Videocon Television Rohit

8/8/2019 Videocon Television Rohit

1/99

1

INDEX

S NO. TOPIC NAME PAGENO.

1. Executive Summary 2-4

2. Introduction 5-7

2.1 Ch-1 Study of The industry 8-27

2.2 Ch-2 Study of The Company 28-47

2.3 Ch-3 SWOT Analysis 48-51

2.4 Ch-4 Learning Experience 52-54

3 Ch-5 Research Methodology 55-64

4 Ch-6 Analysis 65-82

5 Ch-7 Finding and

Recommendations

83-88

5.1 Conclusion 89

6 Bibliography 90

7 Annexure 91-99


2/99

2

Executive Summary

I, ROHIT CHANDRA, a student of JKPS Gurgaon did my Summer Internship Project

with Videocon Industries Limited, Lucknow from 3rd May to 23rd June, 2010.

Videocon group is a company having one of the largest customer base all across the

country. This company basically deals in the consumer durable products. It is delivering

products with upgraded technology in which ever segment they are dealing with.

The title of my SIP was to make an comparative analysis on televisions regarding the

brand preference of consumers and dealers It included the following objectives:

1. To determine the different prespective of Videocon television from dealers point

of view .

2. To find out the overall television market size and the standing of Videocon in the

market.

3. To determine the preference of customers towards the Videocon television in the

city of Lucknow.

The critical findings of the research are listed here under:

Environment where the television is to be set up plays a vital role in determining the

preference of the television

Due to changing technology people are shifting towards television rather that television

sets.


3/99

3

It is recommended:

1).Videocon should increase its customer base and focus on various parameters like

technology, timely service etc.

2).Videocon has very low Human Resource which causes great problem.

Videocon Ind. Pvt. Ltd appreciated my work and gave Appreciation certificate which is

enclosed with this executive summary for the excellent work performance.

To sum it up this entire project was an enriching experience for me both as a summer

trainee of Videocon Ind. Pvt. Ltd and an JKPS student.

Initially, in the first week of summer internship program, I understood the basicknowledge of the different products range that the company if offering.A brief

introduction and training was provided on the technicalities of the newly launched D2H

service of the company.

With the starting of the second week of the summer internship program, I conducted the

comparative analysis on the refrigerators on different outlets across the Lucknow city.In

this analysis we determined the Market operating price (M.O.P.) and the advantages and

disadvantages of companies over one another.

After this, I started the comparative analysis on Washing machines,L.C.D/L.E.D and

televisions.These comparative analysis gave an idea of what can be done by the company

to improve their place in the competitive world.A promotion strategy programme was


4/99

4

also conducted by me to aware the dealers and outlet regarding D2H and any complaints

if they have.My job was also to provide them with brochures,leaflets,posters etc.

In the coming weeks I also prepared a display matrix for the NEXT outlets in the city.

Then, I started making the questionnaire based on the information gathered. Through this

questionnaire,I did survey between the varied perception of dealers and retailers.I

interpreted these questions and analyzed through factor analysis here I took the sample

size of 50 dealers and retailers.


5/99

5

INTRODUCTION

Purpose of the project

To analyze the growth of the videocon products in the market.

To analyze the demand of the videocon products amongst the dealers and

retailers.

To make comparitive analysis of different products with their respective

competitors.

To analyse the companys performance during pre sale and post sale activities.

To suggest various measures of growth to the Videocon.Ind..Ltd.

LIMITATIONS

The data that will be collected from clients is through questionnaires and at times

it is subjected to subjectivity.

The data collected is primary and secondary and have chances of discrepancy.

Company policy: No access to secret and confidential reports and data of the

company. Sources and Methods

Primary and secondary data will be collected which help in carrying the project further

and will provide the required information.


6/99

6

Primary Data

Information from company guide

Information from companys staff

Information from questionnaire

Secondary Data

Secondary data collected from various published and non published resources.

Further Introduction

Every business organization that comes into contact with the customer

develops a perception in the mind of the customer . Today in t his

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 f or 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.


7/99

7

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 w hat

level customers are enjoying and aware of Videocon TV offered

by t he company and what further improvement can be done i n

future in this area so as to get brand awareness .

2.Sub-Objective:

T o have an overview of Videocon.

T o know t he reputation of Videocon T.V . in the mar ke t.

How the consumer preference towards the brand Videocon.

T he 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.


8/99

8

CHAPTER-1

STUDY

OF

THE INDUSTRY


9/99

9

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

machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,

microwaves, built-in appliances, tumble dryer, personal care products, etc.


10/99

10

3.Moulded Luggage

includes plastics.

4.Clocks and Watches

5.Mobile Phones

ABOUTCONSUMER ELECTRONICS INDUSTRY

1.History of consumer Electronics in India

T he Electronics Industry in India took of f around 1965 with a n

orientation towards space and defense technologies . This was rigidly

controlled and initiated by t he government. T his w as followed by

developments in consumer electronics mainly with transistor radios ,

Black & White TV , Calculators and other audio products . Colour

Televisions soon follow ed. In 1982 a significant year in t he history of

television in India t he government allowed thousand of colour TV

sets t o 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. T he period bet we en 1984 and 1990 w as the golden period f or


11/99

11

electronics during while the industry witnessed continuous and rapid

growth. From 1991 onwards , there was first an economic crises triggered

by the Gulf War , w hic h w as 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 recent years the electronic industry is growing at a brisk pace .

I t is currently worth $ 10 Billion but according to estimates , ha s the

potential to reach $ 40 bill ion by 2010. The largest segment i s the

consumer electronics segment. While is largest export segment is the

consumer electronics segment. While is largest export segment is of

components.

