Term End Project on Strategic ManagementOn

Videocon Industry Limited

Group IX

Anooj Shetty [091202034]

Balachandra Prabhu [091202097]

Saurabh Priyadarshi [091202116]

Shatrudra Prakash [091202087]

INTRODUCTION OF COMPANY

Videocon is an industrial Conglomerate with interests all over the world and based in india.

The Group has 17 manufacturing sites in India and plants in China, Poland, Itlay, and

Mexico. It is also the third largest picture tube manufacturer in the world. The Videocon

group has an annual turnover of US$ 4.1 billion, making it one of the largest consumer

electronic and home appliance companies in India.

Videocon was founded in 1987 by Nandlal Madhavlal Dhoot. At that time it used to

manufacture TV and Washing Machine. In 1989-90, Videocon started manufacturing Home

Entertainment Systems, Electric Motors & AC. Videocon entered Refrigerators and coolers

segment in 1991. In 1995, Videocon started manufacturing Glass shells for CRT and in 1996

it ventured into Kitchen appliances and crude oil segment. In 1998, Videocon started

manufacturing Compressors & Compressor Motors. In the year 2000, Videocon tookover

Philips Color TV Plant. In 2005, Videocon tookover 3 plants of Electrolux India and acquired

Thomson CPT. Today, it has evolved into a giant conglomerate with annual revenues of over

U$4.1 billion.

PRODUTS OF VIDEOCON

Consumer Electronics & Home Appliances:

Videocon enjoys leadership position in consumer products like Colour Televisions, Washing

Machines, Air Conditioners, Refrigerators, Microwave ovens and numerous other home

appliances. Videocon's refrigerator manufacturing enjoys synergy with its inhouse

compressor manufacturing technology in Bangalore.

Display industry and its components:

After the acquisition of Thomson in 2005, Videocon has emerged as one of the largest Colour

Picture tube manufacturers in the world. It has plants in Mexico, Italy, Poland and China and

manufactures a range of high-tech products such as slim CPT, extra slim CPT and High

Definition 16:9 format CPT.

Colour Picture Tube Glass:

Videocon is one of the largest CPT Glass manufacturers in the world. It has plants in Poland

and India. Videocon's CPT Glass manufacturing complements its Colour Picture tube

manufacturing business.

Oil and Gas:

Videocon Group has interests in oil & gas exploration, prospecting and intends to get into gas

distribution. It produces 7% of all oil in the private sector in India. Videocon's Ravva oil field

has one of the lowest operating costs in the world and it produces 50,000 barrels of oil per

day. Videocon is also actively looking for exploration and production opportunities in

countries like Oman, Australia and the Timor Sea near Indonesia.

Telecommunication:

Videocon Telecommunication Ltd has licensed for mobile service operations across India. It

launched its service on 7 march 2010 in Mumbai.

Mobile phones:

In November 2009 Videocon launched its new line of Mobile Phones.

PRODUCT CURRENT SCENARIO:

VIDEOCON INDUSTRIES LTD. PRODUCT REPORTProduct Name Yea

rMonth

Sales Quantity

UOM Sales Value

Product Mix

(Crores)

TV Sets, VCR, Audio And Sub-assemblies

2009 12 34137037

Numbers 5,210.16 55.53

Audio & Other Electricals & Electronic Appliances

2009 12 5807763

Numbers 2,389.13 25.46

Oil Crude200

9 12 452115Metric Tonnes 968.88 10.32

Air Conditioners200

9 12 437662Numbers 671.26 7.15

Gas Natural200

9 1214165738

4Cu Metres 93.67 0.99

Service Income200

9 12 0   48.17 0.51

ACHIEVEMENTS OF VIDEOCON INDUSTRIES LTD (“VIL”)

• India’s No.1 Consumer Electronics & Home Appliances Company. It is also the third

largest picture tube manufacturer in the world.

