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A
PROJECT REPORT ON
“MARKET RESEARCH OF SET TOP BOXES”
For
VISHAY Components India Ltd.
By
Mr.Amit H. Kudke
Under the guidance of Mr. Mahesh S. Halale
Submitted to
“University of Pune”
In partial fulfillment of the requirement for the award of the degree of
Master of Business Administration (MBA)
Through
Vishwakarma Institute of Management
Pune-48
1
ACKNOWLEDGEMENT
I would like to express my gratitude to all those who gave me the
possibility to complete this report. I want to thank the Sales Department of Vishay
components India limited for giving me permission to commence this survey in the
first instance, to do the necessary research work and to use departmental data. I have
furthermore to thank Mr. Vilas Rabde sir, who gave and confirmed this permission
and encouraged me to go ahead with this survey.
I am deeply indebted to my guide Mr.Rabde sir, whose help,
stimulating suggestions and encouragement helped me in all the time of research.
I want to thank Mr.Abhijit Saxsena for his help, support,
interest and valuable hints. Especially, I would like to give special thanks to all
staff of Vishay India for their support, which enabled me to complete this work.
Amit H Kudke
2
INDEX
Sr No. Topics Page no1 Executive Summary 12 Company Profile 53 Objective & Scope of Project 234 Research Methodology 265 Data Analysis 296 Findings 487 Conclusion 508 Recommendations 519 Bibliography 5210 Appendices 53
1. EXECUTIVE SUMMARY
3
INTRODUCTION
This project was done for VISHAY, one of the world’s largest manufacturers of
discrete semiconductor and passive components, to help it to carry out its business
development activity to further increase its market share. New strategies and policies
are continuously evolved and formulated to retain present market share and to capture
additional share. Today its buyer’s market, the companies are going all out to woo the
customer and try to meet their expectation.
The project title was “MARKET RESEARCH OF SET TOP BOXES” and it was
carried out at VISHAY Asia sales` corporate office, Pune.
The project dealt with finding out the opportunities for VISHAY in set top box
market. Set top boxes are required through different platforms such as Digital CATV,
DTH (direct to home), IPTV (Internet protocol TV) and DTT. With DTT not
functional in India the remaining three platforms requires STBs in India.
The Cable TV networks (amendment) bill 2002, made the introduction of addressable
system mandatory. According to this bill the pay channels are to be delivered only to
the addressable system and free to air channels to be delivered as a part of basic
service. The CAS was thus rolled out.
4
CAS (Conditional Access System) is the way of ensuring that only authorized
subscribers can view a particular package of programming, which is transmitted in
encrypted/scrambled form
.
CAS was implemented in zone 1 areas of Delhi, Kolkatta, and Mumbai in Jan 07 on
experimental basis. TRAI appointed a committee to study the effects of CAS in these
areas. In its report the committee recommended a 3-phase roll out of the CAS in 55
cities between June 2008 and June 2011.
CAS supports not only pay TV but also other audiovisual services and used for more
than one delivery mechanism, example: digital terrestrial TV, point-to-point
communication.
DTH (Direct to Home), it allows subscriber the reception of satellite programmes
with personal dish in an individual home.
This platform has got huge popularity in recent times. Currently, in India, DD direct,
Dish TV and Tata sky are the service providers of DTH. In future Sun TV, Reliance
BLUEMAGIC and Bharati AIRTEL are planning to start their services.
IPTV (Internet Protocol TV), It is a system where a digital television service is
delivered by using Internet Protocol over a network infrastructure, which may include
delivery by a broadband connection.
5
MTNL-providing its IPTV services in Delhi, Mumbai.
BSNL-providing IPTV services in Pune.
A general definition of IPTV is television content that, instead of being delivered
through traditional broadcast and cable formats, is received by the viewer through the
technologies used for computer networks.IPTV is a set of services delivered to the TV
by a broadband service provider as a managed service.
IPTV is often provided in conjunction with Video on Demand and may be bundled
with Internet services such as Web access and VoIP. The commercial bundling of
IPTV, VoIP and Internet access is referred to as "Triple Play" service (adding
mobility is called "Quadruple Play"). IPTV is typically supplied by a service provider
using a closed network infrastructure. This closed network approach is in competition
with the delivery of TV content over the public Internet, called Internet Television. In
businesses, IPTV may be used to deliver television content over corporate LANs.
STB (Set top box) is a receiver unit, with an internal decoder, that is connected to the
TV set. It receives and demultiplexes the incoming satellite signal and decrypts it
when provided a control word by the smart card.
