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INDEX
S NO. TOPIC NAME PAGENO.
1. Executive Summary 2-4
2. Introduction 5-7
2.1 Ch-1 Study of The industry 8-27
2.2 Ch-2 Study of The Company 28-47
2.3 Ch-3 SWOT Analysis 48-51
2.4 Ch-4 Learning Experience 52-54
3 Ch-5 Research Methodology 55-64
4 Ch-6 Analysis 65-82
5 Ch-7 Finding and
Recommendations
83-88
5.1 Conclusion 89
6 Bibliography 90
7 Annexure 91-99
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INTRODUCTION
Purpose of the project
To analyze the growth of the videocon products in the market.
To analyze the demand of the videocon products amongst the dealers and
retailers.
To make comparitive analysis of different products with their respective
competitors.
To analyse the companys performance during pre sale andpost sale activities.
To suggest various measures of growth to the Videocon.Ind..Ltd.
LIMITATIONS
The data that will be collected from clients is through questionnaires and at times
it is subjected to subjectivity.
The data collected is primary and secondary and have chances of discrepancy.
Company policy: No access to secret and confidential reports and data of the
company. Sources and Methods
Primary and secondary data will be collected which help in carrying the project further
and will provide the required information.
Primary Data
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Information from company guide
Information from companys staff
Information from questionnaire
Secondary Data
Secondary data collected from various published and non published resources.
Further Introduction
Every business organization that comes into contact with the customer
develops a perception in the mind of the customer . Today in t his
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 f or 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
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The principle cause behind this project is to know that to w hat
level customers are enjoying and aware of Videocon TV offered
by t he company and what further improvement can be done i n
future in this area so as to get brand awareness .
2.Sub-Objective:
T o have an overview of Videocon.
T o know t he reputation of Videocon T.V . in the mar ke t.
How the consumer preference towards the brand Videocon.
T he 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.
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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,
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microwaves, built-in appliances, tumble dryer, personal care products, etc.
3.Moulded Luggage
includes plastics.
4.Clocks and Watches
5.Mobile Phones
ABOUT CONSUMER ELECTRONICS INDUSTRY
1.History of consumer Electronics in India
T he Electronics Industry in India took of f around 1965 with a n
orientation towards space and defense technologies . This was rigidly
controlled and initiated by t he government. T his w as followed by
developments in consumer electronics mainly with transistor radios ,
Black & White TV , Calculators and other audio products . Colour
Televisions soon follow ed. In 1982 a significant year in t he history of
television in India t he government allowed thousand of colour TV
sets t o be imported into the country to coincide with the broadcast of
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Asian Games in New Delhi . 1985 saw the advent of Computers and
Telephone Exchanges, which were succeeded by Digital Exchanges in
1988. T he period bet we en 1984 and 1990 w as the golden period f or
electronics during while the industry witnessed continuous and rapid
growth. From 1991 onwards , there was first an economic crises triggered
by the Gulf War , w hic h w as 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 .
I t is currently worth $ 10 Billion but according to estimates , ha s the
potential to reach $ 40 bill ion by 2010. The largest segment i s the
consumer electronics segment. While is largest export segment is the
consumer electronics segment. While is largest export segment is of
components.
4 The breakup of production in various segments the industry is s how n
below :
1950s Radios -imported & Sold
Late 1960s B&W TV Transmission started
1970s Manufacturing of B/W TV started
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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 MNCsPanasonic, 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. CURRENTSCENARIO
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).
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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.
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
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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 Porters 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 Porters 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
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the strength of your current competitive position, and the strength of a position youre
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.
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)
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
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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
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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.
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--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.
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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
indigenization. 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 cannibalization 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.
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 analyzed 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
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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 companys 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.
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 centers and 200 distributors in any town with more than 1 lakh population.
All BPL dealers are linked via VSAT nodes, ensuring online availability of
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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
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working capital to manage inventories.
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 barrier to entry.