• The largest panel production facility in the world under one roof providing very high

economies of scale

• One of the world's largest and most respected CRT glass manufacturers

• Firing the largest furnace of its kind in the world with a tank size of 3300 sq ft

• One of the few companies in the world to convert sand to TV

• One of the largest and most acknowledged CPT manufacturer in the world

• Manufactured India's first rust-free Washing Machine

KEY GROWTH INDUSTRY DRIVERS

Rising income levels and increasing affordability; fuelling consumerism and growth in

demand for aspirational goods

Change in perception of Consumer goods as ‘basic necessities’ as opposed to ‘luxuries’,

largely driven by increased awareness and advertising.

Rationalizing of prices by key players, due to a conducive tariff policy by the Government.

Increasing demand for technology driven replacement of consumer goods and household

appliances.

The consumption of Television from the company has risen from 17 to 20% whereas washing

machines had risen to 25.1%.

HISTORY OF INDUSTRY

The Electronics Industry in India took off around 1965 with an orientation towards space and

defence technologies. This was rigidly controlled and initiated by the government. This was

followed by developments in consumer electronics mainly with transistor radios, Black &

White TV, Calculators and other audio products. Colour Televisions soon followed. In 1982-

a significant year in the history of television in India - the government allowed thousands of

colour TV sets to be imported into the country to coincide with the broadcast of Asian Games

in New Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were

succeeded by Digital Exchanges in 1988. The period between 1984 and 1990 was the golden

period for electronics during which the industry witnessed continuous and rapid growth.

From 1991 onwards, there was first an economic crises triggered by the Gulf War which was

followed by political and economic uncertainties within the country. Pressure on the

electronics industry remained though growth and developments have continued with

digitalisation in all sectors, and more recently the trend towards convergence of technologies.

. In 1997 the ITA agreement was signed at the WTO where India committed itself to total

elimination of all customs duties on IT hardware by 2005. In the subsequent years, a number

of companies turned sick and had to be closed down. At the same time companies like Moser

Baer, Samtel Colour, Celetronix etc. have made a mark globally.

MARKET OVERVIEW

The global electronics industry is growing rapidly. From an estimated size of US$950 billion

in 2005, it is estimated to grow to nearly US$2,100 billion by 2010. The market is dominated

by Asian countries such as China, Taiwan, Singapore and South Korea. The industry is

characterised by rapid innovation and speed to market, short product life cycle, highly

automated manufacturing to give consistent quality at low cost, high volume production,

continuous improvement in capabilities for reducing costs and profit accrual through

volumes. India's electronics industry is nascent by global standards. Despite a population of

over one billion, India has a relatively small electronics market. It is ranked twenty-sixth

worldwide in terms of sales and twenty-ninth in terms of production. The total size of the

industry in 2004-05 was US$11 billion.

INDIA’S CONSUMER MARKET

India’s consumer market is riding the crest of the country’s economic boom. Driven by a

young population with access to disposable incomes and easy finance options, the consumer

market has been throwing up staggering figures.

India officially classifies its population in five groups, based on annual household income

(based on year 1995-96 indices). These groups are: Lower Income; three subgroups of

Middle Income; and Higher Income. However, the rupee income classifications by

themselves do not present a realistic picture of market potential for a foreign business

enterprise, because of significant differences in purchase power parities of various currencies.

In fact, the Indian rupee has a very high purchase power parity compared to its international

exchange value. For instance, while the exchange rate of one US dollar is 48.50i Rupees, the

domestic purchasing power of a US dollar in the US is closer to the purchasing power of Rs 6

in India, for equivalent needs and services. As a result, India ranks fifth in the world, on

purchase power parity terms, despite being having low per capita national income (US$ 340

per capita).

CONSUMER CLASSES

Even discounting the purchase power parity factor, income classifications do not serve as an

effective indicator of ownership and consumption trends in the economy. Accordingly, the

National Council for Applied Economic Research (NCAER), India’s premier economic

research institution, has released an alternative classification system based on consumption

indicators, which is more relevant for ascertaining consumption patterns of various classes of

goods.