FEATURES OF STB:
-Decodes the incoming digital signal.
-Verifies access rights & security levels.
-Displays cinema quality picture & sound on TV.
6
-Processes & renders Internet & interactive TV services.
The project was divided into three parts. First part was demand side research, the
second was supply side research and the third was the analysis part. PERT & CPM
were used to trace the progress of project. Time activity chart was prepared.
The VISHAY does the business of 30 Million USD in India. To achieve the Y-O-Y
growth of 10%, it was looking for an industry that would offer the business of around
3 Million USD.From the research it was found that STB industry would offer the
business of approximate 10%. So it was recommended that the company should
concentrate on this industry.
7
2. COMPANY PROFILE2. COMPANY PROFILE
Vishay was founded in 1962. During the years that followed, the electronics industry
has grown exponentially - and so has Vishay. Advances in technology have been
profound, resulting in electronic devices that have changed the ways in which people
worldwide communicate, travel, work, and play. Vishay has grown from a leader in
one area - Bulk Metal foil technology - to a leader in many areas of discrete-
electronic-component technology. Technological innovation has always been a key
part of Vishay's identity.
INITIAL TECHNOLOGY BREAKTHROUGHS:
In the 1950s, as the electronics industry began its accelerated growth, Dr. Felix
Zandman, a physicist, and current Chairman and CEO of Vishay, was issued patents
for his Photo Stress coatings and instruments. These devices are used to reveal and
measure the distribution of stresses in structures under live load conditions such as
airplanes and cars. Dr. Zandman's research in this area led him to develop Bulk Metal
foil resistors - ultra-precise, ultra-stable resistors that, even now, provide performance
far beyond any other resistor available.
In 1962, Dr. Zandman, with the financial help of the late Alfred P. Slaner, founded
Vishay to develop and manufacture Bulk Metal foil resistors. Concurrently, J.E. Starr,
a colleague of Dr. Zandman, developed foil resistance strain gauges, which also
became a part of Vishay. The Company was named after Dr. Zandman's and Mr.
8
Slaner's ancestral village in Lithuania, in memory of family members who perished in
the Holocaust.
Throughout the '60s and '70s, Vishay established itself as a technical and market
leader in Photo Stress products, strain gages, and foil resistors.
DRAMATIC GROWTH THROUGH ACQUISITIONS:
By the early '80s, Vishay was positioned to grow significantly. Because the markets
for Photo Stress, resistance strain gauges, and ultra-precise resistors were relatively
small, the Company moved to expand into high-volume resistors. The billions use
such resistors every year, in virtually every sector of the electronics industry.
Vishay's strategy was to enter the market through the acquisition of respected, well-
positioned manufacturers. The company set strict acquisition criteria for technological
strength, brand recognition, manufacturing capabilities, markets served, and
management depth.
Beginning in 1985, Vishay acquired dale electronics, draloric electronics, and
sfernice. These new operations helped produce dramatic sales growth - from $57
million to more than $400 million in just three years. Vishay quickly achieved a
position as the largest fixed resistor manufacturer in the United States and Europe.
These acquisitions also brought other passive electronic components into Vishay,
such as inductors, specialty capacitors, plasma displays, specialty connectors,
transformers, thermistors, potentiometers, and trimmers - complementing Vishay's
strength in resistors. In fact, this diversification underscores the strategy that Vishay
9
continues to pursue today - to be the manufacturer of the broadest line of discrete
electronic components in the industry.
NEW PRODUCTS AND MARKETS:
In the early '90s, Vishay applied its acquisition strategy to the high-volume capacitor
market, extending its range of products and increasing penetration in passive
components. Major acquisitions included Sprague Electric, the inventor and
manufacturer of tantalum capacitors; Roederstein, a manufacturer of film, aluminum,
and ceramic disk capacitors and thick film chip resistors; and Vitramon, a high-
quality manufacturer of multilayer ceramic chip capacitors. By 1994, annual sales had
reached $988 million.
EXPANSION INTO SEMICONDUCTORS:
In 1998, Vishay acquired the Semiconductor Business Group of TEMIC, which
included Telefunken and 80.4% of Siliconix, producers of MOSFETs, RF transistors,
diodes, optoelectronics, and power and analog switching integrated circuits.
ONGOING GROWTH:
During 2000, Vishay acquired passive-component companies Electro-Films, Cera-
Mite, and Spectrol. Each of these acquisitions, while relatively small, strengthened
Vishay's position in niche markets.
