A

PROJECT REPORT ON

“MARKET RESEARCH OF SET TOP BOXES”

For

VISHAY Components India Ltd.

By

Mr.Amit H. Kudke

Under the guidance of Mr. Mahesh S. Halale

Submitted to

“University of Pune”

In partial fulfillment of the requirement for the award of the degree of

Master of Business Administration (MBA)

Through

Vishwakarma Institute of Management

Pune-48

1

ACKNOWLEDGEMENT

I would like to express my gratitude to all those who gave me the

possibility to complete this report. I want to thank the Sales Department of Vishay

components India limited for giving me permission to commence this survey in the

first instance, to do the necessary research work and to use departmental data. I have

furthermore to thank Mr. Vilas Rabde sir, who gave and confirmed this permission

and encouraged me to go ahead with this survey.

I am deeply indebted to my guide Mr.Rabde sir, whose help,

stimulating suggestions and encouragement helped me in all the time of research.

I want to thank Mr.Abhijit Saxsena for his help, support,

interest and valuable hints. Especially, I would like to give special thanks to all

staff of Vishay India for their support, which enabled me to complete this work.

Amit H Kudke

2

INDEX

Sr No. Topics Page no1 Executive Summary 12 Company Profile 53 Objective & Scope of Project 234 Research Methodology 265 Data Analysis 296 Findings 487 Conclusion 508 Recommendations 519 Bibliography 5210 Appendices 53

1. EXECUTIVE SUMMARY

3

INTRODUCTION

This project was done for VISHAY, one of the world’s largest manufacturers of

discrete semiconductor and passive components, to help it to carry out its business

development activity to further increase its market share. New strategies and policies

are continuously evolved and formulated to retain present market share and to capture

additional share. Today its buyer’s market, the companies are going all out to woo the

customer and try to meet their expectation.

The project title was “MARKET RESEARCH OF SET TOP BOXES” and it was

carried out at VISHAY Asia sales` corporate office, Pune.

The project dealt with finding out the opportunities for VISHAY in set top box

market. Set top boxes are required through different platforms such as Digital CATV,

DTH (direct to home), IPTV (Internet protocol TV) and DTT. With DTT not

functional in India the remaining three platforms requires STBs in India.

The Cable TV networks (amendment) bill 2002, made the introduction of addressable

system mandatory. According to this bill the pay channels are to be delivered only to

the addressable system and free to air channels to be delivered as a part of basic

service. The CAS was thus rolled out.

4

CAS (Conditional Access System) is the way of ensuring that only authorized

subscribers can view a particular package of programming, which is transmitted in

encrypted/scrambled form

.

CAS was implemented in zone 1 areas of Delhi, Kolkatta, and Mumbai in Jan 07 on

experimental basis. TRAI appointed a committee to study the effects of CAS in these

areas. In its report the committee recommended a 3-phase roll out of the CAS in 55

cities between June 2008 and June 2011.

CAS supports not only pay TV but also other audiovisual services and used for more

than one delivery mechanism, example: digital terrestrial TV, point-to-point

communication.

DTH (Direct to Home), it allows subscriber the reception of satellite programmes

with personal dish in an individual home.

This platform has got huge popularity in recent times. Currently, in India, DD direct,

Dish TV and Tata sky are the service providers of DTH. In future Sun TV, Reliance

BLUEMAGIC and Bharati AIRTEL are planning to start their services.

IPTV (Internet Protocol TV), It is a system where a digital television service is

delivered by using Internet Protocol over a network infrastructure, which may include

delivery by a broadband connection.

5

MTNL-providing its IPTV services in Delhi, Mumbai.

BSNL-providing IPTV services in Pune.

A general definition of IPTV is television content that, instead of being delivered

through traditional broadcast and cable formats, is received by the viewer through the

technologies used for computer networks.IPTV is a set of services delivered to the TV

by a broadband service provider as a managed service.

IPTV is often provided in conjunction with Video on Demand and may be bundled

with Internet services such as Web access and VoIP. The commercial bundling of

IPTV, VoIP and Internet access is referred to as "Triple Play" service (adding

mobility is called "Quadruple Play"). IPTV is typically supplied by a service provider

using a closed network infrastructure. This closed network approach is in competition

with the delivery of TV content over the public Internet, called Internet Television. In

businesses, IPTV may be used to deliver television content over corporate LANs.

STB (Set top box) is a receiver unit, with an internal decoder, that is connected to the

TV set. It receives and demultiplexes the incoming satellite signal and decrypts it

when provided a control word by the smart card.

