Consumer Preference Towards the Brand Videocon

8/19/2019 Consumer Preference Towards the Brand Videocon

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INTRODUCITON:

Every business organization that comes into contact with thecustomer develops a perception in the mind of the customer.

Today, in this competitive world every organization needs to knowthe perception in the mind of the customers. In order to gain mindshare or heart share of customers along with the market share isthe main lookout for the organizations. Especially in consumerelectronics sector, where the products are more or less same, theonly way to leave positive impact on customer’s mind and to gaincompetitive advantage is providing best possible services to thecustomers.

Introduction part of this report is classied into two di!erentsections"#

1.Problem Statement:-

The principle cause behind this pro$ect is to know that towhatlevel customers are en$oying and aware of %ideocon T% o!ered&y the company and what further improvement can be done infuture in this area so as to get brand awareness.

2.Objective:-

1. To have an overview of %ideocon.

2. To know the reputation of %ideocon T.%. in the market.

3. 'ow the consumer preference towards the brand %ideocon.

4. The main ob$ective how to increase the reputation of %ideocon

brand in the market.

5. To understand its competitors in business.


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6. 'ow %ideocon will create a good image in the market.

7. To understand the ( )s used by the %ideocon in business

*'+)TE#1

-T/0 2 T'E I3/-T0


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INDUSTRY SCENRIO

&efore the liberalization of the Indian economy, only a fewcompanies like 4elvinator, 5odre$, +llwyn, and %oltas were thema$or players in the consumer durables market, accounting for noless than 678 of the market. Then, after the liberalization, foreignplayers like 95, -ony, -amsung, :hirlpool, /aewoo, +iwa cameinto the picture. Today, these players control the ma$or share of the consumer durables market.

*onsumer durables market is e;pected to grow at 17#1 years. These products are hard goods that cannot be usedup at once.

Con!"mer #"rable! Sector can be cla!!i$e# a!%ollo&!:

1. Con!"mer Electronic!"# It includes %*/?/%/, home theatre,musicplayers, colour televisions @*T%sA, cameras, camcorders, portableaudio, 'i#2i, etc.

2. '(ite )oo#!"#It include dishwashers, air conditioners, waterheaters, washing machines, refrigerators, vacuumcleaners, kitchen appliances, non#kitchen appliances, microwaves,

built#in appliances, tumble dryer, personal care products, etc.

*. +o"l#e# ,"ae"# It includes plastics.

. Cloc/! an# 'atc(e!.

0. +obile P(one!.


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OUT CONSU+ER E,ECTRONICS INDUSTRY

i!tor3 o% con!"mer Electronic! in In#ia:-

The Electronics Industry in India took o! around 16B< with anorientation towards space and defense technologies. This wasrigidly

controlled and initiated by the government. This was followed by/evelopments in consumer electronics mainly with transistorradios,&lack C :hite T%, *alculators and other audio products. *olour

Televisions soon followed. In 16D=#a signicant year in the historyof

Television in India the government allowed thousand of colour T%sets to be imported into the country to coincide with thebroadcast of +sian 5ames in 3ew /elhi. 16D< saw the advent of *omputersand

Telephone E;changes, which were succeeded by /igitalE;changes in 16DD. The period between 16D( and 1667 was thegolden period forElectronics during while the industry witnessed continuous andrapidgrowth.

In recent years the electronic industry is growing at a briskpace.It is currently worth F 17 &illion but according to estimates, hasthe)otential to reach F (7 billion by =717.


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T(e brea/"4 o% 4ro#"ction in vario"! !ement! t(e

in#"!tr3 i! !(o&n belo&:-

1) 16


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In 4re!ent !cenario to4 4la3er %or colo"r televi!ionare:-

1 95 2 %I/E*3 3 -+H-35 4 -30 5 3I/+ 6 )'I99I)-

7 -+3-I 8 &)9

Com4etitor nal3!i!

#etaile# anal3!i! o% !ome o% t(e major 4la3er! i! #onebelo&:-

,) E,ECTRONICS

95 Electronics rightly understood the consumer motivationsto create magnetic products, price them strategically, positionthem sharply and keep making the magnetism more potent.'aving understood the ner di!erences in consumer motivations,it opted for sharp# arrow Jreasons#to#buy’ di!erentiation over theJblanket#all approach’ taken by most of the other players. It is an

aggressive marketer. It focuses on low and medium priceproducts.S+SUN)

Initially the strategy of -amsung in India was to createpremium image by emphasizing global brand. +fter facing sti! competition from another 4orean ma$or# 95, -amsung also startedplaying price game. In =77( it reverted back to its premiumpositioning, although it resulted in some loss of market share. Inline with the 5lobal /igital Initiative of the )arent *ompany,

