Project Report on Videocon d2h 1

8/13/2019 Project Report on Videocon d2h 1

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ACKNOWLEDGEMENT

An undertaking of this type is a result of contribution received from a number of people.

Never can this report be claimed as my individual effort. No amount of words written will be

sufficient and adequate to acknowledge all the people who have provided me with the

inspiration, guidance and help during the preparation of the project. Therefore I extend my

deep sense of gratitude towards them.

I am extremely grateful to Mr. Amit Jain, (marketing manager), who always supported me

during my summer training. I am also thankful to all other head of departments of company

for their kinds cooperation who always helped me in proving the required information

whenever needed.

Finally I Regret that it is not possible to list all those who helped me to make this project

possible. I pay my thanks and regard to all of them who are directly or indirectly involved in

me for this project.

Varun Katara

Rajiv Academy for

Technology &

Management


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PREFACE

Industry exposure is the most crucial part of the management studies in which

a student is able to synchronize his technical knowledge with practical

knowledge gained in the any of the organization.

I chose the project title D2H a New Beginning in Videocon Industries

Limited, Agra which is a great learning experience.

I hope that the words of projects will communicate the actual of experienced

gained with subtlety and precision, which is unapproachable, by any other

means.

Anybody can do a work but very few can excel it and they are said to be

repository of expertise skills of that work


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CORPORATE PROFILE

Videocon Industries Limited is one of the biggest business conglomerates in India. In 1979 Late Mr.

Nandlal Madhavrao Dhoot started this business with great vision. His vision reflects his ideology for

business

Videocon founder Late Mr. Nanadlal M Dhoot

Vision And Mission

To delight and deliver beyond expectation through ingenious strategy, intrepid

entrepreneurship, improved technology, innovative products, insightful marketing and

inspired thinking about the future.We can feel this vision while working with the Videocon also. This group is working very aggressively

under the guidance of current Chairman Mr. Venugopal Nandlal Dhoot & Vice chairman and Chief

executive Officer Mr. K R Kim. This group has good presence in various sector but consumer durables

is its major business.


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

World in major cities of India. There is availability of five major brands of Videocon Group. These all

brands have good image in the mind of the consumers. These megastores have got good starting.

There are almost 16 shops have been launched so for. Mr. K R Kim, CEO of Videocon Group has told

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

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

dealers. These stores mainly exist in major cities like Mumbai, Delhi, Gurgaon and Ghaziabad etc.

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

marketing plan for increasing sales so they are focusing on many dimension of marketing. Among

them is increasing brand visibility, for increasing this they are working to do so. DIGI World is one of

the initiatives taken by the new CEO Mr. K R Kim. There are several stapes have been taken from this

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


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COMPANY OPERATION

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

reputation in market and among customers. Other two major players LG and Samsung are Korean

player that rock entire Asia by their technology.But in India, Videocon not only give them strong

challenge but also holding the 2nd position

in this sector.

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

the different segment also.

The Videocon group emerges as a USD 2.5 Billion global conglomerate continuing to set trends in

every sphere of its activities from a conference room sized assembly line in 1979.

Today the group operates through 4 key sectors

Consumer Electronics, Home Appliances & Compressor manufacturing in

India

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

consumer products like Color Televisions, Washing Machines, Air Conditioners,

Refrigerators, Microwave ovens and many other home appliances, selling them through a

Multi-Brand strategy with the largest sales and service network in India. Refrigerator

manufacturing is further supported by our in house compressor manufacturing technology in

Bangalore.

Display industry and its components

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

Tube manufacturers in the world operating in Mexico, Italy, Poland and China, continuing to


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lead through new innovative technologies like slim CPT, extra slim CPT and High Definition

16:9 format CPT.

Color Picture Tube Glass

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

and technical expertise operating through Poland and India. Videocon will leverage on this synergy

after the Thomson acquisition to 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

sector globally.

Brand Basket

Tie-ups with Global Leaders

Partner Product Nature Of Tie-Up


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Samsung Electronics Fly Back

Transformers, Tuners

Technical Support

Matsushita Electric Washing Machine Technical * Collaboration

Matsushita Electric Air Conditioner Design & Drawing

Matsushita Electric Refrigerator Design & Drawing

Sansui Electric Co. Ltd Audio Products

and Colour TV

ODM for Indian Market

Techneglas Glass Shell Technical Collaboration

Akai Audio Products

and Colour TV

ODM for Indian Market

Hyundai Colour TV ODM for Indian Market

Electrolux AB Sweden Refrigerator,

Air Conditioner and

Washing Machine

1.ODM & Indian Market

2.Sourcing of components for

Global Market

3.ODM for Global market

HISTORY & MILESTONES

This is started in 1979 but it curved it shape in 1987 by starting manufacturing of color Television

and Washing Machine. These two products made major impact on Indian consumers. Gradually

Videocon became the brand of India.


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After that Videocon never looked back and in year 1989 they launched Home Theater System and Air

Conditioner for India. There were only very few player in that market like Philips, BPL, Crown, and

Bush etc but among them Videocon successfully made his position.