FEATURES OF STB:

-Decodes the incoming digital signal.

-Verifies access rights & security levels.

-Displays cinema quality picture & sound on TV.

6

-Processes & renders Internet & interactive TV services.

The project was divided into three parts. First part was demand side research, the

second was supply side research and the third was the analysis part. PERT & CPM

were used to trace the progress of project. Time activity chart was prepared.

The VISHAY does the business of 30 Million USD in India. To achieve the Y-O-Y

growth of 10%, it was looking for an industry that would offer the business of around

3 Million USD.From the research it was found that STB industry would offer the

business of approximate 10%. So it was recommended that the company should

concentrate on this industry.

7

2. COMPANY PROFILE2. COMPANY PROFILE

Vishay was founded in 1962. During the years that followed, the electronics industry

has grown exponentially - and so has Vishay. Advances in technology have been

profound, resulting in electronic devices that have changed the ways in which people

worldwide communicate, travel, work, and play. Vishay has grown from a leader in

one area - Bulk Metal foil technology - to a leader in many areas of discrete-

electronic-component technology. Technological innovation has always been a key

part of Vishay's identity.

INITIAL TECHNOLOGY BREAKTHROUGHS:

In the 1950s, as the electronics industry began its accelerated growth, Dr. Felix

Zandman, a physicist, and current Chairman and CEO of Vishay, was issued patents

for his Photo Stress coatings and instruments. These devices are used to reveal and

measure the distribution of stresses in structures under live load conditions such as

airplanes and cars. Dr. Zandman's research in this area led him to develop Bulk Metal

foil resistors - ultra-precise, ultra-stable resistors that, even now, provide performance

far beyond any other resistor available.

In 1962, Dr. Zandman, with the financial help of the late Alfred P. Slaner, founded

Vishay to develop and manufacture Bulk Metal foil resistors. Concurrently, J.E. Starr,

a colleague of Dr. Zandman, developed foil resistance strain gauges, which also

became a part of Vishay. The Company was named after Dr. Zandman's and Mr.

8

Slaner's ancestral village in Lithuania, in memory of family members who perished in

the Holocaust.

Throughout the '60s and '70s, Vishay established itself as a technical and market

leader in Photo Stress products, strain gages, and foil resistors.

DRAMATIC GROWTH THROUGH ACQUISITIONS:

By the early '80s, Vishay was positioned to grow significantly. Because the markets

for Photo Stress, resistance strain gauges, and ultra-precise resistors were relatively

small, the Company moved to expand into high-volume resistors. The billions use

such resistors every year, in virtually every sector of the electronics industry.

Vishay's strategy was to enter the market through the acquisition of respected, well-

positioned manufacturers. The company set strict acquisition criteria for technological

strength, brand recognition, manufacturing capabilities, markets served, and

management depth.

Beginning in 1985, Vishay acquired dale electronics, draloric electronics, and

sfernice. These new operations helped produce dramatic sales growth - from $57

million to more than $400 million in just three years. Vishay quickly achieved a

position as the largest fixed resistor manufacturer in the United States and Europe.

These acquisitions also brought other passive electronic components into Vishay,

such as inductors, specialty capacitors, plasma displays, specialty connectors,

transformers, thermistors, potentiometers, and trimmers - complementing Vishay's

strength in resistors. In fact, this diversification underscores the strategy that Vishay

9

continues to pursue today - to be the manufacturer of the broadest line of discrete

electronic components in the industry.

NEW PRODUCTS AND MARKETS:

In the early '90s, Vishay applied its acquisition strategy to the high-volume capacitor

market, extending its range of products and increasing penetration in passive

components. Major acquisitions included Sprague Electric, the inventor and

manufacturer of tantalum capacitors; Roederstein, a manufacturer of film, aluminum,

and ceramic disk capacitors and thick film chip resistors; and Vitramon, a high-

quality manufacturer of multilayer ceramic chip capacitors. By 1994, annual sales had

reached $988 million.

EXPANSION INTO SEMICONDUCTORS:

In 1998, Vishay acquired the Semiconductor Business Group of TEMIC, which

included Telefunken and 80.4% of Siliconix, producers of MOSFETs, RF transistors,

diodes, optoelectronics, and power and analog switching integrated circuits.

ONGOING GROWTH:

During 2000, Vishay acquired passive-component companies Electro-Films, Cera-

Mite, and Spectrol. Each of these acquisitions, while relatively small, strengthened

Vishay's position in niche markets.

