RAMAIAH INSTITUTE OF MANAGEMENT STUDIES 1 INTRODUCITON: Every business organization that comes into contact with the customer develops a perception in the mind of the customer. Today, in this competitive world every organization needs to know the perception in the mind of the customers. In order to gain mind share or heart share of customers along with the market share is the main lookout for the organizations. Especially in consumer electronics sector, where the products are more or less same, the only way to leave positive impact on customer’s mind and to gain competitive advantage is providing best possible services to the customers. Introduction part of this report is classified into two different sections. 1. 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. 2. 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
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RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES
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INTRODUCITON:
Every business organization that comes into contact with the customer
develops a perception in the mind of the customer. Today, in this
competitive world every organization needs to know the perception in
the mind of the customers. In order to gain mind share or heart share
of customers along with the market share is the main lookout for the
organizations. Especially in consumer electronics sector, where the
products are more or less same, the only way to leave positive impact
on customer’s mind and to gain competitive advantage is providing
best possible services to the customers.
Introduction part of this report is classified into two different sections.
1. 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.
2. 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
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CHAPTER-1
STUDY
OF
THE INDUSTRY
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INDUSTRY SCENARIO Before the liberalization of the Indian economy, only a few companies like
Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer
durables market, accounting for no less than 90% of the market. Then, after the
liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa
came into the picture. Today, these players control the major share of the consumer
durables market.
Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing
very fast because of rise in living standards, easy access to consumer finance, and
wide range of choice, as many foreign players are entering in the market.
Consumer durables are the products whose life expectancy is at least 3 years. These
products are hard goods that cannot be used up at once.
Consumer durables Sector can be classified as follows:
1. Consumer Electronics includes VCD/DVD, home theatre, music players, color
televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.
2. White Goods include dishwashers, air conditioners, water heaters, washing
Secondary data is obtained by contacting the retailer and dealers.
5.4.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.
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5.5.Questionnaire Design
Questionnaire design was the critical issue as the questionnaire
reflects the survey purpose .The questionnaire was meticulously prepared
by identifying the various variables. The same scale of yes/no and very
important, important and not so important was used through out so as to
make the respondent comfortable.
Firstly a questionnaire was prepared and few people were surveyed. After
this survey we realized the flaws in the questionnaire and then a modified
questionnaire was prepared and people were surveyed on this modified
questionnaire.
5.6 Sampling Techniques
In the survey conducted, the sample was random in nature comprising of
people from different age groups and income stratas.
4.7.Data Collection
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 softwares. 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
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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.
5.8. Data Analysis
The data of score of features and score of brand perception was fed into
the excel sheet. Separate Excel sheets were employed for analysis of each
brand and also to keep it concise and unambiguous. 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.
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5.9 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 A
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.
Open Ended Questions – All the questions in the questionnaire were
open-ended to avoid any kind of bias from the respondents end. But a
drawback of this approach is that there was an incomplete capture of his
responses, as the respondent could not always ome out with the purchase
steps and the time taken in them. The reasons for such inaccuracy could
be because of unfamiliarity, fatigue, boredom, faulty recall and the
Question format.
Random Sampling Errors – This can occur, as the particular sample
selected is an imperfect representation of the population of interest. The
area covered in the survey was jaipur region and the customer
preferences and tastes in different
Regions could not be covered.
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CHAPTER-6
FINDINGS
AND
ANALYSIS
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Demographic profile Gender profile Male 28% Female 72%
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FAMILY-INCOME
• Income group determines the sector in which a company wants to foray and be
a market leader; also knowing the income level of the customer will help the
company to modify the products according the buying capability of the
customer, which depends upon the Income level.
• Here we have divided the customers according to Monthly Income and found
that the most of the consumer income is below Rs10000,so they prefer only
less costly television.
• There is also good amount of people of high income (Rs 350000+)
• Here I can infer that there is all income level people available in this segment so
company need a good product range.
OCCUPATION DISTRIBUTION
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Inference:
• This diagram show that most of the people occupation is private
service.
• Also good amount of business man available here.
• By this we can know about difference in preference.
• By knowing occupation distribution clearlythe company can
segment and target customer according to their occupation.
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Awareness about videocon, SAMSUNG & LG by Customers
(Given in percentage form)
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 as
print 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.
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Why videocon, SAMSUNG or LG?
(Given in percentage
form)
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.
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From where you prefer buying consumer durables
Co.shoppee
Showroom
Exhibitions
On-line
Inference:
1. A majority of customers prefer to buy from co.shoppee. Very less
proposition of customers buys from Online and Exhibitions.
