In the past five years, the Indian television industry has witnessed drastic changes intensity of competition , promotional schemes and deferred payment options.<br />The entrenched position of Indian market leaders such as Videocon, BPL and Onida have challenged by MNC’s such as LG, Samsung, Sony , Panasonic, Phillips and Sharp.<br />The changing environment needs fresh thinking to gain cutting edge advantage. Various strategic initiatives have been adopted to leverage on favorable forces and prevent adverse ones. <br />
Threat of new entrants<br />Threat of substitutes<br />Inter Firm Rivalry<br />Growth & Volatility of Market <br />
Current market size estimated at 13.2 million units.<br />LG and Samsung were market dominators with combined share of 42% .<br />Aggressive marketing ,product quality and price sensitivity are going to be the key factors controlling the market.<br />Sony is clearly the leader in this section by miles.<br />Samsung, Onida and Phillips are almost at par when it comes to average realization<br />
LCD Television market share is around 6.6% of the total CTV market.<br />Technology and Innovation are most influential factors which would drive this segment.<br />India’s growing upper middle class is projected to be the greatest source of LCD TV purchasing power.<br />32” LCD Televisions capture the maximum share within the segment.<br />
Focus on In-store and POS branding</li></li></ul><li><ul><li> Surge in growth rate from year 1995 to 2000 caused by entry of various MNC’s to the Indian market combined with very aggressive marketing of their products.
Indian rural market is projected to grow at 25% as compared to 7-10% for urban markets.
High growth projected in the replacement market due to increase in the prosperity levels of the lower income strata combined with technological advancements. </li></li></ul><li>Growth Drivers<br />
Classified into 4 Sub-Groups<br />The Upgraders<br />The First Time Buyers<br />Multiple Set Buyers<br />Replacement Purchasers<br />
<ul><li> This segment of buyers have upgraded from black and white televisions to CTV’s.
Largest in Indian market and constitutes for 62%. of market size.
Primary reason behind up gradation is cable and satellite boom and increasing coverage of major sports events
This segment normally builds its product knowledge from advertising and other communication that it gets exposed to.
The 14” television is the most preferred buying option of this section , contributes to around 20%, but will gradually decline by 2011.
This segment shows a distinct preference for multi brand outlets to compare brands and gather unbiased information.</li></li></ul><li><ul><li> This segment constitutes of people who are buying a CTV for the first time.
Key product differentiators are shape, color of cabinet , speaker output and other accessories.
Brand loyalty is not very high but focus is towards the brand offering the latest and consumer friendly technology
Primary consumer families are nuclear in type with no kids combined with secondary buyers as bachelors living alone for studies or job.
Price plays a major role in decision making but discounts and trade – ins do not enjoy much popularity</li></li></ul><li><ul><li> This segment represents people buying more than one set and are looking to fill specific gaps
Main consumers are joint families with the need to own personnel television sets
Price is the most important purchasing factor combined with lookout for a high tech product.
Till 1995, the segment was more prone to purchase from the grey market but now the trend has changed to regular channels of distribution </li></li></ul><li><ul><li> This segment usually trades in old CTV’s for new ones.
It forms around 12% of the market and holds immense potential for the future.
The upcoming new technologies such as HDMI, 3D , Blu-Ray has lead users to constantly keep replacing their old sets with new ones.
With increasing disposable incomes and the introduction of new models and declining prices, replacement demand has surged over the years.
The replacement demand is slated to account for 55-57 % of total CTV market by 2011</li></li></ul><li>* Accenture Consumer Electronics and Service Usage Report<br />
84% Indian consumer were willing to pay a premium for environment friendly products<br />Technology innovation was ranked as the most important purchase decision at 19% when compared to the rest of the world which sits at 10%<br />* Accenture Consumer Electronics and Service Usage Report<br />