Vishay's acquisitions during 2001 included Tansitor, the infrared components

business of Infineon Technologies, General Semiconductor, and North American

10

Capacitor Company (Mallory). The addition of Infineon's infrared components group

and General Semiconductor enhanced Vishay's existing Telefunken and Siliconix

businesses - and propelled Vishay into the top ranks of discrete semiconductor

manufacturers worldwide. The Tansitor and North American Capacitor Company

(Mallory) acquisitions enhanced Vishay's position in tantalum capacitors.

In December 2002, Vishay completed its acquisition of BC components Holdings

B.V., a leading manufacturer of passive components with operations in Europe, India,

and the Far East. This major acquisition will significantly enhance Vishay’s global

market position in passive components. The product lines of BC components include

linear and non-linear resistors; ceramic, film and aluminum electrolytic capacitors;

and switches and trimming potentiometers.

Vishay acquisitions during 2002 also included Sensortronics, Tedea-Huntleigh, BLH,

Nobel, and Celtron, which were integrated into Vishay Measurements Group. This

unit of Vishay manufactures diverse products ranging from resistance strain gauges,

to transducers (the metallic structures to which strain gauges are cemented), to the

electronic instruments and systems that measure and control the output of transducers.

Vishay's growth has been fueled by research and development, strategic acquisitions,

a commitment to address customer needs, and an ongoing effort to improve product

performance. The Company continues to explore acquisition opportunities in

semiconductors, passive components, and measurement sensors and equipment.

11

ABOUT VISHAY INDIA

BC components (Beyschlag Centralab components), a leading manufacturer of

passive electronic components, emerged from Philips Electronics in January 1999.

Building upon the tradition of excellence associated with Beyschlag, Philips, and

Centralab, BC components carried out, in close cooperation with customers, a

continuous process of product innovation and improvement. This tradition of

excellence included the development of several products that have become industry

standards, such as SMD Mini-MELF resistors (now branded Vishay Beyschlag) and a

range of aluminum capacitors with industry-leading temperature tolerances. BC

components earned the status of preferred supplier to many of the world’s leading

electronics companies.

Vishay acquired BC components in December 2002. The former BC components

product portfolio is now divided into Vishay Beyschlag and Vishay BC components.

Products branded Vishay Beyschlag include carbon film MELF resistors, Cermet film

chip resistors, leaded carbon film resistors, leaded metal film resistors, thin film chip

resistors, thin film chip resistor arrays, and thin film MELF resistors. Products

branded Vishay BC components include leaded metal film resistors, leaded metal

glaze resistors, thermistors, varistors, variable resistors, ceramic capacitors, aluminum

capacitors, and film capacitors.

12

CHRONOLOGY OF EVENTS

1959 – Start of activity with ceramic Capacitors and Air Varcos

1960-68 – Potentiometers, Film caps, Elcaps (axial), Resistors

1968 – Ceramic materials development (Discontinued in 1999)

1978-83 – Metallised Film caps, Elcaps (single ended), Metal Film Resistors,

Ceramic Capacitors

1992 – Resistor (SFR) export started

1995 – Consolidation with business group Passive Components

1999 – BCc (Formation of a separate company)

2001-2002 – Establishing Export Oriented Unit (EOU) for the Roermond (Holland)

Resistor

13

ORGANIZATIONAL CHART

14

MMISSION STATEMENISSION STATEMENTT

A. PROVIDE OUR CUSTOMERS WITH:

A single manufacturing source (one-stop shopping) for discrete semiconductors and

passive components.

Quality state-of-the-art products at competitive prices.

A continuous stream of new products.

Superior Customer Service worldwide.

B. PROVIDE OUR SUPPLIERS WITH:

Reliable long-term relationships.

C. PROVIDE OUR SHAREHOLDERS WITH:

A good Return on their Investments.

D. PROVIDE OUR EMPLOYEES WITH:

Responsible and ethical leadership.

A creative working environment.

Responsible community membership at all Vishay locations.

15

PPRODUCT PORTFOLIRODUCT PORTFOLIOO

A. DISCRETE SEMICONDUCTORS:

1. RECTIFIERS: -

Schottky (Single, Dual)

Standard, Fast and Ultra – Fast Recovery (Single, Dual)

Clamper/Damper

Bridge

Super-Rectifier

Sinter glass Avalanche Diodes.

2. SMALL SIGNAL DIODES: -

Schottky and Switching (Single and Dual)

Tuner/ Capacitance (Single/Dual)

Band switching

PIN.

3. ZENER AND SUPPRESSOR DIODES: -

Zener (Single, Dual)

TVS (TRANSZORB, Automotive, ESD, Arrays)

16

4. MOSFETs: -

Power MOSFETs

JFETs.