4 The breakup of production in various segments the industry is s how n

below :

1950s Radios -imported & Sold

Late 1960s B&W TV Transmission started

1970s Manufacturing ofB/W TV started

1982 Colour TV Transmission, Manufacturing of CTV started

1992 Economic Liberalization Process initiated

1993-94 Dismantling of controls such as licences,


12/99

12

Ban on use of Foreign Brand Names etc.

1994-95 Entry of MNCs Panasonic, Sony, LG, Samsung etc.

Lowering of Import duties.

Cable TV Started.

1995 Till Date Entry of Many MNCs & Rapid Growth,

Continuous Lowering of Import Duties

2001 Non tariffBarriers on Imports removed.

2004 Free Trade Agreement (FTA) with Thailand implemented,Resulting

in reduction of import duties to 0% on Colour Television sets,

Colour Picture Tubes, Refrigerators and Air Conditioners, thus

more competition.

2005 DTH Services Started

2007 Entry of Organised Retail

2008 FTAs with other countries & FDI in retail likely.


13/99

13

2.CURRENTSCENARIO

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

2008, microwave ovens and air conditioners registered a growth of about 25%. Frost-

free refrigerators have registered significant growth as many urban families 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 color televisions (CTVs) is expected to increase 3 times by 2008.

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. One electronic gadget that has brought new

revolution in Indian Electronic Industry is Television Set. 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


14/99

14

television (FPTV) market, in common parlance called the liquid crystal display

(LCD) and plasma televisions. Moreover, as per recent research data available, the

global market for FPTV is expected to grow from 51 million units in 2006 to 127

million by 2009.

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 labor 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.

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, so it

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

emerging market.


15/99

15

In present scenario top player for colour television are

LG

VIDEOCON

SAMSUNG

SONY

ONIDA

PHILLIPS

SANSUI

BPL


16/99

16

3.INDUSTRYANALYSIS- 5 FORCES MODEL

Michael Porters Five Forces Model provides a robust and time-tested framework for

analysing any industry, reflected in the strength of the five forces (industry

competitors, potential entrants, threat of substitutes, power of buyers and power of

suppliers). The collective strength of the five forces determines the ultimate profit

potential in an industry,

Where profit is measured in terms of long-term returns on capital invested. The

elements of each of the above forces and the extent and /or effect of each element in

the context of the television industry have been analysed and enumerated below.

The Porters Five Forces tool is a simple but powerful tool for understanding where

power lies in a business situation. This is useful, because it helps you understand both

the strength of your current competitive position, and the strength of a position youre

looking to move into. With a clear understanding of where power lies, you can take

fair advantage of a situation of strength, improve a situation of weakness, and avoid


17/99

17

taking wrong steps. This makes it an important part of your planning toolkit.

Conventionally, the tool is used to identify whether new products, services or

businesses have the potential to be profitable. However it can be very illuminating

when used to understand the balance of power in other situations.

1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH)

2. BARGAINING POWER OF BUYER (VERY HIGH)

3. BARGAINING POWER OF SUPPLIER (LOW)

4. BARRIER TO ENTRY (LOW)

5. THREATS OF SUBSTITUTES (LOW)

3.1Degree ofRivalry

Degree of rivalry denotes the intensity of competition within the industry. Videocon,

LG, samsung, Sony, Onida, are the big competitors in television industry. Although

Videocon, another major player has managed to hold its own in the midst of the

onslaught from the Korean majors, though profits have suffered. Other large Indian

companies in the top of the list are Mirc Electronics. While Mirc Electronics is

managing to hold its share by adopting value for money strategy, BPL is facing tough


18/99

18

time, experiencing drastic decline in market share. Sony, Philips, Akai, Sansui, Aiwa,

Toshiba and now Hyundai are the other foreign brands in the market. The industry is

based on numbers game and companies will have to maintain a fine balance between

catering to lifestyle requirements and meeting the needs of average consumer.

3.1.1Competitor Analysis

A detailed analysis of some of the major players is done below:

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

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

emphasising 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.


19/99

19

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--vis competitors. It has taken

over multinational brands to cater to unserved segments, like Sansui- to flank the

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

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


20/99

20

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.

3.2 The threat of potential new entrants (low)

High capital required entering into television industry, which needed large investment

on technology, distribution, service outlets and plant. Difficulty for customers in

switching cost, when they are satisfied with their current product as well as difficultly

for new entrants to have product differentiation because customers had already

familiar with those established consumer electronics companies, therefore new

entrants have to spend a lot on branding and customer knowledge. It is difficult to

obtain a license; successful applicant has to undergo through a form of competitive

evaluation, such as a comparative evaluation process.


21/99

21

Threat of entry is determined by the entry barriers, which act to prevent new firms

from entering the industry. A lower entry barrier makes it difficult for the existing

producers to remain profitable for long. When profits increase, additional firms will

enter the market to take advantage of the high profit levels and over time drive down

profits of all firms in the industry. When profits decrease, some firms will exit the

market, thus restoring the market equilibrium. Barriers to entry arise from several

sources:

3.2.1Access to Distribution Channels

A strong distribution network is absolutely essential to compete in this industry. Not

only does it guarantee a country wide reach for a companys products but is also

necessary for providing good after sales service.

Videocon has implemented ERP system, which helps in integrating the

manufacturing, marketing, procurement and distribution services with the corporate

office.

LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and

above. Samsung also has a widespread service network, which includes 123 exclusive

service centers and 200 distributors in any town with more than 1 lakh population.

All BPL dealers are linked via VSAT nodes, ensuring online availability of

information on inventory status and sales movement.

Distribution hence is difficult and costly as established firms dominate distribution.