There are five classes of consumer households, ranging from the destitute to the highly

affluent, which differ considerably in their consumption behaviour and ownership patterns

across various categories of goods. These classes exist in urban as well as rural households

both, and consumption trends may differ significantly between similar income households in

urban and rural areas.

CURRENT SCENARIO OF INDUSTRY

The consumer durables market in India is valued at US $ 4.5 billion currently. In2008,

microwave ovens and air conditioners registered a growth of about 25%. Frost free

refrigerators have registered significant growth as many urban families are replacing their old

refrigerators. . Washing machines, which have always seen poor growth, have seen

reasonable growth in 2006. More and more Indians are now buying electrical appliances due

to change in electricity scenario. The penetration level of colour televisions (CTVs) is

expected to increase 3 times by 2008.

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

consumer electronics industry. Today, India is fast emerging as the key driver in the global

television market both as a manufacturer and consumer. In recent years, the market for

televisions in India has changed rapidly from the conventional CRT technology to Flat Panel

Display Televisions (FPTV).

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

to this, one of the most striking changes sweeping across the colour television market in

Indian market is the exponential growth of the flat panel television (FPTV) market, in

common parlance called the liquid crystal display (LCD) and plasma televisions.

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

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

growth also include the increasing awareness of the advantages of LCD televisions, the

growing availability of the product across dealer counters and the Finance schemes in the

market. Besides this, as a manufacturing hub, the television industry is improving more and

more. There are many domestic and MNC companies that have increased their production

bases in the country. Easy availability of low-cost skilled labour and the emergence of SEZs,

which are tax-free zones, are some of the key factors that have resulted in growth of these

manufacturing units. In fact, encouraged by tax-breaks, new manufacturing units are coming

up in less-developed regions now.

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

base in terms of manufacturing facilities for glass and colour picture tubes, so it helps it a

good choice for all those companies who are looking to take benefit of this emerging market.

EVOLUTION OF VIDEOCON

2000: Acquisition of Philips color tv plant

In 2000 Videocon acquired the Philips Colour TV plant.

2005: Acquisition of Thomson and Electrolux

Videocon through its Wholly Owned Offshore Subsidiary acquired the Color Picture Tube

(CPT) businesses from Thomson S.A having manufacturing facilities in Poland, Italy,

Mexico and China along with support research and development facilities.

Videocon group on took over Swedish giant Electrolux AB’s 91.85 per cent equity in its

Indian subsidiary Electrolux Kelvinator. Elctrolus kelvinator has manufacturing facilities at

Shahjanpur, Warora and Butibori for manufacturing of refrigerators, and washing machines

and employs over 1,200 people.

2009: Venture into Telecom

It is the India’s thirteenth mobile operator. Currently offering GSM mobile service and

providing service in Tamil Nadu, Punjab, Haryana, Mumbai, Gujrat, Kerala, Madhya Pradesh

And Videocon has also launched wide range of mobile handsets all over the country.

2010: D2H

DTH is a direct to home a digital satellite service that provides television services direct to

subscribers anywhere in the country. It was launched on 1st may 2009. It came with a very

good strategy for selling both of its electronics products like tv’s dvd’s along with the new set

top box . here only he antenna is enough, it came also with a dvd connected to tv which gives

the best quality of output.

VIDEOCON LONG TERM & SHORT TERM STRATEGY

MULTI BRAND SHOPPING CART

• Over the years Videocon’s tactic was to buy distraught over the world and revive

them by making low and elsewhere.

• Consumers depending on their annual income will switch onto different brands from

time to time.

• VIL’s study reveals that spotlight on one brand will not cater to different segments of

the market.VIL thus serves a range of products through its multi brand shopping cart.

• VIL’s multi-product plan has assisted company to achieve a place at top of the

podium with 30% market share.

• VIL is triumphant in churning loss making brands to productive integrating them

with its existing manufacturing plants.

• VIL is the only domestic company to survive successfully due to its diversified

product portfolio.