5. RF TRANSISTORS: -

Bipolar Transistors (AF and RF)

Dual Gate MOSFETs

MOSMICs.

6. OPTOELECTRONICS: -

IR Emitters, Detectors, and IR Receiver Modules

Opto-Couplers and Solid State Relays

Optical Sensors

LEDs and 7 Segment Displays

Infrared Data Transceiver Modules

Custom Products.

7. IC’S: -

Power ICs

Analog Switches.

17

B. INTEGRATED MODULES:

DC/DC Converters

C. PASSIVE COMPONENTS:

1. CAPACITORS: -

Tantalum Capacitors

Solid Tantalum Capacitors

Wet Tantalum Capacitors

Ceramic Capacitors

Multilayer Chip Capacitors

Disc Capacitors

Film Capacitors

Power Capacitors

Heavy Current Capacitors

Aluminum Capacitors

Silicon Capacitor.

18

2. RESISTORS: -

Foil Resistors

Film Resistors

Thin Film Resistors

Thick Film Resistors

Metal Oxide Film

Resistors Carbon Film Resistors

Wire wound Resistors

Variable Resistors

Cermet Variable Resistors

Wire wound Variable Resistors

Conductive Plastic Variable Resistors

Network/ Arrays

Non-linear Resistors

NTC Resistors

PTC Resistors

Varistors.

3. MAGNETICS: -

Inductors

Transformers.

19

D. STRESS SENSORS AND TRANSDUCERS:

1. STRAIN GAUGES AND INSTRUMENTS

2. PHOTO STRESS INSTRUMENTS

3. TRANSDUCERS: -

Load cells

Weighing Systems

20

SS TRATEGICTRATEGIC ACQUISITIONACQUISITION S:S:

VISHAY ANGSTROHM

VISHAY AZTRONIC

VISHAY BCCOMPONENTS

VISHAY BEYSCHLAG

VISHAY BLH

VISHAY CELTRON

VISHAY CERA-MITE

VISHAY DALE

VISHAY DRALORIC

VISHAY ELECTRO-FILMS

VISHAY ESTA

VISHAY FOIL RESISTORS

VISHAY MEASUREMENTS GROUP

VISHAY MICRO-MEASUREMENTS

VISHAY NOBEL

VISHAY ROEDERSTEIN

VISHAY SEMICONDUCTORS

VISHAY SENSORTRONICS

VISHAY SFERNICE

VISHAY SILICONIX

VISHAY SPECTROL

VISHAY SPRAGUE

21

VISHAY TECHNO

VISHAY TEDEA-HUNTLEIGH

VISHAY THIN FILM

VISHAY TRANSDUCERS

VISHAY ULTRONIX

VISHAY VITRAMON

V ISHAY BRAND S:

A. RESISTOR BRANDS: -

Vishay Beyschlag

Vishay BC components

Vishay Dale

Vishay Draloric

Vishay Electro-Films

Vishay Foil Resistors

Vishay Sfernice

Vishay Spectrol

Vishay Thin-Film

B. MAGNETICS BRANDS: -

Vishay Dale Inductors and Transformers

22

C. CAPACITOR BRANDS: -

Vishay BC components

Vishay Cera-Mite

Vishay Draloric

Vishay ESTA

Vishay Roederstein

Vishay Sprague (includes Mallory [NACC] and Tansistor)

Vishay Vitramon

D. STRESS SENSORS AND TRANSDUCERS BRANDS: -

Vishay BLH

Vishay Celtron

Vishay Micro-Measurements

Vishay Nobel

Vishay Sensortronics

Vishay Tedea-Huntleigh

Vishay Measurements Group has two operating divisions: Vishay Micro-

Measurements (for strain gages, instruments, and Photo Stress products), and Vishay

Transducers (for load cells, weigh modules, instruments, and weighing systems).

23

CUSTOMER ASSURANCE

Vishay states its primary goal is "to exceed the expectations of our customers." The

entire organization, beginning with top management, has worked consistently to meet

that objective.

Vishay's reputation for quality is based on a commitment to the newest and most

effective design, manufacturing, testing, and management procedures - including both

Statistical Process Control and continuous improvement methodologies.

