videocon by etanshu (1main

7/22/2019 Videocon by Etanshu (1Main

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PROJECT REPORTON PRODUCT AND SERVICES

OF

VIDEOCON

Submitted in Partial Fulfillment for the awardof

Degree of Bachelor of Business

Administration

MAHARAJA AGRASEN INSTITUTE OF

MANAGEMENT STUDIES(PSPArea, Sector-22,Rohini,Delhi-110085)

Affiliated To:

GURU GOBIND SINGH INDRAPRASTHA

UNIVERSITY


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ACKNOWLEDGEMENT

Videocon International Ltd. Success in my endeavor calls for

cooperation and guidance from seniors and colleagues. This

was simply brought out to me while making this Project. A

special note of Thank goes to Ms.Smita Tejwani for her

guidance while undergoing this project. I would like to convey

my heartfelt gratitude to Ms.Smita Tejwani for the trust she

showed in me in assigning me an important and interesting

project by sparing time for me from her busy schedule to

discuss and clarify various issues connected with this project,

for her friendly advice and the motivation she provided me inthe completion of the project. It was an enlivening and

worthwhile experience to work on. My Thanks would be

incomplete without Thanking Almighty God for his superlative

support and blessings.

Etanshu Garg(BBA B&I 3rdSEM 2

ndYEAR)

(05061101811)


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CERTIFICATION

This is to certify that ETANSHU GARG has completed

his project report entitled products and services of

Videocon as a part of partial fulfillment of B.B.A (B&I)

programme from Maharaja Agrasen Institute of

Management Studies, affiliated to Guru Gobind Singh

Indraprastha University, under my guidance and his

work is original.

Ms.Smita Tejwani

(Project co-ordinator)


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EXECUTIVE SUMMARY

I have decided to present minor Project on Videocon afterstudying its Product Range and Services. I worked on D2Hservice of Videocon India Ltd.

I have chosen Videocon for many reasons. It is one of thebiggest Indian Electrical brands not only in India but alsoglobally. Indeed, Videocon is one of the fastest paced ElectricalProducts worldwide. Videocon thus posed an excitingopportunity to study a brand that is automatically associatedwith youth and technology.

I worked on Videocon in order to understand the various

aspects of its marketing strategy that has made it the Number 1MNC of India.

I focused on its strategies in D2H servicein comparesonwith TATA SKY, DISH TV,SUN TV, AIRTEL, BIGTV etc.


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Table of Contents

S.No. TOPICS PAGE No.

1

1.1

1.2

Introduction

>Overview

>Objective

1

2

3

2 Company Profile

History

Customers, Corporate and

Videocon

Ambitions and Technology

Success Stories

Visionary Videocon

Landmarks

4

4

5

7

11

13

14

3 Research Methodology 15

4 Analysis and Findings 16

5 Threats of Entrance 25

6 Distribution Channels 34

7 Recommendations & Suggestions 41

Bibliography42

Annexure..43


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VIDEOCON

Chapter 1Introduction

1.1Purpose of the Study

Videocon is a company hard to pass by as it was one of the few Indian Companies

to be listed in Fortune 500 besides being initial Indian MNC. With its wide range

of electrical product range. I choose Videocon D2H which providing satellite

television direct to TV without any set top box also and I undertook this study to

make comparison between Videocon D2H and its competitors products.

1.2Research objectives of the Study

To do Comparative study of Videocon D2h with its competitors products.

To do study on aspects like product line, technology, distribution, marketing,

innovation, competition and growth of DTH industry.

To draw the various conclusions and recommendations on the basis ofthe study conducted.

1.3Research Methodology of the study

Every project work is based on certain methodology, which is a way to

systematically solve the problem or attain its objectives. It is a very important

guideline and lead to completion of any project work through observation, data

collection and data analysis.

According to Clifford Woody

Research Methodology comprises of defining & redefining problems,

collecting, organizing &evaluating data, making deductions &researching to

conclusions.


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Research methodology is considered as the nerve of the project. Without a proper

well-organized research plan, it is impossible to complete the project and reach to

any conclusion. The project was based on the survey plan. The main objective of

survey was to collect appropriate data, which work as a base for drawing

conclusion and getting result.

Therefore, research methodology is the way to systematically solve the research

problem. Research methodology not only talks of the methods but also logic

behind the methods used in the context of a research study and it explains why a

particular method has been used in the preference of the other methods.

Accordingly, the methodology used in the project is as follows: -

Research Design

Methods of data collection

Limitations of the study

1.3.1 Research Design

Research design is important primarily because of the increased complexity in the

market as well as marketing approaches available to the researchers. In fact, it is

the key to the evolution of successful marketing strategies and programmers. It is

an important tool to study buyers behavior, consumption pattern, brand loyalty,

and focus market changes. A research design specifies the methods and procedures

for conducting a particular study.

According to Kerlinger, Research Design is a plan, conceptual structure, and

strategy of investigation conceived as to obtain answers to research questions and

to control variance.

Types of Research design

Descriptive Research

The type of research adopted for study is descriptive. Descriptive studies areundertaken in many circumstances when the researches is interested to know the


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characteristic of certain group such as age, sex, education level, occupation or

income. A descriptive study may be necessary in cases when a researcher is

interested in knowing the proportion of people in a given population who have in

particular manner, making projections of a certain thing, or determining the

relationship between two or more variables. The objective of such study is to

answer the who, what, when, where and how of the subject under investigation.

There is a general feeling that descriptive studies are factual and very simple. This

is not necessarily true. Descriptive study can be complex, demanding a high degree

of scientific skill on part of the researcher.

Descriptive studies are well structured. An exploratory study needs to be flexible in

its approach, but a descriptive study in contrast tends to be rigid and its approachcannot be changed every now and then. It is therefore necessary, the researcher

give sufficient thought to framing research. Questions and deciding the types of

data to be collected and the procedure to be used in this purpose. Descriptive

studies can be divided into two broad categories: Cross Sectional and

Longitudinal Sectional . A cross sectional study is concerned with a sample of

elements from a given population. Thus, it may deal with household, dealers, retail

stores, or other entities. Data on a number of characteristics from sample elements

are collected and analyzed. Cross sectional studies are of two types: Field study

and Survey. Although the distinction between them is not clear- cut, there are some

practical differences, which need different techniques and skills. Field studies are

ex-post-factor scientific inquiries that aim at finding the relations and interrelations

among variables in a real setting. Such studies are done in live situations like

communities, schools, factories, and organizations.

Another type of cross sectional study is survey result, which has been taken by me.

A major strength of survey research is its wide scope. Detail information can be

obtained from a sample of large population .Besides; it is economical as more

information can be collected per unit of cost. In addition, it is obvious that a

sample survey needs less time than a census inquiry. Descriptive research includes

survey and fact finding enquiries of different kinds of the major purpose.

Descriptive research is description of the state of affairs, as it exists at present. The

main characteristic of this method is that the researcher has no control over the

variables; he can only report what has happened or what is happening. The


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methods of research utilized in descriptive research are survey methods of all kinds

including comparative and co relational methods. The reason for using such needs

to be flexible in its approach, but a descriptive study in contrast tends to be rigid

and its approach cannot be changed every now and then.

Exploratory Research

In the case of exploratory research, the focus is on the discovery of ideas. In a

business where sales have been declining for the past few months, the management

may conduct a quick study to find out what could be the possible explanations

the sales might have declined on account of a number of factors, such as the

deterioration in the quality product, increased competition, inadequate orineffective advertising, lack of efficient and trained salesmen or use of the wrong

channels of distribution. In such a case an exploratory may be conducted to find

the most likely cause.

An exploratory study is generally based on the secondary data that are readily

available. It does not have a formal and rigid design as the researcher may have to

change his focus or direction, depending on the availability of new ideas and

relationships among variables. An exploratory study is in the nature of a

preliminary investigation wherein the researcher himself is not sufficiently

knowledgeable and is, therefore, unable to frame detailed research questions.

Therefore, the objective of this is to generate new ideas.

Casual Research

To understand which variables are the cause (independent variables) and

which variables are the effect (dependent variables) of a phenomenon

To determine the nature of the relationship between the causal variables

and the effect to be predicted

METHOD: Experiments

Causal designs differ from descriptive designs in their greater probability ofestablishing causality. The reason for this is that causal designs are similarto experiments done in a lab, where we know what goes in, what changesare made, and what results from the changes. Causal designs are alsoknown as experimental designs. It analyzes the causeeffect relationship

between the variables.