THOMSON VIDEOCON DEAL

VIL is only one of its kinds in the world to convert sand to TV.

VIL has led to discovery of world famous technologies like Super Flat CPT, Slim

CPT, Extra Slim CPT & HD 16:9 format CPT.

VIL had bought debt free Thomson’s CPT division. Clientele includes TTE, Sanyo,

Sharp, JVC, Konka, Skyworth, Beko, Vestel, TTE & Horizont.

VIL had access to Thomson’s R&D facilities which facilitated up gradation of

technology.

VIL further strengthen its position by selling new high tech products in domestic as

well as overseas market.

Globally, prices of CPT are on lower side due to intense competition. However, raw

material prices are not decreasing in synergy products.

VIL’s integration of glass shell unit with Thomson CPT enabled it to enjoy cost

benefit in terms of production cost & it will also reduce throughput time.

VIL’s strategic partners Thomson & Electrolux both acquired 15% & 5% stake

respectively in VIL showing signs of faith in top drawer of the company.

VIL-Thomson synergy has devised a bunch of strategies for its cost, production,

sales & industry to register them glass shells manufacturer in the world.

EXPERIENCE CHANGE : A New Brand Identity & Logo

Videocon Group recently underwent a brand identity change. The group which has

been serving the nation for nearly the past 25 years, took move in tunes with the

changing global scenario.

Videocon as a brand has always believed in re-inventing and revamping itself and the

rationale behind Videocon's brand evolution comes from its constant endeavour to

listen and respond to the changing market dynamics in India and overseas.

The focus remains multi-fold while working towards developing the latest

technologies with an emphasis on quality, innovation and value, the firm is

aggressively expanding their service penetration too. The 'V' in the new Videocon

logo is representative of a new identity - an identity that is fresh, dynamic, & has been

provided a life of its own.

Videocon's all-new brand identity is the first step to position its Brand Videocon

closer to every customer's heart - in terms of the philosophy behind products, their

value perception, enhanced ownership pride and class-leading after-sales delight.

EXPERIENCE CHANGE : With Videocon’s Retail Chains In

Various Cities

Videocon Group is on a retail drive, and the company's belief in the 'Customer First'

mantra has been the motivating factor behind this initiative.

It has introduced its retails chains Videocon Plaza, Digiworld and more recently

DigiHome meant for smaller stores.

These outlets have further ensured easy availability & access of the Videocon group

to its customers.

Videocon Plaza is a chain which offers a complete range of the brand Videocon

available across all product categories. Currently, the company has around 25 such

outlets, which are available in all major states and aims to raise the network of these

plazas in the coming months.

On the other hand, Digiworld is a multi-brand outlet, showcasing all the leading

brands from the Group namely Videocon, Sansui, Electrolux, Kenstar and Kelvinator

under one roof. It boosts of wide range of products in various categories under all the

brands at optimal prices. Videocon group has around 100 digiworld's .

Digihome are an extension of the Digiworld chain, featuring the same brands.

However, it's meant for smaller stores and will house perhaps only two to three of

such brands. A new look & logo has been designed and the company is set to open

around 150 Digihome stores nationwide.

This move of the company has further proven its commitment to its customers by

being available for them all around.

SERVICE DRIVE

Service is the most important aspect for any business to thrive and sustain itself

successfully and Videocon is one such company who is adamant on providing the best

of services to its customers.

A drive has begun and Videocon Group has pledged to make its services at par with

international norms and put customer requirements to fore. The Group opened 'Model

Service Centres' in all branches which would set benchmark of customer service in

the consumer durable industry.

The first such centre was inaugurated in Gurgaon and around 20 more towns are

recognized in the major cities of the country, namely Kanpur, Jaipur, Lucknow,

Ludhiana in North, Chennai, Hyderabad, Bangalore Coimbatore, Cochin in South;

Mumbai, Ahmedabad, Pune, Surat and Nagpur in the west; Kolkata, Patna, Asansol,

Guwahati and Jamshedpur in the East region.

