market research for x lent series of products
DESCRIPTION
Hi Friends This is supa bouy I am a mentor, Friend for all Management Aspirants, Any query related to anything in Management, Do write me @ [email protected]. I will try to assist the best way I can. Cheers to lyf…!!! Supa BouyTRANSCRIPT
A PROJECT REPORT
ON
MARKET RESEARCH FOR X-LENT SERIES OF PRODUCTS
AT
VIDEOCON INTERNATIONAL, PUNE
SUBMITTED TO
UNIVERSITY OF PUNE
SUBMITTEED BY
G.P.CHANDRASHEKHAR RAO
MASTERS IN BUSSINES MANAGEMENT
2004-2006
VISHWAKARMA INSTITUTE OF MANAGEMENT
PUNE
This is to cert ify that proj ect report t it led Market Research of X-Lent Series
products of Viedocon Internat ional Ltd , is a bonafide Work carried out by
G.P.Chandrashekhar rao, student of Vishwakarma Inst itute of Management , for
partial fulfillment of MBA degree of University of Pune.
He has worked under our guidance and direction.
Dr. Sharad Joshi Prof. Rajesh Vhatkar
(Director) (Project Guide)
Date: Date:
Place: Place:
ACKNOWLEDGEMENT
It is a great pleasure for me to thank Videocon International Ltd. For granting me an opportunity to be associated with such a great organization as a summer trainee at there branch office, Pune.
I am very much thankful to my company guide Mr. Anirudha Rawat, for guiding me with valuable inputs throughout my training period. I thank Mr. Piyush and Mr. Irfan for always helping me to find the necessary details and data required last but not the least I am thankful to the staff for providing me the necessary support and kind co-operation.
This project would not have been computed without the guidance of our Director Dr. Sharad Joshi and my project guide Prof. Rajesh Vhatkar who have helped me from time to time.
I also thank the entire dealer and customers involved in this market research for their participation and co-operation.
Once again I express my sincere thanks and gratitude the above stated persons who have helped me directly and also to those who have helped me indirectly by all means.
G. P. Chandrashekhar Rao
Roll No. B0414
ABSTRACT
The Project at Videocon Internationals Ltd. is based on a Market research of the X-lent
series of products. In the project a market research is to conduct on two levels firstly on
the dealers and on customers, the sample is selected from a heterogeneous population of
the Pune region. In the next stage representation of data along with suitable finding is to
be added, the findings like product knowledge, competition mapping, price mapping,
promotion mapping are to be listed.
The survey is conducted through questionnaire and the relevant primary data obtained
from the survey needs to represent and analyzed, the project needs to look into the
relevance of X-lent product launch and its early market response. The aim is also to
establish some facts from the survey, which will further help to strengthen the products
knowledge among the population.
An exploratory study of the logistics system is to be done so as to analyze how the
inbound and outbound operations of such vast product portfolio is managed and see out
various benefits of the current system.
TABLE OF CONTENTS
Acknowledgements I
Abstract II
1. Executive Summary
2. Introduction to the company
2.1.1 Introduction
2.1.2 Milestones
3. Purpose, scope and limitation
3.11 Purpose and scope
3.12 Methodology and sources
4. Industry analysis
4.1.1 Product Analysis
4.1.2 Competition mapping
4.1.3 Price mapping
4.1.4 Promotion mapping
4.1.5 Distribution Analysis
5. Market research
5.1.1 Research Technique
6. Results and Analysis
7. Logistics a Study
7.1.1 Present System
7.1.2 Benefits
7.1.3 Conclusion
8. Recommendation and Conclusion
9. Conclusion of the Project
10. Appendices
10.1.1 History of Company
10.1.2 List of Technical details of products
10.1.3 Questionnaires
11. References
13. Glossary
1. Executive Summary
The project is titled as Market research for X-lent series of products . The main idea of
the project is to conduct a market research for the X-lent series of products launched
recently by the company Videocon International Ltd.
The Product range of the X-lent series comprises of television, refrigerator, washing
machine, air conditioners, and microwaves. The products are being targeted to the
premium segment of customers and the project aims to gauge the response on dealer s
side and the customers through research.
The project will be done in various phases the first phase comprises gathering
information related to the product and population, in the second phase a survey is to be
conducted on dealers and customers of Pune region through direct questioners, the
findings and representation of the research is to done in the third phase and in the last
phase all the findings and analysis along with conclusions and recommendation is to be
submitted in report format for further use.
In the same project an exploratory study of logistics system present in the company is to
be done, also the benefits o using such system is to be understood and conclusions are to
make based on this assumption.
The project aims at gauging response for the X-lent series of products and also
encourages similar surveys for other products at the organization.