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1.3.2 Method of Data Collection

Instrument for the data collection is secondary data. In today's world correct

information is the key to success.Secondary data is collected by others but utilized

or used by the researcher. Secondary data is data that has already been collected

and collated by somebody for some reason other than the current study. It can be

used to get a new perspective on the current study, to supplement or compare the

work or to use parts of it, as another study may prove costly and time consuming.

Advantages

1. It is economical. It saves efforts and expenses.

2. It is time saving.

3. It helps to make primary data collection more specific since with the help

of secondary data, we are able to make out what are the gaps and

deficiencies and what additional information needs to be collected.

4. It helps to improve the understanding of the problem.

5. It provides a basis for comparison for the data that is collected by the

researcher.

Evaluation of secondary data

Evaluation means the following four requirements must be satisfied:-

1. Availability-It has to be seen that the kind of data you want is available or

not. If it is not available then you have to go for primary data.

2. Relevance-It should be meeting the requirements of the problem. For thiswe have two criterion:-


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a. Units of measurement should be the same.

b. Concepts used must be same and currency of data should not be

outdated.

3. Accuracy- In order to find how accurate the data is, the following points

must be considered: -

a. Specification and methodology used

b. Margin of error should be examined

c. The dependability of the source must be seen.

4. Sufficiency-Adequate data should be available.

Precautions in the use of secondary data

The investigator should consider the following points before using the secondary

data:

a) Are the data reliable?

b) Are the data suitable for the purpose of investigation?

c) Are the data adequate?

d) Are the data collected by proper method?

e) From which source were the data collected?

f) Who has collected the data?

g) Are the data biased?

Thus, the secondary data should not be used at its face value. It is risky to use

such statistics collected by others unless they have been properly scrutinized

and found reliable,suitableand adequate.

Thus in my opinion, this was the best method, that could have been used

which provided such an in-depth and detailed information.

Statistical tools used

The main statistical tools used for the collection and analyses of data in this project

are:

Pie Charts


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Tables

Pie chart

This is very useful diagram to represent data, which are divided into a number of

categories. This diagram consists of a circle of divided into a number of sectors,

which are proportional to the values they represent. The total value is represented

by the full create. The diagram bar chart can make comparison among the various

components or between a part and a whole of data.

Bar chart

This is another way of representing data graphically. As the name implies, it

consist of a number of whispered bar, which originate from a common base lineand are equal widths. The lengths of the bards are proportional to the value they

represent.

1.1.1 Limitations of the study

Although the project has been worked out at its best yet there are some limitations,

which cannot be overlooked. Had these limitations been overcome, the findings

would be accurate.

Some of the limitations are:

1) Time constraint:

Time was really a limiting factoring the project. Its really difficult to work out

such a large project between two months time.

2) Data constraint:

All the data that has been collected for this project, has been taken from secondary

sources like websites, magazines, newspapers and book.

However, every effort is made to ensure that these do not in any way adverselyaffect the results of the study and inject an element of objecting.


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Chapter 2

CompanyProfile


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Chapter 2Company Profile

2.1 ABOUT VIDEOCON

Videocon Industries Limited is one of the biggest business conglomerates in India.

In 1979 Late Mr. Nandlal Madhavrao Dhoot started this business with great vision.

His vision reflects his ideology for business. Videocon is an

industrial conglomerate with interests all over the world, and is an Indian

multinational company. The group has 17 manufacturing sites in India and plants

in China, Poland, Italy and Mexico. It is also the third largest picture

tube manufacturer in the world.

Videocon founder Late Mr. Nanadlal Madhavlal Dhoot

VIDEOCON INDUSTRIES

Type Public (BSE:511389)

Genre Conglomerate

Founded 1979

Founder(s) Mr. Nandlal Madhavlal Dhoot

Headquarters Aurangabad,Maharashtra, India

Area served Consumer ElectronicsHome AppliancesComponents

Office AutomationInternet
http://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Category:Types_of_companieshttp://en.wikipedia.org/wiki/Genrehttp://en.wikipedia.org/wiki/Genrehttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Maharashtrahttp://en.wikipedia.org/wiki/Aurangabad,_Maharashtrahttp://en.wikipedia.org/wiki/Entrepreneurhttp://en.wikipedia.org/wiki/Genrehttp://en.wikipedia.org/wiki/Category:Types_of_companies


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PetroleumPower

Dth

Industry

Consumer Durables, Oil and Gas etc.

Revenue U$4.1 billion(2010)

Net income U$276 million

Owner Mr.Venugopal Dhoot (Ceo&MD)

Website http://www.videoconworld.com

http://www.videocon.com

2.2 VISION AND MISSION

To delight and deliver beyond expectation through ingenious strategy, intrepid

entrepreneurship, improved technology, innovative products, insightful marketing

and inspired thinking about the future.

We can feel this vision while working with the Videocon also. This group isworking very aggressively under the guidance of current Chairman Mr. Venugopal

Nandlal Dhoot & Vice chairman and Chief executive Officer Mr. K R Kim. This

group has good presence in various sector but consumer durables is its major

business.

To increase the existing market share the company has launched its consumer retail

chain DIGI World in major cities of India. There is availability of five major

brands of Videocon Group. These all brands have good image in the mind of theconsumers. These megastores have got good starting. There are almost 16 shops

have been launched so for. Mr. K R Kim, CEO of Videocon Group has told in an

interview they are focusing on almost 200 shops all around in India.

These megastores give a lot of boost to the existing networks of distributors, direct

dealers and sub dealers. These stores mainly exist in major cities like Mumbai,

Delhi, Gurgaon and Ghaziabad etc.

There are many reasons to open these megastores. As the company is adopting

aggressive marketing plan for increasing sales so they are focusing on many
http://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Industryhttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Ownerhttp://en.wikipedia.org/wiki/Ownerhttp://en.wikipedia.org/wiki/Venugopal_Dhoothttp://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Websitehttp://www.videoconworld.com/http://www.videocon.com/http://www.videocon.com/http://www.videocon.com/http://www.videoconworld.com/http://en.wikipedia.org/wiki/Websitehttp://en.wikipedia.org/wiki/Venugopal_Dhoothttp://en.wikipedia.org/wiki/Ownerhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Revenuehttp://en.wikipedia.org/wiki/Industry


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dimension of marketing. Among them is increasing brand visibility, for increasing

this they are working to do so. DIGI World is one of the initiatives taken by the

new CEO Mr. K R Kim. There are several steps that have been taken from this

former CEO of LG. During his tenure in LG this man has made miracles.

2.2.1 Vision

Videocon is committed to bring happiness in every home around the world

by offering high quality products that ease and enrich human life.

To be a USD 15Bn Group by 2013

Road Map:

By Diversifying into New Areas such as

SEZs

Solar power

Real Estate

Telecom & Mobile Services

Retail

IT Services

Semi-Conductors

Hospitality

Flat Panel Displays (LCD, PDP, PND etc.)

DTH

2.2.2 Mission

A Reflection of Continuity & Change.

To Delight and Deliver beyond Expectation through:

Ingenious Strategy.

Intrepid Entrepreneurship.

Improved Technology.

Innovative Products.

Insightful Marketing.

Inspired Thinking About the Future.


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2.3 HISTORY

Videocon is an industrial conglomerate with interest all over the world and based

in India. Videocon began its tryst with destiny in 1979 from a conference room-

sized assembly line. But, it was founded in 1987 by Late Nandlal Madhavlal

Dhoot. Hecompleted his education in Ahmednagar and Pune. He was a successful

sugarcane and cotton cultivator. As a next logical step to vertical integration, He

boldly took upon an entrepreneurial venture by importing machinery from Europe

to set up the Gangapur,Sakhar,karkhana (sugar mill) in 1955.those were days

when the village did not even have electricity. He thus unleashed a mini industrial

revolution.At that time it used to manufacture TV and washing machine. In 1989-90,

Videocon started manufacturing home entertainment systems, electric motors & ac.

Videocon entered refrigerators and coolers segment in 1991. In 1995, Videocon

started manufacturing glass shells for cart and in 1996 it ventured into kitchen

appliances and crude oil segment. In 1998, Videocon started manufacturing

compressors & compressor motors. In the year 2000, Videocon took over Philips

color TV plant. In 2005, Videocon took over 3 plants of electrolux India and

acquired.

Currently, it starts to manufacture rotary compressor-based air conditioner, which

new technology in India under Videocon logo. Videocon is all set to enter the dth,

hospitality, telecom, SEZs and real estate industries.