To complement quality systems for each product line, Vishay maintains extensive

testing laboratories at its facilities. As a result, the Company is well equipped to

maintain qualifications to a wide range of specifications vital to the automotive,

commercial, defence, and aerospace markets, including:

MIL (Military Specifications)

 ER (Established Reliability)

 CECC (CENELEC Electronic Components Committee)

 DIN (German Industrial Standards)

 SNQ (Service National de la Qualité - French Standards)

 BS (British Standards)

 NASA (National Aeronautics and Space Administration Standards)

 IS0 9000 (International Organization for Standardization)

 QS 9000 (Automotive Quality System)

24

Such assurances enable many customers to deploy ship-to-line programs with Vishay,

eliminating the time and cost of receiving and inspections.

VISHAY'S CUSTOMER SERVICE POLICY:

A commitment to provide world-class customer service, which starts with the

Chairman and CEO and extends through top management and the entire workforce.

Maintaining dual or triple production sites for most of its products ensure an

uninterrupted supply.

Continuous upgrading of product quality and customer service consistent with

customer expectations. Promoting supplier and customer partnerships to address

changing requirements and problem solving solutions.

Anticipating future product and service expectations of Vishay customers to ensure

continued customer satisfaction. A streamlined sales and marketing organization

offering customers national and multinational support.

25

3. OBJECTIVES

MARKET SURVEY OF STBs

PRIMARY OBJECTIVES:

To find the market size of STBs and its future growth.

To find out the major players & popular models.

To collect the BoMs of popular models.

Analysis of BoMs.

To find the opportunities for Vishay India.

SECONDARY OBJECTIVES:

Government’s regulations.

BIS’ specification for STBs.

QoS standards for each platform.

26

SCOPE OF PROJECT:

AREA OF OPERATION:

STBs are required for following platforms,

DIGITAL CATV (CAS),

DTH,

IPTV,

DTT.

Out of this listed platform DTT is not operational in India. So remaining plat forms

were studied. STB manufacturers as well as service providers were interviewed, to

find out demand for STBs. BoMs were collected from suppliers and were analyzed to

find out the potential business for Vishay India.

SAMPLING PLAN:

SAMPLE UNIT:

Individual manufacturers & service provider were taken into consideration as a

sample unit for the project.

27

SAMPLE SIZE:

A. MANUFACTURER

Jabil

Flextronic

TVSE

B. SERVICE PROVIDER

Dish TV

TATA sky

Hathway

BSNL

MTNL.

C. CONTACT METHOD:

The contact method used to contact the manufacturers and service providers, was

through prior appointment on phone.

D. LOCATION:

Pune-Jabil manufacturing plant, Ranjangaon.

TATA sky corporate office, Prabhat road, Pune.

Hathway Datacom Private Ltd, corporate office, Deccan, Pune.

Mumbai-WWIL, corporate office, Worli, Mumbai.

Banglore-Flextronic international, manufacturing plant, Housar road, Banglore.

28

4. RESEARCH METHODOLOGY

MARKETING RESEARCH:

Marketing research is defined as the, “objective & formal process of systematically

obtaining, analysis and interpreting data for actionable decision making in

marketing”.

This definition lays stress on two aspects, namely, objectivity and systematic process

in collection and analysis of data. In fact, marketing research should not be allowed to

be influenced by personal views and considerations. Before undertaking any research

study it is essential to delimit the primary objectives of the project and define the

methodology of undertaking the project in as much details as possible. The user must

be able to utilize the results for marketing decision-making purpose. That is to say,

any marketing research done on an arbitrary basis i.e. Lacks of objectivity or applying

one’s personal convenience in the data collection and interpretation i.e. No systematic

search, will certainly be of no use.

Research methodology used was survey method. The contact method was through

prior appointment on telephone.

29

SOURCES OF DATA COLLECTION:

Internet

Magazines

Journals

Meeting concerned people

PRIMARY DATA:

Primary data are the data that are collected to help, solve a problem or take advantage

of an opportunity on which a decision is pending. Primary data was collected from

manufacturers and service providers. The data collected was:

From manufacturers: BoMs and annual production,

From service providers: numbers of customers.

SECONDARY DATA:

Secondary data are data that were developed for some purpose other than helping to

solve the problem at hand. The data was collected through Internet, magazines and

journals.

Secondary data can be collected quickly and inexpensively, compared to primary

data. Secondary data is already available and can be obtained much faster and at a

fraction of the cost of collecting them again. Before secondary data can be used as the

only source of information to help solve a problem, they must be available, relevant,

accurate, and sufficient. If one or more of these criteria are not met, primary data may

have to be used.

30

Assumptions made were, average selling price of each component was assumed, the

prices of components were assumed to be constant and at present price.

31

5. DATA ANALYSIS

STBs are required for following platforms:

DIGITAL CATV (CAS).