Large incentives are required to gain entry into the distribution channels and further


22/99

22

gain recommendation to retailers from the dealers.

3.2.2 Brand Salience

With little product differentiation and parity products, it is imperative that distinct

images are created in the minds of consumers through positioning and brand building.

MNCs have been able to compress the cost of brand building by amortising the cost

of sponsoring international events across a larger footprint straddling multiple

countries.

3.2.3Capital Investment and

Economies of Scale

Television industry is capital intensive and players have made huge investments

in putting up state of the art manufacturing facilities. Videocon has seven

manufacturing site in India Sony India had a production capacity of 300,000 CTV

sets with capacity utilisation of 66%. Samsung is investing $4 mn to expand its CTV

manufacturing capacity at Noida to 800,000 units per year. The existing capacity of

the plant is around 600,000 units. Other players like Mirc Electronics, LG have also

set up manufacturing facilities in India. The market players need sales volume to

achieve economies of scale, which is difficult because of large number of

competitors. Apart from investments in manufacturing the industry requires huge

working capital to manage inventories.

Supply chain mgmt. and inventory management thus becoming crucial toDetermining

profitability. With regard to sourcing funds, MNCs are better placed Than their


23/99

23

Indian counterparts as they manage to get funds from their parent Companies at low

rates of interest. Huge capital requirement thus can act as barrier to entry.

3.3Threat of Substitutes goods (low)

In Porters model, substitute products refer to products in other industries. There is few

substitutes from other industry if any. Most of them seem to be obsolete or have one

foot out of door. Internet though emerging as an infotainment medium is very low in

penetration. Moreover the industry has responded to the future threat by introducing a

TV that can provide functions of the Internet along with regular features, e.g., BPL

digital that includes Internet and cellular facilities.

3.4 bargaining power ofBuyer (high)

The power of buyers is the impact that consumers can have on a producing industry.

Buyer power influences the prices that a firm can charge. Buyer power is influenced

by various factors as follows:

3.4.1Buyer Concentration

The industry is akin to consumer durables whose end users are fragmented. Hence

buyers do not have any specific influence on producers.

3.4.2 Buyer SwitchingCost

The cost incurred by consumer in switching from one television brand to another is

practically zero. Brand loyalty is low. Hence the companies cannot rest on their

laurels and have to be on their tenterhooks to retain the customers.

3.4.3 Price Sensitivity


24/99

24

Market is highly price conscious and promotion driven. With the onslaught of

Videoconss major price cuts and promotional schemes, this market has now become

a promotion driven one. To successfully compete in this industry, even premium

players like Sony, LG have had to come up with schemes. LG and Philips have

been the most aggressive amongst industry leaders as far as pricing is

Concerned and hence their realization shave been lower than industry average.

Industry leaders like LG focus on low- medium priced CTV, while Samsung has

Moved gradually towards higher priced CTVs. The domestic high-end

CTV prices will follow the global price trend of declining prices. However, the

Prices of domestic products would be higher than those of global products due

To negligible demand in the domestic market and hence most likely to be met

Through imports. market is highly price sensitive as the

Demand has increased with fall in prices.

3.5 Bargaining power of supplier (low)

In television industry, there is low bargain power of Suppliers because big global

supply chain management. There is direct negotiation with supplier in order to encourage

reliable supply, faster delivery and lower price. Bargaining power influences the cost

and quality of input material. Higher supplier power raises the input cost, thereby

reducing the industry profitability. The most critical component in manufacturing

television is the picture tube. It constitutes around 50% of the cost of television.

While Black and White picture tubes are made in India, many manufacturers still


25/99

25

need to import color picture tubes.

The other important components include electronic circuit boards, tuners, high-

tension transformers and molded plastic casings. The demand

For colour picture tubes (CPT) has been rising steadily. But at the same time owing

To customs and import liberalization, they had to face competition from imports

During1993-1997. A sharp reduction in import duty from 85% to 40% between

1994-96 and further down to 20% by 2004 was announced to gear the manufacturers

of picture tubes to face competition from foreign players. As a result of spurt in

Demand in 1990s, the CPT manufacturers expanded capacities, which resulted in

Excess capacity in the domestic market. Samtel Colour, LG Hotline and JCT

Electronics are the major domestic CPT manufacturers The picture tube industry is

both technology and capital-intensive industry.

At the same time bulk orders in raw material procurement fetch more discounts,

which gives the larger players an advantage over their smaller counterparts. The CPT,

the most critical component in a CTV has no alternate use and therefore, the CPT

industry is solely dependent on CTV players, mainly domestic and partly exports.

Hence larger players like LG, Samsung and Mirc etc. are able to negotiate better

deals unlike other players.


26/99

26

3.6.CONCLUSION

The variables affecting the industry with regard to each of the five forces have been

Categorized as favorable or adverse. Favorable variables have the potential to

improve profitability, while adverse variables reduce profitability of the industry.

Some strategic initiatives, which could be adopted to leverage the favorable forces

And protect themselves from the adverse ones, are as follows:

R&D and Marketing will have to work closely together. R&D will have to play a

role in cost innovation, which can cut component cost and raise performance. The

number of defectives has to be reduced at negligible levels. The quest should be to do

even better. Each assembly line can be made to compete with the other.

Vital to the spread out is the re-haul of distribution network. Home appliances have

necessitated separate dealers, many of them specialists. For sharper focus on all

categories individually, the market has to be opened wider.

Brand building will be important, so as to ensure brand preference. Marketers will

have to strategize to pull the consumer up the value escalator. A good fraction of sales

if come from high margin products as flat TVs and projection TVs would improve

profitability of companies. Sharply differentiated products with effective

communication on a continuous basis would be the key for future. Challenge lies in

creating higher order universal benefits and sensitizing the larger audiences to it.