Videocon has launched green-field power generation projects which will

collectively produce 15,000 mw of electricity. Planet m is owned by Videocon

through its retail arm, next.

1987

1989-1990

Color & BW TV, WASHING MACHINE

HOME ENTERTAINMENT SYSTEM,

ELECTRONIC MOTER, AIR CONDITION


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2.4 COMPANY OPERATION

Videocon is the biggest Indian company. In consumer durables field this company

has great reputation in market and among customers. Other two major playersLGand Samsung are Korean player that rock entire Asia by their technology.But in

India, Videocon not only give them strong challenge but also holding the 2nd

position in this sector.

Now Videocon group is unfolding its wings to fly in the sky of the globe. For this

they are entering in the different segment also.

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing

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

assembly line in 1979.

1991

2000

2005

1995

1996

1998

REFRIGERATORS, COOLER.

GLASS SHELLS FOR CRT.

KITCHEN APPLIANCES, CRUDE OIL.

COMRESSER, COMPRESSER MOTERS.

PHILIPS COLOUR TV PLANT TAKES OVER.

ELECTROLUX INDIA 3-PLANT TAKEOVER, THOMSONCPT ACQUISITION.

2008-2009 DTH SERVISE, POWER GENERATION PROJECT,

HOSPITALITY, TELECOM, SEZ, REAL STAT SECTOR.


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Today the group operates through 4 key sectors:-

Consumer Electronics, Home Appliances & Compressor manufacturing in India

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

many of our consumer products like Color Televisions, Washing Machines, Air

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

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

network in India. Refrigerator manufacturing is further supported by our in house

compressor manufacturing technology in Bangalore.

Display industry and its components

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

Picture Tube manufacturers in the world operating in Mexico, Italy, Poland and

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

extra slim CPT and High Definition 16:9 format CPT.

Color Picture Tube Glass

Videocon is one of the largest CPT Glass manufacturers in the world with a high

level of experience and technical expertise operating through Poland and India.

Videocon will leverage on this synergy after the Thomson acquisition to internallysource glass for its CPT manufacturing increasing efficiencies and lowering costs.

Oil and Gas

An important asset for the group is its Ravva oil field with one of the lowest

operating costs in the world producing 50,000 barrels of oil per day. The group has

ambitious plans for expansion in this sector global.

Brand Basket

Tie-ups with Global Leaders

Partner Product Nature Of Tie-Up

Samsung Electronics Fly Back

Transformers, Tuners

Technical Support

Matsushita Electric Washing Machine Technical Collaboration

Matsushita Electric Air Conditioner Design & Drawing


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Matsushita Electric Refrigerator Design & Drawing

Sansui Electric Co. Ltd Audio Products

and Colour TV

ODM for Indian Market

Techneglass Glass Shell Technical Collaboration

Akai Audio Products

and Colour TV

ODM for Indian Market

Hyundai Colour TV ODM for Indian Market

Electrolux AB Sweden Refrigerator,

Air Conditioner and

Washing Machine

1.ODM & Indian Market

2.Sourcing of components for

Global Market

3.ODM for Global market

New Functional Areas

DTH service.

Power Generation Project.

Hospitality.

SEZ.

Real Estate

Product Portfolio


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2.5 MAJOR ACHIEVEMENTS OF VIDEOCON INDUSTRIES LTD

The largest panel production facility in the world under one roof providing

very high economies of scale.

One of the world's largest and most respected CRT glass manufacturers.

Firing the largest furnace of its kind in the world with a tank size of 3300

sq ft.

One of the few companies in the world to convert sand to TV.

One of the largest and most acknowledged CPT manufacturers in the

world.

Manufactured India's first rust-free Washing Machine.

NEWLY ACHIEVEMENTS

The Group today is a Rs. 16,000 crore (US$ 4billion) international

conglomerate continuing to expand its global footprint. Recognition for this

brand has come in liberal doses. Videocon was accorded the status of

Indias Most Trusted Brand in Consumer Durables by Brand Equity in

2005 and 2007. A separate study conducted by ACNielsen across the

country stands testimony to the organizations commitment to provide

quality products and services to discerning consumers, while another

independent study carried out by CNBC and ORG-MARG awarded the

status of the Best Washing Machine brand to Videocon. Videocon is the

first company in India to implement my SAP ERP version 2004 in record

time and is a ramp-up partner to SAP AG Germany. The company also

bagged the SAP ACE Award, twice in a row, for Best Consumer Sector

Implementation and Excellence in Implementation of SAP Modules.


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2.6 MANAGEMENT OF THE ORGANISATION

Mr. Venugopal Nandlal Dhoot is the current Chairman of the company. Under

his leadership Videocon is increasing its height of business. Mr. K R Kimis Chief

Executive Officer of its consumer durable business. There is a Board of Directors

in Videocon that keeps the company on the path of success. Name of the directors

are following:-

Mr. Venugopal N Dhoot

Mr. Pradeepkumar N Dhoot

Mr. K C Srivastava

Mr. Kuldeep Kumar Drabu

Mr. Satyapal Talwar

Mr. S Padmanabhan

Maj. Gen. S C N Jatar

Mr. Arun L Bongirwar

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

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

Mr. B Ravindranath (Nominee - IDBI Limited)

Mr. Ajay Saraf (Nominee - ICICI Bank Limited)

2.7 SRUCTURE OF THE ORGANISATION

As they are in many businesses with multiple brands so they have adopted

MATRIX STRUCTURE. For each and every department they have clear

guidelines. Job responsibilities are quite clear. All the employees are accountable


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for their job. In this organization rule regulation are pre defined and flexible. E.g.

In all branches all over India there is a Branch Marketing Manager, he/she has to

report two bosses one Branch Operation Head and Regional Marketing Manager

for

his

all

acti

vitie

s.

2.8 FUNCTIONAL AREAS

As any other company this company has many functions each and every function is

very important for the organization. Major functional areas are followings

Financials Functions

In this they practice all the function of the finance. But major are followings:-

Control over all cash inflows and outflows.

Taxation

Tight control over miscellaneous expanses


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Marketing Function

In this they practice every possible thing which develop and build the image of the

company. Major activities are followings

Branding

Advertisement

Marketing Intelligence

About Competitors

About dealers, sub dealers and distributors

Measuring impact of the marketing activities like:-

Road shows

Canopies

Canter Activities

Dangler hanging, Postering and In-shopping

Advertisement in print & electronic media

Taking feedback of the dealers and distributors about advertisements

Design new marketing ideas to create awareness and image building

Production And Operation

In this area they use only one slogan

Reduce cost, gain market but never compromise with quality

Major functions are followings:-

Control over inventories (not more than 3days)

Reduce wastage

As this company is eco friendly, so they practice it in their production line

also.

Energy efficiency

Use non conventional energy sources also (solar and wind energy)

Information Technology


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Now information is the business, this line is in practice in Videocon. They provide

best possible information facility to their employee. They have their own intranet

network inside the organization. They have vgmail.in. It gives employee to work

from house and give direct contact to the head office. Company provides enough

facility to its employees to work inside and outside of the organization. These

facilities make them efficient and faster to work proper and within given time. For

all other information they have Videocon world .com also. It is the biggest source

of information for internal and external customers. This site does not only give the

proper information about the company but also give information about industry as

well as. They have trend analysis of the industry which gives the visitors more

satisfy to visit the site.

Human Resource

As this company is stiff challenge from their competitors so they are focusing to

recruit people with passion of work for organization and they must have

combination of creativity and knowledge of how to implement plan properly.

Selection of right kind of people for right kind of job:-

Training

Creating positive atmosphere for work

Enrich employee efficiency for productivity

Rate employee for their performance

Time to time development program for employee

Others

There are few more functional areas also which are supporting other major

functional areas.

Logistic

This company has many MOD agreements with Sansui, Electrolux, Kenstar,

Kelvinator and AKAI. There is complexity for logistic department. They are

responsible for dispatching all goods on time. They are very important for the

company and its logistic policy. Its Integrated Logistic Policy for all the products

and all brands is very useful. Their few rules are following

1. Delivery of all orders within 24 hours


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2. All products should be delivered in proper condition

3. There must not be any mismatch in delivered and ordered goods

4. Defective good must be taken back to official warehouse

Quality Management Initiative

This company follows ISO 9001 as its quality tools as they are work in very

competitive environment so there is very less chance of error. By implementing

ISO standards they are able to reduce the cost of its product to give competition to

its competitors. They never forget that safety and health concern about its

employees. So they can work in such atmosphere which enhances their

productivity.