3.3 Threat of Substitutes goods (low)
In Porters 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
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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
Videoconss 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
been the most aggressive amongst industry leaders as far as pricing is
Concerned and hence their realization 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 bargainpower of Suppliers because big global
supply chain management. There is direct negotiation with supplier in order to encourage
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
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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 color picture tubes.
The other important components include electronic circuit boards, tuners, high-
tension transformers and molded plastic casings. The demand
For colour picture tubes (CPT) has been rising steadily. But at the same time owing
To customs and import liberalization, 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.
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
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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 favorable or adverse. Favorable 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 favorable 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 strategize 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
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creating higher order universal benefits and sensitizing the larger audiences to it.
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
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C OM PA NY PR OF ILE
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
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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.
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
Technical Support
Transformers
Matsushita Electric Washing Machine Technical * Collaboration
Matsushita Electric Air Conditioner Design & Drawing
Matsushita Electric Refrigerator Design & Drawing
Sansui Electric Co. Ltd Audio Products
ODM for Indian Market
And Colour TV
Techneglas Glass Shell Technical Collaboration
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Akai Audio Products
ODM for Indian Market
And Colour TV
Hyundai Colour TV ODM for Indian Market
Electrolux AB Sweden Refrigerator,
1.ODM & Indian Market
Air Conditioner and
2.Sourcing of components for
Washing Machine
Global Market
3.ODM for Global market
Vision & Mission
Videocons mission: a reflection of continuity and change
Videocons 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
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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. Videocons ingenious manoeuvres are actually flexi-strategy that
abstracts from shifting ground conditions and decides game plans, or sometimes
changes the rules of the game.
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. Videocons foray into oil and gas is a
bold and intrepid Endeavour that arises from immense faith on the surefooted
competence of the companys in-house managerial talent.
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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 customization 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.
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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 protection
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
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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.
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.
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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.
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.
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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)
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Mr. Ajay Saraf (Nominee - ICICI Bank Limited)
ORGANIZATION STRUCTURE CHART:
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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.
FINANCE DEPARTMENT
Functions:
To comply with legal and other requirement.
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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.
MARKETING DEPARTMENT
Functions:
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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.
PRODUCTION DEPARTMENT
Functions:
Production and planning
Purchasing
Stores
Design and technical supports
Works
Production cycle:
AUDIT REPORT
We have audited the attached Balance Sheet of VIDEOCON INDUSTRIES
LIMITED, as at 31march 2010, Profit and Loss Account.
The Cash Flow Statement of the Company for the year ended on that date
Annexed thereto. These financial statements are the responsibility of
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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 2010.
(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
Verification of fixed assets, other than those under joint venture, has
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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
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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
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
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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.
(x) There are no accumulated losses as at 31st march 2010. 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.
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(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
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CHAPTER-3
SWOT
ANALYSIS
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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 Videocons 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.Third largest picture tube manufacture in India
12. Cheap price.
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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 conflict of 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
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 Lucknow 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.
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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.
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CHAPTER-4
LEARNING
EXPERIENCE
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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 in front 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 supported me in gaining sufficient knowledge about
the company and industry this 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 Videocon
I became much more confidant and the experience has helped me to brush my
communication skills.
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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)
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CHAPTER-5
RESEARCH
METHODOLOGY
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Research problem
Problem Statement
T he problem of this project is to know that to what level
customer s are enjoying and aware of Videocon TV offered by
t he company and w hat further improvement c an be done i n
future in this area s o as to get brand awareness. The main
objective how to increase t he reputation of Videocon brand ing
the market.
By t his project I w an t t o Cr eat e brand awareness of Videocon s o
it help in seller in following way:
Videocon brand name makes it easier f or the seller t o
process or de r s and tract down problems .
Videocon brand name provides legal protection of unique
product features .
I t become we ll- know n brand helps t he seller in segmenti ng
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the market.
Brand loyalty of Videocon brand gives seller some protection
from competitor s and greater control planning.
Good Videocon brand awareness helps in building the
corporate image.
Videocon brand awareness gives warranty of qua lit y and
satisfact ion in the mind of the customers.