In year 1991 they started manufacturing of Refrigerators and Air coolers. Till then Videocon Washing

Machine became important product in Indian market.

In Videocon there was sea change came in year 1995, when they decided about manufacturing of

CRT shell. From here Videocon made a significant change in its policy. They focused on the

manufacturing of components which could generates more revenues and help them to keep their

product cost low.

In year 1996 they entered in the field of the small home appliances, they started production of mixer

and juicer, dice washer, iron, toaster.

First time after its inception Videocon diverse its business and selected a new field of energy by

entering into the business of Oil and Gas.

In 1998 they started manufacturing of compressor and compressor motor which help them to

reduce cost of the refrigerators and air conditioners.

One of the major achievements comes into the history of the Videocon when they took over Philips

India plant. Here Videocon made a significant impact on the Indian corporate.

This was time when Videocon wanted spread its wing for global business by acquiring Thomson

color picture tube business in year 2006. In the same year they took over Electrolux three plants.


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MANAGEMENT OF THE ORGANISATION

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

Videocon is increasing its height of business. Mr. K R Kimis Chief Executive Officer of its consumer

durable business. There is a Board of Directors in Videocon that keeps the company on the path of

success. Name of the directors are following

Mr. Venugopal N Dhoot

Mr. Pradeepkumar N Dhoot

Mr. K C Srivastava

Mr. Kuldeep Kumar Drabu

Mr. Satyapal Talwar

Mr. S Padmanabhan

Maj. Gen. S C N Jatar


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Mr. Arun L Bongirwar

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

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

Mr. B Ravindranath (Nominee - IDBI Limited)

Mr. Ajay Saraf (Nominee - ICICI Bank Limited)


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STRUCTURE OF THE ORGANISATION

As they are in many businesses with multiple brands so they have adopted MATRIX STRUCTURE. For

each and every department they have clear guidelines. Job responsibilities are quite clear. All the

employees are accountable for their job. In this organization rule regulation are pre defined and

flexible. E.g. In all branches all over India there is a Branch Marketing Manager, he/she has to report

two bosses one Branch Operation Head and Regional Marketing Manager for his all activities.


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FUNCTIONAL AREAS

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

for the organization. Major functional areas are followings

Financials Functions

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

Control over all cash inflows and outflows.

Taxation

Tight control over miscellaneous expanses

Marketing Function

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

activities are followings

Branding

Advertisement

Marketing Intelligence

About Competitors

About dealers, sub dealers and distributors

Measuring impact of the marketing activities like

Road shows

Canopies

Canter Activities


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Dangler hanging, Postering and In-shopping

Advertisement in print & electronic media

Taking feedback of the dealers and distributors about advertisements

Design new marketing ideas to create awareness and image building

Production And Operation

In this area they use only one slogan

Reduce cost, gain market but never compromise with quality

Major functions are followings

Control over inventories (not more than 3days)

Reduce wastage

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

Energy efficiency

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

Information Technology

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

possible information facility to their employee. They have their own intranet network inside


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the organization. They have vgmail.in. It gives employee to work from house and give direct

contact to the head office. Company provides enough facility to its employees to work inside

and outside of the organization. These facilities make them efficient and faster to work

proper and within given time. For all other information they have Videoconworld .com also.

It is the biggest source of information for internal and external customers. This site does not

only give the proper information about the company but also give information about

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

satisfy to visit the site.

Human Resource

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

people with passion of work for organization and they must have combination of creativity

and knowledge of how to implement plan properly.

Selection of right kind of people for right kind of job

Training

Creating positive atmosphere for work

Enrich employee efficiency for productivity

Rate employee for their performance

Time to time development program for employee


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Others

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

Logistic

This company has many MOD agreements with Sansui, Electrolux, Kenstar, Kelvinator and AKAI.

There is complexity for logistic department. They are responsible for dispatching all goods on time.

They are very important for the company and its logistic policy. Its Integrated Logistic Policy for all

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

1. Delivery of all orders within 24 hours2. All products should be delivered in proper condition3. There must not be any mismatch in delivered and ordered goods4. Defective good must be taken back to official warehouse

Quality Management Initiative

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

so there is very less chance of error. By implementing ISO standards they are able to reduce the cost

of its product to give competition to its competitors. They never forget that safety and health

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

productivity.


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VIDEOCON IN CONSUMER DURABLES

CEO Mr. K R Kim

Videocon is major Brand in Consumer durables in India. Under the leadership of CEO Mr. K R Kim,

company has reached at the 2nd

position in Indian market. The company is started its operation in

year 1979 with consumer durables business. Slowly and gradually this company gets 2nd

position in

Indian consumer durables market. There were several players in the market like Philips, Bush,

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

Indian market like Samsung, Canon, LG, Sanyo, Electrolux, Thomson, Panasonic, Sansui, Akai, Toshiba

etc. These foreign players uprooted all the Indian players but not Videocon. With the continuous

R&D, Quality, large dealer Network and after sales service make a strong place for Videocon among

Indian customer.

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

(Marketing Operation and Distribution) Agreement with Electrolux AB, Sansui, Akai, Hyundai,

Toshiba etc. They not only support these brands but help them to grow in Indian market. Presently

there are six major brands in the basket of Videocon.

