VEDIOCON

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INTRODUCTION TO THE COMPANY

Videocon is the very popular and very reliable company in consumer durable sector.

It was established in 1987 by late Mr. Nandlal madhavlal dhoot. In those time it

entered in the market with color and B/W Televisions and Washing Machines. The

year 1989-1990 saw the advent of Home Entertainment Systems, Electric Motors and

AC. Refrigerators and Coolers by Videocon came in the year 1991. In 1995 Videocon

entered into the manufacturing of Glass Shells for CRT and in 1996 came with

Kitchen Appliances and Crude Oil. In 1998 Videocon ventured into Compressors and

Compressor Motors. It took over Philips Color TV plant in 2000 and 3 plants of

Electrolux India in 2005. In the same year Videocon acquired Thompson CPT. We

can get compete information by going through company's profile.

COMPANY HISTORY

MISSION

To delight & deliver innovative product through ingenious strategy intrepid

entrepreneurship, improved technology, insightful marketing and inspired thinking

about the future

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VISION

To bring happiness in every home with global presence offering high quality e-

products to ease & enrich humanlife.

GOAL / OBJECTIVE

To provide a much higher level of service to all those who seek information

ORGANIZATION STRUCTURE CHART

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BOARD OF DIRECTORS

Mr. Venugopal N Dhoot

Mr. Pradeepkumar N Dhoot Mr. K C Srivastava Mr. Kuldeep Kumar Drabu Mr. Satyapal Talwar Mr. S Padmanabhan Maj. Gen. S C N Jatar Mr. Arun L Bongirwar Mr. Didier Trutt (Nominee - Thomson S.A) Mr. Johan G Fant (Nominee - AB Electrolux (Publ) ) Mr. B Ravindranath (Nominee - IDBI Limited) Mr. Ajay Saraf (Nominee - ICICI Bank Limited)

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MARKETING

PRODUCTS

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MARKET SHARE

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COMPETITION

NameLast

Price

Market

Cap.

(Rs. cr.)

Sales

Turnover

Net

ProfitTotal Assets

Videocon

Indust 168.00 5,355.36 12,919.47 545.56 21,207.65

PG Electroplast 175.00 287.25 221.79 -8.60 113.85

Mirc Electronic 12.60 178.61 1,650.74 -38.94 421.95

Jindal Photo 131.75 135.15 403.35 15.86 235.27

BPL 15.40 75.01 78.58 60.69 434.38

MVL Industries 8.90 23.43 475.25 16.97 281.06

Salora Inter 17.55 15.46 412.10 -7.91 169.08

BRAND AMBASSADORS

Riteish Deshmukh has now taken a leap into the world of brand endorsements. The

actor will now be seen as the brand ambassador of Videocon Mobiles.

Abhishek Bachchan: Videocon d2h, the direct-to-home (DTH) service provider armof Videocon Group, has brought actor Abhishek Bachchan on-board as its brand
http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/videoconindustries/VLFhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/videoconindustries/VLFhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/videoconindustries/VLFhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/pgelectroplast/PE06http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/pgelectroplast/PE06http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/mircelectronics/MEhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/mircelectronics/MEhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/jindalphoto/JP11http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/bpl/BPLhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/mvlindustries/MVL02http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/mvlindustries/MVL02http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/salorainternational/SI24http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/salorainternational/SI24http://www.quizzing.in/wp-content/uploads/2010/11/riteish1.jpghttp://www.quizzing.in/wp-content/uploads/2010/11/riteish1.jpghttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/salorainternational/SI24http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/mvlindustries/MVL02http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/bpl/BPLhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/jindalphoto/JP11http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/mircelectronics/MEhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/pgelectroplast/PE06http://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/videoconindustries/VLFhttp://www.moneycontrol.com/india/stockpricequote/consumergoodselectronic/videoconindustries/VLF

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ambassador. In an event in Mumbai, the company also unveiled its satellite product

range, consisting of satellite LCDs, satellite colour televisions, satellite DVDS and

satellite box offering DTH services.

SHAH RUKH KHAN

LOGO

Well, the two green creatures are Chouw and Mouw. And they are part of the

revamp of the logo of Videocon, one of Indias foremost electronics brands.

The trademark V of the logo has undergone a green change. Those of you who

watch TV would have already seen the commercial that of two green characters

intermingling to ultimately form the V of Videocon. But though the animated clip

looks kinda cute, creating it was not so simple, if the brain behind the clip, adman

Prasoon Joshi, is to be believed.