DTH.

IPTV.

DTT.

Out of these platforms DTT is not operational in India hence only remaining three

platforms were studied.

The cable TV networks (amendment) bill made the introduction of addressable

system mandatory. The salient features of the bill are,

CABLE TV NETWORKS (AMENDMENT) BILL 2002

SALIENT FEATURES:

a. Introduction of addressable system to be mandatory.

b. Pay channels to be delivered only to addressable systems & all FTA

channels to be delivered as a part of basic package.

c. Govt. to specify rate & min. no of channels for basic package.

d. Monthly reporting by cable operators on subscriber.

e. A period of 6 months for operator to introduce CAS.

32

CONDITIONAL ACCESS SYSTEM

a. Conditional Access System was to be implemented in the four metros of

the nation on 14th July 2003, which in some cases was extended to 1st

September 2003, but somehow things didn’t move as smooth as those who

wanted it.

b. Jan 2007, CAS got implemented in the Zone-1 areas of Mumbai, Delhi &

Kolkatta.

c. Chennai was only city with CAS implemented.

WHY CAS?

a. With the introduction of CAS and Set Top Boxes, customers can choose

the programming they watch and pay based on actual viewer ship.

b. It will result in 100% declaration of subscribers as compared to previous

5-6% declaration, to ensure that broadcasters as well as govt. will get its

complete revenue.

33

SWOT ANALYSIS OF CAS

STRENGTH:

• Payment based on viewer ship.

• Transparent system will assure more

revenue to govt.

• Minimum tariff.

• Strong n/w in urban areas.

OPPORTUNITY:

• Production houses can develop competencies in

specific type of programmes.

• CAS manufacturer can expand business.

• Focused ads. can reach right audience.

WEAKNESS:

• Lack of awareness.

• Cost of switching is expensive.

• Can’t reach remote areas.

THREATS:

• DTH.

• Cost of STB.

• Due to drop in adds subscription charges may

hike.

The TRAI had appointed a committee to study the CAS implementation in zone 1

area. The committee in its report had recommended the implementation of CAS in

phases. The phase 1 of implementation will be started from 1st Oct 2008.The selected

cities and criterion for selection of the cities are mentioned below

34

SELECTION CRITERIA OF CITIES TO BE IMPLEMENTED BY CAS

a. Proximity of the cities to existing cities, which will make it easier for

ESP's to implement CAS in these cities.

b. C&S household size, larger cities to be digitized first as PSP is in those

cities to be better equipped and prepared both logistically and

financially it will also ensure that

-Larger number of subscribers gets to exercise their choice faster

-Greater numbers of STBs deployed in a quicker time span thus

ensuring that the broadcasters are to a certain extent compensated

for regulated prices by larger number of declared points.

c. Phase 1 has higher number of boxes as STBs have already been

deployed in a few of the cities while some of the cities are planning to.

digitalize much ahead of the phase plan

d. It is assumed that each city will have enough PSPs to implement CAS

  on their own or through JVs with ESPs.

35

CAS IMPLEMENTATION DETAILS

DIGITALISATION IN 3 YEARS

DIGITALISATION-TO BE STARTED IN QUARTER COMMENCING 1st OCT,08

SR.

NOCITY/TOWN

TV OWNER

SHIPC&S TV HOMES

QUARTER START

ESTD

PENETRATIO

N OF STBs

ESTD STB

REQUIREMENTQ1(OCT 08-DEC

08)

Q2(JA

N 09-

MAR

O9)

Q3(AP

R 09-

JUNE

09)

Q4(JUL

Y 09-

SEPT

09)

1 BANGALORE 1458000 1393000         40 557000

2 GHAZIABAD 199000 153000         30 46000

3 NAVI MUMBAI 1000000 865000           260000

4 NOIDA 73000 60000         40 24000

5 THANE 1585000 634000           190000

6

AHMEDABAD &

GANDHINAGAR 902000 559000         40 224000

7 FARIDABAD 246000 229000         25 57000

8 GURGAON-urban 43000 28000         40 11000

9 PUNE 947000 517000         40 207000

10 VADODARA 312000 240000         25 60000

11 BHUBANESHWAR 266000 155000         40 62000

12 BURDWAN 250000 160000           90000

13 CHANDIGARH 193000 148000         40 59000

14

HYDRERABAD &

SECUNDERABAD 1235000 1182000         30 355000

15 BHOPAL 292000 184000         40 74000

16 INDORE 286000 181000         35 63000

17 JAIPUR 449000 225000         40 90000

18 KOCHI 291000 230000         20 46000

19 SHIMLA (HP) 44000 30000         30 9000

 

TOTAL IN 1st

YEAR 9622000 6948000           2484000

36

SR.