Videocon in consumer durables

CEO Mr. K R Kim

Videocon is major Brand in Consumer durables in India. Under the leadership of

CEO Mr. K R Kim, company has reached at the 2ndposition in Indian market. The

company is started its operation in year 1979 with consumer durables business.

Slowly and gradually this company gets 2ndposition in Indian consumer durables

market. There were several players in the market like Philips, Bush, Crown,

Uptron, Kelvinator, BPL, Sony etc. After 1992, there were many foreign players

entered in Indian market like Samsung, Canon, LG, Sanyo, Electrolux, Thomson,

Panasonic, Sansui, Akai, Toshiba etc. These foreign players uprooted all the Indian

players but not Videocon. With the continuous R&D, Quality, large dealer


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Network and after sales service make a strong place for Videocon among Indian

customer.

Later Videocon has created not only its brand but also support few brands also.

They signed MOD (Marketing Operation and Distribution) Agreement with

Electrolux AB, Sansui, Akai, Hyundai, Toshiba etc. They not only support these

brands but help them to grow in Indian market. Presently there are six major

brands in the basket of Videocon.

1. Videocon

2.

Electrolux

3. Kelvinator

4. Sansui

5. Akai

6. Kenstar

All these six are very strong brands they not only give competition to LG,

Samsung etc

but

each

other

also.

These

brands

do well in Indian market as well as in global market also. Few brands are even

brands with superior technology but Videocon treats them as their own brands.

There are following detail of the brands

Videocon company logo logic


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Old logo New logo

Videocon Group, the Rs 5,000-crore conglomerate, has embraced a new brand

identity. The brand has shed its solid steel 'V' for a more fluid, lava like 'V',

coupled with a new proposition 'Experience change'. Prior to this, the brand has

banked on other propositions, such as 'Technology for health and pleasure', 'BringHome the Leader', 'New Improved Life', 'The Indian Multinational', 'Whatever role

life gives you, play it big', as well as the most recent one, 'Eco Logic for

sustainable life'. The company unveiled its new tagline recently, at an event

promoting the 2009 chapter of the IIFA awards. The new logo was unveiled in San

Francisco, by the Videocon brand ambassador Shah Rukh Khan.

2.9 ABOUT DTH

DTH stand for direct-to-home television. DTH is defined as the reception of

satellite programmes with a personal dish in an individual home. DTH does away

with the need for the local cable operators can receive satellite programmes and

they then distribute them.

2.9.1 Overview of DTH Industry

The history of Indian television dates back to the launch of doordarshan, Indias

national TV network in 1959. The transmission was in black & white. The 9th

Asian games which were held in 1982 in the countrys capital New Delhi heralded

the mark of color TV broadcasting in India. In 1991, Indian economy was

liberalized from the License Raj and major initiatives like inviting foreign direct

investments, deregulation of domestic business emerged. This lead to the influx of

foreign channels like Star TV and creation of domestic satellite channels like Sun

TV and Zee TV. This virtually destroyed the monopoly held by doordarshan. In

1992, the cable TV industry started which lead to revolution.


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Every city in the India had a complex web of co-axial cables running through the

streets with a new breed of entrepreneurs called as cablewallahs or Local Cable

Operators (LCO) taking in charge of distribution. The film industry was shocked

by this sudden growth and there were even organized protests for calling off the

Cable TV industry. There were simply too many cable operators in the country and

the channels had a difficult time in getting its returns as the existing system was a

non-addressable and the operators could simply give a reduced number of

subscribers to a mass profit. This lead to the emergency of a new breed of firms

called as Multi System Operators (MSO) who had heavy financial muscles to make

capital investments. The MSO industry became highly monopolistic which

warrants government participation to ensure competition.Later on, the United Front Government had issued a ban on use of ku band

transmission. After a change of government, the ban got lifted finally in 2001 and

TRAI issued the guidelines for operating DTH. Countrys first private DTH

license was awarded to Dish TV in 2003 which started operations in 2004. Prasar

Bharati also started its product DD-Direct+.

DTH Digital TV system receives signals directly from satellite through the dish,

decodes it with the Set-Top Box and then sends stunningly clear picture and sound

to TV which is the business under taken by some companies by observing the rate

of growth and scope for business & opportunity in the Indian market which has

120 million viewers of TV.

With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense

of growth prevailing everywhere. The average Indians disposable income and

purchasing has risen to never before levels. The Indian entertainment and media

industry is not far behind. It is currently estimated at a worth of Rs.450 billion with

a CAGR of 18% over the next 5 years. Terms which were alien to Indians like

capital DTH, digital cables, IPTV are suddenly finding presence in the countrys

journals.

In 2007, TRAI proposed a new initiative by name Head end-In-The-Sky (HITS)

Model as an alternative to the existing cable d istribution. Instead of the MSOs

providing the bundle, there will be a single HITS operator who will prepare the

bundle of channels and beam it to the Headed in the satellite. The LCOs can

receive this digitalized bundle and deliver to the individual homes. With HITS,


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country wide implementation of CAS becomes instantaneous and cost-effective.

This benefits both the broadcasters and the customers by ensuring Addressability,

Better quality of service and increased number of channels. Another emerging

trend is the IPTV which is yet to be regulated and one can expect lot of action in

this sector.

According to a report on Direct to home (DTH) service, it predicts that India would

overtake Japan as Asias largest DTH by 2010 and be the Asias leading cable

market by 2010 and the most profitable pay-TV market by 20015.

2.9.2 List of players in the industry

Doordarshan (DD-Direct +) of Prasar Bharati comprising of 33 FTAchannels and 12 All India Radio Channels.

Dish TV of ZEE group.

Tata Sky joined venture between Tata and Rupert Murdochs Sky TV.

Sun direct of Sun Network.

BIG TV of Reliance Anil Dhirubhai Ambani group.

Airtel digital TV of Bharati telemedia

Videocon d2h of videocon industries

Categorization of players in the industry

Government owned player Private players

DD Direct+ DishTV, TataSky,

Sun direct, BigTV,

Airtel digital TV, Videocon d2h


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Chapter 3


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F indings &

Analysis

Chapter 3Findings and Analysis

3.1 ANALYSIS OF DTH INDUSTRY


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Picture depicting how DTH works

A DTH network consists of a broadcasting centre, satellites, encoders,

multiplexers, modulators and DTH receivers.

A DTH service provider has to lease Ku-band transponders from the satellite. The

encoder converts the audio, video and data signals into the digital format and the

multiplexer mixes these signals. At the user end, there will be a small dish antenna

and set-top boxes to decode and view numerous channels. On the user's end,

receiving dishes can be as small as 45 cm in diameter.

DTH is an encrypted transmission that travels to the consumer directly through a

satellite. DTH transmission is received directly by the consumer at his end through

the small dish antenna. A set-top box, unlike the regular cable connection, decodes

the encrypted transmission.

3.1.1 Product Lines and Consumer Behavior of DTH

Range of products

Set-Top-Box.

Head-Antenna.

Cable

DVD

Remote

LCD TV/PLASMA TV/CATHODE RAY TV/LED TV


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Product description of DTH

SET-TOP-BOX

The set top box comprises of the MPEG-2 OR MPEG-4 with DVB2 technology.

Head-antenna

Antenna which receives signals directly from satellites,

Cable

Cable connects antenna to the set up box

DVDOne of the recent entrants into DTH industry is vediocon. This came with set top

box with DVD

ACCESS CARD

The access card is another important thing in the set top box setup

Where the access card will receive the signals directly from satellite trough head

top antenna

LCD TV

Some companies are offering the whole set of LCD TV with DTH connection

Ant in the case of cathode ray tubes and in case of PLASMA

Remote

A compactable remote for both SET UP BOX and TV is used in operating both TV

and Set top box.

Complimentary Goods

LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plasticand paper which are used for recharge cards.

Substitutes

Local Cable Operators, Inter-Net which is bringing many facilities like live TVchannels, along with the net browsing, Theaters, radio stations, I pods.


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3.1.2 Technology of Production and Distribution of DTH

Cost Structure

The costs incurred by the DTH players is mainly on its technology, satellite dish,

set top box accessory cards, Ku band transponders in the satellites, customer

premise equipment(CPE). The launch of satellites is another huge cost which the

DTH plays shares the transponders. And it costs them much than anything.