What we ha ve done is divide the logo into two units, and make characters out of

them called Chouw and Mouw. Chouw is the kind-hearted one and Mouw the

more mischievous one. And together, they send out the message that if you put your

heart and mind together, anything can be achieved,

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STP ANALYSIS

Segmenting

VEDIOCON has segmented its market on the basis of following:

1. Demographic- Income- Occupation

2. Geographic- Tier 1 cities- Tier 2 cities

3. Psychographic- Life style- Personality

4. Behavioral- Value- Benefit sought

Targeting

VEDIOCON has targeted its market on the basis of the product that they are offering

to the consumer.

They are targeting:

- Upper class sement- Upper end

They are targeting to those consumer who are more concern of life style product.

Their product is more of upper mid class and premium segment, so their target

audience are those consumers, who want quality product as the best.

Positioning

1. VEDIOCON positioning is to differentiate their products on the basis oftechnology which appealed to the consumer on the basis of health benefits.

2. Its philosophy is to make peoples lives better, convenient and healthier.3. Their positioning strategy are technologically intelligent and futuristic.4. As they are in upper and premium segment, so they are featuring that their

brand is young, vibrant and premium.

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SWOT ANALYSIS

Strengths Weaknesses Opportunities Threats

High brand

awareness.

Poor customer

service.

Videoconexploring whole

new segments

Entrance of global

competitors.

Largest distributed

manufacturing

bases across India.

Weak

promotional

strategy of CTV.

Entry to global

markets.

Increasing

competition in

home market.

Price Player.

Less focus on

unconventional

channels

Growing semi

urban market.

Brand reputation is

decreasing.

Global Presence.

Fewer incentives

to

dealers/retailers

Shifting brand

loyalty to other

companies

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FINANCE

BUDGETS

PRODUCTION BUDGET FOR 2008-09(Rs.IN CRORE)

Particulars amount

Sales 3457.00

+ closing stock 221.03

3678.03

- Opening stock 217.25

Production for the year 2007-08 3460.78

INTERPRETATION:

From the above analysis it is clear that the production in the year 2009 is Rs.. 3460.78

crore. It is derived by adding the closing stock to sales from that deducting the

opening stock of raw material. By comparing the production of the current year with

the previous year it is known that the production was increased from Rs.2500.36 to

Rs.3460.78.

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PRODUCTION BUDGET FOR 2009-10 (RS. IN CRORES)

Particulars amount

Sales 4316.13


4540.26



INTERPRETATION:

From the above analysis it is clear that the production at in the year 2010 is Rs..

4319.23 crores. It is derived by adding the closing stock to sales from that deducting

the opening stock of raw material. By comparing the production of the current year

with the previous year it is known that the production was increased from Rs.3460.78

to Rs.4319.23.

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PRODUCTION BUDGET FOR 2010-11 (RS. IN CRORES)

Particulars amount

Sales 5051.51


5419.77



INTERPRETATION:

From the above analysis it is clear that the production at in the year 2011 is Rs..5195.59 crores. It is derived by adding the closing stock to sales from that deducting

the opening stock of raw material. By comparing the production of the current year

with the previous year it is known that the production was increased from Rs.4319.23

to Rs.5195.59.

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CASH BUDGET FOR THE YEAR ENDED 2008-09 (RS. IN CRORES)

particulars Amount

Opening balance of cash 27.24

(+)cash receipts

1. Cash sales 3457.00

2. Receipts from debtors 2.71

3. Other income 43

3529.95

( )cash payments

1. Cash purchases 2321.3

2.Payment to creditors 547.8

3.Wages paid 452.15

4. Other expenses 165.76

Closing balance of cash 40.54

INTERPRETATION

From the above analysis of cash budget it is known that cash receipts are Rs..3527.55

crores and cash payments are Rs..3487.01crores. It means that cash receipts are more

than the cash payments.

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CASH BUDGET FOR THE YEAR ENDED 2010-11 (RS. IN CRORES)

particulars Amount

Opening balance of cash 56.86

(+)cash receipts

1. Cash sales 5051.51

2. Receipts from debtors 3.852

3. Other income 125.066

5237.288

( )cash payments

1. Cash purchases 3762.96

2.Payment to creditors 462.172

3.Wages paid 826.34

4. Other expenses 105.366

Closing balance of cash 80.45

INTERPRETATION

From the above analysis of cash budget it is known that cash receipts are

Rs..5237.288 crores and cash payments are Rs..5156.838 crores. It means that cash

receipts are more than the cash payments.

