videocon television project report

RAMAIAHINSTITUTEOFMANAGEMENTSTUDIES

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INTRODUCITON:

Every business organization that comes into contact with the customer

develops a perception in the mind of the customer. Today, in this

competitive world every organization needs to know the perception in

the mind of the customers. In order to gain mind share or heart share

of customers along with the market share is the main lookout for the

organizations. Especially in consumer electronics sector, where the

products are more or less same, the only way to leave positive impact

on customer’s mind and to gain competitive advantage is providing

best possible services to the customers.

Introduction part of this report is classified into two different sections.

1. Problem Statement

The principle cause behind this project is to know that to what

level customers are enjoying and aware of videocon TV offered

by the company and what further improvement can be done in

future in this area so as to get brand awareness.

2. Objective

• To have an overview of videocon.

• To know the reputation of videocon T.V. in the market.

• How the consumer preference towards the brand videocon.

• The main objective how to increase the reputation of

videocon brand in the market.

• To understand its competitors in business.

• How videocon will create a good image in the market.

• To understand the 4 Ps used by the videocon in business


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CHAPTER-1

STUDY

OF

THE INDUSTRY


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INDUSTRY SCENARIO Before the liberalization of the Indian economy, only a few companies like

Kelvinator, Godrej, Allwyn, and Voltas were the major players in the consumer

durables market, accounting for no less than 90% of the market. Then, after the

liberalization, foreign players like LG, Sony, Samsung, Whirlpool, Daewoo, Aiwa

came into the picture. Today, these players control the major share of the consumer

durables market.

Consumer durables market is expected to grow at 10-15% in 2007-2008. It is growing

very fast because of rise in living standards, easy access to consumer finance, and

wide range of choice, as many foreign players are entering in the market.

Consumer durables are the products whose life expectancy is at least 3 years. These

products are hard goods that cannot be used up at once.

Consumer durables Sector can be classified as follows:

1. Consumer Electronics includes VCD/DVD, home theatre, music players, color

televisions (CTVs), cameras, camcorders, portable audio, Hi-Fi, etc.

2. White Goods include dishwashers, air conditioners, water heaters, washing

machines, refrigerators, vacuum cleaners, kitchen appliances, non-kitchen appliances,

microwaves, built-in appliances, tumble dryer, personal care products, etc.

3. Moulded Luggage includes plastics.

4. Clocks and Watches

5. Mobile Phones


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ABOUT CONSUMER ELECTRONICS INDUSTRY

1.History of consuemr Electronics in India

The Electronics Industry in India took off around 1965 with an

orientation towards space and defense technologies. This was rigidly

controlled and initiated by the government. This was followed by

developments in consumer electronics mainly with transistor radios,

Black & White TV, Calculators and other audio products. Colour

Televisions soon followed. In 1982-a significant year in the history of

television in India – the government allowed thousand of Colour TV

sets to be imported into the country to coincide with the broadcast of

Asian Games in New Delhi. 1985 saw the advent of Computers and

Telephone Exchanges, which were succeeded by Digital Exchanges in

1988. The period between 1984 and 1990 was the golden period for

electronics during while the industry witnessed continuous and rapid

growth.

From 1991 onwards, there was first an economic crises triggered

by the Gulf War, which was followed by political and economic

uncertainties within the country. Pressure on the electronics industry

remained though growth and developments have continued with

digitalization in all sectors and more recently the trend towards

convergence of technologies.

In recent years the electronic industry is growing at a brisk pace.

It is currently worth $ 10 Billion but according to estimates, has the

potential to reach $ 40 billion by 2010. The largest segment is the

consumer electronics segment. While is largest export segment is the

consumer electronics segment. While is largest export segment is of

components.


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The breakup of production in various segments the industry is shown

be low:

• 1950s Radios -imported & Sold

• Late 1960s B&W TV Transmission started

• 1970s Manufacturing of B/W TV started

• 1982 Colour TV Transmission, Manufacturing of CTV started

• 1992 Economic Liberalization Process initiated

• 1993-94 Dismantling of controls such as licences,

Ban on use of Foreign Brand Names etc.

• 1994-95 Entry of MNCs – Panasonic, Sony, LG, Samsung etc.

Lowering of Import duties.

Cable TV Started.

• 1995 Till Date Entry of Many MNCs & Rapid Growth,

Continuous Lowering of Import Duties

• 2001 Non tariff Barriers on Imports removed.

• 2004 Free Trade Agreement (FTA) with Thailand implemented,Resulting

in reduction of import duties to 0% on Colour Television sets,

Colour Picture Tubes, Refrigerators and Air Conditioners, thus

more competition.

• 2005 DTH Services Started

• 2007 Entry of Organised Retail

• 2008 FTAs with other countries & FDI in retail likely.


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2. CURRENT SCENARIO

The consumer durables market in India is valued at US $ 4.5 billions currently. In

2008, microwave ovens and air conditioners registered a growth of about 25%. Frost-

free refrigerators have registered significant growth as many urban families are

replacing their old refrigerators. . Washing machines, which have always seen poor

growth, have seen reasonable growth in 2006. More and more Indians are now

buying electrical appliances due to change in electricity scenario. The penetration

level of color televisions (CTVs) is expected to increase 3 times by 2008.

On the brick of rapid economic growth, India has witnessed the dynamic change in

country's consumer electronics industry. In last few years the industry has been

witnessing significant changes in retail boom, growing disposable income and

availability of easy finance schemes. One electronic gadget that has brought new

revolution in Indian Electronic Industry is Television Set. Today, India is fast

emerging as the key driver in the global television market both as a manufacturer and

consumer. In recent years, the market for televisions in India has changed rapidly

from the conventional CRT technology to Flat Panel Display Televisions (FPTV).

Currently, the split between CRT and FPTV is around 97% and 3% respectively. In

addition to this, one of the most striking changes sweeping across the colour

television market in Indian market is the exponential growth of the flat panel

television (FPTV) market, in common parlance called the liquid crystal display

(LCD) and plasma televisions. Moreover, as per recent research data available, the

global market for FPTV is expected to grow from 51 million units in 2006 to 127

million by 2009.


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Looking at the present scenario, over the last couple of years, the LCD prices have

even dropped by around 30 per cent annually. Some of the important factors that

boasted this growth also include the increasing awareness of the advantages of LCD

televisions, the growing availability of the product across dealer counters and the

Finance schemes in the market. Besides this, as a manufacturing hub, the television

industry is improving more and more. There are many domestic and MNC companies

that have increased their production bases in the country. Easy availability of low-

cost skilled labor and the emergence of SEZs, which are tax-free zones are some of

the key factors that have resulted in growth of these manufacturing units. In fact,

encouraged by tax-breaks, new manufacturing units are coming up in less-developed

regions now.

Today, India is one of the few emerging countries to have an excellent component

supply base in terms of manufacturing facilities for glass and color picture tubes, so it

helps it a good choice for all those companies who are looking to take benefit of this

emerging market.