2. INTRODUCTION
2.1.1 The Company
Videocon Internationals Pvt Ltd. Was founded in the year 1985 by Mr. Nandlal M Dhoot,
the company at the start manufactured colour television, components of various television
sets, air conditioners, and other cabinets. The company set up its operations to at
Aurangabad. Videocon was established with a vision to provide best services in the field
of consumer electronics and electronics goods at the best competitive prices. In a decades
time the company became one of the finest and highly acclaimed brand across the
country and expanded its business from consumer durables to various other products and
today it stands distinguished as a company with brands and products for each type and
each segment of customers.
Over the years company also earned huge customer base and also acquired many
companies on its march to the top and respectable brands in consumer electronics market.
The company now stands as the largest manufacture of colour television in the county; it
also has the cutting edge technology and also enjoys the brand loyalty. The product mix
today spans to television, DVD players, ACD/VDC/MP3 players, Mixers, air
conditioners, refrigerators, washing machine, plasma television, etc
As the company marched to the 21st century with a big product portfolio it expanded its
business across the length and breadth of the country, the company also went in for
export of electronic goods across the globe. And now aims at becoming one of the most
respected brands in the country. The company has now started a joint venture with e-mart
for its retail outlet chain called NEXT.
The newly launched product series X-lent has also placed the company products into the
premium segment that was not targeted till date. The series consists of varied products
like colour television, DVD, refrigerator, washing machine, air conditioner, and
microwave oven.
2.1.2 Achievements
Electolux to put in Rs. 500 crore into Videocon
Videocon and Thomson SA in circular deal for picture tube business
Launches energy saving Air Conditioners
Videocon inks pact with Korean co s for capacitors
Videocon inks pact with BCCI to sponsor Int cricket in India till 06
Launches first generation Internet TV for the domestic market
Obtains government approval for listing their wholly owned venture Videocon
Petroleum Ltd (VPL) in the New York Stock Exchanges.
Videocon International Ltd. Has launched an e-care service center for air-conditioners
to address customer complaints.
Videocon International Ltd. Is entering the Internet arena. Group chairman
Venugopal Dhoot said the company had obtained license to enroll itself as an Internet
service provider (ISP).
Paramount Global Ltd to market its products in the international market.
The company has also ser up 25 branches across the globe to give a fillip to its
international operations.
Television-based video phones are being introduced in India with an agreement
signed by Videocon International with a North Carolina-based company, C-Phone
Corporation
The Company also undertook to set up a centralized tool room and injection
moulding facilities at Aurangabad and 25 services centers at various locations in the
country.
3. Purpose, Scope and Limitations of the Project
Every project or study is bound by various parameters like scope its purpose and the
limitations the study has due to data or may be the scope this things will be discussed in
the section below.
3.1.1 Scope and Purpose
The Project is to conduct a market research for the X-lent series of products and gauge its
early response on basis of various parameters related to the product, which are, discusses
as below
To asses the X-lent series of products in respect of
1. Dealer feedback
2. Competitors mapping
3. Pricing
4. Promotion
5. Segment targeted
6. Product attributes
To solicit important feedback on the above-mentioned parameters.
To identify useful insights for the conduct of similar market research at other
branches of the company.
To generate initial response of dealers and customers about the products to
improve the product parameters studied.
The project since based on various factors will also have some shortcomings, which
needs to be looked into.
The success of the project depends on a few factors, which may limit its scope. The
project Proposes to conduct a Market research for the recently launched X-lent series
The response could be too early
Errors due to lack of scientific tools to identify samples which represent the
population heterogeneity.
Dealer bias because of past i.e. the dealer may be selling Videocon products for a
long time could also limit the scope of study.
The dealers who have been selling their products of Videocon Company may pose some
bias due to inclination, which may prove to be a limiting factor in the study.
3.1.2 Methodology and Sources
i) Phase One: Understanding the company and its products, the product under
study, various competitive parameters like, the market placement, competitive
analysis, USP (Unique Selling Propositions), launching and placement method
and other attributes relevant to the product series.
ii) Phase Two: This phase would include visits to various dealers and customers
to collect relevant data. Primary data will be collected through Questionnaire
and interviews with dealers and customers. This data will further be extended
through dialogues with company officials. The secondary data will be
collected trough websites, company files and brochures and other documents
of past and present.
iii) Phase Three: This phase involves analyzing the data collected in the earlier
phase. The analysis is conducted using statistical tools like Excel, SPSS.