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MATERIAL BUDGET FOR THE YEAR 2008-2009 (Rs.. IN CRORES)

PARTICULARS AMOUNT

Estimated consumption

() Opening stock

(+) Closing stock

ESTIMATED PURCHASES FOR

THE YEAR 2007-2008

429.50

217.25

212.25

221.03

433.28

INTERPRETATION

From the above table it is clear that the estimated purchases for the year 2009

is Rs.. 433.28 crores. It is obtained by deducting the opening stock from and adding

the closing stock to the estimated consumption.

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MATERIAL BUDGET FOR THE YEAR 2009-2010 (Rs. IN CRORES)

PARTICULARS

AMOUNT

(in Crores)


() Opening stock

(+) sssClosing stock

ESTIMATED PURCHASES FOR THE YEAR

2008-2009

479.56

221.03

258.53

224.13

482.66

INTERPRETATION


is Rs.. 482.66 crores. It is obtained by deducting the opening stock from and adding


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MATERIAL BUDGET FOR THE YEAR 2010-2011 (Rs. IN CRORES)

PARTICULARS AMOUNT


() Opening stock

(+) Closing stock

ESTIMATED PURCHASES FOR

THE YEAR 2009-2010

699.4

224.13

475.27

358.26

843.53

INTERPRETATION


is Rs. 843.53 crores. It is obtained by deducting the opening stock from and adding


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HUMAN RESOURCE MANAGEMENT

TOTAL NUMBER OF EMPLOYEES 93,000

DIVISION OF EMPLOYEES

STORE DEPARTMENT:

MARKETING DEPARTMENT

MANAGER

ACCOUNTS

ASSISTANT

CLERK

ASSISTANT

MARKETING

HEAD

BUSINESS

EXECUTIVE

MANAGEMENT

TRAINEE

TEAM LEADER

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PRODUCTION DEPARTMENT

COMPENSATION PACKAGE

Vediocon gives 200% and 700% of basic salaries to employees

Nothing talks like money, and the employees of consumer durables major Vediocon

know what that means. The company gives out six bonuses in a year, which work out

to between 200% and 700% of basic salary, to all its 4,500-plus employees in India. It

strongly believes that this is the best way to reward its employees and drive

performance in a cut-throat industry.

"The idea is to create a high performance-driven culture. Variable and multiple

payouts are significant features to drive motivation of employees and sustain the

organisation's pace,". In today's competitive environment, when companies load their

employees with non-monetary incentives such as motivational programmes, training

and development opportunities, LG still believes in doing it the traditional way

with money. The bonuses include two half-yearly performance incentives, a Diwali

bonus, a post-Diwali bonus, a Vediocon birthday bonus and a retention bonus. The

company paid bonuses even during the slowdownit was growing at 20% in 2008.Its peers chose not to pay bonuses during the period.

PRODUCTION

DISPATCH

FACTORY

WAREHOUSE

DISPATCH

DIRECT

CUSTOMER

RETAIL

WAREHOUSE

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Bonus systems are typically performance-based evaluation systems that drive

employees to achieve their targets and take on new challenges to meet organisational

goals and targets. "Our bonus system gives a sense of ownership and pride in working

with LG India,".

At Vediocon, the half-yearly bonuses are paid in January and July every year. The

Diwali bonus is paid in the festive season, while the post-Diwali bonus follows

towards the year-end. The company celebrates its birthday in May every year, which

makes it another month to look forward to. A special retention bonus is paid to

employees who have completed two years of service in LG. While some bonuses are

based on the company's overall performance, others are based on individual

performance. The retention bonus is a maximum of 400% of an employee's basic

monthly salary and is paid in three instalments in every consecutive year.

Here's how it adds up. New recruits at Vediocon are offered a salary package, which

is a fixed salary plus an average bonus or minimum bonus they are likely to earn. For

instance, a deputy manager at Vediocon, who earns about Rs 10 lakh (fixed plus

average bonus or variable) may take more than Rs 10 lakh home by achieving more

than the expected targets. There is no cap on the extent of variable income that one

may earn by virtue of being a star performer. So, an employee with a package of Rs

10 lakh may take home even Rs 12-15 lakh. Vediocon claims that up to 70% of its

workforce take home more than their fixed salary plus an average bonus amount

every year.

