A

PROJECT STUDY REPORT

“A STUDY ON BRAND AWARENESS OF VIDEOCON”

Submitted By: Under Guidance of:

BHAGYASHREE DOSI ASHISH DAVE

BBM III year

1

DECLARATION

I am Bhagyashree dosi students of BBM III from ARAVALI MAHAVIDHALAYA, BANSWARA hereby declare that I have completed term end project on “Videocon” as part of the course requirement.

I further declare that the information presented in this project is true and original to the best of my knowledge.

NAME: BHAGYASHREE DOSI

Place: BANSWARA

2

Table of ContentSr. No. Particulars Page

No.

1 Declaration 2

2 Certificate 3

3 Acknowledgement 6

4 Industry analysis 7-32

Company profiles

Market overview

Experience change

Important competitor

5 Introduction of company 35-47

Nature of business

History of industry

Videocon strategy

Function department of organization

6 Marketing strategies

Product of company

Segmentation, targeting and positioning

Distribution channels in the industry

Promotion strategies

49-59

3

7 Research methodology 60-73

Objective

Process

Research approach

Research instrument

Research design

Analysis of data with questionnaire

8 Analysis 74-77

9 Finding , recommendation ,suggestion and conclusion 78-81

10 Bibliography 82

11 Questionnaire 83-87

ACKNOWLEDGEMENT ACKNOWLEDGEMENT

4

“No Project is ever a work of only one person and this one is no exception”

This project is the product of many hands, and countless hours from many people. My thanks go out to all those who helped, whether through their comments, feedback or suggestions.

It gives me immense pleasure to express my deep sense of gratitude to Mr. Ashish Dave (Faculty guide) for his valuable guidance, constant supervision and above all her continuous encouragement & support during the tenure of this project.

I am deeply indebted to all the people involved, for providing me with best information and shared their vast knowledge and technical expertise for completing this project.

Sincere thanks to all the people who have worked under this project. Lastly, no words could adequately convey my heartfelt thanks to the family members and friends who indirectly co-operated with us.

BHAGYASHREE DOSIBHAGYASHREE DOSI

5

INDUSTRIAL

ANALYSIS

6

Industry overview

COMPANY’S PROFILE

Today the group operates through 4 key

sectors:

Consumer durables

We enjoy a pre-eminent position in terms of sales and customer satisfaction in

many of our consumer products like Colors Televisions, Washing Machines, Air

Conditioners, Refrigerators, Microwave ovens and many other homes Appliances,

selling them through a Multi-Brand strategy with the largest sales and service

network in India. Refrigerator Manufacturing is further supported by our in house

compressor manufacturing technology in Bangalore

.Thomson CPT

With the Thomson acquisition Videocon has emerged as one of the largest Colour

Picture tube manufacturers in the world operating in Italy, Poland and China,

7

Continuing to lead through new innovative technologies like slim CPT, extra slim

CPT and High Definition 16:9 formats CPT.

1

Colors 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 sector.

8

PORTERS MODEL

In order to understand the industry better, we analyze the industry using Porter’s

Five Force Model-

- Threat to entry

- Rivalry of among existing firms

- Bargaining power of buyers

- Bargaining Power of Suppliers

- Threat of Substitutes

9

Threat to Entry-

Entering the CTV market isn’t very easy. One of the most important

features needed is a good distribution system which isn’t something that can

be developed overnight.

Also a television today is a style statement. Therefore the brand plays an

important role in influencing the purchase decision. For a new company

then entering this market, not having a recognized brand name is a threat to

entry.

Rivalry among existing firms-

There is strong competition among the current players. The main players

being LG, Samsung, Onida, Videocon, Philips, Sansui. Some of the regional

players are- Hyundai and Haier are new entrants in the CTV space in

addition to a number of small regional players.

This increased competition has ensured that advertising costs are an integral

part of the players’ total cost. A lack of product differentiation means that

price is a competitive feature that intensifies rivalry. The highest price

reductions during 2002-03 to 2005-06 were in the 20inch and 21inch CCTV

category.

With the future being in LCDs, this market is likely to see price reductions

future.

10

It is expected that realizations will fall with increased competition.

Bargaining Power of Buyers-

The TV market today is a consumer’s market where the consumer has the

upper hand with him having the power of choosing from a variety if brands.

This bargaining power of the buyer has forced the players to offer credit

facilities on sale, to provide lower EMIs and excellent after-sales service.

The intense dealer competition also benefits the consumer in terms of prices

and offers available.

Inventory carrying costs for television companies are high. This is a boon for

the consumers as it translates into higher bargaining power for the consume

Threat of Substitutes-

For a television, the substitute can only be a functional substitute. The

functional use of a television is to watch programs, live events etc. This

today can also be done on a computer.

Theaters too can be a substitute to watching movies at home.

Today with various multiplexes and theaters providing screenings of live

events such as sports telecasts etc along with the luxury of good food and

the opportunity to enjoy

11

The event with a number of other enthusiasts, the TV can be substituted if

the TV is bought only to watch certain events.

However if the television on considered to be a style statement and a

lifestyle statement, then consumers will

Seek to keep upgrading the type and the model of their television sets.