Another cost incurred is on operating cost.

Economies of Scale

Economies of scale may be utilized by any size firm expanding its scale of

operation. The common ones are purchasing (bulk buying of materials throughlong-term contracts), managerial (increasing the specialization of managers),

financial (obtaining lower-interest charges when borrowing from banks and having

access to a greater range of financial instruments), and marketing (spreading the

cost of advertising over a greater range of output in media markets).

Cost Advantages:-

1] Direct customer relationship.

2] Better storage

3] Extensive use of resources.

4] Availability of labor at cheap rates

Economies of Scope

An economic theory stating that the average total cost of production decreases as a

result of increasing the number of different goods produced.

Often, as the number of products promoted is increased and the DTH players used,

more people can be reached with each rupee spent. These efficiencies do not last,

however; at some point, additional advertising expenditure on new products will

start to be less effective (an example of diseconomies of scope). If a sales force is

selling several products they can often do so more efficiently than if they are

selling only one product. The cost of their travel time is distributed over a greater

revenue base, so cost efficiency improves.

There can also be synergies between products such that offering a complete range

of products gives the consumer a more desirable product offering than a single


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product would. Economies of scope can also operate through distribution

efficiencies. It can be more efficient to ship a range of products to any given

location than to ship a single type of product to that location.

Value added

Many players are using this DTH as the basis and giving many value added

services to the customers. Some of the players are giving best valued services to

the customers like Airtel gives live-news, home shopping, live gaming, broad

band, horoscope, radio, and etc. Tata sky is giving recording for more than 4

hours, and came with a differential strategy of Tata sky+ with other facilities. Big

TV is giving live with Big movies, Dish TV is giving live TV on the wheels, andmany other value additions.

Logistics

Logistics is still a nascent and fragmented industry in India. It is estimated that

while outsourced logistics accounts for 54% of total logistics spending in India,

organized players have only 10% of the pie.

DTH industry follows a good logistics which is as similar to the logistics which are

used by automobile industry, for the effective management of the DTH industry.

Labour

Labours are included in every activity of the business, most of the people working

are not daily labours, and they are employed and paid monthly in the form of

salary. DTH requires skilled labor like management executives, administrators,

software engineers, sales executives and attorneys.

3.1.3 Marketing

Market segmentation, marketing strategies, marketing practices and marketing

concepts specific to the industry, Indian TV channel broadcast 15.7-mn

advertisement every year, which totals to 362-mn seconds of TV advertisement

every year. India currently has over 400 channels.

TV viewer ship has declined by 5% since 2001. TV broadcasters are expected to

go hike in advertisement rate this year by 16-18%. Market segmentation in DTH


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industry mainly concentrates on women who dont like missing their daily soap

and news more ever women are able to learn English speaking which is a very

special feature of DTH. DTH also concentrates on children also by providing them

games, dictionary, some discovery videos specially inbuilt, maths, science and

social knowledge. It also focuses on old people as it has updated videos of various

holy and religious places.

DTH uses different marketing strategies for promotion and sales of its product. It

gives advertisements with their brand ambassadors which attract customers, door

to door selling, on the phone selling, discount and offer sales, packages, etc

Marketing practices is a continuous process as the competition keeps increasing

among the players in the industry. Each player is investing lots of money inpromoting their brands. Many players are making advertisement with movie actor

and actress as brand ambassadors for their products because DTH is mainly

considered with entertainment.

Some of the companies like Tata sky is having Super Star Amir khan as brand

ambassador and Airtel is having many film stars like kareena kapoor,

A.R.Rahaman, saif ali khan, etc. Dish TV is also having Super Star Sharuk khan as

the brand ambassador.

Sun direct also uses southern actress for their brand promotion. Marketing

practices are the decisions taken by the manufacturing company to increase sales,

expand themselves into many areas etc. Successful marketing practices bring sale

up, while unsuccessful marketing practices have no impact on sale or negatively

impact sale. Marketing concepts specific to the industry is primarily targeted at a

niche segment who buy the TV sets from the electronic retail chains.


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3.1.4 Innovation

Types of innovation, concepts of innovation relevant to the industry, source of

innovation, rate of innovation and economies of scale.

The concept of innovation in DTH industry is INCREMENTAL innovation;

everything that is done is due to constant research of many marketing and analysts

to bring many innovations to the existing products in the DTH industry.

Incremental innovation is the apt innovation which is suitable and all the DTH

players are concentrating up on.

This innovation makes the business to grow continuously and brings advantages to

the customers using the products and the service.

There are many sources of innovation for this industry as mentioned in the above,the technology and the people are the main sources for the innovation. Customers

opinions and their needs can be served by providing a service which is matching to

their needs and requirements. In this days every company setups its own R&D in

its own company with very intelligent people for meeting the expectation of the

customer.

Digital TV, the DTH service from Airtel, has announced Indias first skin

integration innovation on its EPG screen in partnership with Yahoo. Yahoo takes

forward its latest brand campaign YOU in this first of its kind partnership where

an online portal will use DTH as a medium to promote itself.

The Electronic Programming Guide screen on Airtel digital TV is now

completely integrated with Yahoo Indias homepage. Customers will find a

message Fill your home page with all the things that make YOU when they log

onto to the EPG screen. A prompting Red Button will take them to a dedicated

landing page that elaborates the offerings on Yahoo Indias new home page. The

YOU campaign enables users to customize the home page as per their liking and

empowers them with the choice to integrate social applications such as Facebook

with their Yahoo homepage. This whole idea was conceived by Network Play,

right from design elements to execution and thanks to Mindshare for buying into

the idea and flawlessly helping people execute it. Tata Teleservices Limited has

announced a technological breakthrougha first-of-its-kind innovation in India

with the launch of TATA Photon TV, a new application that allows Tata Photon


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Plus subscribers to watch live television channels on their laptops while on the

move, and on their personal computers at home and in the office. The Photon TV

service is exclusively available to Photon Plus users.

With its growing popularity, Photon Plus has caught the admiration of millions of

users across the country, with its high-speed data access capabilities and the ease

of mobility.

TATA Photon TV is a personal computer- and laptop-based video-streaming

application, which allows Tata Photon Plus users to view live TV feed from

various sports, news, entertainment and regional channels, and to watch recordedTV shows from the library movies, music and videos on demand.

Internet Browsing charges will be charged as per your Photon+ tariff plan and it

would be applicable while viewing Photon TV. These charges would be over and

above the subscription charges for the Photon TV. (Approximate data usage is 1-

2MB per Min).

Rate of innovation in this sector is growing at a faster rate in the recent years

where as it is not very impressive before this period. The reason for this is the fair

competition between the all players in this DTH industry. It led to the development

of new products in this sector which also led to the diversification of products as

there is abolition of entry of foreign industries into Indian industries initially. It

also made the industries in this sector to establish their own R&D departments for

successful product innovations like Airtel Live, Videocon d2h.

The brand loyalty for each and every company is very high, so there is no need of

lot of costs to be poured in marketing and promotion of the service and product.

Every function that is performed by the players is a well planned and executed

properly.

So in all the areas those players are using the expertise people in the industry and

performing operations in DTH industry very economically.


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3.1.5 Strategies and competition in the Industry

Competitors, Strategies used in the industry, Porters generic strategies model,

porters five forces model and analysis using it, element of industry structure,

porters value chain model analysis, swot analysis, concept of generic value chain,

concept of growth share market matrix, company position .

Competitors

Every company has its own goal, every company wants to achieve and full fill its

goals, many companies like the big players in the industry wants to grab most of

the market share. Some of the companies want to achieve 10million customer base

by 2010 they are Dish TV, Tata sky, Sun direct, BIG TV etc.The industrys objective is to achieve 60million customers buy 2012 i.e., nearly

50% of the present existing customers.

Strategies used in the industry

Technology transfer is one of strategy used in the industry and it is existence for a

long time. In recent decades, concerted effort has been made to exploit the existing

technology to a larger extent by transfer of technology, to generate greater

economic impetus. It provides opportunity to generate larger returns on the

investments made in R&D. Its importance lies in its ability to stimulate and

strengthen the innovation process.

Porters generic strategies model

Generic strategies were used initially in the early 1980s, and seem to be even more

popular today. They outline the three main strategic options open to organization

that wish to achieve a sustainable competitive advantage.


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The generic strategies are: 1. Cost leadership, 2. Differentiation, and 3. Focus

1. Cost leadership

In the case of media products, means they should be offered at a price lower than

their competitors but with as good benefits, or, the unique benefits the media

products offer can over-offset the premium.