Vishay's acquisitions during 2001 included Tansitor, the infrared components
business of Infineon Technologies, General Semiconductor, and North American
10
Capacitor Company (Mallory). The addition of Infineon's infrared components group
and General Semiconductor enhanced Vishay's existing Telefunken and Siliconix
businesses - and propelled Vishay into the top ranks of discrete semiconductor
manufacturers worldwide. The Tansitor and North American Capacitor Company
(Mallory) acquisitions enhanced Vishay's position in tantalum capacitors.
In December 2002, Vishay completed its acquisition of BC components Holdings
B.V., a leading manufacturer of passive components with operations in Europe, India,
and the Far East. This major acquisition will significantly enhance Vishay’s global
market position in passive components. The product lines of BC components include
linear and non-linear resistors; ceramic, film and aluminum electrolytic capacitors;
and switches and trimming potentiometers.
Vishay acquisitions during 2002 also included Sensortronics, Tedea-Huntleigh, BLH,
Nobel, and Celtron, which were integrated into Vishay Measurements Group. This
unit of Vishay manufactures diverse products ranging from resistance strain gauges,
to transducers (the metallic structures to which strain gauges are cemented), to the
electronic instruments and systems that measure and control the output of transducers.
Vishay's growth has been fueled by research and development, strategic acquisitions,
a commitment to address customer needs, and an ongoing effort to improve product
performance. The Company continues to explore acquisition opportunities in
semiconductors, passive components, and measurement sensors and equipment.
11
ABOUT VISHAY INDIA
BC components (Beyschlag Centralab components), a leading manufacturer of
passive electronic components, emerged from Philips Electronics in January 1999.
Building upon the tradition of excellence associated with Beyschlag, Philips, and
Centralab, BC components carried out, in close cooperation with customers, a
continuous process of product innovation and improvement. This tradition of
excellence included the development of several products that have become industry
standards, such as SMD Mini-MELF resistors (now branded Vishay Beyschlag) and a
range of aluminum capacitors with industry-leading temperature tolerances. BC
components earned the status of preferred supplier to many of the world’s leading
electronics companies.
Vishay acquired BC components in December 2002. The former BC components
product portfolio is now divided into Vishay Beyschlag and Vishay BC components.
Products branded Vishay Beyschlag include carbon film MELF resistors, Cermet film
chip resistors, leaded carbon film resistors, leaded metal film resistors, thin film chip
resistors, thin film chip resistor arrays, and thin film MELF resistors. Products
branded Vishay BC components include leaded metal film resistors, leaded metal
glaze resistors, thermistors, varistors, variable resistors, ceramic capacitors, aluminum
capacitors, and film capacitors.
12
CHRONOLOGY OF EVENTS
1959 – Start of activity with ceramic Capacitors and Air Varcos
1960-68 – Potentiometers, Film caps, Elcaps (axial), Resistors
1968 – Ceramic materials development (Discontinued in 1999)
1978-83 – Metallised Film caps, Elcaps (single ended), Metal Film Resistors,
Ceramic Capacitors
1992 – Resistor (SFR) export started
1995 – Consolidation with business group Passive Components
1999 – BCc (Formation of a separate company)
2001-2002 – Establishing Export Oriented Unit (EOU) for the Roermond (Holland)
Resistor
13
ORGANIZATIONAL CHART
14
MMISSION STATEMENISSION STATEMENTT
A. PROVIDE OUR CUSTOMERS WITH:
A single manufacturing source (one-stop shopping) for discrete semiconductors and
passive components.
Quality state-of-the-art products at competitive prices.
A continuous stream of new products.
Superior Customer Service worldwide.
B. PROVIDE OUR SUPPLIERS WITH:
Reliable long-term relationships.
C. PROVIDE OUR SHAREHOLDERS WITH:
A good Return on their Investments.
D. PROVIDE OUR EMPLOYEES WITH:
Responsible and ethical leadership.
A creative working environment.
Responsible community membership at all Vishay locations.
15
PPRODUCT PORTFOLIRODUCT PORTFOLIOO
A. DISCRETE SEMICONDUCTORS:
1. RECTIFIERS: -
Schottky (Single, Dual)
Standard, Fast and Ultra – Fast Recovery (Single, Dual)
Clamper/Damper
Bridge
Super-Rectifier
Sinter glass Avalanche Diodes.
2. SMALL SIGNAL DIODES: -
Schottky and Switching (Single and Dual)
Tuner/ Capacitance (Single/Dual)
Band switching
PIN.
3. ZENER AND SUPPRESSOR DIODES: -
Zener (Single, Dual)
TVS (TRANSZORB, Automotive, ESD, Arrays)
16
4. MOSFETs: -
Power MOSFETs
JFETs.