Bargaining Power of Suppliers-

PCBs (Printed Circuit Boards) & CRTs (Cathode Ray Tube) are key raw

materials in the production of CTVs.

India’s No.1 Consumer Electronics & Home Appliances Company. It is also

the third largest picture tube manufacturer in the world.

The largest panel production facility in the world under one roof providing

very high economies of scale

One of the world's largest and most respected CRT glass manufacturers

Firing the largest furnace of its kind in the world with a tank size of 3300 sq

ft

One of the few companies in the world to convert sand to TV

One of the largest and most acknowledged CPT manufacturer in the world

Manufactured India's first rust-free Washing Machine

12

CRT accounts for 46-48 per cent of the total raw material costs of a CTV.

PCBs and housing components account for 33-39 per cent of total raw

material costs.

Domestic CPTs prices tend to follow Global price trends. Therefore the

suppliers do not have much of bargaining power in this regard.

Cabinets are sourced from plastic manufacturers and as these manufacturers

supply to different industry, therefore do have a bargaining power,

especially in comparison to CRT suppliers.

MAREKET OVERVIEW

The global electronics industry is growing rapidly. From an estimated size of

US$950 billion in 2005, it is estimated to grow to nearly US$2,100 billion by

2010. The market is dominated by Asian countries such as China, Taiwan,

Singapore and South Korea. The industry is characterized by rapid innovation and

speed to market, short product life cycle, highly automated manufacturing to give

consistent quality at low cost, high volume production, continuous improvement in

capabilities for reducing costs and profit accrual through volumes. India's

electronics industry is nascent by global standards. Despite a population of over

one billion, India has a relatively small electronics market. It is ranked twenty-

sixth worldwide in terms of sales and twenty-ninth in terms of production. The

total size of the industry in 2004-05 was US$11 billion.

13

INDIA’S CONSUMER MARKET

India’s consumer market is riding the crest of the country’s economic boom.

Driven by a young population with access to disposable incomes and easy finance

options, the consumer market has been throwing up staggering figures.

India officially classifies its population in five groups, based on annual household

income (based on year 1995-96 indices). These groups are: Lower Income; three

subgroups of Middle Income; and Higher Income. However, the rupee income

classifications by themselves do not present a realistic picture of market potential

for a foreign business enterprise, because of significant differences in purchase

power parities of various currencies. In fact, the Indian rupee has a very high

purchase power parity compared to its international exchange value. For instance,

while the exchange rate of one US dollar is 48.50i Rupees, the domestic

purchasing power of a US dollar in the US is closer to the purchasing power of Rs

6 in India, for equivalent needs and services. As a result, India ranks fifth in the

world, on purchase power parity terms, despite being having low per capita

national income (US$ 340 per capita).

CONSUMER CLASSES

Even discounting the purchase power parity factor, income classifications do not

serve as an effective indicator of ownership and consumption trends in the

14

economy. Accordingly, the National Council for Applied Economic Research

(NCAER), India’s premier economic research institution, has released an

alternative classification system based on consumption indicators, which is more

relevant for ascertaining consumption patterns of various classes of goods.

There are five classes of consumer households, ranging from the destitute to the

highly affluent, which differ considerably in their

Consumption behavior and ownership patterns across various categories of goods.

These classes exist in urban as well as rural Households both, and consumption

trends may differ significantly between similar income households in urban and

rural areas.

CURRENT SCENARIO OF INDUSTRY

The consumer durables market in India is valued at US $ 4.5 billion currently.

In2008, microwave ovens and air conditioners registered a growth of about 25%.

Frost free refrigerators have registered significant growth as many urban families

15

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 colour televisions (CTVs) is expected to increase 3 times by

2008.

16

On the brick of rapid economic growth, India has witnessed the dynamic change in

country's consumer electronics industry. 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.

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 labour 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.

17

Today, India is one of the few emerging countries to have an excellent component

supply base in terms of manufacturing facilities for glass and colour picture tubes,

so it helps it a good choice for all those companies who are looking to take benefit

of this emerging market.

EVOLUTION OF VIDEOCON

18

2000: Acquisition of Philips color TV plant

In 2000 Videocon acquired the Philips Color TV plant.

2005: Acquisition of Thomson and Electrolux

Videocon through its Wholly Owned Offshore Subsidiary acquired the Color

Picture Tube (CPT) businesses from Thomson S.A having manufacturing facilities

in Poland, Italy, Mexico and China along with support research and development

facilities.Videocon group on took over Swedish giant Electrolux AB’s 91.85 per

cent equity in its Indian subsidiary Electrolux Kelvinator. Electrolux delineator has

manufacturing facilities at Shahjanpur, Warroad and Beriberi for manufacturing of

refrigerators, and washing machines and employs over 1,200 people.

2009: Venture into Telecom

It is the India’s thirteenth mobile operator. Currently offering GSM mobile service

and providing service in Tamil Nadu, Punjab, Haryana, Mumbai, Gujarat, Kerala,

Madhya Pradesh and Videocon has also launched wide range of mobile handsets

all over the country.

2010: D2H

DTH is a direct to home a digital satellite service that provides television services

direct to subscribers anywhere in the country. It was launched on 1 st may 2009. It

came with a very good strategy for selling both of its electronics products like

TVs’ DVDs’ along with the new set top box. Here only his antenna is enough, it

came also with a DVD connected to TV which gives the best quality of output.