2. Differentiation

Differentiation in DTH refers to when a organization provides unique benefits to

the users through product innovation. This is to increase the probability of the

media users to choose the product. A media organization with a target user loyalty

can concentrate more on how to fully meet the target users needs rather than on

product cost saving.

3. Focus

Focus strategy is also known as a 'niche' strategy. The clutter of ads has now

spilled out on the number of channel availability due to which people are spoilt for

choice. Thus Niche channels are the only way to maintain viewer loyalty. TATA

Photon plus is more niche oriented.


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3.1.6 SWOT analysis

STRENGHT

Growing number of player and competitive advantage.

Supply creates its own demand.

Brand name

Service and flexibility.

WEAKNESS

Skilled labour

Satellite technology

Signals

Viewer migration.

Uncertainty in viewer ship.

OPPORTUNITY

Technology

Distribution

Innovation

Value adding

THREAT

Economic downturn.

Climate

Radio

Cinema halls

Broad casting of channels

New entrants


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Porters five force model

The five forces which one must consider to analyze any industry are the rivalry

between the firms within the industry being analyzed, the bargaining power of

buyers, the bargaining power of suppliers, the threat of substitute products or

services, and the threat of new entrants (also known asbarriers to entry). They are

also shown in the diagram below. Initially propounded by Harvard Business

School Professor Michael Porter, the Five Forces framework has been accepted as

a strategic framework which one can apply to analyze any industry.

Threat of substi tutes

DTH gives stiff competition from the terrestrial, cable & IPTV. As per the industry

estimates, there are 130 million TV homes of which 71 million are served by cable

and around 6 million served by DTH with the remaining taken by terrestrial

transmission. As IPTV is a new entrant there is not much data on its subscriber

base.

Bargaining power of suppliers

DTH industry relies on three major suppliers. Customer premise equipment (CPE)
http://www.franteractive.com/strategy/Porter-Barriers-to-Entry.htmlhttp://www.franteractive.com/strategy/Porter-Barriers-to-Entry.html


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Comparing of the satellite Dish, Set Top Box with the necessary Access Card, the

Ku band transponders are obtaining satellites and content. With India set to

overtake Japan as Asias largest DTH by next year, the bargaining power of India

DTH operators with CPE suppliers have been steadily increasing.

Bargaining power of buyers

With enough operations to choose both from the point of alternate mediums like

cable, IPTV and terrestrial broadcast and from the point of increasing DTH

operators, the consumer is at his will to decide. Customers will continue to have a

high bargaining power until DTH platforms try to differentiate them as superior

players with better content and clarity.

Rivalr y among existing firms

With 3 operational players and 4 players in the queue, inter firm rivalry is quite

high.

The competition from state owned DD-Direct to private players in negligible from

the content point of view as the number of channels offered by DD-Direct is very

limited. However, DD-Direct does not change any monthly subscription charges.

Between Dish TV is Tata Sky there is an intense rivalry exhibited by price war and

discount schemes offered to new connections. Being the first mover, dish TV had

price advantage in both the STB offers superiors DVD quality Video to its

advanced STB.

While Dish TV is planning to spend Rs. 850crs over the next 3 years, the rival

TataSky is willing to spend Rr.2000crs over the medium term. The companies

have also set ambitious targets with Dish TV aiming to reach 5 million subscribers

in the next 18 to 20 months while Tata sky aiming to reach 8million subscribers in

the next 18 to 20 months while Tata sky aiming for 8 million subscribers by 2012.

Threat of new entr ants

With already 7 players space in the DTH space, threat of new entrants is low.

There is already enough competition which will discourage new firms to enter this

business. While getting a licensee is relatively easy, the barriers to entry are high


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when it comes to pricing of CPE and getting the required transponder. There is a

definite, first mover advantage.

Analysis of the Industry using Porters value chain model

Porters value chain analysis is considered with the value analysis of the several

functions of the DTH industry, it makes to understand the importance of this model

to develop and add on value to the present features of the industry and its

functioning.

Value analysis says that an effective logistics should be undertaken to

commencement of the business in cost effective way. The most the cost effective,

the more value is added to the process. It is nothing but proper or optimal use ofthe resources present and using the technology. This value addition is not only in

the logistics, it should be carried in all areas of the management, production,

distribution and etc. Thus DTH industry can increase its value addition to the

customers and the features and of industry.

Concept of growth share matrix (BCG model)

The BCGGROWTH SHARE MATRIX is a portfolio planning model developed

by Bruce Henderson of the Boston Consulting Group in the early 1970's. It is

based on the observation that a company's business units can be classified into four

categories based on combinations of market growth and market share relative to

the largest competitor, hence the name growth share.

Under the BCG GROWTH-SHARE MATRIX, as an industry matures and itsgrowth rate declines, a business unit will become either a cash cow or a dog,


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determined solely by whether it had become the market leader during the period of

high growth. While originally developed as a model for resource allocation among

the various business units in a corporation, the growth-share matrix also can be

used for resource allocation among products within a single business unit.

In the DTH industry when the market share is obtained then it is automatically

treated as the market leader, and also it needs maximum market share to extent,

when the market is not in incremental state then the growth rate of the industry will

retain. Again this industry follows all the variables in the all areas till the both will

come into normal level.

3.1.7 Growth of the Industry

Rate of Growth

The DTH service market in India has emerged as one of the most lucrative markets

which have successfully resisted the impacts of the current economic slowdown.

The slowdown has certainly proved a boon for the Indian DTH industry as people

have now started to cut on their entertainment expenditure and instead of viewing

movies at theatres, they are preferring to stay at home with their television sets.

With the Indian economy growing at a GDP growth rate of 7.4%, there is a sense

of growth prevailing everywhere. The average Indians disposable income and

purchasing has risen to never before levels. The industry is anticipated to add

nearly 5 Lakh subscribers per month during 2009 and the numbers are forecasted

to surge further at a CAGR of around 30% through 2012, "Indian DTH Market

Forecast to 2012". 20% annual growth is being witnessed in the DTH sector in

India with over 8.5 million households having digital pay-TV.

A report attributes that the anticipated growth to the efforts of DTH industry

players who are all trying to lure viewers by cutting down prices as well as offering

perks even though it translates into loss of Rs 1,600-2,000 on each new subscriber

acquired by them. They have started to offer a number of value-added services

such as 'movie on demand', live recording of TV content, matrimonial match-

making, etc.


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Pattern of Growth

The big game is all about shaping up grandiose plans to master the winning rules to

garner as much portion of the Indian DTH pie as possible by a handful of players.

Since the DTH space denotes big value, akin to the space occupied by television

and telephony, inter-firm rivalries have thrown up price wars, discount schemes,

procurement of transponders, ambitious targets for improving the subscription

base, popular bouquet of channels, set top boxes with superior quality of videos,

improving content, etc as a desperate means to entice the Indian viewer.

The pattern of growth is very difficult to determine because a business cycle takes

place in long term. But this industry is having very short period for making or

observing a business cycle.The analysis that can be made is though the economic cycles is not continues and it

was in boom then when the industry started and now just the economy is in

recovering stage from the recession. Interesting factor is that all the industries are

hit seriously buy the rescission but DTH industry has reported growth continuously

but only it has slowdown the rate of its growth. Now the industry is growing at

20% for every annum.

Growth Determinants

Demand constraints and SCAR are the factors which effects the growth of the

industry. Growth determinant and high TV sales increase the chance for more

sales of set top box which will affect the growth. When the facilities of the

products increase it acts as a growth determinant.

The entertainment channels and the news channels players increase the growth to

opt the DTH. Some of the DTH players are bringing innovative plans like live

shopping, broad band, and etc will act as growth determinants.


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3.2 BRIEF PROFILES OF PLAYERS IN INDUSTRY

DD Direct+

Doordarshan is the public television broadcaster of India and a division of Prasar

Bharati, a public service broadcaster nominated by the Government of India. It is

one of the largest broadcasting organizations in the world in terms of the

infrastructure of studios and transmitters. Recently, it has also started Digital

Terrestrial Transmitters. On September 15 2009, Doordarshan celebrated its 50th

anniversary.

Doordarshan had a modest beginning with the experimental telecast starting

in Delhi on 15 September 1959 with a small transmitter and a makeshift studio.

The regular daily transmission started in 1965 as a part of All India Radio.