5. RF TRANSISTORS: -
Bipolar Transistors (AF and RF)
Dual Gate MOSFETs
MOSMICs.
6. OPTOELECTRONICS: -
IR Emitters, Detectors, and IR Receiver Modules
Opto-Couplers and Solid State Relays
Optical Sensors
LEDs and 7 Segment Displays
Infrared Data Transceiver Modules
Custom Products.
7. IC’S: -
Power ICs
Analog Switches.
17
B. INTEGRATED MODULES:
DC/DC Converters
C. PASSIVE COMPONENTS:
1. CAPACITORS: -
Tantalum Capacitors
Solid Tantalum Capacitors
Wet Tantalum Capacitors
Ceramic Capacitors
Multilayer Chip Capacitors
Disc Capacitors
Film Capacitors
Power Capacitors
Heavy Current Capacitors
Aluminum Capacitors
Silicon Capacitor.
18
2. RESISTORS: -
Foil Resistors
Film Resistors
Thin Film Resistors
Thick Film Resistors
Metal Oxide Film
Resistors Carbon Film Resistors
Wire wound Resistors
Variable Resistors
Cermet Variable Resistors
Wire wound Variable Resistors
Conductive Plastic Variable Resistors
Network/ Arrays
Non-linear Resistors
NTC Resistors
PTC Resistors
Varistors.
3. MAGNETICS: -
Inductors
Transformers.
19
D. STRESS SENSORS AND TRANSDUCERS:
1. STRAIN GAUGES AND INSTRUMENTS
2. PHOTO STRESS INSTRUMENTS
3. TRANSDUCERS: -
Load cells
Weighing Systems
20
SS TRATEGICTRATEGIC ACQUISITIONACQUISITION S:S:
VISHAY ANGSTROHM
VISHAY AZTRONIC
VISHAY BCCOMPONENTS
VISHAY BEYSCHLAG
VISHAY BLH
VISHAY CELTRON
VISHAY CERA-MITE
VISHAY DALE
VISHAY DRALORIC
VISHAY ELECTRO-FILMS
VISHAY ESTA
VISHAY FOIL RESISTORS
VISHAY MEASUREMENTS GROUP
VISHAY MICRO-MEASUREMENTS
VISHAY NOBEL
VISHAY ROEDERSTEIN
VISHAY SEMICONDUCTORS
VISHAY SENSORTRONICS
VISHAY SFERNICE
VISHAY SILICONIX
VISHAY SPECTROL
VISHAY SPRAGUE
21
VISHAY TECHNO
VISHAY TEDEA-HUNTLEIGH
VISHAY THIN FILM
VISHAY TRANSDUCERS
VISHAY ULTRONIX
VISHAY VITRAMON
V ISHAY BRAND S:
A. RESISTOR BRANDS: -
Vishay Beyschlag
Vishay BC components
Vishay Dale
Vishay Draloric
Vishay Electro-Films
Vishay Foil Resistors
Vishay Sfernice
Vishay Spectrol
Vishay Thin-Film
B. MAGNETICS BRANDS: -
Vishay Dale Inductors and Transformers
22
C. CAPACITOR BRANDS: -
Vishay BC components
Vishay Cera-Mite
Vishay Draloric
Vishay ESTA
Vishay Roederstein
Vishay Sprague (includes Mallory [NACC] and Tansistor)
Vishay Vitramon
D. STRESS SENSORS AND TRANSDUCERS BRANDS: -
Vishay BLH
Vishay Celtron
Vishay Micro-Measurements
Vishay Nobel
Vishay Sensortronics
Vishay Tedea-Huntleigh
Vishay Measurements Group has two operating divisions: Vishay Micro-
Measurements (for strain gages, instruments, and Photo Stress products), and Vishay
Transducers (for load cells, weigh modules, instruments, and weighing systems).
23
CUSTOMER ASSURANCE
Vishay states its primary goal is "to exceed the expectations of our customers." The
entire organization, beginning with top management, has worked consistently to meet
that objective.
Vishay's reputation for quality is based on a commitment to the newest and most
effective design, manufacturing, testing, and management procedures - including both
Statistical Process Control and continuous improvement methodologies.