19

VIDEOCON LONG TERM & SHORT TERM STRATEGY

MULTI BRAND SHOPPING CART

• Over the years Videocon’s tactic was to buy distraught over the world and

revive them by making low and elsewhere.

• Consumers depending on their annual income will switch onto different

brands from time to time.

• VIL’s study reveals that spotlight on one brand will not cater to different

segments of the market.VIL thus serves a range of products through its multi

brand shopping cart.

• VIL’s multi-product plan has assisted company to achieve a place at top of

the podium with 30% market share.

• VIL is triumphant in churning loss making brands to productive integrating

them with its existing manufacturing plants.

• VIL is the only domestic company to survive successfully due to its

diversified product portfolio.

20

THOMSON VIDEOCON DEAL

VIL is only one of its kinds in the world to convert sand to TV.

VIL has led to discovery of world famous technologies like Super Flat CPT,

Slim CPT, Extra Slim CPT & HD 16:9 format CPT.

VIL had bought debt free Thomson’s CPT division. Clientele includes TTE,

Sanyo, Sharp, JVC, Koneke, Skyworth, Book, Vestal, and TTE &

Horizontal.

VIL had access to Thomson’s R&D facilities which facilitated up gradation

of technology.

VIL further strengthen its position by selling new high tech products in

domestic as well as overseas market.

Globally, prices of CPT are on lower side due to intense competition.

However, raw material prices are not decreasing in synergy products.

VIL’s integration of glass shell unit with Thomson CPT enabled it to enjoy

cost benefit in terms of production cost & it will also reduce throughput

time.

21

VIL’s strategic partners Thomson & Electrolux both acquired 15% & 5%

stake respectively in VIL showing signs of faith in top drawer of the

company.

VIL-Thomson synergy has devised a bunch of strategies for its cost,

production, sales & industry to register them glass shells manufacturer in the

world.

EXPERIENCE CHANGE

A New Brand Identity & Logo

Videocon Group recently underwent a brand identity change. The group

which has been serving the nation for nearly the past 25 years took move in

tunes with the changing global scenario.

Videocon as a brand has always believed in re-inventing and revamping

itself and the rationale behind Videocon's brand evolution comes from its

constant endeavor to listen and respond to the changing market dynamics in

India and overseas.

The focus remains multi-fold while working towards developing the latest

technologies with an emphasis on quality, innovation and value, the firm is

aggressively expanding their service penetration too. The 'V' in the new

Videocon logo is representative of a new identity - an identity that is fresh,

dynamic, & has been provided a life of its own.

22

Videocon's all-new brand identity is the first step to position its Brand

Videocon closer to every customer's heart - in terms of the philosophy

behind products, their value perception, enhanced ownership pride and

class-leading after-sales delight.

Videocon’s Retail Chains in Various Cities

Videocon Group is on a retail drive, and the company's belief in the

'Customer First' mantra has been the motivating factor behind this initiative.

It has introduced its retails chains Videocon Plaza, Dig world and more

recently DigiHome meant for smaller stores.

These outlets have further ensured easy availability & access of the

Videocon group to its customers.

Videocon Plaza is a chain which offers a complete range of the brand

Videocon available across all product categories. Currently, the company

has around 25 such outlets, which are available in all major states and aims

to raise the network of these plazas in the coming months.

On the other hand, Dig world is a multi-brand outlet, showcasing all the

leading brands from the Group namely Videocon, Sansui, Electrolux, Ken

star and Kelvinator under one roof. It boosts of wide range of products in

various categories under all the brands at optimal prices. Videocon group

has around 100 dig worlds.

Dig home are an extension of the Dig world chain, featuring the same

brands. However, it's meant for smaller stores and will house perhaps only

two to three of such brands. A new look & logo has been designed and the

company is set to open around 150 Dig home stores nationwide.

23

This move of the company has further proven its commitment to its

customers by being available for them all around.

SERVICE DRIVE

Service is the most important aspect for any business to drive and sustain

itself successfully and Videocon is one such company who is adamant on

providing the best of services to its customers.

A drive has begun and Videocon Group has pledged to make its services at

par with international norms and put customer requirements to fore. The

Group opened 'Model Service Centers' in all branches which would set

benchmark of customer service in the consumer durable industry.

The first such centre was inaugurated in Gorgon and around 20 more towns

are recognized in the major cities of the country, namely Kanpur,jaipur,

Luck now, Ludhiana in North, Chennai, Hyderabad, Bangalore Coimbatore,

Cochin in South; Mumbai, Ahmadabad, Pune, Surat and Nagpur in the west;

Kolkata, Patna, Alanson, Guwahati and Jamshedpur in the East region.

EFFICIENT PROCESS

A single toll free number has been introduced and the company has

adopted a unique 2-2-2 service approach, wherein the group pledges to

attend, sort problems and replace defective products. The aim is towards

providing quick response, immediate registration of query, attending &

trying to sort the problem within 2 days

24

A fleet of service vans has also been designed to meet the requirements of

the customers pan India. Videocon has currently around 120 such vans,

which are equipped with tools, equipment, inverter and even spare parts to

provide uninterrupted support & supply even in upcountry locations.