The analysis consists of following parts.
a) Competitor Mapping, Product mapping, Price mapping, Placement Mapping,
b) Analysis of feedbacks from dealers and customers using discriminant and factor
analysis.
c) Interpretation of various analyses and reporting for the same.
iv) Phase Four: In this phase actual reporting of the findings and analysis will be
prepared and provide to the company.
The relevant data can also be further collected from various websites, interviews of
company officials and also certain company databases.
4. Industrial analysis
To understand the project we need to analyze the industry in terms of various factors,
here the analysis is done on parameters like product, competition, price, promotion,
and distribution. The detailed analysis of each parameter is discussed below.
4.1.1 Product analysis
Television:
21 Float Series 21 X-50 X-LENT
Surround Bass Technology
Digital Super Scene Control
5-ode selectable Picture
4-Mode Selectable Sound
6 Speakers
Child/TV/Panel Lock
Program Directory
Channel on Demand
The features disclosed above highlights various characteristics the products has over its
competitors, the 5 mode selectable picture is one which is absent in other models,
similarly selectable sound feature is an option provided only in this model.
29 Flat Series 29 X-50 X-LENT
Twin Tuner PIP
Surround Bas Technology
5-Band Graphic Equalizer
Built In Game
Self Demo
On-Off Timer
Child/TV/Panel Lock
Curtain Effect
Program Naming
The graphic equalizer is option available only in this product compared to LG, Samsung,
SONY and others also built in game is available in LG and the above mentioned model,
program naming is only available in SONY and Videocon.
DVD 33 W/S
SUPER SLIM 38MM
UNIQUE TOUCH SCREEN PANEL
DVD/VCD/MP3/SVCD/ACD/DVD-R/DVD-RE/CD-R/CD-RW/KODAK CD
COMPATIBLE
PROGRESSIVE SCANNING
ANEMOGRAPHIC SAMPLING
DOLBY DIGITAL AC-3, 5.1 CHANNEL
DTS DIGITAL OUTPUT
The slimness of this model is one of the advantages the user has, also anemographic a
relative term for selective sound and picture scanning is only available in this mode.
DVD 22 W
SLIM 43MM
ALUMINUM TYPE FRONT FINISH
DVD/MP3/VCD/SVCD/ACD/DVD-R/DVD-RW/CD-R/CD-RW/KODAK CD
COMPATIBLE
PROGRESSIVE SCANNING
ANEMOGRAPHIC SAMPLING
DOLBY DIGITAL AC-3, 5.1 CHANNEL
DTS DIGITAL OUTPUT
The compatibility provided by the model is excellent it works for all MPEG 2, and JPEG
5 standards, the DTS output is provided by only Onida and Videocon products.
DVD 44S
SLIM 43MM
KARAOKE FACILITY
DVD/MP3/VCD/SVCD/ACD/DVD-R/DVD-RDVD-R/CD-R/CD-RW/KODAK
CD COMPATIBLE
PROGRESSIVE SCANNING
ANEMOGRAPHIC SAMPLING
DOLBY DIGITAL AC-3, 5.1 CHANNEL
DTS DIGITAL OUTPUT
The Karaoke facility is one of the features that distinguish the model from others; also the
scanning is excellent in comparison to other products of Sharp, LG, and Samsung.
Refrigerators:
625 X-FF (625L)
FEATURES
625 Frost Free Technology
Stainless Steel finish
4 Star Cooling
Multi Air Flow System
Twist Ice Tray
Platinum
Auto Deodorizer
Vertical Handle
Dual Tone Finish
The auto deodorizer is one feature that was not provided till date by any refrigerator
manufacturer, the cooling effect is 12% more efficient compared to other company
models.
315 X-FF
Features
290 L Frost Free Technology.
Chrome Plated Door
Digital Omni Flow
CFC Free
Twist Ice Tray
Humidity Control Crisper
Six Year Warranty
The warranty is the longest in this range of refrigerators, the humidity control feature is
only provided by whirlpool and Videocon.
55 X-DC
Features:
50 L Direct Cool Stainless Finnish with Chrome plated Doors
Clean Back
European Auto Cool Technology
Table Top
With no Ice Tray
Six Years Warranty
The refrigerator is smallest provided by the company so far, also the features provided
make it only refrigerator suitable for office as well as residential purpose.
Washing Machine:
180X-FA
Features
8 Kg Top Loading Agitator Wash
Stainless Steel Finish
Fuzzy Logic / Digital Sensi Logic
Memory Control
Stainless Steel Drum
Delay start
Hot wash Inlet
Anti Rodent Base
Cursor Control
The operations like anti rodent base, delay start and cursor control are provided for first
time along with this model.