1. Videocon


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2. Electrolux3. Kelvinator4. Sansui5. Akai6. KenstarAll these six are very strong brands they not only give competition to LG, Samsung etc but each

other also. These brands do well in Indian market as well as in global market also. Few brands

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

are following detail of the brands.


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VIDEOCON GROUP LOGO LOGIC

( Old Logo ) ( New Logo )

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

has shed its solid steel 'V' for a more fluid, lava like 'V', coupled with a new proposition 'Experience

change'. Prior to this, the brand has banked on other propositions, such as 'Technology for health

and pleasure', 'Bring Home the Leader', 'New Improved Life', 'The Indian Multinational', 'Whatever

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

company unveiled its new tagline recently, at an event promoting the 2009 chapter of the IIFA

awards. The new logo was unveiled in San Francisco, by the Videocon brand ambassador Shah Rukh

Khan.


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INDUSTRY ANALYSIS

ON

DIRECT TO HOME (DTH)


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CONTENTS

Chapter

1. Introduction2. Product lines and consumer behavior3. Growth of the industry4. Technology of production and distribution5. Marketing6. Innovation7. Strategies and competition in the industry8. Critical success factors

Appendices


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Chapter-1

Introduction

Overview of the Industry

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

in 1959. The transmission was in black & white. The 9th

Asian games which were held in 1982 in the

countrys capital New Delhi heralded the mark of color TV broadcasting in India. In 1991, Indian

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

investments, deregulation of domestic business emerged. This lead to the in flux of foreign channels

like Star TV and creation of domestic satellite channels like Sun TV and Zee TV. This virtually

destroyed the monopoly held by doordarshan. In 1992, the cable TV industry started which lead to

revolution.

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

breed of entrepreneurs called as cablewallahs or Local Cable Operators (LCO) taking in charge of

distribution. The film industry was shocked by this sudden growth and there were even organized

protests for calling off the Cable TV industry. There were simply too many cable operators in the

country and the channels had a difficult time in getting its returns as the existing system was a non-

addressable and the operators could simply give a reduced number of subscribers to amass profit.

This lead to the emergency of a new breed of firms called as Multi System Operators (MSO) who had

heavy financial muscles to make capital investments. . The MSO industry became highly

monopolistic which warrants government participation to ensure competition.

Later on, the United Front Government had issued a ban on use of ku band transmission. After a

change of government, the ban got lifted finally in 2001 and TRAI issued the guidelines for operating

DTH. Countrys first private DTH license was awarded to Dish TV in 2003 which started operations in

2004. Prasar Bharati also started its product DD-Direct+.

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

Set-Top Box and then sends stunningly clear picture and sound to TV which is the business under

taken by some companies by observing the rate of growth and scope for business & opportunity in

the Indian market which has 120 million viewers of TV.


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Categorization of players in the industry

Government owned player: DD Direct+.

Private players: Dish TV, Tata Sky, Sun direct, Big TV, Airtel digital TV, Videocon d2h

Brief profile of players in the industry

DD DIRECT+

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

service broadcaster nominated by the Government of India. It is one of the largest broadcasting

organizations in the world in terms of the infrastructure of studios and transmitters. Recently, it has

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

anniversary.

Doordarshan had a modest beginning with the experimental telecast starting in Delhi on 15

September 1959 with a small transmitter and a makeshift studio. The regular daily transmission

started in 1965 as a part of All India Radio. The television service was extended to Bombay

(now Mumbai) and Amritsar in 1972. Till 1975, seven Indian cities had television service and

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

radio in 1976. Each office of All India Radio and Doordarshan were placed under the management of

two separate Director Generals in New Delhi. Finally Doordarshan as a National Broadcaster cameinto existence.

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

market with the live telecast of the Independence Day speech by then Prime Minister Indira

Gandhi on 15 August 1982, followed by the 1982 Asian Games being held in Delhi. Now more than

90 percent of the Indian population can receive Doordarshan (DD National) programmes through a

network of nearly 1400 terrestrial transmitters and about 46 Doordarshan studios produce TV

programs today.


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

programming to households and businesses in the Indian subcontinent. Owned by parent

company Doordarshan, DD Direct Plus was launched on December 16, 2004. Now chairman of DD

plus+ is Shri Arun Bhatnagar and CEO is B S Lalli under the ministry of information and broadcasting.

Dish TV

Dish TV is the first private DTH satellite television provider in India, using MPEG-2 digital

compression technology, transmitting using NSS Satellite at 95.0. Dish TV's managing director and

Head of Business is Jawahar Goel who is also the promoter of Essel Group and is also the President

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

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

business interests in media programming, broadcasting & distribution, speciality packaging and

entertainment. Zee Network incorporated dishtv to modernize TV viewing. By digitalizing Indian

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

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

selecting channels and paying

DTH service was launched back in 2004 by launching of Dish TV by Essel Group's Enterprises. Dish TV

is on the same satellite where DD Direct+ is. Dish TV started its service in Pakistan with the

collaboration of Budget Communication. Dish TV was only DTH operator in India to carry the two

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

platform due to unknown reasons in March 2009. Dish TV uses NSS-6 to broadcast its programmes.NSS-6 was launched on 17 December, 2002 by European-based satellite provider, New Skies. Dish TV

hopped on to NSS-6 from an INSAT satellite in July 2004. The change in the satellite was to increase

the channel offering as NSS 6 offered more transponder capacity.