To complement quality systems for each product line, Vishay maintains extensive
testing laboratories at its facilities. As a result, the Company is well equipped to
maintain qualifications to a wide range of specifications vital to the automotive,
commercial, defence, and aerospace markets, including:
MIL (Military Specifications)
ER (Established Reliability)
CECC (CENELEC Electronic Components Committee)
DIN (German Industrial Standards)
SNQ (Service National de la Qualité - French Standards)
BS (British Standards)
NASA (National Aeronautics and Space Administration Standards)
IS0 9000 (International Organization for Standardization)
QS 9000 (Automotive Quality System)
24
Such assurances enable many customers to deploy ship-to-line programs with Vishay,
eliminating the time and cost of receiving and inspections.
VISHAY'S CUSTOMER SERVICE POLICY:
A commitment to provide world-class customer service, which starts with the
Chairman and CEO and extends through top management and the entire workforce.
Maintaining dual or triple production sites for most of its products ensure an
uninterrupted supply.
Continuous upgrading of product quality and customer service consistent with
customer expectations. Promoting supplier and customer partnerships to address
changing requirements and problem solving solutions.
Anticipating future product and service expectations of Vishay customers to ensure
continued customer satisfaction. A streamlined sales and marketing organization
offering customers national and multinational support.
25
3. OBJECTIVES
MARKET SURVEY OF STBs
PRIMARY OBJECTIVES:
To find the market size of STBs and its future growth.
To find out the major players & popular models.
To collect the BoMs of popular models.
Analysis of BoMs.
To find the opportunities for Vishay India.
SECONDARY OBJECTIVES:
Government’s regulations.
BIS’ specification for STBs.
QoS standards for each platform.
26
SCOPE OF PROJECT:
AREA OF OPERATION:
STBs are required for following platforms,
DIGITAL CATV (CAS),
DTH,
IPTV,
DTT.
Out of this listed platform DTT is not operational in India. So remaining plat forms
were studied. STB manufacturers as well as service providers were interviewed, to
find out demand for STBs. BoMs were collected from suppliers and were analyzed to
find out the potential business for Vishay India.
SAMPLING PLAN:
SAMPLE UNIT:
Individual manufacturers & service provider were taken into consideration as a
sample unit for the project.
27
SAMPLE SIZE:
A. MANUFACTURER
Jabil
Flextronic
TVSE
B. SERVICE PROVIDER
Dish TV
TATA sky
Hathway
BSNL
MTNL.
C. CONTACT METHOD:
The contact method used to contact the manufacturers and service providers, was
through prior appointment on phone.
D. LOCATION:
Pune-Jabil manufacturing plant, Ranjangaon.
TATA sky corporate office, Prabhat road, Pune.
Hathway Datacom Private Ltd, corporate office, Deccan, Pune.
Mumbai-WWIL, corporate office, Worli, Mumbai.
Banglore-Flextronic international, manufacturing plant, Housar road, Banglore.
28
4. RESEARCH METHODOLOGY
MARKETING RESEARCH:
Marketing research is defined as the, “objective & formal process of systematically
obtaining, analysis and interpreting data for actionable decision making in
marketing”.
This definition lays stress on two aspects, namely, objectivity and systematic process
in collection and analysis of data. In fact, marketing research should not be allowed to
be influenced by personal views and considerations. Before undertaking any research
study it is essential to delimit the primary objectives of the project and define the
methodology of undertaking the project in as much details as possible. The user must
be able to utilize the results for marketing decision-making purpose. That is to say,
any marketing research done on an arbitrary basis i.e. Lacks of objectivity or applying
one’s personal convenience in the data collection and interpretation i.e. No systematic
search, will certainly be of no use.
Research methodology used was survey method. The contact method was through
prior appointment on telephone.
29
SOURCES OF DATA COLLECTION:
Internet
Magazines
Journals
Meeting concerned people
PRIMARY DATA:
Primary data are the data that are collected to help, solve a problem or take advantage
of an opportunity on which a decision is pending. Primary data was collected from
manufacturers and service providers. The data collected was:
From manufacturers: BoMs and annual production,
From service providers: numbers of customers.
SECONDARY DATA:
Secondary data are data that were developed for some purpose other than helping to
solve the problem at hand. The data was collected through Internet, magazines and
journals.
Secondary data can be collected quickly and inexpensively, compared to primary
data. Secondary data is already available and can be obtained much faster and at a
fraction of the cost of collecting them again. Before secondary data can be used as the
only source of information to help solve a problem, they must be available, relevant,
accurate, and sufficient. If one or more of these criteria are not met, primary data may
have to be used.
30
Assumptions made were, average selling price of each component was assumed, the
prices of components were assumed to be constant and at present price.
31
5. DATA ANALYSIS
STBs are required for following platforms:
DIGITAL CATV (CAS).