-amsung India is seeking to acuire digital leadership in India byintroducing its digital ready televisions like the (7K 9*/ )ro$ection

T%, (>K )ro$ection T% and the )lano series of 2lat *olourtelevisions

ONID


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9ike %ideocon, it has also been able to hold its market share. The world#class uality of nida has enabled the company tomake a breakthrough on the e;port front. It has technical tie# up

with the Lapan %ictor *ompany, better known as L%*. -o focusedis nida on positioning itself on the premium, high# tech plankthat it is even planning to push its own envelope on obsolescence,much. The strategy is aimed at further broad basing the producto!ering of the company, which has largely dominated the top#endof the television market, across multiple market segments.

6IDEOCON

%ideocon has always been a price player and has an imageof a low price brand. This includes providing more feature at agiven price. It has taken over multinational brands to cater tounserved segments , -ansui to Mank the Magship brand like &)9,)hilips, nida, and taken over +kai#tail and brands for brands like+iwa.

%ideocon is one of the largest manufacturers of television

and its components in India and thus has advantages of economies of scale and and low cost due to indigenisation. It hasthe widest distribution network in India with more than


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*'+)TE#=

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CO+PNY PRO5I,E

rie% Pro$le:-

The %ideocon group emerges as a -/ =.< &illion globalconglomerate continuing to set trends in every sphere of itsactivities from a conference room sized assembly line in 16G6.


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ISTORY:

Color 7 ' T6

'a!(in +ac(ine

ome EntertainmentS3!tem!

Electric +otor!

C

Re%rierator!

Cooler!

)la!! S(ell! %or CRT

8itc(en 44liance!

Cr"#e oil

Com4re!!or

Com4re!!or +otor!

P(ili4! Color T6 Plant Ta/eOver

%ision C Hission

6i#eocon9! mi!!ion: reection o% contin"it3 an#c(ane.

16DG

16D6#67

1661

166<

166B

166D

=777


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6i#eocon9! mi!!ion e;4re!!ion (a! been cra%te# toenvelo4e bot( e;tant an# emerin realitie!:

“To delight and deliver beyond expectation through ingenious strategy,intrepidEntrepreneurship, improved technology, innovative products, insightful

marketing And inspired thinking about the future.”

5"t"re Plan! o% ction:-

In the coming days company is aiming to acievedevelopment in the following areas trough esearch and/evelopment"#

Hanufacturing of components for consumer Electronicsproduct"#

1A Hultimedia T%.=A )lasma T%.>A 9aunching of 3ew &rands and -ub &rands under %ideocon

umbrella.(A *omposite 'ome Entertainment -ystem with intrnet

adaptability.


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STORE DEPRT+ENT:

2unctions"1. )urchase of all items indented by user functions like spares*onsumables etc., other than plant and euipment.

=. egistration of suppliers and evaluation.

>. Haintenance of -tores.

(. Inventory control of stock items.


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• 'andling relationship with personal, communicating and

reporting to the Hanagement.

• /eveloping sales programs and formulating and designing

sales polices.

)/*TI3 /E)+THE3T

5"nction!:

• )roduction and planning

• )urchasing

• -tores

• /esign and technical supports

• :orks


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*'+)TE#>

-:T +3+90-I-


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-:T +nalysis

Strent(!:-

1. %ideocon has largest distributed capacity manufacturingbase across India with 1G facilities and plant in china, )oland,Italy, He;ico.

=. Hanufacturing capacity is 1, (7777 units.

>. %ideocon has a network of (77 plus service and D< mobileservice vans to give better service to their customers.

(. Tie up with the Hatsushita electric company of Lapan add tothe

5oodwill of %ideocon.

rd largest picture tube manufacture in India

11A *heap price.


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1=A 5lobally acceptance.

:eaknesses"

1. 9ess investment on advertisement of %ideocon *T%

=. 2ewer margins to the distributor?dealer.

>. :eak promotional strategy of *T%.

(. 3o proper approach of target customer.


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opportunity for manufacturers.

B. 5rowing semi urban market.

G. Industry is in increasing phase.

D. )rice has come downO now more and more people are going forit.

6. /ue to nancial facilities even the medium segment is going forit.

17. 2ocused on unconventional channels.

Threats"

1. Entrance of global competitor like china.

=. &rand loyalty is more of 95 Cother company.

>. Harket condition like slumps in market.

(. + new competitor in your home market.


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*'+)TE#( 9E+3I35 EP)EIE3*E


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9E+3I35 EP)EIE3*E

1. /uring the pro$ect training in the market, I understand how itworks practically from start point to end point. &efore that I have only theoritical idea of marketing management.

