CONSUMER BEHAVIOUR ANALYSIS

VIDEOCON T.V/L.C.D/L.E.D

SEGEMENT(DELHI/N.C.R REGION)

Problem Statement

• The principle cause behind this project is to know that to what level customers are enjoying and aware of Videocon TV offered by the company and what further improvement can be done in future in this area so as to get brand awareness.

STUDY OF THE INDUSTRY

• Before the liberalization, only a few companies like Kelvinator, Godrej and Voltas were the major players in the consumer durables market, accounting for 90% of the market share.

• Then, after the liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo and Aiwa came into the picture.

• Expected growth - 10-15% in 2012-2013

• Consumer durables Sector can be classified as follows: 1. Consumer Electronics-Includes VCD/DVD, home theatre, music players,

color televisions (CTVs), cameras, portable audio, Hi-Fi, etc.2. White Goods-includes dishwashers, air conditioners, water heaters, washing machines,

refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances, microwaves, built-in appliances, tumble dryer, personal care products, etc.

3. Molded Luggage-includes plastics.4. Clocks and Watches 5. Mobile Phone

CURRENT SCENARIO• consumer durables market in India is valued at US $ 6.5 billion currently• On the brick of rapid economic growth, India has witnessed the dynamic

change in country's consumer electronics industry. In last few years the industry has been witnessing significant changes in retail boom, growing disposable income and availability of easy finance schemes.

• Looking at the present scenario, over the last couple of years, the LCD prices have even dropped by around 30 per cent annually.

Important factors are: increasing awareness of the advantages of LCD televisions, the growing availability of the product across dealer counters and the Finance schemes in the market.

Easy availability of low-cost skilled labor and the emergence of SEZs.• Today, India is one of the few emerging countries to have an excellent

component supply base in terms of manufacturing facilities for glass and color picture tubes

STUDY OF THE COMPANY

• Introduction In1 984, Nandlal Madhavlal Dhoot (N.M.Dhoot), together with his three sons - Venugopal, Rajkumar and Pradeep - founded VI in technical collaboration with the Japan-based Toshiba Corporation .

• The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in every sphere of its activities from a conference room sized assembly line in 1979.

• Videocon VCR Ltd. in collaboration from Toshiba Japan • Videocon has tied up with Dolby Laboratories, USA, for use of Dolby

Technology • It collaborate with Samsung of Korea for manufacturing glass shells • It has tied up plans with Akai to jointly flat new company to market the

Akai range of products • It had entered into a joint venture with Necchi group of Italy

History of Videocon

• 1984 Dhoot family launched Videocon International Limited • In 1987, VI started manufacturing of B&W and color televisions Within a

decade, Videocon emerged as India’s leading brand of Colour Televisions • In 1989, the company launched home entertainment systems and air

conditioners • In 1995, the company introduced refrigerators and coolers • in the mid-1990s, VI manufacture CRT glass shells at Gujarat• 1996 kitchen appliances and crude oil• 1998 compressor and compressor motor• 2000 Philips color tv plant take over• 2005 Ectrolux India- three plant takeover and thompson CPT

Objective

• 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

VIDEOCONT.V/L.C.D/L.E.D

There are 5 categories TV’s under Videocon –• LED TV ( ELENA,PERSISTENCE,ORION,RAZOR)

• LCD TV (Magnum, Sapphire, Pearl, Cyclone, Prestige, Envira)

• ULTRA SLIM• FLAT TV• CONVENTIONAL TV

RESEARCH METHODOLOGY

• Research Type-Descriptive Research• Data Type-Primary and Secondary data• Research Tools-Questionnaire Observation Enquiry• Sampling Units-customer/Dealers/ Retailers• Sample Size-Customer (100)/Dealers/ Retailers (50)• Sampling Method-Random Sampling Method• Sample drawn from-DELHI/NCRThe data collection was done through1. Secondary Data Analysis2. Survey• Sampling TechniquesIn the survey conducted, the sample was random in nature comprising

of people from different age groups and income strata's.

Demographic profile Gender profile

Male 28% Female 72%

INCOME DISTRIBUTION•income level of the customer will help the company to modify the products according the buying capability of the customer•the most of the consumer income is below Rs10000,so they prefer only less costly television•all income level people available in this segment so company need a good product range.

OCCUPATION DISTRIBUTION• This diagram show that most of the people occupation is private service.• By knowing occupation distribution clearly the company can segment and target customer according to their occupation.

Why Videocon, SAMSUNG or LG?(Given in percentage form)

• 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 .

• LG & Samsung are strong brand and having more quality than Videocon. Also, LG & Samsung products are more expensive than Videocon.