60X-FT
Features
Top Loading Tumble Wash
Individual Program Selection
Stainless Steel Finish
Caster Wheels with Lock
Light & Compact
Digital Display
Delay start
Variable spin Speed
The controls like individual program selection, caster wheels with lock are features that
are only provided by LG and Videocon.
Air Conditioner:
18X-SPCI
Features:
Ion Recharger
Anti Bacterial Filter
Auto Restart
Unique Steel Finish
18X-ELDXI
Features:
ESP Plasma Ionizer
Full Function Remote
High EER
Unique Steel Finish
24X-SPT
Features: NA
4.1.2 Competition analysis
The company s products in the X-lent series have a good competition from various other
brands in the market. Companies like LG with CTV like Marquis 1200, Golden Eye,
Sound master are in direct competition to that of X-lent series also LG s refrigerator,
washing machine, twin split AC s and microwave s are in the same segment as that of X-
lent, then the other competitor in the same CTV segment is Samsung with its products
like CS-29T10, CS-29T11, CS-29M16, CZ-21T3 also SONY the worlds most respected
company in terms of technology is a major competitor with its products in direct
competition with that of X-lent series products various segment competition mapping are
as shown below.
Colour Television competition mapping
Figure 4.1
The diagram above shows the position of various brands depending upon there
product portfolio there pricing and quality on X and y axis, the significance of the
Price
SONY
Phillips
LG
Samsung
Videocon
ONIDA
Quality
Panasonic
SHARP
AKAI
AIWA
diagram is that some brands over here are more on quality side while some are more
on pricing size.
From the diagram above we see that in the competition Videocon is a cost leader and
is also good on the quality frontier.
4.1.3 Price Analysis
Pricing plays a very important role in any buying decision; the pricing of the consumer
electronics product is based on the going rate pricing strategy here if one company raises
the prices similarly others follow and vice versa, also another pricing model is followed
which is called s discriminant pricing model here the products and features are nearly
same but companies discriminate there customers based on the service and product
offered hence this pricing model. Also the market conditions play important role over
here.
The price ranking for various companies is as shown below.
Price Mapping
0
5
10
15
20
25
30
35
40
VIL LG ONIDA PANASONIC AIWA
Companies
Su
rvey
Sca
le
Fig 4.2
The diagram above show the price mapping in the industry here lower the survey scale
value the company tends to be more towards the cost leadership or less prices model
offered, if the survey scale value is more the company is more towards quality and
charges higher prices.
Thus from the diagram above we get a picture of the pricing strategies of various
companies in the sector.
4.1.4 Promotion analysis
The companies in the consumer electronics market always follow very good promotion
strategies; in this sector a varied number of products are launched in straight competition
to other companies so the promotion strategies are designed in such a manner that they
directly highlight the USP (Unique Selling Proposition) for the product.
The tools generally used here for promotion are
Advertisements, Public Meetings, Exhibition, Dealer training, Individual selling,
Brochures, Direct Marketing, Online services, Schemes and discounts during the festive
season.
If we see out the percentage spending of these companies in promotions we can have
promotion mapping.
Promotion Mapping
0
5
10
15
20
25
VIL SONY ONIDA PHILIPS AIWA
Companies
% P
rom
oti
on
Fig. 4.3
The diagram above shows the company who spend most of their expenses on promotions
on a scale in % form.
Analyzing the above diagram we can see how much do the companies spend on
promotions in these industry
4.1.5 Distribution Analysis
The companies in the sector of consumer electronics follow different kind of distribution
strategies, the typical distribution model of Videocon Internationals Ltd. Is as shown in
the diagram below
Figure: 4.4
The diagram above gives us the details picture of how the products are distributed in
Videocon Internationals Ltd.
Head Quarters
Manufacture unit
Branch Office
At various places
Retailers
Distributors at various locations
Company owned Retail house
Retailers
Retailers
Retailers
Sub Retailers
Sub Retailers
Sub Retailers
Sub Retailers
5. Market Research
The section deals with various processes and techniques used in the market research. The
section discusses about the sample, sample size, population, method, etc.
5.1.1 Research technique
Research Methodology: The study falls under the category of descriptive research,
descriptive research includes survey and fact finding enquiries of different parameters
related to the X-lent series of products. The method of research in this project is the
survey method.
The Main characteristics of this method are
It collects Primary as well as secondary data
It tends to be rigid so it has no control over the variables or deviation
The research is used to gauge the early response for the X-lent series of products from
Videocon in the Pune region. The response was collected through questionnaire, which
covers all aspects desired.
Sampling Method: Random Sampling based the on criterion that the dealer should have
X-lent series of Products.
Population: All Videocon dealers in business and population of Pune for the customer
survey.