Videocon brand awareness helps buyers consumers
in following ways
Brand awareness helps shopper s in moving quickly through
super market or retail s tore and helps in ma king quick
decisions.
F o r customer t h e Videocon bra n d is easy to identify
and recognize.
I t s h o u l d b e d is t i n ct i v e a n d cr eat e a g o o d i ma g ei n
customer mind .
Should b e capable o f being registered a n d protected
legal y .
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A deep bra n d m u s t have Br an d 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.
5.2. Research design:
Research design is important primarily because of the increased
complexity in the market as well as marketing approaches available to
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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.
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
These issues are addressed as the following
Research Type
Descriptive Research
Data Type
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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
Lucknow
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.
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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.
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 throughout 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
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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 . 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
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
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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.
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
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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 come 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 Lucknow region and the customer
preferences and tastes in different
Regions could not be covered.
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CHAPTER-6
ANALYSIS
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Demographic profile
Gender profile
Male 28%
Female 72%
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FAMILY-INCOME
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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 DISTRIBUTIO N
Inference:
0 5 10 15 20 25 30 35 40 45
other
student
private service
govt.service
businessman
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T his diagram s how that most of the people occupation is private service.
Also good amount of business man available he r e.
By this we can know about difference in preference.
By knowing occupation distribution clearly the company can segment and target
customer according to their occupation.
Awareness about Videocon, SAMSUNG & LG to Customers
( Given in percentage f or m)
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From the above pi e charts , it is clear that most of the customer s
( 62% ) of Videocon cam e to know about Videocon through TV
advertisement as compare to customers of Samsung and LG . A s f a r as
print media advertisement is concerned, only f e w customers cam e t o know
about Videocon through print media advertisement as compared to customers of
Samsung & LG . But no customer s of Videocon cam e to know about
Videocon through holdings and billboards , but few customer s cam e to know
about Samsung & L G through hoardings and billboards .
H enc e, w e can infer that Videocon is doing positioning through TV
advertisements r at her than through print media advertisement . They should more
focus on word to mouth marketing because t hey are weak in this.
Why Videocon, SAMSUN G or LG?
(Given in percentage form)
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Inference
From the above figures , it indicates t hat people give more preference
to pr ice as compare t o other attributes ( Like Br and & Quality) while
buyi ng the Videocon products w e observe her e that service is not
good at Videocon .
Hence, w e can infer that LG & Samsung are strong brand and
having more quality than Videocon ( as given in T able and Pie - chart).
Also, LG & Samsung products are more expensive than Videocon.
From where you prefer buying consumer durables
Co shoppee
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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.
You prefer to buy from the same as you have mentioned in above que. Because of
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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
21%
24%
13%
17%
25%
Sales
convinience
attractive prices
offers
service
demonstration
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more discounts in these showrooms.
4. Price also a factor that attracts the customer in these showrooms.
Do you prefer any financial scheme to purchase consumer durable?
Yes
No
Inference
1. Majority of the consumer do not want to go for financial scheme.
2. 16% consumer is not a small amount, there is only televsion few company which
provide financial scheme
3. If television Company easily provide this scheme to consumer so they can attract
more customer.
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Would you wait for festive season for available discounts to purchase a
Television?
Yes
No
Inference
By this we can infer some customer prefer to buy television on some festival.
North India is more believe in festival.
On festival company can attract customer by give some type of discount .
Up to how much money are you willing to spend on a televison? at this time:
a) Less than 6000
b) 6000-13000
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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 increase market
share.
Some customers are wanting to spend a big amount of money on television these
customer
14%
31%
24%
16%
14%
Sales
less than 6000
6000-13000
13000-20000
20000-30000
more than 30000
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dont care about money because of high income so company also need to work on R&D,
so company can provide a different product.
How do you feel after using the Videocon televsion?
a) Excellent
b) Good
c) Fair
d) Poor
Inference
There is 19% customer who not satisfies with product and feels poor about the
television. Company has to find out all the reason and should work on it.