2. 49% customers are prefer to by 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.
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You prefer to buy from the same as you have mentioned in above que. Because of
following reasons
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
these 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.
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Do you prefer any financial scheme to purchase consumer durable?
Yes No
Inference
1. Majority of the consumer donot want to go for financial scheme.
2. 16% consumer is not a small amount, there is only t.v.few company which
provide financial scheme
3. If t.v. Company easily provide this scheme to consumer so they can attract
more customer.
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Would you wait for festive season for available discounts for purchase a Television?
Yes No
Inference
By this we can infer some customer prefer to buy t.v. on some festival.
North India is more belive in festival.
On festival company can attract customer by give some typa of discount .
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Up to how much money are you willing to spend on a t.v? at this time:
a) Less than 6000
b) 6000-13000
c) 13000-20000
d) 20000-30000
e) more than 30000
Inference: By this diagram I can infer than most of customer are see price, if company provide some good product with more features and style and design it will help in increse market share. Some customers are want to spend a big amount of money on t.v. 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.
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How do you feel after using the videocon t.v?
a) Excellent
b) Good
c) Fair
d) Poor
Inference
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 attarct old customer this will become a big threat for company.
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CHAPTER-7
FINDING
AND RECOMMENDATIONS
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Dealer survey Findings
1. By calculating the display share we found that in most of store VIDEOCON
has 24% display share almost all categories.
2. By the actual monthly sale of particular store we came to know the capacity of
the store and how much product can they sale.
3. It helps us to know that weather dealer is capable of being a direct dealer of
VIDEOCON or not and it also helps to find out the new dealer who are
capable of being the dealer of VIDEOCON.
4. We also came to know while visiting the shops that there was big problem of
after sale service.
5. Many dealers were facing the problem of after sale service because there is no
follow up calls from VIDEOCON.
6. Demo calls also not done properly.
7. Videocon is on 3rd rank in jaipur CTV.
8. Sales promotion scheme are sufficient.
9. Pricr range preferred by consumer is generally in between 70000 to 13000.
10. Dealer are not satisfied with the incentive provided by the company
11. The top competitor of VIDEOCON product in Jaipur is LG and SAMSUNG.
12. In Jaipur area the performance of VIDEOCON is in better position but the
competitor also hold closer margin.
13. There is high growth of sale in market due to booming in new technology and
better service.
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14. Word of mouth plays a vital role in awareness among customer. This is one
factor, which can play a good role in promotion of products as well as
demonstration given by the shopkeeper also plays a vital role for customer.
15. Marketing growing so that is good sign for company in coming year.
16. Consumers are mostly gets attracted by the price discount offered by company
and product warranty
RECOMMENDATIONS AND SUGGESTIONS
1. VIDEOCON should improve it’s after sale service because its hits badly
VIDEOCONs market share in Jaipur region.
2. More detailed customaries service is to be provided.
3. The training to in shop demonstration should be given at frequent time
interval and feedback should be considered positively.
4. 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.
5. VIDEOCON should try new dealer who have the potential. So they can target
more market.
6. As there is a bottleneck competition between Samsung and VIDEOCON, it is
necessary to take measure steps to overcome the area of downfall in
VIDEOCON with respect to Samsung.
7. The marketing managers should make better relations with dealers and
reputation of the company.
8. Customer considers quality as their first preference, so the company should
give more stress on this.
9. The switching of customer from VIDEOCON product to other brand is due to
the bed after sell service in shop.
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10. The product is well aware and it is on top of mind of customer. So company
should always improve services and update their technology.
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 purchasing
the 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 important
for the company to make 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.
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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 important
for the company to make loyal customer of their brand.
10. Spending on advertisment 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 and
retailer both are satisfied with the quality of videocon CTV.
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 videicon ‘s CTV.
15. Consumers are aware about videocon TV.
18.Customer perception about videocon TV is good.
16. Advertising of videocon CTV is not striking as compaer 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 product
in 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.
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• Display share should be increased where there is less than 50% as
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.
• 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
Jaipur 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.
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ANNEXURE
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DEALERS QUETIONARIES
Dear Sir/Madam,
I, student of RIMS (ramaiah institute of management studies) Bangalore am
conducting a survey for the television industry. We request your kind cooperation
1. Name of the Dealer/Retailer………………………………
2. Address………………………………………………………………
…………………………………………………………………………
……………………………………….
3. Mention the brand name of the T.V presents in your
Showroom?
1 2 3 4 5
4. What are the ranges of price that the company offers?