Sampling Unit: dealers with Brand X-lent from Videocon
Sample Size: The number of dealers visited is 23
The number of customers 43
Sampling Frame: The Dealers list provided by the corporate office of Videocon
Internationals Ltd at Pune.
The questionnaires are in appendices no 10.3 for reference.
6. Results and analysis
The Results obtained from dealer s questionnaire give us following insights
The dealer s visited carry a variety of brands with large number of products the following
interpretation was made based on the above findings.
Shelf Space becomes limited if a multi brand showroom exists
POP s and displays in the available shelf space do not resemble products USP
The existence of various products also reduce the products visibility
The area of showroom is good but multi brands make it crowded
Results
A showroom should not contain more than 7 brands so that it withstands the visibility of
the products it carry, it also helps to give better promotion and attention to less crowded
displays, it adds on to customer flexibility. The survey conducted shows the following
result.
Brands on Display
2
13
7
7 brands
> 7 brands
< 7 brands
Figure: 61
The Dealers are more interested in the credit policy offered and the margins they get on
selling the company s product, when the survey asked the dealers questions related to
credit policy and margins the response was mix.
Out of the 22 dealers 19 replied that the margins were same for all the companies which
gives a clear picture that dealers are in unison on there view about margins, but when
asked about credit policy and other benefits the dealers had different view, the views are
as follows.
They wanted extended CD (Cash Discounts)
The dealers demanded better credit policy.
The dealers and retailers also asked for certain benefits like sharing of
promotional activities.
The results above signify that market today demands better credit policy and also demand
various discounts on purchases so that they can effectively manage their resources.
In today s market were the Supply chain extends from the manufacturer to retailer we
need to optimize the profit of the chain by sharing of information and various resources
so a change in policy on the company s side will extend greater support from the dealer
side.
The results for best margins, easily saleable products, and in demand products from the
customer side are as follows
Best Margins
17
3 31
5
02468
1012141618
Videocon Samsung Onida Sharp LG
Companies
Nu
mb
er o
f D
eale
rs
Figure: 6.2
The above result signifies that as many as 17 dealers agree that Videocon provides the
best margins, also the result highlights the fact that the margins play a key role in
dealer satisfaction.
When asked about the easily saleable brands the dealers responded that Videocon is
most easily saleable brands, followed by others. This gives us an indication why
dealers prefer Videocon in terms of sales and margins.
When asked about customer demand the dealers replied that the brands LG, Samsung,
followed by Videocon and SONY are highly demanded and a lot of enquiry is made
about these brands from customer.
This result gives an indication of brand recall on customer side.
Easily Saleable Brands
11
87
5
2
5
2
0
2
4
6
8
10
12
Videocon LG Samsung Sony Sharp Onida Whirlpool
Companies
Dea
lers
Res
po
nse
Fig. 6.3
Brands Demamded
13
10
5
8
2
9
0
2
4
6
8
10
12
14
LG Samsung Onida Videocon Sharp Sony
Companies
Dea
lers
Res
po
nse
Fig. 6.4
The questions pertaining to brand X-lent and Videocon s national brand image, the
following results were obtained.
The dealers in a unison responded to the question related to the knowledge of X-lent
series. This signifies that the brand was properly promoted.
When asked about the sales of x-lent series products, the dealers provided the figures,
which indicated that maximum sales on monthly basis were obtained for CTV
(Colour Television) followed by Refrigerators, DVD s Washing machine and others.
This gives us an indication that market demand for TV s and Refrigerators is higher
than any other products in the range.
Awareness about brand X-lent
19
3
Yes
No
Fig. 6.5
Sale of X-lent products
30
8
1
0
0
6
Television
Refrigerator
Washing Machine
AC's
Micro Wave
DVD
Fig. 6.6
The response from the dealer side on whether they have received information and
training is as follows and the general perception of dealers about the brand Videocon
is also shown over here.
Information and Training
5
17
Yes
No
Fig. 6.7
Ranking of Videocon
5 5
7
4
2
0
1
2
3
4
5
6
7
8
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Ranks
Dea
lers
Res
po
nse
Fig. 6.8
The dealers responded in rater negative mode on the question of training and
information brochures, this shows us that the company is not providing adequate
training and information about the products. Which is direct complaint from
maximum dealers.
When dealers were asked to rate Videocon on national rank maximum rated it as
India s no. 3 brand on an overall basis.
These are various results gathered from through questionnaires, the customers
response is also shown in detail with nearly the same resemblance as that of dealer s
response.
Customers Income
10
22
12
< 3 lakhs
3-5 lakhs
>5 lakhs
Fig. 6.9
When customers were asked about there income group we found that maximum
customers were in the income group of 3-5 Lakhs which is also the target segment for
the X-lent series of products.
