market research for x lent series of products

56
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 P UNE

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TRANSCRIPT

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.

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