If company dont attract old customer this will become a big threat for company.
Which are the brands you are dealing with?
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In the above analysis the total number of television available on the outlets where the
survey had been conducted were 100.
The percentage of the Videocon television have been on the highest side,but from the
feedback I got to know that this percentage has been decreased in last some years. This is
due to the bad service quality provided by the company.
The television of the Videocon is on the higher side because they are having the new
scheme of D2H in television.This D2H is offering direct to home satellite facility.
15%
42%
28%
3% 2%
10%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
LG SAMSUNG VIDEOCON Hyundai Normende Pansonic
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What is the counter size of the showroom?
All the entries above are in feets(approx.).The counter size of different companies are
dependent on the amount of demand created in the market by the company.Companies
playing a very important role in determining the counter size on different outlets across
the city.
Samsung here occupying the highest counter size occupying company.This is because theamount of L.C.D display of Samsung is more then any other company in the whole city.
6
8
7
3
2
4 LG
Samsung
Videocon
Hyundai
Normende
Panasonic
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How do you perceive the Videocon television as product for value for money?
When this question was asked to the dealers and retailers a very strange observation came
into existence.The frustration which came out were regarding the bad service quality of
Videocon in comparison to Samsung and LG.Hence,the percentage for good and
excellent is on the lower side.
20%
40%
30%
10%
good
average
poor
excellent
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How do you rate Videocon television in terms of quality as compared to other
competitors?
The percentage shown above in the graph is showing the highest percentage of users are
rating television of Videocon as of very poor standard.This questionnaire was not made
for the customers but rather for the dealers and outlets.Hence the poor rating for the
L.C.D is due to less features offered by the company and again the main issue was that of
after sales services.
15
10
20
55
Sales
good
excellentaverage
poor
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On the technical basis, how will you rate Videocon television in comparisons to
others?
According to the questionnaire most of the dealers were rating the technological aspect of
the Videocon L.C.D/L.E.D as very average in comparisons to the other competitors.The
only benefit Videocon could gain in the market was due to the services provided by them
through D2H.
20
25
15
40
Sales
very good
good
poor
average
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.The number of Videocon televisions sold by your store in one month:
Less then 2 Between 2 to 5 More than 6 More than 10 None
The amount of television majorly sold by the outlets are between 2 to 5.The basic reason for
this is because of lack of services offered by the the Videocon group. This is the data which is
dropped from the previous years.
20
50
15
10
5
Sales
less then 2
between 2 to 5
more than 6
more than 10
none
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CHAPTER-7
FINDING
AND
RECOMMENDATIONS
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Dealer survey Findings:
1. By calculating the display share we found that in most of store VIDEOCON
has third highest display in 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 Lucknow CTV.
8. Sales promotion scheme are sufficient.
9. Price range preferred by consumer is generally below Rs.10000/-
11. The top competitor of VIDEOCON product in Lucknow is LG and SAMSUNG.
12. In Lucknow area the performance of VIDEOCON is in better position but the
competitor also hold closer margin.
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13. 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.
14. Consumers are mostly gets attracted by the price discount offered by company
and product warranty
RECOMMENDATIONS AND SUGGESTIONS
1.VIDEOCON should improve its after sale service because its hits badly
VIDEOCONs market share in Lucknow 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.
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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.
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 dont buy
consumer durables from exhibitions. They just visit the exhibitions to see the
latest model.
3. They want to buy from the showrooms or from company showrooms. For them
service is important. Beside convenience and other factors service is keyfactor.
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4. Also majority of customers do not want any financing scheme for purchasing
the durables.
5. Customers are also now very choosy in buying the product and it is important
for the company to make loyal customer of their brand.
6. In survey we found that VIDEOCON has captured maximum market share in
every category. VIDEOCON does dominates CTV.
7. The product is well aware and it is not on the top of mind of customer.
8. Spending on advertisement 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.
9. The quality of Videocon CTV is acceptable to the market. Consumer and
retailer both are averagely satisfied with the quality of Videocon CTV.