The television service was extended to Bombay (now Mumbai) and Amritsar in

1972. Till 1975, seven Indian cities had television service and Doordarshan

remained the only television channel in India. Television services were separated

from radio in 1976. Each office of All India Radio and Doordarshan were placed

under the management of two separate Director Generals in New Delhi.

Finally Doordarshan as a National Broadcaster came into existence.

National telecasts were introduced in 1982. In the same year, color TV was

introduced in the Indian market with the live telecast of the Independence Day

speech by then Prime Minister Indira Gandhi on 15 August 1982, followed by the

1982 Asian Games being held in Delhi. Now more than 90 percent of the Indian

population can receive Doordarshan (DD National) programmes through a network

of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce

TV programs today.

DD Direct+ is a free Direct to Home (DTH) service that provides satellite

television and audio programming to households and businesses in the Indian

subcontinent. Owned by parent company Doordarshan, DD Direct Plus was


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launched on December 16, 2004. Now chairman of DD direct+ is Shri Arun

Bhatnagar and CEO is B S Lalli under the ministry of information and

broadcasting.

Dish TV

Dish TV is the first private DTH satellite television provider in India,

using MPEG-2 digital compression technology, transmitting using NSS Satellite at

95.0. Dish TV's managing director and Head of Business is Jawahar Goel who is

also the promoter of Essel Group and is also the President of Indian Broadcasting

Foundation and Mr. Subhash Chandra is the Chairman of Dish TV. Dish TV is a

division of Zee Network Enterprise (Essel Group Venture). EGV has national and

global presence with business interests in media programming, broadcasting &

distribution, speciality packaging and entertainment. Zee Network incorporated

dishtv to modernize TV viewing. By digitalizing Indian entertainment, this

enterprise brought best television viewing technology to the living room. It not

only transmits high quality programmes through satellite; but also gives a complete

control of selecting channels and paying

DTH service was launched back in 2004 by launching of Dish TV by Essel

Group's Enterprises. Dish TV is on the same satellite where DD Direct+ is. Dish

TV started its service in Pakistan with the collaboration of Budget Communication.

Dish TV was only DTH operator in India to carry the two Turner channels, Turner

Classic Movies and Boomerang. Both the channels were removed from the

platform due to unknown reasons in March 2009. Dish TV uses NSS-6 to

broadcast its programmes. NSS-6 was launched on 17 December, 2002 by

European-based satellite provider, New Skies. Dish TV hopped on to NSS-6 from

an INSAT satellite in July 2004. The change in the satellite was to increase the

channel offering as NSS 6 offered more transponder capacity.


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is provided with playback control keys and is being sold with special offers for

existing subscribers. Tata Sky was selected as a SUPER BRAND for the year

2009-2010 by an independent and voluntary council of experts known as Super

brands Council. It is the only Indian DTH to have won this distinction.

Sun Direct

Sun Direct is a DTH satellite television provider in India, using MPEG-4 digital

compression technology, transmitting using INSAT 4B at 93.5E. It is the

country's first MPEG 4 technology DTH service provider. Sun Direct is a DTH

service in India headquartered in Chennai, Tamil Nadu. Sun Direct TV was

registered in February 16, 2005. However, the failed launch of INSAT 4C resulted

in a lack of transponders, delaying the launch. The service was finally launched on

December 2007 after availability of transponders from INSAT 4CR. Because of

the lowest pricing of any DTH in India Sun Direct spread rapidly all over the

country. On December Sun Direct was launched in Mumbai and announced its pan

India launch. By 2009 it became leading DTH provider with 3 million subscribers.

This makes it 4th largest DTH service provider of India. In April 2009 Sun Direct

officially launched its High-Definition service in India.

Sun Direct uses the latest MPEG-4 based technology to increase broadcast

capacity.

Sun Direct provide next-generation services in fast-growing and emerging markets

quickly and efficiently. Sun Direct selected Oracle based on its convergent multi-

service capabilities and proven real-time scalability allowing it to consolidate

billing operations, enables powerful new service offerings and improves visibility

into customer information across services.


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Big Tv

Reliance BIG TV is a DTH satellite television provider in India based in Navi

Mumbai, using MPEG-4 digital compression technology, transmitting using

MEASAT-3 91.5east. It is the 5th DTH service launched in India. Reliance BIG

TV limited is a part of Reliance Communications Ltd., a subsidiary of Reliance

Anil Dhirubhai Ambani Group founded by the Late Dhirubhai Ambani, the Indian

business tycoon and owned by his son Anil Ambani. BIG TV started operations

from 19 August 2008 with the slogan "TV ho Tho BIG Ho" ("If you have a TV,

make it BIG"). It currently offers close to 200 channelsand many interactive ones,

32 cinema halls (i.e. Pay Per View Cinema Channels) as well as many Radio

channels. The company plans to increase the number of channels in the near future

to 400 and begin High Definition (HD) broadcast. It is the first Pan-India DTH

provider that uses MPEG-4 for broadcasting. There are also plans to introduce

services like i-Stock, i-News and other such interactive services in the future.

Reliance BIG TV was launched on August 19, 2008 with the sole aim of providing

the consumer with quality and enriched home entertainment service at value-driven

pricing. Reliance BIG TV's launch in August was probably the biggest roll-out in

home entertainment ever and deployed the most advanced MPEG4 technology that

enabled them to deliver best quality digital audio-video to the consumer. It also got

prepared for the future when Hi-Definition TV will be launched in India because

only MPEG4 technology can support HD TV and not MPEG2 which is used by the

earlier entrants in the DTH industry.

Reliance BIG TV's retailer network is spread across 100,000 outlets in 6,500 towns

in India. This was literally unheard of in the DTH industry. They had effectively

out-stripped the competition here. When it came to pricing packaging, their

introductory offer stood at Rs. 1,490/- with 3 to 6 months of free subscription.

They also introduced 32 Pay-Per-View Movie Channels, the highest by any DTH

player.


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Airtel digital TV

Bharti Airtel Limited is the flagship company of Bharti Enterprises and is Indias

largest integrated and the first private telecom services provider with a footprint in

all the 23 telecom circles. As India's leading telecommunications company, the

Airtel brand has played the role of a major catalyst in India's reforms, contributing

to its economic resurgence. Airtel since its inception has been at the forefront of

technology and has steered the course of the telecom sector in the country with itsworld class products and services.

Airtel Digital TV is a DTH (Direct to Home) service from BhartiAirtel. It uses

MPEG-4 digital compression with DVB-S2 technology, transmitting using INSAT

4CR 74E

Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign

'Come Home to the Magic. Since then it has launched 2 other campaigns: Stars

come home (March 2009) and DTH Picture Clarity(August 2009) has increased

its channel base to 183+ channels. Airtel digital TV is now amongst the fastest

growing DTH brands in the country and is available across 5000+ towns in India.

It has also been ranked as the best DTH service by Living Digital magazine.

Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a

bright future in Indian market as the people are getting more attracted towards

DTH because of its quality and affordability.

Videocon D2h


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Videocon d2h is a DTH satellite television provider in India based in Mumbai,

using MPEG-4 with DVB S2 digital compression technology

Videocon Leasing & Industrial Finance Limited was incorporated on 4th

September, 1986 as Adhigam Trading Private Limited. In terms of the necessary

resolutions Passed under Sec. 21 of the Companies Act, 1956, the name of the

Company was changed to Videocon Leasing & Industrial Finance Limited on 14th

February, 1991. The Company received a fresh certificate of incorporation from

the Registrar of Companies, Gujarat at Ahmedabad on 14thFebruary, 1991.

Videocon d2h launched May 1, 2009. It came with a very good strategy for selling

both of its electronic products like TVs DVDs along with the new set top box.This is offering direct to TV without any set top box also. Only the antenna is

enough, it also came with DVD which is connected directly to the TV or antenna is

connected to DVD which gives a best quality of output.

Products of Videocon d2h

SATELLITE TV

SATELLITE DVD
http://www.d2h.com/WSC/idtv_5002.asphttp://www.d2h.com/WSC/iddvd_5001.asphttp://www.d2h.com/WSC/idtv_2901.asphttp://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/idtv_2101.asphttp://www.d2h.com/WSC/idtv_5002.asphttp://www.d2h.com/WSC/iddvd_5001.asphttp://www.d2h.com/WSC/idtv_2901.asphttp://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/idtv_2101.asphttp://www.d2h.com/WSC/idtv_5002.asphttp://www.d2h.com/WSC/iddvd_5001.asphttp://www.d2h.com/WSC/idtv_2901.asphttp://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/idtv_2101.asphttp://www.d2h.com/WSC/idtv_5002.asphttp://www.d2h.com/WSC/iddvd_5001.asphttp://www.d2h.com/WSC/idtv_2901.asphttp://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/idtv_2101.asphttp://www.d2h.com/WSC/idtv_5002.asphttp://www.d2h.com/WSC/iddvd_5001.asphttp://www.d2h.com/WSC/idtv_2901.asphttp://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/idtv_2101.asp


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3.3 REASONS FOR OPTING DTH SERVICES

Reasons from customers No.