In present scenario top player for colour television are

• LG

• VIDEOCON

• SAMSUNG

• SONY

• ONIDA

• PHILLIPS

• SANSUI

• BPL


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3. INDUSTRY ANALYSIS- 5 FORCES MODEL

Michael Porter’s Five Forces Model provides a robust and time-tested framework for

analysing any industry, reflected in the strength of the five forces (industry

competitors, potential entrants, threat of substitutes, power of buyers and power of

suppliers). The collective strength of the five forces determines the ultimate profit

potential in an industry,

Where profit is measured in terms of long-term returns on capital invested. The

elements of each of the above forces and the extent and /or effect of each element in

the context of the television industry have been analysed and enumerated below.

The Porter’s Five Forces tool is a simple but powerful tool for understanding where

power lies in a business situation. This is useful, because it helps you understand both

the strength of your current competitive position, and the strength of a position you’re

looking to move into. With a clear understanding of where power lies, you can take

fair advantage of a situation of strength, improve a situation of weakness, and avoid

taking wrong steps. This makes it an important part of your planning toolkit.

Conventionally, the tool is used to identify whether new products, services or

businesses have the potential to be profitable. However it can be very illuminating

when used to understand the balance of power in other situations.


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1. COMPETATIVE RIVALRY AMONG INDUSTRY (VERY HIGH)

2. BARGAINING POWER OF BUYER (VERY HIGH)

3. BARGAINING POWER OF SUPPLIER (LOW)

4. BARRIER TO ENTRY (LOW)

5. THREATS OF SUBSTITUTES (LOW)


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3.1 Degree of Rivalry Degree of rivalry denotes the intensity of competition within the industry. Videocon,

LG, samsung, Sony, Onida, are the big competitors in television industry. Although

Videocon, another major player has managed to hold its own in the midst of the

onslaught from the Korean majors, though profits have suffered. Other large Indian

companies in the top of the list are Mirc Electronics. While Mirc Electronics is

managing to hold its share by adopting value for money strategy, BPL is facing tough

time, experiencing drastic decline in market share. Sony, Philips, Akai, Sansui, Aiwa,

Toshiba and now Hyundai are the other foreign brands in the market. The industry is

based on numbers game and companies will have to maintain a fine balance between

catering to lifestyle requirements and meeting the needs of average consumer.

3.1.1 Competitor Analysis

A detailed analysis of some of the major players is done below:

LG ELECTRONICS

LG Electronics rightly understood the consumer motivations to create magnetic

products, price them strategically, position them sharply and keep making the

magnetism more potent. Having understood the finer differences in consumer

motivations, it opted for sharp- arrow ‘reasons-to-buy’ differentiation over the

‘blanket-all approach’ taken by most of the other players. It is an aggressive

marketer. It focuses on low and medium price products.

SAMSUNG

Initially the strategy of Samsung in India was to create premium image by

emphasising global brand. After facing stiff competition from another Korean major-

LG, Samsung also started playing price game. In 2004 it reverted back to its premium

positioning, although it resulted in some loss of market share. In line with the Global

Digital Initiative of the Parent Company, Samsung India is seeking to acquire digital

leadership in India by introducing its digital ready televisions like the 40" LCD

Projection TV, 43" Projection TV and the Plano series of Flat Colour televisions.


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ONIDA

Its popular devil ad although had engendered a strong emotional pull towards the

brand, technologically it represented no advancement. The company plugged the gap

by touting its digital technology. Like Videocon, it has also been able to hold its

market share. The world-class quality of Onida has enabled the company to make a

breakthrough on the export front. It has technical tie- up with the Japan Victor

Company, better known as JVC. So focused is Onida on positioning itself on the

premium, high- tech plank that it is even planning to push its own envelope on

obsolescence, much. The strategy is aimed at further broad basing the product

offering of the company, which has largely dominated the top-end of the television

market, across multiple market segments.

VIDEOCON

Videocon has always been a price player and has an image of a low price brand. This

entails providing more features at a given price vis-à-vis competitors. It has taken

over multinational brands to cater to unserved segments, like Sansui- to flank the

flagship brand Videocon in the low to mid priced segment, essentially to fight against

brands like BPL, Philips, Onida and taken over Akai- tail end brand for brands like

Aiwa.

Videocon is one of the largest manufacturers of television and its components in

India and thus has advantages of economies of scale and low cost due to

indigenisation. It has the widest distribution network in India with more than 5000

dealers in the major cities. It also has a strong base in the semi-urban and rural

markets. Due to its multi-brand strategy, it has at present multiple brands at the same

price point. This has led to a state of diffused positioning for its brands. It has also led

to a cannibalisation of sales among these brands. The flagship brand Videocon has

lost market share due to the presence of Sansui in the same segment. Because of

reduction in import duties on CPT the cost advantage of Videocon is also on the

decline. Hence it is facing rough weather and also trying to boost exports.


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Besides understanding the strategy adopted by different players, several other factors-

industry growth, concentration and balance, corporate stakes, fixed cost, and product

differences need to be analysed to determine the extent of rivalry between the

existing Players.

3.2 The threat of potential new entrants (low) High capital required entering into television industry, which needed large investment

on technology, distribution, service outlets and plant. Difficulty for customers in

switching cost, when they are satisfied with their current product as well as difficultly

for new entrants to have product differentiation because customers had already

familiar with those established consumer electronics companies, therefore new

entrants have to spend a lot on branding and customer knowledge. It is difficult to

obtain a license; successful applicant has to undergo through a form of competitive

evaluation, such as a comparative evaluation process.

Threat of entry is determined by the entry barriers, which act to prevent new firms

from entering the industry. A lower entry barrier makes it difficult for the existing

producers to remain profitable for long. When profits increase, additional firms will

enter the market to take advantage of the high profit levels and over time drive down

profits of all firms in the industry. When profits decrease, some firms will exit the

market, thus restoring the market equilibrium. Barriers to entry arise from several

sources:

3.2.1 Access to Distribution Channels

A strong distribution network is absolutely essential to compete in this industry. Not

only does it guarantee a country wide reach for a company’s products but is also

necessary for providing good after sales service.

Videocon has implemented ERP system, which helps in integrating the

manufacturing, marketing, procurement and distribution services with the corporate

office


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LG Electronics sells in 1800 towns and cities with a population of 1,00,000 and

above.

Samsung also has a widespread service network, which includes 123 exclusive

service centres and 200 distributors in any town with more than 1 lakh population.

All BPL dealers are linked via VSAT nodes, ensuring online availability of

information on inventory status and sales movement.

Distribution hence is difficult and costly as established firms dominate distribution.

Large incentives are required to gain entry into the distribution channels and further

gain recommendation to retailers from the dealers.

3.2.2 Brand Salience

With little product differentiation and parity products, it is imperative that distinct

images are created in the minds of consumers through positioning and brand building.

MNCs have been able to compress the cost of brand building by amortising the cost

of sponsoring international events across a larger footprint straddling multiple

countries.

3.2.3 Capital Investment and Economies of Scale

Television industry is capital intensive and players have made huge investments

in putting up state of the art manufacturing facilities. Videocon has seven

manufacturing site in India Sony India had a production capacity of 300,000 CTV

sets with capacity utilisation of 66%. Samsung is investing $4 mn to expand its CTV

manufacturing capacity at Noida to 800,000 units per year. The existing capacity of

the plant is around 600,000 units. Other players like Mirc Electronics, LG have also

set up manufacturing facilities in India. The market players need sales volume to

achieve economies of scale, which is difficult because of large number of

competitors. Apart from investments in manufacturing the industry requires huge

working capital to manage inventories.