Free Service Camps are organized on a regular basis across the country.

These camps facilitate a better understanding by the company on the

problems faced by the consumers and readily offer them a solution.

Other than providing free service, special offers are also given to customers

like exchange of an old model with a newer version at nominal prices, no

labour charges, discounts on genuine parts & accessories and Annual

Maintenance contract.

The company has also set up a Training Academy for enhancing the

technical & soft skills of its ASC engineers. A spare part hub has also been

opened in the north, to meet the regional requirements and more such outlets

are on the list.

It's a commitment with the Group, to provide its customers with an efficient

after-sales service, thus, ensuring a hassle-free and enjoyable product

experience.

25

EFFECTIVE PROMOTIONAL STRATEGIES

SPECIAL OFFERS

FIFA World Cup Mania Grips Videocon-they lined up to bring a world-

class experience into their living rooms by availing Videocon's 'Striker

Offer'.

Double Bonanza, Double Mazaa- 'Paisa Vasool', as the name rightly

suggests, provided a never before opportunity to own a world class

Videocon Satellite LCD that combines the twin benefits of free Videocon

d2h services for 2 years

26

(24 months) worth Rs.9000 plus a money back scheme. Under the scheme,

customers got the chance to enjoy benefits worth Rs 20,000 on the purchase

of Videocon Satellite LCD worth Rs 25,990.

EFFICIENT ADVERTISING

Videocon’s Women Connect- Videocon's revolutionary new range of

washing machine which have been designed entirely keeping in mind the

convenience factor of a end customer, has already started creating ripples in

the industry. The company with its customer centric approach has hired

special Female promoters, which are dedicated only to promote the sale of

washing machines.

IN SYNC WITH THE LATEST TECNOLOGY

Videocon continuously launched new product in each product line to gain,

maintain and retain its customers. This year Videocon launched tilt drum

washing machine, it is Indian first model with tilt drum. Windows enabled

mobile phone by which Videocon enter the smart phones market. VIL even

launched 3D television sets.

27

ENVIRONMENTAL SCANNING

PEST ANALYSIS

1. Political Factors

Labour unions effects a lot the production

Resolution to reduce emission of carbon footprints in the atmosphere

Anti-dumping duty on imported colour picture tubes

2 . Economical Factors

Growth of retail sector ± expected to reach 16% by 2011-12from 4% in

2007

High investments are needed in the consumer durables

Emergence of organized retail market with large players like Croma,

Next, Reliance Digital - leading to lower prices and higher varieties

28

3 . Social Factors:

Changing perception of luxury to necessity

In rural areas there is poor infrastructural facilities like availability of

electricity

Demand of the consumer durables is seasonal and cyclic

Highly growing consumer durable market

4 . Technological Factors:

Improved electricity consumption

Higher quality products

Technological is changing at a very fast rate

Important Competitors

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

29

Initially the strategy of Samsung in India was to create premium image by

emphasizing 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 unsaved segments, like Sansui- to flank the

flagship brand Videocon in the low to mid priced segment, essentially to fight

against brands like BPL, Philips, and Onida and taken over Akai- tail end brand for

30

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 indigenization. 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 cannibalization 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 analyzed to determine the extent of rivalry between the

existing Players.

31

INTRODUCTION

OF COMPANY

32

INTRODUCTION OF COMPANY

Videocon is an industrial Conglomerate with interests all over the world and based

in India. The Group has 17 manufacturing sites in India and plants in China,

Poland, Italy, and Mexico. It is also the third largest picture tube manufacturer in

the world. The Videocon group has an annual turnover of US$ 4.1 billion, making

it one of the largest consumer electronic and home appliance companies in India.

Videocon was founded in 1987 by Nandlal Madhavlal Dhoot. At that time it used

to manufacture TV and Washing Machine. In 1989-90, Videocon started

manufacturing Home Entertainment Systems, Electric Motors & AC. Videocon

entered Refrigerators and coolers segment in 1991. In 1995, Videocon started

manufacturing Glass shells for CRT and in 1996 it ventured into Kitchen

appliances and crude oil segment. In 1998, Videocon started manufacturing

Compressors & Compressor Motors. In the year 2000, Videocon took over Philips

Colour TV Plant. In 2005, Videocon took over 3 plants of Electrolux India and

acquired Thomson CPT. Today; it has evolved into a giant conglomerate with

annual revenues of over U$4.1 billion.

33

NATURE OF BUSINESS

Manufacturer & Exporter of Conventional Color TV and LCD TV Receiver Sets,

D2h Set Top Box, VCD/MP3 Players, Air Coolers, Music Systems, Air

conditioners, Home Theaters like Refrigerators, Automatic & Semi Automatic

Washing Machines, Dish Washers, Microwave Ovens, Mixer, Grinders and Water

Purifier like TV, DVD/MP3 & Audio Components, Glass Shells for Colour Picture

Tubes, Populated pubs’, Tuners, Monitors for Computer, Compressors and other

Electronic Assemblies and Sub-Assemblies like Digital Diaries, Kiddy PC, Data

Projector, Power Inverter, Digital MP3 Player and Palm Top like ISP, Content and

Web Solutions. Crude Oil Extraction 50000 Barrels per Day.1050MW Power

Generation. Videocon LCD TV, Videocon Air Conditioners, Videocon

Refrigerators Videocon Washing Machine

Industry PROFILE

34

Consumer Electronics, Home Appliances

We enjoy a pre-eminent position in terms of sales and customer satisfaction in

many of our consumer products like Color Televisions, Washing Machines, Air

Conditioners, Refrigerators, Microwave ovens and many other homes Appliances,

selling them through a Multi-Brand strategy with the largest sales and service

network in India. Refrigerator Manufacturing is further supported by our in house

compressor manufacturing technology in Bangalore

Telecommunication:

Videocon Telecommunication Ltd has licensed for mobile service operations

across India. It launched its service on 7 marches 2010 in Mumbai.