NOCITY/TOWN

TV

OWNERSH

IP

C&S TV HOMES

QUARTER START

ESTIMATED

PENETRATIO

N OF STBs

ESTIMATED

STB

REQUIREMENT

Q1(OCT

09-DEC 09)

Q2(JAN 10-

MAR 10)

Q3(APR

10-JUNE

10)

Q4(JUL

Y 10-

SEPT

10)

1 DEHRADUN 123000 70000           21000

2

GANGTOK(SIKKI

M) 48000 40000         30 12000

3 LUDHIANA 304000 282000         30 85000

4 NAGPUR 436000 289000         30 87000

5 NASHIK 245000 184000         30 55000

6

DISPUR/

GUWAHATI(ASSA

M) 183000 112000         30 34000

7 KANPUR 457000 286000         30 86000

8 LUCKNOW 418000 260000         30 78000

9 SURAT 625000 471000         30 141000

10 TRIVANDRUM 213000 173000           52000

11

AGARTALA(TRIP

URA) 169000 99000         30 30000

12 AGRA 220000 184000         30 55000

13 COIMBATORE 906000 861000         20 172000

14 GOA-PANAJI 79000 50000           15000

15 PONDICHERRY 207000 180000         30 54000

16

IMPHAL(MANIPU

R) 78000 60000         30 18000

17 RAJKOT 239000 171000         25 43000

18 VIJAYWADA 225000 220000         30 66000

 

TOTAL IN 2nd

YEAR 5175000 3992000           1104000

37

SR.

NO

CITY/TOWN

TV

OWNERSH

IP

C&S TV HOMES

QUARTER START

ESTIMATED

PENETRATIO

N OF STBs

ESTIMATED

STB

REQUIREMENT

Q1(OCT 10-DEC

10)

Q2(JA

N 11-

MAR

11)

Q3(AP

R 11-

JUNE

11)

Q4(JUL

Y 11-

SEPT

11)

1 ALLAHABAD 158000 108000         30 32000

2 ITANAGAR 112000 76000         30 23000

3 MADURAI 282000 269000         30 81000

4 PATNA 281000 193000         30 58000

5 RAIPUR 150000 68000         30 20000

6 VARANASI 149000 78000         30 23000

7 VISAKHAPATNAM 356000 348000         30 104000

8

AIZWAL-

MIZORAM 124000 84000         30 25000

9 AMRITSAR 210000 165000         30 50000

10 DHANBAD 152000 133000         30 40000

11 MEERUT 186000 162000         30 49000

12 RANCHI 142000 79000           24000

13 SHILLONG 152000 99000         30 30000

14 ASANSOL 231000 141000         30 42000

15 JABALPUR 211000 151000         30 45000

16

JAMMU &

SHRINAGAR 150000 88000         30 26000

17 JAMSHEDPUR 202000 153000         30 46000

18 KOHIMA 102000 66000         30 20000

 

TOTAL IN 3rd

YEAR 3350000 2461000           738000

38

SUMMING UP

TV

OWNERS

C&S TV

HOMES

ESTIMATED

STB REQMNT

IN OCT 08’-SEPT 09’ 96,22,000 69,48,000 24,84,000

IN OCT 09’-SEPT 10’ 51,75,000 39,92,000 11,04,000

IN OCT 10’-SEPT 11’ 33,50,000 24,61,000 7,38,000

TOTAL IN 3 YEARS 1,81,47,000 1,34,01,000 43,26,000

GRAPHICAL REPRESENTATION

39

INTERNET PROTOCOL TV

a. It is a system; using Internet Protocol delivers a digital television service over a

network infrastructure, which may include delivery by a broadband connection.

b. A service provider using a closed network infrastructure typically supplies IPTV.

PLAYERS IN IPTV

MTNL

BSNL

DIRECT-TO-HOME

a. Defined as reception of satellite programmes with personal dish in an

individual home.

b. It puts broadcasters directly in touch with consumers.