Customer Preference
1816 15
129 9
3
12
0
5
10
15
20
Quality
Techn
ology
Brand
Price
Avalia
bility
Schem
es
Financ
e
Servic
e
Parameters
Res
po
nse
Fig. 6.10
When asked about what parameters do they consider while buying consumer
electronics product they suggested that quality was of utmost importance, followed by
technology used for the product, then the brand of the product, then they looked in for
price and at last the parameters like availability, schemes on purchase, finance
options, service is also an important factor.
Awareness of X-lent Series
8
36
Yes
No
Fig. 6.11
When asked about awareness of the X-lent series of products 36 customer responded
by saying that they did not knew about the series this signifies that promotional
activities undertaken by company are not up to mark.
Rating for Videocon Products
1
6
26
10
3
0
5
10
15
20
25
30
Point 1 Point 2 Point 3 Point 4 Point 5
Scale
Res
po
nse
Fig. 6.12
When asked to rate Videocon Products on a scale of 1-5 maximum rated it at 3 this
signifies that Videocon products are good.
Ranking for Videocon as brand
4
7
10
15
8
0
2
4
6
8
10
12
14
16
Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Ranks
Res
po
nse
Fig. 6.13
When asked to rate Videocon as a brand maximum of them rated it at rank 4 they said
that LG is the prime followed by Samsung and then SONY.
Parameter responses for Products
2
96
24
2
14 1512
86
1216
1216
2124
16
86 7 8 8 8
42 3
52
6
0
5
10
15
20
25
30
Quality
Servic
es
Techn
ology
Availa
bility
Satisf
actio
n
Compe
tition
Parameters and Points
Res
po
nse
s Point 1
Point 2
Point 3
Point 4
Point 5
Fig. 6.14
The parameters and the point awarded fort that factor against responses are shown in
the graph above. Here if we look at the quality aspect of Videocon product then we
see that point 1 for Videocon in terms of quality is recorded for two customers, point
2 by 14 customers, point 3 by 16 customers, point 4 by 8 customers, and point 5 by 4
customers, this is for one factor and similarly can be extended for other factors.
The results obtained from various survey questionnaires are shown above a detailed
analysis and the related recommendation will be discussed in alter section.
The data and results obtained are from various parts of the city and so do the
customer base this limits the discriminating power of data hence we cannot apply a
discriminant analysis to this sample data, types hence factor analysis cannot be
applied. To apply any of this method and see the variability and factoring for data we
need to survey one more city sample that of a different city.
7. Logistics a study
Logistics at any manufacturing or for that matter any organization or store plays an
important role, in today s competitive environment business organization want to stay
ahead of there competitors in every respect need to build a strong logistics model.
7.1.1 Present system
Videocon is one of the major manufacturing company in the field of consumer
electronics and home appliance sector, the area of operations spread across length and
breath of company also it has some exports to manage along with the domestic business.
So it is necessary for the company to have a good logistics system in place, the company
today has outsourced its logistics to a company called GEO logistics.
To know the model in place at Videocon let us analyse the simple model
Demand generated Supply of the order
Supply
The model defines how in a simple manner the warehouse that is controlled by the
logistics company meets the response or demand generated from the corporate office, and
after the material is supplied it is then supplied to the required dealers.
The logistics system used here is also referred to as third party logistics system and this
type of systems are used on large scale and by much number of companies in today s
environment.
Head Quarters
Warehouse
Corporate Office
Warehouse 2
Dealers
Dealers
The logistics model applied at the company gives very les control to the parent company
and whole responsibility is transferred to the outsourced company which in turn is
responsible for all the logistics related problems the company faces. This model is highly
efficient for companies like Videocon and helps in reducing overheads and lot of other
expenses related to logistics.
7.1.2 Benefits
The current process stands good and provides various advantages to the company; the
system follows the suite of 3 PL (third party logistics system).
In this system we have the following advantages
All suppliers and the company provide the demand schedules to the logistics
provider.
The cycles of orders are clearly mentioned
The company need not worry about deliver of goods
There is a huge amount of cost reduction in logistics of company
The amount of order and delivery cycle are provided by the company to logistics
period
Also the company can now manage inbound and outbound logistics in a
structured manner.
The process here is best suited for operations of Videocon, but is can further be modified
by use of IT as a tool, here the company needs to follow the model of information
sharing. In this model every dealer and corporate office provide their demand schedule
for the cycle of 28 days, the order cycle is provided to head office. The HO looks into the
order requirements and with appropriate changes provide the necessary supply to the
logistics provider.