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Supply chain mgmt. and inventory management thus becoming crucial toDetermining

profitability. With regard to sourcing funds, MNCs are better placed Than their

Indian counterparts as they manage to get funds from their parent Companies at low

rates of interest. Huge capital requirement thus can act as barrierto entry.

3.3 Threat of Substitutes goods (low) In Porter’s model, substitute products refer to products in other industries.there is few

substitutes from other industry if any. Most of them seem to be obsolete or have one

foot out of door. Internet though emerging as an infotainment medium is very low in

penetration. Moreover the industry has responded to the future threat by introducing a

TV that can provide functions of the Internet along with regular features, e.g., BPL

digital that includes Internet and cellular facilities.

3.4 bargaining power of Buyer (high) The power of buyers is the impact that consumers can have on a producing industry.

Buyer power influences the prices that a firm can charge. Buyer power is influenced

by various factors as follows:

3.4.1 Buyer Concentration

The industry is akin to consumer durables whose end users are fragmented. Hence

buyers do not have any specific influence on producers.

3.4.2 Buyer Switching Cost

The cost incurred by consumer in switching from one television brand to another is

practically zero. Brand loyalty is low. Hence the companies cannot rest on their

laurels and have to be on their tenterhooks to retain the customers.

3.4.3 Price Sensitivity

Market is highly price conscious and promotion driven. With the onslaught of

VIDEOCON’s major price cuts and promotional schemes, this market has now become

a promotion driven one. To successfully compete in this industry, even premium

players like Sony, LG have had to come up with schemes. LG and Philips have


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Been the most aggressive amongst industry leaders as far as pricing is

Concerned and hence their realisation shave been lower than industry average.

Industry leaders like LG focus on low- medium priced CTV, while Samsung has

Moved gradually towards higher priced CTVs. The domestic high-end

CTV prices will follow the global price trend of declining prices. However, the

Prices of domestic products would be higher than those of global products due

To negligible demand in the domestic market and hence most likely to be met

Through imports. market is highly price sensitive as the

Demand has increased with fall in prices.

3.5 Bargaining power of supplier (low) In television industry, there is low bargaing power of Supplier’s because big global

supply chain management.there is direct negotation with supplier in order to encourge

reliable supply, faster delivery and lower price. Bargaining power influences the cost

and quality of input material. Higher supplier power raises the input cost, thereby

reducing the industry profitability. The most critical component in manufacturing

television is the picture tube. It constitutes around 50% of the cost of television.

While Black and White picture tubes are made in India, many manufacturers still

need to import colour picture tubes.

The other important components include electronic circuit boards, tuners, high-

tension transformers and moulded plastic casings. The demand

For colour picture tubes (CPT) has been rising steadily. But at the same time owing

To customs and import liberalisation, they had to face competition from imports

During1993-1997. A sharp reduction in import duty from 85% to 40% between

1994-96 and further down to 20% by 2004 was announced to gear the manufacturers

of picture tubes to face competition from foreign players. As a result of spurt in

Demand in 1990s, the CPT manufacturers expanded capacities, which resulted in

Excess capacity in the domestic market. Samtel Colour, LG Hotline and JCT

Electronics are the major domestic CPT manufacturers The picture tube industry is

both technology and capital-intensive industry.


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At the same time bulk orders in raw material procurement fetch more discounts,

which gives the larger players an advantage over their smaller counterparts. The CPT,

the most critical component in a CTV has no alternate use and therefore, the CPT

industry is solely dependent on CTV players, mainly domestic and partly exports.

Hence larger players like LG, Samsung and Mirc etc. are able to negotiate better

deals unlike other players.

3.6. CONCLUSION

The variables affecting the industry with regard to each of the five forces have been

Categorized as favourable or adverse. Favourable variables have the potential to

improve profitability, while adverse variables reduce profitability of the industry.

Some strategic initiatives, which could be adopted to leverage the favourable forces

And protect themselves from the adverse ones, are as follows:

• R&D and Marketing will have to work closely together. R&D will have to play a

role in cost innovation, which can cut component cost and raise performance. The

number of defectives has to be reduced at negligible levels. The quest should be to do

even better. Each assembly line can be made to compete with the other.

• Vital to the spread out is the re-haul of distribution network. Home appliances have

necessitated separate dealers, many of them specialists. For sharper focus on all

categories individually, the market has to be opened wider.

• Brand building will be important, so as to ensure brand preference. Marketers will

have to strategise to pull the consumer up the value escalator. A good fraction of sales

if come from high margin products as flat TVs and projection TVs would improve

profitability of companies. Sharply differentiated products with effective

communication on a continuous basis would be the key for future. Challenge lies in

creating higher order universal benefits and sensitising the larger audiences to it.


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LG and Samsung are likely to retain top positions.

• Buyers are easily swayed by costs, which are also verified by the presence of large

number of product offerings. Focus would be on providing value for money to the

consumer, with more brands in the economy segment. The challenge before

marketers is to span out, and address a wider set of needs. They will have to identify

segments not addressed by them so far and also introduce low price-point products

aimed at rural markets.

• Besides catering to the cost conscious segment, marketers need to segment the

market on the basis of psychographics, which will help in inducing brand loyalty

through lifestyle and experiential marketing.

• The increase in disposable incomes, more number of households above the

threshold income, declining prices, shortened replacement cycle and the demand for

multiple TV, all these factors are expected to sustain the growth momentum at 10-12

per cent during 2008-09 to 2010-11.


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CHAPTER-2

STUDY

OF

THE COMPANY


19

COMPANY PROFILE

Brief Profile

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.

Today the group operates through 4 key sectors:

1. Consumer durable

2. Thomson CPT

3. CRT glass

4. Oil and gas

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 Colour 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. Our compressor manufacturing technology in Bangalore further

supports refrigerator manufacturing.

Display industry and its components

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

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.


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Colour 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 internally

source 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


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BRAND-BASKET

Partner Product Nature Of Tie-Up

Samsung Electronics Fly Back, Tuners

Transformers

Technical Support

Matsushita Electric Washing Machine Technical * Collaboration

Matsushita Electric Air Conditioner Design & Drawing

Matsushita Electric Refrigerator Design & Drawing

Sansui Electric Co. Ltd Audio Products

And Colour TV

ODM for Indian Market

Techneglas 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


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HISTORY

• HomeEntertainmentSystems• ElectricMotors• AC

• Refrigerators

• Coolers

• GlassShellsforCRT

• KitchenAppliances• Crudeoil

• Compressor• CompressorMotors

• PhilipsColorTVPlantTakeOver

• ElectroLuxIndiaThree‐PlantTakeover• ThomsonCPTAcquisition

• Color&BWTV• WashingMachine


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Ownership pattern: Shareholding Pattern as on 31-03-2009

Sr.