=. It is great e;perience to see these entire things happen in frontof eyes. It enhances my practical knowledge from one level toanother level.

>. I have also learnt how corporate world functions and theimportance of discipline in the work life.

(. I have learned about the %ideocon products esp. televisionwhich are sold in India

< I have learned about sales procedure of company.


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B. I have learned about the competitors of %ideocon.

G. I became much more condant and the e;perience has helped me to brush my communication skills.

D +part from this entire thing it gives me real picture about supply chain. I visited each department C it is good learn e;perience tome when employees share their e;perience for the organization to achieve the goal.

6. I have learnt that to convince someone what is reuired iscomplete knowledge of a product and how will it benet theclient.

17. The training was informative C educative. It was a practicallye;posure to me.

*'+)TE#


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E-E+*'HET'/950

esearch problem

Problem Statement: The problem of this pro$ect is to know that to what level

customers are en$oying and aware of %ideocon T% o!ered by thecompany and what further improvement can be done in future inthis area so as to get brand awareness. The main ob$ective how toincrease the reputation of %ideocon brand in the market.

3 t(i! 4roject I &ant to Create bran# a&arene!! o%6i#eocon %or t(e %ollo&in rea!on!:

1) %ideocon brand name makes it easier for the seller to process

orders .


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2)%ideocon brand name provides legal protection of uniue

product features.

3) It become well#known brand helps the seller in segmenting the

market.

4) &rand awareness of %ideocon brand gives seller some

protection from competitors and greater control planning.

5) 5ood %ideocon brand awareness helps in building the corporate

image.

6) %ideocon brand awareness gives warranty of uality and

satisfaction in the mind of the customers.

6i#eocon bran# a&arene!! (el4! b"3er! <con!"mer!In %ollo&in &a3!:

1) &rand awareness helps shoppers in moving uickly through

super market or retail store and helps in making uickdecisions.

2) 2or customer the %ideocon brand is Easy to identify and

recognize.

3) It should be distinctive and create a good image in customer

mind.

4) -hould be capable of being registered and protected legally.

5) + deep brand must have &rand Euity.

esearch methodology"

esearch methodology is considered as the nerve of thepro$ect. :ithout a proper well#organized research plan, it isimpossible to complete the pro$ect and reach to any conclusion.

The pro$ect was based on the survey plan. The main ob$ective of


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survey was to collect appropriate data, which :ork as a base fordrawing conclusion and getting result.

esearch design"

esearch design is important primarily because of theincreasedcomple;ity in the market as well as marketing approachesavailable tothe researchers. In fact, it is the key to the evolution of successfulmarketing strategies and programmers. It is an important tool tostudybuyer’s behavior, consumption pattern, brand loyalty, and focusmarketchanges. + research design species the methods and proceduresforconducting a particular study.

T(e!e i!!"e! are a##re!!e# a! t(e %ollo&in:-

◊ esearch Type /escriptive esearch

◊ /ata Type )rimary and -econdary data

◊ esearch Tools Questionnaire

◊ -ampling nits *ustomer?/ealers? etailers

◊ -ample -ize *ustomer @


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-caling Techniues

:e asked the customers to rank the various attributes on ascale of very important, Important and not very important. Tond#out the brand)erception of various brands, paired comparison between them isused.

Questionnaire /esign

Questionnaire design was the critical issue as theuestionnaire reMects the survey purpose .The uestionnaire wasmeticulously preparedby identifying the various variables. The same scale of yes?no andveryimportant, important and not so important was used throughoutso as tomake the respondent comfortable.

2irstly a uestionnaire was prepared and few people weresurveyed. +fter this survey we realized the Maws in theuestionnaire and then a modied uestionnaire was preparedand people were surveyed on this modied uestionnaire.

-ampling Techniues

In the survey conducted, the sample was random in naturecomprising of people from di!erent age groups and income

stratus.

/ata *ollection


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/ata collection is the important step after the sample isselected on which the survey is being conducted. :ith data that isavailable in the hardform we converted that to electronic form, to analyze the data

using the H- E;cel software’s. In the data collection customerswere approached during the working hours at dealers point.

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2I3/I35- +3/ +3+90-I-


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/emographic prole5ender prole

Male 28%

Female 72%


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2+HI90#I3*HE

In%erence:


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1) Income group determines the sector in which a company wants

to foray and be a market leaderO also knowing the income levelof the customer will help the company to modify the productsaccording the buying capability of the customer, which depends

upon the Income level.

2) 'ere I have divided the customers according to Honthly Income

and found that the most of the consumer income is belows17777, so they prefer only less costly television.

