Download - VIDEOCON (2)
WHITE GOODS
CONSUMER DURABLES
INTRODUCTIONWHITE GOODS
CONSUMER ELECTRONIC
S
CONSUMER APPLIANCES
TVs ,VCDs
Player,Audio
system
Refrigerators,
Washing machine,Vacuum cleaner,
Dishwashers
KEY FACTORS Suppliers Barrier to entry Competitions Bargaining power of customers
Low penetration levelsDomestic companiesMNCs
GROWTH FACTORRise in disposable incomeNew variant of productsPurchasing power of customersRural India:
70 % of total no. of households Immense scope Opportunities for white goods consumer durables
Innovative advertising
Continue…
Availability of finance Availability of credit and loan
Growth of mediaLowering the input cost
MAJOR HURDLES & ChallengesIf we consider Porter’s model: Threat from the new entrant
Global companies, especially from MNC’s
Threat from substitutes presence of FM radio stations, radio sets
have substituted TV’s.
Rivalry as well as competition Bargaining power of customers
Huge varieties of products Wide range of product line, depth
SUCCESS FACTORS
Market positioning and
branding
Distribution and service
network
Product technology
Locations
PRODUCT PRICING
Price is sensitive Depends upon
Brand name
Technology used
Product features
KEY COMPANIES COMPANY
PRODUCTS
VIDEOCON INDUSTRIES
REFRIGERATOR, WASHING MACHINES, T.V., AC, MICROWAVE
SONY TELEVISION, DVD PLAYER
WHIRLPOOL REFRIGERATOR, WASHING MACHINE
PANASONIC TELEVISION
VOLTAS REFRIGERATOR, WASHING MACHINE, AC
ELECTROLUX VACCUM CLEANER, REFRIGERATOR
SAMSUNG TV, REFRIGERATOR, VACCUM CLEANER
Continue…LG ELECTRONICS TV, REFRIGERATOR, WASHING MACHINE
EUREKA FORBES VACCUM CLEANER
PHILIPS TELIVISION
BPL LIMITED REFRIGERATOR, TV
BLUE STAR AIR CONDITIONER
GODREJ REFRIGERATOR, AIR CONDITIONER
HOOVER VACCUM CLEANER
POLICIES & INITIATIVES• Now possible to Import duty
free raw materials, all components .
• Custom duty on Information Technology Agreement has been abolished from March 2005.
• EHTP initiative taken to provide benefits to companies.
THE CHALLENGES
• Heavy taxation ( 25-30)% in the country.
• About 65% of population still lives in villages.
• Not aware of existing companies.
• Entering into rural markets has considerable cost component attached to it.
• Poor Infrastructure & Electricity supply remains a major hiccup in India.
THE OPPORTUNITIES
• Rising rate of growth of GDP ,purchasing power & higher eagerness to consume.
• Growth in disposable income, improving life styles, low running cost & rise in temperatures.
• Banks & financial institution are
coming out with liberal schemes .
VIDEOCON
FOUNDED IN 1979
FOUNDER - NANDLAL MADHAVLAL DHOOT
TYPE - PUBLIC
NET REVENUE – US$2 BILLION (2010)
EMPLOYEES – 5,000(2010)
COMPETITORS:- LG, SAMSUNG, WHIRLPOOL & OTHER GIANTS
History
Largest manufacturers of Color Picture Tubes and Glass shells forming the backbone of many Color Television manufacturers around the world.
Videocon VCR Ltd. has collaboration with Toshiba Japan.
Videocon has tied up with Dolby Laboratories, USA, for use of Dolby Technology .
It collaborate with Samsung of Korea for manufacturing glass shells.
It has tied up with Akai to jointly flat new company to market the Akai range of products.
It had entered into a joint venture with Necchi group of Italy
HistoryIn 1984 launched Videocon International
LimitedIn 1987, Videocon started manufacturing of
B&W and color televisions Videocon emerged as India’s leading
brand of Color Televisions with in a decadeIn 1989, Videocon launched home
entertainment systems and air conditionersIn 1995, it introduced refrigerators and
coolersIn the mid-1990s, Videocon manufacture
CRT glass shells at Gujarat
Videocon India Products
White goods Consumer Durables is the major group of Videocon and it follows the strategy of multi-brand and multi-price. It is manufacturing goods with price range and brands. Videocon markets Sansui, Akai, and Toshiba besides its own brand, Videocon and the combined Videocon International market share are 16.8% by volume.
There are so many of white goods Consumer Durables by India manufactured by Videocon as:
Color televisionWashing MachinesAir ConditionersRefrigeratorsMicrowave OvensDVD Players
Strengths of Videocon
1. Videocon has excellent brand awareness2. Price of the Videocon products are quite satisfactory to the people3. Good geographical coverage4. It has better product range5. It’s economically strong
Weakness of Videocon1. Still it requires to increase
the quality of the product more
2. Poor in product body designing as compared to LG & Samsung
Porter’s model
Its Global Partners
Strategic Alliances & Acquisition
Multi-brand strategy- Videocon/Akai,1995
Electrolux, Kelvinator, Videocon merger in 2006
Videocon: From market leadership to overall brand consolidation
Package from Airtel, Videocon, Alcatel
Videocon's global strategy
Competitive Advantage
Cost of production Largest distributed
manufacturing base across India - 12 facilities
Managing a complex supply chain
Backward integration
Challenges and Criticisms
Competition in global CPT market
Rapid adoption of LCD technologies
A sharp drop in plasma and LCD prices
Issue of breaking new ground in terms of geographies
The consumer really is not price sensitive today
Financial Results01-APR-2010 to 30-JUN-2010 (Third Quarter)Net sales 289356.00 Rs. LakhsTotal profit 21369.00 Rs. Lakhs 01-OCT-2008 to 30-SEP-2009 (Annual) Net sales 428903.00 Rs. Lakhs Total profit 19591.00 Rs. Lakhs 01-OCT-2007 to 30-SEP-2008 (Annual) Net sales 1223705.00 Rs. Lakhs Total profit 144541.00 Rs. Lakhs 01-OCT-2006 to 30-SEP-2007 (Annual) Net sales 1259713.00 Rs. Lakhs Total profit 92333.00 Rs. Lakhs
Have both internal and external challenges e.g. profit vs. growth.