10. Consumers are mostly gets attracted by the price discount offered by
company and product warranty.
11. The categories of the people who are using the CTV are mostly economic
income people.
12. LG and samsung are competitors of videicon s CTV
13. Consumers are aware about videocon TV.
14.Customer perception about videocon TV is average in nature.
15. Advertising of videocon CTV is not striking as compaer to the competitors
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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.
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
companys 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.
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CONCLUSION
Lucknow market is still a virgin market f or these techno- survey Videocon
products . Customer s need to be made aware of the productive usages
of these products if Videocon want to target untrapped market
segments of urban customers . Also Videocon needs to
modify their advertising strategies in order to promote these products
and services . This also a challenge f or Videocon ye get into a positive
frame of mind about their own company and products.
Hence Videocon nee d to work upon the real factor through
Dealer and Retailer f or an uninterrupted continuous productivity in their
Products.This will make these products more friendly and customized.
Another important aspect which the company should consider is that of providing post
sales services,this in turn could really help in booming up the sale for the company.
Hence Videocon will be able to w in a major market share in
between the competitors .
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BIBLIOGRAPHY
Books
Philip Kotler , Mar ket ing Management
13th Edition PrincetonH al l India 2009
Marketing ResearchNaresh K . Malhotra
Business research method- S . N. Murthy
Website :
htt p: www.videconw or ld.com
http: www.google.com
http: www.w ikipedia .com
Magazines:
Business today
Business world
Newspapers:
Economic Times
Times of India
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ANNEXURE
DEALERS QUETIONARIES
Dear Sir/Madam,
I, student of JKPS (JK Padampat Singhania Institute Of Management And
Technology)am conducting a survey for the television industry. We request your kind
cooperation.
1. Name of the Dealer / Retailer
2. Address
.
3. Mention t he brand name of t he T.V presents in your
Show room?
1 2 3 4 5
4. What are the ranges of price that the company offers?
................................................................................................................................
............................................................................................
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5.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 [ ]
6.Why the rank 2) 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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7.Why the rank 3) Product is sold high?
a) Less Price [ ]
b) Design and style [ ]
c ) Good brand image [ ]
d) Good product features [ ]
e ) Af ter Sales Services [ ]
f) Durbility [ ]
8)Which are the brands you are dealing with?
LG SAMSUNG SONY VIDEOCON ONIDA
SANSUI PHILIPS OTHERS
9)What is the counter size of the showroom?
LG ---- SAMSUNG ---- SONY ---- VIDEOCON ---- ONIDA ---- SANSUI ---- PHILIPS ---- OTHERS ----
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10)How do you perceive the Videocon television as product for value for money?
Good Excellent Average Poor
11)How do you rate Videocon television interms of quality as compared to other
competitors?
Very Good Good Average Poor
12)On the technical basis, how will you rate Videocon televisions in comparisons to
others?
Very Good Good Average Poor
13)The number of Videocon televisions sold by your store in one month:
Less then 2 Between 2 to 5 More than 6 More than 10 None
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14)How often do you face complaints regarding Videocon televisions?
Frequently Seldom Never
15)Are the customers satisfied with the televisions of Videocon:
Yes No
16.What more can the company do to increase its sales?
17 According to you which company has the best marketing strategy?
18.Any Suggestions:
19)What according to you are the advantages of Videocon televisions over others??
20)Dealing of which brand gives you the maximum profit margin?
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21)What are the drawbacks of the Videocon televisions a stated by the customers?
CONSUMER SURVEY QUESTIONNAIRE
Dear Sir/Madam,
I am student of JKPS(JK Padampat Singhania Institute Of Management And
Technology) 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
youll give will remain confidential.
Customers 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
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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 companys products would you prefer to own?
a) Videocon b) LG
c) BPL d) ONIDA e) samsung
f) Others (please specify)
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) Dealerefforts
d) Any other; please specify
4.Do you prefer any financing scheme to purchase consumer durables?
a) Yes b) NO
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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. .
...
..
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