Instead if everybody in the chain the dealers, corporate office, and the head office share
information through means of IT the logistics provider can deliver the order in shorter
span of time, also there will be drastic cost reductions which will further lead to effective
management of the logistics at Videocon.
7.1.3 Conclusion
The model at Videocon is appropriate and meets the current demand at a good efficiency,
but with some modifications and restructuring of the processes the model can be more
effective and structured to meet future requirements.
The suggestive IT model can be as shown below
Figure 7.2
Head Office
Corporate Office
Corporate Office
Logistic Provider
Dealer
Dealer
Dealer
Dealer
8. Recommendations and Conclusions
The project over its span of three months has come across various functioning department
of Videocon International Ltd based on the study various recommendations and
conclusions are made as follows.
Recommendations
The company needs to focus more on the shelf visibility for products
The company needs to improve upon its sound quality for televisions
The company needs to make more informative brochures for dealers and
customers
The company needs to focus on training for sales of its products.
The company needs to focus on its demo and after sales services.
The company needs to improve on quality aspect since it stands at lower rank for
quality products compared to its competitors.
The company needs to provide its products like refrigerators, AC s washing
machines and microwaves to more dealers and retailers.
The company needs to concentrate more on refrigerators; AC s and washing
machine segment were it has less brand recall.
The company can achieve better logistics efficiency by use of IT tools.
Conclusions:
Following the study closely and analyzing every aspect emerging from the study
following conclusions can be drawn as follows
Videocon as brand is well known and has a good recall for TV s
Videocon has positioned itself very well as cost leader
Videocon enjoys the edge of being an Indian Company
Videocon also has a good distribution network.
Videocon has a good logistics system at work.
These are some of recommendations and conclusions emerging out of study.
9. Conclusions of the project
The project at Videocon was Market research for X-lent series of products, the project
needed to gauge early response from dealers and customers regarding the products
knowledge, price, quality, promotion, and distribution.
The project was done on the basis of questionnaires and direct interviews with dealers
and customers, the data was then analyzed and represented to get some useful insights
about the research.
After the research was carried out various recommendations and conclusions were
derived from the results obtained.
10. Appendices
10.1.1 History of the company
1985 A marwari businessman Mr. Nandlal M Dhoot founded company.
1987 Equity share allotment took place with major portion in the hands of promoters
and Indian investor.
1989 The Company undertook to set up facilities for the assembly and packaging of
integrated circuits from imported diffused wafers and the manufacture of black
& white television at Aurangabad in Maharashtra.
1991 The Company undertook to set up facilities for the assembly and packaging of
integrated circuits from imported diffused wafers and the manufacture of black
& white television at Aurangabed in Maharashtra.
1996 The Company has entered into a Joint Venture with the Nicchi Group of Italy,
which is one of the largest manufacturers of compressors in the world.
1997 Videocon International, through its joint venture company with Gujarat
government Videocon Narmada electronics limited.
Television-based video phones are being introduced in India with an agreement
signed by Videocon International with a North Carolina
Based company, C-
Phone Corporation
1998 Videocon and Necchi had also floated a joint venture company in India to
manufacture six million electric motors for compressors and domestic
appliances at facilities in maharashtra and Karnataka.
1999 Akai India Ltd, a 70:30 joint venture between the Videocon group and Akai
Electric Company of Japan, has been renamed Akai Consumer Electronics and
Home Appliances India Ltd. The two companies had finalized a joint venture
agreement on March 15.
2000 Videocon International Ltd is setting up an appliance production facility in
Bangalore to be operated in name of Aplicom India Ltd (AIL), a joint venture
between VIL and Nechi Compressor of Italy.