Mobile phones:

In November 2009 Videocon launched its new line of Mobile Phones.

Display industry and its components

With the Thomson acquisition Videocon has emerged as one of the largest Color

Picture tube manufacturers in the world operating in Italy, Poland and China,

continuing to lead through new innovative technologies like slim CPT, extra slim

CPT and High Definition 16:9 formats CPT.

Color 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.

35

Videocons 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 sector.

HISTORY OF INDUSTRY

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 thousands of colors’ 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 which 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 1997 the ITA agreement was signed at

36

The WTO where India committed itself to total elimination of all customs duties

on IT hardware by 2005. In the subsequent years, a number of companies turned

sick and had to be closed down. At the same time companies like Moser Baer,

Samtel Colour, Celetronix etc. have made a mark globally.

ACHIEVEMENTS OF VIDEOCON INDUSTRIES LTD

(“VIL”)

India’s No.1 Consumer Electronics & Home Appliances Company. It is also

the third largest picture tube manufacturer in the world.

The largest panel production facility in the world under one roof providing

very high economies of scale

One of the world's largest and most respected CRT glass manufacturers

Firing the largest furnace of its kind in the world with a tank size of 3300 sq

ft

One of the few companies in the world to convert sand to TV

One of the largest and most acknowledged CPT manufacturer in the world

Manufactured India's first rust-free Washing Machine

37

Organizational structure of Videocon

38

Production structure

Cost cutting – Videocon was better positioned to shift the activities to low-cost

locations and also it could integrate the operations with the glass panel facility in

India with the CPT manufacturing facilities acquired from Thomson S.A.

Videocon wanted to leverage its position in the existing parts of the business and

this acquisition would give it a strong negotiation position and could reduce impact

of glass pricing volatility. Videocon could also reduce the costs by upgrading and

improving the existing production lines.

Vertical Integration – The acquisition helped Videocon in vertically integrating its

existing glass-shell business where it had been enjoying substantially high margins.

[8] Videocon’s glass division had the largest glass shell plant in a single location.

This gave the company an unrivalled advantage in terms of economies of scale and

a leadership position in the glass shell industry. The acquisition also gave

Videocon a ready-market for its glass business and it was part of Videocon’s long-

Term strategy to have a global vertically-integrated manufacturing facility.

Rationalization of Product Profile – Videocon modified its product profile to cater

to the changing market needs like moving away from very large size picture tubes

to smaller ones. Apart from the overall strategy Videocon also had a plan on the

technological front. It wanted to improve the setup for the production line and line

speed post-merger. Its focus was to increase sales while reducing the costs and

thereby improving the productivity of the existing line. The company also wanted

to foray in a big way into LCD panel’s back-end assembly. On the sales front the

company wanted to leverage on the existing clients of Thomson and build relation

as a preferred supplier to maximize sales. Also, Videocon could benefit from OEM

39

CTV business with the help of Videocon’s CTV division, invest for new models

and introduction of new technologies.

Videocon has not been able to turn the plant around in Italy still. However it is

getting support from the local governments (which want to prevent job cuts) in

form of grants. The government is in fact trying to set up a Greenfield venture in

form of a LCD Manufacturing facility in partnership with Videocon. The banks are

also supporting Videocon and with help from all these quarters Videocon expects

to turn around the plant in Italy.[13] The Thomson plant has not turned around in

Mexico as well and in fact production has been reduced over there.InPoland,the

situation is more promising and Videocon hopes that plant over there will get in

black in the very near future.[14] However the surprise has been in the Chinese

market .Despite facing a highly competitive market Videocon has managed to turn

a plant around while the other is on its way. In China Videocon is adopting a

different strategy for manufacturing CTVs as the local players dominate the market

.It plans to supply these players by taking advantage of low-cost nature of

mainland(the number targeted by it about 6 million CPT,s)

VIDEOCON STRATEGIES

Multi-brand strategy

Videocon International was the first Indian company to adopt the strategy of multi-

brands. Apart from its mid-priced brand Videocon, the company now hawks

Toshiba, a premium brand, and the low-priced brands Akai and Sansui. The multi

branding technology paid off as Videocon managed to hold on to a combined

market share of around 19.6 percent, with LG at 25.9 percent and Samsung at

around 13.8 percent. Overall, the shift in the power to trade is probably one of the

40

defining developments. It is important since the TV companies themselves have

taken it seriously and embarked on crafting longer-term strategies to accommodate

This development. The effectiveness of their strategy and the responses of the

other players promise to deliver a few more years of enterprising developments in

the Indian TV market.

