan George | teenu.george@mba.christuniversity.in Nikhil Jain | nikhil.jain@mba.christuniversity.in
Editor's Notes
- #19 INFERENCE – 0% People gave 5 out of 5 to Videocon in regard to visibility on TV, 25% people gave 4 out of 5, 29% people gave 3 out of 5, 30% people gave 2 out 5 and 16% people gave 1 out of 5