No

Category of

shareholder

Number of

shareholder

s

Total

number of

shares

Number of

shares held in

de

materialized

form

As a

% of

(A+

B)

As a % of

(A+B+C)

(A) Shareholding of Promoter and Promoter Group

(1) Indian

(a) Individuals/Hindu

Undivided Family

13 1619838 1292950 0.87 0.73

(b) Bodies Corporate 44 153823583 152711452 82.6 69.57

Sub-Total

(A)(1)

57 15544342

1

154004402 83.4

7

70.3

(2) Foreign

(a) Individuals(Non-

Resident

Individuals/Foreign

Individuals)

0 0 0 0 0

(b) Bodies Corporate 0 0 0 0 0

(c) Institutions 0 0 0 0 0

(d) Any Other (specify) 0 0 0 0 0

Sub-Total

(A)(2)

0 0 0 0 0

Total Shareholding

of Promoter and

Promoter Group

(A)=

(A)(1)+(A)(2)

57 15544342

1

154004402 83.4

7

70.3

(B) Public shareholding

(1) Institutions

(a) Mutual Funds / UTI 21 36571 35228 0.02 0.02

(b) Financial Institutions/

Banks

36 304403 291166 0.16 0.14

(c) Insurance Companies 5 5600352 5599752 3.01 2.53

(d) Foreign Institutional 95 13467563 12706367 7.23 6.09


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Investors

Sub-Total

(B)(1)

157

19408889 18632513 10.4

2

8.78

(2) Non-institutions

(a) Bodies Corporate 1927 5516620 4962476 2.96 2.5

(b) Individuals

(i) Individual

Shareholders holding

nominal share capital

up to Rs. 1 lakh

342862 4685290 2998613 2.52 2.12

(ii) Individual

Shareholders holding

nominal share capital

in excess of Rs. 1 lakh

19 1171618 1171618 0.63 0.53

(c) Any Other (specify) 0 0 0 0 0

Sub-Total (B)(2) 344808 11373528 9132707 6.11 5.15

Total Public

Shareholding (B)=

(B)

(1)+(B)(2)

344965 30782417 27765220 16.5

3

13.93

TOTAL (A)+(B)

345022 18622583

8

18176962

2

100 84.23

(C) Shares held by

Custodians and

against which

Depository Receipts

have been issued

2 34867863 34862403 0 15.77

GRAND TOTAL

(A)+(B)+(C)

345024 22109370

1

21663202

5

100 100


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Vision & Mission

Videocon’s mission: a reflection of continuity and change

Videocon’s mission expression has been crafted to envelope both extant and

emerging realities:

“To delight and deliver beyond expectation through ingenious strategy, intrepid

entrepreneurship, improved technology, innovative products, insightful marketing

and inspired thinking about the future.”

A breakdown of the statement above reveals a ‘means and end’ approach, where the

end is articulated at the beginning with the means linked to it.

“To delight and deliver beyond expectation…”: the end

This segment not only underlines the importance of the ultimate goal - customer

satisfaction (‘delight’) and ultimate target - the customer, but also of intermediate

processes and principals, which have contributed to building a robust, dependable

Videocon value chain (‘deliver’). As a result of its focus on developing loyal

customers and reliable associates, Videocon is able to exceed expectations.

“…Through ingenious strategy…”: the means

In the cutthroat world of today, it is only by taking recourse to advance planning and

strategy that a business can hope to survive. Although textbook strategy has its uses,

reproducing it in verbatim for the real world would be foolish because of the absence

of textbook conditions. Thus, there is a need for a bounded rationality, spontaneity

and improvisation that is flexible enough for scenarios both imaginable and

unimaginable. Videocon’s ingenious manoeuvres are actually flexi-strategy that

abstracts from shifting ground conditions and decides game plans, or sometimes

changes the rules of the game.


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“…Intrepid entrepreneurship…”: the means

An enterprise with the odds stacked against it makes great business sense. This is

because higher the obstacles, lower the number of players likely to be active in that

field - thus, fetching extraordinary returns. The only requirement is a bold and

confident attitude willing to brave the odds. Videocon’s foray into oil and gas is a

bold and intrepid endeavour that arises from immense faith on the surefooted

competence of the company’s in-house managerial talent.

“…Improved technology…” the means

Technology is no more a premium input; it has become the bare minimum in recent

years. Rapid advances have only fuelled this phenomenon. Videocon is extremely

vigilant in shunting out dated technology and replacing it with the best-in-class offers

of the times.

“…Innovative products…” the means

Product development, innovation and customisation are the tools Videocon uses to

stay ahead of the competition. This is because a continuous stream of innovative

products excites the market and enhances brand recall. A strategy that Videocon

banks on a lot, especially on the domestic front

“…Insightful marketing…” the means

The market share battle scene has long shifted from technology and processes to the

psyche of the customer. This means that those with deeper insights into the elusive

mind of the buyer are likely to dominate. Videocon is reinforcing marketing strengths

to read better the pulse of the market and help create products that map perfectly into

customer preferences.

“…Inspired thinking about the future.” the means

The future is unpredictable, but not doing anything about it is fraught with

grave risk. Videocon extrapolates future trends on the basis of current changes in

technology and preferences as well as sheer gut feel.


27

Corporate Governance Company's Philosophy on Code of Governance:

The company's philosophy on corporate governance enshrines the goal of achieving

the highest levels of transparency, accountability and equity in all spheres of its

operations and in all its dealing with the shareholders, employees, the government

and other parties. The company believes in the philosophy on code of corporate

governance, which provides a structure by which the rights and responsibility of

different constituents, such as the board, employees and shareholders are carved out.

In carrying out this, it is ensured that the company\'s objectives are well defined and

performance against those objectives are adequately measured and monitored.

Corporate governance is considered as an important tool for shareholders rotection

and maximization of their long -term values. The cardinal principal such as

accountability, responsibility, transparency and fair disclosure serve as the means for

achieving this.

R & D

The company gives utmost importance to the R & D activities, which are carried out,

at in-house R & D center. The company carries on new innovations in product

development, cost reduction, quality improvement, process implementations, process

controls.

1) Specific areas in which R & D is carried out by the company

During the year, the company has carried out Research and Development in the

following areas.

Home theaters -High-end models and HTIB Models.

Larger Screen Television i.e.32 Inch and 38inch.

True Flat Televisions

Plasma Televisions

Cosmetic design and new out look to the TVs

Manufacturing of components for CTV, Refrigerators and Air conditioners.


28

Efforts to reduce power consumption of all its final products.

2) Benefits derived as a result of the above R& D.

The company has derived the following benefits as a result of the Research and

Development:

Development of new design in product and launch of various new models.

Able to compete with the foreign players in the Indian Markets by cost reductions and

offering innovation features and to maintain market leadership in Television under

Videocon umbrella.

Increase in productivity.

Reduction in power consumption of some of the products.

3) Future Plans of action

In the coming days company is aiming to achieve development in the following areas

through Research & Development:

Manufacturing of components for consumer Electronics Products.

Multimedia TV.

Plasma Televisions.

Launching of New Brands & Sub-brands under Videocon umbrella.

Composite Home Entertainment system with internet adaptability.

To work on better features, better quality & improved reliability with reduced/low

prices.

Your company always attempts to use the latest and advanced technology in

production process. Keeping pace with the technological developments, the company

keeps on adding sophisticated equipments with focus on automation to minimize

manual intervention in the manufacturing process thereby ensuring quality of the

final products.