Backward Integration

Videocon integrated backwards by getting into manufacture of components such as

electron guns, metal parts and deflection yokes for CTVs and compressors, and

electric motors and plastic components for households appliances such as washing

machines, refrigerators and Air conditioners. The group integrated further to get in

to manufacture of glass panels and funnels, the key components for the

manufacture of color picture tubes.“Videocon enjoys a unique synergy in the

global CTV business from glass to CRT (Cathode Ray tubes) to CTVs. - (From

Sand to CTV). Together with other components for households appliances. This

high degree of backward integration bestows upon the company a unique benefit

over competition.

Performance Measures

41

]

FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION:

1. STORE DEPARTMENT :

42

Functions of store department

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.

2. FINANCE DEPARTMENT :

Functions of finance department

43

1. To comply with legal and other requirement.

2. To provide information for stakeholders about financial Performance and viability

3. To provide managers with information for decision-making

4. To provide a structure to business activity based on the careful processing of numerical data

3. MARKETING DEPARTMENT

Functions of marketing department

44

1. The smooth functioning of the marketing, sales and delivery operation.

2. Corrective actions on customer complaints.

3. New initiatives taken for sales maximization of the company

handling relationship with personal, communicating and reporting to the

management.

4. Developing sales programs and formulating and designing sales polices.

4. PRODUCTION DEPARTMENT

45

Functions of production department

1. Production and planning

2.Purchasing

3.Stores

4.Design and technical supports Works

5. Production cycle

46

MARKETING

STRATEGIES

s

47

1.Products of company

CONSUMER ELECTRONIC

PLASMA

SPILT AC

WINDOW AC

48

MOBILE PHONES

WASHING MACHINE

REFRIGERATOR

49

MICROWAVE

HOME THEATER

DISH TV

LCD TELEVISION

50

SEGMENTATION, TARGETING & POSITIONING

SEGMENTATION :

Market segmentation is the process in marketing of dividing a market into distinct

subsets (segments) that behave in the same way or have similar needs. Because

each segment is fairly homogeneous in their needs and attitudes, they are likely to

respond similarly to a given marketing strategy. They are likely to have similar

feelings and ideas about a marketing mix comprised of a given product or service,

sold at a given price, distributed in a certain way and promoted in a certain way.

The process of segmentation is distinct from targeting (choosing which segments

to address) and positioning (designing an appropriate marketing mix for each

segment). The overall intent is to identify groups of similar customers and potential

customers; to prioritize the groups to address; to understand their behavior; and to

respond with appropriate marketing strategies that satisfy the different preferences

of each chosen segment.

Segments based on Income

Plasma: Income group of more than 50,000

LCD: Income bracket of Rs 20,000 and above

Slim: Consumer in the income bracket of Rs 9000-15000

Flat: Consumer in the income bracket of 7000-12000

Conventional: income bracket of Rs 3000-6000

51

Segments based on social class

Plasma: rich class

LCD: upper middle class and rich class

Slim: middle class

Flat: middle and lower middle class

Conventional: lower economic class.

Benefit Segmentation:

Conventional, Flat screen Slim, LCD, and Plasma can also segmented on the basis

of benefits that an end consumer would receive from them.

User Status:

TV market can be classified into non users of TV and potential users in term of

graduating to a higher segment like slim, LCD, Plasma from basic conventional

TV.

TARGETING :

Once the firm has identified its marketing-segment opportunities, it has to decide

how many and which ones to target. Marketers are increasingly combining several

variables in an effort to identify smaller, better-defined target groups.

The decisions involved in targeting strategy include:

* Which segments to target?

* How many products to offer

* Which products to offer in which segments

52

In premium segments like flat screens and FDPs the growth in sales has been many

times the industry growth. More importantly, high end product sales are no longer

restricted to metros. Consumer in tier-2 cities seems to be as evolved in lifestyle

needs. The consumer profile, too, has changed. Higher disposable incomes, greater

aspirations and younger demographic have increased demands for the

technologies. And Videocon is targeting this segment.

POSITIONING:

Positioning has come to mean the process by which marketers try to create an

image or identity in the minds of their target market for its product, brand, or

organization. It is the 'relative competitive comparison' their product occupies in a

given market as perceived by the target market. Once the competitive frame of

reference for positioning has been fixed by defining the customer target market and

nature of competition, marketers can define the appropriate points-of-difference

and points-of parity associations.

Points of Parity (POPs) are associations that are not necessarily unique to the brand

but may in fact be shared with other brands. They represent necessary-but not

necessarily sufficient-conditions for brand choice. Videocon's Points-of-Parity are

good quality Picture and good sound.

Points-of-Difference (PODs) are attributes or benefits consumers strongly

associates with a brand, positively evaluate, and believe that they could not find to

the same extent with a competitive brand. Videocon's POD is the quality product

with low cost. With the strong backward integration Videocon can provide the

products with low cost. Thus, Videocon is positioned itself as a reliable and

value-for-money product

53

DISTRIBUTION CHANNELS IN THE INDUSTRY

The Refrigerator companies in the industry use different distribution channels to

reach the customer. These are as follows:

1.   In this type of channel the company uses its sales representatives to deal with

the dealers directly. The dealers place the order through the sales representatives

who visit them periodically, and the products are delivered directly from the

company. Some companies appoint Direct Dealers who act as their Franchisee

Outlets or their Exclusive showroom.