From where you prefer buying consumer durables(%)• A majority of customers prefer to buy from co.shoppee.• 40% customers are prefer to by from the showrooms because the showrooms are more convenient to customers• 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.

WHY YOU PREFER TO BUY SAME AS PREVIOUS (BECAUSE OF VARIOUS REASON’S)• . Customers buy from showrooms because of the service and convenience• Customer also thinks that there is more chance to bargain and they can get more discounts in these showrooms• Customers are preferred to buy from the showroom because of they think that these convenient store may provide good after sell service.

Do you prefer any financial scheme to purchase consumer durable?

• Majority of the consumer do not want to go for financial scheme.• But still , 16% consumer is not a small amount, there is only TV. few company which provide financial scheme

Would you wait for festive season for available discounts for purchase a Television?

By this we can infer some customer prefer to buy t.v. on some festival. North India is more believe in festival

Up to how much money are you willing to spend on a t.v? at this time:

• Most of customers are 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 want to spend a big amount of money on TV. these customer don’t care money because of high income so company also need to work on R&D, so company can provide a different product

How do you feel after using the Videocon TV?

There is 19% customer who not satisfies with product and feels poor about the T.v.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.

FINDING  AND  RECOMMENDATIONS 

Dealer survey Findings• There was big problem of after sale service because there is no follow up

calls from VIDEOCON.• Demo calls also not done properly.• Sales promotion scheme are NOT sufficient.• Price range preferred by consumer is generally in between 7000 to

13000.• Dealers are not satisfied with the incentive provided by the company.• There is high growth of sale in market due to booming in new technology

and better service.• Marketing growing so that is good sign for company in coming year.• Consumers are mostly gets attracted by the price discount offered by

company and product warranty.

RECOMMENDATIONS AND SUGGESTIONS (DEALER’S)

• VIDEOCON should improve it’s after sale service because its hits badly VIDEOCONs market share.

• More detailed customaries service is to be provided.• The training to in shop demonstration should be given at frequent time interval and

feedback should be considered positively.• The company should look into the matter of person hiring for in shop demonstration. A big

VIDEOCON showroom should have at least 2 such kind of person.• The marketing managers should make better relations with dealers and reputation of the

company.• Customer considers quality as their first preference, so the company should give more stress

on this.• The switching of customer from VIDEOCON product to other brand is due to the bad after sell

service in shop.• 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.

• The quality of Videocon CTV is acceptable to the market. Consumer and retailer both are satisfied with the quality of Videocon CTV.

CUSTOMER SURVEY FINDINGS

• Secondary supports play an important role in the customers mind and create awareness among the customers. The secondary support includes Demonstration, Exhibition & Even Sponsors.

• They want to buy from the showrooms or from co. showrooms. For them service is important.

• 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.

• In survey we found that VIDEOCON has captured maximum market share in every category. VIDEOCON dominates CTV, LCD, and Refrigerator, and Washing machine category.

• The categories of the people who are using the CTV are mostly economic income people. LG and Samsung are competitors of Videocon CTV .

• 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 for creating awareness.

• 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.

• Branding and promotions should be done effectively as it creates a long lasting image in the mind of customers

SWOT Analysis

Strengths• Videocon has largest distributed capacity manufacturing base

across India with 17 facilities and plant in china, Poland, Italy, Mexico.

• Manufacturing capacity is 1, 40000 units.• Tie up with the Matsushita electric company of Japan add to

the goodwill of Videocon• Customers are aware about Videocon’s products. Company

has good brand name.• 3rd largest picture tube manufacture in India• Cheap price.

SWOT Analysis

Weaknesses• Less investment on advertisement of

Videocon CTV• Fewer margins to the distributor/dealer.• Weak promotional strategy of CTV.• Not providing good service.• No exclusive show rooms

SWOT Analysis

Opportunities• Videocon takes over the Electrolux.• Videocon buy Thomson color picture tube manufacturing

plant.• Price has come down; now more and more people are going

for it.

Threats• Brand loyalty is more of LG & other company.• Competitor has a new innovative substitute product or

service.

LEARNING EXPERIENCE• During the project training in the market, I understand how it

works practically from start point to end point. Before that I have only theoretically idea of marketing management.

• I have also learnt how corporate world functions and the importance of discipline in your work life.

• My mentor supported me in gaining sufficient knowledge about the company and industry this help me complete the project successfully.

• I have learned about the Videocon products esp. Television which are sales in India

• The training was informative & educative. It was a practically exposure to me. Observe different strategies adopted by company and its competitors.(Low price, quick delivery, good service.

THANK YOUMADE BY- ABHISHEK TRIPATHY