27/99

27

LG and Samsung are likely to retain top positions.

Buyers are easily swayed by costs, which are also verified by the presence of large

number of product offerings. Focus would be on providing value for money to the

consumer, with more brands in the economy segment. The challenge before

marketers is to span out, and address a wider set of needs. They will have to identify

segments not addressed by them so far and also introduce low price-point products

aimed at rural markets.

Besides catering to the cost conscious segment, marketers need to segment the

market on the basis of psychographics, which will help in inducing brand loyalty

through lifestyle and experiential marketing.

The increase in disposable incomes, more number of households above the

threshold income, declining prices, shortened replacement cycle and the demand for

multiple TV, all these factors are expected to sustain the growth momentum at 10-12

per cent during 2008-09 to 2010-11.


28/99

28

CHAPTER-2

STUDY

OF

THE COMPANY


29/99

29

COM PANY PROF ILE

Brief Profile

The Videocon group emerges as a USD 2.5B

illion global conglomerate continuing to

set trends in every sphere of its activities from a conference room sized assembly line

in 1979.

Today the group operates through 4 key sectors:

1.Consumer durable

2.Thomson CPT

3.CRT glass

4.Oil and gas

Consumer Electronics, Home Appliances & Compressor manufacturing in India

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

of our consumer products like Colour Televisions, Washing Machines, Air

Conditioners, Refrigerators, Microwave ovens and many other home appliances,

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

network in India. Our compressor manufacturing technology in Bangalore further

supports refrigerator manufacturing.

Display industry and its components


30/99

30

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

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

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

CPT and High Definition 16:9 format CPT.

Colour 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


31/99

31

BRAND-BASKET

Partner Product Nature Of Tie-Up

Samsung Electronics Fly Back, Tuners

Technical Support

Transformers

Matsushita Electric Washing Machine Technical * Collaboration

Matsushita Electric Air Conditioner Design & Drawing

Matsushita Electric Refrigerator Design & Drawing

Sansui Electric Co. Ltd Audio Products

ODM for Indian Market

And Colour TV

Techneglas Glass Shell Technical Collaboration

Akai Audio Products

ODM for Indian Market

And Colour TV

Hyundai Colour TV ODM for Indian Market

Electrolux AB Sweden Refrigerator,

1.ODM & Indian Market

Air Conditioner and

2.Sourcing of components for


32/99

32

Washing Machine

Global Market

3.ODM for Global market

Vision & Mission

Videocons mission: a reflection of continuity and change

Videocons mission expression has been crafted to envelope both extant and

emerging realities:

To delight and deliver beyond expectation through ingenious strategy, intrepid

entrepreneurship, improved technology, innovative products, insightful marketing

and inspired thinking about the future.

A breakdown of the statement above reveals a means and end approach, where the

end is articulated at the beginning with the means linked to it.

To delight and deliver beyond expectation: the end

This segment not only underlines the importance of the ultimate goal - customer

satisfaction (delight) and ultimate target - the customer, but also of intermediate

processes and principals, which have contributed to building a robust, dependable

Videocon value chain (deliver). As a result of its focus on developing loyal

customers and reliable associates, Videocon is able to exceed expectations.

Through ingenious strategy: the means

In the cutthroat world of today, it is only by taking recourse to advance planning and

strategy that a business can hope to survive. Although textbook strategy has its uses,


33/99

33

reproducing it in verbatim for the real world would be foolish because of the absence

of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity

and improvisation that is flexible enough for scenarios both imaginable and

unimaginable. Videocons ingenious manoeuvres are actually flexi-strategy that

abstracts from shifting ground conditions and decides game plans, or sometimes

changes the rules of the game.

Intrepid entrepreneurship: the means

An enterprise with the odds stacked against it makes great business sense. This is

because higher the obstacles, lower the number of players likely to be active in that

field - thus, fetching extraordinary returns. The only requirement is a bold and

confident attitude willing to brave the odds. Videocons foray into oil and gas is a

bold and intrepid Endeavour that arises from immense faith on the surefooted

competence of the companys in-house managerial talent.

Improved technology the means

Technology is no more a premium input; it has become the bare minimum in recent

years. Rapid advances have only fuelled this phenomenon. Videocon is extremely

vigilant in shunting out dated technology and replacing it with the best-in-class offers

of the times.

Innovative products the means

Product development, innovation and customization are the tools Videocon uses to

stay ahead of the competition. This is because a continuous stream of innovative


34/99

34

products excites the market and enhances brand recall. A strategy that Videocon

banks on a lot, especially on the domestic front

Insightful marketing the means

The market share battle scene has long shifted from technology and processes to the

psyche of the customer. This means that those with deeper insights into the elusive

mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths

to read better the pulse of the market and help create products that map perfectly into

customer preferences.

Inspired thinking about the future. the means

The future is unpredictable, but not doing anything about it is fraught with

grave risk. Videocon extrapolates future trends on the basis of current changes in

technology and preferences as well as sheer gut feel.

Corporate Governance

Company's Philosophy on Code of Governance:

The company's philosophy on corporate governance enshrines the goal of achieving

the highest levels of transparency, accountability and equity in all spheres of its

operations and in all its dealing with the shareholders, employees, the government

and other parties. The company believes in the philosophy on code of corporate

governance, which provides a structure by which the rights and responsibility of

different constituents, such as the board, employees and shareholders are carved out.


35/99

35

In carrying out this, it is ensured that the company\'s objectives are well defined and

performance against those objectives are adequately measured and monitored.

Corporate governance is considered as an important tool for shareholders protection

and maximization of their long -term values. The cardinal principal such as

accountability, responsibility, transparency and fair disclosure serve as the means for

achieving this.