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Tata Sky

Tata Sky is a DTH satellite television provider in India, using MPEG-2 digital compression technology,

transmitting using INSAT 4A at 83.0. Tata sky is incorporated in 2004; Tata Sky is a JV between the

TATA Group and STAR. Tata Sky DTH endeavors to offer Indian viewers a world-class television

viewing experience through its satellite television service. Vikram Kaushik is present CEO of Tata Sky

Ltd. The TATA Group is one of India's largest and most respected business conglomerates. It

comprises 93 operating companies in seven business sectors and diversified group: information

systems and communications, engineering, materials, services, energy, consumer products and

chemicals. The TATA Group has operations in more than 40 countries across six continents and its

companies export products and services to 140 nations.

The Group and its enterprises have been steadfast and distinctive in its adherence to business ethics

and their commitment to corporate social responsibility. This is a legacy that has earned the Group

the trust of many millions of stakeholders in measure few business houses anywhere in the world

can match. The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Tata

Sky the reputation of more than 20 years experience of satellite broadcasting. SKY is well known for

the innovative products and services launched by BSky, such as DTH broadcasting in 1989, digital

satellite broadcasting in 1998, interactive television services in 1999 and the SKY+ personal video

recorder in 2001. Tata Sky joins an international group of DTH businesses that includes platforms as

far apart as the UK and Italy in Europe, and Mexico and Brazil in Latin America. Tata Sky Ltd is the

First Indian DTH provider to be awarded the ISO 27001:2005 accreditation, the ultimate benchmark

for information security. The assessment for the certification was conducted by Intertek Systems

Certification, the management systems registration business unit of Intertek Group plc and is

accredited by several internationally-recognized accreditation bodies worldwide.

In October 2008, Tata Sky announced launching of DVR service Tata Sky+which allowed 45 hours ofrecording in a MPEG-4 compatible Set Top Box. The remote is provided with playback control keys

and is being sold with special offers for existing subscribers. Tata Sky was selected as a SUPER

BRAND for the year 2009-2010 by an independent and voluntary council of experts known as Super

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

Sun Direct

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

technology, transmitting using INSAT 4B at 93.5E. It is the country's first MPEG 4 technology DTH


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service provider. Sun Direct is a DTH service in India headquartered in Chennai, Tamil Nadu. Sun

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

lack of transponders, delaying the launch. The service was finally launched on December 2007 after

availability of transponders from INSAT 4CR. Because of the lowest pricing of any DTH in India Sun

Direct spread rapidly all over the country. On December Sun Direct was launched in Mumbai and

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

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

High-Definition service in India.

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

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

efficiently. Sun Direct selected Oracle based on its convergent multi-service capabilities and proven

real-time scalability allowing it to consolidate billing operations, enables powerful new service

offerings and improves visibility into customer information across services.

BIG TV

Reliance BIG TV is a DTH satellite television provider in India based in Navi Mumbai, using MPEG-4

digital compression technology, transmitting using MEASAT-3 91.5east. It is the 5th DTH service

launched in India. Reliance BIG TV limited is a part of Reliance Communications Ltd., a subsidiary of

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

tycoon and owned by his son Anil Ambani. BIG TV started operations from 19 August 2008 with the

slogan "TV ho Tho BIG Ho" ("If you have a TV, make it BIG"). It currently offers close to 200 channels

and many interactive ones, 32 cinema halls (i.e. Pay Per View Cinema Channels) as well as manyRadio channels. The company plans to increase the number of channels in the near future to 400

and begin High Definition (HD) broadcast. It is the first Pan-India DTH provider that uses MPEG-4 for

broadcasting. There are also plans to introduce services like i-Stock, i-News and other such

interactive services in the future.

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

quality and enriched home entertainment service at value-driven pricing. Reliance BIG TV's launch in

August was probably the biggest roll-out in home entertainment ever and deployed the most

advanced MPEG4 technology that enabled them to deliver best quality digital audio-video to the


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consumer. It also got prepared for the future when Hi-Definition TV will be launched in India

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

entrants in the DTH industry.

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

literally unheard of in the DTH industry. They had effectively out-stripped the competition here.

When it came to pricingpackaging, their introductory offer stood at Rs. 1,490/- with 3 to 6 months

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

player.

Airtel digital TVBharti Airtel Limited is the flagship company of Bharti Enterprises and is Indias largest

integrated and the first private telecom services provider with a footprint in all the 23

telecom circles. As India's leading telecommunications company, the Airtel brand has

played the role of a major catalyst in India's reforms, contributing to its economic

resurgence. Airtel since its inception has been at the forefront of technology and has

steered the course of the telecom sector in the country with its world class products and

services.