29

Future Plans

To strengthen and maintain & its leadership status, the Videocon group has clearly

charted out its course for the future. Aggressive development is in full swing at the R

& D Centres to bring out state-of-the-art technologies including True Flat, Slim,

Extra Slim, Plasma & LCDs, at the earliest.

Cost rationalization processes - are in various stages - including rationalizing

factories in Europe, increasing automation and improvement of efficiency in China,

accessing flass shells from India for international CPT facilities and a lot more - are

in various stages of implementation.

Internationally all existing client relationships are being strengthened. The cost

competitiveness and increase in capacity in Mexico and Polland has opened up big

opportunities in the OEM business.

Last but not the least, in the domestic market consolidation with multiple brands

paves the way for an unassailable lead in the market.

In the Oil & Gas business, having all the basic operator capabilities of a prospecting

entity, the group is looking to add more explorations and production depth as also oil

bearing assets. The group will also get into gas distribution in India siginificantly.

Board Of Directors 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)


30

ORGANIZATION STRUCTURE CHART:


31

FUNCTIONAL DEPARTMENTS OF THE ORGANIZATION:

STORE DEPARTMENT:

Functions:

1. Purchase of all items indented by user functions like spares

Consumables etc., other than plant and equipment.

2. Registration of suppliers and evaluation.

3. Maintenance of Stores.

4. Inventory control of stock items.

5. Co-ordination with finance department for timely payment to the

Suppliers.


32

FINANCE DEPARTMENT

Functions:

• To comply with legal and other requirement.

• To provide information for stakeholders about financial

performance and viability

• To provide managers with information for decision-making

• To provide a structure to business activity based on the careful

processing of numerical data.


33

MARKETING

DEPARTMENT

Functions:

The smooth functioning of the marketing, sales and delivery operation

Corrective actions on customer complaints

New initiatives taken for sales maximization of the company

Handling relationship with personal, communicating and reporting to the

management.

Developing sales programs and formulating and designing sales polices.


34

PRODUCTION DEPARTMENT

Functions:

Production and planning

Purchasing

Stores

Design and technical supports

Works

Production cycle:


35

AUDIT REPORT

We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES LIMITED, as at 31st march 2009, Profit and Loss Account and also

The Cash Flow Statement of the Company for the year ended on that date

Annexed thereto. These financial statements are the responsibility of

The Company management. Our responsibility is to express an opinion

On these financial statements based on our audit

We conducted our audit in accordance with auditing standards

Generally accepted in India. Those Standards require that we plan and

Perform the audit to obtain reasonable assurance about whether the

Financial statements are free of material misstatement. An audit

Includes examining, on a test basis, evidence supporting the amounts

And disclosures in financial statements. An audit also includes

Assessing the accounting principles used and significant estimates made

By management, as well as evaluating the overall financial statement

Presentation. We believe that our audit provides a reasonable basis for

Our opinion.

ANNEXURE REFERRED TO THE AUDITORS REPORT

Statement referred of the Auditors Report of even date to the Members of

VIDEOCON INDUSTRIES LIMITED on the financial statements for the

Year ended 31st march 2009.

(i) (a) The Company has maintained proper records showing full

Particulars including quantitative details and situation of fixed

Assets.

(b) As per the information and explanations given to us, physical


36

Verification of fixed assets, other than those under joint venture, has

Been carried out at reasonable intervals in terms of the phased

Programme of verification adopted by the Company and no material

Discrepancies were noticed on such verification. In our opinion, the

Frequency of verification is reasonable, having regard to the size of

The Company and nature of its business.

(ii) (a) As per the information and explanations given to us, the

Inventories (excluding stock of crude oil lying at extraction site with

the Operator) have been physically verified during the year by the

Management. In our opinion, having regard to the nature and location of

Stocks, the frequency of the physical verification is reasonable.

(b) Procedures of physical verification of inventory followed

By the management are reasonable and adequate in relation to the size

Have the Company and the nature of its business.

(c) The Company is maintaining proper records of inventory. As per the

Information and explanations given to us, the discrepancies noticed on

Physical verification of stocks were not material in relation to the

Operations of the Company and the same have been properly dealt with in

The books of account.

(iii) As per the information and explanations given to us, the

Company has not granted or taken any loans, secured or unsecured,

To/from Companies, firms or other parties covered in the register

Maintained under Section 301 of the Companies Act, 1956.

(iv) In our opinion and according to the information and explanations

Given to us, there are adequate internal control systems commensurate

With the size of the Company and the nature of its business with regard

To purchases of inventory and fixed assets and for the sales of goods


37

And services. During the course of our audit, we have not observed any

Continuing failure to correct the major weakness in the internal

Controls systems.

(v) (a). Based on the audit procedures applied by us and according to

The information and explanations provided by the management, we are of

The opinion that the particulars of contracts or arrangements referred

To in Section 301 of the Companies Act, 1956 have been entered in the

Register required to be maintained under that section.

(b) In our opinion and according to the information and explanations

Given to us, the transactions made in pursuance of contracts or

Arrangements entered in the register maintained under Section 301 of

The Companies Act, 1956 and exceeding the value of Rupees Five lakh, in

Respect of any party during the year, have been made at prices which

Are reasonable having regard to prevalling market price at the relevant

Time.

(vi) The Company has not accepted any deposits from the public within

The meaning of the provisions of Section 58A and 58AA or any other

Relevant provision of the Companies Act, 1956 and rules made there

Under.

(vii) In our opinion, the Company has an internal audit system

Commensurate with its size and nature of its business.

(viii) The Central Government has prescribed maintenance of the cost

Records under Section 209(1)(d) of the Companies Act, 1956 in respect

Of the Companys products. As per the information and explanations

Provided to us, we are of the opinion that prima facie, the prescribed

Records have been made and maintained. We have however not made a

Detailed examination of the records with a view to determine whether

They are accurate or complete.


38

(x) There are no accumulated losses as at 31st march 2009. The

Company has not incurred any cash losses during the year covered by our

Audit and the immediately preceding financial year.

(xi) Based on our audit procedures and the information and explanations

Given by the management, we are of the opinion that the Company has not

Defaulted in repayment of dues to financial institutions, banks or to

Debenture holders during the year.

(xii) The Company has not granted any loans and/or advances on the basis of

security by way of pledge of shares, debentures and other securities.

(xvi) The term loans raised during the year were applied, on an overall basis,

For the purposes for which the loans were obtained.

(xvii) The balance sheet of the Company, we report that the Company has

Not used funds raised on short-term basis for long-term investments.

(xix) The Company has not issued any secured debentures during the

Year. The Company has created security in respect of debentures issued

In earlier years.

(xx) During the year the Company has not raised any money by way of

Public issue.

(xxi) According to the information and explanations given to us, no

Fraud on or by the Company has been noticed or reported during the


39

CHAPTER-3

SWOT

ANALYSIS


40

SWOT Analysis

Strengths

1. Videocon has largest distributed capacity manufacturing base across India with 17

facilities and plant in china, Poland, itally, Mexico.

2. Manufacturing capacity is 1, 40000 units.

3. Videocon has a network of 400 plus service and 85 mobile service vans to give

better service to their customers.

