LCD Sector and BEKO Nevriye Sönmezay. Beko won the 2008 International CES Innovation Prize with its Piano Series 100Hz LCD Tv.

LCD Sector and BEKO

Nevriye Sönmezay

Beko won the 2008 International CES Innovation Prize with its Piano Series 100Hz LCD Tv.

Beko established in 1954 under Koc Group. After 1983 Beko entered to whitegoods sector,and with 1990s increased its exportation numbers and became an exporter company.After 2000 Beko developed under Arcelik A.Ş umbrella.

Beko was the first Turkish company to export whitegoods products to Europe. Today over 280 million producers using Beko products at over 100 countries.

Mission of BEKO

To provide products with a perfect service concept with make lifes of people easier.

Vision of BEKO

“Customers are our boss.”“Our most important capital is our

human resources.”“Our promise is our commitment.”“We respect and care for each

other.”

History of the Television

Television first designed and invented by Scottish engineer John Logie Baird in 1924. Baird also broadcasted first television images in 1926.

Even though we will have more detailed info about LCD television at the upcoming slides, it is necessary to mention about LCD briefly. LCD technology built after expensive researches and developments in 2004

In Turkey there were high percentage of increase at the market in 1970s then it didnt get better until the middle of 1980s, but with the fast increase at the broadcast qualities, which also includes colourful broadcasting, market kept growing and despite the economical crisis on the way.

ANALYSE OF THE WORLD TRADE OF TELEVISION

We are trying to give informations about production and selling numbers of the televison and LCD in Europe, in the World, as well as export numbers from Turkey.

Market Share of the TV in the World

30%

24%19%

5%

22%

Europe

N.America

China

Japan

Others

One of the important indicator to show market shares is the number of households who are holding televisions.

European Union is the leading region with around 150 million house houlders, numbers at USA is around 100 million and it is around 45 million in Japan.

% of Exportation to Production

17%

52%

80%88% 91% 87%

82% 83%

0%10%20%30%40%50%60%70%80%90%

100%

1990 1995 1999 2001 2002 2004 2006 2007

Exportation

TV Exportation in 2007 (%)

36%

22%11%

9%

5%

5%

4%

4%

4% G.Britain

Germany

Spain

France

Netherlands

Italy

Romania

Sweden

Others

Before giving LCD exportation numbers and informations about it,we want to show LCD production number per years.

TV Production Percentages

100% 98,7%86,9%

78,9%

63,3%

0% 1,3%13,1%

21,1%

36,7%

0%

20%

40%

60%

80%

100%

120%

2003 2004 2005 2006 2007

CRT

LCD & PDP

Even though LCD television producing numbers increasing,total television production numbers are decreasing.It was the important problem at the foreign market.

2007 LCD Market Share in the World

18%

15%

12%10%

8%

37%SamsungSonySharpPhilipsLGOthers

As we can see,even though it is slower at some regions and countries,there is a technological change at the television sector from classical CRT televisions to LCD televisions,companies who made a quick adaption,increased their market share.

ANALYSE OF THE TRADE OF TELEVISION IN TURKEY

Television importation numbers are changable but it was generally increasing over the years. Importation numbers depends on the prices of the product, exchange rate and the general tendency at the market.

Television Importation Values ($ Mn)

0200.000400.000600.000800.000

1.000.0001.200.0001.400.0001.600.000

2003 2004 2005 2006 2007

Importation

LCD Importation Numbers

24.10068.000

139.600

316.000

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

2004 2005 2006 2007

LCD Importation

Consumption in Turkey

Turkish television companies had high number of market shares in the domestic market, but when technology switched from CRT to LCD, problems for Turkish companies occured both in domestic market and at foreign market with decrease of the market shares.

Simply because Turkish companies could not adapt to LCD technology fast enough to continue their domination both at the domestic and at the foreign market.

Beko TV Domestic Selling Number

1.074.000

823.000

50.000 107.000

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

2006 2007

CRT

LCD

When we look at consumer choices, %30 of the consumers are buying TV for the first time due to marriage. %18 of the consumers buying to catch new technology product. Over %50 of the consumers are buying it as their as a 2nd TV or more.

When we look at complaints and suggestions about customers about the product and company, feedback of the company to it.

Customers generally experiencing problems when they face technical problems and consulting to technical service about it or they are estimating refunding of the product. Problems at warranty coverage is also very common.

Beko is especially focusing on their technical and after selling services. They believe that that is one of their stronger parts and feature that makes customers choice Beko products.

Knowledge About LCD for Households

4%

31%

33%

31%

1%

NothingA LittleNeutralYesVery Much So

Organisational Goals of BEKO

To be top 10 at the its own sector in the World.

To grow at the foreign market. In Turkey, to be leader at the activities

they are making with organisations, dealers all over the country

New Products

LCD Television, which consumes zero energy at the stand by position

IF Design 2008 Award winner 42” Piano Series 100hz LCD television

Red Dot design award

4P and 4C

Product : Brand name, Features,Functions,Quality,Style,Service

Price : List Price,Flexible Price,Discount,Seasonal Price,Credit Terms,Payment Periods

Promotion : Promotional Strategy,Sales Promotion,Advertising,Sales Forces,Public Relations

Place : Distribution Channels,Market Coverage,Warehousing,Transport

Product

Beko Piano Series LCD with its advanced picture and sound technology combined with sleek,contemporary design.

Beko focusing on quality especially electronic appliances, consequently this brand develop LCD and other product technics often. Beko Piano LCD is produced by new technology, this product have different attributes like high quality, genuine design.

Functions

Full HD Ready Freeview Integrated Digital 1920/1080 Solution 10.000:1 Constant

List of Prices

Beko Piano Series F106 Full HD 2.187 TL

Samsung LE 46 A Full HD 4.299 TL

Sony KDL 52 Full HD 5.599 TL

Vestel Pixellence 3276032 HD 1.209 TL

Philips 42RFL HD 5.399 TL

Altus AL-094 HD 1.414 TL

Toshiba 42XV5000P Full HD 1.549 TL

LG 47LG6000 Full HD 3.989 TL

Promotional Strategy

Beko focus on export, import use demographic and geographic functions in order to establish their product, so that aim to increase market share. Besides Piano Series LCD target to 25-40 age, middle class customers.

Advertising

Beko lay impressive advertisement on LCD items. Customers can realise product functions and benefits. Especially Beko plan on wide groups and promise technological experience and pleasure in life at LCD advertisement.

Beko is supporting sporting activities in Turkey. Beko took copyrights of Turkish Basketball league from 2006 season onwards for four years.

Beko is sponsoring Watford football team UK.It is the first Turkish company to sponsor foreign team.It is also a tactic to increase market shares in United Kingdom.

4C

Product becomes Customer needs and wants

Price becomes Cost to the consumerPromotion becomes CommunicationPlace becomes Convenience

Customer Needs and Wants

BEKO is a customer based brand and give weigt to customer needs and wants by this reason they keep in sight demand and customer satisfaction and produce their product with this logic.

Convenience

Beko is coordinated on distribution channels like industrial stores, retailers and customers easily find products and take service.

Slogans

Thanks For Listening