Airtel Digital TV is a DTH (Direct to Home) service from Bharti Airtel. It uses MPEG-4 digital

compression with DVB-S2 technology, transmitting using INSAT 4CR 74E

Airtel digital launched on 8 October, 2008 with a 360 degree mega campaign 'Come Home to the

Magic. Since then it has launched 2 other campaigns: Stars come home (March 2009) and DTH

Picture Clarity(August 2009) has increased its channel base to 183+ channels. Airtel digital TV is now

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

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

Airtel chief Sunil Mittal said that Airtel digital TV and other DTH players have a bright future in Indian

market as the people are getting more attracted towards DTH because of its quality and

affordability.


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Videocon d2h

Videocon d2h is a DTH satellite television provider in India based in Mumbai, using MPEG-4 with DVB

S2 digital compression technology

Videocon Leasing & Industrial Finance Limited was incorporated on 4th September, 1986 as Adhigam

Trading Private Limited. In terms of the necessary resolutions

Passed under Sec. 21 of the Companies Act, 1956, the name of the Company was changed to

Videocon Leasing & Industrial Finance Limited on 14th February, 1991. The Company received a

fresh certificate of incorporation from the Registrar of Companies, Gujarat at Ahmedabad on

14thFebruary, 1991.

Videocon d2h launched May 1, 2009. it came with a very good strategy for selling both of its

electronic products like TVs DVDs along with the new set top box. This is offering direct to TV with

out any set top box also. Only the antenna is enough, it also came with DVD which is connected

directly to the TV or antenna is connected to DVD which gives a best quality of out put.


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Chapter-2

Product Lines And Consumer Behavior

Range of products

Set-Top-Box. Head-Antenna.

Cable DVD Remote LCD TV/PLASMA TV/CATHODE RAY TV/LED TV

Product description

SET-TOP-BOX:

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

Head-antenna:

Antenna which receives signals directly from satellites,

Cable:

Cable connects antenna to the set up box

DVD:

One of the recent entrants into DTH industry is vediocon. This came with set top box with DVD


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ACCESS CARD:

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

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

LCD TV:

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

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

Remote:

A compactable remote for both SET UP BOX and TV is used in operating both TV and Set top box.

Complimentary Goods

LCD TV, DVD, CT TV, Cables, plus box, Ups, Home theaters, sound box, plastic and paper which are

used for recharge cards.

Substitutes

Local Cable Operators, Inter-Net which is bringing many facilities like live TV channels, along with the

net browsing, Theaters, radio stations, I pods.


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Chapter-3

Growth Of The Industry

Rate of Growth

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

successfully resisted the impacts of the current economic slowdown. The slowdown has certainly

proved a boon for the Indian DTH industry as people have now started to cut on their entertainment

expenditure and instead of viewing movies at theatres, they are preferring to stay at home with

their television sets.

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

prevailing every where. The average Indians disposable income and purchasing has risen to never

before levels. The industry is anticipated to add nearly 5 Lakh subscribers per month during 2009

and the numbers are forecasted to surge further at a CAGR of around 30% through 2012, "Indian

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

over 8.5 million households having digital pay-TV.

A report attributes that the anticipated growth to the efforts of DTH industry players who are all

trying to lure viewers by cutting down prices as well as offering perks even though it translates into

loss of Rs 1,600-2,000 on each new subscriber acquired by them. They have started to offer a

number of value-added services such as 'movie on demand', live recording of TV content,

matrimonial match-making, etc.

Pattern of Growth

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

portion of the Indian DTH pie as possible by a handful of players. Since the DTH space denotes big

value, akin to the space occupied by television and telephony, inter-firm rivalries have thrown upprice wars, discount schemes, procurement of transponders, ambitious targets for improving the


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

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

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

term. But this industry is having very short period for making or observing a business cycle.

The analysis that can be made is though the economic cycles is not continues and it was in boom

then when the industry started and now just the economy is in recovering stage from the recession.

Interesting factor is that all the industries are hit seriously buy the rescission but DTH industry has

reported growth continuously but only it has slowdown the rate of its growth. Now the industry is

growing at 20% for every annum.

Growth Determinants

Demand constraints and SCAR are the factors which effects the growth of the industry. Growth

determinant and high TV sales increase the chance for more sales of set top box which will effect the

growth. When the facilities of the products increase it acts as a growth determinant.

The entertainment channels and the news channels players increase the growth to opt the DTH.

Some of the DTH players are bringing innovative plans like live shopping, broad band, and etc will act

as growth determinants.


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Chapter-4

Technology Of Production And Distribution

Cost Structure

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

accessory cards, Ku band transponders in the satellites, customer premise equipment(CPE). The

launch of satellites is another huge cost which the DTH plays shares the transponders. And it costs

them much than any thing. Another cost incurred is on operating cost.

Economies of Scale

Economies of scale may be utilized by any size firm expanding its scale of operation. The common

ones are purchasing (bulk buying of materials through long-term contracts), managerial (increasing

the specialization of managers), financial (obtaining lower-interest charges when borrowing from

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

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

Cost Advantages

1] Direct customer relationship.