4. Tie up with the Matsushita electric company of Japan add to the goodwill of

Videocon

5. Customers are aware about Videocon’s products.

6. Company has good brand name.

7. Strong backward integration

8. Videocon has largest distribution manufacturing based across in India.

9. Large brand basket

10. Multi brand strategy

11. 3rd largest picture tube manufacture in India

12. Cheap price.

13. Globally acceptance.

Weaknesses

1. Less investment on advertisement of Videocon CTV

2. Fewer margins to the distributor/dealer.

3. Weak promotional strategy of CTV.

4. No proper approach of target customer.

5.wide brand basket, which might lead to conflictof interest unless

Effectively managed

6.CRT technology is losing popularity.

7.less focus on unconventional channel.

8. Not providing good service.

9.No exclusive show rooms


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Opportunities

1. Videocon takes over the Electrolux.

2. Videocon buy Thomson color picture tube manufacturing plant.

3. Videocon international is going global.

4. Videocon exploring whole new segment

5. During the climate of Jaipur becomes hotter day by day and coolers do

Not fully satisfy the customers requirement. This provides a great

Opportunity for ac manufacturers.

6. Growing semi urban market.

7. Industry is in increasing phase.

8. Price has come down; now more and more people are going for it.

9. Due to financial facilities even the medium segment is going for it.

10. Purchasing power of people is increasing day by day.

Moving into new attractive market segments.

11. Focused on unconventional channels.

12. Mergers joint venture of strategic alliances.

Threats

1. Entrance of global competitor like china.

2. Brand loyalty is more of LG &other company.

3. Market condition like slumps in market.

4. A new competitor in your home market.

5. Competitor has a new innovative substitute product or service.

6. Increased trade barrier.

7. Brand reputation is not good.

8.Competition in global CPT market especially from integrated players such as LG-

Phillips, Samsung, and Matsushita is intense.


42

CHAPTER-4

LEARNING

EXPERIENCE


43

LEARNING EXPERIENCE 1. During the project training in the market, I understand how it works

practically from start point to end point. Before that I have only

theoretically idea of marketing management.

2. It is great experience to see these entire things happen infront of

eyes. It enhances my practical knowledge from one level to another

level.

3. I have also learnt how corporate world functions and the importance of

discipline in your work life.

4. My manager supperted me in gaining sufficient knowledge about

the companyand industrythis help me complete the project

successfully.

5. I have learned about the videocon products esp. television which

are sales in India

6. I have learned about sales procedure of company.

7. I have learned about the competitors of videoco

8.I became much more confidant and the experience has helped

me to brush my communication skills.

9. Apart from this entire thing it gives me real picture about supply

chain. I visited each department & it is good learn experience to me

when employees share their experience for the organization to

achieve the goal.

10. I have learnt that to convince someone what is required is complete

knowledge of your product and how will it benefit the client

11. The training was informative & educative. It was a practically

exposure to me.

Observe different strategies adopted by company and its competitors.

(Low price, quick delivery, good service)


44

CHAPTER-5

RESEARCH

METHODOLOGY


45

5.Research problem

Problem Statement

• The problem of this project is to know that to what level

customers are enjoying and aware of videocon TV offered by

the company and what further improvement can be done in

future in this area so as to get brand awareness. The main

objective how to increase the reputation of videocon brand in

the market

By this project I want to Create brand awareness of videocon so

it help in seller in following way:

• Videocon brand name makes it easier for the seller to

process orders and tract down problems.

• Videocon brand name provides legal protection of unique

product features.

• It become well-known brand helps the seller in segmenting

the market.

• Brand loyalty of videocon brand gives seller some protection

from competitors and greater control planning.

• Good videocon brand awareness helps in building the

corporate image.

• Videocon brand awareness gives warranty of quality and

satisfaction in the mind of the customers.


46

Videocon brand awareness helps buyers / consumers

in following ways • Brand awareness helps shoppers in moving quickly through

super market or retail store and helps in making quick

decisions.

• For customer the videocon brand is Easy to identify

and recognize

• It should be distinctive and create a good imagein

customer mind.

• Should be capable of being registered and protected

legally.

• A deep brand must have Brand Equity.

Research methodology

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.


47

5.2. 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

buyer’s 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.

The General study was converged as a specific study for videocon. The

study was initiated to find out the consumer profile, brand perception and

cross preference among videocon and Competitor brands.

Our approach to the research design tasks went through the following

tasks.

Information needed

?

Measurement and scaling Procedures

?

Appropriate Data collection

?

Sampling Process and sample size

?

Data Analysis plan


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These issues are addressed as the following

◊ Research Type Descriptive Research

◊ Data Type Primary and Secondary data

◊ Research Tools Questionnaire

Observation

Enquiry

◊ Sampling Units customer/Dealers/ Retailers

◊ Sample Size Customer (100)/Dealers/ Retailers (50)

◊ Sampling Method Random Sampling Method

◊ Sample drawn from Jaipur

5.3.Type

The data collection was done through

1. Secondary Data Analysis

2. Survey

Secondary data is obtained by contacting the retailer and dealers.

5.4.Scaling Techniques

We asked the customers to rank the various attributes on a scale of very

important, Important and not very important. To find-out the brand

perception of various brands, paired comparison between them is used.


49

5.5.Questionnaire Design

Questionnaire design was the critical issue as the questionnaire

reflects the survey purpose .The questionnaire was meticulously prepared

by identifying the various variables. The same scale of yes/no and very

important, important and not so important was used through out so as to

make the respondent comfortable.

Firstly a questionnaire was prepared and few people were surveyed. After

this survey we realized the flaws in the questionnaire and then a modified

questionnaire was prepared and people were surveyed on this modified

questionnaire.

5.6 Sampling Techniques

In the survey conducted, the sample was random in nature comprising of

people from different age groups and income stratas.

4.7.Data Collection

Data collection is the important step after the sample is selected on which

the survey is being conducted. With data that is available in the hard

form we converted that to electronic form, to analyze the data using the

MS Excel softwares. In the data collection customers were approached

during the working hours at dealers point.

The first part of the survey was a disguised survey was there was no

mention of videocon as Organization. It was conducted as a part of

institute project. Purpose of the survey was explained and was asked


50

whether they are interested to take part in the survey Later Questionnaire

was handed over to them, and necessary instructions were given to

complete the questionnaire .The questionnaires were returned back after

filing up on their convince, While receiving the filled in questionnaire

care was taken to check whether there are any unfilled items in the

questionnaire.

5.8. Data Analysis

The data of score of features and score of brand perception was fed into

the excel sheet. Separate Excel sheets were employed for analysis of each

brand and also to keep it concise and unambiguous. For data analysis I

use many types of charts:

• 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 line and are equal widths. The lengths of the bards are

proportional to the value they represent.


51

5.9 Limitations of Survey

Response Errors - These may arise when the respondents give

inaccurate or incomplete answers. For e.g. in our survey a respondent

may not mention that he had test driven a car before purchasing it A

major problem faced in the survey involved the comparative ratings of

various attributes for all the brands of cars. Many of the respondents were

not very willing to rank so many factors as they perceived it to be time

consuming.