EFFICIENT PROCESS

A single toll free number has been introduced and the company has adopted a unique

2-2-2 service approach, wherein the group pledges to attend, sort problems and

replace defective products. The aim is towards providing quick response, immediate

registration of query, attending & trying to sort the problem within 2 days

A fleet of service vans has also been designed to meet the requirements of the

customers pan India. Videocon has currently around 120 such vans, which are

equipped with tools, equipment, inverter and even spare parts to provide uninterrupted

support & supply even in upcountry locations.

Free Service Camps are organised on a regular basis across the country. These

camps facilitate a better understanding by the company on the problems faced by the

consumers and readily offer them a solution.

Other than providing free service, special offers are also given to customers like

exchange of an old model with a newer version at nominal prices, no labour charges,

discounts on genuine parts & accessories and Annual Maintenance contract.

The company has also set up a Training Academy for enhancing the technical &

soft skills of its ASC engineers. A spare part hub has also been opened in the north,

to meet the regional requirements and more such outlets are on the list.

It's a commitment with the Group, to provide its customers with an efficient after-

sales service, thus, ensuring a hassle-free and enjoyable product experience.

EFFECTIVE PROMOTIONAL STRATEGIES

SPECIAL OFFERS

FIFA World Cup Mania Grips Videocon-they lined up to bring a world-class

experience into their living rooms by availing Videocon's 'Striker Offer'.

Double Bonanza, Double Mazaa- 'Paisa Vasool', as the name rightly suggests,

provided a never before opportunity to own a world class Videocon Satellite LCD that

combines the twin benefits of free Videocon d2h services for 2 years (24 months)

worth Rs.9000 plus a money back scheme. Under the scheme, customers got the

chance to enjoy benefits worth Rs 20,000 on the purchase of Videocon Satellite LCD

worth Rs 25,990.

EFFICIENT ADVERTISING

Videocon’s Women Connect- Videocon's revolutionary new range of washing

machine which have been designed entirely keeping in mind the convenience factor of

a end customer, has already started creating ripples in the industry. The company with

its customer centric approach has hired special Female promoters, which are

dedicated only to promote the sale of washing machines.

IN SYNC WITH THE LATEST TECNOLOGY

Videocon continuously launched new product in each product line to gain, maintain and

retain its customers. This year Videocon launched tilt drum washing machine, it is Indias

first model with tilt drum. Windows enabled mobile phone by which Videocon enterd the

smart phones market. VIL even launched 3D television sets.

CRITICAL ASSESSMENT OF PAST STRATEGY

The Videocon group is a major player in India's consumer electronics sector. The Videocon

group's turnover was Rs.7.23 billion in 1993. In addition to CTVs, B & W TVs and audio

systems, VIL markets washing machines, refrigerators, coolers, air-conditioners (made by

Videocon Appliances) and video systems (made by Videocon VCR) on a no-profit no-loss

basis used as a penetration and market share expansion strategy. The business Management

ethos of "generating surplus' was set aside by Videocon just to "generating surplus' was set

aside by Videocon just to the market

Company Activities Collaborators

Videocon International

Limited (VIL)T.V."s Toshiba Corp, Japan

VIL Audios Sansui

Videocon VCR Video system Toshiba Corp, Japan

Videocon AppliancesWashing MachinesRefrigetorsCoolers

Air-conditioners

Matsushita

Electric Ind Co., Japan

Videocon Leasing Finance activities None

Video Narmada None OLI-NEG TV

Product,US

The company believes that the only strategy for satisfaction and leadership through quality

and innovation, technology and performance. In just a mere twelve years, technology and

performance. In just a mere twelve years, position in most of their product ranges. The

Videocon group is also the second largest marketer of audio products with is also the second

largest marketer of audio products with in Consumer Electronics and Home Appliances, with

19 state- of-the art manufacturing facilities all over India, manned by skilled and dedicated

employees.