The incentive system helped the company in excelling in India as it motivated

employees on a constant basis, says Verma. "Because the company's overall

performance decides an employee's bonus, it created the whole focus around

company's business in the eyes of every employee," he says. So, even if an employee

was from the HR or accounts department, he would focus on how he could contribute

to the main business and help it take forward, he adds.

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RECRUITMENT AND SELECTION PROCESS

I. Written Test II. Technical Interview III. HR Interview

Let us discuss the stages in detail :

I. Written Test (Online Test)

Nowadays, the company has started to conduct online test instead of manual written

tests unlike past years. However the pattern is almost similar with three sub sections:

a) General Aptitude b) Technical Section and c) Verbal Section

a) General Aptitude

b) Technical Section

c) Verbal Section

II. Technical Interview

Technical interview could carry questions from your stream of study. Also you can

expect questions from C, OOPS, Operating System concepts and Computer Networks.

For example you could be asked to name seven network layers and could be asked to

brief their functions.

III. HR Interview

WELFARE MEASURES

To develop women employees, the company has set up a women development forum

at every asset/basin of the company to look after the welfare, improvement in work in

conditions, training and development, and redressal of grievances of women

employees.

Welfare measures

Leave fare assistance Education facilities Medical facilities Social security Compensation for accident while on duty Gratuity Contributory provident fund

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Post retirement benefit scheme Housing Advances

Rest & recreation Cleanliness Latrines, urinals, wash basins Ventilation and lighting Canteen Drinking water rest rooms Removal of wastes and environment protection kits & liveries Tree plantation Women development forum Vocational education centre for women library Sports

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CONCLUSIONS

From above Literature review and findings we can say that Videocon needs to

redesign its marketing strategies and improve its after sales services in order to make

a success in India. However if Videocon improves the services, then there are quite

good chances of a grand success as Indian air conditioner market is growing very fast.

So Videocon has two options:

1. Improve the marketing strategies i.e. advertising, promotions etc. This couldcertainly help Videocon to penetrate the tough Indian market and to keep the

market share entact.

2. Improve after sales service of the Air conditioner.3. Hence Videocon need to work upon the real factor through Dealer and Retailer

for a KAIZEN continuous productivity in these products will make these

products more friendly and customized.

4. Hence Videocon will be able to win a major market share5. between the competitors

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SUGGESTIONS

1. Improve the marketing strategies i.e. advertising, promotion etc. This willsurely help Videocon to penetrate the tough Indian market and to keep the

market share intact.

2. Attractive schemes must be launched by company in order to attract lowermiddle class.

3. Increase the number of Engineers in after sales Service department.4. More promotional campaigns must be started.5. Number of call centre should be increased.6. The marketing managers should make better relations with dealers and

reputation of the company.

7. Customer considers quality as their first preference, so the company shouldgive more stress on this.

8. The switching of customer from VIDEOCON product to other brand is due tothe bed after sell service in shop.

9. The product is well aware and it is on top of mind of customer. So companyshould always improve services and update their technology.

10.Exhibitions do not help to generate so much sells but they should beconducted regularly. This helps in generating awareness regarding the product

in customers, which ultimately helps in sales. Also it is helps in advertising for

the new products. Like in this exhibition new LCD was advertised. Company

should always focus on service. Display share should be increased where there

is less than 50% as

11.Company should try to improve service. No doubt the company products havetechnically edge over competitors but in long run it may hamper the

companys profit.

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12.Company should concentrate more on its major drivers LCD, IT, and GSM.Branding and promotions should be done effectively as it creates a long lasting

image in the mind of customers.

13.Company should also cater to the needs of sub dealers as some of the subdealers have potential of high sales.

14.The company should maintain the sufficient funds for the future allocation ofbudget.

15.The company should set the initial standard to compare the budgetingperformance of the various departments.

16.During the period of the study, purchases were estimated. It helps inestimating the planning stock levels and production requirements.

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BIBLIOGRAPHY

1. www.videoconworld.com2. www.google.co.in3. www.videocon.co.in4. C.R. Kothari, Research Methodology5. Philip Kotler, Marketing Management
http://www.videoconworld.com/http://www.google.co.in/http://www.videocon.co.in/http://www.videocon.co.in/http://www.google.co.in/http://www.videoconworld.com/

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VEDIOCON