experience change

8/7/2019 Experience change

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Experience



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ØAN INTRODUCTION



Videocon ….at a glance

Ø Founder : Late Nandlal Madhval DhootØØ Videocon is an Indian multinational company

with interests in Consumer Electronics, HomeAppliances , and Colour Picture Tube Glass.

ØØ In 1987, it used to manufacture TV and Washing

Machine.

Ø

Ø In 1989-90, Videocon started manufacturingHome Entertainment Systems,Electric Motors& AC.

ØØ Videocon entered Refrigerators and

coolerssegment in 1991.

Ø :Fou nd er Late N an dlalM adh valD ho otØØ V id e o co n is a n In d ia n m u ltin a tio n a lco m p a n y w ith

, ,in te re sts in C o n sum e r E le ctro n ics H o m e A p p lia n ce s a n d.C o lo u r Pictu re Tu b e G la ss

ØØ , .In 1 9 8 7 it u se d to m a n u fa ctu re T V a n d W a sh in g M ach in eØØ - ,In 1 9 8 9 9 0 V id e o co n sta rte d m a n u fa ctu rin g H o m e

, & .E n te rta in m e n t S yste m s E le ctric M o to rs A C

ØØ V id e o co n e n te re d R e frig e ra to rs a n d co o le rs se g m e n t in

.1 9 9 1ØØ ,In 1 9 9 5 V id e o co n sta rte d m a n u fa ctu rin g G la ss

sh e lls fo r C R T

V ID E O C O N A T A G L A N C E



CONTD…

• In 1996 it ventured into Kitchen

appliances .• In 1998, Videocon started

manufacturing Compressors &Compressor Motors.

•

In the year 2000, Videocon tookoverPhilips Color TV Plant.

• In 2005, Videocon tookover 3 plants of Electrolux India and acquiredThomson CPT.

• Today, it has evolved into a giantconglomerate with annual revenuesof overU$4.1 billion.

Ø .In 1 9 9 6 it ve n tu re d in to K itch e n a p p lia n ce sØØ ,In 1 9 9 8 V id e o co n sta rte d m a n u fa ctu rin g

& .C om p ressors C om p ressor M otorsØØ ,In th e ye a r 2 0 0 0 V id e o co n to o kove r Ph ilip s C o lo r T V

.Pla n tØØ ,In 2 0 0 5 V id e o co n to o kove r 3 p la n ts of E le ctro lu x

.In d ia a n d a cq u ire d T h o m so n C PT

ØØ ,To d a y it h a s e vo lve d in to a g ia n t co n g lo m e ra te w ith

.a n n u a lre ve n u e s of o ve rU $ 4 1 b illio n

…CONTD



19%15%

22%

13%

5%

3%

6%

1%

2%

2%

12%

LG

Samsung

Videocon Group

Mirc Group

BPL

Sony

Phillps

PanasonicSharp

Thomsan

Others

CONSUMER DURABLES MARKET



Videocon has a good foot hold in the.CCTV segment

Television



WASHING MACHINE

Videocon has a good strength in washing machine sector



REFRIGRATORS

Videocon needs to capture a large area or segment in refrigrator sector



Consumer Electronics Home Appliances

Televisions Refrigerators

VCD players Washing Machines

Mobile Phones Microwave Ovens

Audio Systems Air Conditioners

LCDs , LEDs

STRATEGIC BUSINESS UNIT

Ø An SBU in a strategic management sense, is anentire division in large corporations thatcarries out certain business. This approachentails the creation of SBU to address eachmarket in which company is operating.

ØØ Videocon is operating in following products.



Porter’s Five Force

Model

Porters Five

Force

:Rivalry and competition High:Power of suppliers moderate to low

Threat from substitute product /s servic

;High to moderate depends on the produ

:t from new entrants moderate

:Power of buyers high



Contd…

vDeterminant of supplier power

ØCost of switching supplier.

ØPresence of substitute input.

ØImportance of volume to supplier.

•



Swot analysis

•

•

Strengths Weakness

Backward integration.Diversified goods portfolio across Consumer DurablesSector.Multi brand strategy.Global company.

Image of low to medium cost company .Diversification into too many sectors.Not much international recognition.Too much rebranding/ changing of positioning.Weak sales and service network.

Opportunities Threats

India is big consumer durables market and growing at 10 to 15% .Lifestyle of people has been change very much so there isdemand for premium products.consumer durable market will become $158 billion by 2015.

Overall number of rural households estimated togrow from 135 million in 2001-02 to 153 million in2009-10

Stiff competition from MNCs like LG, Samsung, SONY.Cheaply available of chinese products.Virtually not able to establish the products for online sales andmarketing.Local brands available in the market.



?

MARKET

GROWT H RA

TE

HIGH

LOW

RELATIVE MARKET SHARE

BCG MATRIX

,LCD LEDs



)1 Geographic Segmentation

In the colder regions sales of the refrigerators is much less than the colder regions so geographic

conditions play a very vital role in product.segmentation Similarly other products are

,influenced by the climatic conditions different

.locations and regions

)2 Demographic segmentation

This part of segmentation is done on the basis of

. , , , ..age gender income family size income etc For egthe Sale of LCDs and LEDs depend upon income of the customer and also sale of Air Conditioners also

.depend upon the purchasing power of the customer

SEGMENTATION



3 ) Behavioral Segmentation

It totally depends upon the usage rate of the customer and the loyalty of the customer towards the.company For example washing machines shows the best

example for the consumer loyalty towards the.videocon

)4 Psychographic Segmentation

,In this segment luxurious goods personality and

lifestyle of the customer effects totally,Goods like air conditioners and plasma panels home

.theaters are segmented

…CONTD



Tows matrix

•

Strengths.

Diversified goodsportfolio.Multi brandstrategy.

Weakness.

Weak brand image.Not much.internationalrecognition.

Opportunities.

Market growingvery fast.Lifestyle changesare creating demandfor premium

products.

SO analysis

Provide customizedproducts accordingto preferences of consumers.

WO analysis

Improve the brandimage to capture themarket.

Threats.Stiff competitionfrom MNCs.Local brandsavailability.

ST analysisUse its brand basketeffectively tocompete withcompetitors.

SW analysisMore expenditure onadvertisement andcustomer relationship

management is



Marketing mix

7ps

Product Place

Price

Process

Physical evidence People

Promotion



1. Product

Consumer electronics Home appliances

LCDs Washing machine

LEDs Refrigerator

CTVs ACs

DVDs and Home theatre Microwave oven



2. Price

• Value pricing.

• Promotional pricing.

• Bundling.( Combo offers )



3.Promotion



6. People

Videocon has an environmentwhich is-

-Driven by Performance -Strong Value base -Empowered

-Inclusive -Diversified Talent base -Fun-filled

•



7. Physical evidence



Videocon branding

o .New logo Unveiled on 2nd ,July 2009o ‘ ’ ,The new V composed of two animated green showing going green

.lava like shape called chouw and mouw

experience change

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