R& D

The company gives utmost importance to the R & D activities, which are carried out,

at in-house R & D center. The company carries on new innovations in product

development, cost reduction, quality improvement, process implementations, process

controls.

1) Specific areas in whichR& D is carried out by the company

During the year, the company has carried out Research and Development in the

following areas.

Home theaters -High-end models and HTIB Models.

Larger Screen Television i.e.32 Inch and 38inch.

True Flat Televisions

Plasma Televisions

Cosmetic design and new out look to the TVs

Manufacturing of components for CTV, Refrigerators and Air conditioners.

Efforts to reduce power consumption of all its final products.


36/99

36

2) Benefits derived as a result of the above R& D.

The company has derived the following benefits as a result of the Research and

Development:

Development of new design in product and launch of various new models.

Able to compete with the foreign players in the Indian Markets by cost reductions and

offering innovation features and to maintain market leadership in Television under

Videocon umbrella.

Increase in productivity.

Reduction in power consumption of some of the products.

3) Future Plans of action

In the coming days company is aiming to achieve development in the following areas

through Research & Development:

Manufacturing of components for consumer Electronics Products.

Multimedia TV.

Plasma Televisions.

Launching of New Brands & Sub-brands under Videocon umbrella.

Composite Home Entertainment system with internet adaptability.

To work on better features, better quality & improved reliability with reduced/low

prices.

Your company always attempts to use the latest and advanced technology in

production process. Keeping pace with the technological developments, the company


37/99

37

keeps on adding sophisticated equipments with focus on automation to minimize

manual intervention in the manufacturing process thereby ensuring quality of the

final products.

Future Plans

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 Centres 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 flass 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 Polland 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 siginificantly.


38/99

38

Board Of Directors

Mr. Venugopal N Dhoot

Mr. Pradeepkumar N Dhoot

Mr. K C Srivastava

Mr. Kuldeep Kumar Drabu

Mr. Satyapal Talwar

Mr. S Padmanabhan

Maj. Gen. S C N Jatar

Mr. Arun L Bongirwar

Mr. Didier Trutt (Nominee - Thomson S.A)

Mr. Johan G Fant (Nominee - AB Electrolux (Publ) )

Mr. B Ravindranath (Nominee - IDBI Limited)

Mr. Ajay Saraf (Nominee - ICICI Bank Limited)


39/99

39

ORGANIZATION STRUCTURE CHART:

FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION:

STORE DEPARTMENT:

Functions:

1. Purchase of all items indented by user functions like spares


40/99

40

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.

FINANCE DEPARTMENT

Functions:

To comply with legal and other requirement.

To provide information for stakeholders about financial

Performance and viability

To provide managers with information for decision-making

To provide a structure to business activity based on the careful

processing of numerical data.


41/99

41

MARKETING DEPARTMENT

Functions:

The smooth functioning of the marketing, sales and delivery operation

Corrective actions on customer complaints

New initiatives taken for sales maximization of the company

Handling relationship with personal, communicating and reporting to the

management.


42/99

42

Developing sales programs and formulating and designing sales polices.

PRODUCTIONDEPARTMENT

Functions:

Production and planning

Purchasing

Stores

Design and technical supports

Works

Production cycle:

AUDITREPORT

We have audited the attachedB

alance Sheet of VIDEOCON INDUSTRIES

LIMITED, as at 31march 2010, Profit and Loss Account.

The Cash Flow Statement of the Company for the year ended on that date

Annexed thereto. These financial statements are the responsibility of

The Company management. Our responsibility is to express an opinion

On these financial statements based on our audit

We conducted our audit in accordance with auditing standards

Generally accepted in India. Those Standards require that we plan and

Perform the audit to obtain reasonable assurance about whether the


43/99

43

Financial statements are free of material misstatement. An audit

Includes examining, on a test basis, evidence supporting the amounts

And disclosures in financial statements. An audit also includes

Assessing the accounting principles used and significant estimates made

By management, as well as evaluating the overall financial statement

Presentation. We believe that our audit provides a reasonable basis for

Our opinion.

ANNEXURE REFERRED TO THE AUDITORS REPORT

Statement referred of the Auditors Report of even date to the Members of

VIDEOCON INDUSTRIES LIMITED on the financial statements for the

Year ended 31st march 2010.

(i) (a) The Company has maintained proper records showing full

Particulars including quantitative details and situation of fixed

Assets.

(b) As per the information and explanations given to us, physical

Verification of fixed assets, other than those under joint venture, has

Been carried out at reasonable intervals in terms of the phased

Programme of verification adopted by the Company and no material

Discrepancies were noticed on such verification. In our opinion, the

Frequency of verification is reasonable, having regard to the size of

The Company and nature of its business.


44/99

44

(ii) (a) As per the information and explanations given to us, the

Inventories (excluding stock of crude oil lying at extraction site with

the Operator) have been physically verified during the year by the

Management. In our opinion, having regard to the nature and location of

Stocks, the frequency of the physical verification is reasonable.

(b) Procedures of physical verification of inventory followed

By the management are reasonable and adequate in relation to the size

Have the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. As per the

Information and explanations given to us, the discrepancies noticed on

Physical verification of stocks were not material in relation to the

Operations of the Company and the same have been properly dealt with in

The books of account.

(iii) As per the information and explanations given to us, the

Company has not granted or taken any loans, secured or unsecured,

To/from Companies, firms or other parties covered in the register

Maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations

Given to us, there are adequate internal control systems commensurate

With the size of the Company and the nature of its business with regard

To purchases of inventory and fixed assets and for the sales of goods


45/99

45

And services. During the course of our audit, we have not observed any

Continuing failure to correct the major weakness in the internal

Controls systems.