DTH.
IPTV.
DTT.
Out of these platforms DTT is not operational in India hence only remaining three
platforms were studied.
The cable TV networks (amendment) bill made the introduction of addressable
system mandatory. The salient features of the bill are,
CABLE TV NETWORKS (AMENDMENT) BILL 2002
SALIENT FEATURES:
a. Introduction of addressable system to be mandatory.
b. Pay channels to be delivered only to addressable systems & all FTA
channels to be delivered as a part of basic package.
c. Govt. to specify rate & min. no of channels for basic package.
d. Monthly reporting by cable operators on subscriber.
e. A period of 6 months for operator to introduce CAS.
32
CONDITIONAL ACCESS SYSTEM
a. Conditional Access System was to be implemented in the four metros of
the nation on 14th July 2003, which in some cases was extended to 1st
September 2003, but somehow things didn’t move as smooth as those who
wanted it.
b. Jan 2007, CAS got implemented in the Zone-1 areas of Mumbai, Delhi &
Kolkatta.
c. Chennai was only city with CAS implemented.
WHY CAS?
a. With the introduction of CAS and Set Top Boxes, customers can choose
the programming they watch and pay based on actual viewer ship.
b. It will result in 100% declaration of subscribers as compared to previous
5-6% declaration, to ensure that broadcasters as well as govt. will get its
complete revenue.
33
SWOT ANALYSIS OF CAS
STRENGTH:
• Payment based on viewer ship.
• Transparent system will assure more
revenue to govt.
• Minimum tariff.
• Strong n/w in urban areas.
OPPORTUNITY:
• Production houses can develop competencies in
specific type of programmes.
• CAS manufacturer can expand business.
• Focused ads. can reach right audience.
WEAKNESS:
• Lack of awareness.
• Cost of switching is expensive.
• Can’t reach remote areas.
THREATS:
• DTH.
• Cost of STB.
• Due to drop in adds subscription charges may
hike.
The TRAI had appointed a committee to study the CAS implementation in zone 1
area. The committee in its report had recommended the implementation of CAS in
phases. The phase 1 of implementation will be started from 1st Oct 2008.The selected
cities and criterion for selection of the cities are mentioned below
34
SELECTION CRITERIA OF CITIES TO BE IMPLEMENTED BY CAS
a. Proximity of the cities to existing cities, which will make it easier for
ESP's to implement CAS in these cities.
b. C&S household size, larger cities to be digitized first as PSP is in those
cities to be better equipped and prepared both logistically and
financially it will also ensure that
-Larger number of subscribers gets to exercise their choice faster
-Greater numbers of STBs deployed in a quicker time span thus
ensuring that the broadcasters are to a certain extent compensated
for regulated prices by larger number of declared points.
c. Phase 1 has higher number of boxes as STBs have already been
deployed in a few of the cities while some of the cities are planning to.
digitalize much ahead of the phase plan
d. It is assumed that each city will have enough PSPs to implement CAS
on their own or through JVs with ESPs.
35
CAS IMPLEMENTATION DETAILS
DIGITALISATION IN 3 YEARS
DIGITALISATION-TO BE STARTED IN QUARTER COMMENCING 1st OCT,08
SR.
NOCITY/TOWN
TV OWNER
SHIPC&S TV HOMES
QUARTER START
ESTD
PENETRATIO
N OF STBs
ESTD STB
REQUIREMENTQ1(OCT 08-DEC
08)
Q2(JA
N 09-
MAR
O9)
Q3(AP
R 09-
JUNE
09)
Q4(JUL
Y 09-
SEPT
09)
1 BANGALORE 1458000 1393000 40 557000
2 GHAZIABAD 199000 153000 30 46000
3 NAVI MUMBAI 1000000 865000 260000
4 NOIDA 73000 60000 40 24000
5 THANE 1585000 634000 190000
6
AHMEDABAD &
GANDHINAGAR 902000 559000 40 224000
7 FARIDABAD 246000 229000 25 57000
8 GURGAON-urban 43000 28000 40 11000
9 PUNE 947000 517000 40 207000
10 VADODARA 312000 240000 25 60000
11 BHUBANESHWAR 266000 155000 40 62000
12 BURDWAN 250000 160000 90000
13 CHANDIGARH 193000 148000 40 59000
14
HYDRERABAD &
SECUNDERABAD 1235000 1182000 30 355000
15 BHOPAL 292000 184000 40 74000
16 INDORE 286000 181000 35 63000
17 JAIPUR 449000 225000 40 90000
18 KOCHI 291000 230000 20 46000
19 SHIMLA (HP) 44000 30000 30 9000
TOTAL IN 1st
YEAR 9622000 6948000 2484000
36
SR.