Open Ended Questions – All the questions in the questionnaire were

open-ended to avoid any kind of bias from the respondents end. But a

drawback of this approach is that there was an incomplete capture of his

responses, as the respondent could not always ome out with the purchase

steps and the time taken in them. The reasons for such inaccuracy could

be because of unfamiliarity, fatigue, boredom, faulty recall and the

Question format.

Random Sampling Errors – This can occur, as the particular sample

selected is an imperfect representation of the population of interest. The

area covered in the survey was jaipur region and the customer

preferences and tastes in different

Regions could not be covered.


52

CHAPTER-6

FINDINGS

AND

ANALYSIS


53

Demographic profile Gender profile Male 28% Female 72%


54

FAMILY-INCOME

• Income group determines the sector in which a company wants to foray and be

a market leader; also knowing the income level of the customer will help the

company to modify the products according the buying capability of the

customer, which depends upon the Income level.

• Here we have divided the customers according to Monthly Income and found

that the most of the consumer income is below Rs10000,so they prefer only

less costly television.

• There is also good amount of people of high income (Rs 350000+)

• Here I can infer that there is all income level people available in this segment so

company need a good product range.

OCCUPATION DISTRIBUTION


55

Inference:

• This diagram show that most of the people occupation is private

service.

• Also good amount of business man available here.

• By this we can know about difference in preference.

• By knowing occupation distribution clearlythe company can

segment and target customer according to their occupation.


56

Awareness about videocon, SAMSUNG & LG by Customers

(Given in percentage form)

From the above pie – charts, it is clear that most of the customers

(62%) of Videocon came to know about Videocon through TV

advertisement as compare to customers of Samsung and LG. As far as

print media ad is concerned, only few customers came to know about

Videocon through print media ad as compare to customers of Samsung

& LG. But no customers of Videocon came to know about Videocon

through hoardings and billboards, but few customers came to know

about Samsung & LG through hoardings and billboards.

Hence, we can infer that Videocon is doing positioning through TV

advertisements rather than through print media ad and hoardings and

billboards. They should more focus on word to mouth marketing

because they are weak in this.


57

Why videocon, SAMSUNG or LG?

(Given in percentage

form)

Inference

From the above figures, it indicates that people give more preference

to price as compare to other attributes (Like Brand & Quality) while

buying the Videocon products. we observe here that service is not

good at videocon .

Hence, we can infer that LG & Samsung are strong brand and

having more quality than Videocon (as given in Table and Pie-chart).

Also, LG & Samsung products are more expensive than Videocon.


58

From where you prefer buying consumer durables

Co.shoppee

Showroom

Exhibitions

On-line

Inference:

1. A majority of customers prefer to buy from co.shoppee. Very less

proposition of customers buys from Online and Exhibitions.

2. 49% customers are prefer to by from the showrooms because the

showrooms are more convenient to customers they also think that

these shops give more discounts.

3. People are less interested to buy from the exhibition they only visit

the exhibition for price quotation of the product and the

comparison of the product.


59

You prefer to buy from the same as you have mentioned in above que. Because of

following reasons

Attractive Price

Service

Demonstrations

Offers

Convenience

Inference

1. Customers buy from showrooms because of the service and convenience.

These are two main factors.

2. Customers are preferred to buy from the showroom because of they think that

these convenient store may provide good after sell service.

3. Customer also thinks that there is more chance to bargain and they can get

more discounts in these showrooms.

4. Price also a factor that attracts the customer in these showrooms.


60

Do you prefer any financial scheme to purchase consumer durable?

Yes No

Inference

1. Majority of the consumer donot want to go for financial scheme.

2. 16% consumer is not a small amount, there is only t.v.few company which

provide financial scheme

3. If t.v. Company easily provide this scheme to consumer so they can attract

more customer.


61

Would you wait for festive season for available discounts for purchase a Television?

Yes No

Inference

By this we can infer some customer prefer to buy t.v. on some festival.

North India is more belive in festival.

On festival company can attract customer by give some typa of discount .


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Up to how much money are you willing to spend on a t.v? at this time:

a) Less than 6000

b) 6000-13000

c) 13000-20000

d) 20000-30000

e) more than 30000

Inference: By this diagram I can infer than most of customer are see price, if company provide some good product with more features and style and design it will help in increse market share. Some customers are want to spend a big amount of money on t.v. these customer don’t care money because of high income so company also need to work on R&D, so company can provide a different product.


63

How do you feel after using the videocon t.v?

a) Excellent

b) Good

c) Fair

d) Poor

Inference

There is 19% customer who not satisfies with product and feels poor about the t.v.

Company has to find out all the reason and should work on it.

If company don’t attarct old customer this will become a big threat for company.


64

CHAPTER-7

FINDING

AND RECOMMENDATIONS


65

Dealer survey Findings

1. By calculating the display share we found that in most of store VIDEOCON

has 24% display share almost all categories.

2. By the actual monthly sale of particular store we came to know the capacity of

the store and how much product can they sale.

3. It helps us to know that weather dealer is capable of being a direct dealer of

VIDEOCON or not and it also helps to find out the new dealer who are

capable of being the dealer of VIDEOCON.

4. We also came to know while visiting the shops that there was big problem of

after sale service.

5. Many dealers were facing the problem of after sale service because there is no

follow up calls from VIDEOCON.

6. Demo calls also not done properly.

7. Videocon is on 3rd rank in jaipur CTV.

8. Sales promotion scheme are sufficient.

9. Pricr range preferred by consumer is generally in between 70000 to 13000.

10. Dealer are not satisfied with the incentive provided by the company

11. The top competitor of VIDEOCON product in Jaipur is LG and SAMSUNG.

12. In Jaipur area the performance of VIDEOCON is in better position but the

competitor also hold closer margin.

13. There is high growth of sale in market due to booming in new technology and

better service.


66

14. Word of mouth plays a vital role in awareness among customer. This is one

factor, which can play a good role in promotion of products as well as

demonstration given by the shopkeeper also plays a vital role for customer.

15. Marketing growing so that is good sign for company in coming year.

16. Consumers are mostly gets attracted by the price discount offered by company

and product warranty

RECOMMENDATIONS AND SUGGESTIONS

1. VIDEOCON should improve it’s after sale service because its hits badly

VIDEOCONs market share in Jaipur region.

2. More detailed customaries service is to be provided.

3. The training to in shop demonstration should be given at frequent time

interval and feedback should be considered positively.

4. The company should look into the matter of person hiring for in shop

demonstration. A big VIDEOCON showroom should have at least 2 such kind

of person.

5. VIDEOCON should try new dealer who have the potential. So they can target

more market.

6. As there is a bottleneck competition between Samsung and VIDEOCON, it is

necessary to take measure steps to overcome the area of downfall in

VIDEOCON with respect to Samsung.

7. The marketing managers should make better relations with dealers and

reputation of the company.

8. Customer considers quality as their first preference, so the company should

give more stress on this.

9. The switching of customer from VIDEOCON product to other brand is due to

the bed after sell service in shop.


67

10. The product is well aware and it is on top of mind of customer. So company

should always improve services and update their technology.

CUSTOMER SURVEY FINDINGS

1. Secondary supports play an important role in the customers mind and create

awareness among the customers. The secondary support includes

Demonstration, Exhibition & Even Sponsors.

2. From the survey it was found out that the majority of customers don’t buy

consumer durables from exhibitions. They just visit the exhibitions to see the

co. latest model.