(v) (a). Based on the audit procedures applied by us and according to

The information and explanations provided by the management, we are of

The opinion that the particulars of contracts or arrangements referred

To in Section 301 of the Companies Act, 1956 have been entered in the

Register required to be maintained under that section.

(b) In our opinion and according to the information and explanations

Given to us, the transactions made in pursuance of contracts or

Arrangements entered in the register maintained under Section 301 of

The Companies Act, 1956 and exceeding the value of Rupees Five lakh, in

Respect of any party during the year, have been made at prices which

Are reasonable having regard to prevalling market price at the relevant

Time.

(vi) The Company has not accepted any deposits from the public within

The meaning of the provisions of Section 58A and 58AA or any other

Relevant provision of the Companies Act, 1956 and rules made there

Under.

(vii) In our opinion, the Company has an internal audit system

Commensurate with its size and nature of its business.


46/99

46

(viii) The Central Government has prescribed maintenance of the cost

Records under Section 209(1)(d) of the Companies Act, 1956 in respect

Of the Companys products. As per the information and explanations

Provided to us, we are of the opinion that prima facie, the prescribed

Records have been made and maintained. We have however not made a

Detailed examination of the records with a view to determine whether

They are accurate or complete.

(x) There are no accumulated losses as at 31st march 2010. The Company has not

incurred any cash losses during the year covered by our

Audit and the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations

Given by the management, we are of the opinion that the Company has not

Defaulted in repayment of dues to financial institutions, banks or to

Debenture holders during the year.

(xii) The Company has not granted any loans and/or advances on the basis of

security by way of pledge of shares, debentures and other securities.

(xvi) The term loans raised during the year were applied, on an overall basis,

For the purposes for which the loans were obtained.

(xvii) The balance sheet of the Company, we report that the Company has

Not used funds raised on short-term basis for long-term investments.

(xix) The Company has not issued any secured debentures during the


47/99

47

Year. The Company has created security in respect of debentures issued

In earlier years.

(xx) During the year the Company has not raised any money by way of

Public issue.

(xxi) According to the information and explanations given to us, no

Fraud on or by the Company has been noticed or reported during the


48/99

48

CHAPTER-3

SWOT

ANALYSIS


49/99

49

SWOTAnalysis

Strengths

1. Videocon has largest distributed capacity manufacturing base across India with 17

facilities and plant in china, Poland, Itally, 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 Videocons 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.Third largest picture tube manufacture in India

12. Cheap price.

13. Globally acceptance.

Weaknesses

1. Less investment on advertisement of Videocon CTV

2. Fewer margins to the distributor/dealer.


50/99

50

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.

7.Less focus on unconventional channel.

8. Not providing good service.

9.No exclusive show rooms

Opportunities

1. Videocon takes over the Electrolux.

2. Videocon buy Thomson color picture tube manufacturing plant.

3. Videocon international is going global.

4. Videocon exploring whole new segment

5. During the climate of Lucknow becomes hotter day by day and coolers do

Not fully satisfy the customers 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.


51/99

51

Moving into new attractive market segments.

11. Focused on unconventional channels.

12. Mergers joint venture of strategic alliances.

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.

8.Competition in global CPT market especially from integrated players such as LG-

Phillips, Samsung, and Matsushita is intense.


52/99

52

CHAPTER-4

LEARNING

EXPERIENCE


53/99

53

LEARNING EXPERIENCE

1. During the project training in the market, I understand how it works

practically from start point to end point.B

efore that I have only

theoretically idea of marketing management.

2. It is great experience to see these entire things happen in front of

eyes. It enhances my practical knowledge from one level to another level.

3. I have also learnt how corporate world functions and the importance of

discipline in your work life.

4. My manager supported me in gaining sufficient knowledge about

the company and industry this help me complete the project successfully.

5. I have learned about the Videocon products esp. television which

are sales in India

6. I have learned about sales procedure of company.

7. I have learned about the competitors of Videocon

I became much more confidant and the experience has helped me to brush my

communication skills.

9. Apart from this entire thing it gives me real picture about supply

chain. I visited each department & it is good learn experience to me

when employees share their experience for the organization to

achieve the goal.

10. I have learnt that to convince someone what is required is complete


54/99

54

knowledge of your product and how will it benefit the client

11. 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)


55/99

55

CHAPTER-5

RESEARCH

METHODOLOGY


56/99


57/99

57

Videocon brand awareness gives warranty of qua lit y and

satisfact ion in the mind of the customers.

Videocon brand awareness helps buyers consumers

in following ways

Brand awareness helps shopper s in moving quickly through

super market or retail s tore and helps in ma king quick

decisions.

F o r customer t h e Videocon bra n d is easy to identify

and recognize.

I t s h o u l d b e d is t i n ct i v e a n d cr eat e a g o o d i ma g ei n

customer mind .

Should b e capable o f being registered a n d protected

legal y .

A deep bra n d m u s t have Br an d Equity .


58/99


59/99

59

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.

Our approach to the research design tasks went through the following

tasks.

Information needed

Measurement and scaling Procedures

Appropriate Data collection

Sampling Process and sample size

Data Analysis plan

These issues are addressed as the following

Research Type

Descriptive Research

Data Type

Primary and Secondary data

Research Tools

Questionnaire

Observation

Enquiry

Sampling Units


60/99

60

customer/Dealers/ Retailers

Sample Size

Customer (100)/Dealers/ Retailers (50)

Sampling Method

Random Sampling Method

Sample drawn from

Lucknow

5.3.Type

The data collection was done through

1. Secondary Data Analysis

2. Survey

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.


61/99

61

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 throughout 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 . 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


62/99

62

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.