2] Better storage

3] Extensive use of resources.

4] Availability of labour at cheap rates

Economies of Scope

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

increasing the number of different goods produced.


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Chapter-5

Marketing

Market segmentation, marketing strategies, marketing practices and marketing concepts specific to

the industry

Indian TV channel broadcast 15.7-mn advertisement every year, which totals to 362-mn seconds of

TV advertisement every year. India currently has over 400 channels.

TV viewer ship has declined by 5% since 2001. TV broadcasters are expected to go hike inadvertisement rate this year by 16-18%. Market segmentation in DTH industry mainly concentrates

on women who dont like missing their daily soap and news more ever women are able to learn

English speaking which is a very special feature of DTH. DTH also concentrates on children also by

providing them games, dictionary, some discovery videos specially inbuilt, maths, science and social

knowledge. It also focuses on old people as it has updated videos of various holy and religious

places.

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

advertisements with their brand ambassadors which attract customers, door to door selling, on the

phone selling, discount and offer sales, packages, etc

Marketing practices is a continuous process as the competition keeps increasing among the players

in the industry. Each player is investing lots of money in promoting there brands. Many players are

making advertisement with movie actor and actress as brand ambassadors for their products

because DTH is mainly considered with entertainment.

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

is having many film stars like kareena kapoor, A.R.Rehaman, saif ali khan, etc. Dish TV is also having

Super Star Sharuk khan as the brand ambassador.

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

decisions taken by the manufacturing company to increase sales, expand themselves into many

areas etc. Successful marketing practices bring sale up, while unsuccessful marketing practices have

no impact on sale or negatively impact sale.Marketing concepts specific to the industry is primarily

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


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Chapter-6

Innovation

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

innovation and economies of scale.

The concept of innovation in DTH industry is INCREMENTAL innovation; every thing that is done is

due to constant research of many marketing and analysts to bring many innovations to the existing

products in the DTH industry. Incremental innovation is the apt innovation which is suitable and allthe DTH players are concentrating up on.

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

using the products and the service.

There are many sources of innovation for this industry as mentioned in the above, the technology

and the people are the main sources for the innovation. Customers opinions and their needs can be

served by providing a service which is matching to their needs and requirements. In this days every

company setups its own R&D in its own company with very intelligent people for meeting the

expectation op the customer.

Digital TV, the DTH service from Airtel, has announced Indias first skin integration innovation on its

EPG screen in partnership with Yahoo. Yahoo takes forward its latest brand campaign YOU in this

first of its kind partnership where an online portal will use DTH as a medium to promote itself.

The Electronic Programming Guide screen on Airtel digital TV is now completely integrated with

Yahoo Indias homepage. Customers will find a message Fill your home pagewith all the things that

make YOU when they log onto to the EPG screen. A prompting Red Button will take them to a

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

campaign enables users to customized the home page as per their liking and empowers them with

the choice to integrate social applications such as Facebook with their Yahoo homepage. This whole

idea was conceived by NetworkPlay, right from design elements to execution and thanks to

Mindshare for buying into the idea and flawlessly helping people execute it.


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Tata Teleservices Limited has announced a technological breakthrougha first-of-its-kind innovation

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

subscribers to watch live television channels on their laptops while on the move, and on their

personal computers at home and in the office. The Photon TV service is exclusively available to

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

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

TATA Photon TV is a personal computer- and laptop-based video-streaming application, which allows

Tata Photon Plus users to view live TV feed from various sports, news, entertainment and regional

channels, and to watch recorded TV shows from the library (viz Coffee with Karan, Zoom, Pogo, etc),

movies, music and videos on demand.

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

while viewing Photon TV. These charges would be over and above the subscription charges for the

Photon TV. (approximate data usage is 1-2MB per Min).

Rate of innovation in this sector is growing at a faster rate in the recent years where as it is not very

impressive before this period. The reason for this is the fair competition between the all players in

this DTH industry. It led to the development of new products in this sector which also led to the

diversification of products as there is abolition of entry of foreign industries into Indian industries

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

successful product innovations like Airtel Live, Vediocon d2h.

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

pored in marketing and promotion of the service and product.

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

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

operations in DTH industry very economically.


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Chapter-7

Strategies And Competition In The Industry

Competitors, Strategies used in the industry, Porters generic strategies model, porters five forces

model and analysis using it, element of industry structure, porters value chain model analysis, swot

analysis, concept of generic value chain, concept of growth share market matrix, company position .

Competitors

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

companies like the big players in the industry wants to grab most of the market share. Some of the

companies want to achieve 10million customer base by 2010 they are Dish TV, Tata sky, Sun direct,

BIG TV etc.

The industrys objective is to achieve 60million customers buy 2012 i.e., nearly 50% of the present

existing customers.

Strategies used in the industry

Technology transfer is one of strategy used in the industry and it is existence for a long time. In

recent decades, concerted effort has been made to exploit the existing technology to a larger extent

by transfer of technology, to generate greater economic impetus. It provides opportunity to

generate larger returns on the investments made in R&D. Its importance lies in its ability to

stimulate and strengthen the innovation process.