2.   In this channel of distribution the company appoints distributors on the basis of

District/ Population /No of Dealers to be handled by one distributor. The area of

operation and its potential is also taken into consideration.

Some of the companies make the distributor totally responsible from appointing

the dealers to providing after sales service.

54

3. In this channel of distribution the company appoints Distributors as well as

Direct Dealers. The company appoints distributors to deal with small dealers who

order small quantities. With the dealers who have good potential and sales the

company deals directly. The Korean Multinational follow this channel where they

appoint Distributors for upcountry towns and direct dealers for big cities and major

towns e.g. Ahmadabad.

4.    In this channel the company appoints a C&F agent who acts on behalf of the

company. The C&F agent is totally responsible for appointment of Distributors and

Direct Dealers. He sells to both the Distributors and the Direct Dealers at the same

rates.

 

55

PROMOTION STRATEGIES

1. Product strategy

1. Stop all curved CPT production

2. Shift focus to LCD CTVs; target: by December 2007.

3. Launch Slim21” and focus Slim 29” immediately. Target is to have almost

all CRTs production shifted to Slim by 2007

4. Take full advantage of Digital and HDTV revolution, gain leadership in

HDTV Slim TV segment through OEM and model mix worldwide strategy.

5. Study unique product range / pro large to fill market gaps in markets such as

Asia and Eastern Europe / CIS / South America

6. Focus on reduction of costs through reduction of glass, shift to AK mask and

reduction of process rejection.

2. Sales Strategy

1. Improve relationship with existing clients ; Use of Thomson’s excellent

relations as preferred supplier to maximize sales

2. Improve service and quality without putting pressure on price structure

3. Fetch a better price and avoid crisis of huge stock.

4. Leverage Slim product offering

5. Launch LCD panels assembly to be a major actor of the Flat Panel

Displays market (which is expected to account for 50% of the market by

2012).

6. Benefit from OEM CTV business with the help of Videocon’s CTV

division; invest for new models, introduction of new technologies.

56

7. upgrade to LCD's schemes

Easy EMI.

Re. 1 offer.

8. Improve after sales service

9. Free service camp on the wheels.

3. Industrial Strategy

1. Consider improvement in production lines set-up: investments, line speed up

/ mergers? Target is to increase output and decrease product costs by

increasing productivity of existing lines

2. This will reduce manpower and overheads per picture tube by 30% that will

be redeployed on new activities in the sites (new technologies)

3. Improve the furnace output in the Poland Glass factory by making some

changes into furnaces including electrical boosting. Consider increasing

capacity through one more furnace.

4. t is envisaged that 100m€ will be invested in the next 2 years for this

purpose

5. Expand into LCD panels back-end assembly (from buying LCD arrays from

big suppliers like LG, SDI, CMO, AUO, Sharp)

4. Cost Strategy

1. Leverage the strong base of Videocon’s glass business: Thomson-Videocon

partnership will have a very strong negotiation position and can reduce

impact of glass pricing volatility.

57

2. Reduce production cost by upgrading and improving the production lines.

Thomson-Videocon partnership will have its own base of additional 4

million units CTV (other than India)

3. Necessary to rationalize R & D efforts, necessary to make its cost below

1.5% of sales

Product Development

1. I-TV –at the price of 13,900 with exchange offer for an older version. web

enabled TV

2. TVs With hard disk to store programs.

3. Wall mounted Flat CTVs at the price of 12,990.

4. Aimed at fulfilling needs of customer who can not buy LCDs but prefer to

do away with CTV models which occupy space in living rooms.

5. CTVs with inbuilt set top box

6. Tie up with DTH player and provide annual subscription offer.

7. To provide Direct to home services.

8. Bluetooth enabled CTV.

58

RESEARCH METHODOLOGResearch methodology is a way to systematically solve the research problem. It may be understood as a research to design his methodology for his problem as the same may differ from the problem science of studying how research is done scientifically so it is necessary for the to problem.

OBEJECTIVE

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

59

PROCESS

Formulating research problem

Extensive literature survey

Development of working hypotheses

Preparing the research design

Collection data

Analysis of data

RESEARCH

Research can be defined as scientific and systematic search for information on a specific topic. It is a careful investigation or inquiry through search for new facts of any branch of knowledge.

Research plays an important role in the project work. The results of the project are completely based upon the research of the facts and figure collected through the different ways of research.

DATA SOURCE

60

Research data can be classified as primary and secondary data. Secondary data either internal or external so it is cheaper and more quickly obtain the primary data and may also be available where primary data could not be obtain at all.

1. PRIMARY DATA It is collected with the direct contact with the customers.

2. SCONDARY DATA

It is collected through magazine, internet and some material given by the company.

RESEARCH APPORCH

I have collected information through the direct contact with the customer and fill up the questionnaire so it is a survey approach.

RESEARCH INSTRUMENT

I have survey through questionnaire.

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 success full 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 Ker linger, “Research Designs a

61

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..