2002 Launches first generation Internet TV for the domestic market
10.1.2 Technical specification of products
21 Flat Series 21X-50 X-LENT
Picture Tube 54cm Pure Flat Picture Tube
PAL B/G, CCIR, CATV, NTSC Playback (3.58
Receiving System & 4.43)
Power Source 110-240V, AC, 50-60Hz
Audio Output
(PMPO) 1800W PMPO
Antenna Input 75 Ohm Unbalanced
Unit Dimensino (L
X W x H) 63.3cm x 51.7cm x 57.7cm
Weight
(NET/GOSS) 31.5 Kg / 36 Kg
29 Flat Series 29X-50 X-LENT
Picture Tube 74cm Pure Float picture Tube
PAL B/G, CCIR, CATV, NTSC Playback (3.58
Receiving System & 4.43)
Power Source 110-240V, AC, 50-60HZ
Audio Output
(PMPO) 1800W PMPO
Antenna Input 75 Ohm Unbalanced
Unit Dimension (L
X W x H) 79.5 cm x 55.4cm x 65.7cm
Weight
(NET/GOSS) 52.2 Kg/57.3 kg
625X-FF (625L)
Door Finish Stain Steel Finish
Door handle Vertical
Freezer Transparent
Vegetable Tray Yes
Deodorizer Platinum Auto Deodorizer
Germ Free Yes
Dimensions in mm
(W*D*h) 754*755*1828
Weight (In Kg) 95
315X-FF
Door Finish Steel
Door Handle Chrome Plated
Humidity Control Yes
Chilled Room Transparent
Crisper Yes
Deodorizer Yes
Germ Free Yes
Dimensions in mm
(W*D*H) 570* 580* 1525
Weight (In Kg) 55
80X-FA
Wash Capacity 8 Kg
Power Supply 240V / 50Hz AC
Water Level 117L- 225L
Rated Power
Consumption Wash -670watt/Spin-350wtt
Weight 53Kg
Dimension 610:*610W*1010H
60X-FT
Wash Capacity 5Kg
Power Supply 230V/50Hz AC
Water Level 25L-42L
Rated Power
Consumption 650 watts
Weight 55 Kg
Dimension 600 L* 400W* 890 H
10.1.3 Questionnaires
Dealers
Q.1. What are the products you keep and which company they belong?
Videocon Akai Aiwa
Toshiba LG Samsung
Godrej SONY Sansui
Onida Sharp Whirlpool
Kelvinlator Electrolux TCL
Phillips T-series Panasonic
Q.2. Since how many years you are in operations? And the product areas you cover?
0-5 years Television
5-10 Years Refrigerator
10-15 years washing machines
15 and above Others
Q.3. What kind of credit policy does the company offers you? Which according to you
is the best.
Q.4. Which company provides you the best margins and other facilities?
Q.5. Which company s product is easily saleable and also has a greet demand in the
market?
Q.6. Do you know about the brand X-lent from Videocon, what all products of this brand
you have?
Q.7. How is the response and what are average monthly sale?
Q.8. Are you happy with the training and information provided to you?
Q.9. How to you rate the company in the Indian context?
Customer
Q.1. What is your.
Name Age
Back Ground Avg. Income
Q.2. Do you own
House Mother Cycle Car
Credit Card Bank Account
Q.3. What are your expectations from a product in consumer electronics market?
Quality Technology
Branch Price
Availability Schemes
Finance Service
Q.4. Do you about the X-lent series of products from Videocon?
Q.5. Have you used any of the products from Videocon before?
Q.6. How do you rate Videocon on scale of 1-5?
Q.7. Do you have any X-lent Product, if yes what it is?
Q.8. What is your rating for the product on the scale of 1-10?
Q.9. Do you rate Videocon higher than other brands? What is your rank?
Q.10. Are you satisfied with the services provided by the company and the schemes
available on purchase?
Q.11. How do you rate company s various products on the following parameters?
Point 1 Point 2 Point 3 Point 4 Point 5
Quality
Service
Technology
Availability
Satisfaction
Competitors
Product in
the same
range
Q.12. What else do you expect from the company? What other products do you think
the company should manufacture?
11. Reference
www.videocon.com
www.onestopshopping.com
www.questionnaireonline.com
www.lgindia.com
www.samsungworld.com
www.sony.com
www.sharp.com
www.haieraplliances.com
www.panasonic.com
www.phillips.com
www.cygnusindia.com
www.icfai.org
www.cmie.com
Case studies of India industry
12. Glossary
A
ANEMOGRAPHIC SAMPLING: the method of sampling that provided you effective
sound and picture selection
Awareness of brand: the process in which through a direct question you gauge the brands
knowledge
B
Best margins: the process in which through direct questionnaire you gauge best margins
provided by a particular company.
C
Cost leader: a company that positions itself as a low cost service and product provider is
called a cost leader
D
Discriminant Pricing model: the model of pricing were the company were the same
product with same features is priced differently to the different customer based on
services adhered by the customer.
G
Going rate Pricing: the model in which generally the market trends are used as pricing
technique.
K
Karaoke: the process of sound mixing for better sound clarity.
M
Mapping: the process in which based on two parameters on X and Y-axis you produce a
graph of parameters like price, product, competition and distribution is called mapping.
P
PMPO: Peak output provided by an electronic sound device.
S
Sound scanning: the process in which various sound channels are scanned to have a
superior sound channel.
U
USP: Unique Selling Proposition, the single attribute of a product that uniquely defines
the product s selling point is called USP.
This document was created with Win2PDF available at http://www.daneprairie.com.The unregistered version of Win2PDF is for evaluation or non-commercial use only.