3) There is also good amount of people of high income @s.

>


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In%erence:

2rom the above pie charts, it is clear that most of thecustomers @B=8A of %ideocon came to know about %ideocon

through T% advertisement as compare to customers of -amsungand 95. +s far as print media ad is concerned, only few customerscame to know about %ideocon through print media ad as compareto customers of -amsung C 95. &ut no customers of %ideoconcame to know about %ideocon through hoardings and billboards,but few customers came to knowabout -amsung C 95 through hoardings and billboards.

'ence, I can infer that %ideocon is doing positioning through

T% advertisements rather than through print media ad andhoardings and billboards. They should more focus on word tomouth marketing because they are weak in this.

:hy %ideocon, -+H-35 or 95S


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?)iven in 4ercentae %orm>

In%erence:

2rom the above gures, it indicates that people give morepreference to price as compare to other attributes @9ike &rand C

QualityA while buying the %ideocon products. I observe here thatservice is not good at %ideocon

'ence, I can infer that 95 C -amsung are strong brand andhaving more uality than %ideocon @as given in Table and )ie#chartA. +lso, 95 C -amsung products are more e;pensive than%ideocon.


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5rom &(ere c"!tomer! 4re%er b"3in con!"mer#"rable!:

*o#shopper -howroom

E;hibitions

n#line

In%erence:

1. + ma$ority of customers prefer to buy from *o.shopper. %eryless proposition of customers buys from nline and E;hibitions.

=. (68 customers are prefer to by from the showrooms becausethe showrooms are more convenient to customers they also thinkthat these shops give more discounts.


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>. )eople are less interested to buy from the e;hibition they onlyvisit the e;hibition for price uotation of the product and the*omparison of the product.

Do c"!tomer! 4re%er an3 $nancial !c(eme to4"rc(a!e con!"mer #"rable@

0es

3o

In%erence:

1. Ha$ority of the consumer do not want to go for nancialscheme.

=. 1B8 consumer is not a small amount, there is only T.%. fewcompany which provide nancial scheme


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>. If T%. *ompany easily provide this scheme to consumer sothey can attract more customers.

'o"l# C"!tomer &ait %or %e!tive !ea!on %or available#i!co"nt! %or 4"rc(a!e a Televi!ion@

Ye!

No

In%erence:

• &y this Ian infer some customer prefer to buy T%. on somefestival.

• East India is more believe in festival.


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• n festival company can attract customer by give some type

of discount.

U4 to (o& m"c( mone3 are c"!tomer &illin to!4en# on a T6@ t t(i! time:

aA 9ess than B777

bA B777#1>777

cA 1>777#=7777

dA =7777#>7777

eA Hore than >7777

In%erence:


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1. &y this diagram I can infer than most of customer is seeprice, if company provide some good product with morefeatures and style and design it will help in increase market share.

=. -ome customers are wanted to spend a big amount of moneyon T%. these customer don’t care money because of highincome so company also need to work on C/, so companycan provide a di!erent product.

*'+)TE#G

2I3/I35-+3/

E*HHE3/+TI3-


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/ealer survey 2indings

1. &y calculating the display shareI found that in most of store%I/E*3 has =(8 display shared almost all categories.

=. &y the actual monthly sale of particular store I came to knowthe capacity of the store and how much product can they sale.

>. It helps me to know that wheather dealer is capable of being adirect dealer of %I/E*3 or not and it also helps to nd out thenew dealer who are capable of being the dealer of %I/E*3.

(. I also came to know while visiting the shops that there was big

problem of after sale service.

rd rank in Lorhat *T%.

6. )rice range preferred by consumer is generally in betweenG7777 to 1>777.

17. /ealer are not satised with the incentive provided by thecompany.

11. The top competitor of %I/E*3 product in Lorhat is 95 and-+H-35.


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1=. In Lorhat area the performance of %I/E*3 is in betterposition but the *ompetitor also hold closer margin.

1(. :ord of mouth plays a vital role in awareness among

customer. This is onefactor, which can play a good role inpromotion of products as well as demonstration given by theshopkeeper also plays a vital role for customer.

RECO++ENDTIONS ND SU))ESTIONS:

1. %I/E*3 should improve it’s after sale service because itshits badly %I/E*3s market share in Lorhat region.

=. The company should look into the matter of person hiring for inshop /emonstration. + big %I/E*3 showroom should have atleast = such kind of person.

>. The marketing managers should make better relations withdealers andeputation of the company.

(. *ustomer considers uality as their rst preference, so the

company should give more stress on this.


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*onsumer durables from e;hibitions. They $ust visit thee;hibitions to see the *o. latest model.