Porters generic strategies model

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

They outline the three main strategic options open to organization that wish to achieve a sustainable

competitive advantage.


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

1. Cost leadership

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

but with as good benefits, or, the unique benefits the media products offer can over-offset the

premium.

2. Differentiation

Differentiation in DTH refers to when a organization provides unique benefits to the users through

product innovation. This is to increase the probability of the media users to choose the product. A

media organization with a target user loyalty can concentrate more on how to fully meet the target

users needs rather than on product cost saving.

3. Focus

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

number of channel availability due to which people are spoilt for choice. Thus Niche channels are the

only way to maintain viewer loyalty. TATA Photon plus is more niche oriented.

SWOT Analysis

STRENGHT


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Growing number of player and competitive advantage.

Supply creates its own demand.

Brand name

Service and flexibility.

WEAKNESS

Skilled labour

Satellite technology

Signals

Viewer migration.

Uncertainty in viewer ship.

OPPORTUNITY

Technology

Distribution

Innovation

Value adding

THREAT

Economic downturn.

Climate

Radio

Cinema halls


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Broad casting of channels

New entrants

Porters five forcemodel

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

within the industry being analyzed, the bargaining power of buyers, the bargaining power of

suppliers, the threat of substitute products or services, and the threat of new entrants (also known

as barriers to entry). They are also shown in the diagram below. Initially propounded by Harvard

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

strategic framework which one can apply to analyze any industry.

Threat of substitutes

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

are 130 million TV homes of which 71 million are served by cable and around 6 million served by

DTH with the remaining taken by terrestrial transmission. As IPTV is a new entrant there is not much

data on its subscriber base.
http://www.franteractive.com/strategy/Porter-Barriers-to-Entry.htmlhttp://www.franteractive.com/strategy/Porter-Barriers-to-Entry.html


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Bargaining power of suppliers

DTH industry relies on three major suppliers. Customer premise equipment (CPE)

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

transponders are obtaining satellites and content. With India set to overtake Japan as Asias largest

DTH by next year, the bargaining power of India DTH operators with CPE suppliers have been

steadily increasing.

Bargaining power of buyers

With enough operations to choose both from the point of alternate mediums like cable, IPTV and

terrestrial broadcast and from the point of increasing DTH operators, the consumer is at his will to

decide. Customers will continue to have a high bargaining power until DTH platforms try to

differentiate them as superior players with better content and clarity.

Rivalry among existing firms

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

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

of view as the number of channels offered by DD-Direct is very limited. However, DD-Direct does not

change any monthly subscription charges. Between Dish TV is Tata Sky there is an intense rivalry

exhibited by price war and discount schemes offered to new connections. Being the first mover, dish

TV had price advantage in both the STB offers superiors DVD quality Video to its advanced STB.

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

spend Rr.2000crs over the medium term. The companies have also set ambitious targets with Dish

TV aiming to reach 5 million subscribers in the next 18 to 20 months while Tata sky aiming to reach

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

2012.

Threat of new entrants


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

enough competition which will discourage new firms to enter this business. While getting a licensee

is relatively easy, the barriers to entry are high when it comes to pricing of CPE and getting the

required transponder. There is a definite, first mover advantage.

Analysis of the Industry using Porters value chain model

Porters value chain analysis is considered with the value analysisof the several functions of the DTH

industry, it makes to understand the importance of this model to develop and add on value to the

present features of the industry and its functioning.

Value analysis says that an effective logistics should be undertaken to commencement of the

business in cost effective way. The most the cost effective, the more value is added to the process.

It is noting but proper or optimal use of the resources present and using the technology. This value

addition is not only in the logistics, it should be carried in all areas of the management, production,

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

features and of industry.

Concept of growth share matrix (BCG model)

The BCGGROWTH SHARE MATRIX is a portfolio planning model developed by Bruce Henderson of

the Boston Consulting Group in the early 1970's. It is based on the observation that a company's

business units can be classified into four categories based on combinations of market growth and

market share relative to the largest competitor, hence the name growth share.


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Under the BCG GROWTH-SHARE MATRIX, as an industry matures and its growth rate declines, a

business unit will become either a cash cow or a dog, determined solely by whether it had become

the market leader during the period of high growth. While originally developed as a model forresource allocation among the various business units in a corporation, the growth-share matrix also

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

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

leader, and also it needs maximum market share to extent, when the market is not in incremental

state then the growth rate of the industry will retain. Again this industry follows all the variables in

the all areas till the both will come into normal level.


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Chapter-8

Critical Success Factors


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Appendices

MEDIUM 2008

TV 40.7

PRESS 46.9

RADIO 3.2

CINEMA 0.7

OUTDOOR 6.8

INTERNET 1.7

GROWTH RATE OF ADVERTISEMENT REVENUE IN DIFFERENT MEDIUM:

Medium Year of growth in 2008(%)

TV 22

Press 18

Radio 40

Cinema 50

Outdoor 14


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Indian TV channel broadcast 15.7-mn advertisement every year, which totals to 362-mn seconds of

TV advertisement every year. India currently has over 400 channels.