3. They want to buy from the showrooms or from co. showrooms. For them

service is important. Beside convenience and other factors service is key

factor.

4. Also majority of customers do not want any financing scheme for purchasing

the durables.

5. There was heavy rush on weekends so large numbers of ISD’s were appointed

that day. Also the live demo calls helps in selling. Exchange offers also

generate sale.

6. Customers are also now very choosy in buying the product and it is important

for the company to make loyal customer of their brand.

7. In survey we found that VIDEOCON has captured maximum market share in

every category. VIDEOCON dominates CTV, LCD, and Refrigerator, and

Washing machine, category.


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8. The product is well aware and it is on top of mind of customer.

9. Customers are also now very choosy in buying the product and it is important

for the company to make loyal customer of their brand.

10. Spending on advertisment and publicity of less as compare to the competitors.

There is need to increase advertisement. Consumer prefers electronic media for

advertisement and retailer also prefer TV advertisement.

11. The quality of videocon CTV is acceptable to the market. Consumer and

retailer both are satisfied with the quality of videocon CTV.

12. Consumers are mostly gets attracted by the price discount offered by

company and product warranty.

13. The categories of the people who are using the CTV are mostly economic

income people.

14. LG and samsung are competitors of videicon ‘s CTV.

15. Consumers are aware about videocon TV.

18.Customer perception about videocon TV is good.

16. Advertising of videocon CTV is not striking as compaer to the competitors

RECOMMENDATIONS AND SUGGESTIONS

• Exhibitions do not help to generate so much sells but they should be

conducted regularly. This helps in generating awareness regarding the product

in customers, which ultimately helps in sales.

• Also it is helps in advertising for the new products. Like in this exhibition

new LCD was advertised. Company should always focus on service.


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• Display share should be increased where there is less than 50% as

VIDEOCON also believes that “JO DIKHTA HAI WO BIKTA HAI”.

• Company should try to improve service. No doubt the company products have

technically edge over competitors but in long run it may hamper the

company’s profit.

• Company should concentrate more on its major drivers LCD, IT, and GSM.

Branding and promotions should be done effectively as it creates a long

lasting image in the mind of customers.

• Company should also cater to the needs of sub dealers as some of the sub

dealers have potential of high sales.

CONCLUSION

Jaipur market is still a virgin market for these techno-survey Videocon

products. Customers need to be made aware of the productive usages

of these products if Videocon want to target these untapped market

segments of customers and rural customers. Also Videocon need to

modify their advertising strategies in order to promote these products

and services. This also a challenge for Videocon, for a positive

thinking about Videocon

Hence Videocon need to work upon the real factor through

Dealer and Retailer for a KAIZEN continuous productivity in these

products will make these products more friendly and customized.

Hence Videocon will be able to win a major market share

between the competitors.


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ANNEXURE


71

DEALERS QUETIONARIES

Dear Sir/Madam,

I, student of RIMS (ramaiah institute of management studies) Bangalore am

conducting a survey for the television industry. We request your kind cooperation

1. Name of the Dealer/Retailer………………………………

2. Address………………………………………………………………

…………………………………………………………………………

……………………………………….

3. Mention the brand name of the T.V presents in your

Showroom?

1 2 3 4 5

4. What are the ranges of price that the company offers?

................................................................................................................................

............................................................................................

5.Rank the various brands in order of their selling

1 2 3 4 5

6.Why the rank 1) Product is sold high?

a) Less Price [ ]

b) Design and style [ ]

c) Good brand image [ ]

d) Good product features [ ]

e) After Sales Services [ ]

f) Durability [ ]


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a) Less Price [ ]





f) Durability [ ]


a) Less Price [ ]





f) Durability [ ]

9.What more can the company do to increase its sales?

………………………………………………………………………………

…………………………………………………………………………

10. According to you which company has the best marketing strategy?

………………………………………………………………………………

…………………………………………………………………………

11.Any Suggestions:………………………………………………

……………………………………………………………………………

……………………………………………………………………………


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CONSUMER SURVEY QUESTIONNAIRE

Dear Sir/Madam,

I am student of RIMS (ramaiah Institute of Management studies) Bangalore and as

part of our curriculum I am conducting a market research. I would like your

cooperation for the same, with an assurance that all the information, which you’ll

give, will remain confidential.

Customer’s personal profile:

1. Name………………………………………………………………………….

2. a) Age ( In years ) : ……………………………………............................

b) Gender (please tick) : Male / Female

3. Educational Qualification……………………………………………………..

4. Address. ………………………………………………………………………

……………………………………………………………………………......…..

5. What is your occupation?

a) Business b) Govt. Service

c) Pvt. Service d) student e) others

6. What is your monthly income?

a) Below Rs 10000 b) Rs 10000-15,000

b) Rs 15,000-25,000 d) Rs 25,000 -35000

e) Rs 35000+

Consumer Survey for various Brands of television:

1. Which of the company’s products would you prefer to own?

a) Videocon b) LG

c) BPL d) ONIDA e) samsung

f) Others (please specify) ………………………………………


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2. Why you prefer this company product?

……………………………………………………………………………

3. What were the factors that persuaded you to come to your chosen brand?

a) Company advertisements:

b) Talk to friends and colleagues

c) Dealer’efforts

d) Any other; please specify ………………

4.Do you prefer any financing scheme to purchase consumer durables?

a) Yes b) NO

5. While purchasing consumer durable which parameter influences you?

(Please rate the following sources of information)

Price. ………………………

Brand Image ………………………

Product feature ………………………

Service. ………………………

Durability ………………………

Design and style .................................

6. From where you prefer buying consumer durables?

a) Co.shoppee b) Showroom c) on-line d) exihibition

7.You prefer to buy from the same as you have mentioned in Q.6 because of

following reasons?

a) Attractive Price b) Service c) Demonstrations d) Offers

e) Convenience

8. Up to how much money are you willing to spend on a t.v? At this time:

a) Less than7000 b) 7000-13000 c) 13000-25000

d) 25000-35000 e) more than 25000


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9. Would you wait for festive season to avail discounts?

a) Yes

b) No

10. Which TV Channels do you watch on a regular basis?

…………………………………………………………………………………………

…………………………………………………………………………………………

11. Which Newspaper/Magazines do you read?

…………………………………………………………………………………………

………………………………………………………………………………………….

12. How do you feel after using the videocon t.v?

a) Excellent b) good c) fair d) poor

13.Any other comments. …………………………………………………………….

...………………………………………………………………………………………

………………………………………………………….. ……………………………

Thank you for participating in the survey


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REFERENCE:

Books

• Philip Kotler, Marketing Management, 13t h Ed,

Princeton – Hall India 2009

• Marketing Research – Naresh K. Malhotra

• Business research method- S. N. Murthy

Website:

• Http: www.videconworld.com

• http: www.google.com

• http: www.wikipedia.org

• www.in.lge.com

Magazines

• Business today • Business world

Newspapers

• Economic Times • Times of India

I AM ASHOK KUMAR A MBA STUDENT PLEASE WRITE ME

CORRECT FEEDBACK ABOUT MY PROJECT.

ID [email protected]

[email protected]

Thanks…all the best

videocon television project report

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