NOCITY/TOWN
TV
OWNERSH
IP
C&S TV HOMES
QUARTER START
ESTIMATED
PENETRATIO
N OF STBs
ESTIMATED
STB
REQUIREMENT
Q1(OCT
09-DEC 09)
Q2(JAN 10-
MAR 10)
Q3(APR
10-JUNE
10)
Q4(JUL
Y 10-
SEPT
10)
1 DEHRADUN 123000 70000 21000
2
GANGTOK(SIKKI
M) 48000 40000 30 12000
3 LUDHIANA 304000 282000 30 85000
4 NAGPUR 436000 289000 30 87000
5 NASHIK 245000 184000 30 55000
6
DISPUR/
GUWAHATI(ASSA
M) 183000 112000 30 34000
7 KANPUR 457000 286000 30 86000
8 LUCKNOW 418000 260000 30 78000
9 SURAT 625000 471000 30 141000
10 TRIVANDRUM 213000 173000 52000
11
AGARTALA(TRIP
URA) 169000 99000 30 30000
12 AGRA 220000 184000 30 55000
13 COIMBATORE 906000 861000 20 172000
14 GOA-PANAJI 79000 50000 15000
15 PONDICHERRY 207000 180000 30 54000
16
IMPHAL(MANIPU
R) 78000 60000 30 18000
17 RAJKOT 239000 171000 25 43000
18 VIJAYWADA 225000 220000 30 66000
TOTAL IN 2nd
YEAR 5175000 3992000 1104000
37
SR.
NO
CITY/TOWN
TV
OWNERSH
IP
C&S TV HOMES
QUARTER START
ESTIMATED
PENETRATIO
N OF STBs
ESTIMATED
STB
REQUIREMENT
Q1(OCT 10-DEC
10)
Q2(JA
N 11-
MAR
11)
Q3(AP
R 11-
JUNE
11)
Q4(JUL
Y 11-
SEPT
11)
1 ALLAHABAD 158000 108000 30 32000
2 ITANAGAR 112000 76000 30 23000
3 MADURAI 282000 269000 30 81000
4 PATNA 281000 193000 30 58000
5 RAIPUR 150000 68000 30 20000
6 VARANASI 149000 78000 30 23000
7 VISAKHAPATNAM 356000 348000 30 104000
8
AIZWAL-
MIZORAM 124000 84000 30 25000
9 AMRITSAR 210000 165000 30 50000
10 DHANBAD 152000 133000 30 40000
11 MEERUT 186000 162000 30 49000
12 RANCHI 142000 79000 24000
13 SHILLONG 152000 99000 30 30000
14 ASANSOL 231000 141000 30 42000
15 JABALPUR 211000 151000 30 45000
16
JAMMU &
SHRINAGAR 150000 88000 30 26000
17 JAMSHEDPUR 202000 153000 30 46000
18 KOHIMA 102000 66000 30 20000
TOTAL IN 3rd
YEAR 3350000 2461000 738000
38
SUMMING UP
TV
OWNERS
C&S TV
HOMES
ESTIMATED
STB REQMNT
IN OCT 08’-SEPT 09’ 96,22,000 69,48,000 24,84,000
IN OCT 09’-SEPT 10’ 51,75,000 39,92,000 11,04,000
IN OCT 10’-SEPT 11’ 33,50,000 24,61,000 7,38,000
TOTAL IN 3 YEARS 1,81,47,000 1,34,01,000 43,26,000
GRAPHICAL REPRESENTATION
39
INTERNET PROTOCOL TV
a. It is a system; using Internet Protocol delivers a digital television service over a
network infrastructure, which may include delivery by a broadband connection.
b. A service provider using a closed network infrastructure typically supplies IPTV.
PLAYERS IN IPTV
MTNL
BSNL
DIRECT-TO-HOME
a. Defined as reception of satellite programmes with personal dish in an
individual home.
b. It puts broadcasters directly in touch with consumers.