In 1997,Videocon's quality achievements have enabled it to look beyond India, earning the

highly prestigious CE mark for exporting its Colour Television to Europe - the first exporting

its Colour Television to Europe - the first emerging as an international player. Apart from

making products for Toshiba and Sansui for their global markets. Videocon has become a

house hold name as most upper middle and middle class people identify its products, thanks

to its huge spending in advertising and its strategies to penetrate into semi-urban and rural

areas in a big way penetrate into semi-urban and rural areas in a big way penetrate into semi-

urban and rural areas in a big way considerable period (almost five years) bears testimony to

the success of its strategies to attract the customers.

In 1995, Videocon launched an ad campaign to further its standing in the Indian

electronics industry by promoting its wide range of consumer electronics such as televisions,

VCRs, washing machines, refrigerators, air-conditioners and audio systems. While the

headline proudly declared that Videocon is ‘Exploring the most advanced technologies to

give you the world’s finest Consumer Electronics and Home Appliances’, the slogan at the

bottom of the advertisement invited readers to ‘Bring Home the Leader’. The sub-heading

below the headline, also highlighted in a bold typeface, proudly announces, ‘Videocon. A

household name.’ Two other sub-headings, listed above the slogan ‘Bring Home the

Leader’ declare that Videocon is ‘Bringing the world to India’ and ‘Improving the

quality of Life’ .

When read in relation to text under each of the three sub-headings in the advertisement,

Videocon’s slogan ‘Bring Home the Leader’ appears to be an ambivalent dual invitation to

the reader. In one sense, the slogan invites the reader at home to buy Videocon’s range of

products since the company is, as the ad copy declares, ‘the leader in Consumer

Electronics and Home Appliances with 19-state-of-the art manufacturing facilities all

over India’. In another sense, the slogan appears to invite the reader to embrace a new

nationalist strategy of bringing into India ‘a wide range of quality products’ made by

Videocon in collaboration with world leaders in the electronics industry.

The ad copy informs the reader that Videocon’s colour televisions, VCRs and VCPs are

manufactured ‘through a technical tie-up with Toshiba, Japan’. The rest of the advertisement

describes Videocon’s technical tie-ups with Matsushita, Japan for its washing machines,

refrigerators and air conditioners, and with Sansui, Japan for its audio systems. The final

section of the advertisement waxes eloquently on Videocon’s corporate philosophy about

‘Improving the quality of life’ by ‘bringing home the benefits of modern technological

innovations to more and more people’.In the centre of the ad is the image of a television set

with a caption underneath identifying the model as ‘The 32 Double Window Dramatic Wide

Colour TV’. The obvious reference here being made to Videocon’s innovate split-screen

technology that enables viewers at home to see two programmes at once on their television

sets. The screen on the television set is equally divided into two windows. In the window

to the left of the reader is the image of a game of cricket, to its right is an image of the

Taj Mahal. The two images on the television screen in the Videocon advertisement also

capture the ambivalent fears and fantasies of imagining the nation as a community in the

world of electronic capitalism.

On the one side, the split-screen effect of the advertisement can be read as the nationalistic

ambivalence toward schizophrenic fragmentation of the social reality by technological

innovations that consumer electronics and home appliances bring into households across

India. On the other side, it also reveals the ambiguous potential of tie-ups between

postcolonial nationalism and electronic capitalism that Videocon represents through its

promise of ‘Bringing the world to India’. For instance, the image on the left of the Videocon-

Toshiba television screen – the game of cricket –depicts the ambivalent pleasures of

assimilating the postcolonial into the world of the erstwhile-colonisers by playing on the

patriotic desire to witness a nationalist triumph in the once imperial pastime. The image on

the right of the screen, the Taj Mahal, represents, with all its Orientalist ambiguity, an

essentialised identity that is exclusively ‘Indian’. Never mind the technological reification,

the ad hails the readers, thanks to the Videocon-Toshiba ‘Double Window Dramatic Wide