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:


63/99

63

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.

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 come out with the purchase

steps and the time taken in them. The reasons for such inaccuracy could


64/99

64

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 Lucknow region and the customer

preferences and tastes in different

Regions could not be covered.


65/99

65

CHAPTER-6

ANALYSIS


66/99

66

Demographic profile

Gender profile

Male 28%

Female 72%


67/99

67

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+)


68/99

68

Here I can infer that there is all income level people available in this segment so

company need a good product range.

OCCUPATION DISTRIBUTION

Inference:

T his diagram s how that most of the people occupation is private service.

Also good amount of business man available he r e.

By this we can know about difference in preference.

By knowing occupation distribution clearly the company can segment and target

customer according to their occupation.

0 5 10 15 20 25 30 35 40 45

other

student

privateservice

govt.service

businessman


69/99

69

Awareness about Videocon, SAMSUNG & LG to Customers

( Given in percentage f or m)

From the above pi e charts , it is clear that most of the customer s

( 62% ) of Videocon cam e to know about Videocon through TV

advertisement as compare to customers of Samsung and LG . A s f a r as

print media advertisement is concerned, only f e w customers cam e t o know

about Videocon through print media advertisement as compared to customers of

Samsung & LG . But no customer s of Videocon cam e to know about

Videocon through holdings and billboards , but few customer s cam e to know

about Samsung & L G through hoardings and billboards .

H enc e, w e can infer that Videocon is doing positioning through TV


70/99

70

advertisements r at her than through print media advertisement . They should more

focus on word to mouth marketing because t hey are weak in this.

Why Videocon, SAMSUN G or LG?

(Given in percentage form)

Inference

From the above figures , it indicates t hat people give more preference

to pr ice as compare t o other attributes ( Like Br and & Quality) while

buyi ng the Videocon products w e observe her e that service is not

good at Videocon .

Hence, w e can infer that LG & Samsung are strong brand and

having more quality than Videocon ( as given in T able and Pie - chart).


71/99

71

Also, LG & Samsung products are more expensive than Videocon.

From where you prefer buying consumer durables

Co shoppee

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.


72/99

72

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.

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

21%

24%

13%

17%

25%

Sales

convinience

attractiveprices

offers

service

demonstration


73/99


74/99

74

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

2. 16% consumer is not a small amount, there is only televsion few company which

provide financial scheme

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

more customer.

Would you wait for festive season for available discounts to purchase a

Television?

Yes

No

Inference

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

North India is more believe in festival.

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


75/99

75

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

a) Less than 6000

b) 6000-13000

c) 13000-20000

d) 20000-30000

e) more than 30000

Inference:

14%

31%

24%

16%

14%

Sales

lessthan6000

6000-13000

13000-20000

20000-30000

morethan30000


76/99

76

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 increase market

share.

Some customers are wanting to spend a big amount of money on television these

customer

dont care about 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 televsion?

a) Excellent

b) Good

c) Fair

d) Poor

Inference

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

television. Company has to find out all the reason and should work on it.


77/99

77

If company dont attract old customer this will become a big threat for company.

Which are the brands you are dealing with?

In the above analysis the total number of television available on the outlets where the

survey had been conducted were 100.

The percentage of the Videocon television have been on the highest side,but from the

feedback I got to know that this percentage has been decreased in last some years. This is

due to the bad service quality provided by the company.

The television of the Videocon is on the higher side because they are having the new

scheme of D2H in television.This D2H is offering direct to home satellite facility.

15%

42%

28%

3% 2%

10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

LG SAMSUNG VIDEOCON Hyundai Normende Pansonic


78/99

78

What is the counter size of the showroom?

All the entries above are in feets(approx.).The counter size of different companies are

dependent on the amount of demand created in the market by the company.Companies

playing a very important role in determining the counter size on different outlets acrossthe city.

Samsung here occupying the highest counter size occupying company.This is because the

amount of L.C.D display of Samsung is more then any other company in the whole city.

6

8

7

3

2

4 LG

Samsung

Videocon

HyundaiNormende

Panasonic


79/99

79

How do you perceive the Videocon television as product for value for money?

When this question was asked to the dealers and retailers a very strange observation came

into existence.The frustration which came out were regarding the bad service quality of

Videocon in comparison to Samsung and LG.Hence,the percentage for good andexcellent is on the lower side.

20%

40%

30%

10%

good

average

poor

excellent


80/99

80

How do you rate Videocon television in terms of quality as compared to other

competitors?

The percentage shown above in the graph is showing the highest percentage of users are

rating television of Videocon as of very poor standard.This questionnaire was not made

for the customers but rather for the dealers and outlets.Hence the poor rating for the

L.C.D is due to less features offered by the company and again the main issue was that of

after sales services.

15

10

20

55

Sales

good

excellent

average

poor


81/99

81

On the technical basis, how will you rate Videocon television in comparisons to others?

According to the questionnaire most of the dealers were rating the technological aspect of

the Videocon L.C.D/L.E.D as very average in comparisons to the other competitors.The

only benefit Videocon could gain in the market was due to the services provided by them

through D2H.

20

25

15

40

Sales

very good

good

poor

average


82/99

82

.The number of Videocon televisions sold by your store in one month:

y Less then 2y Between 2 to 5y More than 6y More than 10y None

Theamountoftelevisionmajorly soldby theoutletsarebetween2to5.Thebasicreasonfor

thisisbecauseoflackofservicesofferedby thethe Videocongroup. Thisisthedatawhichis

droppedfromtheprevious years.