PLAYERS IN DTH
DISH TV
TATA SKY
DD DIRECT+
40
DISH TV
NSS6 at 95 degrees east Have 7 ku transponders Claims total 160
channels
Dish active services 7 channels 4 radio channels
Movies on demand 5 channels CAM MODULE: CONAX STB MULTIPLE
VENDOR
TATA SKY
INSAT 4A 83 Degrees
east
Have 7 ku transponders Total 103 TV channels
14 interactive channels 10 audio music channels
6 movie on demand
channels
CAM MODULE: NDS STB MULTIPLE VENDOR
41
DD DIRECT +
NSS6 at 95 degrees east Have 5 ku transponders Total 50 TV channels
21 FM radio channels Is probably the world’s only
FTA DTH platform
NEW PLAYERS IN DTH
RELIANCE BLUEMAGIC
SUN DTH
BHARATI AIRTEL DTH
ABOUT NEW PLAYERS:
Reliance-ADAG's Bluemagic will use Measat-3 satellite and is planning
to launch its DTH service in the last quarter of this year.
Reliance will use Measat's 8 Ku-band transponders.
Reliance's Bluemagic will be using MPEG-4 compression technology,
which will allow it to pack in more channels per transponder.
Bluemagic will be using Nagravision's conditional access solutions and
the STBs will be from multiple vendors
Both Reliance & SUN will be using MPEG-4 compressing format.
42
SWOT ANALYSIS OF DTH
STRENGTH:
• No middleman required.
• Large coverage area, can reach remote
places.
• Good quality of picture & sound.
OPPORTUNITY:
• Equipment manufactures can expand
their business.
WEAKNESS:
• Signals are lost during heavy rains &
storms.
THREATS:
• CAS in urban areas.
• Terrestrial doordarshan.
• Cost of STB.
GROWTH IN TV HOUSES
a. With an increase in upper middle class population demand for multiple TV
per house hold is expected to increase, replacement demand is expected to
increase with shortened replacement cycles, which can be attributed to
availability of newer model.
b. This demand is further projected to grow based on the increasing no. of
families entering the high income bracket.
43
STBs PRODUCTION (IN MILLION UNITS)
44
In 2007 the production of STBs is around 3.7 million units. Jabil produces around
1.2million STBs at its Ranjangaon factory. Flextronics produces around 2.5 million
STBs. In 2008 type II of Flextronics is expected to start with volume of around 1.7
million units. From 2008 a consistent 10% Y-O-Y growth is assumed.
PENETRATION PLAN
The BoM was analyzed and classified into active and passive components. The passive
components were Resistors, Capacitors and Inductors. The active components were
Diodes, Transistors, and Opto-components. The products, which were manufactured and
sold by company, were only considered in analysis. The BoMs of three models Thomson,
Flextronics Type I, Flextronics Type II were taken into consideration. The average selling
price of components were used and were assumed to remain constant. The BoM per STB
was found and was exploded on market size and market share was found out. Assuming
20%market share the opportunities for VISHAY were found out.
45
PENETRATION PLAN 2007
46
PENETRATION PLAN 2008
47
PENETRATION PLAN 2009
48
PENETRATION PLAN 2010
49
PENETRATION PLAN 2011
50
6. FINDINGS
OPPORTUNITIES FOR VISHAY
Assuming 20% market share opportunity
for VISHAY will be 3.6 million USD
Assuming 20% market share opportunity
for VISHAY will be 3.9 million USD
The total potential will be
18 million USD
The total potential will be 19.8 million
USD
Assuming 20% market
share opportunity for
VISHAY will be 1.8
million USD
Assuming 20% market
share opportunity for
VISHAY will be 3.0
million USD
Assuming 20% market
share opportunity for
VISHAY will be 3.2
million USD
The total potential will be
9.5 million USD
The total potential will be
15.2 million USD
The total potential will be
16.7 million USD
51
52
7. CONCLUSION
The STB industry is expected to offer a consistent business of around 3 million
USD/annum to VISHAY. Due to increase in youth employees the market for STB
is expected to grow. As implementation of CAS in other 55 cities the requirement
for STB would be 43,26,000 units. Taking just 10% Y-O-Y growth we conclude
that there is consistent business of 3 Mn USD.
53
8. RECOMENDATIONS
VISHAY is doing business of around 30 million USD in India. To achieve 10% Y-O-Y
growth it needs to find a platform that will offer it the business of around 3 million USD.
From this survey it is found that STB industry can give this expected business. The STB
industry is expected to offer this business. Hence VISHAY should use its direct
marketing resources in the STB industry.
54
9. BIBLIOGRAPHY
Websites:
www.scatmag.com
www.tatasky.com
www.dishtv.com
www.efy.com
www.vishay.com
Reference:
Marketing management-Philip Kotler and Kevin Lane Keller
Marketing Management-Rajan Saxsena
Research Methodology-C R Kothari
Magazines:
Electronic For You
Scatmag Magazine
55
10. Appendices
56