>. They want to buy from the showrooms or from co. showrooms.

2or themservice is important. &eside convenience and other factorsservice is keyfactor.

(. +lso ma$ority of customers do not want any nancing schemefor purchasing the durables.

B. *ustomers are also now very choosy in buying the product andit is important for the company to make loyal customer of their

brand.

G. In survey we found that %I/E*3 has captured ma;imummarket share in every category. %I/E*3 dominates *T%, 9*/,and efrigerator, and :ashing machine, category.

RECO++ENDTIONS ND SU))ESTIONS:

1) E;hibitions do not help to generate so much sells but theyshould be conducted regularly. This helps in generatingawareness regarding the product in customers, which ultimatelyhelps in sales.

2) +lso it is helps in advertising for the new products. 9ike in this

e;hibition new 9*/ was advertised. *ompany should always focuson service.

3) /isplay share should be increased where there is less than


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5) *ompany should also cater to the needs of sub dealers as some

of the sub dealers have potential of high sales.

CONC,USION

Lorhat market is still a virgin market for these techno#survey%ideoconproducts. *ustomers need to be made aware of the productiveusages of these products if %ideocon want to target theseuntapped market segments of customers and rural customers.+lso %ideocon need to modify their advertising strategies in orderto promote these products and services. This also a challenge for%ideocon, for a positive thinking about %ideocon.

'ence %ideocon need to work upon the real factor through/ealer and etailer for a 4+INE3 continuous productivity in theseproducts will make these products more friendly and customized.

'ence %ideocon will be able to win a ma$or market sharebetween the competitors.

+33EPE

DE,ERS SUR6EY AUESTIONRIES

/ear -ir?Hadam,I, student of L. & @L+5+33+T' &++' *99E5EA Lorhat am

*onducting a survey for the television industry. :e reuest yourkind cooperation

1. 3ame of the /ealerVVVVVVVVVVVVVVVVVVVVVVVV


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2. +ddressVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

*. Hention the brand name of the T.% presents in your -howroomS

1 = > ( <

. :hat are the ranges of price that the company o!ersS

.........................................................................................................

...............

0. ank the various brands in order of their selling

1 = > ( <

B. :hy the rank 1A )roduct is sold highS

aA 9ess )rice W X

bA /esign and style W X

cA 5ood brand image W X

dA 5ood product features W X

G. :hy the rank =A )roduct is sold highS

aA 9ess price




D. :hy the rank >A )roduct is sold highS


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aA 9ess )rice W X




6. :hat more can the company do to increase its salesS

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

17. +ccording to you which company has the best marketingstrategyS

VVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVV

11.+ny -uggestionsS

"VVVVVVVVVVVVVVVVVVVVVVVVVVVV..

Thank you for participating in the -urvey

CONSU+ER SUR6EY AUESTIONNIRE

/ear -ir?Hadam,I am student of L. & @L+5+33+T' &++' *99E5EA Lorhat

and as part of our curriculum I am conducting a market research. I

would like your cooperation for the same, with an assurance thatall the information, which you’ll give, will remain condential.

*ustomer’s personal prole"

1. 3ameVVVVVVVVVVVVVVVVVVVVVVVVVVVVV


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2. aA +ge @in yearsAVVVVVVVVVVVVVV.....................................

bA 5ender @please tickA " Hale ? 2emale

*.EducationalQualicationVVVVVVVVVVVVVVVVVVVVV

. +ddress. VVVVVVVVVVVVVVVVVVVVVVVVVVV

0. :hat is your occupationS

aA &usiness bA 5ovt. -ervice

cA )vt. -ervice dA student eA others

B. :hat is your monthly incomeS

aA &elow s 17777 bA s 17777#1


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. /o you prefer any nancial scheme to purchase consumerdurablesS

aA 0es bA 3

0. :hile purchasing consumer durable which parameterinMuences youS

aA )rice bA&rand Image cA)roduct feature -ervice. dA /esignand style.

B. 2rom where you prefer buying consumer durablesS

aA *o.shopper bA -howroom cA on#line dA e;hibition

. p to how much money are you willing to spend on a T%S +tthis time"

aA 9ess thanG777 bA G777#1>777 cA 1>777#=


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&ooks"

Harketing esearch 3aresh 4. Halhotra

&usiness research method# -. 3. Hurthy

:ebsite" 'ttp" www.videconworld.com

http" www.google.com

Hagazines

&usiness today

&usiness world

3ewspapers

Economic Times Times of India

##" T'+34 0"##

Consumer Preference Towards the Brand Videocon

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Transcript of Consumer Preference Towards the Brand Videocon