Clarity 14

Digital signal 8

Personnel connection 17

More Facilities 20

Digital sound 5

Program on demand 30

Student perspective 12

More families 10

No light problem from center 25

Table 1

Pie Chart 1


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3.4 REASONS FOR OPTING VIDEOCON DTH SERVICE

Manufactured in Videocon factories.

Videocon d2h Satellite Television.

MPEG4 and DVD-S2.

Single Remote.

Multi lingual User Interface (EPG).

Active Services.

Movie on demand.

Mosaic.

Customizable Info Bar.

Preview Screen.

Favorites.

Radio Facility.

Channel Lock.

Parental Control.

Reminder.

Exciting offers & strong regional content.

Channel hide.

Context Sensitive help.

Weather watch.

Easy Recharge.

Own Service Centers


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3.5COMPETITIVE PACK ANALYSIS

A. TATA SKY

ANNUAL MEGA PACK:

RS 5000 PER ANNUAL.

152 CHANNEL + SHOW CASE MOVIES.

ANNUAL MEGA PACK INCLUDE:-

- SOUTH JUMBO PACK+.

- EDUCATION GOLD PACK+.

- LIFE STYLE GOLD PACK+.- SPORT PLATINUM PACK+.

-SPORT GOLD PACK+.

- 12 SHOW CASE MOVIES.

TATA CHANNEL PACKEGES

PACKEGES CHANNELES PRICES(Rs)

TATA SKY SUPER PACK 55 CHANNEL 125/MONTHS

TATA SKY SOUTH STARTER

PACK

72 CHANNEL 125/MONTHS

TATA SKY FAMILLY PACK 94 CHANNEL 215/MONTHS

TATA SKY SUPER SEVER

PACK

117CHANNEL+6

SERVICE

CHANNEL

274/MONTHS

TATA SKY SOUTH VALUE

PACK


TATA SKY SOUTH JAMBO

PACK



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TATA SKY ADD-ON PACKEGE/TATASKY TOP-UP

PACKEGES CHANNELES PRICES(Rs)

EDUCATION GOLD

PACK

4-CHNNELS Rs 30 /MONTHS or

Rs 300/MONTHS

LIFE STYLE GOLD PACK 14-CHNNELS Rs 45 /MONTHS or

Rs 450/MONTHS

SPORT GOLD PACK 2-CHANELS Rs 40 /MONTHS

SUPORTs PLATINUM

PACK

3-CHANNELS Rs 65/MONTHS

ESPN & STAR SPORT

PACK

2-CHANNELS Rs 40/MONTHS

SPORT BONANGA 6-CHANNELS Rs 1350/ANNUM

B. AIRTEL

TOPUP

TOP UP CHANNELS PRICE (Rs)

SOUTH PLUS 31 Rs. 70/-

HINDI PLUS 6 Rs. 45/-

MUSIC 3 Rs. 25/-

ZEE SPORT 1 Rs. 15/-

ZEE MARATHI 1 Rs. 10/-

ZEE TALKIES 1 Rs. 10/-

ZEE GUJRATI 1 Rs.10/-

ESPN PLUS 4 Rs. 45/-

NEO PLUS 3 Rs. 30/-

TEN SPORTS 1 Rs. 15/-

SPORTS TREAT 8 Rs. 99/-

HINDI NEWS 3 Rs. 15/-

COLOURS 1 Rs. 20/-

KIDS PLUS 2 Rs. 20/-


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LIFE STYLE PLUS 3 Rs. 20/-

ENGLISH NEWS 5 Rs. 35/-

CINE PLUS 4 Rs.35/-

AIRTEL PACKEGES

PACKAGES CHANNELS PRICE (Rs)

SUPER VALUE PACK 81+1 REGIONAL

CHANNEL

Rs. 99/-

MEGA PACK Ultra VALUE PACK+13

CHANNELS

Rs. 235/-

MEGA PLUS MEGA PACK+12

CHANNELS

Rs. 325/-

SPECIAL TERIFF OFFER

OFFER ONETIME COST

3-MONTHS SUPER VALUE PACK+FREE

INSTALLATION

Rs.1750

2-MONTHSMEGAPACK+ESPN+FREE

INSTALLATION.

Rs.2000

3-MONTHS ULTRA PACK+FREE

INSTALLATION

Rs.2500

12-MONTHS SUPER VALUE PACK+FREE

INSTALLATION

Rs.2600

6-MONTHS ULTRA PACK+FREE

INSTALLATION

Rs.3500

C. DISH TV

1. SET OF BOX:

INSTALLATION CHARGE-Rs 200/-


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COMBO PACK-SET OF BOX +3-MONTHS PLATINUM PACK

Rs 2090/

OLD PACKEGES

PAKEGE CHANNELS PRICE(Rs)

FREEDOM PACK 98 CHANNELS Rs 150/-

FREEDOM PLUS

PACK

103 CHANNELS Rs. 200/-

WELCOME PACK 128 CHANNELS Rs. 300/-

MAXI PACK 157CHANNELS Rs. 350/-

NEW PACKEGE

PACK CHANNELS PRICE

(Rs/MONTHS)

SILVER PACK 135-CHANNELS Rs. 113/- + TAX

GOLD PACK 155-CHANNELS Rs.190/- + TAX

PLATINUM PACK 185-CHANNELS Rs. 283/- + TAX

TITANIUM PACK 188-CHANNELS Rs. 361/- + TAX

D. BIG TV

BIG TV STARTER PACK

STARTE PACK CHANNELS PRICE (Rs)BIG TV STARTER 1 56 CHANNELS Rs. 100

BIG TV STARTER 2 73 CHANNELS Rs. 150

BIG TV STARTER 3 88 CHANNELS Rs. 175

BIGTV SOUTH

STARTER

97 CHANNELS Rs. 175

PACKEGES


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PACKEGE CHANNELS PRICE(Rs)

BE NGLA-ORIYA

PLUS

4 Rs. 30

GUJRATI-

RAJSTHANI PLUS

3 Rs. 30

LANNAR PLUS 2 Rs. 30

MALYALAM PLUS 2 Rs. 30

TELGU PLUS 4 Rs 30

MARATHI PLUS 3 Rs. 30

HINDI-PUNJABI

PLUS

5 Rs. 30

TAMIL PLUS 2 Rs. 30

TOP-UP PACKS

PACKEGES CHANNELS PRICE(Rs.)

NEWS PLUS 3 -CHANNELS Rs.25

ENGLISH MOVIE 3 -CHANNELS Rs.25

HINDI MOVIE PLUS 3-CHANNELS Rs.25

KID PLUS 3 -CHANNELS Rs.25

SPORT-1 PLUS 2-CHANNELS Rs.40

SPORTS-2 PLUS 2-CHANNELS Rs.40

ELITE PLUS 3 -CHANNELS Rs.25

SOUTH PLUS 15-CHANNELS Rs.50

NEWS NDTV PLUS 2-CHANNELS Rs.25

ENTERTAINMENT

NDTV PLUS

4-CHANNELS Rs.40

UNI PLUS

CHANNELS PRICE(Rs)

STAR CRICKET Rs. 25

ZEE TV Rs. 25


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TEN SPORTS Rs. 25

STAR CRICKET Rs. 50

E. VIDEOCON

FEATURES IN DTH THAT ATTRACTS THE CUSTOMER:
http://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/recharge.asphttp://www.d2h.com/WSC/products.aspx?q=5049c3cedd2d08a96e8b7760666e4d0da109c730522645cb566c477f4f0f72dbeb6389e0f63f2c4ab681414c40e6a69http://www.d2h.com/WSC/recharge.asp


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Services

ACTIVE SERVICES:-

Get a 24 X 7 darshan of various multi

religious places. It provides novelfeatures like maps & allows you to

perform an interactive / online aarti on

auspicious occasions.

Get your favourite recipes at th

videocon by etanshu (1main

Documents