Samsung electronics Founded 1969Revenues US$ 117.4 billion (2008) Net income US$ 8.33 billion (2008) Owner Lee Kun HeeEmployees 164,600 (2008)
Samsung Electronics is the world’s largest company with 2009 revenue of $117.4 billion.
R&DInnovation is important to Samsung's
business. New technologies are constantly
introduced to the market, speed is important for competitive era in today's digital time.
Through the interplay of creative, imaginative people, Samsung has put R&D at the heart of everything they do.
42,000 people-work everyday in research and development.
Eco friendly products of Samsung
Ultra low power refrigerator and Air conditioner .
Mercury-free LED backlight unit monitor
Samsung provides absolute customer satisfaction through innovative products and service innovation initiatives.
STRENGHTS AND PERFORMANCEImproving product quality.Improving product safety.
STRATEGIES AND CHALLENGES.
Rivals for outsourcing production and desighn.
Have both INTERNAL and EXTERNAL challenges.
HISTORYAkio Morita & Marasu on 7th may 1946 set
up Tokyo Telecommunication Research Laboratories.
In1950, company entered into consumer electronic.
In1953, purchased the transistor technology
from at&t.In1955, Produced first transistor radio TR-55.
In1958, renamed the company as SONY.
Mergers,Acquisitions & Joint Ventures 1988-Sony Music Entertainment1989-Sony Pictures
Entertainment1993-Psygnosis Limited1995-Sony/ATV music Publishing1997-ST LCD Corporation 2001-Sony Ericsson2002-Aiwa
2004-Sony BMG Music Entertainment,S-LCD Co.
2006-Sony NEC Optiarc Inc., Digital Slr from Konica Minolta
Consumer ProductsTelevision & ProjectorHome VideoHome AudioHome Theatre System Digital PhotographyVideo Camera Portable AudioGame
Television, Home Video&Audio System
LCD: 16 products under 6 different series.
Video player : 10 products
Audio system: 31
Global Presence Head Office at Tokyo.
Globally present nearly above 100 countries.
Mainly manufactured in countries like USA,UK,Thailand,Malaysia,japan&China.
PRESENCE IN INDIA Head Office at Delhi .Branch Office at Guwahati ,
Kolkata, Ranchi, Chandigarh, Ghaziabad, Jaipur, Ludhiana, Luchnow , Panipat, Bangalore, Chennai, Coimbatore, Kochi , Hubli , Vijayawada, Hyderabad , Ahmedabad , Indore , Mumbai and Pune.
DISTRIBUTION7000 Total Channel Partners.1475 Dealers.215 Sony World’s.21 company owned service
centres and 172 authorized service centres.
Main Warehouse are Chennai & Mumbai.
SWOT ANALYSIS
STRENGTH Innovation Quality Brand strengthWEAKNESS Maintaining multiple function. Product Pricing.
Opportunities “Asset light” Strategy. T.V. Business Expansion T.V. Category and Gaming
Segment InvestmentTREATS Competitor competition Global Economic Recession .
FINACIAL SALES & OPERATING REVENUE (in
billions.) In 2008 : 8,871,414
In 2009 : 7,729,993
In 2010 : 7,213,998
INTRODUCTION The company was originally established in 1958 as
Goldstar, producing radios, TVs, refrigerators, washing machines, and air conditioners.
The L.G group was a merger of two Korean companies Lucky and Goldstar.
Is the second largest producer of television and third largest producer of mobile phones.
SWOT ANALYSIS
Strengths:- Market leader in home appliances.
Has got manufacturing unit in tax incentive .
Wide range of products to serve all categories.
Widest distribution network in the industry(47 barnches,10000 trade partners).
Good after sales service offered.
WEAKNESS. Samsung being its competitor provides similar
products.
Consumers compare L.G with Samsung its Korean rival not with other global companies.
Lack of expert operators for complex machines due to illiteracy and lack of training in India.
OPPURTUNITIES.
Fast growth of the home appliances market
Shifting to rural areas
Thus maintaining control over the market and the highest share in home appliances market
Threats Close competitors like Samsung are compared to it.
Price war with Samsung.
Competition from Indian brand and other foreign brands.
Growth planning
Growth strategy “fast innovation fast growth”
The new plant which is under development aims to reach a manpower base of 1500 people and an investment of Rs 300 crore till 2010.
Growth strategies aimed at gaining more customers from the 1.1 billion prospective customers of India.
STRATEGIC DECISIONS
Local and efficient manufacturing to reduce the cost
R&D potential
Regional channel and wide distribution network
Product localization
Innovative marketing strategy