Colour TV’, now Indians can at once partake in the world of electronic capitalism and retain

their national identity while being ensconced in the comfort of their own homes. Videocon

celebrated its ‘tie-ups with world leaders’ in the electronics industry as a corporate

philosophy for ‘improving the quality of life’ in India

CURRENT STATE OF AFFAIRS AND STRATEGIES

Videocon has recently gone through a complete brand through a complete brand

the change in its logo from sturdy steel the change in its logo from sturdy steel This

new brand element was recently unveiled by Bollywood superstar Shahrukh

Khan in LA. To communicate makeover, Videocon has launched new marketing

campaigns with two green marketing campaigns with two green colored animated

characters colored animated characters which join to form the new V logo. The

choice of green color is deliberated to get into the peppy bandwagon of 'going

green' initiatives recently adopted by many other organizations. Though this has

been substantiated by their upcoming 5MW solar PV project in Jodhpur.

According to the company's official website “The Videocon logo is the heart of

the new brand identity .The Fluid lava reflects the brand idea, 'Experience change'.

The color palette has been chosen to reflect the philosophy of Videocon Group i.e.

the color green is symbolic to the company's ecology drive.” It has also

company’s ecology drive.” It has also Multinational' to 'Experience Change'.

With the current portfolio of consumer electronics (TVs, DVD players and audio

systems) and ho me appliances refrigerators, washing machines and Acs) and

Videocon is also going to foray into new unchartered territories of mobile new

unchartered territories of mobile services.

From a marketer's perspective, it is important to understand whether these

Revitalization change amount to brand revitalization strategy or is it merely

brand strategy or is it merely brand suggests, is to maintain consistency of

suggests, is to maintain consistency.

But it may involve many tactical changes necessary to maintain the strategic thrust

and direction of the brand. In the case of Videocon's brand it is indeed a

revitalization strategy and can indeed a revitalization strategy and can be understood

from Brand Revitalization Model as explained below. The strategic direction

adopted by Videocon with this brand makeover has been highlighted in green

SWOT ANALYSIS OF VIDEOCON COMPANY

STRENGTHS:

India’s no1 brand of consumer electronics and home appliances

Customer base = 50 million

Large brand basket

Multi brand strategy

Global network- 17 manufacturing sites in India and plants in China, Poland, Italy and Mexico

3rd largest picture tube manufacturer in the world

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.

WEAKNESS

Wide brand basket which might lead to conflict of interst unless effectively managed

Entirely involved in conventional, 20th century products, virtually failing to establish a significant web presence in online sales and marketing

CRT technology is losing popularity

OPPORTUNITIES

Avenues for expansions in the untapped market for LCD/Plasma screen display in

India

Acquisitons/tie-ups with other MNC in the consumer electronics segment looking to

enter the Indian market

Consolidate position as 3rd largest manufacture of picture tubes in an industry where

small manufacturers aare phsing out operations due to technological shifts to LCD

Strengthen and expand retail network like ‘NEXT’ chain of stores

THREATS

Decreasing market demand for CRTs’ because of technological shift to LCD screens

Stiff competition due to influx of MNCs

Competition from cheply produced Chinese goods

Fall in the market demand due to economic recession

FUTURE PLANS

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

out its course for the future. Aggressive development is in full swing at the R & D Centres to

bring out state-of-the-art technologies including True Flat, Slim, Extra Slim, Plasma & LCDs,

at the earliest.

Cost rationalization processes - are in various stages - including rationalizing factories in

Europe, increasing automation and improvement of efficiency in China, accessing flass shells

from India for international CPT facilities and a lot more - are in various stages of

implementation.

Internationally all existing client relationships are being strengthened. The cost

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

opportunities in the OEM business.

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

way for an unassailable lead in the market.

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

the group is looking to add more explorations and production depth as also oil bearing assets.

The group will also get into gas distribution in India significantly.

REFERENCES

‘vison’ videocon’s quarterly magazines 2008-09

vison’ videocon’s quarterly magazines 2009-10

Videcon Industries Limited annual Report 2008-09

http:/www.wikipedia.org/wiki/Videocon

CMIE Report