PLAYERS IN DTH

DISH TV

TATA SKY

DD DIRECT+

40

DISH TV

NSS6 at 95 degrees east Have 7 ku transponders Claims total 160

channels

Dish active services 7 channels   4 radio channels

Movies on demand 5 channels CAM MODULE: CONAX STB MULTIPLE

VENDOR

TATA SKY

INSAT 4A 83 Degrees

east

Have 7 ku transponders Total 103 TV channels

14 interactive channels   10 audio music channels

6 movie on demand

channels

CAM MODULE: NDS STB MULTIPLE VENDOR

41

DD DIRECT +

NSS6 at 95 degrees east Have 5 ku transponders Total 50 TV channels

21 FM radio channels   Is probably the world’s only

FTA DTH platform

NEW PLAYERS IN DTH

RELIANCE BLUEMAGIC

SUN DTH

BHARATI AIRTEL DTH

ABOUT NEW PLAYERS:

Reliance-ADAG's Bluemagic will use Measat-3 satellite and is planning

to launch its DTH service in the last quarter of this year.

Reliance will use Measat's 8 Ku-band transponders.

Reliance's Bluemagic will be using MPEG-4 compression technology,

which will allow it to pack in more channels per transponder.

Bluemagic will be using Nagravision's conditional access solutions and

the STBs will be from multiple vendors

Both Reliance & SUN will be using MPEG-4 compressing format.

42

SWOT ANALYSIS OF DTH

STRENGTH:

• No middleman required.

• Large coverage area, can reach remote

places.

• Good quality of picture & sound.

OPPORTUNITY:

• Equipment manufactures can expand

their business.

WEAKNESS:

• Signals are lost during heavy rains &

storms.

THREATS:

• CAS in urban areas.

• Terrestrial doordarshan.

• Cost of STB.

GROWTH IN TV HOUSES

a. With an increase in upper middle class population demand for multiple TV

per house hold is expected to increase, replacement demand is expected to

increase with shortened replacement cycles, which can be attributed to

availability of newer model.

b. This demand is further projected to grow based on the increasing no. of

families entering the high income bracket.

43

STBs PRODUCTION (IN MILLION UNITS)

44

In 2007 the production of STBs is around 3.7 million units. Jabil produces around

1.2million STBs at its Ranjangaon factory. Flextronics produces around 2.5 million

STBs. In 2008 type II of Flextronics is expected to start with volume of around 1.7

million units. From 2008 a consistent 10% Y-O-Y growth is assumed.

PENETRATION PLAN

The BoM was analyzed and classified into active and passive components. The passive

components were Resistors, Capacitors and Inductors. The active components were

Diodes, Transistors, and Opto-components. The products, which were manufactured and

sold by company, were only considered in analysis. The BoMs of three models Thomson,

Flextronics Type I, Flextronics Type II were taken into consideration. The average selling

price of components were used and were assumed to remain constant. The BoM per STB

was found and was exploded on market size and market share was found out. Assuming

20%market share the opportunities for VISHAY were found out.

45

PENETRATION PLAN 2007

46

PENETRATION PLAN 2008

47

PENETRATION PLAN 2009

48

PENETRATION PLAN 2010

49

PENETRATION PLAN 2011

50

6. FINDINGS

OPPORTUNITIES FOR VISHAY

Assuming 20% market share opportunity

for VISHAY will be 3.6 million USD

Assuming 20% market share opportunity

for VISHAY will be 3.9 million USD

The total potential will be

18 million USD

The total potential will be 19.8 million

USD

Assuming 20% market

share opportunity for

VISHAY will be 1.8

million USD

Assuming 20% market

share opportunity for

VISHAY will be 3.0

million USD

Assuming 20% market

share opportunity for

VISHAY will be 3.2

million USD

The total potential will be

9.5 million USD

The total potential will be

15.2 million USD

The total potential will be

16.7 million USD

51

52

7. CONCLUSION

The STB industry is expected to offer a consistent business of around 3 million

USD/annum to VISHAY. Due to increase in youth employees the market for STB

is expected to grow. As implementation of CAS in other 55 cities the requirement

for STB would be 43,26,000 units. Taking just 10% Y-O-Y growth we conclude

that there is consistent business of 3 Mn USD.

53

8. RECOMENDATIONS

VISHAY is doing business of around 30 million USD in India. To achieve 10% Y-O-Y

growth it needs to find a platform that will offer it the business of around 3 million USD.

From this survey it is found that STB industry can give this expected business. The STB

industry is expected to offer this business. Hence VISHAY should use its direct

marketing resources in the STB industry.

54

9. BIBLIOGRAPHY

Websites:

www.scatmag.com

www.tatasky.com

www.dishtv.com

www.efy.com

www.vishay.com

Reference:

Marketing management-Philip Kotler and Kevin Lane Keller

Marketing Management-Rajan Saxsena

Research Methodology-C R Kothari

Magazines:

Electronic For You

Scatmag Magazine

55

10. Appendices

56