20

50

15

10

5

Sales

lessthen2

between2to5

morethan6

morethan 10

none


83/99

83

CHAPTER-7

FINDING

AND

RECOMMENDATIONS


84/99

84

Dealer survey Findings:

1. By calculating the display share we found that in most of store VIDEOCON

has third highest display in 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 Lucknow CTV.

8. Sales promotion scheme are sufficient.

9. Price range preferred by consumer is generally below Rs.10000/-

11. The top competitor of VIDEOCON product in Lucknow is LG and SAMSUNG.

12. In Lucknow area the performance of VIDEOCON is in better position but the

competitor also hold closer margin.


85/99

85

13. 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.

14. Consumers are mostly gets attracted by the price discount offered by company

and product warranty

RECOMMENDATIONS AND SUGGESTIONS

1.VIDEOCON should improve its after sale service because its hits badly

VIDEOCONs market share in Lucknow 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.


86/99

86

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.

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.

CUSTOMERSURVEY 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 dont buy

consumer durables from exhibitions. They just visit the exhibitions to see the

latest model.

3. They want to buy from the showrooms or from company showrooms. For them

service is important. Beside convenience and other factors service is keyfactor.


87/99

87

4. Also majority of customers do not want any financing scheme for purchasing

the durables.

5. Customers are also now very choosy in buying the product and it is important

for the company to make loyal customer of their brand.

6. In survey we found that VIDEOCON has captured maximum market share in

every category. VIDEOCON does dominates CTV.

7. The product is well aware and it is not on the top of mind of customer.

8. 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.

9. The quality of Videocon CTV is acceptable to the market. Consumer and

retailer both are averagely satisfied with the quality of Videocon CTV.

10. Consumers are mostly gets attracted by the price discount offered by

company and product warranty.

11. The categories of the people who are using the CTV are mostly economic

income people.

12. LG and samsung are competitors of videicon s CTV

13. Consumers are aware about videocon TV.

14.Customer perception about videocon TV is average in nature.

15. Advertising of videocon CTV is not striking as compaer to the competitors


88/99

88

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.

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

companys 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.


89/99

89

CONCLUSION

Lucknow market is still a virgin market f or these techno- survey Videocon

products . Customer s need to be made aware of the productive usages

of these products if Videocon want to target untrapped market

segments of urban customers . Also Videocon needs to

modify their advertising strategies in order to promote these products

and services . This also a challenge f or Videocon ye get into a positive

frame of mind about their own company and products.

Hence Videocon nee d to work upon the real factor through

Dealer and Retailer f or an uninterrupted continuous productivity in their

Products.This will make these products more friendly and customized.

Another important aspect which the company should consider is that of providing post

sales services,this in turn could really help in booming up the sale for the company.

Hence Videocon will be able to w in a major market share in

between the competitors .


90/99

90

BIBLIOGRAPHY

Books

Philip Kotler , Mar ket ing Management

13th Edition Princeton H al l India 2009

Marketing Research Naresh K . Malhotra

Business research method- S . N. Murthy

Website :

htt p: www.videconw or ld.com

http: www.google.com

http: www.w ikipedia .com

Magazines:

B

usiness today

Business world

Newspapers:

Economic Times

Times of India


91/99

91

ANNEXURE

DEALERS QUETIONARIES

Dear Sir/Madam,

I, student of JKPS (JK Padampat Singhania Institute Of Management And

Technology)am conducting a survey for the television industry. We request your kind

cooperation.

1. Name of the Dealer / Retailer

2. Address

.

3. Mention t he brand name of t he T.V presents in your

Show room?

1 2 3 4 5

4. What are the ranges of price that the company offers?

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

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


92/99

92

5.Why the rank 1) Product is sold high?

a) Less Price [ ]

b) Design and style [ ]

c ) Good brand image [ ]

d) Good product features [ ]

e ) After Sales Services [ ]

f) Durability [ ]


a) Less Price [ ]




e ) After Sales Services [ ]

f) Durability [ ]


93/99

93


a) Less Price [ ]




e ) Af ter Sales Services [ ]

f) Durbility [ ]

8)Which are the brands you are dealing with?

y LGy SAMSUNGy SONYy VIDEOCONy ONIDAy

SANSUIy PHILIPSy OTHERS

9)What is the counter size of the showroom?

y LG ----y SAMSUNG ----y SONY ----y VIDEOCON ----y ONIDA ----y SANSUI ----y PHILIPS ----y OTHERS ----


94/99

94

10)How do you perceive the Videocon television as product for value for money?

y Goody Excellenty Averagey Poor

11)How do you rate Videocon television interms of quality as compared to other

competitors?

y Very Goody Goody Averagey Poor

12)On the technical basis, how will you rate Videocon televisions in comparisons to

others?

y Very Goody Goody Averagey Poor

13)The number of Videocon televisions sold by your store in one month:

y Less then 2y Between 2 to 5y More than 6y More than 10y None


95/99


96/99

96

21)What are the drawbacks of the Videocon televisions a stated by the customers?

CONSUMERSURVEYQUESTIONNAIRE

Dear Sir/Madam,

I am student of JKPS(JK Padampat Singhania Institute Of Management And

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

like your cooperation for the same, with an assurance that all the information, which

youll give will remain confidential.

Customers 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


97/99

97

6. What is your monthly income?

a) Below Rs 10000 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 companys 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

c) Dealerefforts

d) Any other; please specify

4.Do you prefer any financing scheme to purchase consumer durables?

a) Yes b) NO


98/99

98

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) Co.shoppee b) Showroom c) on-line d) exihibition

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

following reasons?

a) Attractive Price b) Service c) Demonstrations d) Offers

e) Convenience

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

a) Less than7000 b) 7000-13000 c) 13000-25000

d) 25000-35000 e) more than 25000


99/99

Videocon Television Rohit

Documents