Information needed

1. Measurement and scaling Procedures

2.Appropriate Data collection

3.Sampling Process and sample size

4.Data Analysis plan

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

Data Collection

62

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

software’s. 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

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 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.

ANALYSIS OF DATA WITH QUESTIONNAIRE :

Marketing research is the collection and interpretation of facts that helps marketing

manager to get product more popular in the minds of the customer. So firstly a

questionnaire containing 10 questions was prepared and then I conducted the

63

market survey. The field-work of the survey was restricted for the 15 days. All

consumers co- operated and provided the needed information. Knowledge of local

language was advantages in dealing with the consumers. 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.

1. Awareness about Videocon, SAMSUNG & LG by Customers

(Given in percentage form)

64

Inference:- 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 a sprint 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.

65

2. Why Videocon, SAMSUNG or LG?

(Given in percentage form)

66

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

3. from where you prefer buying consumer durables?

Company Shoppe

Showroom

67

Exhibitions

On-line

Inference:

1. A majority of customers prefer to buy from company .Shoppe. Very less

Proposition of customers buys from Online and Exhibitions.

2.49% customers are prefer to buy 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.

4. You prefer to buy from the same as you have mentioned in above quiz. Because of following reasons

68

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

This 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.

69

5. Do you prefer any financial scheme to purchase consumer durable?

Yes

No

Inference

1. Majority of the consumer do not want to go for financial scheme.

2.16% consumer is not a small amount, there is only TV. Few company which

Provide financial scheme

3. If TV. Company easily provide this scheme to consumer so they can attract

More customers.

6. Would you wait for festive season for available discounts for purchase a

Television?

70

Yes

No

Inference

1. By this we can infer some customer prefer to buy TV. on some festival.

2. North India is more believe in festival.

3. On festival company can attract customer by give some type of discount 

7. Up to how much money are you willing to spend on a TV? At this time:

71

a) Less than 6000b) 6000-13000c) 13000-20000d) 20000-30000e) more than 30000

Inference :

By this diagram I can infer than most of customer is see price, if company provide

some good product with more features and style and design it will help in increase

market share. Some customers are wanted to spend a big amount of money on TV.

These customers don’t care money because of high income so company also need

to work on R&D, so company can provide a different product.

8. How do you feel after using the Videocon TV?

72

a) Excellentb) Goodc) Faird) Poor

Inference ;

There is 19% customer who not satisfies with product and feels poor about the TV. Company has to find out all the reason and should work on it. If company don’t attract old customer this will become a big threat for company.

73

ANALYSIS

SWOT ANALYSIS OF VIDEOCON COMPANY

74

1. Strengths

1. Videocon has largest distributed capacity manufacturing base across India with

Facilities and plant in china, Poland, Italy, 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.

2. 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 conflict of interest unless effectively

managed

6.CRT technology is losing popularity.

75

7. Less focus on unconventional channel.

8. Not providing good service.9. No exclusive show rooms

3. Opportunities

1. Videocon takes over the Electrolux.

2. Videocon buys 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 customer’s 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.

4. 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.

76

8. Competition in global CPT market especially from integrated players such as LG-Phillips, Samsung, and Matsushita is intense

FUTURE P LANS

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 Centers 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 floss 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 Poland 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 significantly.

FINDING AND RECOMMENDATION

77

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 purchasingThe 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 importantFor the company to smake 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 importantFor the company to make loyal customers of their brand.

10. Spending on advertisement 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 andRetailer both are satisfied with the quality of Videocon CTV

78

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 Videocon CTV.

15. Consumers are aware about Videocon TV.

16. Customer perception about Videocon TV is good.

17 .Advertising of Videocon CTV is not striking as compare 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

production 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% a 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.

79

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

SEHORE 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

SUGGESTIONS

80

During this report I have studied the various aspect of management its function

& importance & was a totally new experience for me I am grateful to

everybody in “VIDEOCON Ltd.” Before concluding my report I would like to

give some suggestions.

Company should use sales promotion methods like discount, incentives

and various schemes & offerings to increase sales.

There should be customer awareness programmers and customer

education activities so that consumer can avail more services.

Company should start television advertisement.

The company should improve its initial setting quality in comparison to

other brands.

Company should establish competitive price at par with the market.

BIBLOGRAPHY

81

Website:

http://en.wikipedia.org/wiki/Videocon

http://www.videoconworld.com/

http://www.google.co.in/

www.branders.com

www.eventmarketer.com

BOOK

Marketing Research – Nareshs K. Amphora

Business research method- S. N. Murthy

CONSUMER SURVEY QUESTIONNAIRE

82

Dear Sir/Madam,

I am student of Aravali Mahavidhalaya part of our curriculum 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

83

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

84

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) Company

b) .shopped

c) Showroom

d) on-lined

e) Exhibition

7. You prefer to buy from the same as you have mentioned in Q.6 because of

Following reasons?

a) Attractive Price

85

b) Service

c) Demonstrations

d) Offers

e) Convenience

8. Up to how much money are you willing to spend on a TV? 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) No10. 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 TV?

86

a) Excellent

b) Good

c) Fair

d) Poor

13. Any other comments.…………………………………………………………….

...…………………………………Thank you for participating in the survey

87