TV viewer ship has declined by 5% since 2001. TV broadcasters are expected to go hike inadvertisement rate this year by 16-18%.

Internet 45

Total 20


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MARKET SURVEY AND

MARKET RESEARCH


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How many dealers are dealing with

Videocon d2h ?

Yes 55

No 45

55%

45%

Market share

yes

no


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Would you be interested in dealing with

Videocon D2H ?

Yes 65%

No 35%

May Be 0%

0

10

20

30

40

50

60

70

yes no may be

Series1


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Which of the following brands do you

think has the best margin ?

Videocon d2h 05%

Tata Sky 40%

Dish Tv 40%

Airtel Digital Tv 15%

0 10 20 30 40

Videocon d2h

Tata Sky

Dish Tv

Airted Digital Tv

Series2

Series1


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Which of the following brands has the

best after sales service ?

Videocon d2h 0%

Tata Sky 70%

Dish Tv 05%


0

10

20

30

40

50

60

70

Videocon

d2h

Tata Sky Dish Tv Airtel Digital

TV

Series2

Series1


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Which of the following brands do you

think has the best name in DTH service

?

Videocon d2h 0%

Tata Sky 74%

Dish Tv 04%


Series1

Series20

0.2

0.4

0.6

0.8

Videocon d2hTata Sky

Dish TvAirtel Digital

Tv

0%

74%

4%22%

Chart Title

Series1 Series2


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What is the perception about the brand

videocon D2H ?

Very Good 0%

Good 50%

Average 30%

Below Average 20%

0000

0

50

30

20

Market Share

Very Good Good Average Below Average


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Which of the following brands gives

you the most sales volume in DTH

service ?

Videocon d2h 20%

Tata Sky 30%

Dish Tv 20%


0

5

10

15

20

25

30

35

Videocon d2h Tata Sky Dish Tv Airtel Digital Tv

Series1

Series2


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Having a good brand value in home

appliances & electronics / and best

aesthetics in satellite TVs , to what

extant Videocon d2h will be accepted

by the customer ?

Very Good 0%

Good 45%

Average 20%

Below Average 35%

0

5

10

15

20

25

30

35

40

45

50


Series2

Series1


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Is recording feature required for

customer ?

Series1

0

10

20

30

40

50

60

70

YesNo

May Be

Series1

Yes 15%

No 70%

May Be 15%


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Feedback of customer about brands?

Videocon D2H

Very Good 0%

Good 50%

Average 30%

Below Average 20%

0

10

20

30

40

50

60


Series2

Series1


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Tata Sky

Very Good 90%

Good 10%

Average 0%

Below Average 0%

Very Good

Good

Average

Below Average


62/70

Dish Tv

Very Good 20%

Good 75%

Average 5%

Below Average 0%

Series1

Series20

10

20

30

40

50

60

70

80

Very GoodGood

AverageBelow

Average

Series1

Series2


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Airtel Digital Tv

Very Good 60%

Good 30%

Average 10%

Below Average 0%

0

10

20

30

40

50

60

70


Series2

Series1


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Objectives of Summer Training

~ To make students aware of market where exactly

They have to work (real work situation).

~ To create awareness in the students about their

Strength & weakness.

~ To take actual feel of the environment in which

Students have to survey

~ To observe actual challenges they have to face in

Future in their stream they are adoting for(specil

Isation).


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RECOMMENDATIONN & SUGGESTIONS

a)Videocon holds good value in home appliances inmarket thus it gives positive result in DTH also.

b)Videocon d2h should improve its after salesservice so that`s it can hold its potential customer

& attract more.c)Proper advertisement require to create more

awareness in market & customer.

d)Proper addressability is required for the product.


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Details about Dealers

~ Name of the Dealer :- ...

~ Address/ Contact no :-...

...

~ Monthly Turnover :-..

Dealing in brands :-

Videocon D2H

Tata Sky

Dish TV

Airtel Digital TV

~ Mode of purchage :- a) Direct ..

b) From distributer ..


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Questionnaire for Dealer

~ Are you dealing with Videocon D2H ?

1) Yes2) No

~Would you be interested in dealing with Videocon D2H ?

1) Yes2)

No3) May be

~Which of the following brands is the first choice of the customer ?

1) Videocon D2H2) Tata Sky3) Dish TV4) Airtel Digital TV

~Which of the following brands do you think has the best margin ?

1) Videocon D2H

2) Tata Sky

3) Dish TV

4) Airtel Digital TV

~Which of the following brands has the best after sales service ?



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~Which of the following brands do you think has the best name in DTH service ?


~What is the perception about the brand videocon D2H ?

1) Very Good2) Good3) Average4) Below Average

~ Which of the following brands gives you the most sales volume in DTH service ?


~Having a good brand value in home appliances & electronics / and best aesthetics in satelliteTV`s, to what extant Videocon d2h will be accepted by the customer ?

1) Yes2) No3) May be

~Is recording feature required for customer ?

1) Yes2) No3) May be

~ Feedback of customer about brand ?

Videocon D2H



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Tata Sky


Dish TV


Airtel Digital TV


Documents

Project Report on Videocon d2h 1